procurement policy

1. © 2020 PCC
Procurement guidance issued during the
Covid-19
Procurement policy note (PPN) 01/20 - responding to
Covid-19
https://www.gov.uk/government/publications/procurement-
policy-note-0120-responding-to-covid-19
Procurement policy note (PPN) 02/20 – supplier relief due
to Covid-19
https://www.gov.uk/government/publications/procurement-
policy-note-0220-supplier-relief-due-to-covid-19

2. © 2020 PCC
PPN 01/20 – responding to Covid-19
• Recognises that there may be a need for urgent
procurement of goods, services and works during the
pandemic
• Sets out a range of legally compliant options/
mechanisms within the Public Contract Regulations
2015 that can be used to secure requirements urgently
• Contracting authorities should keep proper records of
decisions and actions, including the justification for use
of particular mechanisms, as this could mitigate
against the risk of a successful legal challenge

3. © 2020 PCC
Options

4. © 2020 PCC
PPN 02/20 – supplier relief due to Covid-19
• Sets out information and guidance for public bodies on
payment of their suppliers to ensure service continuity
during and after the current COVID-19 outbreak
• Contracting authorities must act now to ensure suppliers
at risk are in a position to resume normal contract
delivery once the outbreak is over
• Contracting authorities should pay all suppliers as
quickly as possible to maintain cash flow and protect
jobs

5. © 2020 PCC
Contracting authorities should:
• Urgently review their contract portfolio and inform suppliers who
they believe are at risk that they will continue to be paid as
normal (even if service delivery is disrupted or temporarily
suspended) until at least the end of June
• Put in place the most appropriate payment measures to support
supplier cash flow; this might include a range of approaches
such as forward ordering, payment in advance/prepayment,
interim payments and payment on order (not receipt)
• If the contract involves payment by results then payment
should be paid on the basis of previous invoices, i.e. the
average monthly payment over the previous three
months
Key messages

6. © 2020 PCC
• To qualify, suppliers should agree to act on an open book basis
and make cost data available to the contracting authority during
this period. They should continue to pay employees and flow
down funding to their subcontractors
• Ensure invoices submitted by suppliers are paid immediately on
receipt (reconciliation can take place later) in order to maintain
cash flow in the supply chain and protect jobs
N.B. Supplementary guidance is available on: Payment to Suppliers for
Contingent Workers; Model Interim Payment Terms; FAQs; and Model
Terms of Construction; plus PPN 03/20 – Use of Procurement Cards
https://www.gov.uk/government/publications/procurement-policy-note-
0320-use-of-procurement-cards-coronavirus
Key messages

7. © 2020 PCC
Support from PCC
If you have any procurement queries please contact us at
enquiries@pcc-cic.org.uk