Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council [1990] 3 All ER 25

Facts

  • Blackpool & Fylde Aero Club had previously operated pleasure flights from Blackpool Airport under licences from Blackpool Borough Council.
  • Upon expiry of its licence, the Council invited bids for a new licence to operate pleasure flights.
  • The Aero Club submitted a bid that complied with all stated requirements and deadlines.
  • Due to an administrative error, the Aero Club’s bid was not reviewed by the Council.
  • The Council awarded the licence to another party, overlooking the Aero Club’s valid tender.

Issues

  1. Whether a public authority is legally obliged to consider all bids that are properly submitted in accordance with the invitation to tender.
  2. Whether the omission to review a valid bid due to an administrative error breached the authority’s duty of fairness and honesty in public procurement.
  3. Whether standard wording in an invitation to tender, reserving the right to reject any or all bids, relieves the authority of the duty to review all validly submitted bids.

Decision

  • The Court of Appeal held that the Council breached its duty by failing to consider the Aero Club’s properly submitted bid.
  • The invitation to tender created an implied obligation for the authority to consider every valid bid received before the deadline.
  • Standard reservation clauses did not permit the Council to ignore valid bids; they only allowed discretion regarding which bid to accept.
  • The Council’s administrative error rendered the procurement process unfair.

Legal Principles

  • Public authorities must comply with the common law duty of fairness in considering all properly submitted bids within a tender.
  • The obligation exists even where the authority reserves the right not to accept any bid.
  • Openness and equal treatment are fundamental in public procurement, demanding honest and unbiased review of bids.
  • Effective and reliable administrative processes are essential to ensure compliance with these legal duties.

Conclusion

Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council established that public authorities are legally bound to review all validly submitted bids in a procurement process, reaffirming the principles of fairness, honesty, and equal treatment in public contracting regardless of discretionary clauses in the invitation to tender. The case remains a foundational precedent for openness and fairness in UK public procurement law.

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