Exclusive: Claims contained in Turner & Townsend legal challenge to the government’s massive public sector consultants framework

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Turner & Townsend has accused rival firms of using “price manipulation” to win places on the government’s £750m public sector consultants’ framework.

Turner & Townsend (T&T) has lodged a legal challenge in the High Court against the award of the troubled four-year Project Management and Full Design Team Services framework by publicly-owned procurement body UK SBS.

T&T was among a number of major firms to lose out on places on the UK lots of the framework, which was provisionally awarded to more than a dozen firms in June.

Neither UK SBS nor Crown Commercial Service are considering re-running this procurement

Cabinet office spokesperson

In the court papers, seen by ΢Ȧ, T&T demands “unlimited” damages and costs, and calls for the framework award either to be thrown out, or T&T awarded places on the UK lots, or for UK SBS to “reconsider its decision on a lawful basis”.

The consultant claims “many of the winning bidders” undertook price and “scoring manipulation” in order to secure higher marks.

T&T further claims UK SBS failed to recognise and investigate the price and scoring manipulation, and failed to investigate “abnormally low” pricing.

T&T claims some of its rivals manipulated UK SBS’ system for judging pricing - which was based solely on prices submitted for consultancy services in the South-east.

T&T claims “many of the winning bidders” provided “very low prices for the South-east” and “very high upwards adjustments to those prices for regional work”. T&T said this was despite the fact “regional work ought in general give rise to lower costs than work in the South-east”. T&T said: “It would then be possible for a bidder to choose not to perform any work in the South-east region for the very low prices bid for that region”.

Pricing made up 30% of the overall mark, with quality criteria making up the remaining 70%.

T&T’s evidence against bidders it suspects of price and scoring manipulation was contained in a confidential annex to the court papers not seen by ΢Ȧ.

Consultant Capita, Jacobs, Mace, Pick Everard and Mott MacDonald were among the big winners, landing spots on all four lots. According to scorecards for the UK lots seen by ΢Ȧ in June, Mace won all four lots on pricing.

΢Ȧ is unaware of which firm or firms are the subject of T&T’s allegations.

A Cabinet Office spokesperson said: “Neither UK SBS nor the Crown Commercial Service are considering re-running this procurement.

“We are committed to awarding the Project Management and Full Design Team Services agreement once we have completed the procurement process.”

T&T, UK SBS and the winning parties declined to comment.