Rules On Procurement

I am pleased to announce that from this month the Welsh Assembly Government will be discontinuing its practice that potential suppliers will not be able to be awarded contracts if the effect would be for the contract to take up 40% or more of their total business.   It is still important to ensure, for their own sake, that suppliers should not become over-reliant upon our business; but I have concluded that the present 40% rule does not properly address the situations of all suppliers and can in some cases restrict them unduly from the full range of contracts.

In order to provide a more flexible approach, and one which is consistent with latest best practice in public sector procurement, potential suppliers will be asked to assure themselves, and confirm to the Welsh Assembly Government, that they will not become over-reliant on our business if they were successful.   The level which would trigger this assurance will vary according to individual contracts, using a risk-based approach which will take into account the size of the contract and the nature of the work.

An announcement drawing attention to this change will be placed on “xchangewales”, the public sector procurement website and the Assembly’s website “winningourbusiness”.  The Welsh Assembly Government will also be writing to all ASPBs to notify them of the change.