Public Sector Focus

07.04.20

Cabinet Office moves to further protect suppliers after coronavirus

A new Procurement Policy Note (PPN) has been published by the Cabinet Office to further protect suppliers during and after the coronavirus outbreak.

Under this new PPN, contracting authorities must take action with immediate effect to ensure suppliers at risk can continue normal operations once the outbreak is over.

Suppliers at risk will continue to be paid as normal according to this PPN, even if the service is disrupted or temporarily suspended, until the end of June at the earliest.

Contracting authorities are being called on to introduce the most effective payment measures to support cash flow to the supplier, be this through forward ordering, pre-payment or payment on order.

Payments to suppliers should be judged on the average monthly payments over the previous three months, to ensure even when the contract requires payment by results, suppliers can continue to operate.

A provision of these new measures is that suppliers should work on an open book basis and make cost data available to contracting authorities, as well as continuing to pay employees and their subcontractors.

A Cabinet Office spokesperson said:

"During the exceptional circumstances created by coronavirus, it is clear that authorities may need to procure goods, services and works with extreme urgency.

"This is vital to make sure the public services we all depend on can continue and the public sector supply chain remains strong. That is why we have published new guidance informing authorities how this can be done.

"Even during these difficult circumstances however, it is important that public authorities continue to keep proper, detailed, records of their actions and work to achieve value for money and use good commercial judgement."

All contracting authorities are included in the PPN, which covers goods, services and works contracts in the UK.

It follows the announcement yesterday that the single transaction limit has been raised to £20,000 and the monthly limit has been raised to £100,000.

Both of these PPN guidelines are focused on ensuring the survival of suppliers during this period and beyond, including the retention of staff and the continuation of operations where possible.

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

latest public sector news

Multi-million pound projects in Grimsby given green light

29/05/2020Multi-million pound projects in Grimsby given green light

North East Lincolnshire Councillors approved plans yesterday (May 28) that will see a total of £4.967m invested into two major highway proj... more >
East Midlands £2.6bn transport plan to boost HS2 links at Toton

29/05/2020East Midlands £2.6bn transport plan to boost HS2 links at Toton

The East Midlands region has been promised a huge economic boost with a £2.7bn multimodal transport plan published this week (May 28). ... more >
Kirklees Council agrees £3.4m investment into schools

29/05/2020Kirklees Council agrees £3.4m investment into schools

Schools in Kirklees are set to benefit from a £3.4m investment, agreed by the cabinet members yesterday (May 28). The funding will rep... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >

the raven's daily blog

What came first, the bad customer or the bad customer service?

17/03/2020What came first, the bad customer or the bad customer service?

Source: PSE Feb/March 20 Stephen Bahooshy, Senior Commissioning Manager and Nicky Selwyn, Carer and Service User Group Chair, Croydon Council.   Here it is, that age old question: What came first, the bad customer or the bad customer service? (Or maybe we just made that up, whatever). But it’s true though, right? We w... more >
read more blog posts from 'the raven' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >