Procurement in an nutshell – Innovation Partnership
23rd January, 2015
In this Procurement in a Nutshell update we will be looking at the second of the new procurement procedures proposed in the draft Public Contract Regulations, the Innovation Partnership.
In a previous article in this series, we discussed the new Competitive Procedure with Negotiation.
This time, we look at Innovation Partnership.
What’s New?
The main features of Innovation Partnership (IP) are:
- it is appropriate for use where Contracting Authorities (CAs) have a need for an innovative product, service or works that cannot be met by purchasing those already available on the market
- the aim is the development of an innovative product, service or works and the subsequent purchase of the resulting supplies, services or works
- the CA may decide to set up the IP with one partner or with several partners who conduct separate research and development activities
- IPs can be structured in successive phases and set intermediate targets to be attained by the partners and provide for payment in appropriate instalments. CAs can terminate the IP or reduce the number of partners after each phase, provided that the procurement documents give the option to do this
- like the Competitive Procedure with Negotiation, CAs can negotiate the initial and subsequent tenders submitted, except the final tender, with the tenderers to improve their content. Similarly, CAs cannot negotiate their published minimum requirements which must be contained in the procurement documents
- the CA must ensure that the structure of the partnership, particularly the duration and value of the different phases, reflect the degree of innovation of the proposed solution and the sequence of the research and innovation activities required for the development of the innovative solution
- the estimated value of supplies, services or works must not be disproportionate in relation to the investment required for the development
Why is it important?
This is the first time that CAs will be able to procure the development and purchase of innovative products, services or works in a single combined procurement. CAs can also work with more than one bidder in the development stage.
Who will this suit?
This will be beneficial for those CAs seeking to procure a new process that does not already exist in the marketplace, such as innovative IT solutions.
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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