The Public Contract Regulations 2015 How do they impact on suppliers?
Introduction The European Union set out the EU Procurement Directives 2014 with the intention to promote: • free market • non discrimination • Proportionality • Transparency • Common processes
Context Reason for change from 2006 directives: • Simplify and clarify • Increase flexibility • Enhance transparency Public Contract Regulations 2015 came into force 26 th February 2015
How does this affect you? • Fundamental changes to public sector procurement • The Contract type (goods, works or services) and Contract value define procurement approach • Contracts of all values are affected – not just above threshold
Under-threshold contracts Contract Central Government Local Government Bodies type Bodies Goods & services £111,676 £172,514 Works £4,332,012 £4,332,012 • Aggregate spend used • Contracts above £25,000 must be advertised on Contracts Finder • Individual Authority’s own contract procedure rules take precedence
Under-threshold contracts Where would you find out about the opportunity? Contracts Finder https://www.gov.uk/contracts-finder eTendering portal eg. www.supplyingthesouthwest.org.uk What would the tender process involve? Immediate access to tender documents No separate Pre Qualification Questionnaire (PQQ) 30 day payment terms throughout the supply chain How would you find out about an awarded contract? Contracts Finder
Over threshold Where would you find out about the opportunity? OJEU http://www.ojeu.com/ via PIN (Prior Information Notice) or Contract Notice What changes would I see in the tender process? • Standardised Pre Qualification Questionnaire • Self-declaration & Self-cleaning • Realistic turnover requirement • Contracts broken into lots • Plain language
Timescales Procedure Minimum period for response Minimum Contract Notice period for response ITT Open 35 days (less 5 days for electronic) Accelerated Open 15 days (where duly justified) Accelerated Restricted & Competitive 15 days 10 days Procedure with Negotiation Restricted 30 days 10 days Dynamic Purchasing System 30 days 10 days (each round) Competitive Dialogue & Innovation 30 days No minimum Partnership Procedures
Pre Procurement Engagement • Authorities now have greater flexibility when talking to suppliers prior to a procurement exercise • The Authority must ensure this does not distort competition • All information shared prior to a procurement must be provided to all • Time limits must be appropriate to allow for competition • Suppliers that have had prior involvement may be excluded as a last resort • Publication of more adverts
New Procedures Competitive Procedure with Negotiation • Negotiate prior to receipt of final tenders • Negotiations provide for modifications to specification and improvements to tender • eg. ICT contracts where involvement of the market prior to specification would be needed
New Procedures Innovation Partnership • Developing innovative products services or works • Successive stages based on research and innovation • eg. Partnership between public and private sector to develop new medical equipment
Changes to Contracts Changes to contract are only permitted when • Forecast in the original contract • Within the scope of the original contract • If change has become necessary and it would cause authority duplication of cost (provided does not exceed 50% of original contract) • If a supplier is taken over by another company • If change is less than 10% (goods and services) or 15% (works) of original contract value and does not alter nature of contract Contract termination • Clause to allow LA to terminate immediately in the event of legal challenge
Electronic Procurement • Legislation requires us to work electronically • Enables shorter timescales • Instant availability of contract documents • Suppliers must not be charged for procurement documents • Audit trail • Transparency • Efficiency
Legal Challenges Different timescales for different types of challenge No transparent procurement process: • On the grounds of ineffectiveness • Within 30 days of contract award notice or authority informing supplier of contract outcome whichever is the earliest. In any event within 6 months after the start of the contract Procurement process in breach of legislation: • Within 30 days starting from when supplier first knew that there were grounds for starting proceedings • Financial penalties and setting aside of the contract Below threshold: Mystery shopper through Crown Commercial Services
Light Touch Regime • Threshold £625,050 • Health and social services, educational and cultural services, hotel and restaurant services, some legal services, security services, postal services and other miscellaneous services • Allows for a less involved process to include publication of contract notice, reasonable and proportionate timescales, • Many include the needs of service users in award criteria • Must apply principles of transparency and equal treatment
Any questions? Thank you for attending
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