You may be aware of the recent PPN from the Cabinet Office which was published on Thursday 9^th March regarding a revised version of the Standard Selection Questionnaire (SQ) which is to be applied to procurements from 1^st April 2023. PPN 03/23 replaces PPN 08/16 and applies to all contracting authorities in England and to contracting authorities in Wales and Northern Ireland (as identified in the PPN).

In summary, this policy note involves several changes to the current SQ. Some sections have been amended, others removed and new sections added. The amendments are based on feedback given to the Cabinet Office from buyers and suppliers in order to improve the supplier selection process.

We have carefully reviewed the changes and have already started to work internally to ensure that we fully understand the changes so that we are compliant by the 1^st April deadline, if not sooner, and can communicate the changes effectively to our buyers and suppliers. 

For those not familiar with PPN 03/23 we had compiled a summary of the key points covered in the update. You can also view the full PPN details by clicking here.

The PPN 03/23 provides clarity on a number of issues, for example:

Changes contracting authorities can make to the wording of questions

The PPN states that no deletions or additions can be made to the mandatory questions in parts 1 and 2 of the SQ, while if contracting authorities wish to deviate from the questions set out in part 3 for supplies and services procurements, they must report this to domestic-policy-queries@cabinetoffice.gov.uk  

What is meant by “relying on another organisation” to meet the selection criteria

The PPN advises that an organisation is relied on for the purposes of the standard selection questions if the potential supplier is relying on the technical and professional ability and/or the economic and financial standing of the organisation to meet the selection criteria in part 3.

Seeking information from groups of suppliers

If a potential supplier is bidding on behalf of a group/consortium, or intends to use subcontractors, different actions may be required for completion of part 3 of the standard questions compared to part 1 and part 2.

The response to part 1 should make it clear who the lead member of the group/consortium is, and who will be contractually responsible for delivery of the contract.

All members of the group/consortium may be required to provide the information in part 3 of the selection questions, as part of a single composite response (unless the question specifically directs otherwise).

Amendments to financial questions and checks

Contracting authorities should clearly state any minimum Economic and Financial Standing (EFS) requirements and selection criteria and describe the methodology for assessing EFS clearly.

Health and Safety questions

Questions about compliance with environmental law obligations (which include health and safety legislation) are included in part 2.

If buyers wish to include a selection criterion relating to suppliers’ technical and professional ability in managing health and safety in their organisation and in the supply chain, they can include the optional Health and Safety question.

In addition to amended sections, there are also completely new sections to be added, such as:

Supply Chain questions 

Where a potential supplier is proposing to subcontract a portion of the contract, they should provide a relevant example where one or more of the essential subcontractors have delivered similar requirements (separate examples are not required from each subcontractor).

For central government contracts worth £5m and above per annum, buyers may use the payment question to ask potential suppliers to demonstrate how they will maintain a healthy supply chain, including paying subcontractors promptly.

Data Protection questions 

In procurements for contracts involving processing personal data, contracting authorities should use appropriate selection criteria relating to potential suppliers’ technical and professional ability in implementing the appropriate technical and organisational measures to comply with GDPR and to ensure the protection of the rights of data subjects.

Additional requirements for Modern Slavery and clarity on handling responses to questions on the Modern Slavery Act 

Central government authorities should consider whether modern slavery risks apply to the contract, using the risk assessment table in the PPN’s guidance, to ensure such risks are clearly identified and appropriately managed.

In new procurements identified as at high risk of modern slavery occurring, bidders should detail their supply chain members and submit self-declarations for each of those supply chain members.

Questions related to reducing carbon emissions 

For central government contracts of £5m and above per annum, contracting authorities can ask potential suppliers to confirm their commitment towards achieving Net Zero by 2050 by providing a Carbon Reduction Plan using the Carbon Reduction questions to ensure the necessary environmental management measures are in place.

Updated payment questions

The PPN sets out how payment approaches can be taken into account in the procurement of major Government contracts.

Central government authorities should apply the PPN when procuring goods and/or services and/or works with an anticipated contract value above £5 million per annum (excluding VAT) which are subject to the Public Contracts Regulations 2015.

Works Contracts 

The PPN states that for works contracts, including the procurement of mixed contracts that include supplies and services, contracting authorities should use the Common Assessment Standard (CAS), or PAS91, in place of the standard SQ template in pre-qualification of bidders.

It is important to stress that the SQ, when used, is proportionate and relevant to the procurement exercise.

It is equally important to note that the PPN applies only to contracting authorities in England, and contracting authorities in Wales and Northern Ireland that exercise wholly or mainly reserved functions.