On 31st January 2020, the UK officially left the EU. While this separation gets rid of some uncertainties that have been plaguing different industries, there are still some doubts about what happens to procurement after Brexit.
What you should know
As a procurement professional or decision-maker, you don’t have to worry too much. On a day-to-day basis, nothing will change in procurement with Britain exiting the EU. The EU procurement laws will be applicable in the UK at least until 31st December 2020.
In fact, the UK and EU Withdrawal Agreement has provision to ensure that even after 31st December 2020, the EU procurement law will continue to apply until the different regulations, such as the utilities and concessions rules and Public Contracts Regulations 2015, become integral to the domestic procurement law.
Once the domestic procurement law comes into effect, these regulations will govern procurement from the EU and other parts of the world. The legislation will also have implications for public procurement.
What about the future of procurement?
In the near future, businesses do not have to worry, as the EU procurement laws will be in force. However, the government will now have to work out trade agreements, in particular with the EU, the US and the NATO nations.
Also, businesses need to look at non-EU suppliers that can offer quality supplies at more competitive prices and without hindering the supply chains.
The key is to ensure that the companies can maintain their supply chains and procurement needs without any obstacle and still reduce procurement costs.
In the future, the common regulatory framework for procurement may encompass not only the UK but also Scotland and Wales. However, only time will tell if this can become a possibility.