PPN 04/21 (PCR 2015)
Applying exclusions in public procurement, managing conflicts of interest and whistleblowing
In: Plan > Strategy and plan
Overview
This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’) in conducting procurement procedures regulated by the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016 and the Concession Contracts Regulations 2016. It is also relevant to the wider public sector such as local authorities and NHS bodies in carrying out procurement for public contracts, utilities and concessions contracts.
This PPN provides guidance on how to apply the grounds for exclusion of suppliers from public procurement procedures.
The guidance accompanying the PPN provides in-scope organisations with relevant information, advice and direction to support activities relating to the application of exclusions in public procurement (Section 1); and the prevention, identification and remedy of conflicts of interest in a commercial context (Section 2). In addition, the Civil Service Code provides a framework for the process to be followed (‘whistleblowing’) by civil servants who are concerned about any perceived wrongdoing in a procurement procedure (Section 3).
Objective at this commercial stage
Appropriate measures should be taken to prevent, identify and remedy conflicts of interests effectively in procurement procedures. Conflicts of interest should be continuously monitored and managed during the commercial lifecycle of the contract.
Measures taken to address any identified conflicts of interest should be documented in writing and included in the procurement report, as required by regulation 84(1)(i) PCR 2015 (reporting and documentation requirements).
Key considerations at this commercial stage
In-scope organisations should:
- take necessary steps and appropriate measures to prevent, identify and remedy potential or actual conflicts of interest arising in the conduct of procurement procedures so as to avoid any distortion of competition and to ensure equal treatment of all bidders and suppliers
- ensure that any measures taken to remedy conflicts of interest are recorded in the procurement report required by regulation 84 PCR 2015
- be aware that certain situations require special attention; such as direct awards, pro-bono work, and employment of civil servants by suppliers or recruitment from suppliers
- ensure an effective framework of procedures and guidance is in place to manage conflicts which may arise in the procurement process; including guidance and training, declarations of interests, conflict identification and resolution, audit and sanctions, and supply-side requirements.
Legal framework
The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):
- Regulation 24: Conflicts of interest
- Regulation 41: Prior involvement of candidates or tenderers
- Regulation 57: Exclusion grounds
- Regulation 59: Single Procurement Document
- Regulation 60: Means of proof
- Regulation 63: Reliance on the capacities of other entities
- Regulation 84: Reporting and documentation requirements
Additional support and guidance
Make sure you:
- read the PPN and any supporting implementation guidance
- seek legal and commercial advice in the context of specific procurements
