Changes made by the Procurement Act 2023, in force from 24 February 2025, include ( 1 ) a new MANDATORY EXCLUSION ground for participating in a cartel, ( 2 ) a DISCRETIONARY EXCLUSION ground for potential competition infringements, and ( 3 ) the introduction of a CENTRAL DEBARMENT Register. Suppliers who breach competition law risk ( i) exclusion from individual public procurements and ( ii ) being added to the Central Debarment Register, resulting in EXCLUSION FROM ALL CONTRACTS subject to public procurement, for 5 years. The COMPETITION AND MARKETS AUTHORITY has, on 26 February 2025, published a INFORMATION NOTE on “Exclusion and Debarment on Competition Grounds.”
CONTRACTING AUTHORITIES
February 26th, 2025 by James Goudie KC in Decision making and ContractsOn 24 February 2025 the Cabinet Office has issued GUIDANCE on the role of the Procurement Review Unit (PRU). The PRU will have responsibility for “oversight” of the new regime under the Procurement Act 2023. Its initial aim will be to ensure that the changes introduced by the Act are “embedded within contracting authorities”. The PRU will investigate (1) contracting authorities, to ensure compliance with the Act and (2) suppliers, for possible addition to the Debarment List. Private utilities and some NHS personal care services are, however, out of scope of the PRU. The Guidance states that the PRU is designed to deliver the following benefits:-
GUIDANCE
February 24th, 2025 by James Goudie KC in Decision making and ContractsA Welsh Government publication provides Guidance on Frameworks under the PROCUREMENT ACT 2023, both framework agreements and the new “ open frameworks “, and on call-off contracts.
PUBLIC PROCUREMENT
February 18th, 2025 by James Goudie KC in Decision making and ContractsThe Procurement Act 2023 (Consequential and other Amendments) Regulations 2025, S.I. 2025/163, make substantive amendments to the Procurement Act 2023 (PA 2023) and the Procurement Regulations 2024 (PR 2024), as well as consequential amendments arising from the coming into force of the PA 2023. They: update certain specified threshold amounts; reflect additions and amendments to the UK’s international obligations in respect of procurement; make consequential amendments to primary legislation rendered necessary by the coming into force of the PA 2023; make amendments to the PR 2024 that address a small number of matters for which provision was not made in those Regulations; contain consequential amendments to secondary legislation and assimilated law which are rendered necessary by the coming into force of the PA 2023; make repeals and revocations rendered necessary by the coming into force of the PA 2023; and contain transitional provisions.
A collection of updated Cabinet Office Procurement Policy Notes include: PPN 001: Small and Medium-Sized Enterprises (SME) and Voluntary, Community and Social Enterprises (VCSE) procurement spend targets; PPN 002: Taking account of social value in the award of contracts; PPN 003: the Public Services (Social Value) Act 2012; PPN 004: Open Book Contract Management; PPN 005: Reserving below threshold procurements; PPN 006: Taking account of Carbon Reduction Plans in the procurement of major government contracts; PPN 007: Contracts with Russia and Belarus; PPN 008: Armed Forces Covenant; PPN 009: Tackling modern slavery in government supply chains; PPN 010: Procuring steel in government contracts; PPN 011: The Commercial Playbooks; PPN 012: Security Classifications Policy; PPN 013: Using standard contracts; PPN 015: How to take account of a supplier’s approach to payment in the procurement of major contract; PPN 016: Carbon Reduction Contract Schedule; PPN 017: Improving transparency of AI use in procurement; and PPN 018: How to take account of a supplier’s approach to payment in the procurement of major contracts.
CLARIFICATIONS DURING A TENDER PROCESS
February 18th, 2025 by James Goudie KC in Decision making and ContractsIn WORKING ON WELLBEING LTD v SoS (2025) EWCA Civ 127 Coulson LJ (with whom Frazer and Zacaroli LJJ agree) summarises the relevant principles as follows:-
“82. I consider that the authorities demonstrate that there are three stages to consider when addressing whether or not, in the particular circumstances of any given case, a contracting authority has the discretion to seek clarification, when that discretion becomes a duty, and what the permissible limits are to any response to a request for clarification.
Stage One
- The first stage arises only where the error or ambiguity is obvious to the contracting authority and is material to the outcome of the competition. That will be rare, which explains why any duty to seek clarification will only arise in exceptional cases … the only question is whether the error or ambiguity was obvious to the contracting authority: it is not a question of the error or ambiguity being “objectively verifiable”.
- All of the cases stress that the error of ambiguity must be “serious” and “manifest”… The error or ambiguity must also be “material” or “significant”: it must be relevant to the “outcome” of the tender process… If the error or ambiguity is immaterial or irrelevant to the final outcome of the competition, no further action is necessary.
BIAS
February 6th, 2025 by James Goudie KC in Decision making and ContractsA regulatory context does not call for any test for apparent bias to be applied different from that in PORTER v MAGILL and LOCABAIL v BAYFIELD. So held in R ( CYGNET HEALTH ) v CARE QUALITY COMMISSION (2025) EWHC 1 ( Admin ).
REPUDIATORY BREACH OF CONTRACT
December 18th, 2024 by James Goudie KC in Decision making and ContractsThe law and principles applicable to termination of a contract for repudiatory breach do apply to leases. So held in RAMSBURY PROPERTIES LTD v OCEAN VIEW CONSTRUCTION LTD (2024) UKPC 40, at para 42. However (para 43) itu may be rare in the case of a lease, especially where the lease is long-term, for the breach to be sufficiently serious to be repudiatory. This is because a lease confers a proprietary interest in land and exclusive possession.
CONTRACTUAL CHANGES
November 22nd, 2024 by James Goudie KC in Decision making and ContractsIn R (Cobalt Data Centre) v HMRC (2024) UKSC 40, concerned with a building contract relating to an Enterprise Zone, the Supreme Court considers, at paras 125-156 inc, how to determine whether a contractual change takes effect as a variation to, or replacement of, an existing contract. That is held to turn generally on the parties’ objectively ascertained intention.
RECTIFICATION OF CONTRACTS
November 14th, 2024 by James Goudie KC in Decision making and ContractsIn NATIONAL UNION OF RAIL MARITIME AND TRANSPORT WORKERS v TYNE AND WEAR PASSENGER TRANSPORT EXECUTIVE (2024) UKSC 37 the Supreme Court considers the nature of rectification. The basic role of rectification is not to correct mistakes in transactions. It is to correct mistakes in recording transactions. It is not confined to documents of particular types. It may be refused if granting it would unfairly prejudice third party rights.
VOTING
October 25th, 2024 by James Goudie KC in Decision making and ContractsA Ministry of Housing, Communities and Local Government Consultation Document, published on 24 October 2024, seeks views on introducing REMOTE ATTENDANCE and PROXY VOTING in certain circumstances at formal local authority and other meetings in England. The Consultation Period is until 12 December 2024.