Defence and Security Summary Document
Published 22 April 2024
The learning manual and all of the material within it has been produced for the purpose of learning and development only, and does not constitute and should not be relied upon as legal or other professional advice. We have aimed to ensure that the information is correct as at 26th July 2024. The content has not been updated following any relevant changes. In particular, the material used in the e-Learning and learning manual has been based on a draft version of the Procurement Regulations 2024 and so users should review the Procurement Regulations 2024 laid before Parliament and the guidance issued by Cabinet Office in due course.
A. Introduction
Scope of Summary Document
This document provides an overview of the changes in the Procurement Act as they apply to defence and security contracts and contracting authorities. While the majority of defence and security procurements will follow the general regime (as set out in Summary Documents 1-9), some exemptions and additional provisions apply specifically for defence and security contracts. This document provides details of:
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The key changes between the Defence and Security Public Contracts Regulations 2011 (DSPCR 2011) and the Procurement Act.
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The exemptions in the Procurement Act for contracting authorities procuring defence and security contracts.
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Additional provisions in the Act for defence and security contracts and contracting authorities.
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An overview of the changes to the Single Source Contract Regulations (SSCRs).
Where no change, exemption or additional provision is listed, it should be presumed that the general regime applies, as detailed in Summary Documents 1-9. This document is designed to supplement those Summary Documents.
Defence and Security Procurement
Prior to the new regime being introduced, the majority of public contracts for defence and sensitive security equipment, services and works were procured and managed using DSPCR 2011. Procurements by the Secretary of State for Defence for defence purposes are also governed by the Single Source Contract Regulations (SSCRs) 2014 if they have a value of over £5 million, have been awarded without being competed, and are not specifically excluded from the SSCRs.
Sensitive utility contracts also fell under DSPCR 2011. All other types of contracts were procured using the Public Contracts Regulations 2015, Utilities Contracts Regulations 2016 or the Concessions Contract Regulations 2016, unless completely exempt.
The main change under the Procurement Act is each of the above regimes is combined into one single set of rules, which has the benefits of:
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Making compliance with the regulations easier for contracting authorities.
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Making the rules less complex for suppliers.
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Creating a more uniform approach to public procurement.
Definitions
Key definitions in the Act, including any changes from existing regulations, are as follows:
Definition | Procurement Act | DSPCR 2011 - Change |
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Defence and Security Contract a. military equipment b.sensitive equipment c. goods, services or works necessary for the development, production, maintenance or decommissioning of military equipment or sensitive equipment d. logistics services relating to military equipment or sensitive equipment e. goods, services or works for wholly military purposes(1) f. sensitive services or sensitive works; g. goods, services or works that are otherwise relevant to the operational capability, effectiveness, readiness for action, safety or security of the armed forces. This definition also applies to frameworks for the future award of contracts for the supply of goods, services or works as described in points (a) to (g) above. For more information on the scope of defence and security contracts, see the definitions of key terms (section 7(7)) in Appendix 1. |
Section 7(1) | Reg. 6(a) - broadly unchanged save for the addition of section 7(1)(g). |
Defence Authority A “defence authority” is a contracting authority specified in regulations made by a Minister of the Crown. Its functions must be wholly or mainly for the purposes of defence or national security. Currently, the Secretary of State for Defence, the Atomic Weapons Establishment (AWE PLC), the Oil and Pipelines Agency and the National Crime Agency are classed as “defence authorities”. |
Section 7 (5)-(6) | NA - New definition |
Defence Authority Contract A defence and security contract awarded by a defence authority (as above). |
Section 7(4) | NA - New definition |
Defence and Security Framework A framework that only allows for the award of defence and security contracts (as defined in section 7(1)). |
Section 47 (4)(a) | NA – new definition (although “frameworks” themselves existed under DSPCR 2011). |
1) “Wholly military purposes” is defined under the Act as meaning a) the transportation of military personnel or military equipment; b) the training of military personnel; c) the training of other personnel to use military equipment; d) the construction of military facilities, including military airfields, military storage facilities or facilities for the maintenance of military equipment. |
B. Overview of Exemptions
Procurement for defence and security contracts is unique in many respects. For that reason, the Act sets out various exemptions applicable to certain procurement activities. They are designed to allow:
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The UK to take measures for the protection of its security interests.
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Safeguards and protections for sensitive, classified security information.
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Longer-term contracts to be let for complex purchases and security of supply.
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Actions to be taken to avoid gaps in essential capabilities.
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Contractual flexibility to deal with rapidly changing requirements, and take advantage of new and emerging technologies.
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The development of strategic capability within the defence marketplace, to meet national security needs and respond in an agile way to new opportunities and threats.
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For meaningful competition to take place wherever possible, addressing barriers to entry and facilitating better access to the subcontracting market for more SMEs.
Types of Exemptions
For defence and security, full or partial exemptions from the general rules can apply based on:
1. The contract: due to either a) other party(ies) with whom you’re contracting (e.g. certain government-to-government contracts, joint procurements etc.), or b) the subject matter of the contract (i.e. what is being procured).
2. The contracting authority (the organisation undertaking the procurement).
Contracts and contracting authorities may be exempt from:
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The entire Procurement Act.
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Particular sections of the Act (which set out certain actions within the commercial lifecycle), such as the publication of particular notices.
Fully Exempted Contracts and Contracting Authorities
Some contracts and contracting authorities are fully exempt from the Procurement Act. This means that the Act does not need to be followed (although commercial best practices may be applied where it is appropriate to do so). The SSCR may apply to contracts exempted from the Act - the criteria for it doing so are unchanged.
The following contracts and contracting authorities are exempt from the Procurement Act:
Contract / Contracting Authority | Procurement Act Section | DSPCR 2011 / Change |
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Fully Exempted Contracting Authorities | ||
Intelligence Services including the Security Service, the Secret Intelligence Service and the Government Communications Headquarters. | Section 2(5)(b) | NA - New specific exemption for named intelligence agencies. |
Exempted Contracts | ||
Contracts awarded under a procedure specified in an international agreement (of which the United Kingdom is a signatory) relating to: • The stationing of military personnel, or • The implementation of a joint project between agreement signatories (e.g. for works and services with a host country under a Status of Forces Agreement.) |
Schedule 2(23) | Reg. 7(1)(e)(ii) - no change. Reg 7(1)(c) – Act does not contain limitation on a cooperative programme being based on research and development |
Intelligence Activities. A contract for the purposes of carrying out, facilitating or supporting intelligence activities. | Schedule 2(26) | Reg. 7(1)(b) - limited change but further clarifies intelligence activities covered. |
Defence and Security Contracts where: • The supplier is located outside the UK in an area where the armed forces are deployed, and operational needs require the contract be awarded to that supplier. • The supplier is located outside the UK in a state/territory where the armed forces maintain a military presence, and that state/territory requires the contract be awarded to that supplier. • Contract is awarded under a procedure adopted by an international organisation of which the UK is a member. • Contract is awarded under an arrangement between the UK and other states/territories, for the joint development and/or exploitation of a new product. |
Schedule 2(27) Schedule 2(28) Schedule 2(29) Schedule 2(30) |
Reg. 7(1) - broadly no change |
Defence and Security Contracts where the supplier is the government of another state / territory (e.g. purchases under the US Foreign Military Sales program.) | Schedule 2(4) | Reg. 7(1) - no change |
Misapplication of an exemption could be challenged and some contracts listed under Schedule 2 of the Act are only exempt where certain conditions apply. Contracting authorities should ensure that they meet all conditions relevant to an exemption before they apply it to a procurement.
Exemptions that apply to certain sections of the Act, and additional provisions that apply to defence and security contracts under the Act, are set out in Part C.
C. Changes and Exemptions
This section contains details of the exemptions and additional provisions applicable to defence and security contracts and contracting authorities under the Procurement Act. It also provides more detail on some of the key changes that are unique to DSPCR 2011, and are in addition to those outlined in Summary Documents 1-9.
A quick reference guide to the exemptions can be found in this Fact Sheet.
The information in this section is organised on a module-by-module basis, following the procurement lifecycle, and mirroring the structure of the eLearning and accompanying Summary Documents. Unless otherwise stated here, the Procurement Act will apply in full to defence and security contracts.
1. Scope, Definitions and Principles
1.1 Exempted Organisations
Some organisations and contracts are fully exempt from the Procurement Act (see Section B above for defence and security details) and some contracts qualify for partial exemptions (as detailed throughout this document). See Section B above for details.
1.2 Thresholds
Defence and security contracts have their own thresholds, as set out in Schedule 1 of the Act (the amounts set out in Schedule 1 will be updated when the Act comes into force to reflect the thresholds that came into force on 1 January 2024):
Type of contract | Threshold amount (including VAT) as of January 2024 |
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Defence and security works contracts or concession contracts | £5,372,609 |
Defence and security goods and service contracts | £429,809 |
Light touch contracts (including defence and security light touch contracts) | £663,540 |
Defence and security contracts are not subject to the World Trade Organisation’s Government Procurement Agreement (WTO GPA), but their financial thresholds will track against the GPA’s (revised every two years to allow for currency fluctuations).
1.3 Light Touch Contracts (Section 9).
The Procurement Act contains additional light touch services for certain defence and security contracts” that apply specifically to defence and security contracts only.
PCR 2015 and the light touch regime include specific rules for certain service contracts where cross-border interests are lower and flexibility in procurement is required. You may have applied this regime if procuring under the PCRs. Light touch contracts are subject to higher thresholds and reduced publication requirements.
DSPCR 2011 does not include any provision for light touch contracts. Instead, it set out a list of “Part B” services at Schedule 2 (Part B services are the predecessor for the light touch regime).
Change: Schedule 1 of the Procurement Regulations 2024 sets out a single light touch regime that simplifies their application by special regime contracts.
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Table 1: lists CPV codes for light touch services that may be used by any contract or contracting authority, including defence and security contracts, where relevant to the procurement in question.
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Table 2: lists CPV codes for additional light touch services that apply to certain defence and security contracts only (where relevant to the procurement in question). These mostly replicate the Part B CPV codes found in DSPCR 2011.
For ease of reference, a list of defence and security light touch CPV codes can be found in Fact Sheet: Defence & Security Light Touch CPV Codes
1.4 The national procurement policy statement (Section 13)
Neither DSPCR 2011 nor PCR 2015 contain reference to the national procurement policy statement, which is new in the Procurement Act.
Change: Ministers may publish a national procurement policy statement setting out the Government’s strategic priorities in relation to procurement. Contracting authorities must have regard to the national procurement policy statement. The scope of the statement will be set out within the statement itself. The statement, or parts of it, may apply to all procurement, covered procurement, or only specific types of procurement including defence and security contracts.
1.5 Below-Threshold Procurements (Part 6 - Sections 84 to 88)
DSPCR 2011 does not contain regulations that govern procurements below the thresholds set out in Regulation 9. Under PCR 2015, a separate set of rules applied to procurements that were below the thresholds to which the full regime applied. These were known as “below-threshold procurements”.
Change: procurements below the relevant threshold (set out in schedule 1 of the Act) must now follow the rules detailed in Part 6 of the Act (sections 84 - 88), covering “regulated below-threshold contracts”. This includes requirements to:
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Where the contract is valued above £12,000 (central government authorities) or £30,000 (other contracting authorities), publish a below-threshold tender notice in respect of advertised opportunities and a contract details notice at the appropriate stages of the procurement.
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Identify and (where possible) reduce barriers to participation faced by SMEs.
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Procure using a single-stage procedure - you may not include a separate participation stage that restricts tender submissions based on supplier’s suitability, other than for works contracts valued above £138,760 (central government authorities) or £213,477 (other contracting authorities).
In addition, 30-day payment terms are implied into every regulated below-threshold contract. See Summary Document 9 - Contract Governance and the Fact Sheet on Implied Terms for more information.
Below-threshold requirements do not apply to exempted contracts.
1.6 Trade agreements and Treaty State Suppliers (Schedule 9)
Exemption: Because the defence and security contracts (other than those under section 7(1)(g)) are not included in the scope of any international agreements (as set out in Schedule 9 of the Act), contracts under this definition (Section 7(1)) do not have to comply with the corresponding sections of the Act that guarantees equal treatment for treaty state suppliers. Contracting authorities therefore have the discretion to exclude suppliers from outside the UK, Crown Dependencies and British Overseas Territories from a procurement process.
More information on the below-threshold procedure can be found in Summary Document 1: Scope, Definitions and Principles.
2. Transparency
2.1 Notices and Documents
Changes:
1. Defence and security contracts must publish different notices and associated documents under the Procurement Act than they did under DSPCR 2011. These can be found in the Defence & Security Transparency Cheat Sheet.
2. Where procuring a defence and security contract, contracting authorities must indicate that this is the case by completing the relevant field(s) in any tender or transparency notice.
Exemptions: Defence and security contracts are exempt from some transparency requirements:
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Contract award notice: the exemption from publishing this notice applies only for the award of defence and security contracts under a defence framework.
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Contract change notice and publication of the modified contract: the exemption from publishing this notice and any modification applies to all defence and security contracts.
Please see the Defence & Security Process Flows which maps the various procurement processes that are broadly applicable to defence and security contracts, alongside their transparency requirements.
2.2 General Exemptions from Duties to Publish (Section 94(1))
Exemption: Contracting authorities are not required to publish or disclose information in notices or other documentation where withholding information is necessary in order to safeguard national security. There is no requirement to notify any party in relation to the withholding of information where this could prejudice the interests of national security. This exemption can be used by any contracting authority.
2.3 Electronic Communications (Section 96(4))
Exemption: the requirement to communicate electronically - or to use an electronic communication system that meets the specification outlined in section 94(2) - does not apply where the contracting authority believes that it may pose a security risk. This exemption applies to all contracting authorities, but may be particularly relevant to those with defence and security interests.
2.4 Record Keeping (Section 98)
Exemption: The requirement to keep records of material decisions made during a procurement, including supplier correspondence, does not apply to defence and security contracts.
See Summary Document 2: Transparency for further information.
3. Procedures
3.1 Competitive Tendering Procedures (Section 20)
Changes: Under the Procurement Act, defence and security procurements may follow a single-stage “open procedure”, which was not previously available under DSPCR 2011. This should offer a new, more simplified route to market, where it is appropriate. Information on the open procedure can be found in Summary Document 3: Procedures.
3.2 Duty to Consider Lots (Section 18)
Change: Defence and security contracts are now subject to the duty to consider - prior to publishing a tender notice - whether or not a contract could be divided into “lots”: these are smaller packages of work that may be performed by different suppliers. Benefits include opening the procurement up to greater SME participation.
3.3 Direct Award (Section 41)
Change: The direct award procedure (section 41) replaces the negotiated procedure without prior publication, and adds new mandatory transparency requirements. The justifications for following this procedure are broadly the same as those set out in reg. 16 of DSPCR 2011, with the addition (for all contracting authorities) of a new ground to “protect life, etc.”. Many of the grounds for direct award set out in schedule 5 may apply to defence and security contracts or contracting authorities depending on the circumstances in question, but grounds 18-20 apply specifically to defence and security contracts.
Specific Defence and Security Provisions (Schedule 5 (18-20)):
Direct award may be permitted:
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In contracts for the supply of air or maritime transport to the armed forces / security services (either whilst deployed or to enable deployment) where the nature of the services means it would not be possible for suppliers to hold tenders for 10 days following submission.
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Where in certain circumstances it would be more appropriate to directly award a new contract rather than amend an existing one (this justification can only be used where the new contract would be a qualifying defence contract under section 14(2) of the Defence Reform Act 2014).
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Applicable to defence authority contracts only (and excluding contracts described in section 7(1)(g)), where it is needed to enhance or maintain the operational capability, effectiveness, readiness for action, safety or security of the armed forces.
3.4 Mixed Procurements: Special Regime Contracts (Section 10)
Where the subject matter of a procurement is mixed and covers more than one special regime - such as defence and security plus light touch, or defence and security plus utilities, etc. or a defence and security contract and a non-special regime contract - and the contracting authority has chosen not to split the different elements into individual contracts (even though the different elements could reasonably be supplied under separate contracts), then that contract will be subject to the full scope of the Act (without any of the exemptions that are applicable to any of the specialist regimes involved).
However, an exemption to this is provided for defence and security contracts in section 10(4): where a mixed special regime procurement contains elements of defence and security then the mixed procurement may be treated as a defence and security contract where there are good reasons for not awarding separate contracts (section 10(4)).
3.5 Tender Notices and Associated Tender Documents (Section 21)
Change: Contracting authorities must provide associated tender documents in accordance with the tender notice for each new procurement. Associated tender documents should supplement the tender notice, and together the notice and documents must provide sufficient information for suppliers to submit a tender or request to participate.
If you are conducting an open procedure, then the associated tender documents must be published or provided in full with the tender notice to any supplier wishing to tender.
However, if you are conducting a competitive flexible procedure, then - as long as sufficient information is provided in the tender notice and associated tender documents to enable suppliers to submit a request to participate - further, more detailed information, including sensitive information, can be shared with shortlisted suppliers at the next stage of the procurement. For relevant defence and security procurements, contracting authorities could include safeguards at the participation stage - such as the requirement to sign a nondisclosure agreement - or conditions of participation relating to the access of sensitive information, to safeguard procurements accordingly.
See Summary Document 3: Procedures, for further information.
4. Competitive Flexible Procedure
The competitive flexible procedure replaces the three multistage procedures provided for in the DSPCRs (regs 17-19).
There are no exemptions or additional provisions for defence and security. Section 3.5 above explains how this procedure may be used effectively when undertaking a defence and security, or otherwise sensitive, procurement.
See Summary Document 4: Competitive Flexible Procedure, for further information.
5. Frameworks and Dynamic Markets
5.1 Frameworks: maximum term (section 47)
A defence and security framework is a framework that provides for the future award of defence and security contracts only.
Change and Exemption: The maximum standard term of a defence and security framework is 8 years. This extends the 7 years previously provided for in DSPCR 2011, and is longer than the standard 4-year period provided for under the Act. This takes into account the complexity of defence and security markets, where contracts may need a longer-term service stability, or lead times are extended.
Other Exemptions:
- Section 47(2) of the Act permits defence and security frameworks to exceed the maximum 8-year limit where a contracting authority considers a longer duration is required due to the nature of the goods, services or works to be supplied under contracts to be awarded under the framework. The contracting authority must publish the rationale for needing a longer framework term as part of their tender or transparency notice.
Examples may include: securing a return on investment for the development of new / innovative defence and security technology, or for the operation of specialist defence and security systems that are expected to exceed 8 years.
- Publication of a contract award notice is not required under section 50(1) (see section 50(6)(b)) for defence and security contracts awarded under a defence and security framework.
See Summary Document 5: Frameworks and Dynamic Markets for further information.
6. Supplier Selection and Exclusions
6.1 Excluding suppliers (Sections 26-27 & 57-58)
Change: The exclusions regime set out in the Procurement Act is different from that which is applied under DSPCR 2011.
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DSPCR 2011 addressed exclusion grounds in regulations 23(1) and 23(4) as the “criteria for the rejection of economic operators”. Where an exclusion ground applied to a particular supplier, contracting authorities had to treat that supplier as “ineligible” and to not select a supplier where they or a person who has powers of representation, decision or control of the supplier had been convicted of certain offences or certain other grounds apply.
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Under the Procurement Act, all contracting authorities must follow the updated exclusion regime, which:
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Expands the range of mandatory and discretionary exclusion grounds that apply to suppliers (in schedules 6 and 7)
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Introduces and explains the terms “excluded” and “excludable” supplier
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Provides a process for assessing supplier self-cleaning
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Gives contracting authorities a discretion to exclude a supplier for discretionary exclusion grounds.
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Introduces rules that cover a supplier’s connected persons, associated persons and sub-contractors.
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Introduces a debarment list, which is a list of suppliers that a Minister of the Crown considers (following an investigation) are excluded or excludable and may be unfit to bid for public contracts.
More information can be found in Summary Document 6 - Supplier Selection.
6.2 National Security
There are two new exclusion grounds based on national security (one mandatory, meaning that a supplier ‘must’ be excluded, and the other discretionary, meaning they ‘may’ be excluded). All contracting authorities must assess their suppliers against these grounds, including for defence and security contracts. Full details can be found in Summary Document 6.
Mandatory Ground (Schedule 6 para 35)
Following an investigation by the newly established National Security Unit for Procurement (or by the Welsh Ministers or Northern Ireland department) a Minister of the Crown can decide to put a supplier on the debarment list under the national security mandatory exclusion ground. This ground allows for suppliers to be put on the debarment list in respect of contracts of a particular description, rather than all contracts, where the supplier or a connected person:
a. pose a threat to UK national security and
b. would pose a threat to UK national security in the delivery of a particular description of public contracts, by reference to, for example:
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The goods, works or services being supplied.
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The location of the supply.
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The contracting authority in question.
Suppliers will be added to the debarment list with a clear reference to the description of contracts (for example by reference to goods, works or services, location of supplier or contracting authority) that the debarment applies to. Contracting authorities must treat the supplier as an excluded supplier for a procurement process that relates to the relevant description of contract. However, where the procurement does not relate to a contract of the relevant description, the supplier is not an excluded supplier on this basis. This applies to all above-threshold contracts, not just defence and security.
Contracting authorities must notify a Minister of the Crown of their intention to exclude a supplier on this ground.
Discretionary Ground (Schedule 7(14) & Section 29)
Following an investigation by NSUP, a supplier may be placed on the debarment list on the discretionary NS exclusion ground. Alternatively, if the contracting authority determines that the supplier or a connected person poses a threat to UK national security, they may exclude the supplier from the procurement without the supplier being on the debarment list. This applies to all public contracts, not just defence and security. Because this is a discretionary exclusion ground, whether or not the supplier is on the debarment list on this ground, contracting authorities must exercise discretion over whether or not to exclude the supplier.
Relevant contracting authorities (which for this purpose excludes Ministers, government departments and the Corporate Officers of the House of Lords and the House of Commons) must notify a Minister of the Crown of their intention to exclude a supplier on this ground and seek the Minister’s agreement to exclude.
6.3 Direct Award (section 41)
Under the Procurement Act it is not generally permitted to award a contract to an excluded supplier.
Exemption: under section 41 ((Direct award in special cases), a contract may be awarded to an excluded supplier where there is “overriding public interest” in doing so. This is defined as:
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Where it is necessary in order to construct, maintain or operate critical national infrastructure (for example water or electricity supply).
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Where it is necessary to ensure the proper functioning of a sector on which the defence, security or economic stability of the UK relies (for example, where the continued manufacture of essential specialist defence equipment would be at risk if the contract is not awarded to the supplier).
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Where failure to do so would put the conduct of military or security operations, or the effective operation of the armed forces or intelligence services at risk.
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Where the direct award is being made on the grounds of extreme and unavoidable urgency and cannot be awarded to, or performed by, a non-excluded supplier within the necessary time frame.
Contracting authorities must be satisfied that the grounds for awarding a contract to an excluded supplier are robust and the overriding public interest test in the Act is met.
See Summary Document 6: Supplier Selection, for further information.
7. - Assessment and Award
Change: Contracts are assessed under the Act based on “Most Advantageous Tender”, rather than “Most Economically Advantageous Tender”, sending a clear message to contracting authorities that tenders do not have to be awarded on the basis of lowest price, or that price must always be weighted higher than non-price criteria. This applies to, and is a change for, all contracts and contracting authorities.
In practice, it will enable contracting authorities working on defence and security contracts to better take into account the specific needs and objectives of those contracts - in their award, and in their operation over the contract lifetime - when awarding them.
Exemption: A contract award notice is not required for the award of defence and security contracts under a defence and security framework.
See Summary Document 7: Assessment and Award, for further information
8. Remedies, Procurement Oversight and the Debarment List
8.1 Remedies
Change: Defence and security contracts will now follow the same remedies regime as all other contracting authorities under the Act.
Exemptions:
Interim Remedies - Section 102(2) sets out a test that must be applied by the courts when they determine whether to make an interim order under 102(1) (including the lifting of the automatic suspension). This includes a public interest test, which specifically includes “avoiding delay in the supply of the goods, services or works provided […] in respect of defence or security interests”.
Post-Contractual Remedies - Section 103 confirms that even where one of the legal conditions to set-aside a contract is met, then - as with interim remedies - there is a need for the courts to consider public interest, including with respect to defence and security.
8.2 Debarment
Investigations under Section 60: Reports (Section 61)
Exemption: If a Minister of the Crown considers it necessary to safeguard national security, then a report produced following a debarment investigation by the Minister may:
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remove information before publication / sharing with the supplier concerned.
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not be published at all.
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not be given to the supplier in question.
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disclosed only to people that the Minister considers appropriate.
Debarment Proceedings and Closed Protocol Material (Section 66)
Exemption: Provisions set out in Part 2 of the Justice and Security Act 2013 (disclosure of sensitive material) can be applied for by the parties to the proceedings or the Minister of the Cabinet Office in debarment proceedings (specifically proceedings for interim relief and appeals) to protect sensitive material and safeguard national security.
This also applies to remedies proceedings in Section 106.
See Summary Document 8: Remedies, Procurement Oversight and the Debarment List, for further information.
9. - Contract Governance
9.1 Contract Modifications (Section 74 & Schedule 8)
Change: The Act contains a list of ten grounds under which it is permitted for contracting authorities to make contract modifications. A similar provision existed in PCR 2015. Under DSPCR 2011, however, contract modifications were only subject to the principles established in EU case law[footnote 1]. Under the Act, defence and security contracts must now meet the conditions of one or more grounds for modification, should the contracting authority wish to modify that contract within its lifetime.
The new permitted grounds for modification, and details of how this process works, are set out in Summary Document 9: Contract Governance (which also includes a number of learning aids to support implementing this new practice).
Additional Provision: Two of the ten specific grounds for modification exist exclusively for defence authority contracts, as set out in Schedule 8(10) and (11):
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Modification is permitted when necessary to take advantage of developments in technology, or to prevent or mitigate against their adverse effects.
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Modification is permitted to ensure the continuous supply of goods, works or services to maintain the operational capabilities, effectiveness, readiness for action, safety, security or logistical capabilities of the armed forces.
Examples of how these grounds may be used (depending on the exact circumstances of the contract) are:
- Modifying a contract for surveillance at sensitive sites, where upgraded equipment is required to protect against developments in counter-surveillance technologies.
This applies to any type of technology, providing it is a defence and security contract procured by a defence authority.
- Modifying a contract for the provision of medical packs to the armed forces overseas, while a new contract is being procured.
This applies to any goods, services or works for the armed forces, for the purpose as described in Schedule 8(11), where the modification is required to ensure continuous supply.
Exemption: Defence and security contracts do not need to publish a contract change notice, or publish a copy of the modified contract.
9.2 Electronic Invoicing: Implied Term (Section 67)
The Act implies a term into every public contract, which requires contracting authorities to accept and process payments for any undisputed invoice in the required electronic form. This requirement already exists within DSPCR 2011.
Exemption: The implied term does not prevent a defence authority from requiring the use of a particular system that involves the payment of fees by a supplier. This provision recognises the specific security needs that may apply to defence authorities, as well as providing for contracts operating in countries where the local market is unable to use a specific platform.
9.3 Implied Payment Terms in Public Contracts (Sections 68 & 73)
Change: these are new provisions that do not exist in DSPCR 2011. The Act implies 30-day payment terms (for valid, undisputed invoices) into every public contract. These terms are also extended to cover payments made under a public contract by a supplier to their own subcontractor, ensuring that 30-day payment terms flow through supply chains.
For more information on implied terms, see the Fact Sheet: Implied terms
9.4 Contract Termination (Sections 78 & 79)
Change: The Act introduces a number of other implied terms that allow for contracts to be terminated in the event of a supplier, its associated person or one of its sub-contractors becoming an excluded or excludable supplier since contract award. This includes the mandatory and discretionary grounds for national security. In doing so, the Act introduces a new provision to address national security risks that may arise during a contract’s lifetime. Contracting authorities (other than Ministers of the Crown, government departments, the House of Commons or the House of Lords) are required to obtain approval from a Minister of the Crown prior to termination.
See Summary Document 9: Contract Governance, for further information on modifications and termination etc.
D. Single Source Defence Contracts
Note: This section is applicable to single source contracts for “defence purposes” only, as defined under Part 2 of the Defence Reform Act 2014.
Schedule 10 of the Procurement Act makes amendments to Part 2 of the Defence Reform Act (DRA) 2014. The purpose of most of these amendments is to provide the power to make changes to the Single Source Contract Regulations (SSCRs) 2014 (as made under the DRA).
The SSCRs provide the framework for pricing non-competed qualifying defence contracts (and defence sub-contracts) to deliver value for money and fair prices.
Delivering the Defence and Security Industrial Strategy and building on experience since 2014 mean that reforms are needed to ensure the regulations continue to function for traditional defence contracts and can be applied across the full breadth of single-source defence work in the future. The reforms will introduce more choice and flexibility to the regulations, whilst speeding up and simplifying the acquisition process.
An overview of key amendments is as follows:
Amendment | Defence Reform Act 2014 | Summary of Key Amendment(s) |
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Definition of qualifying defence contract (QDC) | Section 14 | • Expands the definition of a QDC to include contracts partially for defence purposes, where appropriate. • Provides for the SSCRs to specify circumstances where a contract is and is not to be treated as an existing contract amendment. • Clarifies that amendments to existing contracts not within scope of the DRA will be brought into scope where appropriate. |
Pricing of qualifying defence contracts | Section 15 | Permits the use of alternative method(s) to calculate contract prices and price amendments, in addition to the formula set out in the DRA. |
Contract profit rate | Section 17 | Changes and simplifies the calculation used to determine contract profit rate. |
Reports | Section 25 | Enables flexibility to be introduced into some reporting requirements, where this is appropriate. |
Single Source Regulations Office (SSRO) | Section 35 | Broadens the scope and strengthens the powers of the SSRO (who regulate single-source contracts) referrals and guidance. |
Appendix 1
Defence Definitions
Definitions of key terms in relation to defence and security contracts under the Procurement Act (section 7(7))
“classified information” means information or other material which—
a. in the interests of national security, requires protection from unauthorised access, distribution, or destruction, or from other compromise, and
b. on the basis of those interests, has that protection under the law of any part of the United Kingdom;
“decommissioning”, in relation to equipment, includes—
a. withdrawal of equipment from use;
b. disposal or destruction of equipment;
“development”, in relation to equipment, includes—
a. research allowing for the development of equipment, and
b. development of industrial processes allowing for the production of equipment;
“equipment” includes any part, component or subassembly of equipment;
“maintenance”, in relation to equipment, includes—
a. repair of equipment;
b. modernisation of equipment;
c. modifications to equipment;
d. installing equipment, including after its transport to a new location;
e. testing equipment;
“military equipment” means equipment specifically designed or adapted for military purposes, including—
a. arms, munitions or war material, and
b. any of the military goods, software and technology the export or transfer of which is controlled by virtue of Schedule 2 to the Export Control Order 2008 (S.I. 2008/3231), as amended from time to time;
“sensitive equipment” means equipment for use for security purposes where—
a. the use or supply of the equipment may involve dealing with classified information,
b. the supply of the equipment requires access to a physical site or to other equipment as a result of which classified information is likely to be accessible to the supplier, or
c. the equipment contains classified information;
“sensitive services” means services performed for security purposes where performing the services—
a. involves dealing with classified information, or
b. requires access to a physical site or to equipment as a result of which sensitive equipment or classified information is likely to be accessible to the supplier, and includes the training of personnel to use sensitive equipment;
“sensitive works” means works undertaken for security purposes, where undertaking the works—
a. involves dealing with classified information, or
b. requires access to a physical site or to equipment as a result of which sensitive equipment or classified information is likely to be accessible to the supplier;
“supply”, in relation to equipment, other goods, services or works, includes the development of the equipment, other goods, services or works for the purposes of their supply to the contracting authority;
“wholly military purposes” include—
a. the transportation of military personnel or military equipment;
b. the training of military personnel;
c. the training of other personnel to use military equipment;
d. the construction of military facilities, including military airfields, military storage facilities or facilities for the maintenance of military equipment.
77. Defence and security: Process flows
Note, these process flows apply to contracts that meet the definition of a ‘defence and security contract’ as outlined in section 7(7) of the Procurement Act.
Open procedure
1. Publish planned procurement notice (optional ) or qualifying planned procurement notice (min 40 days before tender notice if using to reduce timescales).
2. Publish preliminary market engagement notice and undertake preliminary market engagement.
You must publish a preliminary market engagement notice if undertaking pre-market engagement, but pre-market engagement is optional.
3. Publish tender notice for open procedure.
4. Observe minimum tender timescales.
5. Determine whether the supplier is an excluded or an excludable supplier.
6. Assess whether the tender is suitable, including:
a. assessing the conditions of participation
b. whether the supplier is not a UK or treaty state supplier and whether you wish to exclude them
c. whether any nominated subcontractor is not a UK or treaty state supplier and whether you wish to exclude them
d. whether the tendered price is abnormally low
e. whether there is evidence of corruption or collusion
f. whether the tender meets all of the requirements
g. whether the tender has breached any procedural requirements
7. Assess award criteria.
8. Issue assessment summaries.
9. Publish contract award notice.
10. Standstill period - 8 working days.
11. Enter into contract (providing no issues were raised during standstill).
12. Publish contract details notice (Inc. contract if over £5m).
13. Could happen at any time during the term of the contract:
a. publish contract payment notice (where applicable - payments over £30k)
b. publish contract performance notice (where applicable)
c. publish payments compliance notice
14. Publish contract termination notice.
Direct award
1. Identify requirement.
2. Ensure direct award ground is met (additional grounds are available for defence and security).
3. Option to publish a transparency notice now.
4. Identify supplier(s).
5. Assess best value (informal competition where appropriate).
6. Determine whether the supplier is an excluded or an excludable supplier.
7. Publish transparency notice if not already done so.
8. Agree terms.
9. Publish contract award notice.
10. Standstill period - 8 working days (unless contract is based on grounds of urgency or to protect life etc).
11. Enter into contract (providing no issues were raised during standstill).
12. Publish contract details notice (Inc. contract if over £5m).
13. Could happen at any time during the term of the contract:
a. publish contract payment notice (where applicable - payments over £30k)
b. publish contract performance notice (where applicable)
c. publish payments compliance notice
14. Publish contract termination notice.
Establishing a defence and security framework
A defence and security framework is a framework which provides for the future award of defence and security contracts (see section 7).
1. Publish planned procurement notice (optional) or qualifying planned procurement notice (min 40 days before tender notice if using to reduce timescales).
2. Publish preliminary market engagement notice and undertake preliminary market engagement.
You must publish a preliminary market engagement notice if undertaking pre-market engagement, but pre-market engagement is optional.
3. Publish tender notice and associated tender documents for frameworks based on competitive procedure (open or competitive flexible procedure).
4. Observe minimum participation or tender timescales.
5. Determine whether the supplier is an excluded or an excludable supplier.
6. Assess whether the tender is suitable, including:
a. assessing the conditions of participation
b. whether the supplier is not a UK or treaty state supplier and whether you wish to exclude them
c. whether any nominated subcontractor is not a UK or treaty state supplier and whether you wish to exclude them
d. whether the tendered price is abnormally low
e. whether there is evidence of corruption or collusion
f. whether the tender meets all of the requirements
g. whether the tender has breached any procedural requirements
7. Assess award criteria.
8. Issue assessment summaries.
9. Publish contract award notice.
10. Standstill period - 8 working days.
11. Enter into contract (providing no issues were raised during standstill).
12. Publish contract details notice (Inc. contract if over £5m).
13. Could happen at any time during the term of the framework:
a. publish contract performance notice (in the event of breach of contract or poor performance of the framework contract as specified in the T&Cs)
14. Publish contract termination notice when framework comes to an end.
Establishing an open framework (initial and every framework in the scheme)
1. Publish planned procurement notice (optional ) or qualifying planned procurement notice (min 40 days before tender notice if using to reduce timescales).
2. Publish preliminary market engagement notice and undertake preliminary market engagement.
You must publish a preliminary market engagement notice if undertaking pre-market engagement, but pre-market engagement is optional.
3. Publish tender notice and associated tender documents for frameworks based on competitive procedure (open or competitive flexible procedure).
4. Observe minimum participation or tender timescales.
5. Determine whether the supplier is an excluded or an excludable supplier.
6. Assess whether the tender is suitable, including:
a. assessing the conditions of participation
b. whether the supplier is not a UK or treaty state supplier and whether you wish to exclude them
c. whether any nominated subcontractor is not a UK or treaty state supplier and whether you wish to exclude them
d. whether the tendered price is abnormally low
e. whether there is evidence of corruption or collusion
f. whether the tender meets all of the requirements
g. whether the tender has breached any procedural requirements
7. Assess award criteria.
8. Issue assessment summaries.
9. Publish contract award notice.
10. Standstill period - 8 working days.
11. Enter into contract (providing no issues were raised during standstill).
12. Publish contract details notice (Inc. contract if over £5m).
13. Could happen at any time during the term of the open framework:
a. contract performance notice (in the event of breach or poor performance of the framework contract as specified in the T&Cs)
14. Repeat process for reopening (linking back to initial notice).
15. Publish contract termination notice when framework comes to an end.
Awarding a defence and security contract under defence and security framework - with competition
1. Invite suppliers to tender (in accordance with the procedure allowed for within the framework).
2. Observe tender timescales (no minimum applies).
3. Determine whether the supplier is an excluded or an excludable supplier.
4. Assess submissions.
5. Issue assessment feedback.
6. Enter into contract.
7. Publish contract details notice (Inc. contract if over £5m).
8. Could happen at any time during the term of the contract:
a. publish contract payment notice (where applicable - payments over £30k)
b. publish contract performance notice (where applicable)
c. publish payments compliance notice
9. Publish contract termination notice.
Note, contract award notice and associated documents are not required for a defence and security contract awarded under a defence and security framework.
Awarding a defence and security contract under defence and security framework - without competition
1. Assess relevant suppliers in accordance with the framework process.
2. Optional: voluntary standstill period - 8 working days.
3. Publish contract details notice (Inc. contract if over £5m).
4. Could happen at any time during the term of the contract:
a. publish contract payment notice (where applicable - payments over £30k)
b. publish contract performance notice (where applicable)
c. publish payments compliance notice
5. Publish contract termination notice.
Note, contract award notice and associated documents are not required for a defence and security contract awarded under a defence and security framework.
Establishing a dynamic market
1. Publish preliminary market engagement notice and undertake preliminary market engagement.
You must publish a preliminary market engagement notice if undertaking pre-market engagement, but pre-market engagement is optional.
2. Publish dynamic market notice (competitive flexible procedure must be used).
3. Assess applications for membership within a reasonable period.
4. Notify suppliers.
5. Publish dynamic market notice with suppliers that have been added.
6. Publish dynamic market notice (if / when modifications are made).
7. Publish dynamic market notice when terminating the dynamic market.
Awarding a defence and security contract under a dynamic market
1. Publish tender notice (competitive flexible procedure must be used).
2. 10 days minimum tender period.
3. Follow process outlined in tender document for the assessment of tenders.
4. Issue assessment summaries.
5. Publish contract award notice.
6. Optional: voluntary standstill period - 8 working days.
7. Enter into contract (providing no issues were raised during standstill if applied).
8. Publish contract details notice (Inc. contract if over £5m).
9. Could happen at any time during the term of the contract: a. publish contract performance notice (where applicable) b. publish payments compliance notice
10. Publish contract termination notice.
78. Defence and security light touch CPV codes: Fact sheet
Light touch CPV codes are set out under schedule 1 of the Procurement Act 2023 Regulations.
Codes in schedule 1 table 1 may be utilised (where applicable to the subject matter of the contract) by all contracting authorities, including defence and security contracts.
CPV codes in schedule 1 table 2 are ‘additional light touch services for certain defence and security contracts’ and apply specifically to defence and security contracts only.
The tables have been set out below to show a direct comparison between light-touch CPV codes relevant to defence and security under PCR 2015, the light-touch (known as Part B) CPV codes listed in DSPCR 2011, and the new regulations.
Table 1: Light touch CPV codes for all contracts and contracting authorities
Light touch CPV codes relevant to defence and security | Procurement Act: light touch CPV codes relevant to defence and security |
---|---|
PCR 2015 - light touch: Applicable to all contracts 75000000-6 Administrative, defence and social security services 80600000-0 Training services in defence and security materials 80610000-3 Training and simulation in security equipment 80620000-6 Training and simulation in firearms and ammunition 80630000-9 Training and simulation in military vehicles 80640000-2 Training and simulation in warships 80650000-5 Training and simulation in aircrafts, missiles and space crafts 80660000-8 Training and simulation in military electronic systems 75211300-1 Foreign military aid related services 75220000-4 Defence services 75221000-1 Military defence services 75222000-8 Civil defence services 75240000-0 Public security, law and order services 75241000-7 Public security services 79700000-1 Investigation and security services 79710000-4 Security services 79711000-1 Alarm monitoring services 79713000-5 Guard services 79714000-2 Surveillance services |
Procurement Act 2023 Regulations Schedule 1, Table 1. Applicable to all contracts 75000000 Administration, defence and social security services 80600000 Training services in defence and security materials 80610000 Training and simulation in security equipment 80620000 Training and simulation in firearms and ammunition 80630000 Training and simulation in military vehicles 80640000 Training and simulation in warships 80650000 Training and simulation in aircrafts, missiles and space crafts 80660000 Training and simulation in military electronic systems 75211300 Foreign military-aid-related services 75220000 Defence services 75221000 Military defence services 75222000 Civil defence services 75240000 Public security, law and order services 75241000 Public security services 79700000 Investigation and security services 79710000 Security services 79711000 Alarm-monitoring services 79713000 Guard services 79714000 Surveillance services |
Table 2: light touch CPV codes applicable to defence and security only
Light touch CPV codes relevant to defence and security | Procurement Act: light touch CPV codes relevant to defence and security |
---|---|
DSPCR 2011 - Part B Services: Hotel & restaurant services (From 55100000-1 to 55524000-9 and from 98340000-8 to 98341100-6) Supporting and auxiliary transport services (From 63000000-9 to 63734000-3 (except 63711200-8, 63712700-0, 63712710-3), from 63727000-1 to 63727200-3 and 98361000-1 Legal services (From 79100000-5 to 79140000-7) Personnel placement and supply services (not employment contracts) (From 79600000-0 to 79635000-4 (except 79611000-0, 79632000-3, 79633000-0) and from 98500000-8 to 98514000-9) Health and social services (79611000-0 and from 85000000-9 to 85323000-9 (except 85321000-5, 85322000-2) Other services |
Procurement Act 2023 Regulations Schedule 1, Table 2. Additional light touch services for certain defence and security contracts. Hotel and restaurant services 98340000 - 98341100 Support and auxiliary transport services 63000000 - 63122000, 63500000 - 63524000, 63700000 - 63734000 and 98361000 Personal placement and supply services but not employment contracts 79600000 - 79635000 (except 79611000) and 98510000 - 98512000 Procurement Act 2023 Regulations Schedule 1, Table 1: Light Touch Services Applicable to all contracts Legal Services 79100000 - 79140000 Health & social services 79611000, 85000000 - 85323000 (except 85321000, 85322000) Hotel & restaurant services 55100000-1 to 55524000-9 Miscellaneous services 50116510 and 71550000 |
79. Defence and security transparency requirements
This content applies only to contracts that meet the definition of a ‘defence and security contract’ as outlined in section 7(1) of the Procurement Act. It covers all of the transparency publication requirements that apply across the act, and maps these against the notices published when undertaking a procurement process under DSPCR 2011.
Procurement lifecycle stage | Ref. | Notice name | Publication requirement (in the regulations some notices are listed as having separate versions depending on the procurement process, e.g. open, competitive flexible and below-threshold “version” of the tender notice.You must complete different fields in the core notices, and / or submit different information, depending on the process followed. | Change from UCR 2016 |
---|---|---|---|---|
Plan | UK1 | Pipeline notice | Mandatory for organisations with £100m+ spend per annum. Publish 12-month forward-look at planned procurements of £2m+. | N/A - new notice |
Define | UK2 | Preliminary market engagement notice | Optional and best practice, must be published where pre-market engagement is anticipated or has taken place (or reason for non-publication explained in tender notice). | N/A - new notice |
Procure | UK3 | Planned procurement notice | Optional and best practice, advises the market of an upcoming procurement. A qualifying planned procurement notice can reduce tender timescales to 10 days. | F16: prior information notice |
Procure | UK4 | Tender notice | Mandatory for open, competitive flexible and regulated below-threshold procurements; to establish a framework; to award a contract under an existing dynamic market. | F17: contract notice (defence and security contracts) |
Procure | UK5 | Transparency notice | Mandatory when undertaking a direct award (publish prior to award). | F15: voluntary ex ante transparency (VEAT) notice |
Procure | UK6 | Contract award notice | Mandatory - communicates the outcome of the procurement and commences standstill prior to awarding a contract. This is not required for defence and security contracts awarded under a defence and security framework. | N/A - new notice |
Procure | UK7 | Contract details notice | Mandatory - details of the awarded contract (including the redacted contract, for public contracts £5m+). | F18: contract award notice (defence and security contracts) |
Manage | UK8 | Contract payment notice | Mandatory - details of payments over £30,000 made under a public contract (published quarterly). | N/A - new notice |
Manage | UK9 | Contract performance notice |
Mandatory to report: a. KPI scores for public contracts valued £5m+ (annually) b. poor supplier performance / breach of contract (within 30 days) |
N/A - new notice |
Manage | UK10 | Contract change notice | Defence and security contracts do not need to publish a contract change notice or a copy of the contract as modified. | N/A |
Manage | UK11 | Contract termination notice | Mandatory when a public contract ends. | N/A - new notice |
Procure | UK12 | Procurement termination notice | Mandatory where, after publishing a tender or transparency notice, the process is terminated without awarding a contract. | F14: corrigendum notice |
Procure | UK13-16 | Dynamic market notice | Mandatory for advertising, establishing, changing or terminating a dynamic market. | N/A - new notice |
Manage | UK17 | Payments compliance notice | Mandatory - details of contracting authority performance against 30-day payment terms (twice annually). | N/A - new notice |
80. New obligations for defence and security: Fact sheet
This table shows the new obligations that contracts which were previously procured under DSPCR 2011 must comply with under the Procurement Act.
Topic | DSPCR 2011 | New obligations under the Procurement Act |
---|---|---|
Exemption for intelligence agencies | N/A - new. |
Intelligence agencies (section 2(5)(b)) The Act includes a new exemption for specific intelligence service organisations. |
Lots | N/A - there is no provision for lots under DSPCR 2011. |
Duty to consider lots (section 18) Defence and security contracts are now subject to the duty to consider, prior to publishing a tender notice, whether a contract could be divided into lots. If the contract could be divided into lots but you do not do so, reasons for this must be recorded. See Summary Document 3 for details. |
Direct award | Negotiated procedure without prior publication of a notice (reg. 16). |
Direct award (section 41 & schedule 5) The Direct Award procedure requires publication of a transparency notice in almost all cases. Specific grounds are provided for defence and security contracts, in addition to the general rules. Defence and security contracts must follow the process for direct award as set out in the Act. See Summary Document 3 for details. |
Open procedure | N/A - there is no provision in DSPCR 2011 for a single stage “open” procurement procedure. |
Competitive tendering procedures (section 20(2)(a)) A single stage “open procedure” is now available for all contracting authorities to use, including for defence and security contracts. See Summary Document 3 for details. |
Multistage procurements | The Restricted Procedure (Reg. 17), The Negotiated Procedure (Reg 18), The Competitive Dialogue Procedure (Reg 19). |
Competitive tendering procedures (section 20(2)(b)) The competitive flexible procedure replaces the three multistage procedures provided for in DSPCR 2011. See Summary Document 4 for details. |
Supplier exclusions |
Criteria for the rejection of economic operators (reg. 23(1) & 23(4)). These clauses set out the grounds under which suppliers would be “ineligible” should a ground apply to them or their connected persons. |
Exclusions (Sections 26-27 & 57-58) The exclusions regime applies to all contracting authorities under the Procurement Act. The mandatory and discretionary grounds cover a broader range of offences and circumstances, and also apply to associated persons and subcontractors. Defence and security contracts must follow the process for supplier exclusions as set out in the Act. See Summary Document 6 for details. |
Frameworks |
Frameworks (reg 20(10)). A framework may not exceed 7 years. |
Frameworks: maximum term (section 47(4)(a)) The length of defence and security frameworks is extended to 8 years. |
Contract modifications |
N/A - previous rules on amending contracts were derived from retained EU case law (Pressetext), where a substantial / material change would require a new procurement procedure. Note - Pressetext defined a material change as: i. one that would have changed the outcome of the original procurement; ii. one that would result in a “considerable” change in scope; iii. one that would change the economic balance in favour of the contractor. |
Contract modifications (section 74 & schedule 8) The Act contains ten grounds under which a contract may be legally modified. Most grounds apply to all contracting authorities, but there are additional grounds for defence and defence authority contracts. Defence and security contracts must follow the process for modifying a contract as set out in the Act. See Summary Document 9 for details. |
Below-threshold procurements | N/A - the DSPCRs do not contain provisions for contracts that are below the thresholds set out in reg.9. |
Below threshold procurements (sections 84-88) The Procurement Act contains provisions for contracts that are below the thresholds set out in schedule 1 - “below-threshold contracts”. Defence and security contracts must follow the process for below-threshold contracts as set out in the Act. See Summary Document 1 for details. |
Implied payment terms | Reg. A66 - the regulations imply a term into every contract requiring that valid, undisputed invoices are accepted electronically. |
Implied payment terms in public contracts (section 68) The Act implies 30-day payment terms (for valid, undisputed invoices) into every public contract. This provision is also extended to cover payments made under a public contract by a supplier to their own subcontractor, ensuring that 30-day payment terms flow through supply chains. See Summary Document 9 for details. |
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European Court of Justice case C-454/06, 2008 - Pressetext ↩