Cabinet Office: Procurement Policy Note (PPN) 04/20

Recovery and Transition from COVID-19

This procurement policy note was published on 9 June and updated on 25 June. It sets out information and guidance for public bodies on payment of their suppliers to ensure service continuity during the current coronavirus, COVID-19, outbreak. It updates and builds on the provisions contained in PPN 02/20.

We recommend that all VCSE organisations commissioned to deliver services is aware of this update.

This new policy procurement note takes over from PPN02/20 which expires on 30 June.

PPN 04/20 is effective 1 July to 31 October and is important for VCSE organisations contracted to deliver public services.

NCVO’s policy manager, Rebecca Young has put her thoughts about PPN04/20 on twitter. These being

  • Authorities can still provide supplier relief under PPN 02/20 ‘if appropriate’ to maintain delivery of ‘critical services’. They should also be open to giving supplier relief, e.g. advance payment, relaxed KPIs/milestones, to those who haven’t needed it before.
  • Authorities should work in partnership with suppliers to develop transition plans to exist from relief asap & before the end of October. This should be kept under review, with particular consideration to local restrictions being introduced.
  • Plans should include assessment of costs associated with public health guidance. A process for reconciling any payments, or delivering any outstanding services. Authorities are being asked to consider variation of contracts to adjust to changing circumstances.
  • If contracts are not relevant and viable, then termination might be considered. The push seems to be for suppliers to move to using other business support measures, which we know present real issues for charities.
  • The language of partnership and sustainability is positive throughout, but I am concerned that this will create another cliff edge for charities in October.

Rebecca’s twitter account can be found

The procurement guidance can be found here.