The Government has published a new Procurement Policy Note PPN 05/21, a National Procurement Policy Statement that requires contracting authorities in the public sector to ensure procurements support the delivery of wider strategic policy objectives as set out in the Social Value. For the first time the UK government has established a set of principles that all contracting authorities must have regard to when they procure goods and services, alongside any additional local priorities in their procurement activities. These principles include:
● creating new businesses, new jobs and new skills;
● tackling climate change and reducing waste, and
● improving supplier diversity, innovation and resilience.
The PPN also makes a clear statement that delivering best value over the life of the procured asset or service, rather than lowest cost, should be the objective of procurement exercises, and that procurers should take a broad view of what constitutes best value, reflecting policy as set out in the Green Book.
PPNs provide guidance on best practice for procurement for public sector organisations, together with supporting documentation. A PPN applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies in conducting procurement procedures regulated by the Public Contracts Regulations 2015.
Commenting on the publishing of this statement, FIS CEO, Iain McIlwee stated:
“It is good to see the vague coulds and shoulds of politicians turned into requirements in this statement. Procurement has to reward more than price – the Construction Playbook is a step in the right direction, this Policy Statement is another stride towards a heathier procurement culture that will support transformation in construction”.