Reg. 57 (PCR 2015)

Exclusion grounds

In: Procure > Clarification and due diligence

Overview

This regulation requires contracting authorities to exclude suppliers from participation in a procurement procedure if they have been convicted of certain specified offences.

In exceptional circumstances, a contracting authority may disregard the mandatory exclusion grounds for overriding reasons relating to the public interest, such as public health or environmental protection.

Contracting authorities also have the discretion to exclude suppliers in other specified circumstances.

If a supplier is found to meet one or more of the exclusion grounds during a procurement procedure, then, depending on whether the exclusion ground is mandatory or discretionary, the supplier must or may be excluded. The duration of exclusion varies depending on the specific circumstances, with a maximum of five years for the mandatory grounds and three years for the discretionary grounds.

Additionally, there are provisions on self-cleaning which allow a supplier to provide evidence of the measures it has taken to demonstrate its reliability, despite the existence of grounds for exclusion. If the contracting authority deems this evidence sufficient, the supplier must not be excluded from the procurement. If the measures are considered to be insufficient, the contracting authority must provide reasons for its decision to exclude the supplier concerned.

Objective at this commercial stage

If a supplier is found to meet one or more of the exclusion grounds during a procurement procedure, i.e. after conclusion of the selection stage, then, depending on whether the exclusion ground is mandatory or discretionary, the supplier must or may be excluded from the process (subject to relevant self-cleaning measures).

Key considerations at this commercial stage

Contracting authorities should:

  • apply the grounds for exclusion throughout the procurement process
  • consider evidence of measures taken by suppliers to demonstrate their reliability despite the presence of one or more grounds for exclusion
  • where the self-cleaning measures provided by a supplier are considered insufficient to demonstrate the supplier’s reliability, give reasons for that decision.

See also in the Procurement Act 2023:

  • Section 57: Meaning of excluded and excludable supplier
  • Section 58: Considering whether a supplier is excluded or excludable
  • Schedule 6: Mandatory exclusion grounds
  • Schedule 7: Discretionary exclusion grounds

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements