The 'best value' dimension to outsourcing
Produced in partnership with Rachel Barrett of Cloisters
The 'best value' dimension to outsourcing

The following TMT practice note produced in partnership with Rachel Barrett of Cloisters provides comprehensive and up to date legal information covering:

  • The 'best value' dimension to outsourcing
  • Who does the duty apply to?
  • Nature of the duty
  • General duty
  • Duty to consult
  • Duty to have regard to guidance
  • Best value guidance
  • Further powers of the Secretary of State
  • Enforcement of the BVD
  • Inspection
  • More...

The best value duty (BVD) was introduced by the Local Government Act 1999 (LGA 1999). That remains the governing legislation although it has been amended considerably, particularly by the Local Government and Public Involvement in Health Act 2007 (LGPIHA 2007). Revised statutory guidance on the BVD was issued by the Department for Communities and Local Government (DCLG) on 26 March 2015.

Best value replaced compulsory competitive tendering (CCT) which had required local authorities in England and Wales to expose prescribed services to a competitive tendering exercise in classified circumstances and only permitted in-house delivery of the services if the in-house team had a successful bid in the tendering exercise. Unlike CCT, best value is not directly concerned with outsourcing and applies to the full range of the authority's functions. However authorities subject to the BVD must comply with it in determining how to deliver their functions. This includes consideration as to whether a service be delivered in-house or should be outsourced in whole or in part.

The BVD is not directly connected with the authority's obligations under public procurement law. It does not exempt an authority conducting a procurement exercise from compliance with the Public Contracts Regulations (SI 2015/102). The BVD is however part of the wider commissioning process and will be relevant to an authority:

  1. in deciding whether to deliver a service in-house or whether

Popular documents