Contracting authorities warned against using onerous practices in procurement
The Government has issued a procurement policy note (PPN) setting out how central government and related procurers can avoid using onerous practices in procurement and contracting activity.
The note, issued by the Crown Commercial Service and the Cabinet Office, says: “Some suppliers are still reporting procurements being conducted in ways that result in disproportionate or inappropriate risk transfer between buyers and suppliers.
“Unnecessarily onerous requirements are not best practice and, while not commonplace, can stifle innovation and lead to increased costs for both parties.”
The note, which can be viewed here, says in-scope organisations should conduct their public procurement and contracting activity in line with published guidance and best practice. This includes:
- Conducting effective pre-market engagement
- Ensuring accurate and reliable data;
- Awarding contracts on the basis of value for money;
- Putting in place appropriate mechanisms for identifying and managing risks;
- Using the guidance developed to support the Model Services Contract, to establish limits of liability in contracts;
- Adopting a collaborative approach to managing change in contract delivery.
The PPN and associated guidance applies to all central government departments, their executive agencies and non-departmental public bodies (“in-scope organisations”). They are expected to apply the provisions with immediate effect.
