Reg. 46 (PCR 2015)

Division of contracts into lots

In: Define > Sourcing strategy

Overview

This regulation allows contracting authorities to award a contract in the form of separate lots; provided that the contract notice indicates whether tenders may be submitted for one, for several, or for all of the lots.

When designing the procurement, a contracting authority may decide to limit the number of lots that may be awarded to one bidder, provided that the maximum number of lots per bidder is stated in the contract notice. In such circumstances, the procurement documents must explain how lots will be awarded where the application of the award criteria would result in one bidder being awarded more lots than the maximum number.

Where the same bidder is awarded multiple lots, contracting authorities may award contracts combining some or all of the lots provided that the possibility of doing so has been set out in the procurement documents.

To the extent that a contracting authority decides not to award a contract in the form of several lots, it must explain the reasons for this decision in either the procurement documents or in the report required as per regulation 84 PCR 2015 (reporting and documentation requirements).

Objective at this commercial stage

Consideration should be given to the appropriateness of dividing the contract into several lots and if so, whether bidders should be restricted to tender for, or be awarded, a maximum number of lots.

Key considerations at this commercial stage

Contracting authorities should:

  • consider the effect on potential bidders when deciding whether a lotting approach is appropriate
  • ensure that requirements relating to the maximum number of lots that may be tendered or awarded to a single bidder are designed fairly and proportionately, taking into account potential effects on bidders and market behaviour
  • ensure that the decision to not divide a contract into lots is recorded in either the procurement documents or the report required as per regulation 84 PCR 2015 (reporting and documentation requirements).

See also in the Procurement Act 2023:

  • Section 18: Duty to consider lots
  • Section 20: Competitive tendering procedures
  • Section 23: Award criteria

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements
Read the regulation

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