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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
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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