New Year, new Thresholds, new Provider Selection Regime

As 2023 draws to a close, we can reflect on a major year of developments in procurement law, as well as looking forward to a “huge year” in our field next year, with the new Provider Selection Regime for NHS health services set to come into force on 1 January 2024, and the Procurement Act 2023 set to follow in autumn 2024. 

Provider Selection Regime in force from 1 January 2024

The Health Care Services (Provider Selection Regime) Regulations 2023 have now been made and will come into force on 1 January 2024.  The Provider Selection Regime (PSR) applies to contracts for NHS healthcare services whose CPV code is specified in the regulations; the Public Contracts Regulations 2015 will be amended so that they no longer apply to services to which the PSR applies.

The PSR potentially allows contracts for NHS healthcare services to be awarded without a full competitive process, whether that be under one of three direct award routes (if available), or under the most suitable provider route.  To learn more about the Provider Selection Regime see our webinar here.

New Procurement Thresholds from 1 January 2024

From 1 January 2024, the procurement thresholds under the Public Contracts Regulations 2015, the Concessions Contracts Regulations 2016, and the Utilities Contracts Regulations 2016, will be revised. Click here to download our handy one pager with all the new thresholds set out for reference.  

The recent PPN 11/23 on the new thresholds reminds us that while contract values are taken inclusive of VAT for the purposes of assessing whether the thresholds are met, the contract values inputted into Contract Notices and Contract Award Notices should continue to be stated exclusive of VAT.

However, the PPN also trails a new point; when the Procurement Act 2023 is implemented in Autumn 2024, this approach will change, and statements of contract value in transparency notices will then need to be made inclusive of VAT.

Also in the new year …

Do join Shailee Howard, Victoria Armitage, and me at 10am on 11 January 2024 for the next in our 5 in 25 Countdown series – when we will be looking at the impact of the Procurement Act 2023 on the selection stage of a procurement. You can sign up here. Even if you can’t attend, it is worth registering as everyone gets a copy of the recording, the slides and the Q and A.

With very best wishes for the festive break from us all in the M&R procurement team!


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