Lord Berkeley – 2016 Parliamentary Question to the Department for Environment, Food and Rural Affairs
The below Parliamentary question was asked by Lord Berkeley on 2016-04-18.
To ask Her Majesty’s Government under what legislative provision OFWAT is able to waive the need for a public procurement process for lawyers and financiers for the Thames Tideway Tunnel for services contracts with fees of open-ended value, in the light of the limit for services contracts under the Public Contracts Regulations 2015 of £345,028.
Lord Gardiner of Kimble
The statutory provision is regulation 6(8) of the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/ 1582) ("the SIP Regulations"). This confers a power on Ofwat to waive the requirement imposed on a licensed infrastructure provider (being Tideway, in respect of the Thames Tideway Tunnel project) to put certain contracts out to tender under a modified version of the Utilities Contracts Regulations 2016 as set in Part 1 of Schedule 2 of the SIP Regulations. Tideway is neither a contracting authority nor a utility within the meaning of the Public Contracts Regulations 2015 or Utilities Contracts Regulations 2016 and so is not subject to the normal procurement rules.
Following a public consultation, Ofwat issued two notices under this provision that waived Tideway’s obligation to comply with the modified version of the Utilities Contracts Regulations in certain limited and defined circumstances. The second notice issued by Ofwat provided Tideway with a narrow exemption for certain specified professional services relating to their financing and corporate arrangements, and only to the extent that those services will be paid for by its shareholders rather than customers.
