The Public Procurement Regulations 2006 (the "Regulations") provide that public authorities must follow the procedure laid down in the Regulations when entering certain supply and service contracts, including contracts of insurance. There is an exemption to compliance with the Regulations known as the Teckal exemption. The exemption is available where public authorities exercise control over the contracting entity and where no private capital or interests are involved. The Supreme Court has provided clarification on the requirement for control, stating that it need not be exercised by the public authorities individually - it is sufficient if, acting collectively, they exercise control over the contracting entity.
Lords Hope, Rodger, Brown, Walker, Dyson, J.S.C.
9 February 2011