Recommendation 42

HM Government Not Addressed

The Procurement Act outlines the process for considering exclusions which contracting authorities must follow. The Act distinguishes between mandatory and discretionary exclusion grounds. Mandatory exclusion grounds cover the most serious, high risk scenarios. Discretionary exclusion grounds represent situations that may pose unacceptable risks. Where a discretionary exclusion ground applies, contracting authorities have an option to exclude suppliers on a case-by-case basis. It is the responsibility of contracting authorities to consider whether bidders meet the grounds for exclusion, and if appropriate to then exclude them from a competition. Discretion provides contracting authorities with the flexibility to consider the list of factors that are relevant based on the procurement in question. As the list of factors and potentially applicable exclusion grounds that are relevant will change, based on the procurement and the relevant supplier’s circumstances, it would not be appropriate to set a general baseline as to how frequently suppliers should be excluded on the basis of discretionary grounds. Contracting authorities must notify the Procurement Review Unit in the Cabinet Office, via the notification form on the PRU landing page on gov.uk, within 30 days of excluding a supplier, stating the exclusions ground.