RESTRICTED  
  
GPA/ACC/GBR/9  
 
3 August 2018  
(18-4938) Page: 1/5 
Committee on Government Procurement  Original: English  
 
ACCESSION OF THE UNI TED KINGDOM TO THE A GREEMENT ON GOVERNME NT 
PROCUREMENT IN ITS O WN RIGHT  
The following document from the United Kingdom, dated 3 August 2018, is being circulated at the 
request of the Delegation of the European Union.  
 
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REPLIES OF THE UNITE D KINGDOM TO COMMENT S AND QUESTIONS FROM  THE  
UNITED STATES (GPA/A CC/GBR/8) REGARDING THE UNITED KINGDOM 'S REPLIES TO 
THE CHECKLIST OF ISS UES (GPA/ACC/GBR/2)  
 
We thank the United States for its interest in the UK’s accession to the GPA and its comments and 
questions. The UK has prepared the following answers to these questions and is looking forward to 
further constructive dialogue with the United States and all GPA Parties.  
 
1  LEGAL FRAMEWORK  
1. In its response to Question 1.2., the United K ingdom notes that Public Services 
(Social Value) Act 2015 requires contracting authorities, before carrying out 
procurements for public services contracts subject to the PCR 2015, to consider how 
what is proposed to be procured might improve the economic, social, and environmental 
well-being of the relevant area. This appears to be implemented, in part, through the 
Procuring Growth Balanced Scorecard, issued by the Crown Commercial Service. The 
Scorecard paper provides recommended metrics for measuring impa ct including "UK 
content of government supply chains " (Strategic Theme 3. Supply Chain), "number of 
UK jobs created or sustained by new government contracts " (Strategic Theme  4. 
Employment & Skills), "number of apprenticeships created by new government 
contracts " (Strategic Theme 4. Employment & Skills), and "number of 
charity/community events hosted " (Strategic Theme 7. Outcome Benefits "). 
The UK response to the Checklist of Issues (GPA/ACC/GBR/2) question 1.2 incorrectly refers to the 
Public Services (Soc ial Value) Act 2015. This should refer to the Public Services (Social Value) Act 
2012.  
a. How is "relevant area " defined?  
The "relevant area " for the purpose of the authority considering how what is proposed to be 
procured might improve the economic, social,  and environmental well -being of the relevant 
area is defined in Section 1(4) of the Act as follows: "the relevant area " means the area 
consisting of the area or areas of the one or more relevant authorities on whose behalf a 
public services contract is, o r contracts based on a framework agreement are, intended to 
be made.  
 GPA/ACC/GBR/9  
 
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  b. Can the United Kingdom explain whether local employment/hiring either in the 
delivery of a good or service being procured or in the manufacture of a good 
being procured can be taken into  account when assessing the economic, social, 
and environmental well -being of the relevant area?  
 Under the Act, the authority must consider how what is proposed to be procured might 
improve the economic, social and environmental well -being of the relevant  area and how, in 
conducting the process of procurement, it might act with a view to securing that 
improvement. This must be done before the procurement has commenced. The authority 
remains subject to the UK 's obligations in relation to covered procurement s under the GPA 
and in UK law to offer to the suppliers and economic operators of GPA states treatment that 
is no less favourable than the treatment accorded to the suppliers and economic operators 
of the UK. In addition, in relation to covered procurement s, UK procuring authorities are 
required by UK law to treat economic operators equally and without discrimination and to 
act in a transparent and proportionate manner. UK legislation does not distinguish between 
national suppliers and foreign suppliers.  I t does not discriminate on the basis of the country 
of establishment, foreign affiliation or ownership nor does it discriminate on the basis of the 
country of production of the goods or services being supplied . 
 
c. Can the United Kingdom explain whether inves tment or a promise for future 
investment by a potential supplier in a "relevant area " can be taken into 
account when assessing the economic, social, and environmental well -being of 
the relevant area for a particular procurement?  
 Under the Act, the authority must consider how what is proposed to be procured might 
improve the economic, social and environmental well -being of the relevant area and how, in 
conducting the process of procurement, it might act with a view to securing that 
improvement. This must be done before the procurement has commenced. The authority 
remains subject to the UK 's obligations in relation to covered procurements under the GPA 
and in UK law to offer to the suppliers and economic operators of GPA states treatment that 
is no les s favourable than the treatment accorded to the suppliers and economic operators 
of the UK. In addition, in relation to covered procurements, UK procuring authorities are 
required by UK law to treat economic operators equally and without discrimination and  to 
act in a transparent and proportionate manner. UK legislation does not distinguish between 
national suppliers and foreign suppliers. It does not discriminate on the basis of the country 
of establishment, foreign affiliation or ownership nor does it dis criminate on the basis of the 
country of production of the goods or services being supplied.  
 
d. Can the United Kingdom explain the steps it is taking to ensure that the focus 
on social benefit or improvement of social well -being does not serve as 
restriction  on international trade?  
 The United Kingdom takes its international obligations and international trade extremely 
seriously. In its guidance to contracting authorities, the UK government emphasises the 
need for international obligations to be followed scr upulously and where social 
environmental factors are taken into account, that all suppliers, regardless of nationality, are 
treated equally and without discrimination. An example of such guidance is "Procurement 
Policy Note: Ensuring compliance with wider international obligations when letting contracts 
(February 2016). " https://www.gov.uk/government/publications/procurement -policy-note-
0116-complying -with-international -obligations  
 
2. In its response to Question 1.2., the United Kingdom notes that Scotland has 
adopted a similar sustainable procurement duty in the Procurement Reform (Scotland) 
Act 2014 and the Procurement (Scotland) R egulations 2016. This duty appears to 
require the consideration how conducting the procurement process might improve the 
economic, social, and environmental well -being of the relevant area, as well as facilitate 
the involvement of SMEs. Can the United King dom explain how Scotland facilitates the 
involvement of SMEs in practice?  
In Scotland, there is a requirement to consider how, in conducting a regulated procurement, an 
authority can facilitate the involvement of SMEs, third sector bodies and supported bus inesses. 
This forms part of the sustainable procurement duty set out in the Procurement Reform (Scotland) GPA/ACC/GBR/9  
 
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  Act 2014. Scottish Ministers have published statutory guidance under that Act which authorities 
must have regard to:  https://www.gov.scot/Resource/0049/00496919.pdf .  
 
3. In its response to Question 1.3., the United Kingdom notes that the Trade Bill 
provides power to any Minister of the Crown or devolved administration to make 
regulations for the purpose of implementing the GPA. Can the United Kingdom please 
explain the process for making new regulations under the power granted by the Trade 
Bill?  
The Trade Bill provides a power to allow the UK to make regulations to implement its G PA 
obligations as an independent member of the GPA, and to implement new accessions to and 
withdrawals from the GPA. The GPA power in the Trade Bill does not allow for amendments to the 
UK's public procurement law beyond these limited powers, which are int ended to ensure continued 
application of the GPA in the UK upon exit from the EU. The Explanatory Notes to the Trade Bill 
provide a more detailed explanation of the Bill and can be found at the following address:  
https://services.parliament.uk/Bills/2017 -19/trade/documents.html  
 
The process for making the statutory instrument that will implement the GPA is known as the 
negative procedure. A negative statutory instrument mu st be laid in the UK Parliament, usually a 
minimum of two months after the relevant power comes into force (in this case the power to 
implement the GPA in the Trade Bill). The statutory instrument can come into effect at least 
21 days after being laid and becomes law when the Minister signs it.  
 
2  SCOPE AND COVERAGE  
4. In its response to Question 2.4., the United Kingdom notes that its market access 
offer provides an indication of the types of Annex 3 entities covered by the UK 's GPA 
offer. Can the United Kingdom indicate whether there are any entities covered by PCR 
2015 or PCSR 2015 that are Annex 3 -type entities but not included on the UK market 
access offer? If yes, please provide a list of the entities covered by PCR 2015 or  PCSR 
2015 but not listed.  
Coverage of entities under Annex 3 of the UK market access offer is determined by reference to 
entities whose procurement is covered by the Utilities Contracts Regulations 2016 and the Utilities 
Contracts (Scotland) Regulations 2016 which are contracting authorities or public undertakings 
and which have as one of their activities any of those referred to in Annex 3.  
 
3  NON-DISCRIMINATION  
5. In its response to Question 3.2., the United Kingdom states that there were no 
provisions in th e UK legislation that accorded domestic goods, services and suppliers 
more favorable treatment than non -domestic goods, services and suppliers in 
procurements covered by the UK 's GPA offer. Can the United Kingdom provide 
information on any national or loca l provisions that establish a preference for domestic 
goods, services and suppliers in procurements not covered by the UK 's GPA offer?  
There are no buy local requirements or buy local legal restrictions applied on services that are 
excluded under the UK ma rket access offer.  As explained in the UK 's response to the Checklist of 
Issues (GPA/ACC/GBR/2) contracting authorities and contracting entities are required, in relation 
to procurements covered by the UK 's GPA offer, to offer to the works, services, suppl ies and 
economic operators of GPA states treatment that is no less favourable than the treatment 
accorded to the works, supplies, services and economic operators of the EU. In addition, the 
general principles which apply to public procurement in the UK req uire contracting authorities and 
contracting entities to treat economic operators equally and without discrimination and to act in a 
transparent and proportionate manner. These provisions in UK domestic legislation will continue 
once the UK leaves the EU.  
 
For transparency purposes, we would like to inform you that, under the Utilities Contracts 
Regulations 2016 and the Utilities Contracts (Scotland) Regulations 2016, contracting authorities 
and contracting entities are permitted to reject a tender submitte d for the award of a supply 
contract where the proportion of the products originating in third countries exceeds 50% of the GPA/ACC/GBR/9  
 
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  total value of the products constituting the tender. These provisions provide an option for 
contracting authorities and contracting entities when considering bids from third countries, i.e. 
those not covered by the UK 's GPA offer or by other international agreements related to 
procurement. These provisions do not apply to procurements covered by the UK 's GPA offer and 
therefore do not impact on commitments made under the GPA to GPA parties.   
 
5  ELEMENTS SPECIFIC TO  PROCUREMENT PROCEDUR ES 
6. In its response to Question 5.1., the United Kingdom describes the light touch 
procurement procedure, noting that it applies for social and other specific services 
above a threshold of £615,278. Can the United Kingdom provide a list of the "social and 
other services " that can use the light touch procurement procedure?  
The list of social and other specific services is set out in Annex XIV to Directive 2014/24 for the 
relevant CPV codes.  
 
7. In its response to Question 5.4., the United Kingdom note that the te chnical 
specifications may reference (in order of priority): national standards transposing 
European standards, European Technical Assessments, common technical specifications, 
international standards, other technical reference systems established by the E uropean 
standardization bodies, or when none of these exist, national standards, national 
technical approvals or national technical specifications relating to the design, calculation 
and execution of the works and use of the supplies. Can the United Kingdo m explain how 
this aligns with the requirements under Article X:2.b.?  
Domestic provisions on technical specifications in the UK comply with GPA obligations. Any 
reference to standards must be accompanied by the words "or equivalent " (see for example 
Regula tion 42(11) of the Public Contracts Regulations 2015).  
6  INFORMATION  
8. In its response to Question 6.3., the United Kingdom notes that the notices of 
intended procurement must generally include information on tendering for lots where a 
contract is going to be  subdivided into lots. The United Kingdom does not provide any 
additional information on how contracts are divided into lots.  
a. Please explain how the decision is made to divide a contract into lots and the 
decision to limit a maximum number of lots to a par ticular supplier. Who is 
empowered to make a decision, and is there any guidance developed by the 
United Kingdom on when decisions are made? Does this requirement apply only 
to the procurement of goods or does it also apply to the procurement of 
services?  
 The decision to divide a contract into lots and the decision to limit a maximum number of 
lots per supplier is made by the contracting authority or contracting entity. The decision 
must be made before the procurement is commenced as the division into lot s and, if 
relevant, the maximum number of lots that can be awarded to any one supplier, must be 
indicated in the contract notice. The UK has not issued any guidance on when the decision is 
made as this is clear from the relevant laws. Contracts for goods, services or works can be 
divided into lots.   
 
b. As part of bidding for several or all of the lots in a given procurement, does a 
supplier have to submit one bid per lot, or would a single bid be acceptable for 
several or all lots?  
 The contracting authority  or contracting entity must indicate in the contract notice or in the 
invitation to confirm interest whether tenders may be submitted for one, for several or for 
all lots.  GPA/ACC/GBR/9  
 
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  c. Has the United Kingdom studied how smaller contract sizes may affect the level 
of interest from foreign suppliers?  
 The UK has not undertaken any study into how smaller contract sizes may affect the level of 
interest from foreign suppliers.  
 
d. What steps does the United Kingdom take to ensure that division into lots does 
not serve as a rest riction on international trade?  
 The UK does not consider the division into lots as a restriction to international trade.  
 
9. In its response to Question 6.5., the United Kingdom notes that contracting 
authorities and contracting entities are required to publish notices of contract award 
within 30 days of the date of award by sending information to the EU Publications Office 
for publication in the Official Journal of the European Union. The United Kingdom notes 
that in any event, the United Kingdom intends  to continue to require publication of 
notices on a suitable platform post exit. Does the United Kingdom intend to continue to 
use the EU 's Tenders Electronic Daily system to publish contract award notices as well 
as other notices (such as the notice of in tended procurement)?  
Provisions in UK domestic legislation which currently require notices to be sent to the EU 
Publications Office for publication in the Official Journal of the European Union (ted.europa.eu) will 
be amended as the UK leaves the EU and no  longer has access to the Official Journal of the 
European Union to refer to a suitable replacement platform . 
 
10. Question 6.7. deals with information given to unsuccessful tenderers regarding 
reasons why a tender was not selected. In its response, the United  Kingdom notes that 
it does not provide a notice to all bidders under a limited set of circumstances (including 
when there is a sole bidder or when a contract is awarded under a framework 
agreement). Do these exceptions also apply to publishing a contract award notice, or are 
there other reasons that the United Kingdom may not publish a notice of contract 
award?  
A contract award notice must be published after the award of a contract or the conclusion of a 
framework agreement. A contract award notice is stil l required where there is a sole bidder but is 
not required to be published on award of a call -off contract under a framework agreement.   
 
11. As noted above, Question 6.7. deals with information given to unsuccessful 
tenderers. Question 6.8. is about providi ng information to interested GPA Parties. The 
United Kingdom response to Question 6.8. cites the response to Question 6.7. However 
the UK response to Question 6.7. refers to "economic operators who participated in the 
procurement process " and not GPA Parti es. Can the United Kingdom specify the 
procedures that UK government will have in place to ensure, as foreseen in Article 
XVII:1 of the Agreement, the prompt provision to any other GPA Party, on request, of 
any information necessary to determine whether a procurement was conducted fairly, 
impartially and in accordance with the Agreement, including information on the 
characteristics and relative advantages of the successful tender?  
UK procurement law requires contracting authorities to maintain for each pro curement a written 
report on the procurement, including the reasons why a particular tender was selected. 
Contracting authorities must send to the Cabinet Office of the UK a copy of the report (which can 
include any other information the Cabinet Office may  request). The UK will use this report in order 
to satisfy any request for information from a GPA party pursuant to Article XCII:1 of the GPA.   
 
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