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BINDMANS LLP

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Contracted with

the Legal Aid

Agency

Bindmans LLP

236 Gray’s Inn Road London WC1X 8HB

DX 37904 King’s Cross Telephone 020 7833 4433 Fax 020 7837 9792

www.bindmans.com info@bindmans.com

Bindmans LLP is a limited liability partnership registered in England and Wales under number OC335189. Its registered office is as

set out above. The term partner means either a member of the LLP or a salaried partner.

SENIOR CONSULTANTS

Sir Geoffrey Bindman QC*

Stephen Grosz QC*

Saimo Chahal QC*

Lynn Knowles

PARTNERS

Tayab Ali

Tamsin Allen

Liz Barratt

Jules Carey

Jon Crocker

Yagmur Ekici

Kate Goold

John Halford

Charlotte HaworthHird

Alison Leivesley

Siobhan Kelly

Alla Murphy

Olivia Piercy

Jamie Potter

Paul Ridge

Amrit Rana

Amy Rowe

Alison Stanley

Anna Thwaites

Katie Wheatley

ASSOCIATES

Salima Budhani

Emma Cohen

Maud Davis

Neil Emery

Ashley-Jayne Fleming

Roberta Haslam

Laura Hobey-Hamsher

Catherine Jackson

Pauline Lam

Jude Lanchin

Alison Mackintosh

Karen May

Jessica Skinns

Sheetul Sowdagur

SOLICITORS

Karan Ahluwalia

Sumaiyah Anwar

Clara Barry Born

Joanna Bennettcec

Jessie Brennan

Elizabeth Cleaver

Samuel Cronin

Alice Davis

Rachael Davis

Emily-Jade Defriend

Abigail Evans

Christian Hansen

Rachel Harger

Ella Jefferson

Robert Maddox

Hannah Marshall

Carla Mirallas

Joseph Morgan

Oliver Oldman

Patrick Ormerod

Shelly Pastakia

Jen Parker

Caroline Robinson

Megan Rothman

Basmah Sahib

Emma Varley

William Whitaker

Rosaleen Wyllie

Louisa Zangina

Daniel Zona

LAWYER

Melissa Arnold

CONSULTANTS

Tony Taylor

*Honorary

Direct dial

Direct fax:

Our Ref: Direct email: ;

Date: 16 March 2021 PA:

Government Legal Department

By email only:

Dear Madam/Sir

LETTER BEFORE ACTION UNDER THE PRE-ACTION PROTOCOL FOR

JUDICIAL REVIEW

RE: R (Good Law Project Limited) v Secretary of State for Health and

Social Care

Re: Unpublished contracts

Proposed Claimants

1. Good Law Project Limited

The details of the Claimants’ legal advisers dealing with the claim are

as follows:

2.

Bindmans LLP

236 Gray’s Inn Rd, Holborn, London WC1X 8HB

Reference:

Proposed Defendants

3. The Secretary of State for Health and Social Care

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Details of the Decisions being Challenged

4. The Claimant challenges the failure of the Secretary of State for

Health and Social Care to comply with his duty under regulation 108

of the Public Contracts Regulations 2015 (“the Regulations”) to

publish contract award notices on Contracts Finder in respect of

contracts for goods and services referable to the COVID-19 pandemic

into which he has entered, within a reasonable time A reasonable

time is defined as 90 days after the contract award date by the

Crown Commercial Service’s ‘Guidance on the new transparency

requirements for publishing on Contracts Finder’ (“the Guidance”).

5. The Defendant successfully resisted the Claimant’s application to

amend its claim in CO/3610/2020 to include a breach of regulation

108. It is accordingly necessary to advance the allegation by way of

separate proceedings.

6. The Claimant relies in part on the evidence served by the Defendant

in CO/3610/2020, and on the correspondence sent on behalf of the

Defendant in relation to those proceedings. However, where

possible, it relies on the Defendant’s position as recorded in the

judgment of Chamberlain J, which together with the references to

them in the hearing, placed such material in the public domain:

[2021] EWHC 346 (Admin) (“the Judgment”).

7. In particular, the Judgment records at §69 that the Defendant’s

witness evidence of 29 January 2021 (Mr Webb’s third statement)

set out that: “A Contracts Finder Notice has now been published for

at least 686 of the 705 contracts awarded by the Defendant on or

before 7 October 2020 for which a CF Notice would be required. 292

(41%) were published within 90 days of the contract award date.”

Even assuming that these figures are correct, they evidence a

significant breach of the Defendant’s regulation 108 duties in over

50% of contracts to which regulation 108 applies.

8. The Claimant also challenges the continuing policy and practice of

the Defendant of redacting vital information from contracts which

are published on Contracts Finder, pursuant to the Defendant’s

obligations under the Transparency Policy and Principles (see §§22-

23 of the Judgment).

The Relevant Legal Framework

9. Chapter 7 of the Regulations, in Part 4, applies to any contract

whose value exceeds the thresholds in Part 2 (subject to exceptions

not relevant here): regulation 105(1). It imposes additional

obligations that do not derive from EU law, together with the

objective of transparency.

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10. Regulation 108 applies when a contracting authority sends a

contract award notice for publication (under regulation 50) or

awards a contract based on a framework agreement: regulation

108(1). In those circumstances, the authority is obliged to publish

on Contracts Finder some limited information about the contract w

set out in regulation 108(3):

“(a) the name of the contractor; (b) the date on which the

contract was entered into; (c) the value of the contract”:

regulation 108(2). That obligation is subject to a power to

withhold information where its release “(a) would impede law

enforcement or would otherwise be contrary to the public

interest, (b) would prejudice the legitimate commercial

interests of a particular economic operator, whether public

or private, or (c) might prejudice fair competition between

economic operators.”

11. Regulation 108(4) and (6) provide:

“(4) Contracting authorities shall comply with paragraph (2)

within a reasonable time.

...

(6) In complying with this regulation, contracting authorities

shall have regard to any guidance issued by the Minister for

the Cabinet Office on—

(a) the form and manner in which the information is to be

published on Contracts Finder; and

(b) what is a reasonable time... for the purposes of paragraph

(4).”

12. The Guidance provides in respect of publishing information on

Contracts Finder as follows at §10, in relation to the duty imposed

by regulation 108:

“The information must be published in a reasonable time and

it is recommended that the information be published no later

than 90 calendar days after the contract award date.”

13. The regulation 108 duty furthers the important public interest aim

of transparency. As the Judgment held at §140, transparency in

procurement decision-making serves:

“a vital public function and that function was no less

important during a pandemic. The Secretary of State spent

vast quantities of public money on pandemic-related

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procurements during 2020. The public were entitled see who

this money was going to, what it was being spent on and how

the relevant contracts were awarded. This was important not

only so that competitors of those awarded contracts could

understand whether the obligations owed to them under the

PCR 2015 had been breached, but also so that oversight bodies

such as the NAO, as well as Parliament and the public, could

scrutinise and ask questions about this expenditure. By

answering such questions, the Government ‘builds public trust

and public confidence in public services’: see §1 of the

Transparency Principles. One unfortunate consequence of

non-compliance with the transparency obligations (both for

the public and for the Government) is that people can start

to harbour suspicions of improper conduct, which may turn

out to be unfounded.”

14. The meaning of a “reasonable time” in regulation 108(4) has been

set by the Guidance, which is the published statement of

Government policy applying in all circumstances. Failure to follow

published policy, absent good reason for departing from it, is an

established ground for judicial review: R (Lumba) v Secretary of

State for the Home Department [2011] UKSC 12; [2012] 1 AC 245.

15. It is in principle open to the Defendant, or the Government, to

depart from its own policy. However, if it is to do so, there must be

a conscious, reasoned, contemporaneous decision to that effect,

and not simply an ex post facto explanation for a failure to comply.

A view must be formed that the policy is to be departed from: see,

e.g., the Judgment at §§133-134. We note that the Defendant has

not appealed this conclusion of law and fact.

16. In relation to the redaction of contracts, as recorded in §23 of the

Judgment, the Government has a policy commitment to the

publication of contracts “in full”, including the contract

specification and associated schedules, such as the contractor’s bid.

§7.2 of the Transparency Policy provides that “[a]ll information that

constitutes a contract .. should be published unless an exemption

under the Freedom of Information Act applies and redaction can be

justified”. The application of exemptions requires a case-by-case

approach and does not permit a blanket approach to redactions.

17. Finally, and for the avoidance of doubt, the Judgment set out in

detail why the Claimant had standing to advance a claim concerning

a breach of the transparency obligations set out in the Regulations,

and that standing was not restricted to an economic operator. Given

the clear and authoritative reasoning of the Judgment, which the

Defendant has not sought to appeal, we assume that the Defendant

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accepts the Claimant’s standing to advance the present proposed

claim.

The Evidence of Breach

18. We do not repeat the various iterations, and developments, in the

evidence of the Defendant as recorded in the Judgment as to his

progress in belated compliance with regulation 108. The Judgment

speaks for itself in this respect. It is sufficient for present purposes

to focus on the most up-to-date position provided by the Defendant,

so far as the Claimant understands it.

19. As noted above, the Judgment records at §69 that the Defendant’s

witness evidence of 29 January 2021 (Mr Webb’s third statement)

set out that: “A Contracts Finder Notice has now been published for

at least 686 of the 705 contracts awarded by the Defendant on or

before 7 October 2020 for which a CF Notice would be required. 292

(41%) were published within 90 days of the contract award date.”

20. However, in a letter of 1 March 2021, GLD wrote to the Claimant in

relation to CO/3610/2020 to correct various figures given in the

evidence quoted at §69 of the Judgment. In relation to the

regulation 108 figures quoted above, the figure “292” was amended

to “274”. We calculate this percentage to be 39%.

21. GLD also confirmed that this figure included contracts which had

been awarded but cancelled, but did not include contracts awarded

by executive agencies for which the Defendant is responsible in law

(such as Public Health England and the Medicines and Healthcare

products Regulatory Agency).

22. It is therefore clear that as at 7 October 2020, five months ago, the

COVID-19 contracts awarded by the Defendant to which regulation

108 applied had been published in breach of the Defendant’s legal

obligation in well over 50% of cases. This is a failure to comply with

the law on a significant scale. Further, the Claimant is aware from

notices recently published on Contracts Finder, in relation to

contracts awarded many months ago, that the Defendant continues

to act in breach of his regulation 108 obligations.

23. Contrary to the Transparency Policy, the Defendant has continued

to publish contracts in heavily redacted form, which prevent

meaningful scrutiny of critical matters such as what items were

actually purchased and the prices of those items. By way of recent

example:

(1) On 26 February 2021, the Defendant published a contract with

Winner Medical Co Ltd which, it would appear, had been

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concluded on 25 May 2020. The contract was for sterile

surgical gowns at a total cost of $117m. Amongst other things,

the detailed product specification, the quantities to be

supplied and the unit prices were all redacted.

(2) On 3 March 2021, the Defendant published two contracts with

Sino Greatwall Healthcare Co Ltd which, it would appear, had

been concluded on 1 April 2020. One of the contracts was for

gowns at a total price of $34.25m. Amongst other things, the

types of gown to be supplied, the product specifications, the

quantities to be supplied and the unit prices were all redacted.

The other contract, which bears a date of 22 March 2020, was

also heavily redacted to the extent that no information

whatsoever is visible regarding what was purchased and the

unit prices and total price which was paid.

(3) Also on 3 March 2021, the Defendant published a contract with

Saiger LLC which, it would appear, had been concluded on 4

June 2020. The contract was for gowns at a total price of

$83.334m. Amongst other things, the individual item

descriptions/specifications, the quantities of each item to be

supplied and their unit prices were all redacted.

24. In §35 of his first witness statement in the proceedings, Mr Webb

stated that “[i]n order to expedite publication of COVID-19

contracts, it was therefore decided that no line-level information

would generally be released”. Mr Webb did not indicate when this

decision had been taken or by whom.

25. There is no legitimate justification for the blanket redaction of

critical information from valuable public contracts, in a manner

which frustrates the objectives of the Transparency Policy. In

particular:

(1) The Defendant continues routinely to redact information

which cannot possibly be sufficiently commercially sensitive

to justify that course, not least as many of the relevant

contracts are being published long after they were concluded.

The Defendant has contended elsewhere that the market for

PPE was in a unique state of turmoil between March and June

2020. What was bought, from whom and for what price during

that period cannot have continued commercial sensitivity such

as to justify concealing it from scrutiny.

(2) The decision referred to by Mr Webb cannot lawfully support

failure to comply with the Transparency Policy. The blanket

redaction of critical specification and pricing information