Reg. 63 (PCR 2015)

Reliance on the capacities of other entities

In: Procure > Contract award and implementation

Overview

This Regulation allows suppliers to rely on the capacities of other entities when bidding for a particular contract, in order to meet the contracting authority’s requirements in relation to economic and financial standing and technical and professional ability, regardless of the legal relationship between them.

Where a supplier seeks to rely on the capacities of other entities, it must prove to the contracting authority that the necessary resources will be available, e.g. through a commitment from those entities.

The contracting authority must also verify whether the relied-upon entities meet the relevant selection criteria and if there are any grounds for exclusion, in which case there may be a requirement to replace the relied-upon entity.

In certain circumstances, a contracting authority may require that specific critical tasks be performed directly by the supplier bidding for the contract.

Objective at this commercial stage

Contracting authorities may require the supplier and the relied upon entities to be jointly liable for the execution of the contract.

Key considerations at this commercial stage

Contracting authorities should:

  • consider whether it would be appropriate to require the supplier and the entities relied upon to be made jointly liable for the execution of the contract.

See also in the Procurement Act 2023:

  • Section 22(8) and section 22 (9): Conditions of participation

Additional support and guidance

Make sure you:

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