All contracts for purchase by the Council will fall under the definition of works, goods or services.
- Works - In general this will include the execution of building or engineering projects. It can range from civil engineering or construction projects right through to the installation of fixtures / fittings or work such as plastering or joinery.
- Goods - This will include contracts for the purchase, hire or installation of goods. The definition of goods is extremely broad, but will include computer software as well as utilities such as electricity or gas.
- Services - This will include any proposed public service contract. Again this is a wide ranging definition, but examples could include waste collection or recycling contracts.
The procurement process the Council is required to follow when purchasing works, goods or services is dependent upon the type and estimated value of the contract.
For 'lower value' contracts, quotations will be obtained and the budget holder and relevant head of service will make the decision as to which supplier to award the contract to. This decision will normally be based on best value for money. Quotations will be obtained using Delta. This is a web-based service that provides suppliers the chance to respond to opportunities that arise with the Council as well as over 525 other public sector bodies, representing thousands of individual buyers.
For all other contracts, the proposed works, goods or services will be advertised as widely as possible. Potential suppliers will be asked to express their interest in applying for the contract and complete tender documentation, which will be evaluated against pre-determined criteria to find the successful candidate.
Prior to contract award, all interested parties must be informed of the outcome of the tender process. A 'stand-still' period must then be allowed for debrief and objection. Further information on the tendering process can be found in our tendering guide.
However as an alternative to tendering, where appropriate, the Council may opt to use Framework Agreements to award contracts. This could be through a direct call-off or through further competition with the suppliers on the framework as appropriate.
Public Contracts Regulations
All local authorities and public sector bodies are subject to public procurement regulations that govern how it may purchase goods, works or services over a specific value.
How the Council will determine which procurement process to use
The Council will use the thresholds detailed below to determine the appropriate procurement process
|
TYPE OF CONTRACT / ESTIMATED VALUE |
PROCUREMENT PROCEDURE |
|
|---|---|---|
|
Works |
Goods / Services |
|
| Up to £3,000 | Up to £3,000 | One oral quotation (confirmed in writing where the total value exceeds £500) |
| £3,001 to £50,000 | £3,001 to £50,000 | Three written quotations |
| £50,001 to £4,732,251 | £50,001 to £213,476 | Invitation to tender* to at least three, and normally no more than six candidates |
| £5,336,937 and above | £213,477 and above | Becomes a Regulated Procurement and must be advertised nationwide through the Find a Tender Service (FTS)* # |
*However as an alternative to tendering, where appropriate, the Council may opt to use Framework Agreements to award contracts. This could be through a direct call-off or through further competition with the suppliers on the framework as appropriate.
#When calculating the estimated value of the contract to determine whether the regulations apply, the contract value estimation should be inclusive of VAT. For the purposes of advertising, the estimated contract value will continue to be provided exclusive of VAT. Similarly for contract award notices, these will continue to be published exclusive of VAT.
For further information on doing business with the Council please email [email protected]