DD2787 Contracts and Funding Code – 2026 Revision

1.1.    The Contracts and Funding Code (the Code) is one of the GLA’s key governance documents. It sets out the rules and processes for procurement; and entering into contracts and other formal arrangements, including grant funding.

1.2.    It was last approved in April 2025, under cover of Director Decision (DD) 2744. It has since been agreed, with Transport for London (TfL) Procurement and Commercial (who provide a shared service to the GLA), that the GLA’s arrangements should mirror those used within TfL. Specifically, it is proposed that for procurement under £25,000, there is a minimum requirement for at least one request for quotation (RfQ) (or to use a framework), rather than three (as has previously been the case for the GLA for procurements between £10,000 and £25,000). 

1.3.    Allowing the GLA to procure low-value goods and services via one RfQ will potentially reduce the number of low-value single-source requests. This will better allow TfL colleagues to focus on other commercial support. It is also often the case that GLA officers cannot seek the required three quotes (typically because they are not aware of enough potential suppliers from the market). This means they go on to seek a Direct Award (i.e. a ‘single source’). This requires the direct input and involvement of a TfL procurement lead. This process extends the timeframe required; adds additional governance tasks; and requires the allocation of procurement resources.

1.4.    Other revisions to the document include updating: 

•    the threshold above which a procurement strategy is required, again to bring it in line with TfL arrangements
•    the details of how grant-transparency requirements are met. 
Factual changes have also been made to reflect: 
•    updates to job/team titles and the latest procurement terminology
•    current detailed processes and timescales, and other recent updates to governance documents.

1.5.    This Decision is being taken, under the Executive Director’s authority under section 2.4 of the Code to make amendments – providing GLA policy is not significantly or materially altered. These amendments include updating the document to reflect changes in the law and other external guidance that directly impact on the GLA’s contracts and funding approach.
 

2.1.    The purpose of the revision is to ensure that clear and up-to-date policies and guidance are set out in respect of contracts and funding matters; and that these reflect latest legislation and best practice. 

3.1.    Under section 149 of the Equality Act 2010, the Mayor and the GLA are subject to the public-sector equality duty, and must have due regard to the need to: 

•    eliminate unlawful discrimination, harassment and victimisation
•    advance equality of opportunity between people who share a relevant protected characteristic and those who do not
•    foster good relations between people who share a relevant protected characteristic and those who do not.

3.2.    The Code ensures that the GLA takes decisions and manages its resources with probity and value for money; and therefore assists the GLA in delivering for all Londoners. No specific adverse impacts for any groups sharing a protected characteristic have been identified.

3.3.    The Code includes provisions relating to responsible procurement; and ensuring that, through our contracting arrangements, we support social value.
 

Key risks and issues

4.1.    The key risks, and mitigations, are outlined in the table below:

Links to Mayoral strategies and priorities

4.2.    Effective commissioning and procurement supports all of the delivery plans that set out the Mayor’s priorities for Londoners, as well as the pursuit of effective value for public money. 

4.3.    There are no conflicts of interest from those involved in the drafting or clearance of this Decision Form. Section 5 of the Code sets out provisions for handling conflicts of interest on specific procurements. Staff involved in grant-making activity are subject to the rules and guidance around handling interests in the Code of Ethics and Standards, and in supporting guidance. 

5.1.    A large proportion of the GLA’s business is conducted through contracted activity. Hence, it is important that clear guidelines are set and observed. The update of the code ensures that appropriate arrangements are in place to safeguard the GLA’s assets; and ensure value for money is obtained. There are no direct financial implications arising from the Decision.

6.1     In line with a range of applicable statutory requirements and good practice, the GLA’s governance arrangements are designed to ensure it:

•    conducts business in line with the law and proper standards 
•    safeguards and properly accounts for public money; and spends it economically, efficiently and effectively 
•    sets clear expectations for the Mayor, Assembly Members and GLA staff – in particular, that their conduct upholds the seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership     

6.2    Officers have confirmed that the proposed changes to the Code do not significantly or materially alter the GLA policy it sets out. Accordingly, the amended Code (Appendix A) may be approved by the Executive Director of Corporate Resources and Business Improvement, pursuant to the current Code (as approved by the said Director under cover of DD2744).
 

7.1.    This work will be delivered according to the following schedule: