Taking Account of Past Performance
The Cabinet Office published a Procurement Policy Note (PPN) - effective 8th November 2012 - setting out new requirements for purchasers to check the performance of tenderers in delivering previous contracts.
The Cabinet Office has now published the PPN to ensure that, in certain cases, public bodies will now be required to include minimum standards for reliability based on past performance. As a result, providers will now be required to give more detailed information and should expect that such information will be carefully checked by purchasers. This requirement is intended to ensure that providers will comply with minimum standards Bases on reliability based on past performance. The key requirements from the PPN are:
- to include wording in all relevant procurement documentation, such as PQQs and ITTs, to ensure that tenderers are aware of the government’s approach to managing supplier performance and of the conditions of entry to the procurement;
- specify the minimum standards relating to past performance and information required in relation to those standards in the tender notice;
- incorporate the same minimum standards and request for evidence from tenderers in other documentation relating to the selection stage;
- verify information provided by any tenderer in relation to past performance by checking with any reasonably available source of information and giving the bidder an opportunity to make representations on any further information obtained;
- apply the minimum standards for reliability based on past performance to exclude tenderers which fail to meet them;
- assess whether a tenderer continues to meet the minimum standards for reliability at specified subsequent stages in the procurement process, particularly in complex or lengthy procurement processes, by including appropriate wording in the tender notice and asking tenderers to update the evidence provided at an earlier selection stage.
It is now essential that all tenderers have an effective performance management system in place which records compliance with the requirements of previous contract delivery.