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 the case of procurements with an annual contract value over £5 million (based on advertised contract value, averaged over the life of the contract) which are subject to the Public Contracts Regulations 2015 (PCR 2015), in-scope organisations must, where it is relevant and proportionate to the contract subject-matter to do so, require the successful supplier through contractual conditions to:
a) advertise on Contracts Finder all subcontract opportunities, arising from that contract, above a minimum subcontract threshold of £25,000
b) report on subcontracting spend, and separately how much spend is directly with small and medium-sized enterprises (SMEs) or voluntary, community and social enterprise (VCSE) organisations in the delivery of the contract.
Objective at this commercial stage
In relation to contracts within scope of this PPN, and where it is relevant and proportionate to do so, contractual clauses must be included requiring the supplier to whom the contract is awarded to advertise on Contracts Finder all subcontracting opportunities above a minimum subcontract threshold of £25,000, and to report their spend on subcontracting and direct spend with SMEs or VCSEs in the delivery of the contract.
Key considerations at this commercial stage
In-scope organisations should, for contracts within scope of this PPN, and where it is relevant and proportionate to the subject-matter of the contract to do so:
- take into account contractual terms requiring subcontracting opportunities, above a minimum subcontract threshold of £25,000, to be advertised on Contracts Finder (noting that a higher threshold, not exceeding £100,000, can be set if the minimum threshold of £25,000 is considered to be overly burdensome to suppliers on a particular procurement)
- consider requiring successful suppliers to report on subcontracting spend and how much of this spend is directly with SMEs or VCSEs in the delivery of the contract.
Legal framework
This PPN should be read alongside the relevant parts of the legal framework but it is not designed to provide guidance on a particular clause or regulation from the PCR 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
