Mitigating the Risks of the UK Procurement Act

Mitigating the Risks of the UK Procurement Act

Enforcement of the Procurement Act 2023 (PA23), which began February 24, 2025, ushers in a significantly overhauled post-Brexit regime for public procurement in the UK. According to an article by A&O Shearman, risk and compliance teams, particularly at companies reliant on UK government contracts, must now manage a broader, more complex framework of exclusion and debarment provisions. These include expanded grounds for disqualification, wider application to group companies and third parties, and introducing a public debarment list with serious reputational implications.

Among the most consequential changes, PA23 applies mandatory and discretionary exclusion grounds not only to suppliers directly involved in a contract, but also to certain connected entities such as parent companies or affiliates. Notably, convictions for a broader array of financial crimes in the UK and overseas can now trigger mandatory exclusion. 

Even without a conviction, enforcement actions, Deferred Prosecution Agreements (DPAs), and breaches of professional or ethical standards may lead to discretionary exclusion. This means that companies implicated in external investigations may find their eligibility to bid on UK public contracts compromised, whether or not they ultimately face charges.

Adding to the stakes is a new public debarment list, which mandates up to five years of exclusion for named suppliers. The reputational and financial fallout from inclusion on this list could be severe. Contracting authorities must report exclusion decisions, and the UK Government can independently initiate investigations, including compelling supplier cooperation. Failure to participate may itself be grounds for debarment.

Prompt, strategic action is essential when facing any regulatory or enforcement scrutiny. Companies must enhance internal controls, monitor group-wide risk exposure, and prepare for rapid, well-supported representations if exclusion is threatened. The costs of inaction regarding the UK Procurement Act could be long-lasting and publicly visible.