Key Facts

• The Procurement Bill includes 124 clauses in 13 parts and 11 schedules.
• Subsection (2) of Clause 1 defines 'procurement' to include all steps from contract award to termination.
• The Minister has tabled 71 amendments, adding to the hundreds already made during its passage through the House of Lords.
• The amendment aims to remove 'including the NHS' from clause 2(2)(a).
• This move addresses concerns about legal clarity and uncertainty related to NHS bodies as contracting authorities.
• Removal ensures that all intended NHS bodies are included within the definition without unintended inclusions or exclusions.
• Clause 116 would delete the power agreed by Parliament in the Health and Care Act 2022 for DHSC to make healthcare procurement regulations appropriate for patient care.
• The provider selection regime received strong support from health and care stakeholders following extensive consultations since 2021.
• Approximately 2.4 million dwellings in England were managed by housing associations in 2021, according to the latest English Housing Survey statistics.
• The statement covers Clause 3 - Public contracts.
• Government amendments 85 and 86 are proposed.
• Paragraphs 25, 31, and 32 of schedule 2 will be transferred to other parts of the Bill.
• Clause 3 classifies three types of public contracts: supply of goods, services and works; frameworks providing for future awards; and concession contracts.
• Schedule 2 outlines exemptions from procurement rules, including national security provisions that allow local contracting when armed forces are deployed abroad.
• Paragraph 1(2) of Schedule 2 applies a reasonableness test to determine if parts of contracts can be exempted or must follow competitive procurement procedures.
• The World Trade Organisation’s revised agreement on government procurement sets threshold levels based on currency shifts over a two-year period.
• As of January 2023, inflation rose by 9.2% in the UK.
• Local Government Association research shows that vertical and horizontal arrangements saved nearly £200 million in 2018-19.
• Amendments made to ensure certain types of contracts (listed in Part 1 of Schedule 2) are always exempted from being public contracts.
• Paragraph 25, and paragraphs 31 and 32 of Schedule 2 will be transferred to a new part of the schedule to ensure such contracts are always exempted from being public contracts.
• The amendments aim to close loopholes and simplify procurement processes.
• Clause 4 requires contracting authorities to estimate contract values according to schedule 3.
• Paragraph 4 in schedule 3 includes an anti-avoidance mechanism.
• Clause 5 safeguards against mixing above-threshold and below-threshold contracts for avoiding rules.
• Clause 6 explains the scope of utilities contracts under the Procurement Bill.
• Schedule 4 defines utility activities in water, energy, and transport sectors.
• The current threshold for general utilities contracts is £426,955 compared to lower thresholds for central Government authorities (£138,760) and sub-central Government authorities (£213,477).
• Shareholders of TransPennine Express are set to earn a share of £75 million despite performance issues.
• The west coast franchise has been mismanaged by Avanti.
• Thames Water has failed to maintain its pipes, leading to increased water rates and disruptions.
• NatWest on Clapham High Street plans to close without notifying all customers.
• Southern Water was found guilty of breaching water quality standards while the CEO received a six-figure bonus.
• British Telecom/Openreach planned redundant local engineers in fire and rehire schemes.
• Clause 7 defines 'defence and security contract'.
• It includes contracts within the scope of the Defence and Security Public Contracts Regulations 2011.
• It also covers other contracts specified in subsection(1)(g).
• A defence authority contract is a specific type of defence and security contract entered into by a defence authority.
• The Ministry of Defence spent £15.9 billion on procurement in 2019-20.
• The Nuclear Decommissioning Authority's failure led to a £122 million cost to the taxpayer for Magnox nuclear reactor decommissioning.
• Labour’s “Dossier of waste” reports that the Ministry of Defence wasted at least £13 billion between 2010 and 2021, with key examples including £595 million on cancelled Warrior armoured vehicle programme and £530 million in overspends for the Protector drone programme.
• There are 42 out of 45 major defence programmes not on time or budget.
• The MOD is dealing primarily with tier 1 suppliers, limiting direct interaction with smaller subcontractors.
• A significant number of jobs are being created through MOD contracts in Scotland.
• The supplier development programme aims to link public authorities and suppliers but has not received adequate input from the MOD.