January overhaul will accommodate PFI/PPP deals, e-tendering as well as simplify process

Contractors and consultants are facing sweeping changes to the European public procurement process next year.

The new regime for the OJEU (Official Journal of the European Union) will come into force on 31 January, although a final draft of the changes has yet to be published. The changes are designed to simplify the OJEU process as well as introduce procedures that cover PFI/PPP deals, the period after a contract has been awarded and bulk buying of services.

Gleeds’ senior project manager Nick Brown, who is an expert on the overhaul, said he thought the changes were broadly positive: “Bearing in mind the regulations first came out 15 years ago, they are well past their sell by date.

The whole process will be simplified. A lot of the changes are drawing on Egan and Latham principles by trying to get people to work together.”

Brown was concerned the final version of the proposals had not yet been published but added: “We are not expecting any fundamental changes.”

A lot of the changes are drawing on Egan and Latham principles

Nick Brown, senior project manager, Gleeds

Brown argued that the alterations would force public sector clients to think much further ahead when they are letting out contracts.

He said: “There will need to be a much clearer audit trail set in place by clients from now on. The changes are designed to encourage local authorities and central government to allow for enough time to properly procure projects.”

Brown said there was still confusion over the exact meaning of complex contracts, where separate rules will apply (see box). He said: “Even the legal profession is puzzled as to quite what sort of project qualifies for this.”

He added that future work carried out for the Olympics could fall within another new regime, that of dynamic purchasing (see box). He said: “I could see it potentially used for schemes like the Olympics where there could be big volume orders for products.” Brown said the new regulations also took on board the rise of e-tendering.

Main changes to OJEU

1 Complex contracts – this allows for PFI/PPP schemes and facilitates ‘competitive dialogue’ between the public authority and bidders before the final contract is awarded
2 Notification – awarding authorities have to give losing bidders 10 days to make objections to the selection. If no objections are made the contract can be signed.
3 Selection criteria – public bodies will be required to declare on what basis they will be choosing a bidder at the start of the process
4 Dynamic purchasing – A new concept that covers authorities that are buying in bulk who can split their purchases into periods of time (say a chunk of six weeks)
5 Requirement for public body to publish a buyer profile on its website setting out its overall future programme of works
6 The works, supplies and services sections on the OJEU have been combined into one sector. Utilities remains the same. Will these changes make the OJEU process easier?
Let us know your views by emailing qsnews@cmpinformation.com

Source

QS News