Learn more about PCR2015 and how you need to comply with procurement regulations
The Welsh Sports Association (WSA), Community Leisure UK (CLUK) and WSA partners 2buy2 are leading a procurement service for the Sport & Leisure sector, that will bring largescale savings and financial relief to members at a very challenging period. It is therefore critical to be acquainted with PCR2015 and procurement regulations that organisations must comply with.
Our procurement service is live, with a self-service procurement portal due in the next few weeks. To access procurement support for Energy / Utilities etc, please access the Sport & Leisure Procurement Service here.
We are confident that the portal will rapidly prove it’s worth and be able to deliver real cost savings for our members over the coming months and years, allowing you to reinvest in delivering your core activities.
What members need to know about procurement regulation PCR2015?
Public sector organisations are subject to regulation on how they undertake procurement and subsequently award contracts. This law is enshrined in the Public Contracts Regulations (PCR) 2015, which is the UK’s transposition of the EU Procurement Directives.
Despite leaving the EU, these regulations are still in force and require all public sector organisations (and those to whom the PCR 2015 apply) to follow strict processes and regulations when undertaking procurement and awarding contracts.
The PCR2015 regulations are underpinned by a set of ‘core principles’ which include:
- Contracting authorities shall treat all economic operators (suppliers) equally and without discrimination (equal treatment)
- Act in a transparent and proportionate manner
Those subject to PCR2015 are referred to as ‘contracting authorities’ and as such are subject to scrutiny on how procurements have been undertaken and contracts awarded. Contracts must be awarded following an advertised competitive tender process that is based on relevant, proportionate, and objective evaluation and award criteria.
Failure to adhere to the PCR2015 regulations can land a contracting authority in court resulting in fines, delays to contracts and financial penalties paid out to aggrieved bidders.
Thresholds where PCR2015 applies
PCR2015 applies where the estimated ‘whole life value’ (the total spend over the duration of the contract including any proposed contract extensions) of the contract meets or exceeds certain thresholds. These thresholds are reviewed every two years by the government.
The current thresholds noted below are applicable from 1st January 2022 and these figures are all inclusive of value added tax (VAT).
The PCR value thresholds are:
- Works contracts: £5,336,937
- Supplies and most services contracts: £138,760 for central government bodies and £213,477 for other contracting authorities
- Contracts for social and certain other types of services: £663,540
It should be noted that where one or more contracting authorities are procuring jointly then it is the total value of the contract over the duration which is used as the calculation as to whether the above threshold apply.
Contracts below the thresholds are not subject to the full measure of the PCR2015 regulations but contracting authorities are still obliged to follow the principles of fair and equal treatment, transparency, and proportion, and ensure that contracts are awarded based on value for money.
Contracting authorities caught by PCR2015 are required to choose from various ‘tender’ procedures for advertising their contracts. Each procedure (Open, Restricted, Negotiated, Competitive Dialogue) has strict processes and time-limits for how to conduct the tender as well as advertisement requirements.
Specialist professional procurement advice should be sought for any contracting authorities who are looking to embark on a PCR2015 procurement procedure.
If members require expert advice on any of the matters above, you can contact WSA partners 2buy2, who are leading the procurement service for the sport and leisure sector.
Discover more about this procurement solution on our dedicated Sport & Leisure Procurement Service page.