Procurement Policy Note provides guidance on supplier relief exit strategy in next phase of response to coronavirus (COVID-19)

Article summary

The Cabinet Office has issued Procurement Policy Note 04/20: Recovery and Transition from COVID-19 (PPN 04/20) on 9 June 2020. The government previously issued guidance highlighting the risk of coronavirus (COVID-19) to public contract suppliers who may struggle to meet their obligations, maintain cashflow, and retain staff and subcontractors. PPN 04/20 provides updated guidance for contracting authorities on supplier relief and during the next phase of the government's coronavirus response, ie the recovery strategy. It updates and builds on the previous guidance contained in Procurement Policy Note 02/20: Supplier relief due to COVID-19 (PPN 02/20), which expires on 30 June 2020. From 1 July 2020, contracting authorities are advised to work in partnership with suppliers to transition from a relief situation to a more sustainable operating model. In some cases, this exercise may result in contract termination.