Conflicts of interest, below-threshold contracts & international obligations

Conflicts of interest

This duty is set out in sections 81 to 83, with a new requirement at section 83 to prepare a formal conflicts assessment ahead of publication of the tender notice.

Government guidance on conflicts of interest is available here. 

You can find our template Conflicts Assessment document here. 

Below-threshold contracts

The Act includes a new concept of “regulated below-threshold contracts”. These are contracts valued at over £12,000 (central government including NHS bodies) and £30,000 (sub-central authorities) but under the main value threshold for full application of the Act. 

A new concept of a Below Threshold Tender Notice is introduced.  This must be published whenever an authority chooses advertise to seek tenders for a regulated below-threshold contract.

It remains the case that an authority is not obliged to seek tenders in this way, and may to continue approach suppliers directly in relation to a regulated below threshold contract. The Below Threshold Tender Notice is only required where the authority chooses to advertise to seek tenders. 

A Below Threshold Contract Details Notice will be required for a regulated below-threshold contract in all circumstances and must be published as soon as practicable after the contract is signed.  

It is not permitted to restrict the submission of tenders for a regulated below threshold contract by reference to a supplier's legal/financial capacity or technical ability (i.e. by the use of conditions of participation/selection criteria). This means, for example, that it will not be possible to use a dynamic market to call off a regulated below threshold contract. 

Government guidance on below-threshold contracts is available here. 

Treaty state suppliers and international obligations

This part deals with an authority's obligations to suppliers from other states within whom the UK has an international trade agreement.

An authority may not discriminate against such a supplier nor treat it less favourably than a UK based supplier.

Schedule 9 sets out the current relevant international agreements (and secondary legislation will be used to update these provisions from time to time as needed).

The Act makes it clear that contracting authorities may disregard requests or tenders submitted by suppliers that are from countries with which the UK does not have a relevant international agreement.

Government guidance on Treaty State Suppliers is available here.