Reg. 63 (PCR 2015)

Reliance on the capacities of other entities

In: Procure > Evaluation stage

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

Suppliers may rely on third parties to demonstrate how the contracting authority’s requirements would be met.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure that when a supplier’s bid is evaluated, they take into account that a supplier is entitled to meet the relevant requirements by relying on other entities
  • ensure that when the procurement documents provide that certain critical tasks must be performed by the supplier, the supplier cannot rely on the capacity of other entities for the performance of those tasks.

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
Read the regulation

This applies to