The following is an extract from Third Sector Online. The entire article demonstrates the general lack of understanding of the options which are available to organisations if they believe that there is clear and demonstrable evidence of a lack of compliance with the procurement regulations. TfC has written an open letter to ACEVO which sets out the options which exist. These have become well established over the past twelve years, and are used on a regular basis by many organisations. Indeed judgements by the UK courts and the European Court of Justice (ECJ) in Europe continue to guide the development of the procurement processes on an ongoing basis. The European Commission has recently noted "an increased willingness of UK Part B providers to challenge". Further a number of Local Authorities now have procurement specialist barristers retained to provide advice regarding the process. A new Remedies Directive is expecetd to be published by the EU later in the Autumn which will provide further clarification for organisations wishing to challenge the decisions of the purchasers. For these reasons an organisation can never regard itself as "tender ready" but needs to keep updated as procurement methodology develops. The extract follows, our open letter is attached.
Acevo to probe DWP procurement system
By Paul Jump, Third Sector Online, 17 September 2007
Chief executives body Acevo is to launch an independent enquiry into the Department for Work and Pensions' procurement procedures, after just two out of 16 Pathways to Work contracts announced last week were awarded to sector organisations.
Disability and employment charity the Shaw Trust won Pathways contracts to run employment and health support schemes for people claiming incapacity benefits in Greater Manchester and East & West Norfolk. However, it lost out to private sector firms in another 14 Jobcentre Plus regions, including several it currently serves under existing New Deal arrangements.
Paul Bristow, the trust’s director of corporate communications, said the charity was delighted to have won the two contracts. “Manchester is the second-largest contract, so if you look at the before and after figures, we will serve more clients,” he said.
However he admitted the trust was disappointed to have lost out in the regions and was concerned that its staff were "looked after properly" when they tranferred to the private firms. He said "These are very difficult times for them. Our HR department is liaising with the successful bidders".
Stephen Bubb, chief executive of Acevo, said the sector had been "comprehensively stuffed" by the DWP's procurement practices, with many voluntary organisations having missed out on contracts............................
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Karin Pappenheim is chief executive of disability employment charity Employment Opportunities, which also missed out on a number of Pathways contracts. She said: "Organisations like ours have proved we can generate great results, and we are extremely concerned about the bias shown to the private sector. We need to look into whether the sector is getting a real opportunity to engage."
For the complete article pleasee see Third Sector Online, 17th September 2007.