Overview
This regulation provides that Part 2 PCR 2015 does not apply to contracts awarded by contracting authorities to ‘controlled persons’.
‘Controlled persons’ are legal persons:
- whom the contracting authority exercises a decisive influence over (in terms of both strategic objectives and significant decision)
- who carry out 80% of activities in the performance of tasks entrusted to it by the contracting authority (or by other legal persons controlled by the contracting authority), and
- who do not have any direct private investment.
This regulation also applies in the following situations:
- where a contracting authority awards a contract to its controlling contracting authority (or another legal person controlled by the same controlling contracting authority)
- where a contracting authority awarding a contract has joint control (with at least one other contracting authority) over a controlled person who is being awarded the contract, and
- where a contract establishes a co-operation between two contracting authorities with the aim of achieving common objectives in the provision of public services. The co-operation between the contracting authorities must be solely in the public interest and the co-operating contracting authorities must perform less than 20% of the public services on the open market.