Procurement Review Unit Now Live: What Contracting Authorities and Suppliers Need to Know

The Cabinet Office’s Procurement Review Unit (PRU) is now operational and has begun accepting referrals. The PRU forms a central part of the UK’s new oversight architecture under the Procurement Act 2023, supporting efforts to drive higher standards, improve compliance and enhance confidence in public procurement.

What is the PRU?

The PRU is a new unit within the Cabinet Office tasked with overseeing the new procurement regime and ensuring that contracting authorities and suppliers operate in line with the obligations introduced by the PA23. Its mandate is designed to make the regime quicker, simpler and more transparent, while remaining aligned with the UK’s international obligations. 

Scope and remit of the PRU

The PRU delivers its oversight role through three specialist services, each with a distinct function but collectively aimed at improving standards and strengthening accountability across public procurement:

1. Public Procurement Review Service: allows suppliers to raise concerns about specific procurements that have taken place within the last two years, including issues relating to fairness, process or late payment. It can make recommendations to contracting authorities and, in some cases, prompt adjustments to live procurements. 
    
2. Procurement Compliance Service: investigates systemic or institutional non‑compliance by contracting authorities. It uses statutory powers to examine behaviour and processes, issuing recommendations or more general guidance following an investigation. Reports may be published to increase transparency across the sector. 
    
3. Debarment Review Service: assesses whether suppliers should be added to the central debarment list. This mechanism aims to protect public money by ensuring that only suitable suppliers can bid for or hold public contracts. 

What is the purpose of the PRU?

The PRU is intended to operate as a targeted oversight and assurance mechanism rather than a substitute for legal challenge or contractual remedies. Its overarching aim is to improve standards across public procurement by identifying and addressing poor practice at an early stage, promoting consistency where systemic issues emerge across multiple procurements, and protecting the public purse through central oversight of supplier suitability and exclusion decisions. The Cabinet Office has provided further detail on its ambitions for the PRU in its Raising Standards guidance. 

The Unit is also designed to enhance transparency, including through the publication of reports and recommendations, while offering suppliers a structured route to raise concerns outside of formal dispute or litigation processes. However, it appears that its remit is deliberately focused. For example, certain entities, such as private utilities and specific NHS personal care services, fall outside its scope, ensuring that the PRU concentrates its resources on areas of public sector procurement where the greatest systemic risks are likely to arise.

What this means for contracting authorities and suppliers

With the PRU now live:

• Contracting authorities should ensure their processes, templates and governance arrangements are aligned with the PA23, and be prepared to respond to PRU investigations or recommendations.
• Suppliers now have a centralised route for raising concerns about procurement practice or late payment issues.
• Both sides should monitor the developing body of PRU reports, which are likely to shape the market’s understanding of compliance expectations.

As a firm, we will continue to track PRU activity, including the nature of early referrals and emerging trends across the UK procurement landscape. If you would like to discuss what the PRU’s opening means for your organisation or your upcoming procurements, please get in touch.

Contributors: Laura Wisdom (Partner), Sophie Osborn (Trainee)