Procurement in a nutshell – The Mystery Shopper Service close up
3rd June, 2016
This week’s update provides a close up view of one of the cases covered by the Mystery Shopper results to highlight some of the lessons that can be learned by contracting authorities (CAs).
Complaint against the City of Bristol College
A complaint was made against the City of Bristol College for the way in which it conducted its procurement process in a tender for soft facility management services. During its investigation the Mystery Shopper team noted that the procurement did not reference the Public Contract Regulations 2015 (PCR 2015) and did not make use of the CCS standardised suitability questionnaire. The college had also sought to establish a framework for five years. Lastly, the college had asked bidders to provide details of their proposed solution at the selection stage of the process, rather than at the award stage.
Mistakes that the college made
- CCS suitability questionnaire
The CCS has issued statutory guidance under regulation 107(1) PCR 2015 which CAs must have regard to in relation to the qualitative selection of economic operators in procurement. The guidance recommends that public sector bodies subject to the guidance should adopt the standardised set of questions contained within the guidance when assessing supplier suitability for providing goods and services. The questions are presented in the format of a Pre-Qualification Questionnaire, which CAs should embed into their own procurement processes. - Framework period
Regulation 33 PCR 2015 makes it clear that, save in exceptional circumstances, the term of a framework agreement must not exceed four years. - Selection criteria versus award criteria
The award procedures provided for in the PCR 2015 are based on key stages. The selection stage and the award stage, and the criteria that respectively applies to each stage, are distinguishable parts of the process.
Selection criteria relate to the bidder and are used to assess the bidder’s ability to perform the proposed contract. They may only be applied at the pre-qualification stage in order to short-list bidders to be invited to tender or participate in dialogue. Award criteria relate to the tender and are used to identify the tender that is the most economically advantageous. Put simply, selection criteria aims to establish “can they do it” and award criteria “how will they do it”. The correct criteria must be applied to the different stages in the procurement process.
How the college responded
In response to the investigation the College explained that, “due to a reduction in resources they were unaware of the substantial changes introduced in the PCR 2015 and the bid documents had not been properly checked before release”. The college agreed to reduce the term of the framework agreement to four years, informing bidders of this change. They also explained that they were not looking for a solution at the selection stage and committed to be clearer in the future, ensuring that they reference the new regulations and make use of the CCS templates when suitability questions are asked.
Why is this important?
In the above case the failure by the CA to place enough importance on procurement compliance led to clear failings to meet certain requirements of the PCR 2015.
CAs should not take lightly the importance of managing and eliminating non-compliant procurement practices. Taking a gamble on saving on the costs of procurement compliance is risky business. The potential costs of sanctions may outweigh the costs of investing in procurement compliance.
How can I find out more?
If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0191 204 4464.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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