Tag: value for money

The Procurement Act 2023’s Kaleidoscopic View of the Public Interest

Posted on by foluke.adebisi

Albert Sanchez-Graells, Professor of Economic Law, University of Bristol Law School

This blog post is based on the paper that was jointly awarded the Best Paper Prize Award 2024 by the Society of Legal Scholars. The paper will be published in Legal Studies in due course.(*)

Public procurement is concerned with the award of contracts for the supply, for pecuniary interest, of goods, services or works to the public sector. At its heart, public procurement governs the expenditure of public funds and, ultimately, should ensure that such expenditure is in the public interest. One could be forgiven for simplifying the goal of procurement to ensuring that public money is well spent, which could be further elaborated (following Schooner 2002) to encompass promoting integrity and value for money in the award of public contracts, and acting transparently to facilitate accountability. Even at this level of simplification, however, there is scope for contestation of e.g. what value for money entails (with a long-running debate on price/quality trade-offs), or whether it can or must (solely) be promoted through market-based competition (see e.g. Sanchez-Graells 2015, addressing the objections raised by Arrowsmith 2012 and Kunzlik 2013). (more…)

‘Computer says no’: Is automation in the public interest?

Posted on by foluke.adebisi

By Kit Fotheringham, Bristol Doctoral College (University of Bristol)

Photo by Francisco De Legarreta C. on Unsplash

In common with many developed nations, the public sector in the UK takes up a sizable proportion of economic activity. Therefore, the way the public sector is run is of interest to the public, both as citizens, who expect good administration of public services, and as taxpayers, who contribute to public finances. Of course, not all citizens are taxpayers (especially children and those on low incomes), nor can all taxpayers be regarded as citizens (notably, companies). Some scholars even question whether the balance sheet of a sovereign government with its own currency is comparable to the household pocketbook, positing that government spending contributes to overall money supply. Nevertheless, politicians play to the narrative that public money is the collective property of taxpayers, and seeking to persuade voters that their policies will offer the best protection against further encroachment on the economic interests of individuals. (more…)

Allowable Costs under the Single Source Contract Rules: Costs for work undertaken at risk before entering into a defence contract

Posted on by legalresearch

By Dr Luke Butler, Lecturer in Law (University of Bristol Law School).

38611963In an earlier blog, I introduced the Defence Reform Act 2014 (DRA), the Single Source Contract Regulations (SSCR) and the Single Source Regulations Office.[1] Collectively, these regulate the pricing of defence contracts awarded by the Ministry of Defence to a single source contractor. It is recalled that contractors can recover certain “Allowable Costs” incurred under a Qualifying Defence Contract (QDC) if they are appropriate, attributable to the contract, and reasonable in the circumstances (the so-called “AAR test”).[2]

But what if, ahead of the agreement of the contract, work relating to the contract is undertaken at risk pursuant to an “intention to proceed” (ITP) arrangement?[3] Unless the ITP fulfills the requirements for a legally binding contract, it cannot itself constitute a QDC.[4] This leaves the question whether this kind of pre-contractual work can constitute an Allowable Cost recoverable under the QDC once the QDC is in place. (more…)

Singling Out Defence Procurement: Contract Pricing under the Single Source Contract Regulations

Posted on by legalresearch

By Dr Luke Butler, Lecturer in Law (University of Bristol Law School).

38611963Whatever the fallout of Brexit, the UK will continue to take a leading role in the defence of Europe. In an age that will be defined by reduced defence budgets and increased security threats, the Government must ensure that the way it organises, procures and manages its defence capability delivers value for money. Historically, the legal aspects of defence acquisition have been largely underresearched. My latest monograph, UK Defence Acquisition: Organisation, Process and Management (Hart Oxford, forthcoming) will offer a first systematic analysis of an area currently undergoing unprecedented domestic legal reform. This blog focuses on efforts to regulate the escalating costs of defence contracts. (more…)