Exclusion Grounds
Statutory grounds under PCR 2015 / PA 2023 that bar suppliers from public procurement: corruption, fraud, tax evasion, modern slavery convictions.
Definition
Exclusion grounds are statutory grounds that bar suppliers from public procurement. PCR 2015 distinguishes mandatory exclusion grounds (where the supplier must be excluded if the ground applies) from discretionary exclusion grounds (where the authority may exclude in its judgement). PA 2023 retains the same broad structure with refreshed grounds. The mandatory grounds include serious criminal convictions (corruption, fraud, tax evasion, modern slavery offences, terrorism financing). Discretionary grounds include professional misconduct, breach of obligations, and certain past performance issues.
How it works in practice
Suppliers self-declare against the exclusion grounds at the Selection Questionnaire stage of every procurement. A "yes" answer to a mandatory ground is automatic disqualification (with limited self-cleaning exceptions where the supplier evidences material remedial action). A "yes" answer to a discretionary ground triggers further authority assessment. Most mature suppliers have strong governance ensuring they can answer "no" to all grounds: regular conflict-of-interest checks, anti-bribery and anti-corruption policy compliance, tax compliance assurance, modern slavery statement and supply chain due diligence. The Procurement Act 2023 introduces the supplier conduct record alongside the exclusion grounds: conduct issues short of statutory exclusion contribute to a public record that authorities can take into account without invoking the exclusion ground itself. Self-cleaning (where a supplier evidences remedial action that addresses the underlying conduct) is available for some grounds and can preserve the supplier's ability to bid; the threshold is fact-specific and authorities have wide discretion. Suppliers facing potential exclusion grounds should engage procurement law specialists early; the conduct record and exclusion grounds together create a more complex compliance environment than the historical PCR 2015 regime.
Common questions
What are the mandatory exclusion grounds?
Serious criminal convictions including corruption, fraud, tax evasion, modern slavery offences, terrorism financing, and certain organised crime offences. Conviction of a director or controlling person can trigger exclusion at the company level. The grounds are set out in PCR 2015 reg 57 and updated under PA 2023.
What are the discretionary exclusion grounds?
Professional misconduct, breach of obligations (tax, environmental, labour, social), significant past performance failures, conflicts of interest that cannot be remedied, and (under PA 2023) sustained pattern of failure on the supplier conduct record. Discretionary exclusion requires the authority to assess the specific situation rather than applying a hard rule.
Can I bid again after a mandatory exclusion?
Mandatory exclusion typically lasts 5 years from the conviction date (sometimes longer for specific offences). Self-cleaning is available in some cases: the supplier evidences remedial action including disclosing all relevant facts, paying compensation, and implementing measures to prevent recurrence. The bar is high; not all supplier self-cleaning is accepted.