Overview
The guidance documents are intended to provide technical guidance and help with interpretation and understanding of the Procurement Act 2023.
These documents should be read in conjunction with the Procurement Act 2023 and its associated regulations and are aimed at procurement practitioners and commercial policy leads in contracting authorities. They are intended to provide technical guidance and help with interpretation and understanding of the Procurement Act 2023.
Lots are a way to split a larger single procurement into smaller ‘chunks’ which are then procured under separate contracts with different suppliers (some suppliers may be successful in more than one lot and may be awarded more than one contract). There are potentially significant benefits of doing this, including risk reduction in the supply chain (for example, by having multiple suppliers for a similar service in different geographical areas or multiple sources for a particular good or service reducing the risk of supplier failure) and maintaining the long-term viability and diversity of the supply market through the award of a higher number of contracts.
Additionally, using lots might encourage small and medium-sized enterprises (SMEs) to bid; for example, they may find it easier to tender for or deliver smaller contracts, or smaller parts of larger contracts. This can support innovation, value for money, economic growth and potential expansion of the supplier base for that market.
Legal framework
- Section 18
Other guidance relevant to this area
- Covered procurement objectives
- Preliminary market engagement
- Valuation
- Competitive tendering procedures
- Assessing competitive tenders
- Assessment summaries
- Contract award notice and standstill
- Contract details notice