14th March 2022
Amendments made to UK public procurement regulations to update certain financial thresholds which govern the procedures for the award of public contracts for goods, works and services came into force on 1 January 2022. There was also a change to the calculation of the estimated value of a procurement based on the total amount payable without making a deduction for VAT, in order to fully implement the UK’s obligations under the World Trade Organisation’s Agreement on Government Procurement.
The Cabinet Office published Procurement Policy Note (PPN) 08/21 on taking account of a bidder’s approach to payment in the procurement of major government contracts. The note applies in respect of all procurements above £5 million per year, advertised on or after 1 April 2022. It replaces PPN 07/20, the key update being the increase to the threshold bidders have to meet to demonstrate they have effective payment systems in place to ensure the reliability of their supply chains.
PPN 09/21 reminds in-scope organisations of the requirements to publish procurement information on Contracts Finder. The Note and associated guidance replace PPN 07/21 and clarify requirements on NHS Foundation Trusts. There is no change to the publication requirements for other contracting authorities that were set out in PPN 07/21.
The Cabinet Office also published a guide providing advice for SMEs on how to bid for and win government contracts.