PPN 05/21: National Procurement Policy Statement

This Procurement Policy Note (PPN) sets out information and guidance for contracting authorities on the National Procurement Policy Statement (NPPS) which will require contracting authorities to have regard to national strategic priorities for public procurement.

This PPN highlighted the need for all contracting authorities need to prepare now, in advance of the developing major legislative reforms for public procurement, to ensure they have the right procurement capability and capacity so they can benefit from these changes.

The Statement sets out the national priorities that all contracting authorities should have regard to in their procurement where it is relevant to the subject matter of the contract and it is proportionate to do so, including the following social value outcomes:

• Creating new businesses, new jobs and new skills in the UK;
• Improving supplier diversity, innovation and resilience;
• Tackling climate change and reducing waste.

The PPN highlights the need for robust and rigorous processes for projects with high complexity, cost and risk, and highlights the importance of benchmarking. The PPN advises that the Government intends to bring forward legislation when Parliamentary time allows to ensure that:

• all contracting authorities are required to have regard to the National Procurement Policy Statement when undertaking procurements;
• contracting authorities with an annual spend of £200m or more are required from April 2022 to publish procurement pipelines and to benchmark their procurement capability;
• contracting authorities with an annual spend of £100m or more are required from April 2023 to publish procurement pipelines and to benchmark their procurement capability.

Click here to read PPN 05/21 in full