Covered Buyer

The Procurement Act 2023 uses the term "covered buyer" as an umbrella concept to refer to all organisations that fall within the scope of the Act's procurement obligations. This is a broader category than "contracting authority" alone, as it also captures utilities and defence authorities who are subject to specific provisions within the Act.

What is a covered buyer?

A covered buyer is any organisation listed in or meeting the definitions in Schedule 1 of the Procurement Act 2023 that is required to follow the Act's rules when conducting covered procurement. The category includes three principal types of organisation.

A contracting authority is the most common type of covered buyer: central government departments, local authorities, NHS bodies, universities, maintained schools, housing associations, and other publicly funded or controlled entities. Contracting authorities are subject to the standard procurement rules in the Act.

A utility is an organisation that carries on a utility activity in the fields of water, energy, transport, or postal services, whether publicly or privately owned. Utilities are subject to a separate utilities procurement regime within the Act, which is somewhat more flexible than the standard contracting authority rules.

A defence authority is a contracting authority that procures in the field of defence and security, where specific national security considerations apply and different rules govern certain contract types.

Understanding which type of covered buyer you are dealing with matters because the applicable thresholds, procedures, and transparency requirements vary between the three categories.

Why it matters for bidders

Identifying the type of covered buyer behind an opportunity helps you assess the rules that will govern the competition and the remedies available to you if something goes wrong. A utility runs its procurement under the utilities regime, which has higher thresholds and somewhat more flexibility in procedure design than a contracting authority. A defence authority may operate under restricted transparency rules for national security reasons.

For all types of covered buyer, the fundamental obligations apply: competitions for above-threshold contracts must be conducted fairly, notices must be published on the appropriate platform, and successful and unsuccessful suppliers are entitled to the information the Act requires.

Example

An electricity distribution network operator that holds a statutory licence for distribution activities in a defined region is a covered buyer in the utilities category. When it procures vegetation management services for its network corridors above the applicable utilities threshold, it must follow the Act's utilities procurement rules. A contractor bidding for that opportunity will encounter different notice types and procedures than it would when bidding for a local authority contract of equivalent value.

Frequently Asked Questions

Where can I find the full list of covered buyers?

Schedule 1 of the Procurement Act 2023 lists the central government departments and types of body that are covered buyers. For sub-central bodies, the definition is based on meeting the contracting authority or utility criteria in the Act rather than appearing on a named list. The Cabinet Office publishes guidance to help organisations assess their status.

Are private sector companies ever covered buyers?

Private sector companies are generally not covered buyers unless they conduct utility activities under a statutory licence or concession, in which case they fall within the utilities regime. A private water company holding a statutory licence for water supply is a covered buyer for its procurement of goods and services related to that activity.

Do covered buyers in Wales face additional requirements?

Devolved Welsh Authorities must have regard to Welsh procurement policy in addition to the Act's requirements, reflecting the devolved competence of the Welsh Government over many public services in Wales.