corporate procurement guidance manual

102 Pages·2007·0.33 MB·English

ANNEX A

CORPORATE PROCUREMENT
GUIDANCE MANUAL

Contents Page

Section 1 – Scope and Purpose
Introduction 1
Section 2 – Introduction: A Guide to Getting Started
What does “Procurement” Mean? 4
The “Procurement” Process 4
Legal Implications of Procurement 4
Initial Considerations 4
Deciding How to Proceed 5
Corporate Procurement Team Contacts 9
Section 3 – Best Practice Procurement
Specifying the Requirement 11
Sourcing Your Suppliers and Market Sounding 12
Considerations for Quotation and Tender Documentation 12
Dealing with Clarification 13
Evaluation of Tenders and Quotations 14
Selection Process 15
Tender Evaluation and Award 15
Quality 15
Non-Compliant Bids 17
Price 18
Evaluation Panel 19
Scoring Quality and Price 19
Whole Life Costing Considerations 20
Receipt of Tenders and Quotations 25
Negotiation 25
Award of Contract 25
Document Retention and Record Keeping 26
Freedom of Information 26
Public Interest Tests 28
Contract Management 29
Environmental & Sustainability Considerations 30
Call-Off Arrangements & Framework Arrangements 30
Mini Competition Under a Framework Agreement 31
Approved Lists of Suppliers 31
Use of Consultants 31
Partnering 32
Equalities, inclusion and ethical procurement 33
Section 4 - Guidance for Procurement under £5,000
Procedure Flow Chart 35
Section 5 - Guidance for Procurement Over £5,000 and
Less than £30,000
Procedure Flow Chart 37
Section 6 - Guidance for Procurement Over £30,000 and
Less than £144,371
Procedure Flow Chart 40
Section 7 - Guidance for Procurement Over £144,371
The EU Procurement Regulations 43
Open Procedure 46
Restricted Procedure 49
Negotiated Procedure 51
Competitive Dialogue Procedure 54
Advertising in the Official Journal of the European Journal 57
and Elsewhere
Contract Award Notices 57
Alcatel Requirements 57
Amendments and Unsuccessful Procurements 58
Appendix 1 - Council Corporate Contracts 59
Appendix 2 - Overview of the Procurement Process 60
Appendix 3 - Writing a Specification 61
Appendix 4 - Invitation to Tender Letter 81
Appendix 5 - Invitation to Quotation Letter 82
Appendix 6 - Successful and Unsuccessful Supplier Letters 84
Appendix 7 - Freedom of Information Clause 86
Appendix 8 - PQQ Evaluation Guidance 87

Appendix 9 - Equalities, inclusion, sustainability and ethical 94
procurement principles
Appendix 10 - Equalities, inclusion, sustainability and ethical 95
procurement policy
Corporate Procurement Manual

Section 1

Scope and Purpose
Section 1
General Introduction

Introduction

1. This manual provides practical advice and guidance on good practice
procurement techniques, standards and legislation. It has been
produced to help all involved understand what is expected when
goods, services or works are being procured on behalf of the Council.
The manual should be read in conjunction with the Council’s financial
regulations and understood in the context of the Council’s Corporate
Procurement Strategy and medium term action plan. Exhibit 1 below
shows how the manual sits in relation to other key component parts
of the Council’s policy and decision making framework for
procurement.

Exhibit 1
The Financial Regulations & Procurement Rules
The Constitution
sets out the
These form part of the Council's Constitution and set out the basic rules and standards
Decision Making &
that must be observed across the authority in terms of general principles, minimum
Accountability
standards and the accountability framework (ie who is responsible and what must be
Framework
done) within the context of the Council's Articles of Association, Standing Orders and
of the Council
Scheme of Delegation
The Policy Framework The Procedural Guidance
The Competition Handbook
The Competition Policy & Strategy
This sets out how to review, test and document the
This sets out the Council's vision of where it wishes to competitiveness of Council services when determining
place itself in the future on the commissioning versus 'make or buy' decisions. It applies to all services and
providing continuum for strategic management should be read in conjunction with the the Competition
purposes. It includes an organisational action plan to Policy & Strategy. If a decision is made to procure
inform the strategic change management needs of the commissioing officers must then refer to Financial
organisation and help inform the future positioning Regulations and the Guidance Manual to inform the
of Council services in the market place management of the procurement exercise to be
undertaken
The Corporate Procurement Strategy
The Procurement Guidance Manual
This sets out an overall vision of the role,
organisation and purpose of procurement activities at This sets out how things should be done to ensure all
the Council in the context of the various policy issues procurement activities at the Council are undertaken
that must be taken into consideration when a in accordance with best practice and in compliance
decision has been made to proceed to procure. It with the Council's Financial Regulations &
includes an organisational action plan for development Procurement Rules, UK legislation and EU Directives
and improvement covering 2007 -2010.
2 All procurement carried out by the council, whether undertaken by
officers, members or on behalf of third parties, must be conducted in
accordance with Financial Regulations & Procurement Rules and
Procedures and the guidance contained within this manual. This is
important for the following reasons:

• To ensure compliance with the council’s Financial Regulations
& Procurement Rules and Procedures;
• To ensure that the council obtains value for money in the way
it spends money, so that it may in turn provide value for money
services to the public;
• To comply with the law governing the spending of public
money; and
• To protect staff and members of the council from undue
criticism or allegation of wrong doing.

Scope & Structure of the Manual

3 The manual is divided into six sections:

Section 1 Scope & Purpose

Section 2 Introduction: A guide to getting started

Section 3 Best Practice Procurement

Section 4 Guidance for Procurement up to £5,000

Section 5 Guidance for Procurement Over £5,000 and less than
£30,000

Section 6 Guidance for Procurement over £30,000 and less than
£144,371
Section 7 Guidance for Procurement over £144,371
Corporate Procurement Manual

Section 2

Introduction: A guide to getting
started
What Does “Procurement” Mean?

1 Procurement can be defined as the “the acquisition of goods, works
and services from third parties”. In essence it is about obtaining the
best out of the marketplace. To achieve this requires the application
of professional skills and techniques. Procurement is a broader term
than “purchasing” as it includes alternative forms of acquisition such
as hire, rental and leasing for example and concerns the entire
process of acquisition. At a strategic level it plays an important role in
challenging existing service delivery methods.

The “Procurement Process”

2 When we talk about “procurement we tend to concentrate upon the
actual buying activity, but in fact procurement concerns the whole
process of acquisition. This process starts with the identification of a
specific need and ends with that need being satisfied. An overview of
the procurement process is provided at Exhibit 2.

Legal Implications of Procurement

3 All procurement results in contract between buyer and seller. Be
careful – a contract does not have to be formal document or be in
writing to be valid. A conversation for example with a potential
supplier could create a legally binding contract. Almost all commercial
transactions are governed by contract law which provides both buyer
and seller with legal rights.

4 If the procurement process results in an agreement with a body or
organisation that is not part of the council, it is very likely that it will be
a legally binding contract.

5 Council Financial Regulations & Procurement Rules and Procedures
provide the framework by which all procurement must comply,
whether the purchase is for supplies, services or works.

6 Council Financial Regulations & Procurement Rules and this manual
cannot cover every eventuality. If you are unsure how to proceed
seek advice from the Council’s Corporate Procurement Team.

Initial Considerations

7 Lack of time and inadequate preparation are the main barriers to
effective procurement. Ensure that you know the timescales involved
in carrying out the required exercise and the amount of preparation
that will be needed.