Social housing

The new procurement act and how registered social housing providers can achieve better insurance tender outcomes

Gary Newlyn 20 March 2025

The Procurement Act 2023, which came into force in February this year, aims to create a more transparent, flexible and accessible public sector procurement framework across the UK. With its introduction come two new tendering procedures: the open procedure and the competitive flexible procedure. In this article, we outline the differences between the two methods, explore their advantages and share how Miller is here to help.

What is the open procedure and what are the benefits of it?

The open procedure is designed to be simple and inclusive, enabling any interested supplier to submit a tender for a public sector procurement opportunity. This process particularly benefits small/medium-sized organisations and social enterprises as it offers better access to public sector contracts. Key benefits of this method include:

Inclusivity: as a diverse range of suppliers can participate, this fosters competition and encourages innovation
Transparency: allowing all interested suppliers to submit tenders helps build trust and accountability in public sector practices
Simplicity: the straightforward nature of the open procedure reduces administrative burdens for both buyers and suppliers, making the procurement process more efficient.

What is the competitive flexible procedure and what are the benefits of it?

The competitive flexible procedure provides public sector buyers with the option to create customised procurement processes that suit their specific needs. This approach enables a more dynamic strategy, allowing buyers to interact with suppliers in various ways, including negotiations, demonstrations, and prototype testing. Key benefits of this method include:

Flexibility: buyers have the freedom to design procurement processes that best meet their needs, leading to more innovative and effective results
Early market engagement: early interaction with suppliers allows buyers to explore the capabilities of suppliers, ensure these are aligned with their needs and adjust the process accordingly
Value for money: allowing buyers to consider a broader range of factors beyond just price encourages the selection of tenders that yield the most beneficial outcomes, including social and environmental value.

Miller’s Head of Social Housing & Public Sector, Gary Newlyn, shares his thoughts from an insurance impact angle:

“Insurance, including policy placement and claims handling, is complex and its true value emerges only during times of loss or damage. A flexible and competitive procedure allows buyers to create a customised process that fosters collaboration between the insured organisation and potential brokers and insurers. Taking a multi-stage approach not only helps in achieving the best tender outcome, but also builds relationships and allows all parties to clarify their understanding of what a successful contract looks like. Engaging in meaningful preliminary discussions enhances understanding of the teams and the supply chain involved in the bid, ultimately raising the standard of the services procured.”

Miller is here to help

In summary, both the open and competitive flexible procurement procedures have their own unique advantages. The open procedure promotes inclusivity, transparency, and simplicity, while the competitive flexible procedure offers flexibility, encourages early market engagement, and enhances value for money. The implementation of both processes is set to transform public sector procurement, making it more accessible, efficient, and effective.

Miller offers comprehensive risk and insurance solutions for organisations involved in the delivery of public services and social housing. These include registered providers, public sector bodies, community organisations, non-profits, for-profits, and investors.

Get in touch to find out more about how we can help you.

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