While we continue to await the outcome of the Green Paper consultation on the proposed changes in structure to the procurement regime, and the extent of the Provider Selection Regime consultation (affecting only healthcare services), there has been some activity on the "Public Procurement Note (PPN) guidance front in readiness which is set out below:

1. Introduction of GPAR 2021 - minor changes

Be aware that the Public Procurement (Agreement on Government Procurement) (Amendment) Regulations 2021 (GPAR 2021) came into force on 11th June 2021.

GPAR 2021 are necessary to acknowledge that the UK has acceded to the Agreement on Government Procurement (GPA) in its own right as a signatory to the World Trade Organisation.

They make minor contextual amendments to the Public Contracts Regulations 2015, the Concession Contracts Regulations 2016 and the Utilities Contracts Regulations 2016 to take into account this accession, but in reality make no significant changes to the current procurement rules. Their primary effect is to update the obligations upon UK contracting authorities in relation to international agreements (since the UK withdrew from the EU on 31st December 2020).

2. National Procurement Policy Statement - PPN 05/21

This PPN published in June 2021 sets out information and guidance for contracting authorities on the National Procurement Policy Statement (NPPS) which will require contracting authorities to have regard to national strategic priorities for public procurement. It applies to all contracting authorities.

All contracting authorities should consider the following national priority outcomes alongside any additional local priorities in their procurement activities:

  • Creating new businesses, new jobs and new skills;
  • Tackling climate change and reducing waste;
  • Improving supplier diversity, innovation and resilience.

The PPN sets out actions contracting authorities must take in preparation for the forthcoming major legislative reforms for public procurement (arising from the recent Green Paper), in particular:

  • All contracting authorities should consider whether they have the right policies and processes in place to manage the key stages of commercial delivery identified in this statement where they are relevant to their procurement portfolio
  • All contracting authorities should consider whether they have the right organisational capability and capacity with regard to the procurement skills and resources required to deliver value for money
  • Contracting authorities should consider benchmarking themselves annually against relevant commercial and procurement operating standards and other comparable organisations.

The Government intends to bring forward legislation when Parliamentary time allows to ensure that:

  • All contracting authorities are required to have regard to the National Procurement Policy Statement when undertaking procurements;
  • Contracting authorities with an annual spend of £200m or more are required from April 2022 to publish procurement pipelines and to benchmark their procurement capability;
  • Contracting authorities with an annual spend of £100m or more are required from April 2023 to publish procurement pipelines and to benchmark their procurement capability.

View the PPN 05/21.

3. Taking account of Carbon Reduction Plans - PPN 06/21

The UK Government amended the Climate Change Act 20081 in 2019 by introducing a target of at least a 100% reduction in the net UK carbon account (i.e. reduction of greenhouse gas emissions2 , compared to 1990 levels) by 2050. This is otherwise known as the 'Net Zero' target. This PPN sets out how to take account of suppliers' Net Zero Carbon Reduction Plans in the procurement of major Government contracts.

This PPN applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies. These organisations should take action to apply this PPN when procuring goods and/or services and/or works with an anticipated contract value above £5 million per annum3 (excluding VAT) which are subject to the Public Contracts Regulations 2015 save where it would not be related and proportionate to the contract. They must apply the provisions of this PPN to relevant procurements advertised on or after 30 September 2021.

As part of assessing a supplier's technical and professional ability, organisations should include, as a selection criterion, a requirement for bidding suppliers to provide a Carbon Reduction Plan (using the template at Annex A) confirming the supplier's commitment to achieving Net Zero by 2050 in the UK, and setting out the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract. Carbon Reduction Plans must meet the required standard as set out by the supporting guidance to this PPN.

Environmental considerations and carbon reduction will be a factor in most, if not all, contracts and therefore it is expected that in the majority of cases, the application of this PPN will be relevant. This may include, but is not limited to:

  • Contracts which have a direct impact on the environment in the delivery of the contract;
  • Contracts which require the use of buildings by staff engaged in the delivery of the contract;
  • Contracts which require the transportation of goods or people used in the delivery of the contract;
  • Contracts which require the use of natural resources in the delivery of the contract.

View the PPN 06/21.

4. Social Value - remember it is now mandatory to evaluate social value - PPN 06/20

Bear in mind that PPN 06/20 effectively mandated that central government authorities (of which NHS BSA is one) ensure that every new procurement they undertake evaluates (rather than just considers) social value and that from 1st January 2021 the social model themes and outcomes should be applied. A minimum weighting of 10% of the total score for social value should be applied in such procurements.

The social model is seen as a means by which defining "social value" becomes standardised, but is also a means for the Government to apply its commissioning to support key social outcomes.

View the PPN 06/20.

5. Refresh on handling exclusions from procurements, complying with conflict of interest requirements and handling whistleblowing - PPN 04/21

A new PPN 04/21 has been published, which replaces the existing guidance set out in PPN 01/19, dealing with providing guidance around using exclusions in public procurement, managing conflicts of interest and whistleblowing. This new guidance takes effect immediately.

The guidance refreshes our understanding in relation to the following subjects:

  • how to exercise mandatory or discretionary exclusion rights as set out in Reg 57 of the Public Contracts Regulations 2015 (as amended);
  • how to prevent, identify and remedy conflicts of interest as set out in Reg 24 of the Public Contracts Regulations 2015 (as amended); and
  • how whistleblowing by Civil Servants and employees in the wider public sector should be handled.

View the PPN 04/21 and the accompanying guidance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.