Market engagement

What is this about?

The regulations for the first time expressly allow market engagement (‘preliminary market consultations') during pre-procurement planning.



This validates the value-adding role of market engagement at the same time as providing reassurance that it does not conflict with the EU rules. 



The regulations also describe what needs to be done to prevent competition being distorted. Specific safeguards are built in to help counter fraud and corruption.

What is new?

The regulations allow ‘preliminary market consultations' to be carried out before a procurement is started. This can be done with a view to preparing the procurement and informing the economic operators of the contracting authority's procurement plans and requirements.

The council can seek or accept advice from independent experts or authorities or from market participants.

That advice can be used in the planning and conduct of the procurement procedure. This is on the proviso that it does not have the effect of distorting competition and does not result in a violation of the principles of non-discrimination and transparency.

Additional safeguards are built in to cater for situations where a supplier that is applying or tendering, or a related business -

• has advised the council (not only in the context of preliminary market consultations), or
• has otherwise been involved in the preparation of the procurement procedure.

In these circumstances the council must take steps to ensure competition is not distorted including –

• communicating the information exchanged or resulting from the involvement to other suppliers who are applying or tendering.
• fixing appropriate time limits for the receipt of tenders.

The supplier must only be excluded from the procurement if there is no other way to ensure equal treatment and they must be given an opportunity to prove their involvement is not capable of distorting competition.