buyers

Comment on De La Rue taking steps to appeal against passport decision

UK passport

With the recent news* that British company De La Rue are looking to initiate appeal proceedings against the government’s decision to award the contract to make UK passports to French-Dutch company Gemalto, Penny Godfrey, General Manager of Millstream, comments:

 

“There are great benefits to British companies that have the opportunity to bid for European contracts and our public sector has to reserve the right to invite bids from outside the UK – these principles could shape how competitive our economy will be after Brexit. In this instance we must be aware that this display of political or domestic preference could be riding roughshod over fair market principles.

 

“De La Rue has the right to appeal the Government’s decision, but will have to base that appeal on a breach of wider procurement rules. There is no clear definition of what constitutes an abnormally low tender offer, but the risks to the contracting authority of an unsustainably cheap offer are clear: poor performance, the potential for hidden costs, and, ultimately, incurring the additional cost of re-tendering if things go awry.”

 

*Related article: http://www.bbc.co.uk/news/business-43623750

1 reply »

  1. I guess De La Rue could claim that the Contracting Authority will have failed to comply with its Transparency obligations if, having declared that the Award Criteria is MEAT (i.e. Best VfM), it hasn’t in fact taken proper account of e.g. “the risks to the contracting authority” of each offer (one of which may be “an unsustainably cheap offer”) in ‘calculating’ the MEAT scores of each Tender i.e. what the CA claims to be the Best VfM offer can be shown to be not the Best VfM offer.
    Incidentally, in relation to the original article quoted, I don’t understand what the reference to “the longer” standstill period is about: I thought that apart from the automatic suspension on the issue of a claim there was just the 10 day period which could be extended should the CA wish (or would have to start again if the CA had not issued a fully compliant Standstill Notice in the first place !).

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