Costs soar as EU change procurement rules

Source: supplymanagement.com

Changes to European Union (EU) procurement rules have raised costs and hampered effective purchasing according to a recent survey of public sector buyers.

The amendments centre on steps that suppliers can take to challenge the award of a public contract.

The remedy of ‘ineffectiveness’ will now give courts the power to scrap a contract if it has not been advertised, the standstill period has been ignored or if the rules governing a framework agreement have been broken. 

Two thirds of buyers said procurement costs and administrative burdens had increased as a result of the directive, while 54 per cent felt the purchasing process had become more complicated.

The new directive has also hindered councils’ attempts to overcome cuts in funding by procuring and delivering services in more innovative ways.

Seventeen per cent of purchasers said their local authority had been legally challenged by an unsuccessful bidder in the 12 months prior to November 2010.
Most buyers wanted clearer, more easily accessible guidance and support from the EU.

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