PPN 05/21 (PCR 2015)

National Procurement Policy Statement

In: Manage > Manage and monitor

Overview

This PPN applies to all contracting authorities as defined in section 39(3) and (4) of the Small Business Enterprise and Employment Act 2015, and whose functions are wholly or mainly reserved. This includes central government departments, executive agencies, non-departmental public bodies, local authorities, NHS bodies and the wider public sector (collectively referred to as ‘contracting authorities’).

This PPN sets out information and guidance for contracting authorities on the National Procurement Policy Statement (NPPS); which requires contracting authorities to have regard to national strategic priorities for public procurement. The national priorities relate to social value; commercial and procurement delivery; and skills and capability for procurement.

The NPPS will remain in place until it is withdrawn, amended or replaced, and can be reviewed when the Minister for the Cabinet Office considers it appropriate to do so. When considering whether to review the NPPS, the Minister for the Cabinet Office will give regard to whether there has been a significant change in any circumstances on which the NPPS was based and whether such change was anticipated when the NPPS was published.

Contracting authorities should have regard to the following outcomes in their procurement activities, alongside any additional local priorities, where it is relevant to the subject-matter of the contract and is proportionate to do so:

  • creating new businesses, new jobs and new skills in the UK
  • tackling climate change and reducing waste, and
  • improving supplier diversity, innovation and resilience.

Objective at this commercial stage

Processes and governance systems must be established to determine and ensure effective contract management.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure that there are processes and governance in place to manage the most important contracts
  • remain mindful that the more important a project or programme is, the more robust and rigorous the process is to procure and manage the relevant contracts
  • consider including performance measures that are relevant to the service objective and proportionate to the size and complexity of the contract.

This PPN should be read alongside the relevant parts of the public procurement legal framework, including but not limited to the relevant provisions of the Public Contracts Regulations 2015.

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