Procurement Reform Bill & New EU Procurement Directives APUC AGM Update on the Procurement Reform Bill & New EU Procurement Directives Angus Warren (as of May 2014)

Procurement Reform Bill (as of May 2014)

Procurement Reform Bill (1) Key Features Applies generally to procurement below the EU Threshold (but also some above) for all publicly funded Contracting Authorities. Goods and Services contract value over £50k (not annual value so would apply to a 4 year contract at £12.5k per year) Work contracts value over £2m Introduction may be phased and aligned to new EU Directives Various duties and requirements Organisations must publish and maintain a Contracts Register for all contracts values at over £50k (total contract value).

Procurement Reform Bill (2) Requirement to produce annual procurement strategy (except orgs with spend below £5m pa); Detail upcoming regulated procurement exercises Amend with revisions throughout the year Detail how the Institution will deliver value for money How Institution will comply with the General Duties from the Act Include a statement on community benefits, engagement and fairly traded goods/services Details on the process for consulting/engaging with those affected by procurements. Must be published on the internet Can submit joint strategies if strategies aligned – shared services etc

Procurement Reform Bill (3) Report on the institutional procurement strategy on an annual basis; Summary of procurements Details of whether activity has been in line with strategy and explain deviation Summary of community benefit requirements Must be published on the internet

Procurement Reform Bill (4) New rules & guidance on tendering below EU threshold (most relates to above EU also) Formal Debriefing obligation extended for suppliers Institutions must use a standard and proportionate PQQ. Institutions must use the “Public Contracts Scotland” tool for ALL above £50k contract advertising and award notices Further obligations relating to exclusion of bidders relating to tax, misconduct etc

Procurement Reform Bill (5) Organisations must consider Community Benefits for all major contracts (over £4m). Community Benefits cover; Training and recruitment Availability of sub-contracting opportunities Measures to improve economic, social or environmental wellbeing of the organisations area in addition to the main purpose of the agreement Details about how CBs have been incorporated (or not) must be stated in the Contract Notice

Procurement Reform Bill (6) General Duties There is now provision for use of reserved contracts for below EU threshold requirements. Organisations must comply with the Sustainable Procurement Duty in the Bill. Institutions should consider how to involve SMEs, third sector bodies and supported businesses within procurement exercises. Must ensure procurement documentation is aligned to the Bill There is scope within in the Bill for more guidance to be published related to particular categories e.g. relating to health and social care, construction etc

Procurement Reform Bill (7) APUC Plans to support Institutions Provide a publication of Impacts / Requirements and set out actions required to comply with them – and where APUC can help Create templates to ease the workload wherever relevant / possible Provide training (assuming the Government don’t) on the detailed implementation of the Act. Do compliance work for the sector where a generic approach is possible

New EU Directives (as of May 2014)

EU Directives (1) Have legal jurisdiction (not nation state) options for the first time – circa 70 Brings a lighter touch regime for non-Schedule 1 bodies More intelligent rules – more (potential) room for dialogue / negotiation Will require extended consultation on options and implementation approaches

EU Directives (2) Implementation being managed by multi team approach in the Scottish Government SPCD – split based on Procurement Journey – will involve sectors Consultation scheduled for after the referendum – likely to be October – December 2014 New Directive should be in place in England, Wales and NI earlier - Q4/2014 Likely implementation in Scotland Q4/2015 with the PRB

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