Procurement

Procurement Rules and Strategy

The value of a contract determines the procedure that Council Officers must follow when letting a contract. The value will dictate whether the Council must follow its own internal rules (Contract Standing Orders) or whether the EU Public Procurement Directives must be followed.

EU Public Procurement Directive 2014/24/EU

As a local authority, the Council has to comply with the European Union Public Procurement Directives. These rules can be quite complex, but essentially they are designed to ensure that any firm or organisation in any EU member country has a fair and equal opportunity to compete for any public sector contract in any EU country.

The rules themselves, with a few exceptions, require all invitations to tender for contracts above a certain value to be advertised in the supplement to the Official Journal of the European Union (OJEU).  To view, visit the Tenders Electronic Daily (TED) website. They also specify, for example, certain allowable criteria upon which contracts can be awarded, the designated tendering procedures and the minimum timescales to be allowed for the submission of tenders. The rules are backed up by substantial legal remedies for any non-compliance.

Contracts with an estimated value above the following thresholds are subject to the Regulations. The EU Procurement thresholds which took effect from 1st January 2016 are detailed below:-

Contract Type

Threshold

Services

£189,330

Supplies

£189,330

'Light touch' contracts

£663,540

Works

£4,733,252

 

Contract Standing Orders

The Council's Contract Standing Orders forms part of the Council's Constitution and compliance by all Council Officers is mandatory. These rules are applicable to the letting of any contract below the threshold for being caught by the European Union Public Procurement Directives.

The thresholds for tendering set out in Contract Standing Orders are: 

 

Estimated total values

(i.e. for full duration of contract including

any extension options)

 

 Competition requirements

Advertising requirements

Below £10,000

No formal competition required, although quotes can be sought in order to demonstrate best value No advert required

£10,001 - £25,000

Seek a minimum of 3 written quotes identified following market research or use a suitable/compliant Framework Agreement as per competition rules of Framework or seek a minimum of 3 written quotes from an Approved Supplier List No advert required

£25,000 to £100,000

Formal Request for Quotation process using the open procedure, or use a suitable approved/compliant Framework Agreement or seek a minimum of 3 written quotes from an Approved Supplier List Advertise on council, South East Business Portal and Contracts Finder websites

£100,000 to the relevant EU threshold

IWC Invitation to Tender process using the open procedure, or use of a suitable approved/compliant framework or seek a minimum of 5 written quotes from an Approved Supplier List Advertise on council, South East Business Portal and Contracts Finder websites and consider one industry publication
 

£4,733,252 and above for works contracts

£663,540 and above for 'light touch' contracts

£189,330 and above for goods and services contracts

These thresholds apply between 1st January 2020 to 31st December 2020

Invitation to tender process in accordance with requirements of Public Contracts Regulations 2015 Advertise on Council, South East Business Portal and Contracts Finder websites, the Official Journal of the European Union (OJEU) and consider two industry publications

 

Procurement Strategy

The Council's Procurement Strategy 2019-2022 was approved by Executive in November 2019. The Procurement Strategy maps out the initiatives to be addressed in the forthcoming three years through the 'Action Plan' which contains objectives against which progress can be measured and reported.