PPN 006 (PA 2023)

PPN 006 Taking account of Carbon Reduction Plans in the procurement of major government contracts

In: Procure > Finalise and publish procurement pack

Overview

This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’) when awarding public contracts for goods, and or services, and or works, other than special regime contracts. Other public sector contracting authorities may wish to apply the approach set out in this PPN.

In-scope organisations should take action to apply this PPN when procuring goods and / or services and / or works with an estimated contract value above £5 million per annum (including VAT based on the advertised contract value, averaged over the life of the contract) under the Procurement Act 2023 (PA 2023), save where it would not be related and proportionate to the contract.

The PPN also applies to frameworks and dynamic markets but only where it is estimated that the individual value of any contract to be awarded in accordance with the framework or by reference to a dynamic market is greater than £5 million per annum (including VAT).

As part of assessing a supplier’s technical ability, in-scope organisations should include, as a condition of participation, a requirement for bidding suppliers to provide a Carbon Reduction Plan (using the template at Annex A of this PPN). The Carbon Reduction Plan (CRP) must confirm the supplier’s commitment to achieving Net Zero by 2050 in the UK, detail their emissions as required by the PPN, and set out the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract.

CRPs must meet the required standard as set out in the supporting guidance to the PPN.

Environmental considerations and carbon reduction will be a factor in most, if not all, contracts and it is therefore expected that in most cases the application of this PPN will be relevant. However, in-scope organisations should make their own assessment of the measure’s applicability on a case by case basis.

Note: For procurements commenced and contracts awarded before this date, please refer to PPN 06/21.

Objective at this commercial stage

Where the PPN applies to the procurement, the procurement documents should require suppliers to submit a CRP in accordance with the PPN. These requirements should be included within the conditions of participation.

Key considerations at this commercial stage

In-scope organisations should, where the PPN applies:

  • ensure the questions in Annex A of the guidance (accompanying this PPN) are included within their conditions of participation
  • for contracts awarded in accordance with a framework or by reference to a dynamic market, consider whether to build into the award process measures that appropriately verify that a supplier continues to meet the criteria set out in this PPN

This content is under development.

Read the PPN

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