DFP: The use of grant in procurement

Updated in August 2009, this guide provides Departments with guidance on best practice procurement as it relates to grant and grant-in-aid.

This guide provides Departments with guidance on best practice procurement as it relates to grant and grant-in-aid, referred to throughout as grants. It will also assist in ensuring that grant funding, used for the procurement of goods, services or works by a grant recipient, is spent in accordance with procurement law and policy where appropriate.

The purpose of this guide is to provide useful advice to Departments and other public bodies to enable them to obtain assurance that the use of grants for procurement is in compliance with public procurement law and policy.

In particular the guidance includes:

  • advice to Departments on the importance of developing and agreeing procurement conditions of grant with grant recipients;
  • advice on how procurement law and policy applies to organisations funded by grant but which are not public bodies;
  • details of the obligations and implications for sponsoring Departments in terms of ensuring that grant recipients which are “contracting authorities” 1 and those which are “subsidised bodies” 2 comply with the correct public procurement procedures.
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DFP Guidance Note The use of grant for procurement.pdf250.25 KB