Part 4e
Contents
8. Engaging The Corporate Procurement Team
10. Waiver to Contract Standing Orders
11. Declaration Of Conflicts of Interest (CoI)
13. Collaborative And Partnership Arrangements
14. Selection / Award Criteria
20. Threshold 2 - £5,001 - £25,000
21. Threshold 3 - £25,001 - £100,000
22. Threshold 4 - £100,001 – UK Public Procurement Threshold
23. Threshold 5 – Over UK Public Procurement Threshold
24. Frameworks, Open Frameworks, Dynamic Purchasing Systems and Dynamic Markets
26. Evaluation and Due Diligence
28. Contract Sign Off / Scheme of Delegation
Appendix 2 - UK Procurement Thresholds
Appendix 3 – Flowchart of notices under the Procurement Act
Introduction
1. Purpose
1.1. These Contract Standing Orders (CSOs) form part of the Council’s constitution. They set out the processes and governance that the Council must follow when conducting procurements and/or entering contracts for the supply of goods, services and/or works including consultants.
1.2. The term contract also includes arrangements where the Council is supplying goods, services and/or works to a separate legal entity.
1.3. The CSOs are intended to support the Council's corporate aims and policies, promote good procurement practice, public accountability, prevent corruption and protect against allegations of impropriety.
2. Scope
2.1. The below are types of contracts which are covered by separate legislation and/or policies:
|
Type of Contract |
Policy/ Law which covers Contracts out of scope |
|
Contracts of employment, which makes an individual an employee of the Council (permanent) or in scope of IR35 (fixed term); |
HR / Recruitment policies |
|
Agreements for the acquisition, disposal, or transfer of land |
As per the Council Constitution |
|
Loans to or from banks or other financial institutions; |
Not subject to competition due to their nature |
|
Provision of emergency accommodation as required |
Homelessness Act |
|
Local Government Audit services |
Appointed persons for the purpose of Local Audit and Accountability Act 2014 and the Local Audit (Appointing Person) Regulations 2015 |
|
Subscriptions to magazines / publications / online resources / professional journals / professional memberships. |
Not subject to competition due to their nature |
|
Works orders placed with statutory undertakers |
Not subject to competition due to their nature |
|
Grants being given by the Council |
Governed by Grant Funding – Service Level Agreements |
|
Contracts entered into by or on behalf of Legal Services for the appointment of Counsel and/or External Solicitors and/or Experts (such as expert witnesses, independent investigators, arbitrators, facilitators and/or mediators). |
Procurement Act 2023 Schedule 2, Part 1 Regulation 14 |
3. General Requirements
3.1. These Orders are based on the following key principals, in line with the objectives of the Procurement Act 2023:
· Ensure that the Council meets its statutory duty to deliver value for money
· Maximise public benefit
· Sharing information for the purpose of allowing Suppliers and others to understand the authority’s procurement policies and decisions
· Acting, and being seen to act, with integrity.
3.2. Under the Procurement Act 2023, the Council must have regard to the National Procurement Policy Statement (NPPS) as amended by the Cabinet Office.
3.3. Statutory Requirements
All purchasing and resulting Contracts made by or on behalf of the Council must be made in writing and comply with:
· The Procurement Act 2023, the Procurement Regulations 2024 and any subsequent legislation;
· The Public Services (Social Value) Act 2012;
· Modern Slavery Act 2015;
· Local Government Act 1999 with due regard to Best Value;
· all other applicable statutory provisions and regulations;
· the Council’s Constitution, Financial Regulations, Scheme of Delegation, Authorised Signatory List and Code of Conduct; and
· all other relevant Council policies and guidance.
3.4. The CSOs apply to all Officers and any other Consultants that are working on a procurement process on behalf of the Council.
3.5. These CSOs should be read in conjunction with the Procurement Toolkit that sets out operational guidance as well as templates for use during a procurement process.
3.6. In the event of any conflict between these CSOs and relevant legislation, legislation will always take precedence over the CSOs.
3.7. Officers must comply with these CSOs unless a Waiver from CSOs is granted, in accordance with CSO 10. Where there is evidence of deliberate non-compliance with the CSOs, disciplinary action may be taken.
3.8. The CSOs apply to all contracts awarded by the Council, regardless of the source of funding (e.g. capital, revenue,sponsorship, donations or grant moniesfrom a third party).
4. Transparency
4.1. Officers must ensure that, where required, opportunities and resulting awards are properly advertised and that they comply with all legislation. A list of notices required under the Procurement Act are detailed in Appendix 3.
4.2. Where disclosures are required under the Freedom of Information Act 2000, the Bidder/Supplier should be given the opportunity to provide justification as to why information contained within their bid should be withheld.
5. E-Sourcing
5.1. All procurements above Threshold 2 must be published via the Council’s E-Sourcing system. This ensures that the Council provides free access to tender documents.
5.2. All communication during the procurement process must be carried out via the E-Sourcing system.
5.3. Following a procurement process, the details of the contract must be added to the Contracts Register.
6. Contracts Register
6.1. The Local Government Transparency Code 2015 requires Local Authorities to publish details of all contracts with a value that exceeds £5,000.
6.2. This information is held on the E-Sourcing system. Please see Procurement Toolkit for further details.
Pre-Tender Preparations
7. Valuation
7.1. Before beginning any procurement, the Total Value of the Contract (excluding VAT) should be calculated by reference to the following (where one or more apply, use the higher value):
a) for fixed term Contracts the total amount payable during the whole of the Contract period, including possible extensions. For example, if the Contract is a fixed term for three years it will be the estimated annual value times by 3; if however the Contract allows for a possible extension of 2 years, the Contract value shall be the annual value times 5 regardless of whether the extension will be utilised or not;
b) if the Contract involves a series of separate transactions for the same type of item, the ‘Total Value of the Contract’ is the expected aggregate value of all those known upcoming transactions;
c) for preliminary work, which may then result in a larger piece of work, it is the value of the scheme in its entirety;
d) where the Contract period is uncertain, multiply the price expected to be paid each month by 48;
e) where the value cannot be estimated for whatever reason, the contract should be treated as above the relevant UK procurement threshold.
7.2. A Contract should not be divided into smaller value Contracts (disaggregated) with the intention to avoid the Procurement Act 2023 or particular CSOs. Where contracts are divided into Lots, the total value for all of the Contracts must be taken into account in assessing the Total Contract Value.
8. Engaging The Corporate Procurement Team
8.1. Before beginning a procurement exercise,
Officers must:
8.1.1. assess the need for the expenditure;
8.1.2. define the objectives of the procurement;
8.1.3. calculate the total value of the Contract;
8.1.4. ensure sufficient resources will be available (i.e. people with sufficient skills and capacityto manage the Contract once it has been let), and
8.1.5. ensure that the appropriate authority is in place to start the process and that the budget covers the whole-life financial commitment being made (including any Consultant's or other externalcharges or fees).
8.2. Contract Managers in collaboration with the Corporate Procurement Team must:
8.2.1. where no suitable existing Council contracts are available, carry out an options appraisal to decide the best way to achieve the objective, including internal delivery or external sourcing, partnering, and collaborative procurement arrangements with another public authority or government department;
8.2.2. consult users where appropriate.
9. Authorisation
9.1. Sourcing Plans for Contracts with a total value above £25,000 must be approved by the Procurement Board prior to Committee approval (if required).
9.1.1. For procurements with a value in excess of £100,000.00:
9.1.1.1. Contract Managers must seek approval from Procurement Board and the relevant Committee for the procurement to commence;
9.1.1.2. If, after evaluation of tender responses, the actual Contract value is greater than that agreed for the procurement, Contract Managers must request approval of the variation at the relevant Committee prior to Contract award notification. The Committee approval must include a supplementary budget estimate to cover any additional ongoing costs, if necessary, in line with existing Financial Regulations.
10. Waiver to Contract Standing Orders
10.1. Subject to any legal requirements, any requirement of these CSOs may be waived in exceptional circumstances. The e-form to request a Waiver can be requested from the Corporate Procurement Team. The Corporate Procurement Team will keep a log of all requests.
10.2. All Waivers will be reviewed by the Procurement Board, who will approve or reject the request.
10.3. No Waiver will be approved if:
· A retrospective start date is requested
· The value is above the UK Procurement threshold
· There has been a clear lack of planning to procure the goods, works and/or services in adequate time
10.4. Following approval of a Waiver requests, Contracts over £5,000 must be entered onto the Contracts Register.
10.5. Where an exemption from competition requirements is necessary because of an unforeseeable emergency involving immediate risk to persons, property or serious disruption to Council services., The relevant Officer must report as soon as practical following the event to the Corporate Procurement Team (corporateprocurement@spelthorne.gov.uk) and one of the following: the Chief Executive, Deputy Chief Executive & S151 or the Group Head Corporate Governance. Any Contract entered into for these purposes should be the minimum required to remove the immediate risk to persons or property or to reduce the disruption to Council services to a manageable level.
11. Declaration Of Conflicts of Interest (CoI)
11.1. Prior to and for the duration of the procurement process, Officers should confirm that there are no actual, potential or perceived conflicts of interest by completing the CoI form (within Procurement Toolkit) . Where Officers become aware of a conflict, they must immediately notify the Corporate Procurement Team.
11.2. Where a consultant or external party is involved in a procurement for the Council, either inputting into the tender documents or being involved in the tender evaluations. They must first complete and submit a CoI prior to the procurement process and for the duration of their involvement.
12. Considerations
12.1. Existing Contractual Arrangements
12.1.1. Prior to any procurement, Officers should ensure that there is not an existing Council contract that can be utilised by contacting the Corporate Procurement Team.
12.1.2. Where there is a contract in place, Officers must ensure that their requirements are in scope of the contract and that the value of new requirements would not cause the contract value to exceed its acceptable tolerances.
12.2. Council Wide Requirements
12.2.1. When procuring, Officers should consider if the goods, works and/or services could be used by other Service Areas within the Council, to ensure that spend can be aggregated and to mitigate against having multiple contracts for similar provisions.
12.3. Pre-Tender Market Engagement
12.3.1. Prior to commencing a procurement, Officers should ensure that they have an understanding of the market conditions in which they are procuring.
12.3.2. Where an Officer is not familiar with the market or the goods, works and/or services, they should ensure that they conduct appropriate market engagement that can be used to inform but not bias their procurement approach, this should be done in conjunction with the Corporate Procurement Team.
12.3.3. Contract Managers may seek advice on the preparation of a specification from anyone who may have an interest in tendering for the Contract. This must not distort competition or prejudice the equal treatment of all potential bidders. Records must be kept of this consultation until the expiry of the Contract.
12.4. TUPE Implications
12.4.1. Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) may apply when an employee of the Council or of a Supplier providing a service to the Council may be affected by any staff transfer arrangement because of a change in the service provider.
12.4.2. Officers should consult the Procurement Toolkit for further information or contact the Corporate Procurement Team.
13. Collaborative And Partnership Arrangements
13.1. In order to secure value for money the Council may enter into collaborative procurement arrangements with other local authorities. Approval to do so must be sought from the Procurement Board.
13.2. In these situations, the contract will be procured in accordance with the constitution of the lead authority. However, normal due diligence, Council authorisation and sign-off processes as detailed with these CSOs will still apply.
Tender Process
14. Selection / Award Criteria
14.1. For all opportunities the criteria must be stipulated within the tender documents, this includes:
14.1.1. The selection / award criteria;
14.1.2. The scoring methodology and weighting to be applied;
14.1.3. The minimum scores to be achieved (where appropriate).
14.2. Selection Criteria
14.2.1. Selection Criteria should be used to reduce the number of bidders at a certain stage. It should be proportionate to the contract value and based on financial standing and past experience of delivering comparable goods, works and/or services.
14.2.2. For contracts over the UK Procurement Threshold, this should also include Conditions of Participation. Suppliers that are on the Debarment List may be excluded or can be considered to be an excludable Supplier at the Council’s discretion. Please see further information within in Procurement Toolkit.
14.3. Award Criteria
14.3.1. When determining the award criteria, there are a number of options available. These should be discussed with the Corporate Procurement Team and will be agreed on a case-by-case basis. Further details can be found in the Procurement Toolkit.
14.3.2. Quality evaluation - determined by any number of qualitative questions. Questions must be relevant, proportionate and specific to the requirement.
14.3.3. Price evaluation – consideration must be given to whole life costs e.g. initial capital expenditure, servicing/support and maintenance, operating costs, consumables, disposal and recycling costs and any other relevant costs.
15. Social Value
15.1. The Public Services (Social Value) Act 2012 places a requirement on people who commission, or buy, public services to consider securing added economic, social or environmental benefits for their local area.
15.2. The Act currently applies only to goods and service Contracts over the Public Procurement threshold but should be considered in all procurements where applicable.
15.3. Social value should form part of a Bidder’s commitments at quote/tender stage and should be tailored to the subject nature of the contract being awarded.
15.4. Further details can be found on the Corporate Procurement Staff Pages.
16. Modern Slavery
16.1. The Modern Slavery Act 2015 was introduced to tackle modern slavery, defined in the act as slavery, servitude, forced or compulsory labour, human trafficking and exploitation.
16.2. Further details can be found in the Procurement Toolkit.
17. Insurance
17.1. Bidders must have or be willing to obtain prior to the contract start date the relevant insurances. Further details can be found in the Procurement Toolkit.
