1. “The 3 Ps: Procurement”
4 December 2015

2. Speaker
Hayley Green
Solicitor – Projects Team Procurement and State aid  
Hayley advises public and private clients on the application of the public procurement and State aid regimes, procurement and State aid structuring, the procurement process, compliance with the regimes and a wide range of associated contractual documents and governance.
She has a proven reputation for assisting clients, including government departments, with complex procurement and State aid matters and has a practice focus on publicly funded projects and national and European funding programmes, including the European Regional Development Fund.
Hayley also delivers regular training and workshop sessions on public procurement and State aid.

3. New Public Procurement Regime
Public Contracts Regulations 2015
in force 26 February 2015
repealed Public Contracts Regulations 2006
Regulates the way public contracts for works, services and supplies are procured to ensure effective competition
Applies to all above-threshold “OJEU” contracts
Includes revised rules for below-threshold contracts

4. PCR 2015: Key Changes and Features
Variety of significant procedural changes:
Mandatory form of PQQ and stricter rules for using PQQs
All procurement documents to be available to bidders online
All communications and submissions via electronic means (currently best practice, mandatory from October 2018)
Better access for SMEs:
Minimum annual turnover requirements cannot exceed more than twice the estimated value of the contract (unless special risks to the contract)
Organisations must be allowed to self-declare compliance and “self-clean”
Contracting Authorities encouraged to use Lots
Payment conditions – payments within 30 days, all sub-contracts to include the same terms

5. PCR 2015: Key Changes and Features
Pre-market testing specially allowed, e.g. bidders days
Publication on OJEU and Contracts Finder
Provisions to allow modification of contract after award – six (6) circumstances
Must comply with Government guidance – or report to Cabinet Office

6. Quick Word on New Rules for Below-Threshold Contracts
Treaty Principles still apply:
Transparency
Equal treatment and non-discrimination
Proportionality
Mutual recognition
If above £25,000 (£10,000 for central government):
Advertisement on Contracts Finder
Procurement documentation to be available to bidders online
No PQQ stage allowed – can assess “minimum requirements” but must be proportionate to specific needs of the contract
Award notices in Contracts Finder - indicate whether the winning bidder is a SME or voluntary, community or social enterprise

7. ERDF Projects and Procurement – Myths and Lessons Learnt
Be aware of what the ERDF Grant Agreement says:
Contractual obligations to comply with the UK/EU public procurement regime and Treaty Principles - mirrors ERDF Regulation (EU) No 1303/2013
Non-contracting authorities are contractually subject to the Treaty Principles
Do not assume that projects in Cornwall or the South West have no cross border interest:
Almost all contracts will have potential of cross border interest
THINK – Could an organisation elsewhere in the EU submit a tender?
Refer to the European Commission’s irregularities and corrections for procurement when designing procurements (C(2013) 9527 Final – see Annex)
Also set out in DCLG’s ERDF Procurement Guidance 2015

8. ERDF Projects and Procurement – Lessons Learnt
Use of existing Frameworks – be careful! No guarantee of ERDF compliance
Advertisement is key:
Above threshold – advertise in OJEU and Contracts Finder
Below threshold – advertise in Contracts Finder
Do not assume your existing procurement policies and standing orders will be ERDF compliant!
Awarding an ERDF works contract? Be aware of the subsidised contract rules for non-contracting authorities
Provide for future modifications of the contract at the outset – see Reg 72 PCR 2015
Keep every single piece of paper!
Use an electronic extranet or procurement portal whenever possible

9. Any Questions?