Highways Agency

Introduction

The purpose of this paper is to report the findings of the consultation earlier this year with the Research & Development and Technical Consultancy industry and to set out what we plan to do next.

The consultation proposed increasing the use of wider ranging and higher value framework contracts as a contractual means of facilitating the delivery of best value within a non-contractual community environment which supports the operation of the framework contracts.

The consultation paper was developed in association with representatives of the industry. The consultation period ran from the 4th December 2003 to the 30th January 2004. The paper appeared on the Highways Agency's website and the consultation was supported by a press notice. We also consulted with Highways Agency and Department for Transport colleagues.

Consultees were asked to provide their general comments on the proposals and to give specific comments on twelve questions in three specific areas. A summary of the responses to each question can be found the Annex to this letter.

We received a response from 70% of the consultees which we consider to be a good result. The consultation demonstrated that our proposals were supported, and in many cases welcomed, by the industry. The exercise did not reveal any major problems that would cause us to re-think our plans.

A number of concerns were identified :

• Given the differences between R&D/Technical Consultancy work, should they be lumped together ?
• The possible domination by a few prime suppliers
• The potential loss of specialists and small suppliers to the Agency
• Commercial confidentiality and the handling of Intellectual Property Rights
• The mechanics of the Community
• Remuneration arrangements
• The availability of a realistic work programme

We will continue to refine our proposals to ensure that these concerns are managed. The latest thinking on most can be found in the commentary in the Annex.