Q&As

A contracting authority is considering an asset purchase from a company including land and vehicles. If the value of the vehicles is above-threshold and the exemptions under the Public Contract Regulations 2015, SI 2015/102, reg 32 do not assist, is it correct to say that a full public procurement process would be required or is there an option under which the authority could contract directly to procure the vehicles?

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Produced in partnership with Peter Ware of Browne Jacobson
Published on LexisPSL on 26/05/2020

The following Local Government Q&A Produced in partnership with Peter Ware of Browne Jacobson provides comprehensive and up to date legal information covering:

  • A contracting authority is considering an asset purchase from a company including land and vehicles. If the value of the vehicles is above-threshold and the exemptions under the Public Contract Regulations 2015, SI 2015/102, reg 32 do not assist, is it correct to say that a full public procurement process would be required or is there an option under which the authority could contract directly to procure the vehicles?

This Q&A concerns a contract for land and vehicles―a mixed contract. Not all land deals require a public procurement procedure advertised in the Official Journal of the European Union. It will likely depend on the nature of the deal and the contracting authority’s role within, but it can be a procurable element of a contract.

The Public Contract Regulations 2015 (PCR 2015), SI 2015/102, will not apply when a contract includes mixed elements that cannot be separated and the elements of a procurable nature are not the main object of the contract. Here, the question is whether the main element of the contract is the vehicles or the land.

Under PCR 2015, SI 2015/102, reg 4(2), there are mechanisms for when a contracting authority is faced with a contract containing some but not exclusively all procurable elements. This provides that:

‘(2) In the case of contracts which have as their subject-matter procurement covered by this Part and procurement not covered by this Part—

(a) where the different parts of a given contract are objectively separable—

(i) contracting authorities may choose to award separate contracts for the separate parts or to award a single contract

(ii) where contracting authorities choose to award separate contracts for separate parts, the decision as to which legal regime applies to any one of such separate contracts shall be taken on the basis of the characteristics

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