Procurement and tenders

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All tenders are advertised on this website as well as relevant journals/publications.

Tenders over the EU thresholds will additionally be advertised in the Official Journal of the European Union (OJEU).

e-Procurement

e-Procurement means using an electronic system to buy goods, works and services rather than a paper based system.

All elements of the transaction from the initial ordering to the invoicing and payment can be carried out electronically via email, fax and web in order to streamline processes and reduce costs.

We will also increasingly be looking to encourage companies to take on board e-Procurement and point out the benefits of trading electronically, such as:

• better interaction with other customers and suppliers
• better ability to compete with other suppliers, regardless of size in a much wider market
• helping to reduce costs and streamline processes, increasing efficiency

For contracts of over £25,000 (Goods)/£50,000 (Services and Works), where there is no in-house provider or Corporate Contract for what we want to purchase, a competitive tendering process should be followed.

This means asking organisations to submit competitive bids (tenders) to us. By doing this we can ensure that public money is spent in a way that is fair, open, honest and accountable.

The only exception to this rule is where a reason not to competitively tender for a contract has been agreed and financial regulations have been waived, for example where there is only one supplier or timescales are very short.

Contracts over certain high values are also subject to a series of EU Procurement Directives. These directives require us to:

• advertise and award contracts in the Official Journal of the European Union (OJEU)
• follow specified timescales and
• award contracts, either on the basis of ‘lowest price’, or ‘most economically advantageous tender’ (a consideration of both quality and cost)

The EU directives apply to contracts that exceed the following amounts (as of January 2015) are:

• service and supply contracts over £164,176
• works contracts over £4,104,394

The thresholds vary from time to time and have traditionally been amended every two years on 1 January.

All public sector procurement, regardless of how much is being spent, is governed by an EC Treaty. The basic principles of this Treaty are the free movement of goods and services and non-discrimination against prospective bidders on the grounds of nationality.

There are 4 main ways in which we competitively tender contracts:

• Open Procedure
• Restricted Procedure
• Competitive Dialogue Procedure
• Approved List and Framework Arrangements

Definitions of what all these terms mean can be found on the Chartered Institute of Procurement and Supply (CIPS) website.

These are well established procedures which we follow to ensure we get the best value for money. The process we follow will be determined by a range of factors, including:

• value of contract
• number of suppliers in the market
• the complexity of our requirements
• timescales

Regardless of the process followed, all bids are evaluated according to clear, pre-published criteria by a panel of experienced officers, and contracts will be awarded on the basis of value for money, which means a balance of quality and cost.

For expenditure under £25,000, where there is no in-house provider or contract for what we want to purchase, we must follow the following procedures:

• tender quotations
• Total Contract Value
• procedure
• under £250, at least one verbal or written quotation is sought
• £250 - £25,000 (goods), 3 competitive quotations are sought
• £250 - £50,000 (Services & Works), 3 competitive written quotations are sought

However, if what we want to purchase is very complex or difficult to describe, for example where we are buying a bespoke service, we may seek tenders rather than quotes.

When we spend money on services, we will only undertake a full tendering exercise via a procurement professional if the value is over £50,000.

The threshold for buying goods still remains at £25,000 and any expenditure on goods over £25,000 is still subject to a full competitive tendering process led by a procurement professional.

Value £0 to £250

As a minimum, we will obtain a verbal or written quotation and record details (audit trail).

Value £250 to £2,500

As a minimum, we will invite 3 competitive quotations, verbal or written and record details (audit trail).

Value £2,500 - £25,000 (goods)

We will invite 3 or more written quotations and record details (audit trail). If we are likely to spend £25,000 or more with a supplier, then we will comply with the formal tendering process, led by a procurement professional.

Value over £25,000 (goods)

Procurement professional will lead on formal tendering process.

Value £2,500 - £50,000 (services)

We will invite 3 or more written quotations and record details (audit trail). If we are likely to spend £50,000 or more with a supplier, then we will comply with the formal tendering process, led by a procurement professional.

Value over £50,000 (services)

Procurement professional will lead on formal tendering process.

Value over £164,176

Official Journal of European Union (OJEU) Threshold for Goods and Services, EU Public Procurement Regulations applies.

Contracts in excess of £500,000

Must be under our Seal. 

Value over £4,104,394

Official Journal of European Union (OJEU) Threshold for Works, EU Public Procurement Regulations applies.