E-procurement
Bath & North East Somerset Council is
committed to streamlining the tendering, implementation and
monitoring of contracts with the use of new technologies. It is
envisaged that e-enablement and e-procurement will become an
increasingly important factor in doing business with the Council.
Currently the Council produces its OJEU notices electronically and
usually employs e-mail to transmit Pre Qualification Questionnaires
(PQQ’s) and Tender documents, and for certain suppliers complete
transactions by means of electronic payment. Further e-enabling
technology is planned.
The Council is also keen to promote the use of Procurement Cards
as a payment method, bringing cost and efficiency savings to both
the Council and the supplier. In the future it is likely that the
Council will become part of an online marketplace, and all
suppliers should have the capability to be able to receive orders
and submit invoices to the Council electronically.
Value thresholds and advertising of contracts
Depending upon the contract value (and
subject to certain exemptions e.g. purchase of social care
packages), Council officers must follow the guidelines set out in
the Council’s Contract Standing Orders as follows;
|
Value of Procurement |
Award Procedure |
|
Up to £5,000 |
Demonstrate VFM |
|
£5,001 - £25,000 |
2 written quotations |
|
£25,001 - £75,000 |
3 written quotations |
|
£75,001 - EU Limits
(139,893 for services or goods, £3,497,313 for works) |
3 written tenders |
Other considerations are factored in to the selection criteria,
for example the complexity of the goods, works or service to be
provided or the level of risk associated with the contract to be
performed. This will help to determine the process to be
followed.
Contractor Selection
A selection or combination of the
following methods is used for all contract opportunities:
Using Supply2.gov.uk
Created by the Enterprise Directorate www.supply2.gov.uk has been
designed specifically to ensure that small businesses have the
opportunity to win a larger share of lower value (typically below
£100K) public sector contracts. Using Supply2.gov.uk is free and is
recognised as best practice by both businesses and Government,
which regard the portal as a useful and effective tool for
providing a route to help small businesses thrive and grow. An
official interpretative document published by the European
Commission has uniquely recognised Supply2.gov.uk as a best
practice means for public authorities to advertise their
lower-value contract opportunities to businesses.
Open Advert in a trade journal or local or national
newspaper
Often this method is used for ‘one-off’ procurement exercises.
An open advert is placed detailing the basics of the contract,
timeframe of response and where expressions of interest, contract
documentation or further information can be obtained.
Council Accredited Database
The system contains a listing of accredited suppliers and
contractors over a range of procurement categories. It is a
national database used by both private and public sector
organisations and all checks, vetting and administration of the
system is carried out externally. This not only saves the cost of
advertising and time spent in identifying suitable contractors but
also ensures the Council are only using suppliers who have already
met basic quality standards and demonstrates integrity and quality
is built into processes.
Use of approved Council Providers
This method is used in specific service areas (sometimes
referred to as a ‘standing list’ or authorised list of providers)
where there is an ongoing procurement need and saves the cost of
repeatedly advertising. The list is developed and maintained
in-house and will normally contain a number of contractors or
suppliers who have been internally authorised/accredited to provide
goods, works or services in that area. Selection of contractors
from that list will then be on a rotational basis normally
including the winning contractor from the last contract.
Use of an approved National List
This method can be used where it is difficult to identify a
local market or for one-off exercises or where the Council
Accredited Database cannot satisfy the need.
In summary the
Catalist is a catalogue based procurement facility
providing public sector organisations with a simplified means of
procuring and contracting for, a wide range of Business,
Professional and IT Consultancy and Specialist services from a
variety of providers.
Constructionline
This is a database very similar to the Council Accredited
Database (Exor) The system is available for use within the Council
and is used as a backup to the Exor system.
Use of a single supplier from a ‘Corporate Contract’ or
Long-Term Contract
This method of procurement should be used where the procurement
need matches the goods, works or services currently being supplied
by either:
- a corporate contract, where one exists, and the goods, works or
services required match those supplied by the Corporate supplier,
in this case that supplier MUST be used, OR
- Where a long-term contract exists in a service area and the
goods, works or services required match those already being
supplied.
The public notice will set out brief details of the requirements
of the contract to be fulfilled together with information on how to
express an interest.
Deadlines for registrations of interest will be included in the
notices and it is essential that responses are received by the date
stated. Any documentation received after the deadline will not be
considered.
European Procurement Legislation
The requirements of the EU Public
Procurement Limits must be observed when tendering and awarding
contracts for goods, services or works. These stipulate that
contracts valued in excess of specified amounts (see below) must be
open to competition within the European Union.
Therefore we are obligated to advertise contracts in the
Official Journal of the European Union (OJEU) when contract values
exceed:
1 Works contracts –
*£3,497,313
2 Supplies contracts –
*£139,893
3 Services contracts –
*£139,893
The value of a contract is calculated over its entire length and
is not taken as an annual figure. Therefore, for example, a
contract which has a three year term with an annual value of
approximately £50,000 would be worth £150,000 and would be subject
to the EU tendering regulations, as it is above the threshold of
£139,893 .
* These figures are set by the European Union and are subject to
change but are correct at the time of reviewing this document
(January 2008). N.B. Some services are exempt from the full
advertising regime – known as Schedule 1, Part B services – but
will need to follow the rules of transparency, non-discrimination,
mutual recognition and proportionality.
OJEU is available in electronic form either via the Internet on
‘Tenders Electronic Daily’ (TED) (this
site automatically defaults to French; English can be selected via
the top right hand corner of the screen)
or in CD-ROM format available from the Stationery Office on 020
7873 9090.
Procurement Contacts
Outsourced Services
These services are not subject to the same procedures as Council
Operated Services, please contact the outsourced service provider
directly to find out more about becoming one of their
suppliers.
| IT & Telephony Peripherals |
HBS, Helpdesk
01225 477252 |
| Leisure Centres & public golf courses |
Aquaterra Leisure, Alison Baker 01225
396097 |
The Procurement Process
Tendering for the award of major
contracts may be:
‘Open’ – a single stage process where tenders are issued
to all who express an interest.
‘Restricted’ – a two-stage process where a shortlist of
tenderers is prepared for the purpose of inviting bids.
‘Negotiated’ including ‘Competitive Dialogue’ – a
process used only in certain circumstances, e.g. where contract
requirements cannot be fully defined and in complex contracts where
the Authority conducts a dialogue with the candidates admitted to
the procedure, with the aim of developing one or more suitable
alternatives capable of meeting its requirements, and on the basis
of which the chosen candidates are invited to tender.
‘Framework’ – a collaborative agreement between one or
more authorities with one or more suppliers to establish the terms
governing contracts awarded during a specific period and which
defines price and, where appropriate, quantities.
‘Dynamic purchasing’ – a completely electronic process
for making commonly used purchases. This is a procedure which is
limited in duration and open throughout its validity to any
potential suppliers which satisfy the selection criteria and have
submitted an indicative tender that complies with the
specification.
How to find out about forthcoming contract
opportunities
A summary of planned contract opportunities is published on the
Bath & North East Somerset Web site. This site is regularly
updated with key contract details but for more information about
specific contracts please contact the responsible officer within the relevant
service area.
Prior to going out to tender contract opportunities will usually
be advertised in local newspapers, trade journals if relevant and
for those contracts over the EU thresholds contract notices will be
placed in the Official Journal of the European Union (OJEU) The
opportunities available can be reviewed on the official
EU website. (this site automatically defaults to French;
English can be selected via the top right hand corner of the
screen).
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