Blue passports are the gift that keeps giving
David allen green @ Davidallengreen
1. At last, this is the Twitter moment I have waited years for.
I get to explain public procurement law to bemused Russian pornbots.
This thread is about the law behind the blue passports thing.
(Disclosure: I used to be a central government public procurement lawyer.)
2. The law of public procurement is a key part of the Single Market.
With competition law and State aid law, it complements the four freedoms, and aims to force markets to be competitive.
3. But is not just EU law - there is also a WTO public procurement regime:
t.co/lXdvBDxuj9
So, generally speaking, public procurement law is part of the "WTO rules" which Brexiteers are so fond of saying should apply.
4. Public procurement law aims at non-discrimination.
Procurement decisions should be made on a procurement basis, without favouring domestic firms or shutting out foreign firms.
5. For simple contracts (eg goods), this means procurements should be on a lowest price basis.
For more complex contracts, the tender should be on a "most economically advantageous tender".
That has the acronym "MEAT".
Ho ho.
7. In other words: had De La Rue put in a more economically advantageous tender then they would have won the tender.
8. EU public procurement law is part of the Acquis which the UK has accepted during the transition period.
And, with State aid and competition law, it would be central to an UK-EU trade deal.
And it is part of WTO law anyway.
9. In practice, there are many things wrong with public procurement law. The proceses can be expensive and cumbersome, and it favours firms like Capita and Group4 that can afford to do bid after bid.
10. But in principle, there can be no serious complaint that tenders should be awarded on a procurement MEAT basis.
The alternative would be state authorities paying more for services/goods because of non-commercial factors.
11. And there are always questions about working out the correct criteria for most economically advantageous procurement exercises.
But once worked out that would be the basis of the award decision.
And that is how it should be.
/ends
Short version: under wto rules, British firms wouldn't get priority. They would have to compete with firms around the world. Instead of a French firm, we'd be up against Indian or Mexican firms for example.
What could possibly go wrong with all this?!
Jesus wept. A