Q&As

Is there a legal requirement for a contracting authority to terminate an existing public contract where the supplier under that contract is participating in a subsequent public procurement process tendered by the same authority?

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Produced in partnership with Denis Edwards of Normanton Chambers
Published on LexisPSL on 11/11/2020

The following Public Law Q&A produced in partnership with Denis Edwards of Normanton Chambers provides comprehensive and up to date legal information covering:

  • Is there a legal requirement for a contracting authority to terminate an existing public contract where the supplier under that contract is participating in a subsequent public procurement process tendered by the same authority?
  • Note on Brexit

Is there a legal requirement for a contracting authority to terminate an existing public contract where the supplier under that contract is participating in a subsequent public procurement process tendered by the same authority?

We have assumed that your query relates to the procurement of an above-threshold contract by a public authority governed by the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102.

Procurement of above-threshold contracts by public authorities in England and Wales are governed by PCR 2015, SI 2015/102. PCR 2015, SI 2015/102 give effect in domestic law to Directive 2014/24/EU (the Directive), which contains the EU law rules governing the award of contracts for goods and services by public authorities throughout the EU. For background information, see Practice Note: Introduction to public contracts procurement.

Subject to compliance with PCR 2015, SI 2015/102 (and associated EU-derived procurement rules, principles and statutory guidance etc) in relation to contracts falling within their scope, the domestic rules of contract law continue to apply to all public contracts. Accordingly, if a contractor or contracting authority breaches the terms of an awarded public contract, liability and remedies would be governed by the contract and associated domestic law. For further information see: Breach and remedies—overview). The remainder of this response focuses on the relevant considerations under public procurement law.

There is no provision under PCR 2015, SI 2015/102 (or the Directive) requiring

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