PPN 06/20

Cabinet Office procurement policy note issued in June 2020 providing guidance on managing supplier relief applications during the COVID-19 pandemic and ensuring contract continuity.

What it covers

PPN 06/20 was issued by the Cabinet Office on 26 June 2020 to provide comprehensive guidance on managing supplier relief applications during the COVID-19 pandemic. The note addressed how contracting authorities should handle requests from suppliers experiencing financial difficulties due to pandemic restrictions and lockdown measures.

The guidance covered assessment criteria for relief applications, documentation requirements, and decision-making processes. It emphasised the need to balance supporting viable suppliers with protecting public value and avoiding unnecessary financial exposure.

Key requirements

The PPN established a structured approach requiring suppliers to demonstrate genuine COVID-19 impact through evidence such as management accounts, cash flow forecasts, and details of government support already received. Contracting authorities were instructed to assess each case individually, considering factors including strategic importance of the service, supplier's pre-pandemic financial health, and availability of alternative suppliers.

Relief measures could include advance payments, revised payment terms, contract variations, or temporary cost adjustments. The note stressed that any support should be proportionate, time-limited, and subject to regular review.

Implementation considerations

Authorities were required to maintain detailed records of all decisions and ensure appropriate governance arrangements were in place. The guidance emphasised transparency requirements and the need to consider state aid implications where applicable.

PPN 06/20 formed part of the government's broader COVID-19 procurement response, working alongside other emergency measures to maintain essential public services during unprecedented circumstances while ensuring responsible use of public funds.