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 must verify whether the entities on whose capacity the supplier intends to rely fulfil the relevant selection criteria and whether there are grounds for exclusion.
Key considerations at this commercial stage
Contracting authorities should:
- ensure that the relied upon entity satisfies the relevant selection requirements, whether in relation to economic and financial standing or technical and professional ability
- verify whether the entities on whose capacity the supplier intends to rely, fulfil the relevant selection criteria and whether there are any grounds for exclusion
- ensure that they require the supplier to replace an entity which fails to meet a relevant selection criterion, or is subject to mandatory grounds for exclusion
- consider whether it would be appropriate to require a supplier to substitute an entity in respect of which there are discretionary grounds for exclusion.
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
