Government issues revised guidance on contract tendering and public spending disclosure

The two guidance documents set out that central Government departments should use online publishing tool 'Contracts Finder' to publish information they are obliged to share with the public.

Contracts Finder was set up in February in order for suppliers, buyers and the public to access information about Government contracts.

In January the Government introduced a requirement that details of all new central Government contracts worth more than £10,000 should be published in an effort to make the process more transparent. Since last September central Government departments have also had to publish tender documents for contracts worth more than £10,000 when planning to spend public money.

The Cabinet Office guidance details what information departments must publish using Contracts Finder.

Public sector organisations often advertise contract opportunities in the Official Journal of the European Union (OJEU) in order to comply with EU free trade laws. The EU's Public Contracts Directive sets out financial thresholds for specific kinds of contracts and requires some contracts above the thresholds to be made available to tender across the EU.

The guidance encourages the Government departments to use Contracts Finder to publish 'Prior Information Notices' (PINs), which are advance warnings of forthcoming contract opportunities.

"Early market engagement is known to enhance competition by enabling more suppliers, including SMEs, to respond," a Cabinet Office statement (4-page / 97KB PDF) said.

"Prior Information Notices can be used to signal your intention to industry. Departments are therefore encouraged to use PINs/speculative notices if they relate to a specific procurement or industry sector-specific market engagement activity," the statement said.

The Central Government contracts guide (30-page / 429KB PDF) also includes a test form that departments should use to report the expected value of consultancy contracts they have approved which are worth at least £20,000. The requirement to publish this information came into effect on 5 May.

"On completion of the contract, the proforma should be updated with a statement of the actual value delivered," the guide said.

The Tender Documentation guidance (22-page / 329KB PDF) said that departments may have to publish some details of contracts even if the copyright to the terms and conditions are owned by third-parties.

The Cabinet Office said departments should clearly label tender documents when the process closes.

"We have received reports of suppliers attempting to bid for opportunities that are already closed," the Cabinet Office said in its statement.

"Ensuring that applicable dates ... are clearly marked on the tender documents would help reduce the frequency of such enquiries," it said.