What are the differences between PSAA’s scheme for the audits of 2023/24 to 2027/28 and its scheme for 2018/19 to 2022/23?

Set out below are some of the key differences in the proposed approach for the procurement of audit services due to take place in 2022 compared to the 2017 procurement. In particular we have highlighted areas in which we are hopeful that our proposals will be viewed positively by suppliers.

Feedback on the proposed approach was sought from all eligible bodies and current and prospective suppliers during June 2021.

  1. We have expressed a clear preference to enter into new long term contracts at the earliest opportunity rather than extending current contracts.
  2. Tender evaluation will be assessed with quality/price weightings of 80:20 (previously 50:50).
  3. Tenderers are able to specify geographical areas which they are least able to cover. If in the event they are appointed to audits within those areas they will receive a premium rate.
  4. By May 2022, we will have established a DPS which takes minimal effort to enter and would enable future mini-procurements and help to mitigate against suppliers being “locked out” of the market for long periods.
  5. Future contract extensions will be subject to mutual agreement rather than at the sole discretion of PSAA.
  6. The procurement has been divided into 13 Lots to provide firms with greater choice and more flexibility to seek a share of the market to match their capacity and risk appetite, and to hopefully deliver contracts with an increased number of firms.
  7. We will provide as much clarity and certainty as possible in relation to responsibility for and handling of changes to regulatory requirements so that firms can bid with confidence.
  8. We will provide firms with up to date information about the latest position in relation to the audit of each individual body.
  9. We will apply a simplified formula in relation to inflation which would apply from year 2 of the contract onwards.
  10. We included a number of initiatives to enable new suppliers to enter the market, including enabling experienced suppliers to be assisted by new entrants.
  11. We produced and shared a risk allocation matrix with the market, designed to help ourselves and suppliers to consider carefully and systematically the key risks which may arise from and/or affect the contracts, so that there is greater clarity about the risks that do/do not need to be priced into bids.