Direct Award

Public procurement law is built on the principle that public money should be spent through open competition, giving all capable suppliers an equal opportunity to win contracts. A direct award bypasses that competition entirely: the contracting authority identifies a specific supplier and awards the contract without inviting others to tender. The Procurement Act 2023 permits direct awards in tightly defined circumstances but imposes significant new transparency requirements to ensure the exception does not swallow the rule.

What is a direct award?

Under the Procurement Act 2023, a direct award is a contract award made to a named supplier without a competitive process. The Act sets out an exhaustive list of grounds on which a direct award is permissible. These include: genuine emergencies where there is an immediate and unforeseen need that cannot wait for competition; extreme urgency brought about by events outside the buyer's control; contracts that can only technically be performed by one supplier (true monopoly); awards following an innovation partnership; specific national security grounds; and certain below-threshold situations where competition would be disproportionate.

Critically, the Act removes some of the flexibility that existed under the old EU-derived rules. Urgency manufactured by poor planning does not qualify as an emergency. A preference for an incumbent supplier, or the operational inconvenience of running a competition, is not sufficient justification.

When a buyer intends to make a direct award, it must publish a transparency notice at least 10 days before signing the contract (except in genuine emergency situations). This notice alerts the market and gives potential challengers an opportunity to object before the contract is signed. After award, the buyer must publish a contract details notice and, if the direct award was made on particular grounds, a direct award justification notice.

Why it matters for bidders

Direct awards are both a risk and an opportunity depending on your position. If you are an incumbent supplier being directly awarded a contract renewal, the new transparency requirements mean that competitors can see the award before it is signed and may challenge it if they believe competition should have been run. If you are a competitor who sees a transparency notice for a direct award you believe is unjustified, you have at least 10 days to raise concerns before the contract is executed.

For the market more broadly, the publication of direct award transparency notices on Find a Tender creates a useful intelligence source: you can identify which buyers are relying on direct awards, in which categories, and at what values.

Example

A local authority's refuse collection contract expires unexpectedly after the incumbent supplier enters administration. The authority has no framework in place and immediate continuity of service is essential. It directly awards a short-term contract to a nearby authority's contractor under the emergency ground, publishes a transparency notice (waiving the 10-day period given genuine emergency), and simultaneously begins a competitive process for a longer-term contract.

Frequently Asked Questions

Can a buyer directly award a contract simply because they trust an incumbent?

No. Preference for an existing supplier, familiarity, or relationship is not a valid ground for a direct award under the Procurement Act 2023. The buyer must identify a specific statutory ground and document it in a direct award justification notice.

What is the 10-day notice requirement for direct awards?

Before signing most direct award contracts, buyers must publish a transparency notice on Find a Tender at least 10 days in advance. This allows the market to see that a direct award is planned and to raise any concerns. Genuine emergency direct awards are exempt from this requirement.

How can a competitor challenge a planned direct award?

If a competitor believes a planned direct award is unlawful, they can contact the contracting authority, seek an injunction from the courts to prevent signing, or pursue a formal procurement challenge. The transparency notice is the signal to act, as once the contract is signed the legal remedies become more limited.