Tendering is the formal competitive bidding process where suppliers compete under strict rules for contracts. The procedure is used to ensure competition, openness, fairness and accountability.
Financial Thresholds
When we need to purchase goods, works or services, we have a set of rules governing how we go about it. It’s generally to do with the value of the contract as follows:
| Goods, services and works up to £1,000 |
- We obtain a verbal quotation prior to issue of Purchase Order/Contract.
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| Goods, services and works from £1,000 up to £10,000 |
- If there is an existing framework agreement council contract (e.g. stationery or IT purchasing), or approved list available, we use it. These contractors are pre-approved and competitive.
- If not, we must obtain at least three quotation.
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| Goods, services and works from £10,000 up to £20,000 |
- If there is an existing framework agreement council contract (e.g. stationery or IT purchasing), or approved list available, we use it. These contractors are pre-approved and competitive.
- Normally at least three written competitive quotes should be obtained and the contract awarded to the Most Economically Advantageous Tender (MEAT) taking into account quality and performance as well as cost.
- The use of formal RFQ (Request for Quotation) documents is not mandatory, but the quotes need to be in writing.
- The contract must be advertised on the council’s tender advertising portal.
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| Goods, services and works between £20,000 and £75,000 |
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| Goods, services and works between £75,000 and the EU threshold |
- A formal tender will be run. Typically at least three companies must be invited to tender whether shortlisted after a PQQ (Pre-Qualification Questionnaire), or directly invited to tender (ITT stage). At least three tenders must be received for evaluation.
- The contract must be advertised on the council’s tender advertising portal.
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| Goods, services and works over the EU threshold |
- The contract is advertised on the council’s tender advertising portal.
- The contract notice must be published in the Official Journal of the European Union. Minimum time periods are set for all stages of the tender, to ensure that all interested parties have time to prepare submissions. The open tender procedure (all interested companies may tender), the restricted (via a PQQ) or the competitive dialogue procedure (exceptionally) may be used.
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Tendering Procedures
There are three of the main types of tenders:
Open Tender
An Open Tender is an EU (European Union) tender procedure with only one stage because it requires no use of a selection stage. There is no opportunity to short list suppliers using this approach. All suppliers responding to an Open Tender are provided with the tender documents (ITT - Invitation to Tender) to complete and return.
Restricted Tender
A Restricted Tender is an EU tender procedure with two stages. Suppliers who express an interest in the contract are sent a Pre-Qualification Questionnaire (PQQ). If they meet the criteria, they are then shortlisted and invited to tender (ITT stage).
Competitive Dialogue
The EU directives introduced a new procedure, the Competitive Dialogue. It specifically permits dialogue between the contracting authority and contractors during the stages of the procurement process.
This new procedure is aimed at large, complex contracts. It enables contracting authorities to develop specifications with the input of contractors, and to assist contractors in developing tenders that are responsive to the specifications.
Timescales
The EU Procurement rules set out specific procedures which may be used for contracting and subsequent timescales which may be applied. These timescales are minimum and may be extended by the authority at its discretion.
eTendering
The Council’s Procurement team actively use eProcurement tools and encourages eProcurement within the Council. As well as offering small reductions to EU tender timescales, such tools can also reduce administrative tasks and offer greater transparency and audit to the process. Tools range from online tendering of goods, works and services, advertising EU notices electronically to e-auctions.
Suppliers can tender for current contract opportunities by visiting our eTendering system website. Please note that you will need to register on this website in order to view those opportunities.
Please find below a user guide for the eTendering system:
Evaluation
Some tenders are selected by price, although normally we consider quality and timescales too. We generally select the 'most economically advantageous tender' - the best tender in terms of 'price' and 'non-price' items.
We normally let you know how important price is in relation to other factors.
Feedback
We will write to you, to let you know if your bid was successful or not.
Every contract is different, but generally more complex contracts, with greater risk, will see more post-tender work.
We will ensure that for the contracts let in accordance with the EU Procurement Directives, the procedures in relation to the "10-day-standstill" period will be complied with. You are entitled to ask us for feedback during that period.
We will provide frank and helpful information. However, we can withhold information which is commercially sensitive or contrary to public interest. We will act in accordance with the Freedom of Information Act.