Beyond establishing any new authority, the LGR process will demand a substantial investment of time and resources to ensure the smooth transfer of day-to-day operations and minimise any impact on service delivery. 

In this Passle series 'LGR practicalities', we break down the practical realities of LGR and how to approach dealing with it. We'll cover issues such as contracts, companies, property and ongoing litigation.

In this Passle, we focus on how to manage procurement processes when LGR is taking place. 

Life continues during the LGR process. Contracts will naturally come to an end – perhaps with an option to extend or not. Exercising any options or seeking to vary a contract to allow further extension should be taken in consultation with the continuing or new authority, given the duty to effectively prepare for LGR and may be mandated if there is a section 24 direction in place. It can be tempting to extend all contracts beyond LGR, but it is important to consider resourcing and capacity both pre- and post-LGR to determine the best time to reprocure.

If a service is being re-procured during LGR, then authorities should consider whether they are in a position to spell out what will happen. If it is clear that there will be, for example, two new authorities, it may be preferable to design the procurement so that two contracts will be awarded and/or that the procurement is lotted to reflect the LGR outcome. If there are known variants or alternative pricing models, then ensure these are built in.

Authorities should give the market the best information that they can and keep the market updated throughout the process. This should include providing for the change in contracting authority mid-process if vesting day occurs then. Refer to this in all procurement documents and the notices issued.

The transfer of functions is effected by statutory transfer, but as this LGR Practicalities Passle series demonstrates, there is a lot of due diligence and thought needed about how services will be delivered post vesting day to be able to implement LGR successfully. It can be a daunting task and one that has to take place in a short time period to ensure effective transfer. Our team at Anthony Collins is well-versed in the issues arising from LGR and can assist authorities (whether predecessor, continuing or new) with the process, including due diligence and implementation.

For more information on managing procurement processes, please get in touch.