Government hails "encouraging" EC procurement reform, but warns on mutuals

The government has hailed the European Commission’s proposed reforms of public procurement law as “encouraging”, in a policy note issued before Christmas.

But the Cabinet Office expressed concern that the proposals did not contain a temporary exemption for employee-led organisations/mutuals, and said it would continue to press for such a provision.

It also warned that the reforms included potentially burdensome governance requirements.

The Cabinet Office nevertheless claimed the reforms appeared to respond to many of the UK-proposed changes such as:

• Greater flexibility to negotiate
• Simpler rules on dynamic purchasing systems
• The ability for procurers to evaluate suppliers’ past performance
• Enablement of electronic marketplaces
• More flexible and less burdensome rules on supplier selection
• The inclusion of a clause to enable a review of the thresholds
• Faster procurement, through shortened time limits.

It also called for comments on proposals that are new or "untested". These include the proposed abolition of Part B services and the introduction of a higher threshold for social and health services coupled with the obligation to introduce specific procedures for these services.

The Cabinet Office also urged stakeholders to provide feedback on: the new innovation partnership procedure; whether further clarifications are needed in relation to sustainable procurement; the need to explain why contracts above 500k euros have not been divided into lots; and allowing direct payment to subcontractors.

On Brussels’ proposals for a new directive on services concessions, the Cabinet Office said it considered that the changes could have been introduced as an amendment to the main directive. However, it admitted that this view had not prevailed.

“Where the procurement and concessions directives cover the same matters, we will wish to avoid unnecessary and continuing divergence,” the Cabinet Office added.

The Cabinet Office said it expected the revised directives to be adopted in 2013. It has asked for comments to be submitted by 20 January, ahead of the start of negotiations.

Philip Hoult