This could make the process more expensive for local authorities awarding in-house waste contracts, or delivering waste services in partnership with other councils, the LGA said.
The government intends the bill, which will go through the committee stage in the House of Lords from today (4 June), to shape the future of public procurement in the UK “for many years to come”.
Generally, public contracts awarded by local authorities are subject to procurement rules. This means deals go through the full competitive processes.
There are two exemptions, the first of which is when a public body makes ‘in-house’ awards. The second, which the LGA says is “less-used”, is when a public body enters into a public-public co-operation arrangement, for example where local authorities co-operate to deliver waste services jointly.
Under the proposed bill, deals will no longer be exempt if “the goods, services or works representing the main purpose of the contract could be supplied under a separate contract.”
The LGA, the national membership body for 328 of the 333 councils in England, warned in a statement that this could end up costing councils more.
They said: “We are concerned that the wording of this new provision will mean that if a private provider could reasonably provide the services or goods in question, the public sector will no longer be able to make use of these fundamental exemptions which save time and money and are essential to the effective delivery of public services.”
Amendments
The LGA called for the bill to be amended to “clarify” that each of these public sector arrangements will continue to be exempt and that the model of service delivery remains the choice of the contracting authority.
The LGA said such an amendment would ensure councils continue to work jointly with other public bodies to deliver “efficient” public services and “value for money”.
While the LGA says a proposed rewording put forward by Lord True is “helpful in this respect”, the membership body suggests further amendment is “essential” to “give proper effect to the government’s intentions”.
HRH Prince Charles announced the government’s plans to simplify public sector procurement at the State Opening of Parliament on 10 May (see letsrecycle.com story).
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