Summary: Mr X complained the Council was at fault in the way it carried out a procurement process to manage a local community facility as it did not award the contract to his company. We have ended our investigation into the complaint because we cannot achieve the outcome Mr X is seeking to be awarded the contract and receive compensation for economic loss.

The complaint

1. Mr X complains about the way the Council has carried out a procurement process for a contract to manage a local community facility. Mr X’s company submitted a tender but was not awarded the contract which Mr X considers unfair. Mr X says the Council should award his company the contract and it has suffered economic loss as a result of not winning the contract.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service but must use public money carefully. We do not start or continue an investigation if we decide:
• we cannot achieve the outcome someone wants, or

• there is another body better placed to consider this complaint.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

3. It is our decision whether to start, and when to end an investigation into something the law allows us to investigate. (Local Government Act 1974, sections 24A(6) and 34B(8), as amended)

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How I considered this complaint

4. I considered evidence provided by Mr X and the Council as well as relevant law, policy and guidance. I spoke to Mr X about his complaint.
5. Mr X and the Council had an opportunity to comment on my draft decision. I considered any comments before making a final decision.

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What I found

6. The Council issued an Invitation to Tender (ITT) to manage a local community facility. The ITT explained the contract and how the Council would evaluate the tenders received to decide who to award the contract to. Mr X’s company was one of several companies who submitted a tender for the contract.
7. The Council awarded the contract to a company who had a higher evaluation score than Mr X’s company. Mr X raised complaints to the Council including concerns about the tender process and the evaluation scoring. Mr X considered his tender was a strong one and his company should be awarded the contract. Mr X considered the failure to secure the contract has impacted onto his company and caused economic loss.

My assessment

8. While I am aware of Mr X’s concerns about the tender process and evaluation carried out by the Council when awarding the contract, ultimately, we cannot achieve the outcome Mr X is seeking to award his company the contract. This is because we do not have the powers to do so. The possible route for Mr X to achieve this outcome is for him to consider taking legal action against the Council. The courts are better placed to consider Mr X’s concerns and establish if there was anything unlawful in the Council's award of the contract.
9. Mr X also considers the failure to award the contract has impacted onto his company financially and so should receive some compensation for this. But it is not an outcome we can achieve for Mr X as we do not look at award compensation for economic loss. Again, the courts are better placed to consider whether there was anything unlawful in the Council’s decision to award the contract to another company and if so, to consider Mr X’s concerns about the financial impact onto his company.

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Decision

10. I am ending my investigation into Mr X’s complaint because we cannot achieve the outcome Mr X is seeking.

Investigator’s decision on behalf of the Ombudsman

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Investigator's decision on behalf of the Ombudsman