PPN 05/23 (PCR 2015)

Implementing new Free Trade Agreements - changes to public procurement obligations arising from the Australia and New Zealand Free Trade Agreement

In: Procure > Finalise and publish procurement pack

Overview

This PPN is relevant to all contracting authorities which come within scope of UK public procurement regulations, including central government departments, their executive agencies and non-departmental public bodies, the wider public sector, local authority and NHS bodies and utilities. Together these are referred to as ‘contracting authorities’.

Contracting authorities should take action to ensure they comply with the amendments to which this PPN relates where it is relevant to do so. This means procurement above the thresholds set out in the Public Contracts Regulations 2015 (PCRs), Utilities Contracts Regulations 2016 (UCRs) and Concession Contracts Regulations 2016 (CCRs).

This PPN describes changes to public procurement requirements arising from the UK’s Free Trade Agreements with Australia and New Zealand. These amendments apply to all procurements, not just those involving Australian and New Zealand suppliers.

The PPN refers to the following changes:

  • contracts whose value cannot be estimated must be treated as exceeding the relevant threshold by contracting authorities, meaning that these contracts will be subject to the full procurement regime
  • sub-central contracting authorities cannot use a prior information notice (PIN) or periodic indicative notice as a call for competition instead of a standard contract notice
  • contracting authorities should not terminate contracts in a manner that would circumvent procurement law obligations.

Objective at this commercial stage

Sub-central contracting authorities must use a standard contract notice as a call for competition and may not use a PIN or periodic indicative notice.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure contract opportunities are advertised by means of a standard contract notice
  • ensure the value of contracts, which cannot be estimated, must be treated as exceeding the relevant threshold and therefore subject to the full procurement regime.

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 6: Methods for calculating the estimated value of procurement
  • Regulation 18: Principles of procurement
  • Regulation 25B: Conditions relating to international agreements by which the United Kingdom is bound, other than the GPA
  • Regulation 26: Choice of procedures
  • Regulation 49: Contract notices
  • Schedule 4A: International Trade Agreements

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