1. Proposal for new EU procurement Directives 30 May 2012 Catherine Wolfenden

2. osborneclarke.com 1 What are the public procurement regulations? Directive 2004/18/EC transposed into UK law through The Public Contracts Regulations 2006 Apply to 'contracting authorities' Service, supply and works contracts Similar Directive and Regulations for the utilities sector

3. osborneclarke.com 2 Consultation EU Commission Green Paper in January 2011 Public procurement plays a key role in the Europe 2020 growth strategy Need for streamlined and flexible procurement procedures UK Government response July 2011 Radical simplification is needed for the benefit of SME's other suppliers and public purchasers alike

4. osborneclarke.com 3 Proposed new Directive Published on 20 December 2011 Proposals for new procurement directives to replace the current directives on public and utilities procurement Also a proposal for a new directive on the award of concession contracts Proposals now in the EU legislative process – Council of Ministers and European Parliament Aim for proposals to be adopted by end of 2012 Coming into force in Member States by June 2014

5. osborneclarke.com 4 Main changes proposed (1) Scrapping in distinction between Part A and Part B services For procurements involving a limited class of "social services" a higher threshold of €500,000 will apply Simplification on information obligations in pre qualification Increase in the use of the negotiated procedure Simplified procedures for local authorities – publication of a general notice for planned procurement for year ahead

6. osborneclarke.com 5 Main changes proposed (2) Changes to competitive dialogue Shortening of time limits New "innovative partnership procedure" Award decisions can be based on life-cycle costs More incentives to divide tenders into lots Appointment of a single national "oversight" authority Codification of Teckal and Pressetext

7. osborneclarke.com 6 UK Government response Flexible approach to employee led organisations/mutuals Raise thresholds for goods and services More flexibility in frameworks to add suppliers Enable faster procurement Allow more freedom to negotiate Reduce the burden of supporting documents More clarification on the use of social and environmental criteria