Overview
The PPN applies to central government departments, their executive agencies and non-departmental public bodies, and to best value authorities within the meaning of section 1 of the Local Government Act 1999 (c. 27) and parish councils in England (collectively referred to as ‘in-scope organisations’).
For all new procurements, in-scope organisations can decline to consider (or otherwise exclude from participating in the procurement) bids from suppliers who are constituted or organised under Russian or Belarusian law, or whose 'Persons of Significant Control' information indicates residency in Russia or Belarus, unless the supplier (or any member of their supply chain they rely on to deliver the contract):
- is registered in the UK or in a country the UK has a relevant international agreement with reciprocal rights of access to public procurement, and / or
- has significant business operations in the UK, or in a country the UK has relevant international agreements with reciprocal rights of access to public procurement.
If either of the above criteria apply, the supplier should not be automatically excluded from a new procurement, as the non-discrimination, equal treatment and remedy provisions contained within the Public Contracts Regulations 2015 (PCR 2015) apply.
Objective at this commercial stage
In-scope organisations can decline to consider (or otherwise exclude from participating in the procurement) bids from suppliers who are constituted or organised under Russian or Belarusian law, or whose 'Persons of Significant Control' information indicates residency in Russia or Belarus, unless certain criteria apply.
Key considerations at this commercial stage
In-scope organisations should:
- consider whether to decline (or otherwise exclude from participating in the procurement) bids from suppliers who are constituted or organised under Russian or Belarusian law, or whose 'Persons of Significant Control' information indicates Russian or Belarusian residency
- take account of the fact that where the supplier (or any member of their supply chain they rely on to deliver the contract) meets certain criteria as outlined in the PPN, they should not be automatically excluded from the procurement, as the non-discrimination, equal treatment and remedy provisions contained within PCR 2015 apply
- consider the specific circumstances and take legal advice where appropriate, where the supplier has a more complex group structure involving parent or group companies based or operating in the UK, or in a country the UK has a relevant international agreement with reciprocal rights of access to procurement
- conduct due diligence to check supplier details with Companies House and other open information sources, or seek verification directly from the supplier.
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 58: Selection criteria
- Regulation 89: Duty owed to economic operators from the United Kingdom and Gibraltar
- Regulation 90A: Duty owed to economic operators from GPA parties
- Regulation 90B: Duty owed to economic operators from countries with whom the United Kingdom has an international agreement, other than the GPA
- Regulation 107: Qualitative selection
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
