D4 Procurement of Works

Background

'Works' procurement concerns procurement for civil engineering or building works.

DFID does not undertake significant amounts of Works procurement and this is now most likely to occur with the refurbishment of an overseas office or where a new building has been commissioned.

Procurement of all 'Works' activity relating to the DFID state is overseen by Business Solution Department's SEPPS Team. Professional assistance is usually obtained by calling down the services of specialist works contractors from central government frameworks.

All contracts for services expected to cost more than £4,348,350 must be issued using contract processes set out in Her Majesty's Government's (HMG's) public procurement regulations derived from the European Union (EU) Procurement Directives. Work below this value will be subject to DFID's normal procurement rules, which includes appropriate use of competition.

Normal contracting authority levels will also apply unless otherwise agreed by Procurement Group (PrG).

All major construction and acquisition projects within Government are now potentially subject to the Gateway Review process. SEPPS can provide further advice on this requirement.

Compliance Tasks

The SEPPS Overseas Estates Support Team (OEST) must be notified immediately of any proposed works activity
Task assigned to: All Staff, Estate Management Officer
Professional procurement assistance must be obtained, either through PrG or another recognised body as identified by OEST
Task assigned to: All Staff, Estate Management Officer, Head of Department, Head of Overseas Office, Local Contract Officer
Where procurement is estimated to exceed £4,348,350 procurement must be undertaken in accordance with the ''Works'' Directives of the European Union (EU) Public Procurement regulations
Task assigned to: All Staff
SEPPS must be consulted early in the planning process to consider whether the construction project should be subjected to Gateway Review.
Task assigned to: All Staff

Risks of non-compliance

Damage to DFID's reputation for fair and open procurement
Challenge to DFID's procurement policy and procedures
Legal challenge to HMG through the High Court, or the European Court of Justice under the Remedies Directive, for breach of EU Public Procurement Directives
Financial loss
Fraud
Legal risk to DFID for acting incompatibly with the 1998 Human Rights Act (HRA).

Associated learning and skills

Mandatory for staff who issue contracts below the value of £25,000: 2 day procurement course

DFID departments, which need to issue contracts between £25,000 and £90,319 are required to appoint a Local Contract Officer (LCO). LCO's must undertake the following training and have acquired full accreditation from PrG before they can issue contracts:

2 day procurement course plus additional training tailored to individual development needs, e.g. Negotiation, EU Procurement Law
One week structured desk training and up to two weeks practical experience with PrG.

Last updated: 09 Aug 2012

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