The UK regime governing procurement by public bodies and by utilities has today been overhauled by the introduction of two new sets of regulations – The Public Contracts Regulations 2006 and The Utilities Contracts Regulations 2006.

The new regulations consolidate and update the existing rules. They implement two corresponding EU Directives which were finalised in March 2004. The new rules come into effect on 31 January 2006 - just in time to meet the deadline for implementation of the EU Directives.

The main changes for procurements by public bodies involve:

  • a wholly new "competitive dialogue" procedure designed for PFI/PPPs;
  • detailed rules on the use framework agreements; and
  • rules governing e-procurement, including the use of e-auctions.

The main changes affecting utility procurements involve:

  • the identity of bodies subject to the rules;
  • new rules on awarding contracts to "affiliated undertakings"; and
  • a new mechanism for utilities to seek exemption from the regulations.

The new regulations also bring into force the requirement for a 10 day standstill period between notification of the award of a tender and entry into a contract with the successful tenderer in order to allow a realistic opportunity for third party challenges to be made. This implements the requirements deriving from the European Court’s decision in Alcatel.

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The UK regime governing procurement by public bodies and by utilities has today been overhauled by the introduction of two new sets of regulations – The Public Contracts Regulations 2006 and The Utilities Contracts Regulations 2006.

The new regulations consolidate and update the existing rules. They implement two corresponding EU Directives which were finalised in March 2004. The new rules come into effect on 31 January 2006 - just in time to meet the deadline for implementation of the EU Directives.

The main changes for procurements by public bodies involve:

  • a wholly new "competitive dialogue" procedure designed for PFI/PPPs;
  • detailed rules on the use framework agreements; and
  • rules governing e-procurement, including the use of e-auctions.

The main changes affecting utility procurements involve:

  • the identity of bodies subject to the rules;
  • new rules on awarding contracts to "affiliated undertakings"; and
  • a new mechanism for utilities to seek exemption from the regulations.

The new regulations also bring into force the requirement for a 10 day standstill period between notification of the award of a tender and entry into a contract with the successful tenderer in order to allow a realistic opportunity for third party challenges to be made. This implements the requirements deriving from the European Court’s decision in Alcatel.

The text of the Public Contracts Regulations 2006 can be found by clicking here.

The text of the Utilities Contracts Regulations 2006 can be found by clicking here.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 31/01/2006.