Overview
This PPN sets out Government policy to ensure supplier’ past performance is taken into account in respect of procurements and framework agreements (under the Public Contracts Regulations 2015).
This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as 'in-scope organisations').
The PPN is in two parts:
- Part A outlines requirements relating to the assessment of supplier’s reliability as demonstrated by their performance of past contracts. Part A applies to in-scope organisations when procuring goods and / or services in respect of information and communications technology, facilities management or business processing outsourcing with a total anticipated contract of £20 million or more (excluding VAT). It also applies to framework agreements only where it is anticipated that there will be a call-off agreement in respect of such goods and / or services with an individual anticipated value of £20 million or more (excluding VAT)
- Part B concerns the provision of information about suppliers’ past performance both to and by in-scope organisations. All in-scope organisations are required to provide certificates of performance to their suppliers on request in the form set out in Annex F of the PPN. This form should also be used where in-scope organisations obtain certificates from other organisations (both public and private sector). Where in-scope organisations carrying out procurement processes collect information about the past performance of suppliers, they are required to provide the information to pastperformance@crowncommercial.gov.uk.
Objective at this commercial stage
Where Part A of the PPN applies, in-scope organisations are required to assess the supplier’s reliability as demonstrated by its performance of past contracts by including relevant selection criteria.
Key considerations at this commercial stage
Where Part A of the PPN applies, in-scope organisations should:
- include a paragraph informing suppliers of the policy as set out in the PPN in all relevant procurement documentation. Template wording is included at Annex B of the PPN (i.e. PPN 04/15)
- include selection criteria which allows the in-scope organisation to satisfy itself that a supplier’s principal contracts for goods or services delivered in the previous three years are being or have been provided satisfactorily in accordance with their terms
- consider whether it would be appropriate to require satisfactory performance of a specified minimum number of contracts. This approach may however exclude suppliers who have provided goods and / or services on a sufficient scale under a smaller number of contracts. As an alternative, the requirement may apply to a specified value, quantity or description of contracts
- consider whether the requirement should be limited to particular categories of goods sold and / or services provided
- consider whether alternative selection criteria templates included at Annex C of the PPN (i.e. PPN 04/15) can be used
- when assessing suppliers’ past performance, request certificates of performance prepared by the customer to whom the goods and / or services on the list were provided. The format of the certificate is in Annex F of the PPN (i.e. PPN 04/15).
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 18: Principles of procurement
- Regulation 57: Exclusion grounds
- Regulation 58: Selection criteria
- Regulation 60: Means of proof
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
