Academy Trusts: A Reminder Of Their Obligations Under Procurement Law

• Published date: 27 January 2023
• Subject Matter: Consumer Protection, Government, Public Sector, Government Contracts, Procurement & PPP, Education
• Law Firm: Wrigleys Solicitors
• Author: Mr Chris Billington and Susannah Allen

Academy trusts must comply with their procurement obligations under the Academy Trust Handbook 2022 and the Public Contracts Regulations 2015.

Academy trusts must comply with their obligations under the Academy Trust Handbook 2022 and the Public Contracts Regulations 2015 ('PCR 2015') as a requirement of their funding agreements with the Secretary of State. We provide a brief overview of their procurement obligations and take a look at the recent High Court ruling of Bromcom Computers plc v United Learning Trust and another [2022] EWHC 3262 (TCC) where breaches of the PCR 2015 were sufficiently serious to justify an award of damages against United Learning Trust.

Academy Trust Handbook 2022

The Academy Trust Handbook 2022 details the governance and financial responsibilities of academy trusts due to their status as charitable companies acting in the public interest. Academies must ensure that public funds have been used as intended by Parliament, all spending decisions represent value for money and internal delegation levels are applied. In addition, academies must ensure that a competitive tendering policy is in place and that they comply with procurement rules and thresholds in PCR 2015.

Public Contracts Regulations 2015

Academies are deemed to be 'contracting authorities' because they largely receive their funds from the UK taxpayer via the Department of Education ('DfE'). As a contracting authority, academies must consider the PCR 2015 every time they place a significant order for goods, services or building works. These apply when the following thresholds are met:

• For goods and most services - '172,514;
• For social and other specific services (including catering) - '625,050; and
• For building works - '4,322,012.

If the academy is planning on buying something that costs more than the procurement threshold, it must assess the market and see if it can acquire what it needs using the find a DfE recommended framework tool. Next, the academy must prepare both a contract and an invitation to tender and consider whether to use (1) the restricted procedure, to reduce the number of bids it has to assess or (2) an open procedure, to include all bids.

The academy must then advertise a contract notice using the UK e-notification service, Find a Tender. The invitation to tender (and all other documents) must be available electronically from the time that the contract notice is published. All bids that the academy receives must be assessed fairly and using the same...