Risks when awarding and placing contracts

Competitions

Risks

  • Applicants that do not meet the selection criteria are not advised promptly
  • Open to challenge if applicant believes they did meet the selection criteria
  • Tender process could be delayed while complaint is dealt with

Solutions

  • Advise applicants that will not be invited to submit tenders promptly

Complaint received after short listing stage completed

Risks

  • Delay in issuing the Invitation to Tender
  • The closing date for return of submissions may have to be delayed
  • The tender process may have to be stopped

Solutions

  • De-brief the applicant promptly
  • Where there is a delay that affects the tenderers, re-schedule the closing date and time, advising all participants accordingly
  • If there are grounds for the complaint it may be necessary to stop and re-run the competition

All bidders not told of recommended award decision at the same time

Risks

  • Open to challenge of unfair treatment and failure to comply with the legislation
  • Unsuccessful bidders not afforded opportunity to seek additional de-briefing before contract award is concluded

Solutions

  • Advise all participants of the proposed award decision in writing at the same time and of the proposed earliest date on which you intend concluding the contract in compliance with the mandatory standstill period requirements.

Notification of award communication does not state that it is proposed to award the contract to ‘Firm X’ on or after ‘Date’ using suitable wording

Risks

  • The wording of the communication may create a legally binding contract under law

Solutions

  • Ensure the wording used in the communication gives an indication of the proposed contract award in the event that no challenges are received before a stated date (at least 10 days in the future)

Notification of award communication does not give the recipient all the information required in a standstill notice

Risks

  • Many of the bidders will seek additional de-briefing to find out why they are not the proposed winner of the competition
  • Challenges may be valid even if brought outside the 10 day standstill period

Solutions

  • Ensure your award letter notification contains the following information;
  •    - the award criteria
  •    - the tenderer’s score
  •    - the winning tenderer’s score
  •    - the name of the winning tenderer
  •    - the reasons for the decision including the characteristics and relative advantages of the winning tenderer

Standstill period not observed

Risks

  • Institution may be open to legal challenge

Solutions

Formal complaint received during standstill period

Risks

  • Conclusion of the contract must be delayed until issue(s) resolved

Solutions

  • Seek to defend or resolve the complaint, keeping detailed records of discussions and actions
  • If grounds of complaint cannot be defended, stop the award process and seek legal advice