Here are some tips for your Trust to ensure you have been fully compliant with the Procurement Policy Note 02-20 (PPN) in the rush to get everything sorted for Covid-19 and Easter. Hopefully as you come up for air you will have time to ensure that all decisions that have been made are properly documented. We have set out below some key areas where decisions that have been made need to be properly evidenced in a written form, together with a few other areas that must not be ignored.
What do you need to document:
o Any profit margin
o Payment where there is no contractual volume commitment.
o Payments to suppliers who are underperforming and subject to an existing improvement plan unless carefully justified
Don’t forget that the contract should return to its original terms as soon as the impact of the COVID-19 outbreak on the relevant contract is over (Pg 5). Also, Pg8 states that payments in advance of need are capped at 25% of the value of the contract and can only apply until the end of June 2020. You should carefully consider your catering contracts (and others) on this basis due to lower values during school holidays distorting annual contract value.
PPN model interim payment terms
PPN FAQ s
Financial support guidance - furlough