Report on the Consultation on the draft Public Contracts and Utilities Contracts (Postal Services) Amendment (Scotland) Regulations 2008
Introduction
1. This report contains a summary and analysis of comments received in response to the consultation on the draft Public Contracts and Utilities Contracts (Postal Services) Amendment (Scotland) Regulations 2008.
Background
2. The Scottish Government published its consultation on the draft Public Contracts and Utilities Contracts (Postal Services) Amendment (Scotland) Regulations 2008 on 19 September 2008. Currently, procurement undertaken by the contracting authority known as the Postal Business of the Post Office is regulated by the Public Contracts (Scotland) Regulations 2006 ( SSI 2006/1). As part of our obligation to implement the Utilities Directive (2004/17/EC), we are required to bring postal services and certain related services within the scope of the Utilities Contracts (Scotland) Regulations 2006 ( SSI 2006/2) by the end of 2008. The proposed amending regulations will make the necessary changes to the Public Contracts (Scotland) Regulations 2006 and the Utilities Contracts (Scotland) Regulations 2006.
Consultation responses
3. We received one response to the consultation, from the Corporate Procurement Unit, Glasgow City Council. Glasgow City Council made the following points:
- Awaiting recommendations on Postal Services via the Hooper Report due to be published in October 2008. How will this effect the Scottish regulations?
- OGC Framework Agreement for Postal Services due to expire 31/03/2009/10. We believe the OGC are awaiting the recommendations of the Hooper Report before commencing their strategy for the new Framework Agreement. In this regard how will any resulting Scottish Government Framework Agreement differ from the OGC Framework Agreement in accordance with Regulations?
- What improvements/benefits do you anticipate in terms of best value and service delivery with the impact of this alteration?
- What if any, concerns do you have regarding the change?
Analysis of comments
4. Our response to Glasgow City Council provided the following information:
- The draft Regulations provide for the introduction of a new category called 'postal services' in Schedule 1 of the Utilities Contracts (Scotland) Regulations. This names Royal Mail Group Limited as the entity covered and sets out the relevant activities in relation to which procurement will be covered. In anticipation of any potential change to the current situation, it also refers to 'any other relevant person'. The Regulations would therefore apply to any contracting authority, public undertaking, or organisation which carried out the activities listed in the second column of Schedule 1 on the basis of a special or exclusive right.
- Procurement Scotland is developing its strategy for a national (Category A) postal services contract, which will involve dialogue with stakeholders via the procurement Centres of Expertise.
- The effect of the amendments will be to remove procurement undertaken by Royal Mail relating to the provision of postal and some other services from the Public Contracts (Scotland) Regulations and bringing it within the scope of the Utilities (Scotland) Regulations. This will allow Royal Mail more flexibility in its procurement processes although it must still treat suppliers equally and without discrimination and act in a transparent manner. It will have no direct effect on users of Royal Mail's services.
- We do not have any concerns about the proposed change.
Next steps
5. The Amendment Regulations will now be laid before Parliament and will come into effect before the end of 2008.
Scottish Procurement Directorate
October 2008