These changes have been introduced in light of the requirements of the UK’s new Free Trade Agreements with Australia and New Zealand and apply to all public procurement. The main change to current procurement regulations is the removal of the use of the Prior Information Notice for making a call for competition (and the Periodic Indicative Notice in the Utilities Contracts Regulations 2016 (UCR 2016)). This applies to both the Public Contracts Regulations 2015 (PCR 2015) and the UCR 2016. Whilst not widely used, it is important for contracting authorities and utilities to be aware of this change.
There are also changes in the procedure to calculate the value of lots and procurements which apply to the PCR 2015, UCR 2016 and Concessions Contracts Regulations 2016 (CCR 2016). The amendments provide that where the value of one or more lots cannot be estimated then the aggregate value of the lots awarded cannot exceed 20% of the aggregate value of all the lots which can be estimated.
Other changes also provide that where the value of a contract cannot be estimated, contracting authorities must treat it as being equal to the relevant threshold, and therefore apply the full regime.
A new provision has been added that prevents contracting authorities from terminating contracts in such a way that “circumvents their obligations” under PCR 2015. For all the details see PPN 05/23: Implementing new Free Trade Agreements.
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