The Public Service Vehicles (Registration of Local Services in Enhanced Partnership Areas) (England) Regulations 2019

Slot allocation contracts: exceptions to competitive procurement requirements where the authority’s forecast expenditure does not exceed £600,000

15.—(1) This regulation applies where a tender for a slot allocation contract is being held at a time when the authority’s forecast expenditure in the current financial year does not exceed £600,000.

(2) Subject to paragraphs (3), (4) and (5), where this regulation applies there are excluded from the requirements under regulation 14(3)(b) and (c) the following slot allocation contracts—

(a) any contract which will remain in force for less than 12 months and under which the aggregate amount of service subsidies does not exceed £29,999; and

(b) any contract which will remain in force for 12 months or more and under which—

(i) the aggregate amount of service subsidies payable during the period of 12 months beginning on the date that the contract comes into force does not exceed £29,999, and

(ii) the aggregate amount of service subsidies payable during any subsequent relevant year (or part of a year) it is in force cannot exceed £29,999.

(3) This regulation does not exclude from the requirements under regulation 14(3)(b) and (c) a slot allocation contract the effect of which is to modify a contract which is within the scope of paragraph (1) so that—

(a) where the modified agreement contract will remain in force for less than 12 months after the date on which the modification takes effect, the aggregate amount of the service subsidies payable in the 12 month period ending on the date that agreement ceases to be in force is increased to £30,000 or more; or

(b) where the modified agreement contract will remain in force for 12 months or more after the date on which the modification takes effect—

(i) the aggregate amount of the service subsidies payable during the period of 12 months after the date on which the modification takes effect is increased to £30,000 or more, and

(ii) the aggregate amount of service subsidies payable during any subsequent relevant year (or part of a year) it remains in force is increased to £30,000 or more.

(4) This regulation does not exclude from the requirements under regulation 14(3)(b) and (c) a slot allocation contract providing for an increase in the amount of service subsidies payable to be agreed between the parties or to be calculated by any method other than those mentioned in paragraph (5)(b)(ii) of this regulation.

(5) For the purposes of this regulation—

(a) a “relevant year” is a period of 12 months commencing on an anniversary of the date on which—

(i) where paragraph (2)(b)(ii) applies, the contract came into force;

(ii) where paragraph (3)(b)(ii) applies, the modification took effect;

(b) the aggregate amount of service subsidies payable in any period under a slot allocation contract is to—

(i) include any specific amount the payment of which is dependent on a contingency; and

(ii) exclude any amount payable at any time after the first period of 12 months during which the contract is in force and which becomes payable—

(aa) as a direct consequence of an increase in an index published by the Government of movements in prices or costs; or

(bb) pursuant to any provision of the contract whereby an increase in the amount of service subsidies payable is not to exceed a figure calculated by reference to such an index.