Procurement Act 2023 · PART 1 Key definitions

2 Contracting authorities

s. 2 · in force: yes

Captured statutory text (L5)

2 Contracting authorities

(1)In this Act “contracting authority” means—

(a)a public authority, or

(b)in the case of a utilities contract, a public authority, public undertaking or private utility,

other than an excluded authority.

(1A)But see also section 83B(5)(b)(i) (which provides for “contracting authority” to have an extended meaning in relation to certain contracts regulated under Part 5A (outsourcing: protection of workers)).

(2)In this Act— “public authority” means a person that is— wholly or mainly funded out of public funds, or subject to public authority oversight, and does not operate on a commercial basis (but see subsections (9) and (10)); “public undertaking” means a person that— is subject to public authority oversight, and operates on a commercial basis; “private utility” means a person that— is not a public authority or public undertaking, and carries out a utility activity.

(3)A person is subject to public authority oversight if the person is subject to the management or control of—

(a)one or more public authorities, or

(b)a board more than half of the members of which are appointed by one or more public authorities.

(4)The following are examples of factors to be taken into account in determining whether a person operates on a commercial basis—

(a)whether the person operates on the basis that its losses would be borne, or its continued operation secured, by a public authority (whether directly or indirectly);

(b)whether the person contracts on terms more favourable than those that might reasonably have been available to it had it not been associated with a public authority;

(c)whether the person operates on a market that is subject to fair and effective competition.

(5)The following authorities are excluded authorities—

(a)a devolved Scottish authority , except where a devolved Scottish authority carries out procurement falling within section 115A;

(b)the Security Service, the Secret Intelligence Service and the Government Communications Headquarters;

(c)the Advanced Research and Invention Agency;

(d)any person that is subject to public authority oversight—

(i)only by reference to a devolved Scottish authority, or

(ii)by reference to an authority mentioned in paragraph (b) or (c).

(6)An authority is a “devolved Scottish authority” if its functions are exercisable only in or as regards Scotland, and—

(a)none of its functions relate to reserved matters, or

(b)some of its functions relate to reserved matters and some do not.

(7)A contracting authority that is a public undertaking or private utility is to be treated as a devolved Scottish authority for the purposes of this Act if it operates only in or as regards Scotland, and—

(a)none of its activities relate to reserved matters, or

(b)some of its activities relate to reserved matters and some do not.

(8)In this Act, a reference to a devolved Scottish authority includes a reference to an authority that is to be treated as a devolved Scottish authority for the purposes of this Act.

(9)In this Act, a reference to a public authority includes a reference to the Common Council of the City of London.

(10)For the purposes of this Act, a person that operates on a commercial basis but is, as a controlled person, awarded an exempted contract by a public authority in reliance on paragraph 2 of Schedule 2 (vertical arrangements) is to be treated as a public authority in relation to any relevant sub-contract.

(11)This Act does not apply to His Majesty acting in his private capacity.

(12)In this section— “relevant sub-contract” means a contract substantially for the purpose of performing (or contributing to the performance of) all or any part of the exempted contract; “reserved matters” has the same meaning as in the Scotland Act 1998.

Full captured verbatim text

(1) In this Act “contracting authority” means—

(a) a public authority, or

(b) in the case of a utilities contract, a public authority, public undertaking or private utility,

other than an excluded authority.

(1A) But see also section 83B(5)(b)(i) (which provides for “contracting authority” to have an extended meaning in relation to certain contracts regulated under Part 5A (outsourcing: protection of workers)).

(2) In this Act—

“public authority” means a person that is—

wholly or mainly funded out of public funds, or

subject to public authority oversight,

and does not operate on a commercial basis (but see subsections (9) and (10));

“public undertaking” means a person that—

is subject to public authority oversight, and

operates on a commercial basis;

“private utility” means a person that—

is not a public authority or public undertaking, and

carries out a utility activity.

(3) A person is subject to public authority oversight if the person is subject to the management or control of—

(a) one or more public authorities, or

(b) a board more than half of the members of which are appointed by one or more public authorities.

(4) The following are examples of factors to be taken into account in determining whether a person operates on a commercial basis—

(a) whether the person operates on the basis that its losses would be borne, or its continued operation secured, by a public authority (whether directly or indirectly);

(b) whether the person contracts on terms more favourable than those that might reasonably have been available to it had it not been associated with a public authority;

(c) whether the person operates on a market that is subject to fair and effective competition.

(5) The following authorities are excluded authorities—

(a) a devolved Scottish authority , except where a devolved Scottish authority carries out procurement falling within section 115A;

(b) the Security Service, the Secret Intelligence Service and the Government Communications Headquarters;

(c) the Advanced Research and Invention Agency;

(d) any person that is subject to public authority oversight—

(i) only by reference to a devolved Scottish authority, or

(ii) by reference to an authority mentioned in paragraph (b) or (c).

(6) An authority is a “devolved Scottish authority” if its functions are exercisable only in or as regards Scotland, and—

(a) none of its functions relate to reserved matters, or

(b) some of its functions relate to reserved matters and some do not.

(7) A contracting authority that is a public undertaking or private utility is to be treated as a devolved Scottish authority for the purposes of this Act if it operates only in or as regards Scotland, and—

(a) none of its activities relate to reserved matters, or

(b) some of its activities relate to reserved matters and some do not.

(8) In this Act, a reference to a devolved Scottish authority includes a reference to an authority that is to be treated as a devolved Scottish authority for the purposes of this Act.

(9) In this Act, a reference to a public authority includes a reference to the Common Council of the City of London.

(10) For the purposes of this Act, a person that operates on a commercial basis but is, as a controlled person, awarded an exempted contract by a public authority in reliance on paragraph 2 of Schedule 2 (vertical arrangements) is to be treated as a public authority in relation to any relevant sub-contract.

(11) This Act does not apply to His Majesty acting in his private capacity.

(12) In this section—

“relevant sub-contract” means a contract substantially for the purpose of performing (or contributing to the performance of) all or any part of the exempted contract;

“reserved matters” has the same meaning as in the Scotland Act 1998.

What this provision means

Model summary, checked against the text on the left.

Relevance to Signicat: 1/3 · detailed summary (L4) Status: not needed for a short provision · Stored artifact; current recipe verification unavailable

Contracting authorities include public authorities, public undertakings and private utilities, subject to exclusions for devolved Scottish authorities and security services.

Only the one-line summary above is stored for this provision; the text itself is the evidence.

Refers to

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cross-reference internal_cite · s. 115A

cross-reference internal_cite · s. 83B

Referred to by

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cross-reference internal_cite · Sch. 6 para. 7

cross-reference internal_cite · s. 124

Part summaries

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Verification findings (391)

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synthesis coverage: missing/unverified L2 schedule-11

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Instrument tier unavailable

Change history as published

Sch. 9 para. A1 and cross-headings omitted (24.2.2025) by virtue of The Procurement (Miscellaneous Amendments) (Wales) Regulations 2025 (S.I. 2025/181), regs. 1(2), 3(4)(a)

Sch. 9 para. B1 and cross-headings omitted (W.) (31.12.2025) by The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2025 (S.I. 2025/1361), regs. 1(2), 3(2) (with reg. 4)

Sch. 9 para. C1 and cross-headings omitted (W.) (31.3.2026) by virtue of The Procurement Act 2023 (Specified International Agreements) (Amendment) (Wales) Regulations 2026 (W.S.I. 2026/97), regs. 1(2), 2(2) (with reg. 3)

Pending effects amendments not yet applied to this text

No captured pending effects.

Provenance

Every claim the system makes about this text is traceable to these identifiers.

Instrument: uk:ukpga/2023/54
Part: PART 1 Key definitions
Version: 1f42cbe2e52b2d3b319dfe92…
Content hash: sha256 f2281a94056851c51e3dc6c1…
Source: legislation.gov.uk/ukpga/2023/54