New guidance affecting suppliers to the public sector

The relationship between public bodies and their suppliers during the pandemic has received close attention from Government. Seen as a way of helping to sustain public services and to support viable businesses during the crisis, targeted guidance was issued in March (Procurement Policy Note 02/20 - Supplier Relief due to COVID-19 (PPN 02/20)). This encouraged public sector customers to work in partnership with their suppliers, maintain service delivery where possible and take a long-term approach to their commercial relationships with a view to resuming normal contract delivery post-crisis.

As the UK moves forward into the next phase, further guidance looking to transition to a new, sustainable operating model has been published (Procurement Policy Note 04/20: Recovery and Transition from COVID-19). This recognises that it may now be necessary to consider variation or termination where a contract is no longer relevant or viable in its current form.

Shailee Howard discusses the details here.

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