Procurement in a Nutshell – Immediate changes: Procurement Policy Notes
24th March, 2020
The Government has produced and published two new Procurement Policy Notes as a direct result of the ever changing COVID-19 environment.
The purpose of PPN 01/20 is to ensure that contracting authorities are able to procure goods, services and works with extreme urgency, to allow them to respond to the pandemic efficiently.
PPN 02/20 focuses predominantly on the supplier to assist in keeping supply chains open and ensuring that suppliers are kept financially sound during these unpredictable times.
It is essential for contracting authorities to ensure that suppliers are in a position to resume normal contract delivery once the pandemic is over.
Both of the PPNs are effective immediately and apply to the following Contracting Authorities:
- Central Government Departments
- Executive agencies
- Non-departmental public bodies
- Local authorities
- NHS bodies
- The wider public sector
PPN 01/20: Responding to COVID-19
This PPN provides guidance for the following circumstances:
- Direct award due to extreme urgency (regulations 32(2)(c)) (click here to read our recent article regarding regulation 32)
- Direct award due to an absence of competition or protection of exclusive rights
- Call off from an existing framework agreement or dynamic purchasing system
- Call for competition using a standard procedure with accelerated timescales
- Extending or modifying a contract during its term
PPN 02/20: Supplier relief due to COVID-19
This PPN provides guidance for the following circumstances:
- Urgent reviews of contract portfolios and to update suppliers if they believe they are at risk
- Put in place appropriate payment measure to support supplier cash flow
- Where contract payments are based on ‘payment by results’ make payments based on previous invoices
- Ask suppliers to act on a ‘open book’ basis and make cost data available to the contracting authority during this period
- Ensure invoices submitted by suppliers are paid immediately on receipt
How can we help?
If you require any advice regarding current or perspective procurements, or if you would like someone to explain the impact of the two new PPNs on your organisation, please do not hesitate to contact a member of our team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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