Public Procurement Euro-directive to Favour Third Sector

The European Commission has published a directive on public procurement that is expected to make it easier for charities to win public sector contracts. This will provide a framework in which the third sector could become the default provider of choice for many public services. It is hoped that the public procurement reform proposals will have the potential of creating a defining moment in the charity sector’s role in public service delivery.

Effects of the Directive

The directive proposes that public sector commissioners should consider the social impact of organisations that bid for contracts and not to focus solely on cost. 

However, it is not clear whether this part of the directive would place additional requirements on the UK government, which is already backing a private member’s bill, introduced by Chris White, the Conservative MP for Warwick & Leamington.

The proposals contain other reforms that could further strengthen the sector’s hand: an apparent obligation for public authorities to explain why they are unable to break a large contract into smaller units leaves the door open for the sector to access more opportunities to improve public services.

The proposals provide the scope to prohibit the choice of social services providers being made solely on cost grounds.  This is currently only an optional extra for national governments and is not mandatory.