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Procurement Bill [Lords] - Sitting 6 (Afternoon)
07 February 2023
Type
Public Bill Committee
At a Glance
Issue Summary
Florence Eshalomi is addressing amendments related to the procurement system's debarment list and the exclusion of suppliers identified as national security risks or with serious misconduct. Florence Eshalomi discusses concerns about the Procurement Bill's provisions on discretionary versus mandatory exclusions for suppliers. Florence Eshalomi discusses the potential removal of forced organ harvesting as a discretionary exclusion ground in the Procurement Bill. Florence Eshalomi is proposing an amendment to the Procurement Bill to add a discretionary exclusion ground for suppliers who fail to adhere to UK sanctions regimes. The amendment aims to introduce discretionary grounds for excluding suppliers who have significantly breached workers' rights within three years. The statement discusses the Procurement Bill, focusing on schedule amendments and questioning the different timescales used in paragraph 16. The statement discusses the Procurement Bill's provisions related to supplier debarment, including notification requirements, investigation processes, and appeal mechanisms. The statement discusses amendments to the Procurement Bill regarding the debarment list and interim relief for suppliers. The statement addresses the requirement for the removal of surveillance equipment from government procurement if there is evidence of involvement in modern slavery or human rights abuses. The statement discusses the debate on Clause 65 of the Procurement Bill, which relates to excluding companies involved in human rights abuses from public procurement. Florence Eshalomi discusses and supports the Government amendment related to electronic invoicing requirements for public contracts. Florence Eshalomi is proposing an amendment to the Procurement Bill that would require the Secretary of State to produce a report within six months on the effectiveness of prompt payment terms for small and medium-sized enterprises (SMEs). The statement discusses amendments to the Procurement Bill regarding electronic invoicing and the exclusion of concession contracts from certain payment compliance requirements. The statement discusses Clause 70 of the Procurement Bill, which relates to the assessment of contract performance and the publication of information on key performance indicators and breaches. The statement discusses clauses in the Procurement Bill that aim to ensure prompt payment for subcontractors within a 30-day period. The statement discusses the Procurement Bill's provisions for modifying public contracts and convertible contracts. Florence Eshalomi discusses amendments to the Procurement Bill regarding contract modifications and publication requirements. The statement discusses amendments to clauses in the Procurement Bill [Lords] related to contract modifications and terminations. Florence Eshalomi is discussing the Procurement Bill's clauses regarding contract termination for suppliers convicted of serious crimes or posing national security threats.
Action Requested
Eshalomi proposes Amendments 23 and 24 to ensure that all suppliers on the debarment list are excluded from public contracts without discretion, arguing for a more stringent approach to protect public interests. She also questions the necessity of discretionary exclusion grounds for high-risk suppliers.
Key Facts
- Amendments 23 and 24 would make changes to clause 57 and remove subsection (b) respectively.
- The debarment list is intended for significant cases of supplier misconduct posing a risk to contracting authorities or the public.
- Only a small number of cases will be considered each year for inclusion on the debarment list.
- Florence Eshalomi addresses concerns about discretionary exclusions versus mandatory exclusions.
- The speaker suggests widening Schedule 6 to cover issues of national security.
- The proposal aims to ensure that suppliers with a risk to national security are excluded from public contracts.
- Amendment 87 seeks to remove the discretionary exclusion ground relating to forced organ harvesting.
- The Health and Care Act 2022 makes it an offence to travel outside the UK to purchase an organ.
- Lord Alton of Liverpool and Lord Hunt of Kings Heath made compelling arguments for including measures against forced organ harvesting in the Bill.
- Amendment 106 would add a discretionary exclusion ground for failing to adhere to UK sanctions regimes.
- Research from Yale identified over 1,000 companies in Russia rated on their continued presence after the invasion of Ukraine.
- The amendment seeks to mandate procurement considerations regarding compliance with sanctions.
- Amendment 112 seeks to add new discretionary exclusion grounds in relation to labour law infringements.
- It allows contracting authorities to exclude suppliers who have significantly breached workers' rights within three years unless they can provide convincing evidence of measures taken to prevent future breaches and compensate for damage caused.
- The amendment aims to promote high standards in the workplace by linking public procurement with good working conditions.
- Florence Eshalomi questions the decision-making process behind the different look-back periods outlined in paragraph 16.
- The statement pertains to the Procurement Bill's Schedule 7 and its application.
- Amendments 88, 42 to 44, 45 to 47, and 76 are discussed.
- Clause 59 requires contracting authorities to notify relevant Ministers within 30 days if they take action against a supplier or subcontractor under the exclusions regime.
- Clause 62 allows for the creation and publication of the debarment list by a Minister, with each entry specifying the name of the supplier, exclusion ground, and removal date typically five years after the event.
- New clause 15 provides suppliers the right to appeal debarment decisions in court.
- The amendments aim to clarify that each entry relates to one exclusion ground.
- An application for interim relief can suspend the Minister's decision to add a supplier’s name to the debarment list during an eight-working-day period.
- The Minister may remove an entry from the debarment list if satisfied that the supplier is no longer excluded or excludable.
- Clause 65 mandates the eventual removal of surveillance equipment if there is substantiated evidence of modern slavery or human rights abuses.
- Lord Alton of Liverpool moved amendment 94 to include this clause in the Bill.
- A report by Big Brother Watch found that around 2,800 public bodies use Hikvision and Dahua cameras, including 73% of local authorities, 63.4% of schools, and 60.3% of NHS trusts.
- Clause 65 would give the Government six months to publish a timeline for removal of technology from sensitive sites.
- The clause aims to exclude companies involved in serious crimes like modern slavery and genocide from public procurement.
- The Government is developing a new debarment regime but cannot specify which suppliers will be added.
- Amendment 50 ensures that electronic invoicing requirements do not prevent the use of specific invoice processing systems.
- Defence authorities are allowed to charge suppliers for using third-party systems due to security concerns.
- The amendment supports swifter payments, proper audit trails, and increased visibility on public contract spend.
- Analysis by Spend Network found big corporations win over 90% of contracts worth £30 billion annually deemed suitable for SMEs.
- Research from British Chambers of Commerce and Tussell indicates that only 21% of Government public sector procurement spending in 2021 was awarded to SMEs.
- Local government bodies spent the highest proportion (38%) with SMEs, followed by NHS bodies at 22%, while central Government only awarded 11%.
- Amendment 51 clarifies references to electronic invoices.
- Amendment 52 allows contracting authorities to require specific systems for processing electronic invoices.
- Clause 67 sets a standard of 30-day payment terms for public contracts, excluding concession contracts.
- Clause 68 requires publishing payments compliance notices every six months.
- Concession contracts are exempt from clause 68's provisions.
- Clause 70 requires annual assessment of key performance indicators with information published at least once every 12 months.
- Information on KPIs is to be published in accordance with clause 93.
- Subsection (5) mandates publication of breach notifications within 30 days.
- Clauses 71 and 72 relate to the treatment of subcontractors in the system.
- The Bill introduces a 30-day payment period as an automatic term for subcontractors.
- Clause 71 and Clause 72 are agreed upon and ordered to stand part of the Bill.
- Clause 73 outlines circumstances for modifying public contracts.
- Schedule 8 provides seven grounds for permitted contract modifications, including new grounds for urgency and materialised risks.
- Clause 74 mandates publication of contract change notices to enhance transparency and accountability.
- Amendment 54 removes an unnecessary provision in clause 74.
- Amendments 55 to 58 reduce burdens by requiring publication only when mandated, not for minuscule changes.
- Clause 76 mandates publication of modifications and altered contracts for larger contracts over £5 million.
- Only £18 million was clawed back from PPE contracts amid concerns about legal battles hindering recovery efforts.
- Clause 76 addresses contract modification publication requirements.
- Amendments limit the requirement to publish modified contracts to those modifications requiring a contract change notice under section 74.
- Clause 77 sets out implied right to terminate public contracts based on certain grounds, including breach of regulations and national security threats.
- Clause 78 requires ministerial approval for terminations related to national security risks.
- Clause 79 mandates the publication of contract termination notices within 30 days after termination.
- Clauses 77 to 79 deal with provisions allowing for termination of contracts under specific circumstances.
- The clauses include severe grounds such as human trafficking, slavery, corporate homicide, and terrorism.
- Discretionary exclusion grounds may lead to inconsistent treatment across different contracting authorities.
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