How new Procurement Rules are shaping the future of UK public contracts and what it means for UK rail

The winds of change are blowing through the world of UK public sector procurement, and SMEs will need to be in the know if they want to secure more work. As of February 24th, 2025, a significant piece of legislation – the Procurement Act 2023 – has officially gone live, promising to overhaul how the government buys everything from paperclips to major infrastructure projects.

For too long, the procurement landscape could feel like a complex and sometimes opaque system. But the new Act is designed to steer us towards a brighter future, one where every pound of taxpayer money works harder for our communities and public services. It’s about forging a simpler, more flexible, and transparent commercial system that truly meets the needs of our nation, all while staying firmly on track with our international commitments.

So, what’s the big deal? In a nutshell, the Procurement Act 2023 is all about:

  • Simplifying the process: Cutting through red tape to create a more streamlined and user-friendly system.
  • Opening doors to new players: Actively encouraging small businesses and social enterprises to step up and compete for public contracts. This is fantastic news for fostering innovation and local economies!
  • Boosting transparency: Shining a light on the entire commercial lifecycle, ensuring that how public money is spent is clear for everyone to see and scrutinise.
  • Delivering better value for money: Ultimately, ensuring that the public sector gets the best possible outcomes for the investment made.

Network Rail: Leading the Charge on the Tracks of Change

Network Rail has implemented these changes significantly. From February 24th, 2025, all new commercial and procurement activities will be fully aligned with the Procurement Act 2023. It’s important to note that existing contracts and procurement processes that started before this date will continue as planned.

So, what will suppliers notice as we navigate this new terrain? Here’s a glimpse of the changes you can expect to see from Network Rail:

Clearer Signals: Notices and Opportunities

  • Enhanced Visibility: It is making commercial pipelines much clearer. You’ll be able to find information on upcoming opportunities not only on Network Rail’s website but also through the government’s central Find a Tender Service (FTS). This means you’ll have a broader overview of what’s coming down the line.
  • Early Engagement is Key: Keep an eye out for new preliminary market engagement notices. These will give you advance warning of upcoming engagement activities and provide insights into any market engagement we’ve already conducted. This is your chance to get involved early and shape potential opportunities.

Streamlined Journeys: Competitive Tendering Processes

  • Fewer Stops, Faster Routes: Network Rail has promised to simplify its competitive tendering procedures, focusing on three key approaches: direct award, open framework, and the exciting new competitive flexible procedure.
  • Flexible Frameworks: Commercial frameworks will become more adaptable, with the potential for open frameworks that can welcome new suppliers even after they’ve been established. This creates ongoing opportunities for businesses to get involved.
  • Tailored Solutions: The competitive flexible procedure is set to be a game-changer. It allows Network Rail to design its procurement process to perfectly suit the specific needs of what it is buying and the dynamics of the relevant marketplace. This means more bespoke and effective procurement strategies.

Your Ticket to Ride: Supplier Registration

  • One-Stop Shop: Get ready for a central digital platform where you can register your company details. This will be your go-to hub for managing your information for multiple bids and seeing all available opportunities in one convenient location.
  • Essential Registration: To partner with Network Rail under the new Act, registration on this new system will be a prerequisite before submitting tenders. So, make sure you get yourself signed up to avoid missing out.

Dynamic Markets: A World of Possibilities

  • Mapping the Landscape: We’ll be providing a clear register of available frameworks and dynamic markets. This will help you identify potential opportunities and research the best routes for bidding in the future.
  • Join Anytime: The beauty of the Dynamic Market is that suppliers can apply to join at any point. This creates a constantly evolving pool of potential partners, and we can use this register to run quick and efficient competitions.

Important Note for Rail Suppliers:

RISQS (Rail Industry Supplier Qualification Scheme) will be evolving into a Dynamic Market under the new Act. If you’re already part of the rail supply industry, please reach out to RISQS or RSSB for more detailed information on what this means for you.

Network Rail has also produced a SME Supplier Guide to help SMEs bid for work.

The Procurement Act 2023 represents a significant step forward in how the UK public sector operates. By simplifying processes, fostering competition, and increasing transparency, it has the potential to deliver real benefits for communities and businesses alike.

Useful Videos

We’ve included some useful videos below for you to understand the changes from both the Government and Network Rail.

Links to further information

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