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Commission sends formal request to UK concerning Glasgow housing awards

Wednesday November 11th, 2009

The European Commission has decided to send a further formal request to the UK concerning the revision of contracts for the provision of housing services awarded by Glasgow Housing Association (GHA) without competitive tender.

GHA has been found to have awarded a number of service contracts to various housing organisations without adhering to a tendering process. The contracts were awarded for the management of GHA’s housing stock – otherwise known as Remodelled Management Arrangements (RMAs).

The Commission considers that the RMAs constitute public service contracts and as such should have been awarded on the basis of a transparent tendering process in accordance with the requirements in Public Procurement Directive 2004/18/EC. In this case, the Commission believes that the UK has failed to fulfil its obligations under the Directive.

The formal request takes the form of a Reasoned Opinion, which is the second stage of the infringement procedure as laid down in Article 226 of the EC Treaty. The Commission may decide to refer the matter to the European Court of Justice.

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