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High-level considerations

-High-level considerations
-Market creation
-Predictable demand
-Competitive neutrality
-Innovation through procurement

High-level design issues to be considered include:

  • The requirements for ensuring adequate competition e.g. specification of outputs or inputs and contract length;
  • The scale and scope of contracts. The degree of aggregation and/or collaboration appropriate from an economic viewpoint;
  • The levels of in-house provision - consideration of the positive and negative effects;
  • Whether there is a need for suppliers to have access to key facilities; and
  • Identifying where collusion is more likely, so that it can be prevented.

These issues and further information on how they can be assessed are covered in: Assessing the Impact of Public Sector Procurement on Competition - OFT, 2004.

On the next pages, you will find specific areas that have proven both relevant and particular to guiding a market towards responses expected.

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