L4M4 practice question 16 of 25

When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?

Full set: 293 questions
Answer options
A: no- buyers can approach known contractors
B: no- buyers in the public sector do not source strategic items
C: yes- the public sector should advertise the opportunity as a call for competition Correct answer
D: yes- the public sector should advertise through the Freedom of Information Act
Correct Answer:
C. yes- the public sector should advertise the opportunity as a call for competition
Explanation

Public sector procurement is governed by principles of transparency, non-discrimination, equal treatment, and open competition to ensure value for money for the taxpayer. For high-value and strategically important contracts (typically those above a certain financial threshold), regulations mandate that the opportunity must be publicly advertised. This "call for competition" ensures that all interested and capable suppliers have a fair chance to bid, preventing favouritism and promoting a competitive market. This process is fundamental to public accountability and achieving the best possible commercial outcome.

Why Incorrect

A. no- buyers can approach known contractors: This describes a non-competitive or single-source approach, which is only permissible in very specific, legally defined circumstances and not the default for strategic items.
B. no- buyers in the public sector do not source strategic items: This is incorrect. Public sector bodies procure highly strategic items, such as major infrastructure, defence systems, and critical IT services.
D. yes- the public sector should advertise through the Freedom of Information Act: The Freedom of Information Act is legislation for accessing existing public information; it is not a platform for advertising procurement opportunities.

References

The Cabinet Office. (2015). The Public Contracts Regulations 2015 - Guidance on the new regime. London: Crown Commercial Service. Part 2, Section 25-32 outlines the rules on publication of notices and calls for competition.

Arrowsmith, S. (2014). The Law of Public and Utilities Procurement: Regulation in the EU and UK. 3rd ed. Sweet & Maxwell. Chapter 7 discusses advertising requirements and calls for competition as a cornerstone of the EU/UK procurement regime.

Telgen, J., & de Boer, L. (2004). 'Public Procurement: A Survey of the Year's Research'. In The International Handbook of Public Procurement. CRC Press. pp. 3-18. This work discusses the legal and economic rationale for competitive tendering in the public sector.

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