The Crown Commercial Service (CCS) has published PPN 04/18 “Taking account of a supplier’s approach to payment in the procurement of major contracts”.
PPN 04/18 introduces new questions to be incorporated within section 6.2 of the standard selection questionnaire (SQ) or added to PAS91. These questions must be used by in-scope organisations to assess a supplier’s approach to payment in the context of the procurement of major contracts.
It is worth noting the following:
- Use of the new questions is required for all procurements advertised on or after 1 September 2019.
- In-scope organisations, for the purposes of this PPN, are all Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies.
- The new qualification/selection questions are to be used on “major projects” which, in this context, means works, supplies or services contracts with an anticipated contract value above £5 million per annum (excluding VAT).
- The PPN applies to framework agreements and dynamic purchasing systems only where it is anticipated that the individual value of any contract to be awarded under the framework agreement or dynamic purchasing system is greater than £5 million per annum (excluding VAT).
Two supporting documents have been published together with PPN 04/18
- Payment Selection Questions and Guidance
- Frequently Asked Questions
Payment Selection Questions and Guidance: This sets out, in Annex A, the set of standard questions and evidence required from suppliers concerning payment approaches by bidders in the context of a supply chain. There are six questions; concerning systems for payment in the supply chain, resolving disputed invoices, codes or standards of payment practices and, in the case of contracts subject to PCR113, 30 day payment terms. Question 7 requires suppliers to provide information on actual payment of invoices. The Guidance covers questions on the assessment methodology, use of self-declarations and verification as well as commentary on assessment of responses to Question 7.
Frequently Asked Questions: There are 12 FAQs and answers covering issues such as how to assess new entrants, interface with PAS91, how to handle payment data in response to Question 7 and various practical issues relating to reports on payment of invoices.
You can access the full PPN and supporting documents from the CCS’ PPN website.