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BSF Group Ltd v (1) Secretary of State for Defence (2) Purple Foodservices

The ‘negotiated procedure’ under the Public Supply Contracts Regulations 1995 contemplated that, subject to maintaining transparency and the even-handed treatment of bidders, and subject also to the terms of the particular tender invitation, the contracting authority would be entitled, but not bound, to negotiate with the bidder.

7 July 2006

The adoption of the procedure did not confer on the bidder any right to put forward reviewed or improved terms once his tender had been submitted. The applicant supplier (B) applied for an interim injunction to restrain the first respondent secretary of state from entering into a new contract with the second respondent (P), or any party other than B. B had contracted with the secretary of state for the supply of food and bottled water to HM Armed Forces both in the UK and abroad. That contract was due to expire and the secretary of state initiated the process of awarding a new contract for those supplies to take effect on expiry of the existing contract. The contract was advertised and the negotiated procedure was used, in accordance with the Public Supply Contracts Regulations 1995. Three tenderers were selected by the secretary of state, which included B and P, but the contract was ultimately awarded to P. B submitted that the secretary of state failed to act with transparency by ...

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