PROCUREMENT ACT 2023
(TENDERING IN 2026)
Why SMEs Are Still Losing Tenders in 2026
By February 2026, SME tendering sits firmly in the post-Procurement Act 2023 environment.
(Procurement Act 2023, officially launched on 24th Feb 2025).
This matters because evaluators are no longer just selecting the best sounding supplier.
They are selecting the supplier whose award decision can be defended, evidenced, and audited.
What the Procurement Act Changed (In Practice)
While the Act speaks about flexibility and value, the practical impact on evaluation has been very specific:
- Increased transparency obligations
- Stronger audit trails
- Heightened risk of challenge and debrief scrutiny
- Clearer focus on deliverability, not aspiration
Evaluators are now trained to ask:
“Can I justify this score externally?”
If the answer isn’t unequivocally “yes”, the score drops.
The Capability Paradox (Now a Compliance Risk)
In 2026, evaluators cannot rely on:
- Reputation
- Prior informal knowledge
- “We’ve always worked with them”
Under the Act, reliance on unstated assumptions exposes authorities to risk.
As a result, implicit capability is actively penalised.
If your bid does not:
- Explicitly describe governance
- Evidence control mechanisms
- Demonstrate delivery assurance
…then evaluators must mark cautiously, even if they believe you could deliver.
From Persuasion to Defensibility
The Procurement Act has shifted evaluation from preference to defensibility.
High scoring responses now:
- Use structured, repeatable delivery models
- Show ownership of risk rather than deflection
- Link claims directly to measurable outcomes
Language that scores well includes:
- “We will operate under defined governance”
- “Assurance is embedded prior to mobilisation”
- “Controls are in place to ensure consistency of output”
Language that scores poorly:
- “We have extensive experience”
- “Our team is highly skilled”
- “We pride ourselves on…”
Why Price Is a Governance Question, Not a Number
Under increased transparency and challenge rights, evaluators must explain:
- Why a price is credible
- How it is sustainable
- Whether it introduces delivery risk
A low price without operational logic raises red flags:
“Is this commercially realistic, or will it fail under scrutiny?”
As a result, price is increasingly treated as a risk indicator, not a competitive weapon.
Bid Maturity: The Unwritten Scoring Criterion
Although rarely labelled explicitly, Procurement Act evaluations heavily favour bid maturity, evidenced by:
- Clear mobilisation plans
- Defined roles and responsibilities
- Reporting and escalation pathways
- Alignment with contracting authority governance
SMEs that rely on informal working practices are not just outgunned, they are non-compliant with evaluator expectations.
What Winning SMEs Are Doing Differently
High performing SMEs in 2026:
- Write bids that help evaluators justify scores
- Make governance visible, not implied
- Frame delivery as a controlled system, not individual effort
- Anticipate audit, not just award
The Procurement Act Test
Before submission, ask:
“Would this response still score well if reviewed by an auditor or challenged by a losing bidder?”
If not, the evaluator is unlikely to score it highly, regardless of capability.
Final Thought
The Procurement Act didn’t make tendering easier.
It made it more explicit.
SMEs that learn to write bids that are defensible, auditable, and controlled will outperform competitors many times their size.
Please see our "BFV Procurement Act 2023 Tendering Checklist" - Click Here!