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
The procurement documents should explain how suppliers may rely on third parties in order to satisfy the relevant selection requirements.
Key considerations at this commercial stage
Contracting authorities should:
- ensure that the selection requirements articulate clearly how a contracting authority may rely on third parties in order to demonstrate that these requirements would be satisfied, including how a supplier may demonstrate that it has at its disposal the necessary resources of the relied upon entity
- ensure that the procurement documents articulate clearly and transparently whether certain critical tasks must be performed by the supplier, without allowing for reliance on the capacities of other entities for the performance of these tasks.
Legal framework
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
