CCS publishes consultation on excluding bidders with poor track record of payment from major procurements
On 10 April 2018, the Crown Commercial Service published Prompt Payment by Government Suppliers, a consultation on how government should take account of a supplier’s approach to payment in the procurement of major contracts.
The government wishes to gather views on whether it would be appropriate to exclude suppliers from major government procurements if they cannot demonstrate a fair, effective and responsible approach to payment in their supply chain management.
The measures proposed in this consultation apply to all central government departments, their executive agencies and non-departmental public bodies when undertaking procurements under the Public Contracts Regulations 2015 (SI 2015/102).
The government proposes that when suppliers are bidding for government contracts above £5 million per annum, their approach to payment of their subcontractors would be assessed as part of the selection process. Wherever relevant, existing benchmarks and mechanisms for reporting a supplier’s payment performance would be taken into account. Contracting authorities would be able to verify a self-declaration by a bidder by reference to these benchmarks and mechanisms.
The consultation closes on 5th June 2018.