Procurement Policy Note 03/15: reforms to make public procurement more accessible to SMEs · first published 18 February 2015
This 2015 Procurement Policy Note (PPN 03/15) sets out three reforms under Part 4 of the Public Contracts Regulations 2015, which came into force on 26 February 2015. First, buyers can no longer run a pre-qualification stage for contracts below the EU procurement thresholds, removing a common early barrier for small firms. Second, contracting authorities must include provisions ensuring invoices are paid within 30 days all the way down the supply chain — not just to the prime contractor. Third, all public-sector contract opportunities must be advertised in one place: Contracts Finder. Taken together, these rules were designed to level the playing field so small businesses can compete more easily for public work.
WHO THIS APPLIES TO
THE ENKII VIEW
Removing pre-qualification questionnaires (PQQs) below EU thresholds is the biggest practical win here — it cuts the paperwork burden that historically knocked out small firms before evaluation even started. The 30-day payment obligation through the supply chain is valuable for cash-flow, but only if SMEs know to look for it in contract terms and escalate when it is breached. Contracts Finder as a single advertising portal makes opportunity-spotting simpler, but small businesses still need to check it regularly and set up alerts to benefit.
1. If a buyer asks you to complete a pre-qualification questionnaire (PQQ) on a sub-threshold contract, challenge it — the Public Contracts Regulations 2015 prohibit this stage for those contracts. Refer the buyer to PPN 03/15 and the requirements on pre-qualification questionnaires guidance.
SMEs bidding for any public-sector contract below EU thresholds — The document explicitly requires 'removing a pre-qualification stage for procurements below the EU thresholds', so a PQQ on such a contract is non-compliant.
2. Before signing a subcontract, check that it contains a 30-day payment clause. If it does not, flag this to the prime contractor and cite the Public Contracts Regulations 2015 requirement for prompt payment provisions through the supply chain.
SMEs working as subcontractors in public-sector supply chains — Contracting authorities are required to include provisions ensuring prompt payment through the supply chain; as a subcontractor you are entitled to see this protection in your contract terms.
3. Register on Contracts Finder (www.contractsfinder.service.gov.uk), set up keyword alerts for your sector, and check it regularly — it is now the single mandatory place where public-sector opportunities must be advertised.
All SMEs looking to win public-sector work — The regulations introduced 'a requirement to advertise public sector opportunities in one place (Contracts Finder)', making it the authoritative source for new opportunities.
Every rule below quotes the official document verbatim.
Contracting authorities must remove the pre-qualification stage for procurements below the EU thresholds — small firms cannot be screened out before evaluation on sub-threshold contracts. (All contracting authorities, sub-EU-threshold contracts, from 26 February 2015)
“removing a pre-qualification stage for procurements below the EU thresholds”
Contracting authorities must include provisions in contracts to ensure prompt payment (30 days) flows through the supply chain, not just to the prime contractor. (All contracting authorities, from 26 February 2015)
“a requirement for contracting authorities to include provisions to ensure prompt payment through the supply chain”
All public-sector contract opportunities must be advertised in one place: Contracts Finder. (All contracting authorities, from 26 February 2015)
“a requirement to advertise public sector opportunities in one place (Contracts Finder)”
These reforms are implemented in Part 4 of the Public Contracts Regulations 2015, which primarily came into force on 26 February 2015. (All contracting authorities)
“These reforms are implemented in Part 4 of the new Public Contracts Regulations 2015. The Regulations will, primarily, come into force on 26 February 2015.”
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.