Lord Berkeley – 2016 Parliamentary Question to the Department for Transport

The below Parliamentary question was asked by Lord Berkeley on 2016-03-07.

To ask Her Majesty’s Government, further to the Written Answer by Lord Ahmad of Wimbledon on 3 March (HL6235), what assessment they have made of whether a procurement process where there are only two genuine bidders complies with the EU rules and procedures for public contracts, which state that a minimum of three bids are required, and whether they have sought from the EU a derogation from that rule.

Lord Ahmad of Wimbledon

Rail franchising competitions are governed by Regulation 1370/2007 and not the Public Contracts Regulations 2015. Therefore, although the Department fully applies the EU treaty principles of transparency, equal treatment and non-discrimination, it is not obliged to follow the processes and procedures set out in the Public Contracts Regulations 2015.

Where a competition is to be held, Regulation 1370/2007 requires a fair competitive procedure, but does not stipulate the minimum number of bidders that is required to evidence this.