Procurement Policy Note 01/18: Supply Chain Visibility · first published 10 April 2018
Procurement Policy Note (PPN) 01/18 requires central government departments, their Executive Agencies, and Non-Departmental Public Bodies (NDPBs) to take new steps to make their supply chains more transparent. Specifically, prime contractors will need to report on subcontracting spend, and subcontracting opportunities must be made more visible. A standard reporting template is attached to the note to support this. The rules apply to new procurements starting from 1 May 2018. This is relevant to small businesses because greater visibility of subcontracting opportunities means more chances to find and bid for work as a subcontractor within larger government contracts. Note: this PPN binds central government only — it does not automatically apply to local authorities or other public bodies, though wider adoption may follow.
WHO THIS APPLIES TO
THE ENKII VIEW
This PPN is a meaningful win for SMEs (small and medium-sized enterprises) looking to enter government supply chains as subcontractors — it pushes prime contractors to surface opportunities that were previously hard to find. The reporting template requirement also means there is now a paper trail of subcontracting spend, which could help SMEs demonstrate their track record. However, because full document text was not available, the precise detail of what must be reported or published — and any thresholds — is not confirmed here.
1. Actively monitor central government procurement portals and prime contractor websites for newly published subcontracting opportunities — PPN 01/18 requires these to be made more visible from May 2018 onwards.
SMEs interested in subcontracting on central government contracts — The PPN introduces measures to increase the visibility of subcontracting opportunities in government supply chains, meaning more opportunities should now be findable through official channels.
2. Ask your prime contractor whether they are using the PPN 01/18 reporting template, and ensure your spend and contribution are captured accurately within it.
SMEs already working as subcontractors on central government contracts — The PPN introduces a reporting template for supply chain spend visibility; being correctly recorded builds your track record as a government supply chain participant.
3. Build a clear subcontracting plan into your bids that maps how subcontracting opportunities will be advertised and tracked, in line with the new supply chain visibility requirements.
SMEs bidding to become prime contractors on central government work — In-scope buyers must apply these provisions in new procurements from 1 May 2018, so demonstrating compliance-readiness in your bid will be expected.
Every rule below quotes the official document verbatim.
The PPN applies to all Central Government Departments, their Executive Agencies, and Non-Departmental Public Bodies (NDPBs). (Central government departments, Executive Agencies, and NDPBs)
“This note applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.”
In-scope organisations must apply this PPN's provisions in new procurements commencing from 1 May 2018. (Central government departments, Executive Agencies, and NDPBs — new procurements from 1 May 2018)
“In-Scope Organisations must apply the provisions of this Procurement Policy Note in new procurements commencing from 1 May 2018.”
The PPN introduces measures to increase visibility of subcontracting opportunities in government supply chains and to provide greater visibility of supply chain spend. (Central government supply chains, new procurements from 1 May 2018)
“new measures to increase the visibility of subcontracting opportunities in Government supply chains and to provide greater visibility of supply chain spend”
A reporting template is included as part of the new measures for supply chain spend visibility. (Central government departments, Executive Agencies, and NDPBs)
“The measures include a reporting template, which is also attached.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.