Procurement in a nutshell – standard Selection Questionnaire template

The SQ replaces the standard Pre-Qualification Questionnaire (PQQ) and the policy note supersedes previous guidance on supplier selection and PQQs in PPN 03/15. Contracting authorities (CAs) should immediately begin using the SQ in place of the PQQ.

Alignment with the ESPD

The update was prompted by the need to bring supplier selection in line with the requirements of the European Single Procurement Document (ESPD) and to incorporate the exclusion grounds listed in the Public Contracts Regulations 2015.

The form of the SQ

The SQ has been structured in three parts:

• Part 1 – Basic information about the supplier is covered by this part, such as contact details, trade memberships, details of parent companies, group bidding, etc.
• Part 2 – The second part contains the self-declaration regarding whether or not any of the exclusion grounds apply.
• Part 3 – The final part covers the self-declaration regarding whether the financial standing and technical capability selection criteria are met by the company.

Points of action for CAs

The following are the practical matters which Contracting Authorities should note when employing the new SQ:

• CAs are required to inform potential suppliers of how they can access the SQ and submit a completed version. There are three ways in which to do this:
  • Inclusion of all three parts of the SQ within the procurement documents;
  • Guide potential suppliers to access the ESPD electronically through the Commission’s E-ESPD service and provide the standard selection questions separately in the procurement documents; or
  • Provide potential suppliers with access to an e-procurement system that asks all the same questions as in the SQ along with any procurement specific questions.
• Self-declarations must be received as part of the selection stage evaluation. A Part 1 and Part 2 declaration is mandatory from:
  • Potential suppliers, to declare that they have not breached any of the exclusion grounds; and
  • Organisations that potential suppliers rely on to meet the selected criteria such as parent companies, affiliates, associates or essential subcontractors.
• Self-cleaning must be available to potential suppliers: a potential supplier which has breached any exclusion grounds must be given the opportunity to explain what they have done in terms of rectification.
• At the early stages of procurement CAs must accept self-assessment of compliance from potential suppliers. Evidence should only be requested once the winning bidder(s) have been identified, prior to the contract award. However, if the CA considers it necessary, evidence can be requested at an earlier stage of the process.
• Deviations from Part 1 and Part 2 of the SQ are prohibited. Part 3 can be altered, provided that the CA complies with particular reporting requirements which are outlined in the guidance to the policy note.
• Self-certifications via the EU ESPD template must be accepted by CAs, even in the event that they take a different format adopted by another Member State.
• CAs can evaluate EU ESPD template responses received from potential suppliers from other Member States alongside the standard SQ submissions from potential UK suppliers. Instructions for the selection questions for the procurement and the exclusion criteria will be the same for all potential suppliers.

Why is this important?

The ESPD was introduced to lessen the administrative burden placed on companies when presenting their eligibility to bid for contracts. Its effect is that only the winning company submits all the documentation which proves the company’s qualification for the contract. It is thought that this will be a benefit particularly to small and medium-sized enterprises.

From 26 January 2016, CAs have been required to accept the ESPD from bidders as part of the selection process. CAs will be aware of the obligation in regulation 59 of the PCR 2015 requiring them to simply accept ESPDs sent to them by bidders. PPN 8/16 now gives form to how the ESPD works in practice by aligning UK process on supplier selection with the requirements of the ESPD.

The key message is that CAs should ensure that they understand the contents of PPN 8/16 and comply with its contents immediately. Failure to do so could amount to a technical breach of the PCR 2015, with undesirable consequences. The policy note should be circulated within CAs and specifically brought to the attention of those with a procurement role.

How can I find out more?

If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0191 204 4464.