HC Deb 27 March 1996 vol 274 cc657-8W
Mr. Barron

To ask the Secretary of State for Health what guidance he has issued, and when, to NHS personnel on contract prepayments. [22741]

Mr. Horam

Relevant guidance was set out in the "National Health Service Trusts Finance Manual", part 3, chapter 9, issued in February 1992. This was followed up with a letter to finance directors in March 1994, FDL (94)24. Copies of the documents are available in the Library.

Mr. Barron

To ask the Secretary of State for Health what guidance he has issued, and when, to NHS personnel on the letting of contracts,(a) without tender and (b) non-competitively; and in what circumstances such procedures are permitted. [22740]

Mr. Horam

National health service contracting authorities are all aware of their obligations under the statutory rules relating to public procurement. Where a contract comes within scope of the relevant regulations, there are only limited circumstances where a negotiated procedure not involving competition is allowable.

In its guidance on the drawing up of standing financial instructions, the Department has made it clear that contracts of a more than minimal level should be based on competitive tender and any waiving of this requirement should be subject to board level approval based on overall value for money. The reasons for such decisions should be recorded for audit scrutiny.