What is direct award?
Direct award is awarding a public contract to a supplier without running a competition. Under the Procurement Act 2023 it is permitted only in the limited circumstances the Act sets out, for example where only one supplier can realistically provide what is needed, or in cases of extreme and unavoidable urgency. Before making a direct award, a contracting authority must publish a transparency notice.
Direct award, explained
Competition is the default in UK public procurement, so direct award is the exception. The Procurement Act 2023 lists the grounds on which a contract may be awarded without a competitive tendering procedure. They include situations where only one supplier can supply what is needed, for instance because of technical reasons or exclusive rights, prototypes and research or development work, certain additional or repeat supplies, commodities bought on a commodity market, user choice contracts in health and social care, and extreme and unavoidable urgency.
There is also a route where a competitive process has already been run and produced no suitable tenders or requests to participate, allowing the authority to switch to a direct award without starting again. In addition, the Act allows ministers to make regulations permitting direct award in the public interest. Whichever ground is used, the authority has to be able to point to it and evidence it, because the ground is the whole basis of the award.
Direct award is not a shortcut for late planning. Urgency that the authority created by leaving things too long is not unavoidable urgency. Nor is a direct award the same as calling off from a framework or awarding under a dynamic market: those are competitive arrangements the supplier already qualified for. Before making a direct award the authority must publish a transparency notice, and it must publish a contract award notice before entering into the contract. The mandatory standstill period of at least eight working days applies before entering into a contract, subject to the exceptions the Act sets out, so check whether it applies to your route.
Key things to know
The exception, not the norm
Competition is the default; direct award is only available on the grounds the Act sets out.
Named grounds only
Grounds include single supplier situations, prototypes and research, certain repeat supplies, commodity markets, user choice contracts and extreme urgency.
Transparency notice first
A transparency notice must be published before the direct award is made, so the market can see it.
Self-made urgency does not count
Urgency created by the authority's own delay is not extreme and unavoidable urgency.
Not the same as a call-off
Awarding under a framework or dynamic market is different: those suppliers were already competed or qualified.
Evidence the ground
The chosen ground is the basis of the award, so the reasoning needs to be recorded and defensible.
Explore: What is a transparency notice?, What is a contract award notice?, What is a framework agreement?, For buyers: compliance.
How eSourcingData helps
eSourcingData keeps non-competitive awards visible, evidenced and correctly noticed, so a necessary direct award does not become a challenge.
Record the ground
Capture which ground you are relying on and the evidence behind it at the point of decision.
Get the notices out
Track the transparency notice and contract award notice so nothing is published late or missed.
Governance built in
Route direct award decisions through the right approvals before anything is committed.
Reduce repeat exposure
See where repeated direct awards point to a category that needs a proper market approach.
FAQs
What is direct award?
Direct award is awarding a public contract to a supplier without running a competition. Under the Procurement Act 2023 it is allowed only on the limited grounds the Act sets out, such as where only one supplier can provide what is needed or in cases of extreme and unavoidable urgency. A transparency notice must be published before the award is made.
When is direct award allowed under the Procurement Act 2023?
On the grounds the Act specifies. These include single supplier situations arising from technical reasons or exclusive rights, prototypes and research or development, certain additional or repeat supplies, commodities bought on a commodity market, user choice contracts in health and social care, and extreme and unavoidable urgency. There is also a route where a competition produced no suitable tenders.
Does a direct award have to be published?
Yes. A contracting authority must publish a transparency notice before making a direct award, and must publish a contract award notice before entering into the contract. That sequence exists so the market can see a non-competitive award before it is signed rather than discovering it afterwards.
Is urgency enough to justify a direct award?
Only genuine extreme and unavoidable urgency, and not urgency the authority caused itself. If the pressure arose because the procurement was started too late or a contract expiry was missed, that is not unavoidable, and using urgency as a justification in those circumstances is a common cause of challenge.
Is a framework call-off a direct award?
No, they are different things. A call-off under a framework, or an award under a dynamic market, uses an arrangement whose suppliers were already competed or qualified. Direct award under the Act means going to a supplier with no competitive process at all, which is why it needs a specific ground and a transparency notice.
Keep non-competitive awards defensible
See how eSourcingData helps UK buyers evidence and notice direct awards under PA23. Book a demo or request a pilot.