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Prepared by:
Corporate Procurement
Level 7
Civic Offices
Reading
Berkshire RG1 7TD
0118 939 0945
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Corporate Procurement Unit
April 2007
CONTENTS
About this guide
Section 1
Contractual Arrangements
Section 2
Procurement Rules and Regulations
Section 3
Effective Procurement
Section 4
How to find out about opportunities
Section 5
Applying for advertised contracts
Section 6
Tendering for contracts
Section 7
Tender Opening
Section 8
Tender Evaluation
Section 9
Contract Award
Section 10
Electronic Trading
Section 11
Contract Performance
Section 12
Business Continuity Planning
Section 13
Complaints Procedure
Section 14
Current Council Contracts
Section 15
Payment Terms
Section 16
Further Information
Section 17
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SECTION 1 : ABOUT THIS GUIDE
1.
Reading Borough Council has produced this guide to assist suppliers and
contractors; throughout this document reference to “suppliers” means
the suppliers of goods, providers of services and contractors/constructors
for works.
2.
The information contained within this document informs suppliers of
the professional processes applied by the Council in the way it awards
contracts and conducts its business processes.
3.
This guide is designed to help in three ways:a.
b.
c.
It will make suppliers aware of the rules the Council must follow
It will inform companies about the opportunities to supply the
Council
It explains how to bid for Council work
4.
The Council encourages competition and welcomes bids from new and
established suppliers. On the whole contracts are generally awarded
on the basis of Best Value. The Council cannot discriminate in favour
of local suppliers but they will be given every encouragement to
compete for Council contracts.
5.
Any company interested in pursuing business opportunities with the
Council should respond to:•
•
the relevant individual tender advertisement
the Official Journal of the European Union (OJEU) Contract Notice
Following the guidance given in the advertisement/contract notice and
applying to the nominated officer or department.
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SECTION 2 : CONTRACTUAL ARRANGEMENTS
1.
Reading Borough Council arranges contracts covering the
procurement of a wide range of goods, works and services.
2.
All tenders are advertised using as appropriate local papers and trade
publications, various websites such as South East Centre Business
Portal and Supplier Route to Government Portal and where
appropriate OJEU. In addition Business Link and the local Chamber of
Commerce are also advised of forthcoming business opportunities
with the Council.
3.
The nature and style of the tenders varies, depending upon the
required outcome of the project, however the main aspects of the
procurement exercise will be detailed within the tender
documentation.
4.
Many of the contracts let are in the form of a framework agreement
thereby enabling the Council to place orders on a “call-off”
arrangement.
5.
The Council also lets a wide range of works contracts using
select lists of approved contractors, however these ‘lists’ are in the
process of being phased out in favour of the Exor Accredited
Database. However, whenever appropriate individual works related
contracts which fall below the current OJEU financial limits are
advertised accordingly.
6.
Contractors who are registered with Exor are acceptable to the
Council and therefore do not need to complete the Council’s prequalification questionnaire (n.b. excludes OJEU procurements).
7.
The Council also utilises collaborative procurement arrangements
when appropriate, e.g. OGC, thereby enabling goods and services to
be provided in an efficient, cost effective and sustainable way and
assist the Council to meet its corporate objectives. The Council is
also a contributor to the Thames Valley Procurement Forum applying,
where appropriate, joint working with the other five unitary
authorities in Berkshire and beyond.
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SECTION 3 : PROCUREMENT RULES AND REGULATIONS
1.
All local authorities are subject to regulations at a European, national
and local level.
2.
European Rules
All public sector contracts, no matter what their value within the
European Union are covered by a treaty which incorporates the free
movement of goods and services and which prevents discrimination
against prospective bidders on the grounds of nationality.
The principles of the treaty are backed up by a series of E.C.
Procurement Directives, namely,
•
•
•
•
Public Supplies Directive 1993 – 93/36/EEC
Public Services Directive 1992 – 92/50/EEC
Public Works Directive 1993 – 93/37/EEC
Amending Directive 1997 – 97/52/EC (amends the three directives
above)
These directives are included in UK law as a number of regulations:•
•
•
The Public Supply Contracts Regulations 1995 S.I. No. 201
The Public Services Contracts Regulations 1993 S.I. No. 3228
The Public Works Contracts Regulations 1991 S.I. No. 2680
The above Directives have been incorporated into the new
consolidated EU Public Procurement Directive (2004/18/EC) which
includes a single unified text. The new Directive is designed to
facilitate good procurement whilst ensuring that the market is
opened across the EU.
By January 2006, all procurement within Reading Borough Council,
will require to be compliant with the procedures stated in the new
Directive and the changes which they will bring about.
3.
The directives and regulations require the Council to follow detailed
procedures for all procurements above financial thresholds. These
thresholds are reviewed every two years, currently:Supplies
Services
Works
£
144,371
144,371
3,661,319
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The current thresholds are valid until 31st December 2007.
4.
The Council endeavours to follow a basic set of principles:•
For Supplies, Part A Services (see table below) and Works
contracts above the thresholds a specific Tender Notice must be
placed in the supplement to the Official Journal of the European
Union (OJEU) to give all suppliers in the European Union an equal
opportunity to tender
•
Tenders must be invited in accordance with one of the prescribed
procedures (open, restricted, negotiated). Each procedure
imposes minimum time-scales covering the tender activities to
ensure that reasonable time to respond to adverts and prepare
submissions is given to all interested parties
•
A notice of contract award must be placed in OJEU within the laid
down time scale.
•
Unsuccessful contractors must be fully debriefed if requested
Part A Services
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Maintenance and repair of vehicles and equipment services
Land transport services
Air transport services
Transport of mail by land and by air
Telecommunications services
Financial services (including insurance and investment services)
Computer and related services
Research and development services
Accounting, auditing and bookkeeping services
Market research and public opinion polling services
Management consultant services and related services
Architectural, engineering, planning and related scientific and
technical consulting services
Advertising services
Building cleaning services and property management services
Publishing and printing services
Sewage and refuse disposal services; sanitation and similar
services
They are the types of services which are most eligible for crossborder trade.
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5.
National Rules
Whilst there is no requirement on local authorities to subject services
to competition all councils have a duty under Best Value legislation,
which was introduced in April 2000 (as laid down in Part 1 of the
Local Government Act 1999) to fundamentally review their services
and make arrangements to ensure continuous improvement having
regard to economy, efficiency and effectiveness. Councils should set
performance indicators and targets for improvement and these should
by published in an annual Performance Plan.
All local authorities recognise that effective procurement is at the
heart of Best Value and that the Best Value review process will help
deliver the best possible services for the people of the community
they serve.
6.
Local Rules
All procurement activities carried out by the Council must conform
with the Council’s Contract Procedure Rules in relation to contracts –
these can be viewed on the Council’s website.
(http:/www.reading.gov.uk/documents/servingyou/procurement/
contract_procedure_rules.pdf).
The process that will be followed is dependent upon the nature of
the item being procured and its value. A general guide is given in
the table overleaf:
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Value
Below £10,000
From £10,000 and up to
£49,999
From £50,000 or where
the risk in a specific
procurement is
perceived to be high, or
any procurement of any
value that may involve
a transfer of staff
Above current EU
Thresholds
Procedure that will
normally be followed by
Classification
the Council
Low Value Procurement A written quotation will
be obtained from the
suppliers before a
formal purchase order
is issued. The purchase
order form shall specify
the services, supplies or
works to be provided
and set out the price
and terms of payments.
Intermediate Value
At least 3 written
Procurement
tenders or quotations
shall be invited before
a formal purchase order
is issued specifying the
supplies, services or
works to be provided.
Faxed or emailed
quotations are
acceptable for these
purposes. The lowest
tender or quotation
shall be accepted unless
the Director or Service
Head is satisfied that
better value for money
will be achieved by
accepting a different
one.
High Value Procurement Will be subject of a full
tendering exercise.
One of three contract
award procedures shall
be used as appropriate
for the particular
procurement, i.e. open,
restricted or
negotiated. The
relevant Corporate
Director/Service Head
shall appoint a Project
Officer for the
contract.
EU Regulations apply
The Council will adhere
to EU Procurement
Procedures.
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SECTION 4 : EFFECTIVE PROCUREMENT
1.
Effective procurement will support the key strategies and priorities of
the Council. Within the parameters of E.U. and National Legislation,
procurement will be used as a means to support wider Council
objectives such as equal opportunities, social inclusion and the
regeneration of the local economy.
2.
The Council strives to ensure that its activities are characterised by
honesty, equality, integrity and transparency with the objective of
delivering high quality, best value public services.
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SECTION 5 : HOW TO FIND OUT ABOUT OPPORTUNITIES
1.
Potential suppliers are advised to regularly check both the Council’s
Website, local newspapers and relevant trade journals for
advertisements placed by Reading Borough Council seeking tenders
for goods, works and services.
2.
In addition to the above each year the Council publishes a Prior
Information Notice (PIN) on it’s Website showing contracts it intends
to let during a particular financial year.
(http://www.reading.gov.uk/councilanddemocracy/procurement)
3.
The Council, in conjunction with the South East Centre of Excellence,
has been involved in developing a Business Portal which gives details
of existing contracts and contracting opportunities across the 74
Councils of the South East. Potential suppliers are advised to
regularly examine the Business Portal for forthcoming opportunities.
Since January 2007 the Council has published it’s current contracting
opportunities on the South East Centre of Excellence Business Portal;
visit www.sece.gov.uk/businessportal.
4.
In addition, contracts over the EU thresholds are advertised in the
Official Journal of the European Union (OJEU). These can be viewed
at www.ted.eur-op.eu.int. - potential suppliers are advised to
regularly view these websites to obtain details of forthcoming
opportunities.
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SECTION 6 : APPLYING FOR ADVERTISED CONTRACTS
1.
The OJEU Contract Notice or tender advertisement placed by the
Council will inform potential suppliers of the procedure to be
followed and the information required by the Council.
2.
Formal applications must be made by either letter, fax or e-mail.
Potential tenderers will either be invited to tender (where an open
tendering procedure is being followed) or will be sent, either by post
or e-mail, a pre-qualification questionnaire (where a restricted or
negotiated procedure is being followed) to assess the potential
bidder’s suitability to the supply the Council and the ability to satisfy
the terms and conditions of the contract. It is essential that
companies supply all of the requested information and respond by the
due date stated in the documents.
3.
The information requested in the pre-qualification questionnaire will
provide the Council with basic details about an organisation, verifies
that it can be identified as a legitimate trading organisation, that is
has acceptable levels of economic and financial standing, that it
promotes good practices in the areas of equal opportunities,
protection of the environment, health and safety and is capable of
trading electronically.
3.
The pre-qualification questionnaire normally requests the
following supplier/contractor information:•
•
•
•
•
•
•
•
4.
Company Information
Technical Resources and References
Financial Information
Quality Assurance Information
Environmental Issues
Equal Opportunities
Health & Safety
Electronic Trading
Responses to the questionnaire will be used to determine a
company’s eligibility to tender for the contract which has been
advertised.
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SECTION 7 : TENDERING FOR CONTRACTS
1.
An invitation to tender (I.T.T.) will only be dispatched to companies
who have in the opinion of Reading Borough Council satisfactorily
completed the pre-qualification questionnaire.
2.
Occasionally the Council will use an open tendering procedure
which means that any interested party can tender for the contract
and will be assessed for suitability to deliver the contract following
receipt of tenders.
3.
Tender documents will normally be dispatched by recorded delivery
and will be also be provided electronically if so requested by the
contractor.
4.
The Council’s I.T.T. documentation will normally consist of the
following:•
Letter of Invitation – this gives specific details on when and where
the tender should be submitted
•
Form of Tender – a company’s agreement to abide by the terms
and conditions of the tender
•
Instructions to Tenderers – provides guidance for completing the
tender documentation and will normally contain the tender
evaluation criteria
•
Certificate of Non-Collusion – a company’s agreement to provide a
competitive tender submission without disclosing information to
other interested parties
•
Specification of Requirements – sets out the objectives of the
contract
•
General Conditions of Contract – defines the rules tenderers must
comply with
•
Special Conditions of Contract – the timescales etc of the contract
•
Tender Pricing Schedule – the document where tenderers enter
the contract prices
•
Pre-addressed tender return envelope or tender return label – this
states the time and the date by which the tender must be
returned and must be used to return the tender documentation
•
Any relevant supporting information
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SECTION 8 : TENDER OPENING
1.
All returned tenders are administratively controlled by the Council’s
Committee Services Section and dependant upon the value of the
contract are opened in conjunction with Councillors and department
representatives on an agreed date and time for the opening of
tenders.
2.
There are sometimes obvious mistakes and errors made by
contractors/suppliers during the tender process which can lead to
their tender being disqualified or not accepted.
a. Reasons for disqualification:
•
Identification of tenderer marked on the return envelope
•
Tender documents received after the closing date for the
receipt of tenders. Tenderers must ensure that tender
documents are returned no later than the time and date
stipulated in the tender documents. If the deadline is missed
the tender submission will not be considered.
•
Tender documents sent to the wrong address – must be
returned to the stated return address
•
Tender documents returned in the ‘open’ post not in the
appropriate return envelope
•
Form of Tender not signed
b. Reasons for non-acceptance:
•
Uncompetitive – failure to submit the most cost effective, best
value offer
•
Not quoting a price for the specified product
•
Not quoting a price for the specified fixed price period
•
Not completing the tender documents in full – incomplete
tender
•
Unsatisfactory references
•
Unsatisfactory financial history
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SECTION 9 : TENDER EVALUATION
1.
All returned tenders will be evaluated, against the pre-determined
criteria, by the issuing department or appropriate evaluation panel.
2.
Evaluation will focus on examining how the tenders submitted will
deliver the service (quality) and the cost of the service (price). The
balance between quality and price will depend on the characteristics
of the contract.
3.
The Council will normally award the contract on the basis of Best
Value to the authority. The definition of Best Value is the purchase
of all goods and services at the most advantageous terms and
conditions and can include:•
•
•
•
•
•
•
•
•
•
price
quality
quantity
reliability
fitness for purpose of the product
reliability of the delivery
economy over time
reliable after sales service
environmental considerations
total cost to the Council
The total cost to the Council includes administrative overheads
(whole life cycle of acquisition) such as raising orders, processing
invoices for payment etc.
4.
Advisory report is submitted to the appropriate Council committee
requesting permission to award contract.
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SECTION 10 : CONTRACT AWARD
1.
The successful tenderer will be notified in writing by letter or an
official e-mail.
2.
Letters will also be sent to unsuccessful tenderers. For procurements
where EU Directives apply Reading Borough Council will, in
accordance with said directive, incorporate a minimum 10 calendar
day standstill period at the point information on the award of the
contract is communicated to tenderers. This period allows
unsuccessful tenderers to seek further debriefing from the
contracting authority before the contract is entered into. Applicants
have 2 working days from the notification of the award decision to
request additional debriefing and that information has to be provided
a minimum 3 working days before the expiry of the standstill period.
3.
Upon request the Council will, subject to commercial confidentiality;
endeavour to provide unsuccessful tenderers feedback on why their
bid was unsuccessful. This should be viewed as constructive feedback
and used to ensure that unsuccessful tenderers are aware of areas for
improvement to enable them to compete better for future contract
renewals.
4.
In addition, whenever appropriate, the Council will publish a Contract
Award Notice in OJEU.
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SECTION 11 : ELECTRONIC TRADING
1.
As part of Reading Borough Council’s Procurement Strategy it intends
to increase the levels of electronic business over time. This will
include:•
•
•
•
Electronic Tendering
Electronic Ordering
Electronic Invoicing
Electronic Payment
The Council is currently actively working with current suppliers to
deliver its e-Commerce Strategy.
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SECTION 12 : CONTRACT PERFORMANCE
1.
All the Council’s suppliers and contractors will be regularly monitored
to assess their compliance with pre-defined performance criteria
which is normally set out in the contract documentation.
2.
All Council departments are encouraged to hold regular review
meetings with suppliers and contractors to encourage close working
relationships and the resolution of potential performance issues.
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SECTION 13 : BUSINESS CONTINUITY PLANNING
1.
All the Council’s suppliers and contractors will be required to provide
evidence that they have a Business Continuity Plan and are in a
position to support the Council’s response to an emergency and
continue to be able to provide critical services in an emergency.
Contractors and suppliers will also be required to provide evidence
that they have adequate business continuity arrangements in place,
e.g. attendance of your staff on training courses/exercises.
2.
The Council will also put appropriate arrangements in place to
monitor the procedures which relevant contractors have put in place.
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SECTION 14 : COMPLAINTS PROCEDURE
1.
All Council or contractor complaints should be discussed and resolved
through the contract monitoring review process. However, if any
contractor or prospective supplier has a complaint about unfair
treatment or discrimination that cannot be resolved through normal
commercial contact with the Council, then the complaint can be
made in writing or online through Reading Borough Council’s Formal
Complaints Procedure. Further details can be obtained from
www.reading.gov.uk/complaints.asp.
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SECTION 15 : CURRENT COUNCIL CONTRACTS
1.
These details can now be found by visiting The South East Centre of
Excellence Business Portal at www.sece.gov.uk/businessportal. The
information contained in the Business Portal is regularly updated by
the Council.
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SECTION 16 : PAYMENT TERMS
1.
Suppliers and Contractors should note that Reading Borough Council’s
normal payment terms are 30 days from receipt of invoice, unless
there is a query which will not allow the invoice to be paid.
Payments are made via BACS.
2.
The Council will not accept liability for the payment of any invoice
for goods and/or services supplied against an order which has not
been properly authorised.
3.
Please note that all invoices sent to the Council should quote an
appropriate official order number – failure to quote this order number
may result in payment being delayed.
4.
Suppliers and contractors should ensure that all necessary details are
included on invoices, that they are correctly addressed and that any
change of name and address on their part is notified promptly to
Reading Borough Council.
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SECTION 17 : FURTHER INFORMATION
1.
If you require any further information regarding a specific tendering
opportunity please contact Reading Borough Council, Corporate
Procurement Unit on 0118 9390900.
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