Xperior Farm Health, one of the bidders for the government contracts to provide TB testing, has announced that it mounted a legal challenge to the procurement process, but has now withdrawn that challenge in the face of the 'aggressive' timeframe in which Defra demanded that it submit its case.

Xperior says it was made aware last month that all five Delivery Partner contracts would be awarded to members of the same veterinary group (XL Vets), which it felt would both compromise competition and make Defra overly reliant on one service provider.

In addition, Xperior said it believed the successful bids were unfeasibly low, which presents a potentially devastating threat to the viability of many rural vet practices and a seriously reduced quality of TB testing service to farmers.

Xperior says it initially notified a formal query to the Animal and Plant Health Agency (APHA - the executive agency of Defra responsible for awarding the contracts) during the pre-announcement consultation period, and believes other bidders may have done likewise. The query was dismissed, as a result of which the company issued legal proceedings.

Xperior's Veterinary Director, Phil Elkins said: "We are concerned that proposed payment rates for TB testing are considerably lower than those proposed by other bidders, and at a level which questions the viability of practices continuing to provide TB testing services to their clients.

"The consequence would be either unfairly low payment rates for official veterinarians (OVs) who conduct TB testing, or an influx of inexperienced vets, potentially from other countries, into low paid positions. The loss of TB testing income would also challenge the viability of some rural veterinary businesses and the relationships held with their clients.

"Either way, this is contrary to a key tenet in the pre-tender documentation that Delivery Partners are expected to maintain a flow of TB testing work and revenue to contribute to the capability of the veterinary profession in rural areas to support food security and the rural economy."

Meanwhile, an APHA spokesperson said they were limited in how much they could say before the formal announcement of the award, except that: “APHA is confident in the robustness of the procurement process and that the selected bidders are the best candidates to deliver this vital service in the most effective way.”

VetSurgeon.org understands that now the legal challenge has been dropped, an official announcement of the winner will likely be made within days. However, it also seems likely that the payment rates for OVs will remain confidential even after the announcement of the award, so it may be some time before the prospects for OVs become clear.

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