FOI release

FOI202500027S Payment practices considered in procurement

Published 20 October 2025

FREEDOM OF INFORMATION ACT 2000 - REQUEST REF: FOI2025/00027S 

Thank you for your email of 23 September 2025 asking for information under the Freedom of Information Act (FOIA) 2000. You asked: 

“Government procurement policies PPN018, PPN 021, and the guidance laid out at laid out at https://www.gov.uk/guidance/prompt-payment-policy set out how payment approaches should be taken into account in the procurement of major government contracts. 

These rules apply to the major contracts of central government departments, their executive agencies and non-departmental public bodies. 

Importantly, the rules state that “any supplier bidding for a central government contract above £5 million per year has needed to demonstrate that they have effective payment systems”.  

For suppliers to have an effective payment system they must demonstrate that: “95% of invoices in their supply chain are paid within 60 days and that they pay their invoices within an average of 55 days or fewer.”  

Under the Freedom of Information Act 2000, please provide the following information: 

Question 1  

As part of your tendering and procurement processes, the total number of bidders excluded - in financial years 2022/23, 2023/24 and 2024/25 to date (September 2025, as the most recent quarter for which data is held) - from public procurement processes for contracts valued over £5 million per annum due to non-compliance with the prompt payment policies mentioned above.   

If providing the data for all three years would exceed the cost limit, please provide whichever years are available within the limit.  

If a bid was excluded for multiple reasons, and poor payment practices is one of the tracked reasons, please include this in the total number.  

Question 2  

Provide the total number of bidders who have been asked to provide a detailed action plan outlining the steps to get back into compliance with payment performance policies mentioned above, in financial years 2022/23, 2023/24 and 2024/25 to date. If providing the data for all three years would exceed the cost limit, please provide whichever years are available within the limit.  

Question 3  

Provide a list of names of the organisations which have been excluded from central government procurement processes for contracts valued over £5 million per annum due to non-compliance with the prompt payment policies mentioned above. If providing all organisation names would exceed the cost limit, please provide up to the first 10. If a bid was excluded for multiple reasons, and poor payment practices is one of the tracked reasons, please include this in the list.” 

I am writing to advise you that following a search of our paper and electronic records, I have established that the specific information you requested is not held by this Department. 

Once an FOI request is answered, it is considered to be in the public domain.  To promote transparency, FCDO Services may now publish the response on GOV.UK in the FOI releases section.  All personal information in the letter will be removed before publishing.  

If you would like to request a review of our decision, you should write to the Data Protection Officer (DPO), Knowledge and Information Management (KIM) Team, FCDO Services, Hanslope Park, Milton Keynes, England, MK19 7BH (e-mail: FCDOServices.DataProtectionOfficer@fcdo.gov.uk).  Please note you have 40 working days to do so from the date of this letter. Please quote the reference number above in any future communications. 

If you are not content with the outcome of your complaint, you may then apply directly to the Information Commissioner for a decision.  Generally, the Information Commissioner cannot make a decision unless you have exhausted the complaints procedure provided by the FCDO. The Information Commissioner can be contacted at: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF, or online at: https://ico.org.uk/make-a-complaint/  

Yours sincerely, 

FOI Officer 

Knowledge and Information Management (KIM) Team 

FCDO Services 

For information about how FCDO Services handles personal information please see our Personal Information Charter.