Policy note issued on contracting authorities providing references for suppliers

The Crown Commercial Service (CCS) has issued a procurement policy note setting out how commercial staff in contracting authorities can provide references for their suppliers.

The CCS said there was evidence that commercial staff in some contracting authorities believed that as a matter of policy and procedure they were unable to provide references for suppliers. Suppliers had also contacted the Service to ask for clarification.

“References are important for suppliers, especially for SME suppliers seeking to grow their businesses,” the procurement policy note (PPN) noted. “Often a successful contract with the public sector is a valuable potential reference for a small firm, and refusing to provide references can act as a barrier to the growth for business, having a negative impact on the marketplace and the overall economy.”

The PPN’s contents apply to all central government departments including their executive agencies and non departmental public bodies (‘In-Scope Organisations’). It said:

• Recommended policy was to accept requests for references, especially if the supplier had performed well and/or had exceeded expectations;
• There was no legal impediment to providing references but any opinions offered must be backed by contemporaneous records. “For example if commenting on supplier performance, such evidence might include the achievement (or not) of delivery milestones or performance against KPIs. Subjective assessments, for example of customer satisfaction, suppliers’ performance, aptitude, helpfulness, cultural fit with the authority, etc. should be avoided”;
• Before giving a reference it should be established whether the request was being made pursuant to the policy on taking account of bidders’ past performance set out in PPN 09/12. “If this is the case then ‘In Scope Organisations’ must follow the procedures set out in PPN 09/12 with regard to providing certificates of performance”;
• References should normally be in support of a specific contract and In-Scope Organisations should avoid providing ‘open’ references – “i.e. a general statement about a supplier not related to any specific contract”;
• Only staff who are formally authorised to speak for the contracting authority should provide references. “Where necessary feedback should be sought from contract managers and end-users on the supplier’s performance”;
• References should normally be given in writing and copies should be kept; “where references are given through a telephone call or a meeting, a basic record should be made of who was on the call or attended the meeting.”

A copy of the PPN can be viewed here.