The Cma's New Procurement‑screening Tool (UK, 2026): What Suppliers and Contracting Authorities Must Do

The procurement screening tool UK suppliers and contracting authorities now face marks one of the most consequential shifts in public procurement compliance in a generation. Driven by the Procurement Act 2023 and the government’s “Refining our competition regime” consultation, the Competition and Markets Authority has been given an expanded role in screening public‑contract awards for competition concerns, including bid‑rigging indicators, market concentration risks and mandatory exclusion triggers. For any organisation that bids for or awards public contracts in the United Kingdom, these changes demand immediate operational attention: tender documents must be updated, internal compliance reviews must be conducted before bids are submitted, and clear evidence trails must be maintained in case of a CMA inquiry.

What the Procurement Screening Tool UK Framework Involves

Legislative background: the Procurement Act 2023 and the Competition Reform Bill

The foundation for the CMA’s procurement screening powers sits in two overlapping legislative instruments. The Procurement Act 2023 introduced a statutory framework for exclusion and debarment of suppliers on competition grounds, replacing the patchwork of rules that previously governed public procurement in England, Wales and Northern Ireland. The Act established mandatory and discretionary exclusion grounds, created a centrally managed debarment register, and empowered the Procurement Review Unit (PRU) to investigate and recommend supplier exclusions.

The Competition Reform Bill, advanced through the government’s “Refining our competition regime” consultation, extends the CMA’s decision‑making powers and introduces a formal procurement screening mechanism. This mechanism authorises the CMA to proactively analyse bidding data, flag suspicious patterns and, where warranted, refer matters for full investigation or recommend debarment to the PRU. The combined effect of these instruments is a competition law reform UK practitioners must treat as operationally live.

How the CMA’s screening power operates in practice

The CMA procurement screening process operates as a data‑driven detection layer sitting between tender submission and contract award. The CMA draws on bidding data from Find a Tender, the Central Digital Platform, and directly from contracting authorities to identify statistical anomalies, for example, repeated single‑bidder outcomes, rotating winners, or pricing patterns consistent with market allocation. When screening flags a concern, the CMA may open a preliminary assessment, request further information from suppliers or the contracting authority, or escalate the matter to a formal investigation under its existing enforcement powers.

Direct answer: what is the CMA procurement‑screening tool and when does it apply?

The CMA procurement‑screening tool is a data‑analysis mechanism used by the Competition and Markets Authority to detect potential anti‑competitive behaviour in UK public procurement. It applies to contracts governed by the Procurement Act 2023 and operates on data flowing through Find a Tender and the Central Digital Platform. Key points:

• Who it affects. All suppliers bidding for above‑threshold public contracts and all contracting authorities awarding them.
• When it applies. Screening is active from the point of tender publication through to contract award and post‑award monitoring.
• What triggers it. Statistical anomalies in bid data, complaints from rival bidders, or referrals from contracting authorities.
• What it can lead to. CMA preliminary assessment, formal investigation, debarment recommendation or enforcement action.

Which Contracts, Procurements and Suppliers Are in Scope of CMA Procurement Screening

Contract types and sector thresholds

The procurement screening tool applies to all regulated contracts awarded under the Procurement Act 2023. In practice, early indications suggest the CMA’s screening activity will focus on sectors where competition risks are highest and where public spending is greatest. These include health and social care commissioning, transport infrastructure, defence procurement (to the extent covered by the Act rather than defence‑specific regulations), IT and digital services to central government, and large‑scale construction frameworks.

Monetary thresholds mirror those in the Act itself: goods and services contracts above the relevant threshold values published on GOV.UK, and works contracts above their corresponding threshold. However, industry observers expect the CMA to apply screening selectively, prioritising high‑value, high‑risk frameworks and contracts where market structures create opportunities for collusion, rather than running algorithmic checks against every low‑value procurement.

Supplier profiles most likely to draw scrutiny

Certain supplier profiles are inherently more likely to be flagged by the screening tool. Dominant incumbents who have held a particular contract for multiple renewal cycles without meaningful competitive challenge will attract attention, as will suppliers who appear as winners across multiple related frameworks in patterns consistent with market allocation. Joint ventures and consortium bids, while entirely lawful, will receive closer scrutiny where consortium membership rotates or where partners submit separate competing bids on related procurements. International bidders with significant UK market share in concentrated sectors should also anticipate heightened review.

Quick checklist: which contracts and suppliers are likely to be screened?

• Above‑threshold regulated contracts under the Procurement Act 2023
• Frameworks and dynamic purchasing systems with limited bidder pools
• Contracts in concentrated markets (health, transport, IT, construction)
• Suppliers with long incumbent histories or repeat single‑bidder wins
• Consortium bids where partners also bid individually on related lots
• Suppliers subject to ongoing or prior CMA enforcement activity

What Suppliers Bidding Public Contracts Must Do at Bid Stage

Pre‑bid due diligence checklist

Every supplier bidding for a UK public contract should complete a structured internal review before submitting a tender. The following checklist covers the core areas that the procurement screening tool and the Procurement Act 2023 exclusion regime make relevant:

Do suppliers need to notify the CMA before bidding?

Under the current framework, suppliers bidding public contracts are not required to file a pre‑bid notification with the CMA. The screening mechanism operates on the authority side and on aggregate bidding data, it does not impose a pre‑clearance obligation on tenderers analogous to a merger notification. However, this does not mean suppliers can ignore the process. The Procurement Act 2023 requires suppliers to make truthful declarations in their tender submissions regarding any exclusion grounds. Concealing a mandatory exclusion event, such as a prior cartel finding or an ongoing CMA investigation, is itself a ground for exclusion and may constitute a criminal offence.

The practical effect is that while there is no standalone CMA notification requirement at bid stage, the obligation to declare exclusion grounds functions as a de facto disclosure trigger.

Sample supplier disclosure wording and self‑cleaning evidence

Where a supplier has identified a potential exclusion event (whether historical or ongoing), the self‑cleaning process under the Procurement Act 2023 requires the supplier to demonstrate that it has taken sufficient remedial steps to be considered reliable. A disclosure statement should include:

• Summary of the event. A concise description of the conduct that gives rise to the exclusion ground, including dates and jurisdictions.
• Remedial steps taken. Detail of the compliance programme implemented, personnel changes, cooperation with authorities, and any compensation paid.
• Third‑party verification. Where available, an independent compliance audit or monitor report confirming the adequacy of remedial measures.
• Ongoing commitments. A statement of continuing compliance obligations and reporting structures.

For a more detailed supplier checklist and template disclosure, see the downloadable supplier compliance checklist.

Contracting Authority Compliance: What Buyers Must Do Before Awarding or Signing

Legal obligations under the Procurement Act 2023

Contracting authorities bear the primary responsibility for ensuring that procurement screening obligations are met before a contract is awarded. Under the Procurement Act 2023, a contracting authority must prepare an assessment summary before entering into a public contract. This assessment summary must set out the authority’s evaluation of the winning tender against the award criteria, including any exclusion or selection decisions.

The Act also requires the authority to publish a contract award notice on Find a Tender and to observe the mandatory standstill period before the contract can be signed. During this standstill period, unsuccessful bidders may challenge the award decision. Separately, where an authority identifies that a supplier may be subject to a mandatory or discretionary exclusion ground, including grounds relating to competition offences, it must consider whether to refer the matter to the PRU for potential inclusion on the debarment register.

Operational steps: FVRA, cartel screening and market health checks

Beyond the statutory minimum, contracting authorities should build additional screening steps into their procurement workflow. The Financial Viability Risk Assessment (FVRA) tool, available on the Procurement Pathway platform, provides a structured framework for assessing whether a bidder has the financial standing to deliver a contract. While the FVRA is not strictly a competition tool, the data it generates, particularly regarding a supplier’s market position, dependencies and financial resilience, feeds directly into the risk picture that the CMA’s screening mechanism examines.

Authorities should also conduct their own market health checks before launching a procurement. The National Audit Office’s report on competition in public procurement emphasised that contracting authorities routinely underestimate market concentration risks and recommended pre‑procurement market analysis as standard practice. Practical steps include reviewing historic bidder participation on Find a Tender, consulting CMA market study reports for the relevant sector, and documenting any concerns about limited competition in the procurement file.

Tender document changes and mandatory clauses

Contracting authority compliance also requires updates to tender documentation. Invitation‑to‑tender documents should include explicit clauses requiring bidders to declare any exclusion grounds on competition grounds. A sample clause for incorporation into tender documents might read:

“The Bidder confirms that neither it nor any of its directors, officers or connected persons have been the subject of a finding, decision or conviction relating to a competition infringement (whether by the CMA, a sector regulator, or an equivalent authority in any jurisdiction) that would constitute a mandatory or discretionary exclusion ground under the Procurement Act 2023. Where any such matter exists or is pending, the Bidder must disclose full details and any self‑cleaning evidence in its tender submission.”

Notification and reporting obligations by entity type

How CMA Procurement Screening Interacts with Enforcement

CMA enforcement levers and remedies

When the procurement screening tool identifies a competition concern, the CMA enforcement procurement pathway activates. The CMA has a graduated set of enforcement tools at its disposal. At the lowest level, the CMA may issue an advisory letter or warning notice, putting the supplier or contracting authority on notice that a concern has been identified. More seriously, the CMA can open a formal investigation under the Competition Act 1998, which can result in financial penalties of up to 10% of worldwide group turnover. In cases involving criminal cartel conduct, the CMA can pursue prosecution of individuals.

On the procurement‑specific side, the CMA can recommend that the PRU add a supplier to the debarment register, effectively barring the supplier from winning regulated public contracts for a specified period.

Typical triggers that escalate screening to enforcement

Industry observers expect the following screening outputs to be most likely to trigger a formal CMA investigation:

• Bid‑rigging patterns. Statistical evidence of cover pricing, bid rotation or market allocation across related procurements.
• Information exchange. Evidence that competing bidders shared pricing or strategy information before submitting tenders.
• Single‑bidder procurements. Repeated instances where only one supplier bids despite an apparently competitive market, potentially indicating collusive abstention.
• Consortium abuse. Consortium bids structured to eliminate competition between partners who would otherwise bid independently.
• Concealed exclusion events. Suppliers who fail to disclose a prior competition infringement in their tender declarations.

Practical defence: evidence to gather now

Suppliers concerned about potential CMA scrutiny should take defensive steps immediately. Maintain a complete audit trail of all bid preparation documents, including cost models, pricing rationale, and records of any market engagement. Ensure that internal compliance training records are current and retrievable. If approached by the CMA, avoid informal responses, engage specialist competition counsel before providing any substantive information, and exercise particular caution around requests for contemporaneous documents such as emails and meeting notes.

Practical Checklists and Templates for the Procurement Screening Tool UK

Supplier compliance checklist

A one‑page supplier compliance checklist covering the 12‑point pre‑bid review, self‑cleaning evidence requirements and CMA response protocol should be treated as a standing item in every tender bid pack. The checklist should be reviewed and signed off by legal counsel before each bid submission. Key sections include:

• Competition compliance declaration (current status of any CMA or regulator investigations)
• Consortium and subcontractor conflict check
• Financial viability documentation readiness
• Pricing rationale and independence verification
• Escalation contacts (legal adviser, named competition counsel, internal compliance officer)
• Evidence retention schedule and document hold protocol

Contracting authority tender wording bank

Contracting authorities should update their standard tender templates to include the following elements:

• Competition exclusion declaration clause. Require each bidder to confirm compliance with the mandatory and discretionary exclusion grounds under the Procurement Act 2023.
• Self‑cleaning disclosure provision. Provide a structured mechanism for bidders to submit self‑cleaning evidence where an exclusion ground is identified.
• CMA cooperation clause. Reserve the authority’s right to share bidding data with the CMA for screening purposes and to suspend or withdraw an award if a CMA concern is raised during the standstill period.
• PRU notification clause. Include a statement that the authority may refer matters to the PRU where there are grounds to consider debarment.

Sample CMA response letter framework

If a supplier receives a CMA inquiry letter following procurement screening, the response should be structured around three elements: (1) confirmation of the supplier’s identity and the contract(s) referenced; (2) a factual narrative addressing each specific concern raised by the CMA; and (3) supporting documentary evidence. Do not provide narrative without legal review. A template letter framework for suppliers registered on public procurement platforms is available as a downloadable resource.

Likely Timelines and Next Steps for Public Procurement UK

Key legislative and administrative dates

Five immediate actions this month

• Audit current tender templates against Procurement Act 2023 exclusion‑ground requirements and insert competition declaration clauses.
• Run an internal compliance check to confirm no undisclosed CMA or regulator investigations affecting any current bids.
• Register or update supplier profiles on the Central Digital Platform and Find a Tender.
• Brief procurement teams and bid managers on the CMA screening mechanism and escalation procedures.
• Engage specialist competition counsel to review high‑value bids in pipeline for screening risk.

Conclusion

The procurement screening tool UK framework represents a fundamental upgrade in how competition compliance intersects with public procurement. The days when tender submissions could be treated as purely commercial exercises, disconnected from competition enforcement, are over. Suppliers must build pre‑bid competition compliance checks into every tender workflow, maintain auditable evidence trails, and prepare CMA response protocols in advance. Contracting authorities must update tender documents, integrate FVRA and market health checks into procurement workflows, and understand when and how to notify the PRU. The costs of inaction, exclusion, debarment, fines and reputational damage, are substantial and immediate. Organisations that invest in compliance infrastructure now will be best positioned to win and retain public contracts as CMA procurement screening activity intensifies.

Sources

1. Procurement Act 2023, legislation.gov.uk
2. GOV.UK, Procurement Act 2023 guidance documents (procure phase)
3. GOV.UK, Refining our competition regime (consultation)
4. Competition and Markets Authority, GOV.UK
5. Competition and Markets Authority blog
6. Procurement Pathway, Financial Viability Risk Assessment tool
7. GOV.UK, Find a Tender service
8. Central Digital Platform, Supplier Registration Service
9. National Audit Office, Lessons learned: competition in public procurement
10. GOV.UK, Debarment guidance (PRU notification)