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Selling to the Council

A Guide to help Suppliers do Business with the Council

The Government is launching an on-line procurement course "Winning the Contract". This is a Free resource to help businesses (and in particular SMEs) learn about public procurement and how to bid for public sector contracts. The course can be accessed via the Business Link webpage at: www.businesslink.gov.uk/procurement. Opens in a new window

A shorter version would be:

Free public procurement course for businesses
Launched today an on-line public procurement course "Winning the Contract".
This is a free resource to help businesses learn about public procurement and how to bid for public sector contracts.

The course is available via the Business Link view www.businesslink.gov.uk/procurement. Opens in a new window

The course introduces businesses to the key procurement processes, including:

• identifying the advantages and disadvantages of dealing with public bodies
• understanding how different types of contracts are defined, advertised and dealt with
• understanding approved supplier lists and framework agreements
• searching for and finding public sector opportunities
• identifying the key stages in the tendering process

It also has a useful Resource section, case studies, and a Hints and Tips download. "

Topics include:

• Why a Guide?
• What the Council buys
• Financial Thresholds
• Approved Lists
• Rules & Regulations
• Tendering Process
  • Information Requested on the Application Form for Approved List & Tenders
  • Deadlines for Responding to Advertisements
  • How the Tendering Process Works
  • Invitation to Tender (ITT)
  • Receipt & Opening of Tenders
  • Tender Evaluation
  • Contract Award
  • Contract Management

Why a Guide?
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. About 70% of this total is supplied under is supplied under contract via a competitive tender process in order to achieve value for money

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 "Promote a buoyant and sustainable economy" One way of achieving this is for the council to 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.

Therefore this Guide has been developed to assist organisations that wish to bid for contracts with the Council to guide you through the contract and tendering procedures.

What The Council Buys
Listed below are typical procurements:

Goods

• Computer Hardware
• Computer Software
• Stationary Supplies
• Office and Printing Paper Products
• Mobile Phones
• Photocopiers
• Car Parking and Enforcement Equipment
• Office furniture and Equipment
• Vehicles (private and small commercial)
• Clothing
• Meals on Wheels
• Catering Products and Provisions

Works

• Property Maintenance
• Small Construction Contracts
• Landscaping and Grounds Maintenance

Services

• Consultancy Services
• Leisure Centre Management
• Refuse Collection
• Fleet Management
• External Printing
• Agency Staff
• Advertising
• Insurance
• Utilities
• Office Cleaning Services

Financial Thresholds (exclusive of VAT)
The following financial thresholds govern contracts that are competitively tendered by the Council:

• 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 £139,893 (at 31st January 2008) a Supplies and/or Services Contract or £3,497,313 (as at the 31st January 2008 for works 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

The Council is continually looking to improve commercial flexibility within our procurement practices and achieve best value for the Council whilst working within statutory and EU requirements. Local suppliers are encouraged to tender for our business wherever possible.

Framework Agreements
Central and local Government also procure goods and services collectively through framework agreements. These agreements for particular goods of services have been subject to tender and are this available for any local authority to join if they so wish. Use of these agreements means that there is no need to go through the councils full tendering and contracts process. These agreements also constitute best value. Details of these can be found on The Office of Government Commerce (OGC) Opens in a new window website.

Rules & Regulations
The Council has to follow particular regulations when buying Supplies, Services and Works to ensure fair competition, probity and value for money.

Council Contract Standing Orders and Code of Practice for Contracts
These regulate how the Council conducts its business and employees of the Council must comply with them. They set out the principles and procedures for advertising, evaluating and letting contracts.

European Procurement Legislation (EU Procurement Directives)
The EU Directives state financial thresholds (Works £3,497,313; Supplies or Services £139,893) and prescribe procurement routes to be followed. Tenders are advertised in the local and national press, trade journals and in the Official Journal of the European Community (OJEC), Government Opportunities and Contrax Weekly.

Tendering Process
Information Requested on the Application Form for Approved List and Tenders

If your company applies wishes to apply to receive a tender document, you may be required to provide Pre-Qualification questionnaire (PQQ) to assess your eligibility to be invited for tender. The PQQ will request details of a company's financial, technical, social and environmental standing. An assessment of the Company's ability to deliver the requirement will be made using the information provided.

Typical information required includes:

• Audited accounts for the previous three years, including draft accounts for the current financial year, if audited accounts are unavailable
• Details of a proven track record in providing similar contracts for the previous three years: including a list of principal clients with contract values, dates, names, addresses and contact telephone numbers.
• Equal Opportunities Policy
• Health and Safety Policy
• Environmental Policy
• Sustainability Policy

Deadlines for Responding to Advertisements
Deadlines will be included in advertisements and are in calendar days. It is important that you ensure you make your submission by these dates as any received late will be disqualified.

How the Tendering Process Works
There are 3 main ways of tendering:

Open Tendering

• Open Tendering is a one-stage process, where all interested providers responding to an advertisement may submit a tender.
• The advertisement will state where interested parties may obtain tender documents and the last date when tenders will be received.

Restricted Tendering / Invitation to join a select or standing list

• This is a two-stage process in which potential contractors expressing an interest in bidding are vetted first using a PQQ. A short-list is then drawn up from the vetting from which successful suppliers are invited to tender.

Negotiated Tendering

• This is when the Council, under certain limited circumstances, negotiates with one or more firms of their choice. For example it may be used in cases of extreme urgency which could not be foreseen by the Council or where there is only one supplier in the market. It would not normally be used when either open or restricted tendering was a suitable option.

Invitation to Tender (ITT)
If you are successful in being invited to tender, you will be forward an ITT. The ITT will comprise of the following:

• An invitation to propose or tender - detailing when, where and how the ITT is to be submitted
• Contract conditions - defining the terms of business between the Council and supplier. The final version may be based on the Council's own conditions, model form of contract provided by the Chartered Institute of Purchasing and Supply (where appropriate) and the supplier's own terms and conditions
• Specification/Requirements - setting out the Councils service requirements and any technical requirements
• Form of Tender - where you make your formal tender offer
• Summary of Cost and Charges
• Insurance
forms e.g. Employers, Public and Professional Indemnity (as required)
• Parent Company Guarantee or other form of surety equaling 10% of the total contract price (this requirement is dependant upon the results/recommendations of the financial vetting and the value of the contract)

It is important that you follow all instructions in the ITT, to avoid disqualification. The tender must be submitted on time: a time extension will be not allowed and late submissions will remain unopened. Similarly any tenders received with envelopes marked to identify the sender will remain unopened.

You must also declare if you have any connection with any Officer, Employee or Member of the Council at this stage or when you become aware of it if later. Failure to declare an interest at this stage may result in the contract being terminated if awarded

Receipt and Opening of Tenders
It is your responsibility to ensure that tenders are received at the Council Office by the due date and time. Any tenders received late are disqualified. It is advisable to obtain a receipt if you submit in person or to use Registered Post. All tenders received are recorded in the Tender Receipt Book and kept in a secure location until opening. All tenders are opened within two working days of the closing date by either 2 officers of the Council and/or a member depending on the value.

Once opened, all tenders are recorded in writing on a Tender List before they undergo evaluation.

Tender Evaluation
The purpose of the evaluation process is to review the whole life cost of submitted tenders in an objective way, by considering the effects of method statements received. This, together with additional information received during post-tender interviews will enable the significance of key service delivery factors to be considered in terms of their effect on the contract price

Key factors are identified and given weighting, weighting is allocated in view of the relative importance of these factors to future delivery of services. You will be advised of the selection criteria when you are invited to tender

A panel of at least 3 officers (the budget officer and 2 senior officers) is formed to evaluate the submitted method statement(s) and select a short-list from which post-tender discussions and/or presentations will take place. Evaluation takes place independently. The Council ensures that tender evaluation is carried out in a comprehensive, equitable, auditable and transparent manner. To ensure fairness, the criteria and method will be clearly defined before evaluation commences and an outline to the process will be included in the ITT, typically:

• Meeting the Council's requirements laid out in the ITT
• Method Statements, the ability to meet the Council's requirements or exceed them
• A clear commitment to quality of service delivery
• The resources and level of commitment which will be allocated to the provision of the service
• price

The evaluation of tenders will be carried out in the following stages:

• An evaluation of tenders submitted against the Council's requirements
• Presentations and/or product demonstrations
• Post-tender discussion/confirmation regarding product functionality, contract price/charges and contractual terms in-line with the terms and conditions of contract detailed in the ITT

Points are awarded for each Method Statement on a scale of 0 to 3 (half points may be awarded). Weighted scores are used to adjust the submitted tender figure in order to take account of those factors important to future service delivery.

The evaluation process achieves the following:

• It provides, through the development of an effective weighted scoring system, a fair evaluation of all tenders received
• It ensures that the tender process itself is an effective way of testing the Service Provider's competence and understanding of the Council's requirements
• Quality can be measured in an effective and objective way
• Genuine differences in quality can be measured and thus provide a 'weighted price' based on an objective assessment of value to the Council
• The method provides a powerful evidential tool for the rejection of unsound tenders
• The whole process is transparent and correctly documented

The tender evaluation is based on a Price/Quality balance. View an example of qualitative weighting criteria | and scoring mechanism.

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.

Following acceptance of the recommendation, the Chief Executive will write a "Letter of Intent" to the successful tenderer and contracts will be passed the Council's Legal Services for negotiation/completion. Where possible the council prefers to use standard contracts such as JCT contracts to ensure that there is no ambiguity over terms.

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.