Procurement Bill strengthened to protect national security

The first of these measures is establishing a National Security Unit for Procurement. The new team, which is to be based in the Cabinet Office, will investigate suppliers who may pose a risk to national security and also assess whether companies should be barred from public procurements.

There will be new powers to ban suppliers from specific sectors, such as areas related to defence and national security, while allowing them to continue to win procurements in non-sensitive areas.

The second measure is that the Government is committing to publish a timeline for the removal of surveillance equipment produced by companies subject to China’s National Intelligence Law from sensitive central Government sites.

Jeremy Quin, Minister for the Cabinet Office and Paymaster General, said: “Protecting the nation’s security has always been the Government’s foremost job. These new measures will protect our sensitive sectors from companies which could threaten national security and are a firm deterrence to hostile actors who wish to do Britain harm. This builds on the robust rules within the Procurement Bill to hold suppliers to account and ensure that the taxpayer is protected.”

Full range of expertise

The new National Security Unit for Procurement will draw on a full range of expertise within Government and respond swiftly to emerging threats, such as companies looking to win public contracts in order to gain access to sensitive information or sites which could be used to compromise Government and society. The specialist team will work across Government, including liaison with the intelligence agencies.

In order to further strengthen national security measures, the Government is introducing new and context-specific mandatory debarments on national security grounds. This means that the Government will be able to ban those suppliers posing a risk to national security from specific types of contracts.

The commitment to publish a timeline for the removal of relevant surveillance equipment from sensitive sites builds on action taken last year to halt the installation of new equipment on the Government estate. It will provide the necessary reassurance that departments are removing surveillance equipment from sensitive sites.

Stronger position

Cabinet Office Minister Alex Burghart explained: “The Procurement Bill puts the Government in a stronger position to derive the best deal for taxpayers, while prioritising growth by cutting red tape and removing barriers for small businesses.”

Burghart continued: “It’s absolutely right that we continue to look at ways in which to strengthen central Government rules when it comes to national security. I have no doubt that these additional measures will ensure the Procurement Bill delivers on its objective to have a robust and modern procurement process in place which delivers for the British people.”

The Procurement Bill, which is to have its Report Stage in the House of Commons in the week beginning 12 June, will make it easier for SMEs to win more of the £300 billion of goods, services and works that the Government buys each year.

It introduces new rules to help the Government procure in emergency situations, such as during health pandemics, ensuring that contracting authorities can act quickly and transparently to buy vital goods.

These simpler rules take advantage of the freedoms realised now that Britain has left the European Union, as well as strengthening the Government’s ability to exclude suppliers who may have previously underperformed on Government work. The rules will help to exclude suppliers, both in the UK and overseas, who are involved in modern slavery, in turn further clamping down on this abhorrent practice.

The Bill also confirms that value for money remains paramount during contracting, while encouraging buyers to take into account other relevant wider social and environmental considerations the supplier may bring.

Risk profile

The new provisions will allow Government ministers to consider the risk profile of a particular supplier, supported by the new National Security Unit for Procurement, and act accordingly. Certain types of contracts can be identified on the debarment list that the supplier must not be allowed to bid for. This can be identified by the type of goods, services or works or otherwise by reference to certain contracting authorities or locations.

The new unit will be proactively monitoring the supplier landscape and recommend to ministers which suppliers should be investigated for debarment. The outcome of that investigation may lead to an entry on the debarment list. The proactive approach will be highly advantageous in minimising the risk posed by some suppliers and make it easier for contracting authorities to implement national security exclusions.

Interestingly, the Government is also going to commit to publishing a timeline for the removal of surveillance equipment produced by companies subject to China’s National Intelligence Law from sensitive central Government sites. By committing to this timeline, the Government is “providing reassurance and urgency” around the removal plans.