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Procurement Policy Note · explained by eSourcing Data

PPN 008 Armed Forces Covenant: the official information note, explained

PPN 008 asks departments to encourage suppliers to sign the Armed Forces Covenant using set tender text, without making it part of the procurement process.

Central government procurement and purchasing teamsBid and tender document authorsSuppliers considering signing the Armed Forces CovenantHR and social value leads supporting veteran employment7 min read

Source document: Procurement Policy Note: Armed Forces Covenant (Information Note 008)

The key facts

  • PPN 008 is an information note previously issued in June 2016 and updated in February 2025.
  • It applies to all central government departments, their executive agencies and non-departmental public bodies.
  • The Armed Forces Covenant is a public sector pledge from government, businesses, charities and organisations to demonstrate support for the armed forces community, brought in under the Armed Forces Act 2011.
  • Departments should consider encouraging suppliers to sign the Covenant by including the text at Annex A in their tender documents.
  • The Annex A text states explicitly that the Covenant is not a condition of working with the contracting authority and will not form any part of the procurement process, including as a condition of participation, award criterion or contract term.
  • The Covenant has two principles: that the armed forces community should face no disadvantage compared to other citizens in the provision of public and commercial services, and that special consideration is appropriate in some cases, especially for the injured and the bereaved.
  • Typical supplier commitments include encouraging reserve service, supporting employment of veterans and service spouses and partners, and giving the armed forces community a fair deal on commercial products and services.
  • More than 800 businesses and charities have signed an Armed Forces Covenant according to the note.
  • The February 2025 update reflects Procurement Act 2023 and Procurement Regulations 2024 terminology and does not incorporate amendments made by the Armed Forces Act 2021.
  • For procurements commenced and contracts awarded before 24 February 2025, readers are directed to PPN 06/16.

What PPN 008 is and who it applies to

PPN 008 is an information note on the Armed Forces Covenant, previously issued in June 2016 and updated in February 2025. The Covenant is described as a public sector pledge from government, businesses, charities and organisations to demonstrate their support for the armed forces community. The purpose of the note is narrow and clearly stated: it sets out guidance on how departments can encourage suppliers to sign the Covenant.

It applies to all central government departments, their executive agencies and non-departmental public bodies, referred to as in-scope organisations. The note asks that it be circulated within the organisation, drawing it to the attention of those with a purchasing role. In-scope organisations should apply its provisions from 24 February 2025.

This is an information note rather than an action note, and the language throughout reflects that. Departments should be aware of the Covenant and of government's desire to encourage communities, charities and businesses to sign it, and should consider encouraging suppliers to sign by including the text at Annex A in their tender documents.

The line the note is careful to draw

The most important operational point in PPN 008 sits in the Annex A text itself. After encouraging suppliers to sign the Covenant, the text states that the preceding paragraphs are not a condition of working with the contracting authority now or in the future, nor will the issue form any part of the procurement process, giving the examples of a condition of participation, an award criterion, or a term of the contract. It closes by saying the authority very much hopes suppliers will want to provide their support.

That boundary is what makes the approach lawful and workable. The Covenant is a voluntary public commitment, not a qualification requirement, and importing it into evaluation would turn a moral pledge into a barrier to entry with no proper basis in the procurement.

The practical implication for buyers is that the Annex A text should be included as written, in a part of the tender pack that is clearly informational, and should not be echoed in questionnaires, scoring guidance or contract schedules in any way that suggests it carries weight in the outcome. For suppliers, the same paragraph is a reassurance: declining to sign cannot count against a bid.

What the Covenant actually commits a supplier to

The Covenant was brought in under the Armed Forces Act 2011 to recognise that the whole nation has a moral obligation to redress the disadvantages the armed forces community face compared to other citizens, and to recognise sacrifices made. Its two principles are that those who serve, whether Regular or Reserve, those who have served, and their families should face no disadvantage compared to other citizens in the provision of public and commercial services, and that special consideration is appropriate in some cases, especially for those who have given most, such as the injured and the bereaved.

Businesses and charitable organisations wishing to demonstrate support can sign, making a range of written and publicised promises setting out their support to members of the armed forces community who work in their business or access their products and services. The level of support depends on the size and nature of the organisation, but typically includes policies that encourage reserve service, support employment of veterans and service spouses and partners, and give the armed forces community a fair deal on commercial products and services.

The Corporate Covenant text reproduced in the note shows what those promises look like in practice. Commitments include promoting the organisation as armed forces friendly, supporting employment of veterans and working with the Career Transition Partnership to establish a tailored employment pathway for service leavers, supporting employment of service spouses and partners, offering flexibility in granting leave around a partner's deployment, supporting employees who are members of the Reserve forces including accommodating training and deployment, supporting local cadet units, participating in Armed Forces Day, and offering a discount to members of the armed forces community. Signatories are encouraged to adopt those that suit their business and to publicise the commitments and invite feedback.

The status of the February 2025 update

The update exists to reflect the new terminology introduced by the Procurement Act 2023 and the Procurement Regulations 2024, which apply to procurements commenced on or after 24 February 2025. The note directs readers to the Procurement Act 2023 guidance on transitional and savings arrangements for the meaning of commenced.

The Procurement Act 2023 does not apply to procurements commenced before 24 February 2025 or contracts awarded before that date, including through frameworks, dynamic purchasing systems or qualification systems established under the previous legislation. For that population, PPN 008 directs readers to PPN 06/16, the earlier note on the same subject that this one succeeds.

Two caveats are worth noting. The update does not incorporate amendments made by the Armed Forces Act 2021, and it does not constitute a change in policy or a new call for action. In-scope organisations should simply continue to apply any ongoing obligations set out in the note's provisions. The number of signatories cited, more than 800 businesses and charities, reflects the position stated in the document.

How eSourcing Data helps

The main risk with PPN 008 is inconsistency: the Annex A text appearing in some tender packs and not others, or worse, drifting into questionnaires where it does not belong. eSourcing Data helps by letting teams standardise tender documentation, so informational content sits in the same place in every competition and is reviewed once rather than rewritten each time.

Because the note is explicit that the Covenant must not be a condition of participation, an award criterion or a contract term, keeping evaluation criteria structured and visible is a useful control. When scoring is defined in the system, it is straightforward to demonstrate that no weighting or requirement was attached to signing, which is the assurance both auditors and unsuccessful bidders will want.

For organisations interested in the wider picture, supplier records give a way of noting voluntary commitments without attaching consequences to them, supporting reporting on workforce and social themes while keeping the procurement process itself untouched.

What to do about it

  1. 1Add the Annex A text to your standard tender document pack, in a clearly informational section.
  2. 2Check that the Covenant does not appear as a condition of participation, an award criterion or a contract term anywhere in your documents.
  3. 3Brief bid document authors and evaluators that signing the Covenant carries no weight in the process.
  4. 4Point interested suppliers to the Armed Forces Covenant website for guidance on how to sign.
  5. 5Identify which contracts were commenced or awarded before 24 February 2025 and therefore sit with PPN 06/16.
  6. 6Note that the February 2025 update does not incorporate amendments made by the Armed Forces Act 2021.
  7. 7Share the note with those in purchasing roles, as the PPN requests.

Put this into practice on the platform

eSourcing Data runs compliant notices, evaluation, supplier management and audit trails out of the box, so meeting this guidance is the workflow, not extra work.

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This explainer summarises and interprets an official document for general information; it is not legal advice. Contains public sector information licensed under the Open Government Licence v3.0. Nothing here implies endorsement of eSourcing Data by any government body.

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