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ACE has secured a commitment from Transport for London (TfL) that reverse auctions will not be used in the re-letting of their engineering and project management framework. Smaller suppliers also look set to benefit from increased opportunities to bid for work, both through sub-contracting to larger suppliers and by contracting directly with TfL as part of a consortium.
In a meeting with ACE earlier this month, TfL's procurement team also gave a commitment to base their contractual terms on the NEC3 Professional Services Contract, and to encourage their suppliers to do the same when sub-contracting. TfL will also provide a single point of contact to provide skills development support to suppliers. However, ACE reiterated its ongoing concerns over TfL’s intention to maintain unlimited, uncapped liability at the framework level - although caps are likely to be introduced at the project level.
ACE chief executive Nelson Ogunshakin declared himself pleased with the commitment on reverse auctions and said that the move had come as the result of a series of talks with the transport body. “It is great to be able to say that ACE has made some headway on an issue that really matters to our members and we are hoping it can pave the way for similar agreements in the future. As much as I am loathe to temper the renewed optimism with a note of caution, however, the priority must be for this dialogue to continue so that further progress can be made. This is a real step, but it is only that; a step. ACE will carry on working to ensure it is the first of many.”
The talks, a result of long-term influencing by ACE, have come as a boost to ACE members who have also raised concerns that TfL may introduce an element of fitness for purpose into their contractual terms. ACE has consistently argued against the use of reverse auctions for ‘non-trivial’ procurement and believes that the commitment given by TfL provides a welcome reassurance that it has taken those concerns on board and that ACE's lobbying and influencing activities are bearing some fruit.
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