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22 May 2012

Selling to the Council

How much does the Council spend?

The Council spends approximately £10m a year on goods, works and services from a wide range of suppliers. Contracts vary from small one-off purchases to large supplies or service contracts. A significant proportion of this is supplied under contract via a competitive tender process in order to achieve value for money. The Council also use frameowrk agreements which are pre tendered contracts that are accessible to a number of public bodies where is represents good value..

One of the key principles of the Council's Procurement is to develop a mixed economy of suppliers, promote partnering arrangements and above all provide value for money. A key Council Corporate Objectives is to "Sustain and promote our local economy" so we are keen to try and make it easier for small and medium local enterprises (SMEs) to trade with the council as long as it is consistent with best value, and in compliance with procurement law.

What The Council Buys
You can see details of all ourpurchase over £500 together with our current suppliers by following this link:

Contract Regulations

The Council has to follow quite detailed procedures called "standing orders" which it must follow when tendering orders.when awarding contracts. These are included in the Councils Constituion as "Contract Standing contracts". Generally the total value of the procurement determines the number of quotes required as follows:

  • Below £15,000 - At least 3 written quotations must be sought from a range of known suppliers, however this can be reduced to 2 with management approval
  • Between £15,000 and £50,000 - a minimum of 3 written quotations or tenders invited from known suppliers
  • Over £50,000 - a minimum of 3 formal tenders invited as a result of a public advertisement
  • If the total contract value is above European OJEU limit then the requirements of the Public sector Procurement Directive (2004/18/EC) apply. These contracts are advertised in the European Journal and subject to special rules

Framework Agreements
Central and local Government Organisation procure goods and services collectively through framework agreements. Framework are basically pre tendered contracts for supply of particular goods of services and are available for local authority to use if they so wish. As they have already been tendered there is no need to go through the councils full tendering and contracts process.

Tendering Process
In the advert there will usually be detailed information as to how the tendering process will work. It may be that you will be required to firstly submit a "pre qualification questionaire" (please see example above) and on the basis of your response you may be be invited to tender. Sometimes though you may be invited to tender straightaway.The tender information will set out clearly the information you must supply, such as accounts etc,,any questions you have to answer and the tender submission arrangements.

Please ensure you submit you tender by the stated time in the manner prescribed as no exceptions can be made

Tender Evaluation

Usually this will be based on price but other consideration such as performance and quality may be taken in to account as well. The evaluation criteria will be set out in the tender documentation

Contract Award
Once the tender evaluation is complete, a report recommending acceptance of the most favorable tender is submitted to the relevant Director or Chief Executive for contracts between £15,000 and £50,000, or to the relevant Director / Chief Executive in consultation with the Chairman of the Executive / relevant Portfolio Holder for contracts of £50,000 and over. Larger contracts may be submitted to the full Executive for approval

Following acceptance of the recommendation the Council's Legal Services will complete the actual contract documentaion with yourselves. Generally the Council will use standard contracts such as JCT contracts to ensure that there is no ambiguity over terms and also so that they can be implemented quickly.

Contract Management
All suppliers carrying out contracts for the Council are monitored to ensure compliance with the contract requirements and conditions. The contract conditions will be strictly applied and explanations sought if a contractor fails to perform to the levels required. Poor performance can ultimately result in the termination of a contract.

Declaration of Interests
The council has very strict rules in regard to the probity of its members, officers and suppliers. If as a potential tenderer you have a connection with an officer or a member this must be declared as part of the tendering process so that it can be evaluated. If such a link were to come to light at a later stage then the contract may be deemed to be invalid. Similarly suppliers should not give hospitality or gifts to officers or members without discussing the matter with the Council's monitoring officer first

Publication of Documents

The council is covered by the Freedom of information Act. It is a condition of all tenders that all contracts may become public If this is not acceptable then this must be made clear at the tender stage


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