Reg. 16 (PCR 2015)

Mixed procurement involving defence or security aspects

In: Define > Sourcing strategy

Overview

This regulation applies to mixed public contracts, which have procurement covered by Part 2 PCR 2015 and procurement covered by regulation 3(2) PCR 2015 (essential security interests) or, the Defence and Security Public Contracts Regulations 2011 (DSPCR). It provides that:

Where the different parts of that contract can be objectively separated, contracting authorities may choose to award either a single contract, or separate contracts for the separate parts.

Where part of the procurement is covered by regulation 3(2) PCR 2015 (essential security interests), a single contract may be awarded without applying Part 2 PCR 2015 provided that the award of a single contract is justified by objective reasons.

Where part of the procurement is covered by the DSPCR, a single contract may be awarded in accordance with those regulations (rather than Part 2 PCR 2015) provided that the award of a single contract is justified by objective reasons.

The decision to award a single contract must not be made with the intention of purposely excluding the contract from either Part 2 PCR 2015 or the DSPCR.

Where separate contracts are awarded, the procurement rules for each part of the contract will be dependent on the subject-matter of the relevant part.

Where the parts of the mixed public contract are not objectively separable, the contract may be awarded without applying Part 2 PCR 2015, where it includes elements covered by regulation 3(2) PCR 2015 (essential security interests). Otherwise, where the contract includes elements covered by the DSPCR, the contract may be awarded in accordance with those regulations.

Objective at this commercial stage

Part 2 PCR and / or the DSPCR may be applicable to the procurement of individual parts of a mixed public contract, where the different parts are objectively separable and procured as separate contracts.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure the subject-matter and circumstances of any public contract are reviewed and consideration is given as to whether this regulation (i.e. regulation 16) will apply to the contract award
  • ensure the subject-matter of the mixed public contract is reviewed and consideration is given as to whether it would be appropriate to either award the different parts of the mixed contract as separate contracts, or to award the mixed public contract as a single contract.

See also in the Procurement Act 2023:

  • Section 10: Mixed procurement: special regime contracts

Additional support and guidance

Make sure you:

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