New Procurement Policy Note and Standard Selection Questionnaire

The PPN can be found here and a Word copy found here.

The main changes the New PPN introduces are as follows:

Summary of key clarifications

• The New Procurement Policy Note seeks to provide clarity on changes contracting authorities can make to the wording of questions. The procedure mirrors the Old PPN, the only marked difference is that deviations should be reported to the [email protected] in accordance with paragraph 15 (formerly, deviations were reported to the Mystery Shopper). The procedure under the Old PPN in relating to Part 3 remains in operation under the New PPN – contracting authorities can rephrase questions to coincide with the the format of their e-procurement system and contracting authorities may add project specific questions.
• The New PPN clarifies what is meant by relying on another organisation to meet the selection criteria:
  • “an organisation is relied on for the purposes of the standard selection questions if the potential supplier is relying on the technical and professional ability and/or the economic and financial standing of the organisation to meet the selection criteria in part 3.”
  • This clarification is to be welcomed, as any organisation being relied on must complete self-declarations under Part 1 and Part 2 of the SSQ.
• The New PPN provides clarity for contracting authorities on seeking information from groups of suppliers. The Old PPN placed the responsibility solely on the lead supplier of a group to complete Part 3 of the SSQ. The New PPN provides greater leniency and the approach that may be taken by contracting authorities is now set out as follows:

1. Contracting authorities may ask all members of the group to provide information in Part 3 – the lead supplier would then usually complete Part 3 on behalf of all suppliers in the group;
2. Alternatively contracting authorities may ask all members of the group to complete their own Part 3 – if this is the case, the contracting authority must make it clear in the procurement documents that it requires each member of the group to complete Part 3 individually and how their scores will be weighted and combined.

Introduction of new questions, checks and requirements

• Amendments to financial questions and checks include:
  • Contracting authorities can allow suppliers to rely on the financial standing of a group, parent or fellow consortium member (provided there is appropriate security provided) if the supplier itself does not meet minimum financial requirements;
  • Introducing a requirement on central government to use the Contract Tiering Tool;
  • Central government can ask for information in the questionnaire and make their own assessment provided it is in line with The Sourcing Playbook.

• Introduction of health and safety questions include:
  • An optional health and safety question the contracting authority may ask regarding how suppliers manage health and safety;
  • Guidance on how a health and safety policy, and examples of an assessment of how risks are controlled, can help demonstrate capability.

• Introduction of supply chains questions:
  • For central government contracts £5 million and above per annum, the contracting authority may ask suppliers to demonstrate how they will maintain a healthy supply chain.

• Introduction of data protection questions:
  • Contracting authorities using appropriate selection criteria to demonstrate suppliers’ ability to implement measures to comply with GDPR.

• Introduction of additional requirements for modern slavery and clarity on handling responses to questions on the Modern Slavery Act include:
  • Central government authorities should consider whether modern slavery risks apply to the contract using the risk assessment table in the PPN’s guidance. In new procurements identified as at high risk of modern slavery occurring, bidders should detail their supply chain members and submit self-declarations for each of those supply chain members.

• Introduction of questions related to reducing carbon emissions (in accordance with PPN06/21):
  • For central government contracts £5 million and above per annum, contracting authorities may ask potential suppliers to confirm their commitment towards achieving Net Zero by 2050 by providing a Carbon Reduction Plan.

• Introduction of updated payment questions (in accordance with PPN08/21):
  • Central government authorities should apply the PPN when procuring goods and/or services and/or works with an anticipated contract value above £5 million per annum (excluding VAT) which are subject to the Public Contracts Regulations 2015, to assess whether a bidder that intends to use a supply chain to deliver the contract, has effective payment systems in place to ensure the reliability of that supply chain.

• Formatting the Standard Questionnaire template responses to part 2 (exclusion) questions as self-declarations rather than simple yes/no answers.

Potential bidders in Public Contracts should begin to familiarise themselves with the New Procurement Policy Note and can do so here. Our highly regarded Procurement team at Blake Morgan can assist with any queries.