Procurement & Public Sector

Public procurement law governs how public bodies spend taxpayer money on goods, services, and works. It ensures fairness, transparency, and value for money through regulated competitive processes. The law applies to central government, local authorities, NHS trusts, and other public bodies when spending above certain financial thresholds. Compliance is mandatory and breaches can result in legal challenges, contract suspension, and financial penalties.

UK procurement thresholds for 2024 are: Central government goods/services £139,688, Sub-central goods/services £223,502, Works contracts £5,588,047, Light touch services £663,540. These thresholds determine when full EU-derived procurement regulations apply. Below-threshold contracts still require fair and transparent processes but with more flexibility in procedures.

Yes, you can challenge public sector tender decisions through procurement challenge proceedings if there are grounds such as procedural errors, unfair evaluation, or breach of procurement regulations. Challenges must be brought within strict time limits - typically within the 10-day standstill period after contract award notification. The court can suspend contract award and order re-evaluation or damages.

Judicial review is the legal process for challenging decisions made by public bodies that are unlawful, irrational, or procedurally unfair. You can use it for immigration decisions, planning permissions, licensing decisions, or any administrative decision affecting your rights. Claims must be brought promptly, within 3 months of the decision, and you need permission from the court to proceed.

Judicial review costs include court fees of £154-£770 plus continuation fees, and legal costs typically ranging from £5,000-£50,000+ depending on complexity. Protective costs orders can limit your liability to £5,000 (individuals) or £10,000 (groups). Fee remission is available for low-income applicants, and legal aid may be available in exceptional cases with wider public interest.

A framework agreement is a purchasing arrangement between public bodies and suppliers that establishes terms for future contracts without creating binding commitments to purchase. It enables multiple call-off contracts over the framework period (maximum 4 years) with pre-agreed terms, prices, and suppliers. This provides efficiency, consistency, and aggregated purchasing power for public bodies.

While not legally required, specialist legal advice is strongly recommended for government contracts due to their unique terms, compliance requirements, and risk allocations. Government contracts involve complex performance monitoring, social value obligations, transparency requirements, and specialized termination provisions that differ significantly from commercial contracts. Legal expertise can prevent costly disputes and ensure compliance.

Judicial review applications must be made promptly and in any event within 3 months of the decision being challenged. Some cases have shorter time limits - planning cases are typically 6 weeks, and procurement challenges must be within the standstill period. The court can refuse permission for delays even within the time limit if there's no good reason for the delay.

The Public Services (Social Value) Act 2012 requires public bodies to consider economic, social, and environmental benefits when procuring services above EU thresholds. This includes local employment, skills development, environmental sustainability, and community benefits. Public bodies must undertake consultation and publish their approach to social value in procurement exercises.

Yes, government policy actively encourages SME participation in public procurement. Many frameworks reserve portions for SMEs, contracts are often divided into smaller lots, and procurement processes are designed to be SME-friendly. The government has a target for 33% of spending to go through SMEs either directly or through supply chains. Specialist advice can help SMEs navigate complex tender requirements.