Decoding the Procurement Specific Questionnaire (PSQ)

Introduced as part of changes ushered in by the Procurement Act 2023, the Procurement Specific Questionnaire (PSQ) will replace the Standard Selection Questionnaire (SQ). A template version of the new pre-qualifying document was shared by the Government Commercial Function late last month.

With the Procurement Act due to come into force 24 February, we analyse the main changes introduced by the PSQ and best practice approaches for bidders going forward.

What is the Procurement Specific Questionnaire?

Ultimately, the PSQ will function in a similar manner to the SQ and to the PQQ before it. Serving as a pre-qualifying document, the PSQ will allow contracting authorities to receive core supplier information, exclusions and debarment information, and conditions of participation from bidder organisations.

The PSQ is split into the following core sections:

• Part 1 – confirmation of core supplier information: Requires provision of basic company information and data responses about your organisation – which includes economic and financial standing, connected person information and exclusion grounds.
• Part 2 – additional exclusions information: Listing of associated persons or organisations to satisfy the conditions of participation – for example, members of a special purpose vehicle if you are bidding as a consortium. Part 2B also requires a list of all subcontractors used to deliver works and services.
• Part 3 – conditions of participation: Confirming bidders meet financial conditions of participation (e.g. minimum turnover requirements), necessary levels of insurance cover and contract examples substantiating their technical and professional ability. Other short narrative responses in Part 3A, such as subcontractor management, data protection processes and health and safety measures, have been retained from the SQ.

The PSQ will be closely linked to a new central digital platform (CDP) rolled out by the government. The majority of information populated in Part 1 will derive from this centralised database.

However, details in Parts 2 and 3 must be specific to the particular procurement exercise. The central government’s decision not to integrate elements with narrative responses, such as technical and professional ability, health and safety and data protection into the CDP, indicates to bidders that responses to these criteria must be tailored to each individual tender.

Although little is known currently about the CDP, all prospective suppliers will be required to register and provide standard company information through the service – with a ‘unique identifier’ issued to each organisation, which may be their Companies House reference number.

What benefits will the Procurement Specific Questionnaire introduce?

Similar to other innovations produced by the Procurement Act, the main benefit of the PSQ is to simplify and streamline existing procurement processes. Some immediately apparent benefits of utilising the PSQ include:

• Reduced replication of information: By leveraging information held on the new CDP and unique identifiers for each organisation, the PSQ will reduce form-filling and time spent on repeat administration tasks during the tender process
• Tailored question set and conditions of participation: Similar to additional questions included on the SQ, Part 3A of the PSQ allows authorities to include additional technical questions to assess supplier capability. For example, a construction contract may include a question around supplier experience in discharging duties under the Construction (Design and Management) Regulations 2015.
• Dedicated section for central government tenders: Part 3B is dedicated to questions specific to tender procedures run by central government bodies, e.g. Crown Commercial Services, to ensure compliance with relevant procurement policy notes (PPNs).
• Greater transparency and oversight: Equally, by standardising the criteria for participation and exclusion, the government’s aim of making the tender process more accessible (particularly for SME organisations) is supported.

As such, the new PSQ will support a clear, streamlined and straightforward pre-qualification process as the first step of tendering.

Will other pre-qualifying documents still be used?

Importantly, guidance included in the PSQ emphasises it is not a legislative requirement for contract authorities to use, and is instead just advisory. This is contrary to the SQ, where Regulation 59 provided statutory guidance on its deployment.

Consequently, this means that there are likely to be other pre-qualification documents used once the PSQ is introduced, including:

• Single Procurement Document (SPD): Utilised for Scottish and Welsh tenders, the devolved Scottish government designed the SPD and its usage is likely to continue for public sector bids in Scotland.
• SQ and PQQ: Ironically, the SQ was designed to replace the PQQ – however, both documents co-existed and the PQQ is still in limited usage today, particularly for construction tenders. Based on previous experience, it is likely contracting authorities will still deploy the SQ and PQQ in a limited capacity.
• Common Assessment Standard (CAS): Introduced in 2024 to replace the prior pre-qualification standard PAS 91, the CAS was designed by Build UK to provide a new, adaptable pre-qualification document to fit the requirements of the opportunity. Guidance in the PSQ specifies that questions from the CAS should still be used for works contracts.

What should suppliers do to prepare?

Currently, supplier actions stemming from the release of the PSQ are contingent on further information being shared regarding the new CDP. These comprise:

• Registering your organisation on the CDP and entering in the required core supplier information, including financial information from the most recent year
• Encouraging other suppliers (i.e. those in a consortium together) to submit information to the CDP, minimising potential missing or omitted company details
• Collating information on subcontractors used for contracts to allow buyer organisations to check their details against the public debarment list.

Limited information and guidance regarding the CDP can be found here, with supplier onboarding and registration commencing towards the end of the month.

We will continue to monitor updates and further information in advance of the 24 February implementation date. For support with live bid and tender submissions, we are contactable at info@executivecompass.co.uk or via telephone 0800 612 5563.