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Cabinet Office publishes PPN 02/20: Supplier relief due to COVID-19
Practical Law UK Legal Update w-024-6246 (Approx. 4 pages)
Cabinet Office publishes PPN 02/20: Supplier relief due to COVID-19
| Published on 25 Mar 2020 • England, Wales |
The Cabinet Office has published Procurement Policy Note 02/20: Supplier relief due to COVID-19, which provides information and guidance for public bodies concerning payment of their suppliers to ensure service continuity during and after the 2019 novel coronavirus disease (COVID-19) outbreak, and that at risk suppliers remain in business.
On 20 March 2020, the Cabinet Office published Procurement Policy Note 02/20: Supplier relief due to COVID-19 (PPN 02/20). It sets out information and guidance for public bodies concerning payment to suppliers to ensure service continuity during and after the 2019 novel coronavirus disease (COVID-19) outbreak, and that suppliers remain in business.
PPN 02/20 suggests that contracting authorities should, among other measures:
- Urgently inform suppliers who they believe are "at risk" of financial difficulty that they will continue to be paid as normal until at least the end of June, even if service delivery is disrupted or suspended.
- Adopt the most appropriate payment measures to support supplier cash flow.
- Ensure invoices submitted by suppliers are paid immediately on receipt.
The Cabinet Office states that suppliers should agree to act on an "open book basis" and make cost data available to the contracting authority during this period. They should continue to pay employees and "flow down" funding to subcontractors.
PPN 02/20 has immediate effect until 30 June 2020.