Impact of EU Procurement Rules on Councils

Report published by the Local Government Association in January 2011, presents the results of its survey of procurement officers requesting details of their experiences and opinions on EU procurement legislation. The purpose of the survey is to inform discussions ahead of the EC's proposals to modernise procurement legislation later in 2011.

It indicates that, while the majority of the 141 councils that responded feel the introduction of the Remedies Directive in 2009 has resulted in improved transparency and the more equal treatment of bidders, most believe associated procurement costs and adminstrative burdens had worsened as a consequence. The report also suggests that the increased threat of legal action has led some to adopt a more risk-averse approach when letting contracts which, in turn, may have had a negative impact on innovation.

While, perhaps understandably, some had noted an increase in informal challenges, rather disturbingly for auditors, a majority (69%) said that dealing with such challenges presented them with difficulties. Also worrying is that the most commonly identified challenges centred on legal uncertainties as to whether competitive tenders were required at all when sharing services with other public bodies.