PPN (Procurement Policy Note) 03/24 is essentially a guidance document issued by the UK government. Since its release, there’s been some confusion about the new Procurement Policy Note.
The recommendations from PPN 03/24 state that the Common Assessment Standard (CAS) should be used if contractors want to work for public sector bodies or bid for new public sector contracts.
PPN 03/24 is set to improve the pre-qualification stage in public sector procurement. Continue reading to learn everything you need to know about PPN 03/24 and how it could affect you as a contracting authority in the UK public sector.
What is PPN 03/24?
PPN 03/24 is a Procurement Policy Note issued by the UK government to update the Standard Selection Questionnaire (SSQ). It was first issued in March of this year (2024) and has replaced the previous PPN 03/23.
The new replacement features some key changes and updates to certain questions within the Standard Selection Questionnaire. It’s important to educate yourself about these changes, as PPN 03/24 now applies to every contracting authority in the UK public sector.
PPN 03/24 is part of ongoing updates to UK procurement, which aims to simplify and improve the overall selection process for public contracts. It’s currently the only PPN with statutory force under regulation 107 of the Public Contracts Regulations 2015.
This makes its implementation mandatory for central government bodies, as well as contracting authorities, as discussed.
PPN 03/24 vs PPN 03/23
PPN 03/24 is an update from PPN 03/23. Since the update, several key changes have been made to the Standard Selection Questionnaire that you should be aware of:
- Prompt payments – questions are now included asking how bidders will make sure supply chains remain trustworthy and that their payment terms are suitable for supply chain contracts
- Withdrawal to PAS91 – the update comes with the removal of any references to PAS91, which was a decision made by the British Standards Institution (BSI). Instead, it’s now been replaced with the Common Assessment Standard (CAS), which was produced by Build UK
- Changes to format – the template for the Standard Selection Questionnaire has now been changed to adapt to e-procurement portals
- Standardisation – Standardisation is important. The CAS provides a varied range of questions for contracting authorities, helping to make sure that all suppliers are being considered based on the same criteria. This helps contractors and clients find the perfect supplier in the fairest way possible
Additionally, PPN 03/24 states that suppliers can use AI to prepare tenders. It’s believed that AI can be beneficial while preparing tenders, helping to save valuable time in the process.
PPN 03/24 is a vast improvement from 03/23. With key changes being made, from improved formatting to removing outdated references, PPN 03/24 now helps streamline the procurement process, making it more efficient than ever.
The Reasons Behind PPN 03/24
What are the reasons behind PPN 03/24? Although PPN 03/23 had shown improvements since the previous PPN 08/16, it was clear that more needed to be made. Some of the key reasons behind PPN 03/24 include:
- Improving the supply chain
- Updating procurement policies
- Raising compliance
- Streamlining the procurement process
- Removing standards seen as outdated
Environmental and social considerations also came into play. PPN 03/24 states that central government contracts of £5m or above per annum can:
1 -Ask potential suppliers who they might work with to showcase how they’ll maintain a healthy supply chain. This could include demonstrating how they’ll pay subcontractors on time (which can be answered through the updated questions regarding payments)
2 –Ask potential suppliers to confirm their commitments to achieving Net Zero by 2025 (which can be shown by providing a Carbon Reduction Plan)
PPN and CAS
As discussed, PPN 03/24 is an updated version of PPN 03/23, with a revised Standard Selection Questionnaire (SSQ) and guidance for public procurement.
Contracting authorities across the UK can use the Common Assessment Standard (CAS), which has now replaced PAS 91, to improve overall supply chain efficiency and minimise the chance of risks occurring, to name a few.
The Common Assessment Standard consists of an industry-agreed set of questions to help contractors and suppliers showcase their compliance and prove that they can keep a streamlined supply chain.
Timeline
PPN 03/24 is a continuation of PPN 03/23 – which was also recommended to be implemented immediately. The timeline for PPN 03/24 is as follows:
- PPN 03/24 was first introduced on March 27, 2024 (replacing PPN 03.23)
- As soon as PPN 03/24 was released, it could be implemented immediately by contracting authorities in England, Wales, and Northern Ireland
- The mandatory deadline was June 27, 2024
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