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Procurement - Exclusions

EXCLUDED CONTRACTS

Examples of excluded contracts are: 

  • Utility Service Contracts (N.B covered by Utilities Contracts Regulations 2016)
  • Contracts for the acquisition of land and rights over land 
  • Contracts for programme material or broadcasting time
  • Contracts for legal services connected with litigation 
  • Loan Contracts 
  • Employment Contracts 
  • Works contracts that are subsidised by 50% by the contracting authority that relate to, by way of example, civil engineering activities and building works for hospitals and facilities intended for sports and schools.

THRESHOLD

For each class of contract, there is a value threshold and the rules will vary according to the contract value. The Procurement Regulations 2015 applies to all contracts procured over the value of £25,000 (£10,000 to contracts procured by central government authorities). Whilst these are below the ordinary thresholds for works, goods and services, the contracting authority must be aware of Regulations 109 – 112 of the Procurement Regulations 2015.

Procurement Regulations 2015 provides for a Light Touch Regime. Services when Light Touch Regime applies are listed in Schedule 3 of the Procurement Regulations 2015 and dealt with in more detail below. Services not listed in Schedule 3 will fall under the “all other services” category.

EXEMPTIONS

The application of the Procurement Regulations 2015 can be avoided in a number of ways. One of the most common methods is to use an in-house subsidiary company or have a collective providing the services or works or supplying the goods.

By way of a fictional scenario, a Local Council, being the Contracting Authority, is required to remove and process waste from its public area. As a result, the council provides this service by way of a supplier who is owned and controlled by the council itself.

A contract will fall outside the scope of the Procurement Regulations 2015 if the contract meets one of the following:

1.

Regulation 12 (1)Teckal

In the fictional scenario above, if 3 local authorities joined together to get remove and process public waste, they would use the following scheme.

This

This is knowm as the Teckal Exemption or the In-House Exemption, as the contracting authority will enter into an agreement with a supplier who is an internal provider

2.

Regulation 12 (2) – Coditel

The Teckal Exemption was extended under the Coditel Exemption, which provides that the In-House Exemption will apply where control is exercised jointly by a number of public bodies. This is also known as the Reverse Teckal Exemption.

3.

Regulation 12 (7) – Hamburg Waste

This is known as the Cooperation Exemption or the Hamburg Waste Exemption, which applies if there is an arrangement between public bodies and an external provider.

In the fictional scenario above, if 3 local authorities join forces to provide an external waste removal service to the public then this exemption will apply. No individual authority, or those three in the scenario, have any control over the supplier. All remuneration from the public will go to the supplier of the external service and the local authorities and if the supplier can no longer collect the waste and supply the services, the Contracting Authorities will look at a replacement service.


 

What Does It Mean To You?
Obligations If The Rules Apply - The Process
Procedure
Light Touch, Framework Agreements, Concession Contracts and Reserved Contracts


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