Q&As

A contracting authority conducts a mini-competition (for an above-threshold service contract) under a dynamic purchasing system and receives only one bid, which is over budget. In this scenario, is negotiation with the sole tenderer, with a view to reducing the contract price, permitted under the Public Contracts Regulations 2015, SI 2015/102?

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Published on LexisPSL on 15/09/2020

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • A contracting authority conducts a mini-competition (for an above-threshold service contract) under a dynamic purchasing system and receives only one bid, which is over budget. In this scenario, is negotiation with the sole tenderer, with a view to reducing the contract price, permitted under the Public Contracts Regulations 2015, SI 2015/102?
  • Dynamic Purchasing Systems
  • Awarding contracts under a DPS
  • Urgent procurement requirements due to coronavirus (COVID-19)

Dynamic Purchasing Systems

A Dynamic Purchasing System (DPS) allows a contracting authority to purchase goods, services and works for which they have a regular need, without having to carry out a full public procurement process for each individual purchase. A DPS is intended for procurement of common use items that are generally available on the market and meet the contracting authority’s requirements. For background reading, see:

  1. Practice Notes: Introduction to public contracts procurement and Introduction to framework agreements and dynamic purchasing systems

  2. Crown Commercial Service (CCS): Dynamic purchasing system guidance

Under the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, a contracting authority establishing a DPS must comply with the rules specified and cross-referred under PCR 2015, SI 2015/102, reg 34. In common with all the procurement procedures under PCR 2015, SI 2015/102, contacting authorities should also keep in mind the underlying procurement principles, treating all DPS participants equally and without discrimination, and acting in a transparent and proportionate manner (PCR 2015, SI 2015/102, reg 18).

For further reading, see Practice Note: Transparency in procurement processes.

Awarding contracts under a D

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