The document discusses the EU public procurement rules regarding colleges procuring services from third party organizations, even if those third parties are other colleges or entities established by the procuring college. Case law has shown the procurement rules still generally apply, unless the third party carries out most of its work for the procuring college, the college exercises the same control over the third party as its own departments, and there is no private ownership of the third party. These are known as "Teckel exemptions". The document also notes that legal firm Eversheds prepared a report for AoC on sharing services in education that reviews models for VAT exemption while considering governance, procurement, and other legal issues.

1. Teckal
The provision of services on a shared basis by Colleges can have many advantages.
However, it can present interesting problems in terms of EU public procurement
law. The question arises whether a College procuring services from a third party
organisation can only do so having gone through a formal OJEU tender process even
if the third party organisation is another College or is an entity the public body
participates in itself and has helped establish.
Case law in this area has shown that in the majority of cases the EU public
procurement regime would still have to be followed, unless:
 the third party organisation providing the service carries out the principal
part of its activities with the College;
 the College exercises the same kind of control over the third party
organisation providing the services as it does over its own departments; and
 there is no private sector ownership of the third party organisation providing
the services nor any intention that there should be.

These exemptions are commonly known as ‘Teckel exemptions’.
Eversheds have prepared a report to advise AoC on a number of core legal issues
surrounding sharing of services within the education sector. The primary aim of the
report is to review certain models for VAT exemption status whilst at the same time
take account of relevant governance, procurement, HR, pensions and freedom of
information issues. The report is available on AoC website.