This briefing focuses on the key changes made to the Provider Selection Regime. Please click here to read our briefing on the changes made to the threshold amounts in the Act and the Procurement Regulations 2024.

Key amendments to the Provider Selection Regime

The PR 2025 amend the PSR to incorporate references to the Central Digital Platform, the new Debarment List and Excluded/Excludable Supplier provisions. The PSR cross-references to the definitions of Excluded/Excludable Suppliers used in the Act (although noting that any references to associated persons are omitted, so it is not "like for like") but uses the terms "excluded/excludable provider" to mirror the language used elsewhere the PSR.

The key amendments in relation to excluded/excludable providers include:

• Regulation 20 is amended in line with the Act requirement not to award a contract or framework to an excluded provider, unless, on an exceptional basis, there are overriding reasons relating to the public interest, including public health. As with the Act, the authority has the discretion as to whether to exclude a provider that is an excludable provider.

• New Regulation 20A requires authorities to request information about whether a provider intends to sub-contract the performance of all or part of the contract, and seek to determine whether any intended sub-contractor is on the Debarment List as part of the procurement process. If the authority considers that a provider intends to sub-contract to a sub-contractor that is an excluded provider, the authority must exclude the lead provider from the procurement process (unless, as above, there are overriding reasons not to). In the event that a provider intends to sub-contract to a sub-contractor that is an excludable provider, the authority has the discretion as to whether to exclude the lead provider from the procurement process. Prior to excluding the lead provider, the authority must give the lead provider the opportunity to find an alternative sub-contractor.

• Authorities under the PSR are now also required to notify the Cabinet Office if they have excluded an excluded or excludable provider from a procurement process under Regulation 20 or 20A of the PSR, or where they are aware of a sub-contractor having been replaced under regulation 20A of the PSR within 30 days of such exclusion or replacement.

Practical considerations

Authorities conducting PSR procurements will have to use the Central Digital Platform, check the Debarment List and ensure that bidders are asked to provide relevant information for authorities to determine whether they, and their sub-contractors, are an excluded or excludable provider. Authorities will want to ensure that they apply their discretion in terms of excludable suppliers consistently across PSR and Act procurements and may need to update their own internal guidance on this point.

Contracts which are procured under the PSR should include a right for the authority to terminate where the supplier or its subcontractor becomes an "excluded supplier" or an "excludable supplier" during the contract term. While this right will be implied into PSR contracts, it is good practice to add this as an explicit termination right to avoid any dispute and in order to address any subsequent consequences of termination.

We are working with clients to update their internal policies and guidance, tender documentation and template contracts to reflect the new legislation. Please contact DACB's procurement team for further information.