Exclusion grounds are specified circumstances that may require or permit a buyer to exclude a supplier from a public procurement.
Detailed explanation
Exclusion rules protect public contracts from unacceptable legal, integrity, performance and national-security risks. Depending on the applicable regime and facts, grounds may be mandatory or discretionary and may relate to the supplier, connected persons or certain associated organisations.
Declarations must be accurate and made for the correct legal entity and relevant persons. Suppliers should not wait until a tender arrives to investigate historic offences, misconduct, tax issues, serious contractual failures or other reportable matters. Corporate structures and subcontracting arrangements can make the analysis more complex.
Where an issue exists, evidence of remediation may be important. This can include repayment, cooperation, disciplinary action, governance changes, compliance controls or other measures addressing the cause and reducing recurrence. Legal advice may be appropriate because consequences and disclosure duties are fact-sensitive.
Why it matters
Suppliers may need to provide accurate information about themselves, connected persons and relevant conduct.
How buyers use it
The buyer checks exclusion information and determines whether a supplier must or may be excluded, taking account of the applicable rules, evidence and any relevant remediation.
What suppliers should do
- Maintain an up-to-date exclusion and integrity declaration process.
- Check the bidding entity, connected persons and relevant subcontractors.
- Investigate potential issues before submission deadlines.
- Prepare accurate supporting explanations and remediation evidence.
- Obtain specialist advice promptly where the position is uncertain.
Where it fits in the process
- 1Potential ground identified
- 2Facts and persons verified
- 3Disclosure prepared
- 4Buyer assesses ground and remediation
- 5Supplier admitted or excluded
Frequently asked questions
Are all exclusion grounds automatic?
No. Some may be mandatory and others discretionary, subject to the applicable law and facts.
Can historic issues still matter?
Yes, depending on the ground, timing and current rules. Check the specific requirements.
Can subcontractor issues affect our bid?
Potentially. Review the tender and applicable rules for associated persons and subcontractors.
What is self-cleaning or remediation?
Measures taken to address wrongdoing, repair harm and prevent recurrence. The buyer assesses whether they are sufficient.
Should we disclose an uncertain issue?
Do not guess. Investigate and obtain appropriate advice so the declaration is complete and accurate.
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