The Cabinet Office has recently published a Procurement Policy Note (PPN) on taking bidders' past performance into account when assessing bids.
When does the PPN apply?
The PPN applies to:
What does the PPN require?
This new policy is the government's attempt to ensure there is no repeat of previous high-cost and high profile public procurements where suppliers failed to deliver particularly in the IT sector. It remains to be seen how the policy will operate on the ground. However one can foresee certain pitfalls from a procurement law perspective which contracting authorities will need to negotiate sensitively. For example:
Readers should also note that the proposals for a new directive on public procurement include at Article 55 (of the October 2012 draft) a provision allowing member states to provide that contracting authorities must or alternatively may exclude bidders who have "shown significant or persistent deficiencies in the performance of a substantive requirement under a prior public contract or a prior contract with a contracting entity which led to early termination of that prior contract damages or other comparable sanctions."
Professional Support Lawyer