The first Procurement Policy Note of the year was published today. 

Concerning the treatment of contracts with Russia and Belarus, it applies to all Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies (In Scope Organisations).  It advises that other public sector contracting authorities should consider applying the approach set out in this PPN.

The PPN confirms that organisations should take a proportionate and risk-based approach to reviewing their contract portfolio, and that they should:

  • Identify any contracts where the prime contractor is a Russian or Belarusian supplier.
  • Where a Russian or Belarusian prime contractor is identified, they should consider terminating that contract in accordance with the terms of the contract i.e. following a legally compliant process.
  • Only proceed to terminate a contract if an alternative supplier can be sourced in line with value for money, affordability and with minimal disruption to public services.

It goes on to detail what a “Russian or Belarusian prime contractor’ means and the reasons contract teams should consider termination. The process should ensure the terms of the contract and the implications of termination are considered and documented assessments should be included. The PPN advises that recommendations should be approved by the appropriate commercial lead.

You can read the whole document on the .Gov website.