Public procurement reforms in force in the UK

Most of the provisions in The Public Contracts Regulations 2015 (SI 2015/102) came into force on 26 February 2015 and will apply to all new tender procedures started on or after that date.  The Regulations implement the EU Public Sector Directive (Directive 2014/24 EU) which was finalised in 2014.    The reforms offer new opportunities to promote innovation in procurement.  While the content of the reforms will be familiar to avid followers of procurement law, this area can be difficult to navigate.  How can public authorities and bidders ensure that they are using the new rules to best potential? 

The government  is publishing guidance, information and training on the new rules. The Cabinet Office’s Procurement Policy Notes can be a good source of information.  For further information see the link at the end of this post. 

While the new rules will only apply to procurement procedures started on or after 26 February 2015 any existing procedures will fall to be considered under the existing rules.  This means that the old rules will still be relevant to contracting authorities and bidders until existing procedures have run their course.  Disappointed bidders who lost out on a contract where the competition was conducted under the old rules will need to consider their options based on the 2006 Regulations.   

A “light touch” procurement regime has been introduced to support SMEs (under Lord Young’s reforms).  The reforms require public bodies to advertise opportunities for contracts under the Contracts Finder government portal within 24 hours of advertising them elsewhere.  The rules apply to contracts valued at £10,000 or more for central government and £25,000 or more for sub-central authorities.  This is a UK-specific gold plating of the EU requirements. 

The new rules are also likely to mean that contractual documents will be available earlier than before because regulation 53  requires that procurement documents should be available when the Notice in the Official Journal of the EU is published. 

This is the most significant change to UK procurement law since 2006.  This is not, however, the end of the process.  There remain two further directives for the UK to implement relating to utilities (Directive 2014/25/EU)  and higher value concession contracts (Directive 2014/23/EU).  These directives must be implemented by April 2016.  In the run up to a General Election it is interesting to see what the major parties are saying about public procurement.  An area of focus has been on the NHS and SMEs. The details of implementation however will be a matter for the government of the day. 

See further:  https://www.gov.uk/transposing-eu-procurement-directives