RSLs & Public Procurement

Introduction

This guide is a brief explanation of what the Public Contracts Regulations 2006 mean for RSLs.

The Regulations usefully consolidate the previously separate Regulations for supplies, works and services. They also deal with developments in procurement and best practice. Procurement processes must be nondiscriminatory, fair and transparent. In many respects, the principles are similar to an equal opportunities approach to recruitment: well-trodden ground for RSLs. However, though there are similarities, the procurement regime is much more prescriptive.

In brief, the regime works as follows:

Contracts for works, services and supplies over particular financial thresholds must be advertised within the EU's Official Journal, the OJ. Our client guide,"RSLs and the public procurement regime: which contracts are covered?", discusses which contracts are covered and the financial thresholds.

RSLs must select a contractor using one of five available procurement procedures (the open, restricted, negotiated and competitive dialogue procedures and the dynamic purchasing system).

Selection of a contractor typically involves a two stage process, first short-listing (or pre-qualifying) candidates using criteria relating to matters such as financial and technical capacity and then awarding the contract to tenderers based either on price or value for money.

Preparations Before Initiating The Procurement Process

The procurement process is initiated by the RSL putting a contract notice in the OJ. Before doing that an RSL should:

consider whether it is required to give advance notice in the OJ;

decide which procedure to use;

decide on pre-qualification selection criteria and what information to ask candidates to supply;

decide on the award criteria;

draw up contract documentation; and

prepare a contract notice to send to the OJ.

Advance Notice Of Procurement Plans

RSLs may have to give advance notice of procurement plans. A PIN (prior information notice) is published in the OJ as soon as possible after the beginning of the financial year (for supplies and services) or the decision authorising the programme of contracts (for public works).

An RSL does not have to publish a PIN notice:

if the consideration payable under the contracts or framework agreement is less than 513,166 in relation to supply contracts for the purchase or hire of goods within the same product area and Part A services for services within the same category, or less than 3,611,319 in the case of works contracts;

if the RSL does not wish to shorten the timeframes for receipt of tenders following publication of a PIN under the open and restricted procedures; or

where the negotiated procedure without a contract notice is to be used.

Choice Of Procedures

Before starting the tender process, an RSL must decide which of the five procurement procedures to follow:

the open procedure under which all...