UK public sector procurement spending reached £434 billion in 2024/25, a rise of £19 billion on the previous year, with HM Treasury budgets indicating a further 13% rise in 2025/26. This is not a niche market. It is the single largest source of commercial opportunity in the United Kingdom.

Yet many suppliers treat public sector work as transactional -- winning a contract here, bidding for a tender there, without a coherent strategy for building sustainable revenue. The organisations that thrive in the public sector are those that approach it with a long-term plan: understanding the regulatory landscape, building frameworks portfolios, investing in social value, and positioning themselves as trusted delivery partners.

The Procurement Act 2023, which came into force on 24 February 2025, represents the most significant reform in UK public procurement in a generation. It has changed the rules of engagement for every supplier. Whether you are new to the public sector or looking to scale an existing portfolio, your strategy must now account for these reforms

This guide sets out the key pillars of a long-term public sector strategy, grounded in the current regulatory framework and supported by practical guidance on how to build, sustain, and grow your public sector business.

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Understanding the New Procurement Landscape

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The Procurement Act 2023: What Has Changed

The Procurement Act 2023 introduced a new procurement system designed and developed in the UK, impacting public sector procurement in England, Wales, and Northern Ireland. For suppliers building a long-term strategy, three changes are particularly significant.

Most Advantageous Tender (MAT): The basis of awarding contracts has shifted from "most economically advantageous tender" (MEAT) to "most advantageous tender" (MAT). This grants contracting authorities more discretion in awarding contracts to those who best meet all assessment criteria -- not just price. Suppliers who can demonstrate broader value will benefit.

Transparency requirements: The Act introduces comprehensive transparency requirements, including publication of pipeline notices, tender notices, contract award notices, and contract performance information on the Central Digital Platform. This means more information is available to help you plan your bidding strategy.

Supplier registration: A new supplier registration system allows you to provide your information once and have it available for multiple procurements, reducing the administrative burden of repeated qualification processes.

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The National Procurement Policy Statement

The NPPS, published in February 2025, sets out the government's strategic priorities for procurement, framed around five Labour government missions: kickstarting economic growth; delivering a clean energy superpower; taking back our streets; breaking down barriers to opportunity; and building an NHS fit for the future.

For suppliers, this means understanding how your offerings align with these missions and being able to articulate your contribution in bid responses. The NPPS requires contracting authorities to have regard to these priorities when planning and conducting procurements, so your strategy should be shaped by them.

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Pillar 1: Turn Early Success into Long-Term Growth

Your first public sector contract is not the destination -- it is the launchpad. Organisations that convert early wins into sustained growth follow a deliberate playbook.

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Build Your Evidence Base

Public sector buyers make decisions based on evidence, not promises. After every successful contract:

- Develop detailed case studies documenting the challenge, your approach, outcomes delivered, and lessons learned

- Collect formal testimonials from contracting authorities, with specific reference to KPIs and service quality

- Quantify your impact -- savings delivered, service improvements achieved, social value generated

- Record performance data that you can reference in future bids

Pursue Repeat Business

Public sector buyers prefer working with trusted suppliers. Maintaining relationships with contracting officers, procurement leads, and service managers increases your chances of contract extensions, direct awards, and early visibility of upcoming opportunities.

Use Your Track Record Strategically

Each successful contract strengthens your position for the next. Reference your public sector delivery experience in framework applications and tender responses, using specific examples that demonstrate your understanding of public sector requirements, governance, and accountability.

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Pillar 2: Diversify Your Framework Portfolio

Frameworks are the gateway to sustained public sector revenue. Being on the right frameworks positions you in front of buyers who are already authorised and motivated to purchase.

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National, Regional, and Sector-Specific Frameworks

A diversified framework strategy includes:

- National frameworks: Crown Commercial Service (now the Government Commercial Agency following its merger on 1 April 2026) manages over £90 billion of public sector spend through its framework agreements. G-Cloud 15, launching September 2026, has an estimated value of 14 billion £.

- Regional frameworks: NEPO, YPO, ESPO, and other regional bodies offer frameworks with lower competition and fewer entry barriers than national agreements, making them excellent starting points for SMEs.

- Sector-specific frameworks: NHS Workforce Alliance, Digital Outcomes and Specialists, and Education Buying Group frameworks provide access to specialist markets.

Open Frameworks: A Game-Changing Opportunity

The Procurement Act 2023 introduces open frameworks -- a fundamentally new mechanism that addresses one of the biggest frustrations with traditional frameworks: being locked out for up to four years if you miss the initial application window.

Open frameworks allow new suppliers to join during the framework's lifetime at periodic opening points (at least once in the first three years), with a maximum duration extended to eight years. This means you are no longer excluded from the market simply because you were not ready when the framework launched.

Dynamic Markets

Dynamic markets (replacing Dynamic Purchasing Systems) offer continuous access to public sector opportunities. Suppliers can apply for membership at any time, and the scope has been broadened beyond commonly used purchases to cover a wider range of goods, services, and works.

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Pillar 3: Embed Social Value into Your Business Model

Social value is no longer an afterthought in public sector procurement. It is a core evaluation criterion and, increasingly, a competitive differentiator.

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The Regulatory Framework

Section 12 of the Procurement Act 2023 stipulates that contracting authorities must "have regard to the importance of maximising public benefit" when awarding contracts. Under PPN 002 and PPN 06/20, in-scope contracting authorities must assign at least 10% of the total score weighting to social value, with commitments reflected in the contract as terms or key performance indicators.

Suppliers must also produce a carbon reduction plan for any tenders for contracts worth over £5 million (including VAT) per year.

Building a Social Value Strategy

The PPN 002 Social Value Model identifies five themes: COVID-19 recovery; tackling economic inequality; fighting climate change; equal opportunity; and wellbeing.

Organisations that treat social value as genuine rather than performative win more consistently. A facilities management company competing for local government contracts invested in a formal social value programme including local hiring commitments, apprenticeship schemes, and community investment. In competitive evaluations where technical scores were near-identical, the company consistently won on social value scores, securing four contracts worth a combined £12 million over two years.

To embed social value into your strategy:

- Develop measurable social value commitments aligned with the five PPN 002 themes

- Build a portfolio of evidence demonstrating past social value delivery

- Align social value initiatives with the specific priorities of your target contracting authorities

- Invest in carbon reduction planning and sustainability initiatives

- Track and report social value outcomes systematically

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Pillar 4: Use Commercial Pipeline Intelligence

The Procurement Act 2023 has created new opportunities for strategic planning through mandatory pipeline publication.

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What Pipeline Notices Mean for Suppliers

Any contracting authority with spend over £100 million must publish a pipeline notice outlining public contracts with an estimated value of more than 2 million £. This provides suppliers with critical intelligence for strategic planning:

- Early opportunity identification: See upcoming contracts months or years in advance

- Resource planning: Allocate bid teams and delivery resources against known opportunities

- Capability development: Build skills and capacity in anticipation of specific contracts

- Preliminary market engagement: Engage with contracting authorities during the pre-procurement phase, when your input can shape the specification

Tools for Competitive Intelligence

Beyond pipeline notices, use the following to build commercial intelligence:

- Central Digital Platform: Replacing Find a Tender Service as the primary portal for public procurement notices

- Contracts Finder: For contracts above £12,000 (central government) or £30,000 (sub-central)

- Tussell and Stotles: Commercial intelligence platforms that track framework awards, spend data, and competitive landscapes

- Framework body websites: GCA, NEPO, YPO, ESPO, and other bodies publish their own pipeline and framework information

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Pillar 5: Strengthen Internal Processes and Compliance

Long-term public sector success requires operational excellence. Contracting authorities increasingly assess not just what you deliver, but how you deliver it.

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Certifications and Standards

Maintain relevant certifications that demonstrate your operational maturity: ISO 9001 for quality management, ISO 27001 for information security, ISO 14001 for environmental management, and Cyber Essentials for cybersecurity baseline compliance. These certifications reduce risk for the buyer and differentiate you from competitors who lack them.

Technology and Efficiency

Invest in systems that support your public sector operations: bid management software for structured, consistent tender responses; contract management platforms for tracking obligations and performance; CRM systems for relationship management with contracting authorities; and project management tools that support transparent reporting.

SME-Specific Opportunities

The UK Government has set ambitious targets for direct spend with SMEs. All central government departments and their arms-length bodies must set three-year targets for direct SME spend from 1 April 2025, with VCSE targets to follow in 2026. Crown Commercial Service published its SME Action Plan 2025, outlining specific measures to increase SME access to government contracts through simplified processes and reduced barriers.

If you are an SME, your strategy should explicitly reference your SME status and align with these government commitments.

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Pillar 6: Expand Your Service Offerings

Once established in the public sector, look for opportunities to deepen and broaden your engagement.

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Adjacent Services

If you deliver a core service, consider what complementary offerings would add value for your existing clients. Training, consultancy, outcome-based contracting, and advisory services can increase revenue while strengthening your position as a strategic partner rather than a transactional supplier.

Consortium and Partnership Approaches

For larger contracts that exceed your individual capacity, consider consortia or subcontracting arrangements with complementary organisations. This allows you to access opportunities that would otherwise be out of reach while building relationships and experience in new areas.

Innovation and Digital Transformation

The government's action plan for artificial intelligence places public procurement at its core. Demonstrating innovation in your delivery approach -- particularly around digital transformation, data analytics, and automation -- positions you well for the evolving public sector landscape.

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How Athena Commercial Can Help

Building a long-term public sector strategy requires expertise in procurement regulation, bid management, framework applications, and commercial positioning. Athena Commercial works with suppliers across sectors to develop and execute public sector growth strategies -- from identifying the right frameworks to crafting winning bids and optimising commercial processes.

Whether you are seeking your first public sector contract or looking to scale an existing portfolio, we provide the strategic guidance and practical support to help you succeed.

To discuss your public sector strategy, visit www.athena-commercial.co.uk (add link - https://www.athena-commercial.co.uk) or contact our team directly.

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