‘Unfair treatment' claim by contractors

Contract caterers believe they are being unfairly treated when bidding for local authority contracts, according to research carried out by the Department of the Environment (DoE).

The research, which is not due to be published until the New Year, found that some two-thirds believed they had grounds for complaint over their treatment during bidding rounds for contracts, most of which are for school meals.

Three-fifths said they found the tendering process itself unfair.

The findings were revealed by Richard Footitt, the DoE's head of compulsory competitive tendering enforcement, at a seminar of catering direct service organisation (DSO) managers last week in Birmingham, organised by the Association of Direct Labour Organisations (ADLO).

Mr Footitt warned that having looked at other areas of local authority work, the DoE was now examining the catering sector more closely to ensure there was no anti-competitive behaviour.

It was also looking at ways of strengthening punitive action to be taken against authorities acting unfairly, with closure of DSOs becoming a more likely outcome than at present. However, Mr Footitt declined to give any further details of the department's intentions.

He said complaints uncovered by the research included area contracts being too large, pre-tender questionnaires being too detailed and intrusive, contract specifications being over-rigorous and catering equipment needing too much investment.

He said that the DoE was keeping an open mind about all these areas, but it had noted that contracts were larger than in any other local authority sectors.

Contract documentation was far more detailed and pre-tender questionnaires were more elaborate than in other sectors.

"In all these areas we have no preconceived views, but we will increasingly be looking at the approach of the local authority to these issues," said Mr Footitt.

"They will have to demonstrate that in all ways the DSO has been treated in the same way as the contractor."