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Passport Procurement - Storm in a Tea-Cup or a Sign of Things to Come?

on Tuesday, 17 April 2018.

Public procurement policy has once again been in the public agenda following the news that post-Brexit passports will be produced by a company based overseas.

The Home Office recently concluded its procurement process to appoint a supplier to manufacture the British Passport and announced its intention to award a £490 million contract to the French-Dutch firm, Gemalto. The unsuccessful bidder, De La Rue, a global company based in the UK, who is also the incumbent, tendered price was reportedly £120 million higher than Gemalto's bid. De La Rue signalled its intention to challenge the outcome of the tender process amid concerns that the Gemalto bid was abnormally low. In response the Home Office extended the standstill period by 10 days before it could enter into a contract with Gemalto. It remains to be seen whether De La Rue will follow up its complaint with legal proceedings to challenge the outcome of the procurement process.

Could this decision (and the apparent consternation of having the new passport manufactured overseas) have an impact on the future shape of procurement legislation in the UK? We will all have to watch this space…

However, the procurement rules are expected to remain as they are in the short to medium-term. The European Union (Withdrawal) Bill will simultaneously repeal the European Communities Act 1972, the legislation which underpins the current procurement regime, and will in effect transpose EU-derived procurement legislation into UK law on and after exit day. Additionally, Theresa May indicated in her Mansion House speech in March 2018 that the UK "may choose to commit some areas of our regulations like state aid and competition to remaining in step with the EU"

Beyond that, much will depend on the trade deals the UK is able to negotiate with Europe and further afield. It is possible that the government could seek to reserve certain contracts to UK based companies, however this approach could prove to be a stumbling block to establishing a trade deal with Europe and further afield.


For more information please contact Stephanie Rickard in our Procurement Law team on 0117 314 5675.

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