The new EU Public Procurement Directives State of play of the UK transposition of the new Directives PPN Italian Presidency Conference (Rome, 2 December 2014) Peter Bennett UK Cabinet Office Crown Commercial Service Procurement Policy Team

European Public Procurement Reform The UK welcomes the new public procurement rules because of their important contribution to growth & reducing deficits They will help to: •

Reduce lengthy and burdensome procurement processes that add cost to business and barriers to market competition • Modernise the procurement procedures and provide more flexibility for purchasers to follow best commercial practice, so that the best possible procurement outcomes can be achieved • Support measures to enhance SME access to public procurement, where such measure are non-discriminatory and are consistent with a value for money approach. • Allow a flexible approach towards employee led organisations/mutuals to enable employees to gain experience of running public services prior to full and open competition These objectives fit with the ongoing programme of UK domestic reform 2 UNCLASSIFIED

UK Implementation Member States have until April 2016 for implementation in national law. UK Ministers want to transpose early to get benefit of improvements, subject to collective Ministerial agreement

Will implement by 3 separate Statutory Instruments (S.I.), replacing the existing SIs for the public sector and utilities, with a new S.I. for concessions, starting with the public sector Directive (2014/24/EC). Each of these SIs will also provide for remedies. UK experience is that there are not many court cases, but there is significant concern about potential legal action Copy out approach adopted to avoid goldplating 3

Unclassified

UK Implementation: engagement with stakeholders • Discussion papers circulated to stakeholders in the second half of 2013 seeking views on the 37 different policy options for Member States, divided into the following subjects: – Light touch regime (LTR)(articles 74-76), SMEs, strategic use of procurement, termination of contracts, sheltered workshops, procedures, tender assessment, central purchasing bodies, e-procurement, exclusions/anti-corruption & standard forms.

• Responses Support for : -

new flexibilities and not adding extra burdens Minimal rules for LTR (social and other specific services) Need to have lowest price or cost as a possible award criterion

UNCLASSIFIED

4

Consultation on the draft UK Regulations •

https://www.gov.uk/government/consultations/transposing-the-2014-euprocurement-directives

Consultation ran until 17 October 2014. It included a consultation document (with questions & comment on policy choices), the draft Public Contracts Regulations 2015 & a technical note on drafting 20 questions covered particular policy choices, a request to comment on the drafting & to update Schedule 1 bodies. Comments on new measures to increase SME participation were also sought The draft Regulations reflected discussions with government departments, in particular the interface with health regulations UNCLASSIFIED

5

Consultation responses 204 replies from wide range of stakeholders Business Central Gov Dept Devolved Administrations Education Individual Legal Local Government Police Procurement Organisation Professional/Trade Body Voluntary/Third Sector Trade Union

15 7 1 60 5 18 46 2 7 20 18 5 6

UNCLASSIFIED

Consultation outcomes: preliminary observations • General support for the choices on options • Questions over applying the light touch regime before April 2016 • Support for flexibilities, but local authorities concerned about changes below the EU threshold • Trade Unions & the voluntary sector want to highlight social & quality aspects UNCLASSIFIED

7

Post-consultation Next steps • Update draft regulations • Final write round to get collective agreement from Ministers • Make and lay the Regulations in January to come into effect in February 2015 • Prepare guidance including: - LTR & mutuals, procurement routes, awarding contracts, in-house contracts, selection & exclusion, DPS, environmental/social , eprocurement & changes to contracts 8

UNCLASSIFIED

UK implementation: embedding the Directives Face to Face Training Delivered through 140 volunteer trainers, trained by Cabinet Office Over 200 sessions across the UK in June & July 2014 reaching 6,000 procurement personnel E-Learning Hosted by Crown Commercial Service (CCS) by end 2014 Training needs to start before Regulations are in place, but e-learning material will be updated regularly Materials Handbook available on the Gov.uk and CCS Website from June 2014. Further guidance is being prepared Transposition webpage https://www.gov.uk/transposing-eu-procurementdirectives UNCLASSIFIED

9

Thank you

10

UNCLASSIFIED