Procurement Pulse UK – May 2025

Welcome to Procurement Pulse, DLA Piper’s newsletter for those interested in developments in public procurement law. In this issue, we cover recent court rulings and policy updates that may impact procurement professionals in both contracting authorities and supplier companies.

 

RECENT COURT JUDGEMENTS

High Court clarifies evidence thresholds and damages in suspension cases

Millbrook Healthcare Ltd v Devon County Council

The High Court has provided important guidance on the adequacy of damages and evidentiary standards in procurement suspension cases.

Background

Millbrook Healthcare Ltd challenged Devon County Council’s decision to award a GBP46 million contract to Nottingham Rehab Limited, alleging procurement breaches. Devon sought to lift the automatic suspension to proceed with the contract.

Ruling

Applying the American Cyanamid test, the court held that damages would be an adequate remedy for Millbrook. It dismissed arguments around reputational harm and difficulty in quantifying loss, noting that losing public contracts is a commercial risk. The court also confirmed that the “sufficiently serious” test for Francovich damages is irrelevant at the interim stage.

Key takeaways

• Contracting authorities: Strong evidence is essential when seeking to lift a suspension. Authorities need not concede breach seriousness to succeed.
• Suppliers: To maintain a suspension, robust evidence of irreparable harm is required.

High Court lifts suspension despite alleged procurement irregularities

Robert Heath Heating Ltd v Orbit Group Ltd

The Technology and Construction Court (TCC) has reaffirmed its pragmatic approach to automatic suspensions, even where procurement concerns exist.

Background

Orbit Group awarded a heating services contract to Aaron Services, a company linked to a former Orbit officer. Robert Heath Heating Ltd challenged the award, citing transparency issues and potential conflicts of interest.

Ruling

While the court acknowledged a serious issue to be tried, it lifted the suspension, finding that damages would be an adequate remedy.

Key takeaways

• Contracting authorities: Ensure transparent evaluation and conflict of interest management to reduce litigation risk.
• Bidders: Provided there is a triable issue, the court will not consider the credibility and merits of the underlying challenge when deciding whether to lift the automatic suspension. This is the case under the former regime and the Procurement Act 2023.

 

POLICY, GUIDANCE and LEGISLATIVE DEVELOPMENTS

Procurement Act 2023: Key developments

Pipeline Notices (UK1): Compliance now in focus

As of 26 May 2025, contracting authorities expecting to spend over GBP100 million on relevant contracts should have published their pipeline notices under the Procurement Act 2023. These notices, required for contracts over GBP2 million, aim to enhance transparency and market engagement. A new guide has been published explaining how to search for notices and what information must be included.

Practical takeaway

Authorities should now ensure annual compliance with publication requirements. Suppliers may wish to monitor the Find a Tender service for new opportunities flagged through these notices.

Contract Modifications: New guidance

Both UK and Welsh Governments have issued detailed guidance on when and how public contracts can be modified under the new regime. Key changes include expanded grounds for modification and new transparency requirements.

National Security Unit for Procurement (NSUP)

New Cabinet Office guidance outlines how the NSUP will assess suppliers on national security grounds, including exclusion and debarment processes.

Payment Spot Checks (PPN 021)

The Cabinet Office has also published a procurement policy note detailing how contracting authorities can spot check their supply chains to enforce compliance with payment terms under the new Act. The provisions of the note are applicable from 1 October 2025.

Updated Procurement Policy Notes (PPNs)

The UK Government has issued key procurement policy updates:

• PPN 013 – Updates guidance on using standard contracts.
• PPNs 015 and 018 – Updates timelines and requirements for assessing supplier payment performance.
• PPN 019 – Updates Contracts Finder publication rules for procurements commenced under the old regime.
• PPN 020 – Updates data protection guidance to reflect new terminology under the new procurement regime.

 

Devolved Nations: Strategic shifts

Scotland has published its procurement strategy for 2025–2028, focusing on sustainable and inclusive procurement.

Wales has issued new guidance on dynamic markets and contract performance notices under the Procurement Act 2023.

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