PPN 08/23 (PCR 2015)

Using standard contracts

In: Procure > Finalise and publish procurement pack

Overview

This PPN outlines three standard contracts that may be used by central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’). The standard contracts in the suite are:

  1. The Model Services Contract (MSC) for complex services procurements which typically require some form of formal dialogue or negotiation with potential suppliers. Use of the MSC is encouraged where the likely contract value (over the whole of the intended contract term) is £20m or more
  2. The Mid-Tier Contract for goods and / or services procurements which are not particularly complex and do not require formal dialogue or negotiation with potential suppliers. The Mid-Tier Contract may be used where the likely contract value (over the whole of the intended contract term) is above relevant procurement thresholds, but falls below approximately £20m. It may also be used if a contract is more complex or critical, but below relevant procurement thresholds, and
  3. The Short Form Contract for low value goods and / or services procurements where the likely contract value is below the relevant procurement thresholds, unless the contract is more complex or critical, in which case, another contract, such as the Mid-Tier Contract may be used. It should not be used for above-threshold procurements.

Where in-scope organisations are purchasing bespoke goods or services, or goods or services that cannot be facilitated by a suitable government framework, they should adopt one of the standard contracts above, rather than creating a bespoke contract.

Objective at this commercial stage

As part of the preparation of the procurement documents, an appropriate standard contract (i.e. applicable to the contract value and complexity of the procurement) should be used instead of creating bespoke contracts.

Key considerations at this commercial stage

In-scope organisations should:

  • ensure the procurement documents incorporate the use of an appropriate standard contract, rather than creating bespoke contracts, in particular where bespoke goods or services are purchased that cannot be facilitated by a suitable government 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 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

See also (where relevant and appropriate to do so):