What UK Procurement Act 2023 Section 41 - Direct Award in Special Cases (Direct Award Justification, Excluded Supplier Restriction, Overriding Public Interest Defence, Critical National Infrastructure, Defence/Security/Economic Stability, Extreme Urgency, Intelligence Services Definition) requires
Section 41 of the Procurement Act 2023 (c. 54) authorises direct award of public contracts in special cases - an exception to the competitive tendering procedure that is the default under the Act. Under section 41(1), if a direct award justification (set out in Schedule 5) applies, a contracting authority may award a public contract directly (a) to a supplier that is not an excluded supplier (per section 57 mandatory exclusion grounds list), or (b) in accordance with subsection (2). Under section 41(2), a contracting authority may award a contract to an excluded supplier if the authority considers there is an overriding public interest in doing so. Under section 41(3), the authority may conduct a selection process or take preliminary steps as appropriate for awarding a contract under this section. Under section 41(4), before awarding a contract, the authority must consider whether the supplier is an excludable supplier (per section 58 discretionary exclusion grounds). Under section 41(5), an overriding public interest exists if (a) necessary to construct, maintain or operate critical national infrastructure; (b) necessary to ensure proper functioning of sectors critical to UK defence, security, or economic stability; (c) failure would prejudice military/security operations or armed forces/intelligence services effectiveness; or (d) the contract involves extreme urgency (Schedule 5, paragraph 13) and cannot be awarded within required timeframes to non-excluded suppliers. Under section 41(6), direct award justifications are outlined in Schedule 5 (extreme urgency, no other supplier available, prototype/development, additional deliveries, follow-on works, IP exclusivity, dynamic market follow-on). Under section 41(7), 'intelligence services' means the Security Service (MI5), Secret Intelligence Service (MI6), and Government Communications Headquarters (GCHQ). Section 41 sits within Part 3 (Award of public contracts) and is the principal direct award mechanism. Enforcement is by Procurement Review Unit (PRU) under section 102 (Procurement Review and Investigation), the Cabinet Office under section 100 (Procurement guidance), and challenge by aggrieved suppliers under Part 9 (Remedies); the Procurement Act 2023 entered into force on 24 February 2025 replacing the Public Contracts Regulations 2015.
Pillar: Public Sector & Government Procurement · Authority: Parliament of the United Kingdom · Version: 1.0.0 · Last updated:
Primary source: https://www.legislation.gov.uk/ukpga/2023/54/section/41
SHA-256 integrity: 7c6ab2f039c8cb91c1f369840a797772d15fe4bff380acf9cc37bc389dc86b95
Primary Citations — 8 traced to source
- Procurement Act 2023 (c. 54) section 41 (Direct award in special cases): subsection (1) - if a direct award justification applies, a contracting authority may award a public contract directly (a) to a supplier that is not an excluded supplier, or (b) in accordance with subsection (2). Published at legislation.gov.uk/ukpga/2023/54/section/41.
- Procurement Act 2023 section 41(2): a contracting authority may award a contract to a supplier that is an excluded supplier if the authority considers there is an overriding public interest in doing so.
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