The regulations introduce strengthened measures aimed at combating fraud and corruption in public procurement. The emphasis is on increasing the transparency and traceability of decisions.
What is this about?
The regulations introduce strengthened measures aimed at combating fraud and corruption in public procurement. The emphasis is on increasing the transparency and traceability of decisions.
This is seen as a way of counter-balancing the new flexibilities in the regulations including the much greater scope to award contracts by negotiation.
The counter-fraud and corruption measures run right through the regulations including:
- Conflict of interests
- Market engagement
- Selection
- Changes to contracts
- Recording of procedures
- Retention of contracts
- Reporting
This section covers conflicts of interest, recording of procedures, retention of contracts and reporting. The other topics are addressed in the corresponding sections of the toolkit.
What is new?
Conflict of interests
Councils need to take appropriate measures to cover ‘any situation where relevant staff members have, directly or indirectly, a financial, economic or other personal interest which might be perceived to compromise their impartiality and independence in the context of the procurement procedure'.
Note that this includes staff of a procurement service provider acting on behalf of the council.
See Selection on the action which must be taken if there is a conflict of interests.
Recording of procedures
Councils must document the progress of all procurement procedures (i.e. the ‘audit trail'). Documentation justifying decisions must be kept.
The regulations give examples of what needs to be documented including communications with suppliers, internal deliberations and dialogue and negotiating sessions.
This documentation must be kept for at least 3 years from the contract award date.
Retention of contracts
Councils need to retain copies of higher value contracts for at least the duration of the contract. Under PCR 2015 this applies only to contracts for goods and services with a value of €1m or more and to construction contracts valued €10m or more.
Access must be granted to these contracts (there are certain exceptions to this rule including data protection).
Reporting
Councils must draw up a written report on every above-threshold contract, framework agreement and dynamic purchasing system (see electronic procurement).
Known as a ‘regulation 84' report, this document records information specified in that regulation. It can, where relevant, refer to information included in a contract award notice.
The report must be sent to the European Commission or Cabinet Office on request.