Supplier guide. How to work for the city council of Leeds.

8/4/2019 Supplier guide. How to work for the city council of Leeds.

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Supplier Guide

How to work for the council



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Contact information

For enquiries regarding this guide pleasecontact:Catherine FarrellTelephone: (0113) 24 76972

Email: [email protected] Procurement Unit4th Floor WestCivic HallLeeds LS1 1UR

Website: www.leeds.gov.uk/procurement

This document can also be madeavailable in Braille, large print oraudio tape and on computer disc.Please telephone:

(0113) 24 76972.

If you do not speak English and need help in understanding this document,

please telephone the number below and give the name of your language. We willthen put you on hold while we contact an interpreter.

Bengali

Chinese / Cantonese

如你不懂說英語而需要協助以明白本文件，請致電下列電話號碼並說明你的母語。我們將會請你稍候以聯絡口譯員。

Hindi

Punjabi

Urdu

(0113) 24 76972



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Foreword

Welcome to this Supplier Guide.

The council is keen to develop how it works with current and potential

contractors and suppliers. This guide has been produced to draw together all theuseful information that will help you better understand what we do, why we workin the way we do and how you can do business with the council.

The different sections of this guide will help you:

• Learn about the council and what we are trying to achieve

• Understand the rules and regulations we follow• Understand the procurement process• Search for contracts appropriate to the size and nature of your business• Be prepared for tenders and able to provide the required information•

Become familiar with the language we use and understand what it means

The council is striving to achieve better value for money through improvedquality services, whilst operating on reduced budgets and trying to meetincreasing demand. In order to achieve ‘more for less’ we must work with ourcontractors and suppliers so you realise we have a changing agenda and are ableto adapt your approach to remain competitive. After all, it is our contractors andsuppliers that help us to realise our ambitions in delivering great services for thepeople of Leeds.

Thanks for your ongoing support.

Wayne Baxter

Chief Procurement OfficerNovember 2010



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Our Ambition:

“To be the best City Council in the UK”

Our Values:

Celebrating DiversityWe value and celebrate diversity and will tackle discrimination and deprivation.

We will improve the quality of life for everyone, especially to those with thegreatest needs, and will strive to ensure that everyone can fulfil their potential.

Engaging Citizens LocallyWe have a can-do attitude that puts the people of Leeds at the centre of all we

do. We are ambitious for the city and its people and will engage well withcommunities to understand and meet their needs and will empower people and

communities to do more for themselves.

Being Open and Honest

We are open, honest and respectful in the way we go about our business. Wevalue our colleagues and partners and foster positive, productive and open

relationships. Our decision making is timely, clear and safe and our policies andprocedures are modern, flexible and fit-for-purpose.

Working as a Team for LeedsThe city’s business is our business and we work well with others to plan for thefuture and deliver the best possible long-term results. We accept responsibility

and are held to account for what we do. We are a learning city and open tochallenge. We are all proud to be working for this great city, within an

important city-region, and we recognise the leadership role we and our partnersneed to play.

Spending Money WiselyWe spend public money wisely focussing our resources on priorities and providing

value for money. We maximise the efficiency and use of our assets and workwith others to create opportunities for delivering value for money. We are

flexible, responsive and creative and continually strive to be the best in all we do.We will celebrate our successes and achievements.



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Contents

About Leeds City Council

Procurement rules and regulations

The procurement process

How to search for contract opportunities

How to apply for a contract on SCMS

Electronic contracting

Electronic auctions

Tips on tendering

Tender evaluation and contract award

Orders, invoices and Purchasing Cards

Contract management

Complaints and whistleblowing

Further guidance and support

Glossary of terms

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About Leeds City Council

This guide has been written to help suppliers understand how to apply to workwith and do business with Leeds City Council. One of the council’s aims is toimprove the quality of services we deliver to the people of Leeds. Due to pressurefrom central government to operate more efficiently, we are having to find new

ways to deliver services with reduced budgets and increased demand for someservices. Essentially we have to deliver more, better quality services with lessmoney. As our suppliers help us deliver these services we are looking how theycan help us achieve these aims through their tender submissions.

The council provides a wide range of services to the communities across Leedsfrom street lighting, emptying bins, to providing care for people in residentialhomes. The council employs approximately 32,000 people across the city and isthe city’s largest employer. Annually, the council spends in excess of £400 millionon buying in goods, works and services. Smaller value contracts are generally

managed by the individual directorates and larger value contracts (above the EUthresholds) are generally managed by the Procurement Unit. Please refer topages 6 and 7 which provide a breakdown of spend by category and appropriatecontact information for officers managing those categories.

Whilst the council is operating in a period of uncertainty with the recent changeof government, there are some corporate objectives, in addition to the issuesalready mentioned, that the council will continue to deliver on. The council willsupport the local economy and local businesses where possible, whilst ensuring itcomplies with legislation. As an organisation we see great merit in working withall sectors including the private, public and Third Sector which helps ensure amixed economy of provision and will strive to continue to engage with all sectorsto ensure the best value for money providers are delivering council services. Thecouncil realises it has massive spending power and looks at ways to maximise onthis, creating additional benefits for local communities, the local economy andthe environment where possible. Where it is appropriate to do so, we may asksuppliers to offer community benefits as part of their tender submissions, such asapprenticeship programmes or work experience opportunities.

The new coalition government’s efficiency agenda means we will increasinglyhave to work collaboratively with other public sector organisations to achieve

better value for money contracts. Suppliers should be aware that over thecoming months there will be a step change in the number of collaborativecontracts we will be working on with other councils and partner organisationsacross the region and beyond. Aggregating demand in this way will result inlarger contracts. To prevent excluding smaller suppliers we urge them toreconsider their approach when applying for contracts and where appropriateform partnerships or consortiums with similar businesses to offer a morecompetitive submission and increase their chance of winning council business.



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Why work for the council?• The council is a long standing and stable organisation which pays suppliers in

good time. Usually this is within 30 days although suppliers who qualify forthe Small Supplier Scheme can receive payment within 20 days. (Please referto page 28 of the Glossary for further information about the scheme).

• All buying is done through fair and transparent procurement processes to

ensure the best deal. It is not down to ‘who you know’ as to whether you willbe successful. All suppliers are treated equally and assessed on the merits of their tender submissions.

• Working for Leeds City Council may provide relevant experience to thenenable suppliers to go on to work for other public sector organisations,providing a foothold into new markets.

• When working for the council, we clearly set down (usually in the form of acontract) what our expectations are on suppliers to ensure high standards of service.

• The council has terms and conditions of contract that are reasonable and

achievable.• Contract management will be undertaken in a proactive way to ensure that

the delivering of a contract is working satisfactorily for both the council andthe supplier.

• The council appreciates that suppliers often have useful and valid feedbackand suggestions that can improve the quality of our services. We areinterested to hear those ideas and incorporate them into our practices asappropriate. They can be provided through the website, Supplier andContract Management System and Supplier Survey which is undertakenevery second year. Contract specific feedback and suggestions can be fed

back to officers at any time either in writing or face to face.

What does the council look for in a supplier?• Ensure tender submissions address all essential criteria and follow a logical

format to assist officers in the assessment process.• The council is seeking to maximise value for money in contracts and expects

suppliers to submit highly competitive tender submissions that offercommunity benefits where appropriate.

• Fulfil all contract obligations.• Be open and honest where problems or issues are encountered to reduce the

impact they will have to the council and customer.• Develop positive relationships with officers when delivering council contracts.

• Be innovative and suggest new ways to deliver contracts more efficiently toimprove the outcomes for our customers.

• Be responsive and flexible to our requests where they are reasonable and inthe interests of our customers.

• Recognise we are working to serve the people of Leeds as best as possibleand treat customers receiving services fairly and respectfully.



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Procurement rules and regulations

The council’s rulesThe Contracts Procedure Rules1 are the council’s rules all officers have to followwhen undertaking procurement work and letting contracts. There are differentrules to follow depending on the estimated ‘whole life’ cost of each contract. This

means if the contract is estimated to cost £5,000 a year and will run for 3 yearsthe estimated whole life cost is £15,000.

Under £10,000Contracts under £10,000 are classed as ‘low value procurements’. If there is nointernal supplier able to do the work and there is no contract or frameworkagreement already in place, an Approved List should be used where one exists.Where an Approved List does not exist, officers are required to get 3 writtenquotations and ensure they represent value for money.

Between £10,000 and £100,000Contracts over £10,000 and up to £100,000 are classed as ‘Intermediate valueprocurements’. If there is no internal supplier able to do the work and there is nocontract or framework agreement already in place, an Approved List should beused where one exists. Where an Approved List does not exist, the contract mustbe advertised on the Supplier and Contract Management System (SCMS) - thisapplies to all procurements over £10,000. For further information on SCMSplease refer to page 13. The quotation documents will be available electronicallyand a minimum of 3 written quotations must be invited. Completed submissionsare to be returned to the council through the SCMS.

Over £100,000Contracts over £100,000, but under the EU thresholds, are classed as ‘high valueprocurements’. If there is no internal supplier able to do the work and there is nocontract or framework agreement already in place, an Approved List should beused where one exists. Where an Approved List does not exist, the contract mustgo through a formal procurement process. The contract will be advertisedthrough the SCMS and tender documents will be available electronically. Wherepossible a minimum of 4 written tenders must be invited and completedsubmissions are to be returned to the council through the SCMS.

The EU Public Contracts RegulationsIf the estimated value of a contract exceeds the EU thresholds it has to beprocured following the EU Regulations and the Council’s internal rules. Dependingon the type of contract, different thresholds apply:

Supplies Services Works

£156,442 £156,442 £3,927,260

The thresholds shown apply between January 2010 and December 2011. Afterthis time they are reviewed again and are subject to change.

1LCC Contracts Procedure Rules 27 May 2010

Figures are net of VAT



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The procurement process

There are a number of ways the council can procure goods, works and services:

The Open procedureThe contract is advertised and all interested suppliers can obtain tender

documents and submit a bid. All bids are evaluated against the set criteria.

The Restricted procedureThe contract is advertised and all interested suppliers complete a Pre-Qualification Questionnaire (PQQ). A PQQ is a questionnaire that enables officersto assess if suppliers are suitable to go forward to the tender stage. Theassessment usually involves looking at:• Financial information (including accounts and insurance)

• Technical ability and experience (including references)• Health and safety

• Equal opportunitiesThose suitable are then short-listed and invited to tender. This procedure is used

where a high volume of responses would be anticipated. The PQQ stage helps toeliminate unsuitable suppliers early in the process which reduces the amount of information they have to provide and time they have to invest in the contract.

The Competitive Dialogue procedureThe contract is advertised and all interested suppliers complete a PQQ. The PQQsare evaluated against set criteria and a shortlist of suitable suppliers is drawn up.Those short-listed enter into a dialogue with officers to develop solutions to meetthe council’s requirements and from which chosen bidders are invited to tender.

Approved ListsApproved Lists are maintained for various works and services that are commonrequirements for the council. Suppliers apply to go on specific Lists and gothrough a pre-approval process which checks basic company information. Oncethe checks are complete and satisfactory, suppliers become ‘approved’. Onceapproved, suppliers are called off in rotation. Usually 6 suppliers are invited totender for a contract. Once invited to tender, a supplier moves to the bottom of the List and it rotates so all get a chance of work. The more requirements thecouncil has, the quicker the list rotates. Sometimes when a supplier has

performed particularly well on a previous contract a department may requestthey are invited to tender by performance or special request, reducing thenumber of suppliers selected by rotation. It is worth bearing this in mind whendelivering a contract, good performance may generate another invitation totender. For further information please contact Lynda Hayes, Systems SupportOfficer, on telephone: (0113) 24 75977 or email: [email protected].

Framework agreementsFramework agreements are set up where the council has a requirement for agood or service on an ad-hoc basis, but can not commit to a certain level of

spend. It is set up through a formal procurement process and suppliers are readyto be called off as and when required, under the terms of the agreement.Specific purchases made under the agreement are called Framework contracts.



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How to search for contract opportunities

Supplier and Contract Management SystemThe Supplier and Contract Management System (SCMS) advertises quotationsand tenders across the Yorkshire and Humber region for the 22 councils, SouthYorkshire Fire & Rescue and Yorkshire Forward. The SCMS is a web-based system

which allows suppliers to update their profiles with their latest companyinformation. This information then enables officers to identify suitable suppliersto participate in procurements. A procurement exercise usually concludes withthe awarding of a contract which is then recorded on the system. Suppliers willbe most interested in the Bulletin Board which details forthcoming contractopportunities and contract award information so suppliers interested in sub-contracting work know who to approach.

Using this system makes working with the council easier because everything isavailable electronically on one website, all suppliers need is a computer and an

internet connection. The SCMS is free, secure and information is available toaccess 24 hours / 7 days a week. The benefit for suppliers is that tendering ispaper-less: you log onto the site, download the tender documents, completethem electronically, upload them back to the site and get an electronic receipt tosay they were successfully delivered. This way there is no need to waste paperprinting documents off, no postage or courier costs, and no parking fines or maddashes across Leeds to get tenders delivered on time! Log on tohttps://scms.alito.co.uk.

Please refer to pages 14 to 17 for instructions on how to register on the site, setup and maintain a supplier profile, search for a contract opportunity and tenderelectronically.

A helpdesk is available which provides support and advice to suppliers on usingthe site. Please telephone: (0113) 24 74001 or email: [email protected].

Local press and journalsIn addition to advertising our contracts through the SCMS we sometimes alsoadvertise in the local press and relevant trade journals that are appropriate tothe nature of the contract.

Tenders Electronic DailyThe Tenders Electronic Daily (TED) is the online version of the Supplement of theOfficial Journal of the European Union, advertising large value tenders above theEU thresholds (values detailed on page 10). Log on to http://ted.europa.eu.

Supply2gov The Supply2gov website advertises nationwide central government tenderstypically below £100,000 along with some councils and other public sectororganisations. Log on to www.supply2.gov.uk.



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How to apply for a contract on SCMS

Step 1: Registering on the site

1. If you would like to register on SCMS, log on to https://scms.alito.co.uk andclick ‘Suppliers/Contractors’.

2. You will see a section called New users, click ‘Register’.

3. On the Self Registration page you need to enter your organisation’s details.Where there is a star next to the box, that box must be completed in order toproceed. Once all information is entered, click ‘Register’.

4. A page may come up called Supplier Duplicate Selection – this is checkingyour organisation is not already registered on the site. Please check the listfor your organisation. If your organisation is not included in the list press

‘Continue’.

5. A page will come up stating if your registration has been successful.

If your application has been unsuccessful please call the Helpdesk for furtherassistance on telephone: (0113) 24 74001 or email: [email protected].

Assuming your application has been successful, a message appears to say anemail will be sent asking you to verify your account details.

6. Please now log on to your email account and click on the authentication linkin the email. This will take you back to SCMS and confirm you havesuccessfully authenticated your account. Click ‘Click here’ to return to theSCMS homepage then click ‘Log out’.

Step 2: Setting up and maintaining a supplier profile1. Log on to https://scms.alito.co.uk and click ‘Suppliers/Contractors’. On the

homepage you will see a section called Existing Users, enter your Usernameand Password and click ‘Login’.

2. A page will appear called Supplier Home Page. Click ‘Company Profile’. [Youneed to do this before expressing an interest in a tender].

3. On the start page click ‘General’. Please enter your organisation’s details.Where there is a star next to the box, that box must be completed in order toproceed. Select at least one Business Classification which matches the type of organisation you operate as. Once all information is entered, click ‘Next.

4. A page will appear called Users which shows who in your organisation hasaccess to SCMS. If you would like more than one member of staff to have

access to the site please click ‘Add’ and enter their details. Where there is astar next to the box, that box must be completed in order to proceed.Remember to press ‘Save’ once all information is entered. Click ‘Next’.



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5. A page will appear called Councils which shows the councils in the region youwish to offer goods or services to. Click ‘Add’ and tick the boxes of thecouncils you wish to work for. Once complete, click ‘Save’. The councils youspecified will be listed and the status shown will be pre-registered. Click ‘Next’.

6. A page will appear called Categories which shows the categories of goods orservices your organisation offers. Click ‘Add’ and enter key word searchesthat relate to the category of work you wish to apply for, for example ‘catering’ or ‘engineering’. If different categories exist that relate to your keyword search, a drop down list will appear where you need to tick thecategories that must apply to the goods or services you deliver. Press ‘Save’.If your organisation carries out different types of work press ‘Add’ again toadd other categories to your profile. One complete, click ‘Next’.

Click ‘Update’ if you wish to add further details of the specific type of work

you do, specify minimum contract value limits or provide reference details.Click ‘Next’.

7. A page will appear called Questionnaires which may be required to becompleted, depending on which categories have been applied for. If you needto complete a questionnaire it needs to be saved to your computer,completed and uploaded back to your profile. Click ‘Next’.

8. A page will appear called Other Documents where you may upload any usefuldocuments onto your profile, such as a company brochure. This is optional.To do this click ‘Add document’, enter the name of the document, browse tofind the location of the file on your computer and click ‘Attach’ then ‘Next’.

9. A page will appear called Finish where all you have to do is press ‘Finish’!This saves all the information provided and takes you back to the homepage,then click ‘Logout’.

To review or update your company profile:Log on to https://scms.alito.co.uk and click ‘Suppliers/Contractors’. On thehomepage you will see a section called Existing Users, enter your Username and

Password and click ‘Login’. On the Supplier Home page there are 3 links toCompany Profile, Bulletin Board and My Tenders. Click ‘Company Profile’ then youcan flick through the 6 sections detailed above to update and amend records aschanges occur and new information becomes available. Once changes have beenmade, go to Finish and you can tick the box of the section you have updated toinform us. If the organisation’s name has changed please contact the Helpdeskfor advice.

If you have any problems navigating the site or require assistance, the Helpdesk

will be able to offer support and advice. Please telephone: (0113) 24 74001 oremail: [email protected].



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Step 3: Looking for contract opportunitiesLog on to https://scms.alito.co.uk and click ‘Suppliers/Contractors’. You will see asection called Existing users, enter your Username and Password and click ‘Login’. A page will appear called Supplier Home Page. Click ‘Bulletin Board’.

Search Criteria:

• Key Word or Contract ID box – enter key words relating to the types of contracts you are interested in.

• Council box – search ‘All’ to look at all current opportunities or select one of the individual councils you specified you would like to work with in yourcompany profile.

• Current / Awarded box – search for contracts out to tender or those thathave already been awarded. Awarded contracts may be of interest if suppliers wish to find out who won a particular contract to approach them forsub-contracting work.

• Matching Categories box – broadens or narrows the search. It is best to

select ‘All’ from the drop down box.

The results will be displayed under the Search Criteria section. To find out moreabout a contract, click its title and SCMS will take you to the notice summarywhere further information will be displayed including submission deadlines. If youare able to register your interest in participating in the tender a ‘Register’ link willbe visible which you should click. This is only available for tenders being procuredunder the Open procedure.

Tip: Check the Users section on your company profile and ensure you are signedup to receive tender alerts and that your email address is correct. Contractopportunities that match the categories of work specified in your profile willautomatically be emailed to you as they are entered on to SCMS. This will saveyou time having to regularly check the Bulletin Board.

Step 4: Electronic TenderingOnce you have registered your interest in a tender:1. Follow the link from the homepage to My Tenders. All tenders you have

registered an interest in will automatically be moved from the Bulletin Boardto this section. It may be important to communicate this if other staff in your

organisation are helping out with the submission and are logging on to SCMSto find the tender information.

2. Click on the title of a tender and a tender summary will appear.

3. Click ‘View full notice including documentation’. This will take you to the fullnotice page. This page will include a description of the contract, the stage itis at in the procurement process and contact details of the contract managerto request further information.

4. Any documents the council has made available to you will be displayed underthe Documentation section for you to save to your computer. To save adocument click on the title of the document, click ‘save’, browse to find the



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location of where you wish to save the file on your computer and click ‘save’ again. Repeat this process until all documents have been saved, then logout.

Once the tender documents have been completed, they need uploading back onto SCMS. To do this:1. Log on and from the homepage go to My Tenders.

2. Click on the title of the tender, this takes you to the tender summary page.

3. Scroll down to the What next? Section and click ‘Submit documentation’.Click ‘Add’. Enter the name of the document you wish to submit, browse tofind the location of the file on your computer and click ‘Submit’. A messagewill appear to say the document has been successfully submitted. Click ‘Continue’ and you will then see the document has been uploaded.

4. Click ‘Return to Notice’. You will then be able to go through the same process

again to upload another document or change the document you have justsubmitted if required. Once complete, click ‘logout’.

From the tender summary page you can change the point of contact within yourorganisation for a particular contract. Also if you decide after reading the tenderdocuments that your organisation does not wish to submit a bid, you can declineinterest in the contract so the council knows you will not be tendering.

Electronic contracting

The council encourages suppliers to do business with the council electronically.This helps achieve efficiencies and reduces the environmental impacts throughreduced paper usage, postage and transportation costs.

Electronic tendering has been in place for a considerable time at Leeds and hasbeen a significant step towards electronic contracting. To contract in this wayrequires all tender documents to be created and transferred between partieselectronically.

The contract documents are transferred into an unchangeable format such as

PDF except the Form of Agreement which is a Word document. This is so partiescan add their electronic signatures to agree authenticity of the documents (it isacceptable to simply type signatures in). These are emailed to the supplier tosign and then emailed back to the council for us to also sign. Following this acomplete set of contract documents are burnt to non-rewriteable CD with a copyretained on file and a copy sent to the supplier.

For further information please contact Dean Backhouse, Procurement Governanceand Regulations Manager, on telephone: (0113) 224 3702 or email:[email protected].



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Electronic auctions

What are they and how do they work?Electronic auctions (e-auctions) work on the same principle as traditionalauctions in that bidders are aware of how competitive their bid is and can adjusttheir bid accordingly. They are run online for specific periods of time - this could

be for one hour or one day depending on the contract. They are sometimes calledreverse auctions as prices start high (usually at the current rate paid for a goodor service) and are then reduced through the bidding process. E-auctions areusually conducted on price with bidders having passed pre-determined qualitythresholds. Where there are qualitative aspects to a contract, these are factoredin before contract award.

Why is the council using e-auctions?The council has started to hold e-auctions as a way of generating savings. Anumber have been held to date, with more planned in the future. We have found

significant savings are achievable which are demonstrated in the price the e-auction starts at to where it finishes at. The result is we pay a reduced price forgoods and services which deliver better value for money.

What types of contracts are e-auctions used for?

E-auctions are typically used on goods and services contracts such as:• Utilities, for example electricity supply• Equipment, for example photocopiers• Routine commodities, for example stationery• IT equipment and services, for example computers

The council has undertaken e-auctions for the following contracts:

• Supply of Wheelie bins, in collaboration with Warrington Borough Council• Passenger Transport Services

Suppliers are provided with training and aresupported throughout the process should theyencounter any difficulties. They can participatefrom any location, all that is needed is acomputer and an internet connection.Suppliers can see as competitors place

anonymous bids and are able to submitmultiple bids against them. At the end of theprocess suppliers will have an indication of their ranking so will know whether they have achance of winning the contract. Thetransparency of the process and feedback canalso help suppliers better understand theirmarket and ensure they remain competitive.



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Supplier feedback from these e-auctions was positive:• “Overall the service was good, in particular the live assistance during the

auction and the general communications between the e-auction providerand the bidders”

• “Very professionally done and well handled” • “The e-auction provider staff were very patient and helpful, for that I am

very grateful”

Overall suppliers thought the process was straight forward and found the siteeasy to use. Assistance is available throughout the process should a supplierhave any technical issues.

How are e-auctions included in the procurement process?Usually an e-auction takes place as part of the restricted procedure. Supplierscomplete a PQQ and those that meet the criteria are invited to tender. The e-auction is part of the tender and assists in the pricing process. Where quality is

part of the evaluation criteria, suppliers will need to submit the required qualityinformation, in addition to participating in the e-auction. E-auctions can be run indifferent ways and sometimes the quality aspect of tenders is evaluated beforethe e-auction takes place. In these situations the council can set up a formula sowhen suppliers enter their prices in the e-auction the bid submitted reflects boththe quality and price aspects. In other cases quality is evaluated after the e-auction has closed and the e-auction only reflects the price aspect. In each casethe tender advertisement and tender documents will outline at the start of theprocess how the procurement and e-auction will be undertaken.

Is training available when participating in an e-auction?Yes, training will be made available for suppliers who have been invited totender. This will ensure suppliers are confident in using the system and will allowthem an opportunity to ask questions and test the site. Details of a trainingsession or briefing event will be included in the tender documents.

Tips on participating in an e-auction:• Attend the training session or briefing to understand how to participate in

an e-auction and test the site• Read the tender documents carefully in advance of the e-auction• Make sure you have got all relevant information together and are ready for

when the e-auction starts, such as the web address for the e-auction siteand password to log on and submit a bid

• Have a lowest price offer in mind and stick to it

For further information on e-auctions please contact Iain Dunn, StrategicCategory Manager, on telephone: (0113) 24 76671 or email:[email protected].



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Tips on tendering

• When you receive an invitation to tender read the documents carefully tocheck you are capable of delivering the contract before completing thepaperwork.

• If you have questions about the documents ask the officer managing thecontract and allow them enough time to reply.

• Once you know a tender return date, plan in advance when you will startcompleting the paperwork. Don’t leave it until the last minute. A well plannedsubmission reduces the chance of mistakes being made and helps ensureyour bid is the best it can be.

• Consider collaborating with similar businesses if the contract is larger thanyou would normally tender for, it may increase your chances of success.

• Answer all the questions clearly and provide all the requested information.Use the evaluation criteria provided to check you have covered all relevantpoints in your submission. If you can not provide some of the requestedinformation, check whether the tender will be accepted before you investtime and resource in completing the paperwork.

• Do not include un-necessary literature and brochures that are not requested.

• Focus on the unique selling points of your organisation and make sure theyare clearly evidenced in your tender. Don’t assume we already know.

• Cost the tender as accurately as possible and state any assumptions made toyour pricing model.

• For some contracts, an Open Day or Question and Answer session may beheld for potential bidders to go along, ask questions and see the site wherethey may be working. It is useful to attend these events to learn more aboutthe contract requirements to inform your bid.

• Check where your completed tender needs returning to. If you are uploading

your submission onto the SCMS have a practice with the demonstrationtender on the site before the return date so you understand how to do this.

• Ensure you meet the deadlines – extensions will not be granted and it isimportant to give a good impression of your organisation.

• Once the tender return date has passed try and be patient in waiting to hearif your tender has been successful, this sometimes takes a little time.

• When the council announces the tenders have been evaluated and the

contract is ready to award it is important to ask for feedback on yoursubmission, whether you are successful or not. This will help you understandwhat you did well and what you can improve on next time.



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Tender evaluation and contract award

The tender evaluation process is as follows:

1. Tenders are opened at an agreed time and date, after the submissiondeadline.

2. Tenders are evaluated against the pre-determined, published evaluationcriteria. The evaluation looks at how the supplier proposes to deliver thegoods, works or services (quality) and the cost (price). The balance of qualityand price will depend on the nature of the contract. The evaluation team arelooking to find the best combination of both, known as the ‘mosteconomically advantageous tender’. In addition to a written submission,suppliers may also be asked to hold a site visit or deliver a presentation. If this is the case, suppliers will be told at the start of the tendering process.

3.

Clarifications are made where necessary. Suppliers should respond quicklyand professionally to these.

4. A written intention to award letter is sent out to all tenderers involved in theprocess, informing them if they have been successful. This will detail:• Award criteria• Score of tenderer against evaluation criteria (as appropriate)• Score of successful tenderer (as appropriate)• Name of successful tenderer

• How to request feedback

5. For contracts subject to the EU Directives, the Alcatel ‘standstill’ processstarts, allowing 10 calendar days for unsuccessful tenderers to requestfeedback on their bid or request further information, before the council entersinto the contract.

6. The contract is awarded to the successful tenderer on the basis of whichsupplier best meets the evaluation criteria. Contract award information ispublished on the SCMS (and in OJEU where the contract is subject to the EUDirectives).

7. Tenderers who did not request accelerated feedback on their bid under theAlcatel ‘standstill’ still have the opportunity to request this information aftercontract award. All tenderers may request feedback on their bid, even if theAlcatel ‘standstill’ period did not apply.



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Alcatel case lawThe Alcatel case from 1998 means that EU Member states must allow a minimumof 10 calendar days between issuing written notification to tenderers of an awarddecision and entering into contract with the successful tenderer (this only appliesto contracts subject to the EU Directives). This provides an opportunity forunsuccessful tenderers to appeal against contract award decisions. Where a

supplier feels they have grounds to do so, the ‘standstill’ period will allow themtime to take action in the courts to temporarily suspend the contract award. The ‘standstill’ period will be extended around bank holidays as appropriate.

Freedom of Information Act 2000The Act allows members of the public to request certain types of recordedinformation held by the council that may be of interest to them. There are someexceptions where information does not have to be provided, such as commercialsensitivity.

When an information request is received, the council will look at the request anddecide if it is valid or falls under the exceptions. Where the request is valid, theinformation must be provided in 20 working days.

For further information on Alcatel or the Freedom of Information Act pleasecontact Dean Backhouse, Procurement Governance and Regulations Manager, ontelephone: (0113) 224 3702 or email: [email protected].

The contract documentsFollowing contract award, the council will draw up a contract which both thesuccessful supplier and council will sign. We would ask suppliers to sign andreturn issued contracts to the council as soon as possible.

The contract should, as a minimum, include:• Specification / project brief - This sets out what will be delivered under the

contract and outlines policies, procedures and guidelines that need to befollowed. Performance standards will be included as part of the specificationalongside the expected outcomes.

• Terms and conditions – This sets out how the council is letting the contract,

the rules that suppliers must follow and how the relationship between counciland supplier will work during the life of the contract.

• Form of Tender – By signing this suppliers are agreeing to the council’s termsand conditions of contract.

• Pricing document / schedule of rates – This sets out the prices that will bepaid by the council for goods, works or services delivered as part of thecontract.

• Declaration of Non-collusive tendering – By signing this declaration suppliersare agreeing to submit a bona fide tender that is competitive and has notbeen fixed or adjusted in association with any other person or organisation.

Any document that forms part of a tender submission may be included in thecontract as the council sees appropriate, for example method statements.



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Further guidance and support

If you are interested in learning more about tendering and how the councilundertakes procurement please log on to www.leeds.gov.uk/procurement whereyou will find other useful guidance documents and resources. The News & Eventspage may be of particular interest which includes supplier newsletters and an

events calendar to keep suppliers updated on council policies, new ways of working and forthcoming events we are participating in.

For further information contact:Procurement UnitLeeds City Council4th Floor West, Civic HallLeedsLS1 1URTelephone: (0113) 24 74007

Email: [email protected]

Business LinkBusiness Link is a business support organisation that provides support andguidance to businesses. They offer advice such as what to include in your tender,how to present your business and how to successfully win a tender at the rightprice for you and the buyer.Log onto: www.businesslink.gov.uk/yorkshire and click: Sales & Marketing –>Selling –> Tender for a contractTelephone: 0845 6 048 048

Enterprise Europe NetworkEnterprise Europe Yorkshire helps small and medium sized businesses get theinformation and advice they need to compete effectively in the UK and Europe.The network works closely with Business Link and other business supportorganisations providing advice on how to access contract opportunities, how totender successfully and information on EU legislation.Log onto: www.ee-yorkshire.com/yf/ Telephone: 0800 052 8156

Federation of Small Businesses

The FSB is a pressure group that promotes and protects the interests of the self employed and owners of small businesses. Log onto: www.fsb.org.uk/west-yorkshire Telephone: (0113) 232 0418 (Mike Rose, Leeds Branch Secretary)

Social Enterprise Support CentreThe Social Enterprise Support Centre provides support to the social enterprisesector on business planning, market development, tendering for contracts,marketing, sales and branding.Log onto: www.sesc.org.uk

Telephone: 0845 257 8027



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Glossary

Aggregating demand - the total requirement for goods or services. Bringingrequirements together means the council can get a better deal from suppliers asthe size of the contract is larger. However this may mean small suppliers do nothave the capacity to apply for work. By law, councils are not able to disaggregate

demand (break requirements up into smaller contracts) so we ask suppliers towork together to be able to compete against larger suppliers.

Approved List – Lists for certain categories of works and services that arecommon requirements for the council, where pre-approved suppliers are invitedto tender on a rotational basis. For more information please refer to page 11.

Collaborative contract – Where two or more councils or partner organisationshave similar requirements they may decide to work together and undertake acollaborative procurement. This means demand is aggregated and requirements

are all advertised together as one. This approach maximises purchasing powerwhich should result in tenders being more competitive and a better value formoney contract. The successful supplier will sign a contract which states they areproviding goods, works or services to all those listed on the agreement.

Community benefits – In some contracts we ask suppliers to offer communitybenefits or ‘added value’, in additional to meeting the basic contractrequirements. It is only possible to include community benefits in contractswhere they relate to the nature of the contract. This creates additional benefitsfor local communities, the local economy and the environment which helps thecouncil meet its wider social objectives. A few examples of community benefitsare given on page 5.

Contract – A binding agreement between two parties, enforceable by law.

Consortium – Two or more individuals or businesses work together to submit a joint tender, pooling resources as needed, to enable them to submit acompetitive bid and win the council contract.

Customer – An individual, group or local community receiving goods, works orservices from the council to meet a specific set of needs.

Efficiency – Buying the same product or achieving the same level of service(output) for less cost. This means less funding is required to buy the product orrun the service and the customer does not see the difference.

Evaluation criteria – the assessment method used to determine which supplieris most suitable to provide the goods, works or services. This is published withthe contract advertisement and in the tender documents. Suppliers should usethis as the basis of their tender submission, ensuring each aspect is responded toin the specified way.

Goods – Supplies, either purchased or hired.



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Mixed economy of provision – Goods, works and services are provided to thecouncil from all different sectors including public organisations, Third Sectororganisations and private sector businesses.

Procurement – The process of acquiring goods, works and services to meet aspecific requirement. The process starts by identifying a need and ends with the

contract being fulfilled.

Quotation – A written offer given by a supplier to provide goods, works orservices to the council, up to the value of £100,000. This will include a price andmay also include some quality aspects.

Services – Services provided to the council by an internal or external serviceprovider, this could be an individual or organisation.

Small Supplier Scheme – The scheme has been set up by the council in

response to the economic climate to ensure small suppliers are paid promptly.Usually our terms and conditions of contract state invoices will be paid in 30days, however if suppliers apply to the scheme and qualify they can get invoicespaid in 20 days. The criteria to qualify for prompter payment is: 1) the businessemploys less than 50 members of staff, and 2) has a turnover less than £10million. For further information log on to: www.leeds.gov.uk/procurement.

Sub-contractor – A contractor who works for another contractor to deliver partof a contract on their behalf. For example, a large contractor may win a contractto build a school. They may then employ other contractors to do specificelements of the work such as plumbing and roofing.

Supplier and Contract Management System (SCMS) – A web based systemthat is used by councils in the Yorkshire and Humber region to undertake aspectsof the procurement process. Contract opportunities are advertised on the site andcontract award information is added to enable sub-contracting opportunities to befound. Suppliers can use the site to register for council work and tenderelectronically by uploading and downloading documents. https://scms.alito.co.uk.

Tender – An official written offer to provide goods, works or services to thecouncil, over the value of £100,000. This will include a price and may also include

some quality aspects. Tenders are part of the formal procurement process and assuch have to be returned by a given time and date to a given address.

Third Sector – A term used to describe non-governmental organisations whichare value driven and work to further social, environmental and culturalobjectives. Sometimes the Third Sector is referred to as Civil Society.

Value for money – The provision of goods, works and services at the best price(lowest whole life cost) and desired quality (fit for purpose and meetsspecification).



Whole life cost – The whole life cost of an asset is the total cost of using theasset over its lifetime. If an asset costs £5,000 a year to maintain and use and itis anticipated it will last for 3 years then the estimated whole life cost is £15,000.Where there is a cost associated with disposing of the asset at the end of itslifetime then this also needs factoring in to the whole life cost.

Works – Building, construction and engineering related work.

The information in this Supplier Guide aims to help suppliers understand moreabout procurement and how to get involved in working for the council. It is to be

Supplier guide. How to work for the city council of Leeds.

Documents

Transcript of Supplier guide. How to work for the city council of Leeds.