Guidance

Annex A - Guidance on the Selection Stage Process, including Standard Selection Questions (PCR 2015) (HTML)

Published 27 March 2024

Introduction

1. This document contains statutory guidance on the process of supplier selection and standard selection questions. If your organisation is in-scope, you are required to apply this guidance when undertaking the supplier selection process in relevant procurements.

2. The updated standard selection questions and any changes highlighted are to be in use at the latest by 3 months after the publication date of this PPN. This timescale is to allow for time for the revised SQ to be incorporated into procurement processes and to allow for e-procurement tools to be amended.

Background

3. Supplier selection is a key stage in public procurement, where you must gather information on, and make assessments of, potential suppliers’ technical and professional abilities, economic and financial standing and whether any of the exclusion grounds apply.

4. The standard selection questions ask potential suppliers to self-declare their status against the exclusion grounds, and provide preliminary evidence of their suitability to pursue a professional activity, economic and financial standing, and technical and professional ability. Usually you will only ask for, and check, further evidence relating to the status of the winning supplier. This reduces the burden on unsuccessful suppliers providing evidence and, on your organisation undertaking those checks.

5. The standard selection questions are structured in 3 separate parts:

• Part 1 - covers basic information about the potential supplier, such as the contact details, professional body memberships, details of parent companies, group bidding and so on.
• Part 2 - constitutes self-declarations of whether (or not) any of the exclusion grounds apply.
• Part 3 asks for evidence and self-declarations of economic and financial standing and for self-declarations relating to technical and professional ability.

6. This guidance covers:

• a summary of the key points;
• more detailed advice on particular aspects, including:
  • general guidance on scope, format, and deviations; and
  • guidance on particular subsections of the standard selection questions;
• a list of standard selection questions;
• a supplier questionnaire template (the “SQ template”); and
• a list of exclusion grounds.

Summary of Key Points

7. This guidance is to be followed for above threshold procurements carried out in accordance with Part 2 of the Public Contracts Regulations 2015 (PCR 2015). Regulation 107 of the PCR 2015 provides for statutory guidance on the selection stage of a procurement. Regulation 59 sets out the use, content and form of the SPD. The SPD replaces the ESPD (following EU Exit) and is the selection questionnaire template at Annex C.

8. Potential suppliers must be told how they can access the selection questions and submit their responses in the procurement documents.

9. The questions can be rephrased to fit with the style and format of your e-procurement system provided you are asking for the same information from potential suppliers as that listed in the standard selection questions.

10. As a minimum the following are required:

• Information concerning the procurement procedure and the contracting authority or contracting entity that allows the procedure to be unequivocally identified (see ‘Notes for Completion’ in Annex C).
• Part 1 and 2 questions must be asked, and declarations must be received, for all types of procurement procedures, including the open procedure.
• If any of the exclusion grounds apply (other than in respect of non-payment of taxes), an explanation from the potential supplier on how the measures they have taken demonstrate their reliability is requested. These measures can include paying compensation, actively collaborating with investigating authorities and taking measures to prevent further occurrences (this is called ‘self-cleaning’).
• Completed part 3 of the SQ, declarations and evidence of meeting the economic and financial standing selection criteria and declarations in relation to the technical and professional ability selection criteria.
• Responses to the questions in part 1 and part 2 of the SQ are required of all organisations which form part of the potential supplier’s bidding group/consortium, as well as any subcontractors that the potential supplier relies on to meet the selection criteria.

11. A bidder is not required to produce supporting documentary evidence or certificates until specifically requested by you. You must request this evidence from the successful supplier before awarding the contract, as part of your due diligence process. If the successful supplier is unable to provide this evidence it should not be awarded the contract.

12. However, you can ask for evidence from any potential supplier at an earlier stage if it is needed to ensure proper conduct of the procedure. This is likely to be appropriate:

• for economic and financial standing where a full assessment can only be undertaken where evidence is provided;
• in the competitive dialogue procedure and competitive procedure with negotiation. The burden of taking a potential supplier through dialogue/negotiation only to reject them at the final stage (once evidence is provided) may be disproportionate;
• in the open procedure, where timescales are necessarily short and it is appropriate to review evidence concerning exclusion and selection in parallel with tender evaluation.

13. The selection questions marked as mandatory for part 1 and part 2 must not be omitted. You should not deviate from the supplier selection questions in part 3; if you do then you must report any deviations as per the process outlined at paragraphs 42-47 in this guidance.

14. For works contracts, including the procurement of mixed contracts that include supplies and services, contracting authorities should use the Common Assessment Standard (CAS)^{[footnote 1]}, in place of the standard SQ template in pre-qualification of bidders. However, it will be for individual contracting authorities to ensure the questions used are relevant and proportionate to the contract being procured, ensure equivalent standards are permissible and a level playing field for all types of suppliers.

15. General queries on the selection questionnaire should be addressed to the helpdesk (hosted by the Crown Commercial Service) at [email protected]. Deviations should be reported to [email protected] (as described in paragraphs 42-47).

General rules

16. Declarations relating to the exclusion grounds and relevant selection criteria have to be provided with bids in open procedures. For all other procedures they must be provided with requests for participation. However individual call-off contracts placed via frameworks do not require completed declarations unless this is required under the terms of the framework agreement.

17. In a Dynamic Purchasing System (DPS), self-declarations relating to the exclusion grounds and relevant selection criteria must form part of the criteria for entry onto the DPS. You can ask suppliers to update their responses to the standard selection questions at any time during the life of the DPS. You may use questions from part 3 of the standard selection questions as a guide in developing appropriate and proportionate selection questions for a DPS.

18. The procurement documents must provide details on how the self-declarations relating to the exclusion grounds are to be accessed, list the required selection questions and provide the selection criteria together with any requirements for participation, and tell potential suppliers how to submit responses to the three parts of the SQ.

19. Currently there are two ways for a potential supplier to access the exclusion grounds (part 2 of the SQ). The best route for contracting authorities to select depends on the facilities available to them:

1. E-procurement system. The self-declarations on the exclusion grounds can be built into e-procurement systems that allow the answers to be reused and exchanged between e-procurement systems. You can reword the questions provided the required responses are the same as required by the SQ. If this option is selected, the procurement documents simply provide the link to the e-procurement system. The e-procurement system must offer unrestricted and full direct access free of charge to all potential suppliers.
2. Using the SQ template. Potential suppliers are asked to complete the SQ template and submit an electronic copy. The SQ template can be found at Annex C of this guidance. The exclusion questions provided in part 2 of the template should be supplemented with the relevant standard supplier selection questions listed in part 3. An alternative way of doing this is to ask the selection questions separately within the procurement documentation. Guidance for the use of standard supplier selection questions is provided below.

Guidance on Part 1 (General Information) and Part 2 (Exclusion Grounds (PDF, 108KB)^{[footnote 2]} - Key Principles

20. It is mandatory for a potential supplier to complete one of the following for all relevant procurements:

• the formal declarations relating to the exclusion grounds listed in either the relevant questions in the e-procurement platform, or part 1 and part 2 of the standard SQ template; or
• for works contracts including the procurement of mixed contracts that include supplies and services, the relevant questions in the CAS, that deal with the same exclusions as are covered by the standard SQ template.

21. Where you are using the selection questions or the SQ template, part 1 and part 2 of the selection questions must be completed by all organisations that form part of the potential supplier’s bidding group/consortium.

22. The completed part 1 and part 2 provides the formal declaration relating to the exclusion grounds, and are therefore required for each organisation that forms part of the supplier’s bidding group/consortium (including where the potential supplier is a group of suppliers, including joint ventures and partnerships created (or to be created) for the purpose of the contract), as well as each subcontractor the potential supplier relies on to meet the selection criteria.

23. Where a potential supplier is relying on another member of its corporate group or a subcontractor to meet the selection criteria (see paragraph 30 headed ‘What is meant by ‘rely on’ an organisation?’), that entity should be treated as being part of the potential supplier’s group/consortium and must complete parts 1 and 2. These requirements must be made clear in the procurement documents.

24. As a result of the UK’s exit from the EU the mandatory exclusion for fraud affecting the European Communities’ financial interests as defined by Article 1 of the convention on the protection of the financial interests of the European Communities has been omitted for procurement launched after 11pm on 31st December 2020. However contracting authorities may continue to exclude a supplier under discretionary exclusion grounds, including grave professional misconduct. This may include convictions for offences relating to fraud where the circumstances leading to the conviction constitute evidence of such a ground being met.

25. For works contracts (including the procurement of mixed contracts which include supplies and services but which, due to their works content, are subject to the Construction (Design and Management) Regulations 2015) contracting authorities should use questions from the CAS in accordance with paragraph 14.

26. Potential suppliers must complete the self-declarations in relation to the mandatory exclusion grounds on behalf of all relevant persons and entities, in accordance with PCR 2015 regulation 57(2). Each potential supplier must decide which entities and persons are relevant.

27. There are two categories of persons and entities that are relevant:

a)    Members of the potential supplier’s administrative, management or supervisory board. This category will typically cover company directors and members of an executive board.

b)    Entities and persons who have powers of representation, decision or control in the supplier. This could be:

1. entities or persons with a 25% or more shareholding;
2. entities or persons with less than 25% shareholding who have the relevant powers depending on their particular rights;
3. a potential supplier’s ultimate parent company;
4. intermediate parent companies of the potential supplier that do not have a direct shareholding;
5. directors or members of an executive board of their immediate parent company (for example, in the case of a Special Purpose Vehicle set up specifically to bid for a particular contract);
6. holders of mortgages or liens.

It is not necessary for potential suppliers to list which entities and persons they think are relevant. However, they must be satisfied that the declaration is made in respect of all of those that are relevant. 

28. When considering bids, you should note it is possible to decline to consider bids from Russian or Belarusian suppliers in certain circumstances, as set out in Procurement Policy Note 01/22. For suppliers who are constituted or organised under the law of Russia or Belarus or their ‘Persons of Significant Control’ information states Russia or Belarus as the place of residency, the supplier’s bid can be discounted as long as the supplier or any member of their supply chain they rely on to deliver the contract:

• is not registered in the UK or in a country the UK has a relevant international agreement with reciprocal rights of access to public procurement; and/or
• does not have significant business operations in the UK or in a country the UK has a relevant international agreement with reciprocal rights of access to public procurement.

Subcontractors

29. Part 1 asks for details of all subcontractors which have been identified by the potential supplier at this stage of the procurement process. Where a subcontractor has been identified in response to this question, any resulting subcontract entered into with that subcontractor for that part of the works, services or supplies identified in response to that question will not be subject to the requirement to advertise.

What is meant by ‘rely on’ an organisation?

30. PCR 2015 regulation 63^{[footnote 3]} introduces the concept of a potential supplier relying on the capacities of other organisations 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.

Modern Slavery Act 2015^{[footnote 4]}

31. Commercial organisations in any sector that supply goods or services, carry on a business or part of a business in the UK, and have an annual turnover of at least £36 million (“relevant commercial organisations”) are required to prepare a slavery and human trafficking statement by Section 54 of the Modern Slavery Act 2015^{[footnote 5]}. Section 54 sets out various requirements relating to the content, format and publication of the statement. The standard selection questions and SQ template ask potential suppliers who are subject to this requirement to confirm that they have published a statement and to confirm that it meets the requirements of Section 54.

32. You should consider whether the response of a potential supplier to these questions gives rise to a discretionary exclusion ground relating to breach of applicable obligations under social and labour laws. Failure to publish a statement or failure to comply with the requirements of Section 54 is likely to give rise to such a discretionary exclusion ground. If you conclude that the discretionary exclusion ground applies, the potential supplier should be excluded unless it can provide sufficient self-cleaning evidence.

Guidance on Part 3 of the Standard Selection Questionnaire and Qualitative Selection – Key Principles.

33. You must consider this guidance for relevant procurements when selecting potential suppliers. This guidance is accompanied by the standard SQ template and selection questions.

34. You should use questions from the CAS for works contracts (including the procurement of mixed contracts that include supplies and services) in accordance with paragraph 14.

35. The section of the guidance covering standard supplier selection questions (part 3) and the use of the CAS, does not apply to the procurement of health care services for the purposes of the NHS within the meaning and scope of the National Health Service (Procurement, Patient Choice and Competition) (No. 2) Regulations 2013^{[footnote 6]}.

Below threshold procurements

36. You must not include a pre-qualification stage in any procurement (for supplies, services or works) that has a value below the relevant threshold for supplies and services. The threshold for using a pre-qualification stage for works procurements (“works SQ threshold”) is the same as for supplies and services procurements. In below threshold procurements, questions may be asked to assess the suitability, capability, legal status, and financial standing of a potential supplier, provided that the questions are relevant and proportionate. You may use the standard selection questions (or, for works contracts, the CAS questions in accordance with paragraph 14) as a guide in developing appropriate and proportionate questions as part of a one-stage procurement process.

37. For works contracts valued above the supplies and services threshold (including where they are below the works threshold) you may include a pre-qualification stage (using questions from the CAS) in accordance with paragraph 14).

Use of selection questions

38. The questions included in part 3 of the standard selection questions should be adopted across all relevant procurements where it is relevant and proportionate to the contract to do so. You do not have to use all the questions.

39. The questions should be used in line with the relevant procurement procedure, and used:

• as part of the tender pack to test that a potential supplier meets minimum levels of suitability (i.e., fulfilment of selection criteria) when using the open procedure,
• to pre-qualify suppliers to be invited to tender when using the restricted procedure,
• to pre-qualify suppliers to submit an initial tender under the competitive procedure with negotiation,
• to pre-qualify suppliers to participate in a competitive dialogue, innovation partnership procedure or Dynamic Purchasing System (DPS).

40. If the standard selection questions are presented as a separate document, you should ensure that appropriate declarations are included and a signature obtained.

41. You should use questions from the CAS for works contracts (including the procurement of mixed contracts that include supplies and services) in accordance with paragraph 14.

Reportable deviations

42. No deletions or additions can be made to the questions marked as mandatory in part 1 and part 2 of the standard selection questions or the SQ template.

43. You should not deviate from the questions set out in part 3 of the standard questions and the SQ template for supplies and services procurements. However, if you do deviate from this guidance, you must report this to [email protected]  (This is an inbox that is monitored for policy-making purposes).

44. You must report the following deviations:

• changes to the wording of the standard questions and instructions,
• additional questions that are included which are not specific to the individual procurement.

45. The report (for information purposes only, and not for approval) should include:

• a covering letter or email explaining the reasons for any deviations, demonstrating that they are relevant, proportionate and linked to the requirements of the contract and contract delivery;
• confirmation that the deviations have been approved by the Head of Procurement or equivalent in the organisation; and
• a copy of the questions template or supplier selection process that clearly shows the deviations. This could include a document summarising the deviations.

46. You do not need to report:

• project-specific questions developed in line with this guidance;
• amendments to make the questions compatible with e-procurement systems;
• standard questions which you have decided to omit.

47. You are only required to report once to explain deviations.  A report is not required for each procurement. If you make further changes those deviations should be sent to [email protected].

48. General questions on the Selection Questionnaire should be sent to the Helpdesk (telephone 0345 410 2222, email [email protected].

Self-declarations and evidence.

49. Part 2 requires self-declarations from potential suppliers in relation to the exclusion grounds. Part 3 asks for some information from potential suppliers in relation to the selection criteria, but also allows for supporting documentary evidence to be provided at a later date.

50. Generally, only the winning supplier (and any organisations relied upon to meet the selection criteria) should be required to submit supporting documentary evidence in relation to exclusions and selection criteria. This reduces the need for potential suppliers to submit supporting documents every time they wish to bid for a public contract.

51. If the winning supplier fails to provide the required evidence within timeframes you set, or the evidence demonstrates that the selection criteria are not met, the award of the contract should not proceed. You may then choose to amend the contract award decision and award to the second-placed supplier who has not been excluded on the basis of the exclusion grounds or the selection criteria, provided that they have submitted a satisfactory bid. Alternatively, the procurement process may be terminated. You should take legal advice, where appropriate.

52. You can require supporting documentary evidence from any supplier at any stage if it is necessary to ensure proper conduct of the procurement procedure. In a two-stage procedure, it might be necessary to ask for supporting documentary evidence in relation to exclusions and the selection criteria before the Award stage. When considering an application to join a Dynamic Purchasing System the timeframes involved may mean that you will wish to see evidence along with the request to join. You should only ask for evidence that is proportionate and relevant to the procurement. The approach should be clearly set out in the procurement documents.

Scoring

53. You should decide upon your own selection criteria and scoring system for assessing whether suppliers meet the selection criteria, using their answers to questions in part 3 of the SQ. The selection criteria must be relevant and proportionate to the contract and both the selection criteria and scoring system must be included in the procurement documents. They must comply with the principles of transparency, non-discrimination and equal treatment, including in relation to the treatment of Small and Medium-sized Enterprises (SMEs).

Group of potential suppliers

54. If the potential supplier is bidding on behalf of a group/consortium, or intends to use subcontractors, there may be different actions required for completion of part 3 of the standard questions compared to part 1 and part 2. The response to part 1 should make it clear who the lead member of the group/consortium is, and who will be contractually responsible for delivery of the contract. Where the group/consortium is proposing to create a separate legal entity, such as a Special Purpose Vehicle (SPV), in part 1, they should provide details of the actual or proposed percentage shareholding of the constituent members within the new legal entity. They should also provide the name for the new entity and details of its legal and operational structure. An SPV is a legal entity that is formed to perform a specific contract.

55. All members of the group/consortium may be required to provide the information in part 3 of the selection questions, as part of a single composite response (unless the question specifically directs otherwise). Where this is the case, the group/consortium lead member would normally complete all of the questions in part 3 on behalf of the group/consortium and/or any subcontractors, referring to the economic and financial standing and/or technical and professional ability of group/consortium members and/or any subcontractors where appropriate.

56. Alternatively, you may choose to ask all members of a group/consortium or subcontractors relied on to meet the selection criteria to complete their own section of part 3, as well as part 1 and part 2, so selection checks can be undertaken on them. You must make it clear whether you require each member of the group/consortium and each subcontractor to meet the selection criteria or whether and how their scores will be weighted and combined. This should be clearly explained in the procurement documents.

57. Consortium and subcontracting arrangements may be subject to change, and you should make it clear that any updates to these arrangements or any other bidding model should be provided to you during the procurement process. This is to allow you to request responses to part 1 and part 2 of the standard selection questions for any new organisation, including self-declarations relating to the exclusion grounds, and updated responses to part 3 of the standard selection questions to carry out a further assessment of the selection criteria. You should also make it clear that you reserve the right to deselect a potential supplier or a group/consortium prior to any award of contract, based on an assessment of the updated information.

Guidance on Supplier Selection Questions

Economic and financial standing (EFS)

58. You should clearly state any minimum EFS requirements and selection criteria. You should also describe the methodology for assessing EFS clearly. Any minimum requirements should be proportionate.

59. The financial assessment method used depends on the requirement. You do not have to use every question in this section - only those that are relevant and proportionate. Where you consider the list of permitted evidence does not enable you to make an assessment of EFS, you may ask for other evidence to be provided (in accordance with reg 60(8) PCR 2015), but this must be relevant to the subject matter of the contract and proportionate, and should be reported as a deviation. You should note that small companies^{[footnote 7]} only need to file abbreviated accounts with Companies House but may have more detailed accounts for shareholders and HMRC.

60. If a supplier does not itself meet minimum financial requirements, you can allow them to rely on the financial standing of a group or parent company or fellow consortium member if they are willing to provide appropriate security or support, for example in the form of a parent company guarantee.

61. For central government authorities, prior to commencing a procurement, you should determine the categorisation of the potential contract using the Contract Tiering Tool. This should determine the level of EFS required from bidders and any associated requirement for financial assessment subject-matter expertise. The Contract Tiering Tool allows for straightforward and consistent categorisation of contracts between ‘Gold’ (most critical), ‘Silver’ and ‘Bronze’ (least critical) contracts. You may choose to supplement the SQ with the Financial Viability and Risk Assessment Tool (FVRS (XLSX, 794KB)) to determine EFS, and ask for potential bidders to complete the FVRS directly, which will calculate the risk assessment based on the data input. Or you can ask for information in the SQ and make your own assessment, provided this is in line with the Assessing and Monitoring the Economic and Financial Standing (EFS) (PDF, 603KB) guidance in the Playbooks. In all cases you should ensure relevance and proportionality.

Technical and Professional Ability

Past Performance

62. You may evaluate the past performance of a potential supplier in order to assess whether they have a sufficient level of technical and professional ability through experience demonstrated by examples of and suitable references from past contracts.

63. You may request details of contract examples or references from the public and/or private sectors. The number and type requested should be relevant and proportionate. The selection questions ask for three examples. Contracts for supplies or services must have been performed during the past three years. Contracts for works must have been performed during the past five years. In both cases, older examples can be taken into account only where necessary to ensure an adequate level of competition. The selection criteria for evaluating the responses from suppliers, and the scoring methodology, should not be discriminatory or disproportionate, including towards smaller businesses.

64. To assess whether a potential supplier has the required level of technical and professional ability, use the relevant selection questions or the template provided in sections 6 and 7 (Annex C). The standard selection questions ask for information that can then be used to assess whether the selection criteria are met. Potential suppliers should be asked to submit details of contracts where the named customer contact is prepared to provide written evidence to confirm the accuracy of the information provided. Customer references should be factual. Supporting documentary evidence should be requested from the winning supplier to verify the declarations.

65. You may ask the lead member to provide a relevant example where one or more group/consortium members have delivered similar requirements. If this is not possible (for example a consortium is newly formed or an SPV will be created for the contract) up to three separate examples should be provided from the principal members of the group. This approach will help you establish that the new entity demonstrates the required level of experience.

Subcontractors and supply chains

66. Where a potential supplier is proposing to subcontract a portion of the contract, they should provide a relevant example where one or more of the essential subcontractors have delivered similar requirements (separate examples are not required from each subcontractor).

67. For central government contracts £5m and above per annum, you may ask potential suppliers to demonstrate how they will maintain a healthy supply chain, including paying subcontractors promptly (see PPN 10/23), using the payment questions. This includes the supply chain management and tracking systems that the economic operator will be able to apply when performing the contract. See the paragraph on questions to be used primarily by central government organisations below.

Additional questions

Project Specific Questions

68. Further project-specific questions can be asked. They must relate to the potential supplier’s economic and financial standing or technical and professional ability and they must be relevant and proportionate to the contract. You should refer to the PCR 2015^{[footnote 8]} for relevant restrictions, permitted evidence and supporting documents.

Insurance

69. You should allow potential suppliers to self-certify that they have, or will have in place, any required insurance in the event that they are awarded the contract. It is not appropriate at the selection stage to insist on evidence that cover already exists. You should specify the level of cover required on a case-by-case basis. This should be proportionate and reflective of the nature of the work and the risk involved. Any reason for requiring insurance above that required by law should be justifiable.

Health and Safety at work

70. Questions about compliance with environmental law obligations (which include health and safety legislation) are included in part 2. If you wish to include a selection criterion relating to suppliers’ technical and professional ability in managing health and safety in their organisation and in the supply chain, you may include the optional Health and Safety question (question 7.3).

71. The type and level of relevant experience and capability for managing health and safety risks may vary, depending on the risks, size and complexity of the requirement. Guidance from the Health and Safety Executive describes what is appropriate and proportionate in particular circumstances. Follow this link for guidance on the Health and Safety Executive’s website.

72. A health and safety policy and examples of an assessment of how risks are controlled can help demonstrate capability, if effectively put into practice. You should note that a company with fewer than five employees is not legally required to write down a statement of health and safety policy or record the significant findings of any risk assessment and should not be discriminated against in the assessment of technical and professional ability for not having these.

Data Protection Legislation

73. In relevant procurements for contracts involving processing personal data, you should use appropriate selection criteria relating to potential suppliers’ technical and professional ability in implementing the appropriate technical and organisational measures to comply with UK GDPR and to ensure the protection of the rights of data subjects. Where this is linked to the subject-matter of the contract and proportionate, selection criteria should be used to assess potential suppliers’ human and technical resources to perform the contract to the appropriate standard and potential suppliers should be asked to provide proof by reference to the technical facilities and measures they have in place. (See question 7.2).

Questions to be used primarily by central government organisations

PPN 10/23: Taking account of a bidder’s approach to payment in the procurement of major contracts

74. This PPN sets out how payment approaches can be taken into account in the procurement of major Government contracts. Where relevant and proportionate, ^{[footnote 9]}central government authorities must apply this 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 PCR 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. The PPN applies to framework agreements and dynamic purchasing systems where it is anticipated that the individual value of any contract to be awarded under the framework agreement or dynamic purchasing system is greater than £5 million per annum (excluding VAT).

Procurement Policy Note 04/23: Procuring Steel in Government Contracts

75. For projects/programmes involving a relevant steel procurement,^{[footnote 10]} questions at 7.3 and 7.9 of the SQ should be included (where relevant and proportionate). These questions will enable Contracting Authorities to assess matters relating to the bidder’s ability to manage its supply chain, deliver steel safely and ensure compliance with health and safety legislation.

Procurement Policy Note 06/21 - Taking account of Carbon Reduction Plans in the procurement of major government contracts

76. For central government contracts £5m and above per annum, you may ask potential suppliers to confirm their commitment towards achieving Net Zero by 2050 by providing a Carbon Reduction Plan (PPN 06/21), using the Carbon Reduction questions to ensure the necessary environmental management measures are in place.

Supporting Apprenticeships and Skills through Public Procurement

77. Central government contracts with a full life value of £10 million and above and duration of 12 months and above can be used to support skills development and delivery of the apprenticeship commitment, where it is relevant and proportionate to do so.

Procurement Policy Note 02/23 - Tackling Modern Slavery in Government Supply Chains

78. Central government authorities should consider whether modern slavery risks apply to the contract, using the risk characteristics in PPN 02/23 guidance, to ensure such risks are clearly identified and appropriately managed. 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. This means that a Part 1 and Part 2 declaration will be required from the bidder’s supply chain members for procurements designated as at a high risk of modern slavery occurring. Central government contracting authorities should detail in their specification how far down a supply chain they want to collect this information.

79. How well equipped a bidder is to address modern slavery risks can be assessed under technical and professional ability. Where a bidder intends to use a supply chain to deliver the contract, selection criteria can be used to assess whether they have effective systems in place to ensure the reliability of that supply chain. A supply chain in which modern slavery features is unlikely to be reliable. Central government authorities should include question 7.11 where it is relevant to the subject matter of the contract, proportionate and is non-discriminatory. Where it is considered to be relevant, proportionate and non-discriminatory to ask this question of organisations to which Section 54 of the Modern Slavery Act 2015 applies, in order to ensure equal treatment, organisations which do not carry on business in the UK but which have a turnover of more than £36m should be requested to provide similar statements or documents. The question may be adapted further depending on the nature of the procurement, for example a central government authority may also decide to ask this question of organisations who have a turnover of less than £36m, but only where it is proportionate to do so.

80. In procurements where this selection question is included, contracting authorities should set appropriate selection criteria and methodology by which to assess compliance. This should include reference to the list of information included in the Home Office Slavery and human trafficking in supply chains: guidance for businesses (section 5.2 a-f). Whilst this is a non-exhaustive list, the guidance is clear that this is what statements should aim to include. If all of this information is not included in the bidder’s modern slavery statement (or other statement or documents, where the bidder is not required to produce a modern slavery statement) an explanation should be provided. It will be for central government authorities to consider whether the explanation provided is satisfactory. An example pass/fail selection criterion has been included in PPN 02/23 guidance. A bidder should only fail the selection stage if they do not meet the selection criterion having taken into account their modern slavery statement (or equivalent document) and their reasons for non-compliance and assurances as to future compliance, where applicable.

1. Common Assessment Standard Question Set Version 3.1 (PDF, 756KB) ↩

2. see Annex D ↩

3. The Public Contracts Regulations 2015 ↩

4. For background see Home Office publication (PDF, 1,575kB) ↩

5. Modern Slavery Act 2015 ↩

6. The National Health Service (Procurement, Patient Choice and Competition) (No. 2) Regulations 2013 ↩

7. Companies with two of the following characteristics: 50 or fewer employees; turnover of no more than £10.2 million or assets of no more than £5.1 million ↩

8. Regulations 58-60 of Public Contracts Regulations 2015 ↩

9. Central Government Departments, Executive Agencies and Non-Departmental Public Bodies ↩

10. Applies to all Central Government Departments, Executive Agencies and Non-Departmental Public Bodies when conducting procurements covered by Part 2 of the Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016, the Defence and Security Public Contracts Regulations 2011, and the Concessions Contracts Regulations 2016, where steel is being procured directly or indirectly. ↩