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Tenders and Contracts Regulations 2019
These Regulations form part 4.I of the Constitution and were adopted by Full Council on 15 July 2019
TENDERS AND CONTR ACTS REGUL ATIONS 2019 2
ContentsBackground 3
Section 1 – General 4
1. TheLegislationGoverningtheseRules................................................ 4
2. GlossaryofTermsisprovidedatAppendixA..................................... 4
3. ApplicationoftheRegulations............................................................. 4
4. OfficerResponsibilities......................................................................... 4
5. DirectorResponsibilities...................................................................... 5
6. DeclarationofInterest......................................................................... 6
Section 2 – Make or Buy 7
7. PreProcurement................................................................................... 7
Section 3 – How we Buy - Approach and Principles 8
8. HowweBuy.......................................................................................... 8
9. E-procurementanduseofE-sourcing(tendering)............................... 8
10. ContractValue,AggregationandexistingCouncilContracts................................................................................. 8
11. ProceduresandApprovalProcessfortheCouncil’sTenderingandRequestforQuotationActivitiesforLowValueandFormalTendering.................................................................................. 9
12. PreTenderMarketConsultation....................................................... 10
13. LondonLivingWage........................................................................... 10
14. ThePublicServices(SocialValue)Act............................................... 10
15.NominatedorNamedSub-contractorsandSuppliers........................ 10
16.Collaboration...................................................................................... 11
17.ProvisionofServicesandWorksforOtherOrganisations............... 11
18. TenderingwithorthroughotherPublicBodies................................. 11
19. WaiversandEmergencies................................................................... 11
20.PreparationofaSpecification............................................................ 12
21.AdvertisingandtheNumberofTenders............................................ 12
22.StandardsandEvaluationCriteria..................................................... 13
23.StandardContractClauses................................................................ 13
24. FormofContractforallAwards........................................................ 16
25.InvitationstoTenderandQuotations/TenderingInstructions.......... 16
26. Submission,ReceiptandOpeningofTenders/Quotations................ 17
27.PostSQandTenderClarifications..................................................... 17
Section 4 - Contract Award 19
28.ContractAward................................................................................... 19
29.ContractPre-conditionsandPreliminaries........................................ 20
30. ExtrasandVariations.......................................................................... 20
Section 5 –Contract Mobilisation 21
31.TenderRecords................................................................................... 21
32.ContractsRegister............................................................................... 21
33.ContractStorage................................................................................ 21
Section 6 - Contract Management 22
34.ManagingContracts........................................................................... 22
35.RiskAssessment&ContingencyPlanning.......................................... 22
36.ContractMonitoring,Evaluation&Review....................................... 22
Appendices 23
AppendixAGlossary................................................................................ 23
AppendixBProcurementProcessFlowchart........................................... 28
TENDERS AND CONTR ACTS REGUL ATIONS 2019 3
https://www.croydon.gov.uk/sites/default/files/articles/downloads/Corporate%20Plan%202018-22.pdf
The Council’s Commissioning Framework principles which these regulations support are outlined below:
Ethical And Sustainable Commissioning
Wewillembedethicalandsustainableprocurementconsiderationsinallaspectsofcommissioningpractice.WewillusetheCouncil’spurchasingpowertomaximisesocialvalue,fosteringlocalemployment,promotingfairpay,encouraginglocalbusinessgrowthandsupportingcommunitypriorities.
Principles
Evidencebased
Preventative Localitybased CollaborationsandPartnerships
ResidentFocused
DeliveringOutcomes
Wewillusedataandinsightsatthelocalityleveltogetherwithserviceuserinputtoinformrobustdecisionsthataidourcommissioningandprocurementpractices.
Wewillfocusonapreventativeapproach,inpartnershipwithourcommunities,businessesandresidents,enablingempowermentandself-resilience.
Wewilltakealocalitybasedcommissioningapproach,whichtakesaccountoftheexistingstrengths,skillsandresourcestoensurethatinvestmentdecisionssupportcommunityempowerment.
Wewillcollaborateorworkjointlywithotherorganisationstoensureimprovedoutcomesandvalueformoneyforourresidents.
Wewillputourresidentsatthecenterofourcommisioningapproach.Wewillinvolvecustomersandserviceusersintheco-productionofservices.
Wewillcommissionforsustainableandeffectiveoutcomesthatdeliverbeyondserviceandorganisationalstructures.
Theprinciplesoftheseregulationsare:
• toachievegoodvalueformoneyanddeliversocialvaluewhereverpossible;
• todeliveracompetitiveprocess;ensuringthereisnodiscrimination,withfairandtransparentprocedures,andequaltreatmentofallpotentialsuppliers;
• toencourageandensurecontinuousimprovementinthedeliveryofCouncilservicesthroughtheapplicationofvalueformoneyprinciples;
• toincorporateeffectiveandbestpracticeprocedures;
• topublishclearandunderstandablerules;
• tominimiserisksandtoprotecttheCouncil’sinterestsandreputation;
• toensurecontrolsandaccountability,andalwaystoactwithinthelaw;
• tomaintainanauditabletrailofalltenderactivity;
• toberesponsivetoanyweaknessesidentifiedbyinternal/externalaudit;
• toensurethatregulationsreflectthecurrentprocurementenvironment;
• toeffectivelysupportthedeliveryofdirectservices;
• tohaveregulationswithwhicheveryonecomplies.
TheseTendersandContractsRegulationsaredesignedtoachievethesekeycommissioningandprocurementprinciples.
TheseRegulationsarealsothebestdefenceagainstallegationsthatapurchasehasbeenmadeunfairly,incorrectlyorfraudulently.AllthoseinvolvedinthecommissioningandprocurementprocessmustcomplywiththeseRegulations.Failuretodosomayleadtodisciplinaryactionbeingtaken.
Background
TheseTendersandContractsRegulationsaredesignedtoensurethatallContractscoveredbytheseRegulationswillbecosteffectiveandmeettheprioritiesofourCorporatePlan,linkbelow:
TENDERS AND CONTR ACTS REGUL ATIONS 2019 4
1. The Legislation Governing these Rules
1.1 TheseRegulationsaremadeunderSection135oftheLocalGovernmentAct1972andanysubsequentqualifyingoramendinglegislation.UndertheLocalGovernmentAct2000themakingandamendingoftheseRegulationsandtheapprovalofanyexceptionstothemarepartoftheCouncil’snon-executivefunctions.
1.2 TheseRegulationsarepartoftheCouncil’sConstitutionandgovernallrelevantContractsincludingthosefundedbywayofgrant.
1.3 TheEURulesandnationallegislationandrelatedPublicContractsRegulations(PCR)2015&ConcessionsContractsRegulations(CCR)2016,whichaffectscontractsundertheseRegulations,takesprecedence.
1.4 TheseRegulationsaresubjecttoanygeneralwaiversagreedorprovidedforbytheseRegulationse.g.Regulation19.
1.5 AnyoneoperatingtheseRegulationsmustalsofollowtheCouncil’sFinancialRegulations.
1.6 TheseRegulationssupportthePublicServices(SocialValue)Act2012andasamended,whichallowforspecificnon-commercialconsiderationstobetakenintoaccountincontractingdecisions.
2. Glossary of Terms is provided at Appendix A
3. Application of the Regulations
3.1 TheseRegulationsapplyiftheCouncilintendstoenterintoacontracteitherasapurchaserorasaproviderwithanotherentity.
3.2 IfaContractinvolvesgeneratingincomeforeithertheCounciloraprovider,theOfficerresponsiblemustmakeanestimateofthenotionalvalueofthecontractandusetheseRegulationsifthevalueisestimatedtobe£100,000ormore.
3.3 TheseregulationsapplytoallContractsexceptforthefollowingtypesofContracts:
a) ContractsofemploymentwhichmakeanindividualadirectemployeeoftheAuthority;
b) Fines;
c) Paymentoftaxes;
d) SituationswheretheCouncilcarriesoutworkbyarrangementwiththeownerofanypropertybutinexerciseoftheCouncil’sstatutorydefaultpowers;
e) Agreementsdirectlyassociatedwiththeacquisition,disposal,ortransferofassetsorland(towhichtheFinancialRegulationsshallapply).
f) GrantsthattheCouncilisapplyingfororissuing.
4. Officer Responsibilities
4.1 Officersinvolvedinthecommissioningandprocurementprocessmustcomplywith:
• TheseRegulations;
• AllUKandEuropeanUnionbindinglegalrequirements;
• TheCouncil’sFinancialRegulations;
• TheCouncil’sStaffCodeofConduct;
• TheCouncil’sGifts&HospitalityProcedures;
• TheAnti-Briberypolicy;
• Declareanyconflictsofinterest;
• TheCouncil’sSchemeofDelegation;
Officersmustensurethatanyagents,consultantsandcontractualpartnersactingontheirbehalfalsocomplythroughrelevantprovisioninthecontractofengagementorothersuitablemeans.Anyarrangements,whichmight,inthelongterm,preventtheeffectiveoperationoffaircompetition,mustbeavoided.
4.2 Officersmust:
a. Haveproperregardforallnecessarylegal,financialandprofessionaladvice;
b. EnsurecompliancewiththeCouncil’spolicyandproceduresforexample EqualitiesandDiversity,Safeguarding,ICT,Council’sITSecurity,Data
ProtectionandSocialValue;
Section 1 – General
TENDERS AND CONTR ACTS REGUL ATIONS 2019 5
c. Declareanypersonalfinancialinterestinacontract.Corruptionisacriminaloffence;
d. Reportanyoffersofbribes,inducementsorgifts&hospitality;
e. Conductarelevantvalueformoneyreview;
f. Ensurethatthereisadequatebudgetprovisionfortheprocurementbeingundertaken;
g. Checkwhetherthereisanexistingcontractthatcanbeusedbeforeundergoingacompetitiveprocess;
h. NotdivideupanycontractinordertoavoidanyrulessetoutintheseRegulations;
i. ReceiveapprovalfortheRP2HowweBuyreport(procurement/commissioningstrategy)beforeadvertisingthecontractingopportunityorinvitinganytendersforarelevantContract;
j. Allowsufficienttimeforthesubmissionofbids;
k. Keepallsupplierbidsconfidential;
l. Keeprecordsofalldealingswithsuppliers;
m. ObtainallrequiredapprovalsatthecorrectpointintheprocurementprocessasadvisedbytheseRegulationsandcompleteawrittencontract(signedand/orsealed,asrequired)beforeplacinganorderorraisingapurchaseorderforanysupplies,servicesorworks;
n. Whereappropriatedon’tawardacontractuntiltheStandstillperiodisover;
o. EnterallpurchaseorderinformationontotheCouncil’sfinancialsystempriortoanygoodsorservicesbeingprovided.Raisingpurchaseorders,andanypermittedexceptions,mustbeconductedinaccordancewiththeCouncil’sP2PGuidancedocumentation;
p. Identifyanappropriateseniormanagerwiththerelevantdelegation,whoisthedesignatedcontractownerresponsiblefortherelationshipwiththesupplier.Inaddition,acontractmanagerwithresponsibilityfordaytodayissuesandensuringthecontractdeliversasintendedmustalsobeappointed;
q. ThecontractmanagershouldensurethesafekeepingofcontractdocumentationinlinewithCroydon’sdocumentretentionpolicyanduploadedontotheCouncil’scontractmanagementsystem;
r. Throughout,ensurethattheprocurementexercisedeliversagainsttheCouncil’sCommissioningFrameworkandsupportsthedeliveryoftheCorporatePlanPriorities.
4.3 WhenanyemployeeeitheroftheCouncilorofaserviceprovidermaybeaffectedbyanytransferarrangement,OfficersmustensurethattheTransferofUndertaking(ProtectionofEmployment2006Regulations(amended2014))TUPEisconsideredalongwithanyissuesrelatedtoemployee’smembershipoftheLGPS,andTeachersPensionScheme.AdviceandguidanceonTUPEmustbesoughtatanearlystagefromtherelevantdepartmentalHRLead.ThePensionsteammustalsobenotifiedasearlyaspossiblesothattheimplicationsrelatingtopensionsmaybeconsidered.
5. Director Responsibilities
5.1 Directorsmust:
a. EnsurethattheseRegulationsarefollowedandenforcedwithintheirareasofresponsibility;
b. Makethestaffawareoftherequirementsoftheseregulations;
c. Declareanypersonalfinancialinterestinacontract.Corruptionisacriminaloffence;
d. Reportanyoffersofbribes,inducementsorgifts&hospitality;
e. ForContractsover£100,000ensuretherelevantCabinetMember(s)andtheCCBareawareofcommissioningintentionsandareadvisedinadvanceofthepurposeofanyContractthatfallswithintheseRegulations,includingthecommissioningand/ortenderingprocesstobefollowedtosecuretheContractandofanyanticipatedissuesfortheprocess,withparticularregardtoanyserviceimplicationsarising;
f. ConsideranyadvicegivenbyCCB;
g. Monitorcomplianceandinvestigateanynon-compliancewiththeregulationsandreportanyfindingstotheDirectorofcommissioningandProcurementasChairofthecontractsandCommissioningBoard;
h. EnsurethatanythirdpartyparticipatingintheprocurementorsupervisingaCouncilContractagrees,inwriting,tocomplywiththeseRegulationsasiftheywereOfficersoftheCouncil;
Section 1 – General (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 6
i. Approvetheawardandspendofwrittenquotationsunder£100,000inconsultationwiththeCentralBuyingTeam,andinaccordancewithRegulation11toensurevalueformoney.
j. EnsuretheircontractmanagershavekeptcontractdocumentationinlinewithCroydon’sdocumentretentionpolicyanduploadedontotheCouncil’scontractmanagementsystem.
5.2 AdviceandguidanceonTUPEmustbesoughtatanearlystagefromtherelevantdepartmentalHRLead.ThePensionsteammustalsobenotifiedasearlyaspossiblesothattheimplicationsrelatingtopensionsmaybeconsidered.
6. Declaration of Interest:
6.1 AnyOfficermustdeclaretotheirDirectororExecutiveDirectoranypersonalinterestinamattertheyaredealingwith,includingone,whichmayimpingeontheirimpartialitytoapplytheseRegulations.
6.2 NoMember,OfficeroragentoftheCouncilshallimproperlyusehisorherpositiontoobtainanypersonalorprivatebenefitfromanycontractenteredintobytheCouncil.
6.3 ItisarequirementthatallofficersandexternaladvisorscompletetheDeclarationofConfidentialityandInterestFormandcomplywiththeCouncil’sCodeofConductpriortoanyinvolvementindraftingofCouncil’sTenderDocuments,Quotationsoranyinvolvementinevaluationoftendersandthemanagementofthecontract.ThisistoensurethattheCouncil’sproceduresincludingconfidentialityarecompliedwithinaccordancewiththeseRegulations.
6.4 Intheeventthataconflictofinterestarisesduringthelifeofthecontract,allCouncilofficersmustnotifytheirDirectororExecutiveDirector,inwriting,assoonasisreasonablypracticable.Thisnotonlyincludespersonalconflicts,butalsoextendstoanysuspected/knownconflictsofinterestsinrelationtoanyinternalorexternalmatters/personnel.
Section 1 – General (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 7
7. Pre Procurement
7.1 Anynewcommissioningofservicesincludingexistingserviceswherethecontractisduetoend,mustconsidertheMakeorBuydecision,inlinewiththeCouncil’s’CommissioningFrameworkandguidanceintheProcurementandContractManagementHandbook.TheDirectorresponsiblemustsubmitareporttoCCBforagreementtotheproposedoutcomeforvaluesover£100,000.
7.2 Considerationmustbegiventowhatprocurementmethodismostlikelytoachievethecommissioningandprocurementobjectives,includingpackaging(Lots)strategies,internalorexternalsourcing,sharedservices,partneringarrangementsandcollaborativeprocurementarrangementswithotherlocalauthoritiesandgovernmentdepartments.OfficerswillalsoconsiderworkingwithCCGs,statutoryundertakersandCentralPurchasingBodies.Theymayalsoconsidertheestablishmentofseparatetradingentities.
7.3 TherelevantOfficermustrefertotheProcurement&ContractManagementHandbookforfurtherdetailsonprocessandrequirementsbeforeinstigatinganyprocurementexercise.
Section 2 – Make or Buy
TENDERS AND CONTR ACTS REGUL ATIONS 2019 8
Section 3 – How we Buy - Approach and Principles
8. How we Buy
8.1 TheDirectorresponsiblemustsubmitaHowweBuy(procurementstrategy)ReporttotheCCB,settingoutcommissioningintentionsandsourcingstrategy,(intheformatrequired),forallproposedContractawardsforgoodsandserviceswithanestimatedtotalContractvalueof£100,000andabove.WhereitisintendedtocompleteaminicompetitionorcalloffforworksfromanexistingCouncilcontractoranOJEUprocuredframeworkasadvertisedforworks,thenareportisnotrequireduptoanestimatedtotalcontractvalueof£500,000.
8.2 AReportmustbepresentedtoCabinet(intherequiredformat)forapprovalthathasbeenrecommendedbyCCB,wheretheeventualContractvalueisestimatedat£5moraboveunlesstheunderlyingprocurementstrategytowhichitrelateshasalreadybeenreportedandagreedbyCabinet.Inthesecases,theLeaderhasdelegatedtheauthoritytoagreetheprocurementstrategytotherelevantCabinetMember.
8.3 TheHowweBuyreportorCabinetreportshould,asaminimum,setouttheprojectplan,theproposedprocurementroute,compliancewiththeCouncil’spoliciesonLLW,SocialValue,dataprotectionandequalityanalysisrecommendations,anyproposeddeparturesfromstandardprocurementpracticeortheseregulations,theevaluationapproach,risks,timetable,projectstructureanddetailsoftheContract,e.g.term,valueandanyotherrelevantinformation.
8.4 NoadvertisementshouldbeplacedorinvitationtotendermadepriortoapprovaloftheHowweBuyreportinaccordancewithRegulation11.
9. E-Procurement and the Use of E-Sourcing (Tendering)
9.1 E-Procurementisacriticalmethodofensuringtransparency,fairnessandaccountabilityinprocurementprocesses.Assuch,allquotationandtenderingprocessesforContractsrunbytheCounciloronbehalfoftheCouncilmustuseane-tenderingportalunderthesupervisionoftherelevantC&PHeadofService.WhentheCouncilisrunningaquotationortenderingprocessitwilluseitsowne-tenderingportal.Anyothertenderingmethodoruseofothere-tenderingportalsmaybeusedonlywithpriorauthorisationviaaWaiverrequest.
9.2 AllelectronicdocumentationwillbesecurelyaccessedandretainedontheCouncil’se-sourcingwebsite.TheCouncilwillnotaccepthardcopiesofsupplierstendersubmissions.
9.3 TherelevantDirectormustensurethatallinformationrequiredtocommenceane-procurementprocesseffectively,andtoprovideafullaudittrailfortheprocess,isprovided,includingdetailsofevaluationcriteria,theirweightingsandthewayinwhichevaluationscoreswillbecalculated.
10. Contract Value, Aggregation and Existing Council Contracts
10.1 TheOfficerresponsiblemustnotdivideanyContractordinarilytreatedasasingleContractintotwoormoreContractsorinphasedorstageddeliveryinsuchwayastoavoidtheapplicationofanyoftheseRegulations,theUKRegulationsortheEURules.
10.2 ThevalueofContractswhicharesubjecttotheUKRegulationsshallbecalculatedasprovidedforinthoseregulations.ThevalueofanyContractiscalculatednetofVATandoverthetotaldurationoftheContract,includinganypilot,phasesorstagesofdelivery.
10.3 TheOfficerresponsiblemaynotarrangetopurchaseseparatelyanysupplies,servicesorworksthatareavailabletobepurchasedthroughanexistingcontractualarrangementwiththeCouncil,wheretheitemssoughtareeitherthesameorsufficientlysimilartothosethatarethesubjectoftheexistingcontracttofulfiltheCouncil’sneeds.UnlessitcanbeclearlydemonstratedtothesatisfactionoftheChairofCCBforspendabove£100,000andtothesatisfactionoftheStrategicProcurementManagerforspendbelow£100,000,thatusingtheexistingContractwouldnotfulfiltheCouncil’sstatutorydutytoprovideBestValueunderSection3oftheLocalGovernmentAct1999.
TENDERS AND CONTR ACTS REGUL ATIONS 2019 9
11. Procedures and Approval Process for the Council’s Tendering and Request for Quotation Activities
11.1 TheseregulationsapplytoallpurchasesexceptforthosewhereRegulation19.3applies.
11.2 Low Value Procurement (below £100,000)
11.2.1 Forallcontractswithanestimatedvalueofbelow£100,000thefollowingthresholdsapply:
Contract Value
Procedure Approval
Upto£10,000
PreferablytwowrittenquotationsbothtobefromlocalsupplierusingtheCouncil’sBusinessDirectory(ifpossible).
InaccordancewiththeCouncil’sSchemeofFinancialDelegationandDepartmentalSchemeofDelegation.
Over£10,000upto£100,000
Min.threewrittenquotationswithtwofromlocalsuppliersusingtheCouncil’sBusinessDirectory(ifpossible)andprocessedbytheCouncil’sBuyingTeamviatheCouncil’se-tenderingportal.
11.2.2 Forvaluesover£10,000writtenquotationsshouldbeprocessedthroughtheCentralBuyingTeamusingtheCouncil’se-tenderingsystem.QuotationsmustbeprocessedinaccordancewiththeinformationonlowvalueprocurementprovidedintheCommissioning&ProcurementHandbook.
11.2.3 WheretheprocurementroutewillnotfollowRegulation11.2.1,awaiverisrequiredassetoutinRegulation19.TheDirectorofC&PmayapprovealistofgeneralexemptionsforcircumstanceswhereitisnotfeasibleoradvantageoustoseekwrittenquotationsorWaivers.
11.3 Formal Tendering (£100,000 and above)
11.3.1 Forallcontractswithanestimatedvalueof£100,000andabove,formaltenderingproceduresshouldbefollowedusingtheCouncil’s’e-tenderingportalinaccordancewiththerequirementsofRegulations8&26andtheUKRegulations.NoprocurementcancommencewithoutpriorapprovaloftheRP2HowweBuy-procurementstrategyandnocontractscancommencewithoutpriorapprovaloftheawardofcontracts.ApprovalsareinaccordancewiththetablebelowandwhereapprovalissoughtfromaCabinetMemberthenitisinconsultationwiththeCabinetMemberforFinance&ResourcesorwheretheCabinetMemberistheCabinetMemberforFinance&ResourcesthenitisinconsultationwiththeLeaderoftheCouncil.
Approval Required
Chair of CCB Approval
Cabinet Member Approval
Cabinet Approval
RP2HowweBuy-ProcurementStrategy
Upto£5,000,000
CabinetMember(s)tobesightedonallreports
Over£5,000,000
RP3ContractAward
£100,000upto£500,000
Over£500,000upto£5,000,000
Over£5,000,000
11.3.2 UnlessasotherwisespecifiedintheseRegulations,theapprovalofstrategiesandawardsrelatingtoFrameworkAgreementsandtheestablishment/initialappointmentofproviderstoaDPSshallbesubjecttotherequirementsandproceduresapplicabletoContracts,byreferencetotheestimatedvalueofcontractstobecalledoffoverthelifeoftheFrameworkorDPS.
11.3.3 TheperiodicappointmentofnewproviderstoanapprovedDPSor(whererelevant)FrameworkshallbereportedtoCCBwithsuchfrequencyasshallbespecifiedinthereportseekingapprovalfortheawardofaFramework Agreementorestablishment/initialappointmentofproviderstoaDPS(‘Framework/DPSAwardreport’).
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 10
11.3.4 UnlessasotherwisestatedintheseRegulations,theapprovalofstrategiesandawardsinrelationtoCall-offContractsunderaFrameworkorDPSapprovedviaaFramework/DPSAwardReportshallbesubjecttotherequirementsandproceduresapplicabletoContracts,exceptasmaybeotherwisespecifiedandapprovedintherelevantFramework/DPSAwardReport.
12. Pre Tender Market Consultation
12.1 BeforesubmittingaprocurementstrategytoCCB,theofficerresponsiblefortheprocurementandinconsultationwiththerelevantCategoryManager,mayissueaPriorIndicativeNotice(PIN)orconductmarketconsultationswithaviewtoinformingtheeventualprocurementapproach,scopeofcontract,specificationetc.and/ortocommunicatetoprospectiveapplicantsandtendererstheCouncil’sprocurementplansandrequirementssuchasthenature,levelandstandardoftheprovision,contractpackaging,timescalesandotherrelevantmatters.
12.2 Forthispurpose,theofficerresponsiblemay,forexample,seekoracceptadvicefromindependentexperts,otherauthoritiesorfrommarketparticipants.
12.3 Suchadvicemaybeusedintheplanningandtheproposedprocurementprocedure,providedthatitdoesnothavetheeffectofdistortingcompetition(bygivingthosewhoparticipateinthepre-tendermarketconsultationanunfairadvantageoverothersinrelationtofutureprocurementopportunities)anddoesnotresultinaviolationoftheEURulesandtransparencyandfurthermore,isconductedinlinewiththeUKRegulations.
13. London Living Wage (LLW)
13.1 TheCouncilwillincludearequirementforallstafftobepaidnolessthantheLLW,asdefinedbytheLivingWageFoundation.ForthesepurposesthescopewillbedefinedasbytheLivingWageFoundation.For‘staff’meansallpersonsemployedbythecontractortoperformitsobligationsundertherelevantCouncilcontracttogetherwiththeProvider’sservants,agents,suppliersandsub-contractorsusedintheperformanceofitsobligationsunderthatContract.
14. The Public Services (Social Value) Act 2012
14.1 ThisActplacesarequirementoncommissionerstoconsidertheeconomic,environmentalandsocialbenefitsoftheirapproachestocommissioningandprocurementbeforetheprocessstarts.TheActrequiresauthoritiestomakethefollowingconsiderationsatthepre-procurement(commissioning)stage:
a) How,whatisproposedtobeprocured,mightimprovetheeconomic,socialandenvironmentalwell-beingofthe‘relevantarea’;
b) Howinconductingaprocurementprocess,theAuthoritymightactwithaviewtosecuringthatimprovementandwhethertoundertakeaconsultationonthesematters.
14.2 CommissionersshouldusethisAct,includinganyupdatestoitandtheCouncil’sSocialValuePolicytoconsideroutcomesandthetypesofservicestocommissionbeforestartingtheprocurementprocess.Whenconsideringhowaprocurementprocessmayimprovethesocial,economicorenvironmentalwell-beingofarelevantarea,theCouncilmustonlyconsidermattersthatarerelevanttowhatisproposedtobeprocured.TheCouncilmustonlyconsiderthosematterstotheextenttowhichitisproportionate,inallthecircumstances,totakethosemattersintoaccount.See: http://www.legislation.gov.uk/ukpga/2012/3/enacted
15. Nominated or Named Sub-contractors and Suppliers
15.1 InaccordancewithCroydon’scommitmenttodevelopingthelocalsupplybaseandproactivelyimplementingtheSocialValueAct,sub-contractingcanprovideausefultoolforengagingsmallbusinesses,voluntaryorganisationsandthecommunitysectorinthesupplyofgoods,suppliesandservices.
15.2 Officersshouldconsiderwhethertheinclusionofsub-contractingclausesisappropriatefortheircommissioningactivity.
15.3 WhereaDirectornominatesornamesasub-contractororsuppliertoamaincontractor,theymustensurethecompliancewithLLW,ModernDaySlavery,Council’sEqualityandDiversitypolicy,dataprotectionlegislationandanyothersuchpolicyorlegislationrelevanttothegoods,servicesorworksbeingcontractedforisincludedinthatsuppliersagreement.TheymustseekapprovalfromtheChairofCCBpriortoengagementwiththesub-contractororsupplier.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 11
16. Collaboration
16.1 Inordertosecurevalueformoney,theCouncilmayenterintoaprocurementarrangementwithaCentralPurchasingBody(CPB)suchasCrownCommercialServices(CCS)oranothersuchbody.Theseagreementsshouldinclude(wherepossible)compliancewiththeCouncil’spolicyandprocedures,andmustbeapprovedinaccordancewithRegulation11.ThetermsandconditionsoftheCPBmustbefullycompliedwith,includinganyrequirementtoundertakecompetitionbetweenproviders,rolesandresponsibilitiesandliabilitiesmustbeclearlysetoutinallCall-offandcontractdocumentationwhenusingtheseagreements.
16.2 Inordertosecurevalueformoney,theCouncilmayenterintocollaborativeprocurementarrangementswithanotherlocalauthority,governmentdepartment,ClinicalCommissioningGroups(CCG)andhealthproviders,statutoryundertakerorothercontractingauthority.ThesearrangementsmustbeapprovedinaccordancewithRegulation11andmustensurethatrolesandresponsibilityandliabilityhasbeenclearlysetoutwithinthedocumentation.
17. Provision of Services and Works for Other Organisations
17.1 ThisRegulationapplieswhenevertheCouncilcarriesoutorprovidesanyservicesorworkorotheractiononbehalfofanotherLocalAuthority/consortiumofLocalAuthorities,GovernmentDepartment,StatutoryBodyorthirdsectororganisation(thirdparties).Thefollowingconditionsapply:
a.theOfficerresponsiblemustbesatisfiedthattheCouncil’sinterestswillnotbeprejudicedbyanysuchaction;and
b.theremustbesufficientbudgetfortheworkintheCouncil’sownestimates;and
c.thethirdpartymustsignanagreementwiththeCouncilthatclearlystatesliabilities,rolesandresponsibilities,andincludecontingencyarrangementsshouldthethirdpartynolongerexistduringthetermoftheprovision;and
d.thethirdpartymustauthoriseanyadditionalrequirements,variationsordeparturesandanyadditionalfundingrequiredbytheCouncilmustbeauthorisedinaccordancewiththeFinancialRegulations;and
e.thethirdpartymustfirstconfirmthatitacceptsfinancialresponsibilityfortheprovisionofservicesorwork.
17.2 ApprovalmustbesoughtfromtheCCBviaaRP2HowweBuyreportpriortoanynotablecommitmentofCouncilresourcesorbudget
18. Tendering with or through other Public Bodies
18.1 SubjecttotherequirementsofEURules,UKRegulationsandanyotherapplicablelegislation,regulation,policyand/orguidancedocument,theOfficerresponsiblecancallofftenderswithorthroughthefollowingorganisations,providedthattheycanobtainequivalentormoreadvantageoustermsthanbyinvitingcompetitivetenders:
a. AnotherLocalAuthority,consortiumoflocalauthorities,CommissioningPartnerships,aMutual;
b. GovernmentDepartment,PurchasingOrganisationwhichhasbeenapprovedbytheDirectorresponsibleforprocurement;
c. StatutoryBody;
d. UtilityUndertaking(publicorpreviouslypublic).
18.2 However,theOfficerresponsiblemustobtainthemostfavourabletermspossiblefortheCouncilandmustbeabletodemonstrateBestValueforMoneyunderSection3oftheLocalGovernmentAct1999.AnawardreportrecommendinganyawardmustbesubmittedinaccordancewithRegulation11.
19. Waivers and Emergencies
19.1 Wherethevalueisunder£100,000anywaiversmustbesignedbytherelevantDirectoroftheserviceareainconsultationwitheithertheStrategicProcurementorSourcingManagersoftheCentralBuyingTeam.
19.2 Overandabovethis,theDirectorofCommissioning&Procurement(exercisingdelegatednon-executivepowers)canwaiveanyrequirementscontainedwithintheseTendersandContractsRegulationsforspecificprojects,followingarecommendationfromtheCCB.Anysuchwaiversgrantedwithavalueover£100,000mustbereportedtoCabinetatitsnextmeeting.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 12
19.3 ForDisastersandEmergencieswherethereisaclearneedtoprovideaserviceorproductimmediatelyintheinstanceofasuddenunforeseencrisisortheimmediateriskistohealth,life,propertyorenvironment,compliancewhentheseregulationsmaynotbefeasible.AnyDirectormayplaceanorderforsupplies,servicesorworksasthecircumstancesrequireafterseekingapprovalfromthechairofCCB,clearlystatingtheimmediateprocurementsrequired.Ifthatisnotfeasibleforexampleduetooutsideofnormalworkinghoursthenimmediatelyafterwhenreasonablyfeasible.AreportofcontractsawardedandanyfutureprocurementsrequiredwillrequireapprovalbytheChairofCCBandifapplicableCabinetatthenextavailablemeetingaftertheevent.
19.4 Foremergencyplacements(Placement)relatingtochildrenorvulnerableadults,whereitisnotpossibletoarrangethePlacementthroughanexistingCouncilContract,therelevantDirectormayauthoriseanorderforthePlacement.AssoonaspracticaltheDirectorshallreviewthePlacementtosatisfythemselvesthatitisandcontinuestobeappropriatetothecircumstancesandprovidesvalueformoney.
19.5 AmonthlyreportofallPlacementsandotheremergencyordersmadeunderthisRegulation19intherelevantmonthshallbepresentedtoCCB,CabinetMemberorCabinetasappropriate(byreferencetoregulation28inaccordancewiththevalueofawardandreportingprotocols).WheretheDirectormakingthePlacementoremergencyorderisnotanExecutiveDirectorsuchreportshallalsobeprovidedtotherelevantExecutiveDirector.
19.6 Allwaiversagainstanyoftheseregulations,includingthereasonsforthemandtheperiodforwhichthewaiverisvalidmustberecordedandapproved.Whereawaiveristobesought,theprocurementprocessmaynotbeginbeforeapprovalhasbeengranted.Thisrestrictioncannotbeavoidedbyseekingapprovalofawaiverwithretrospectiveeffect,unlessitisconfirmedthatitwasnotreasonablypracticabletoobtainitpriortoapproval.AllrequirementsoftheseRegulationsrelatingtotheapprovaltoawardstillremain.
20. Preparation of a Specification
20.1 TheOfficerresponsiblemustprepareaclearandunambiguousspecification.ItmustbeinkeepingwiththeCouncil’scommissioningprinciples(includingSocialValueoutcomes),theymustbeoutcome-basedandmustincludeanynecessaryoutputs,plans,sections,drawingsandbillsofquantities.ThisspecificationmustbeagreedbytherelevantCategoryManagerortheCentralBuyingTeamforvaluesbelow£100,000.
20.2 Sometimes,becauseofthetypeofwork,theOfficerresponsiblemaynotconsideritpracticalorpossibletoprepareadetailedspecificationofeveryitemofworknecessaryforthecontracttobecarriedout.Here,theOfficerresponsiblemayinclude,ingeneralwords,provisionforsuchworksinthespecification.ThisissubjecttotherequirementthatanysuchworkiscarriedoutunderthedirectsupervisionofandonthewrittenauthorityoftheOfficerresponsible.
20.3 Ifthespecificationisforacontractforworks,theOfficerresponsiblemustincludeprovisionwithinthebudgetforcontingencies.
21. Advertising and the Number of Tenders
21.1 OneoftheprinciplesofCroydon’scommissioningframeworkistoletcontractsviaanopenandtransparentcompetitiveprocess.
21.2 OfficersshallensurethatalltenderprocessesthataretobeadvertisedaredonesoinasufficientlyaccessiblemannerandwhereproposedContracts,irrespectiveoftheirtotalContractvalue,mightbeofinteresttopotentialsupplierslocatedinothermemberstatesoftheEU,asufficientlyaccessibleadvertisementispublished.Generally,thegreatertheinterestoftheContracttopotentialsuppliersthewiderthecoverageoftheadvertisementshouldbe.Advertisementsfortendersmustasaminimumbeplacedasfollows:
a. WherethevalueexceedsthecurrentEUthresholdsforgoods,serviceandworksContracts,tenderadvertisementrulesmustbefollowedinaccordancewiththecurrentEURulesandUKRegulations;
b. Forprocurementactivityofanyvalue,OfficersmustusetheCouncil’sowne-tenderingportalandwebsite(s).Theymayuseadditionaladvertisementsinnationalofficialjournals,specialisttradepapersorwebsites,ifrelevantandifaffordable.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 13
21.3 Asaminimum,anyadvertisementmuststatetheplacewhereinterestedprovidersmayobtaintheprocurementdocumentsandthedeadlineforreceiptofsubmissions.Asappropriateandasanalternativetoadvertising;tenderersmaybeselectedeitherviaanacceptedframework(Croydon’sown,viaanestablishedCPOorauthorised3rdparty)orviaanapprovedlistsuchas‘Constructionline’.DetailsshouldbeprovidedintheRP2HowweBuyreport.
22. Standards and Evaluation Criteria
22.1 Wherethevalueis£100,000andabovetheDirectorforwhomtheprocurementisbeingundertakenmustascertaintherelevantEU,UK,Europeanorinternationalstandardswhichapplytothesubjectmatterofthecontract.TheOfficermustincludethosestandardswhicharenecessarytoproperlydescribetherequiredqualityandobligationsunderthecontract.AdvicefromtherelevantC&PHeadofServiceorCategoryManagermustbesought,asnecessary.
22.2 ThecompositionofandassessmentoftheSQandITTmustbecarriedoutinlinewiththeEURulesandUKRegulationswhichprovidesfortransparency,non-discrimination,equaltreatment,mutualrecognitionandproportionalityamongstthefreedomofmovementofgoods,freedomofestablishmentandfreedomtoprovideservices.
22.3 TheOfficerresponsiblefortheprocurementmustdefineevaluationcriteriathatareappropriatetothepurchaseanddesignedtosecureanoutcomethatmeetstheobjectivesoftheCouncil.ThismustbeincludedintheapprovedRP2HowweBuyReport.Theevaluationcriteriachosenmust,whererelevant,becompliantandinaccordancewiththeUKRegulations.ThismustbeeitherMEATforgoods,servicesandworks,orHighestPriceifpaymentistobereceivedforsaleordisposal.
22.4 WhenawardingonthebasisofMEAT,thespiltbetweencostandqualityistobe40%costand60%quality.WheretheOfficerresponsibledoesnotconsiderthissplitappropriate,thereasonsfortheuseofanalternativepercentagesplitmustbesubstantiatedandaWaiversoughttothisregulation.ThismustbeincludedintheRP2HowweBuyReport,whichisinaccordancewithRegulation8,forapprovalbytheCCB.Where,undertheMEATapproach,qualityisadoptedasacriterion,itmustbefurtherdefinedbyreferencetosub-criteria.Thereisnodefinitivelistofqualitycriteriathat
shouldbeappliedtoallprocurements,buttheymustbelinkedtothesubjectmatterofthecontractandproportionate.PleasereferencetheProcurement&ContractManagementHandbookforfurtheradvice.
22.5 The60%qualityevaluationassessmentmustincludeanallocationforaminimumof10%fortheSocialValuecriteria,anydeviationfromthismustbeinaccordancewithRegulation19.
22.6 TheDirectormustensurethat,whatevermethodoftenderingischosen,financialappraisalsofcontractorsarepartoftheselection/awardprocess.Directorsmustalsoensureabnormallylowtendersubmissionshavebeenfullyevaluatedtoensureitdoesprovidevalueformoney.AnyconcernsregardingtheevaluationespeciallywithconsiderationoftheModernDaySlaveryAct,shouldbereportedtotheChairofCCB.
22.7 Officersmustindicateinthecontractnoticewhetherornottheyauthorisevariants.Variantsshallnotbeauthorisedwithoutthisindication.
22.8 Officermuststateinthetenderdocumentstheminimumrequirementstobemetbythevariantsandanyspecificrequirementsthatneedtobemet.Onlyvariantsmeetingthoseminimumrequirementsshallbetakenintoconsideration
23. Standard Contract Clauses
23.1 AllContractsvaluedinexcessof£100,000mustbeinwritingandsignedbyanAuthorisedSignatoryonbehalftheCouncil,orsealedwiththeCouncil’sSealinthepresenceofanAuthorisedSignatory.
23.2 TheOfficerresponsiblemustincludethefollowingstandardclausesineverywrittenContract.AnyproposedchangestothestandardclausesaresubjecttolegaladviceandapprovalbytheDirectorofCommissiong&Procurement,ifnotincludedinaRP2HowweBuyReport.
23.3 AllContractsmustinclude:
a. Defaultprocedures.Thesemayincludechargesfordefaults.
b. AclauseenablingtheCounciltoclaimactualorliquidateddamagesoranappropriatecombination,dependinguponthenatureofthecontract.Wherealiquidateddamagesclauseisused,theremustalsobeincludedaclauseforanextensionofthetimeforcompletion.Appropriateadvicemustbesoughtonthetypeofdamagesclausesuitableforeachproposedcontract.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 14
c. Agenuinepre-estimateofliquidateddamagesmustbequotedinthecontracttobevalid.Liquidateddamagesclausesgenerallyyieldlimitedsumsindamagesand,therefore,therisksofadoptingaliquidateddamagesclauseshouldbeassessedineachcase.
d. AclauserequiringtheContractortomaintainandtestabusinesscontinuityplanatleastannuallyandtokeeptheCouncilinformedofhowthatplanwouldbedeployedtoprotecttheCouncil’sinterests,intheeventofanyinterruptioninthedeliveryofgoods,servicesorworks.
e. AclausesettingoutthearrangementsbywhichthecontractwillbemanagedandmonitoredbytheCouncil,includingarrangementsforregularliaisonbetweentheparties,incompliancewiththeCouncil’sstandardrequirementsforcontractmanagementandmonitoring.
f. Anextensionofthe‘timeforcompletion’clausetoprotecttheCouncilandallowforliquidateddamagestobeclaimedintheeventthattheCouncilisresponsibletoanyextentforadelay.
g. AclausepermittingtheterminationoftheContractinwholeorinpart,andwithoutpenalty,wheretheCouncilelectstodoso.
h. AclausethatentitlestheCounciltoterminateaContractwithoutpenaltywhereithasbeensubjecttoasubstantialmodificationbytheproviderwithoutpriorconsultationandagreement.
i. AprovisionrequiringtheCounciltopayundisputedinvoices,within30daysofreceiptofavalidinvoice(subjecttoanycontractualorstatutoryobligationtopayearlier).
j. ProvisionthatanysignificantdeviationfromthetenderproposalshallconstituteadefaultinthesamemannerasadeviationfromtheSpecificationandmayconstitutegroundsuponwhichtoterminatethecontract.
k. SuitableclausestoenabletheCounciltocancelthecontractandrecoveranylossduetothecancellationofthecontractiftheContractororanypersonemployedbytheContractororactingontheContractor’sbehalfshallhavecommittedanyoffenceundertheBriberyAct2010orshallhavegivenanyfeeorrewardthereceiptofwhichisanoffenceunderSection117(2)oftheLocalGovernmentAct1972orshallhavegiven
anyfeeorrewardtoanymemberorofficeroftheCouncilwhichshallhavebeenexactedoracceptedbysuchofficerbyvirtueofofficeoremploymentandisotherwisethansuchofficer’sproperremuneration.
l. AclausethatstatestheCouncilwillrequireallstaffengagedbytheContractorinthedeliveryofservicesorworksundertheContractbepaidtheLLW.
m.WhereappropriateaclausethatstatestheContractormustcomplywiththeModernDaySlaverypolicy.
n. WhereappropriateaclausethatstatestheContractorwillensuretheymaintaintheircompliancewithCouncilpoliciesthatarerelevanttotheservicesthattheCouncilareprocuring.
o. Wherepersonaldataisbeingusedwithinthedeliveryoftheservices,theappropriatedataprotectionprovisionismadeincludingthattheContractormustindemnifytheCouncilagainstanyrelevantliabilitiesapplicabletotheContractorsresponsibilities.
p. Whereappropriate,relevantsafeguardingprovisionsmustbeincluded.
23.4 StandardcontractclausesforsecuringsocialvaluearesetoutintheSocialValueFramework.TheOfficerresponsibleshouldrefertothisframeworktoensuretheappropriateclausesareused.EveryContractawardedbytheCouncilmusthaveacommitmentonsocialvalue.
23.5 TheOfficerresponsiblemustconsidertheobligationtorequiretendererstoprovideaPerformanceBondand/orParentCompanyGuaranteewhereacontractorisasubsidiaryofaparentcompany,asaContractrequirementinthefollowingcircumstances:
(i) theawardisbasedonevaluationoftheparentcompany;
(ii) thefinancialstatusofthecontractor(havingregard,interalia,totheproposedcontract)warrantsthesame;andor
(iii)theS151Officerrecommends;
(iv)whereitisproposedtomakestageorotherpaymentsinadvanceofreceivingthewholeofthesubjectmatteroftheContract.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 15
23.6 ThedecisiontorequireaPerformanceBondand/orParentCompanyGuaranteeasaContractrequirementshouldbedetailedintheRP2HowweBuyreport.
23.7 IfduringthetenderingexerciseitbecomesarequirementforatenderertoprovideaPerformanceBondand/orParentCompanyGuaranteeasaContractrequirement-perhapstosupportafinancialstandingissue,thenthisrequirement,ifdifferentfromthatstatedintheprocurementshouldbereportedintheeventualawardreport.
23.8 Ifrequired,adviceshouldbesoughtfromtherelevantFinanceHeadofServiceandincludedaspartoftheRP2HowweBuyreportorContractAwardreportforapprovalbytheChairofCCB.
23.9 Inallcaseswhererelevant,theOfficerresponsible,mustdiscusstheneedfortheprovisionofaPensionBondwiththeHeadofServiceresponsibleforPensionsandTreasury.
23.10 EveryContractmusthaveaclauserequiringthecontractortoobtainadequatepublicliabilityandemployer’sliabilityinsuranceandanyotherinsuranceasmayberequiredbythecontract.Thecontractormustprovidereasonableproofofthisbeforeworkiscommencedandthroughoutthelifeofthecontractuponrenewalofinsurance.
23.11 ThelevelsofcoveraretobeasstatedintheCouncil’sinsuranceguidancedocument.AnyproposedreductioninrequiredcovermustbeinconsultationwiththeCouncil’sInsurance,RiskandCorporateProgrammeOffice.
23.12 AllContractsmustincludethefollowing:
a. wordinginwhichthecontractoragreestoindemnifytheCouncilforallclaimsproceedings,actionsandothermattersrelatingtothecontract,exceptwheretheCouncilisfoundtobelegallyliable;
and
b. aclauseinwhichthecontractoragreestocertainservicelevelswhiledealingwithclaims,etc;
and
c. aclauserequiringthefullrangeofrelevantinsurancestobeprovidedbythecontractor,adviceonthismustbetakenfromtheRiskandInsuranceOfficer;
and
d. theneedforanyself-employedpersonorconsultanttohavetheirowninsurance,particularlywhereservicesareprovidedbyemploymentagencies.
23.13 EveryContractmusthaveaclauserequiringallpartiestocomplywiththeprovisionsoftheDataProtectionAct2018(‘DPA’).
23.14 EverycontractmustensurethatthecontractoracknowledgesthattheContractandtheinformationassociatedwithitissubjecttotheFreedomofInformationAct2000(‘FoIA’).
23.15 EveryContractmustnamethesupervisingperson/s.
23.16 EveryContractmusthaveaclauserequiringthecontractortoobservestatutoryrequirementsastothemannerinwhichworkistobecarriedout.
23.17 EveryContractmustincorporatethespecificationandanydrawingsandbillsofquantitiesasrequired/relevant.
23.18 EveryContractmustcontainaprovisionenablingtheCounciltodealwithcaseswherethecontractor,withoutgoodreason,eitherwhollyorpartlyfailstocompletedeliveryofthesupplies,servicesorworks,thesubjectoftheContract,tothecontractstandardoratall.TheprovisionmustenabletheCouncil,ifsodesired,to:
a. engageanalternativeprovider,andinsituationsofurgency,withoutnoticetotheoriginalcontractor;
b. arrangeforthedeliveryofnecessarysuppliesormaterialsfromanalternativesource;
c. changequalityorquantityofsupplies,servicesorworksrequired;
d. rechargetotheoriginalcontractorthecostsofre-procurementand/orassociatedadministrativeandlegalcosts,andanycostsincurredinexcessoftheoriginaltenderedpriceofthecontractortocompletethedeliveryofthesupplythesubjectofthecontract,includingthecostsofanychangesrequiredtothatsupply,resultingfromthecontractor’sdefault.
23.19 Whereappropriate,astandardformofcontractissuedbytheregulatorybody,tradeindustryorprofessionmaybeusedinconjunctionwiththeseRegulations.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 16
24. Form of Contract for all Awards
24.1 EveryContractmustbeinwritingandinaformapprovedbytheCouncilSolicitorandMonitoringOfficer.
24.2 TheCouncilSolicitorandMonitoringOfficer,theHeadsofLegalServicesorotherpersonauthorisedbytheCouncilSolicitorandMonitoringOfficer(‘AuthorisedSignatory’)mustsigneverywrittencontractvaluedat£100,000andaboveinaccordancewiththeCouncil’sConstitutionandisresponsibleforsettlingthedetailedtermsthereof.However,therelevantDirectormaysignandsettlethetermsofContractsvaluedat£100,000andaboveifspecificallyauthorisedinwritingtodosobytheCouncilSolicitorandMonitoringOfficer.
24.3 Whereastandardformofcontractisissuedbytheregulatorybody,tradeindustryorprofession,theOfficerresponsiblemayusethisinconjunctionwiththeseRegulations.TheOfficerresponsiblemustensurethattheContractisapprovedandexecutedbytheDirectorresponsibleforLegalServices.
25. Invitations to Tender and Quotations/Tendering Instructions
25.1 TheOfficerresponsiblemustissueInvitationstoTenderandtenderinginstructionstoeverysupplier:
a. invitedtotenderfollowingashort-listingprocess;
or
b. whoislistedontherelevantFramework,FrameworklotorDPSandwhoiscapableandwillingtotender;
or
c. whorequeststhesupplyoftenderdocumentsunderopentendering.
25.2 AllInvitationstotendermustspecifythegoods,serviceorworksthatarerequired,togetherwiththetermsandconditionsofcontractthatwillapply.
25.3 Allsuppliersinvitedtotendermustbeissuedwiththesameinformationatthesametimeandsubjecttothesameconditions.Anysupplementaryinformationmustbegivenonthesamebasis.
25.4 AllInvitationstotendershallincludethefollowing:
a. AspecificationthatfullydescribestheCouncil’srequirements;
b. Arequirementfortendererstodeclarethatthetendercontent,priceoranyotherfigureorparticularsconcerningthetenderhavenotbeendisclosedbythetenderertoanyotherparty(exceptwheresuchadisclosureismadeinconfidenceforanecessarypurpose);
c. Arequirementfortendererstocompletefullyandsignalltenderdocumentsincludingaformoftenderandcertificatesrelatingtocanvassingandnon-collusion;
d. NotificationthattendersaresubmittedtotheCouncilonthebasisthattheyarepreparedatthetenderer’sexpense;
e. Adescription(detailedasappropriate)oftheawardprocedureandevaluationmethodology.
25.5 TheOfficerresponsiblemustadviseeverysuppliersubmittingatenderthat:
a. noextensionoftimewillbeallowedforthereceiptofanytender,unlessatthediscretionoftheCouncil;
b. tendersreceivedafterthedateandtimespecifiedforreceiptmayberejected;
c. anydeparturefromtheTenderingInstructionsmayleadtothetenderbeingrejected;
d. theCouncildoesnotbindthemselvestoacceptthelowestoranytenderortoacceptanytenderinfull;
e. assoonastheCouncilhasadvisedthat(subjecttocontract)thetenderhasbeenaccepted,thentheagreementbecomeslegallybinding;
f. thetenderdocumentstobeinelectronicformat;
g. thetendererssignedformoftendercannotbedifferentindetailtothatprovidedaspartofthee-sourcingprocess.
25.6 Standardcontractclausesmustbestated(Regulation22).Everysupplierwhosubmitsatendermustbewillingtoenterintoacontractcontainingtheseclauses.
25.7 TheOfficerresponsiblemustalsospecifytheperiodforwhichthetenderwillbekeptopenforacceptance.Thenormalminimumprovisionwillbe90days.
25.8 TendersmustbesubmittedelectronicallyviatheCouncil’se-tenderingportalorbysuchotherformofsubmissionprovideditwasapprovedandawaivertothisregulationsoughtintherelevantRP2HowweBuyreport.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 17
25.9 Everytendermustspecify:
i. theamountofthetenderandanydiscountsordeductionsallowableandthetermsforanysuchallowance;and
ii. thetimeortimeswithinwhichthecontractistobeperformedorcompleted.
25.10 TheOfficerresponsiblemustcheckthateverytendersumhasbeencalculatedbyreferencetotheminimumspecificationrequiredandstipulatedinthetender.Iftheydiscoveranydeparturefromthespecification,theycantreatitasgroundsfordisregardingthetender.
25.11 Whenatendererproposesavariantbid,theymusthavedemonstrated,bywayofacompliantbid,thattheCouncil’sminimumstandardhasbeenmetbeforeavariantbidcanbeconsidered.
25.12 TheOfficerresponsiblemustcheckthateverytendersumisstatednetofValueAddedTaxoranyotherTaxorDuty.
26. Submission, Receipt and Opening of Tenders/Quotations
26.1 EverytendermustbereceivedbyasecuremethodusingtheCouncil’se-tenderingportaloranapprovede-sourcingsystem.
26.2 Suppliersorproviderswhohaveexpressedinterestinatendermustbegivenanadequateperiodinwhichtoprepareandsubmitapropertender,consistentwiththecomplexityofthecontractrequirement.PCR2015orCCR2016includesspecifictenderingtimeperiods.
26.3 Officersmustnotifyallsuppliersofthecorrecttenderreturninstructions,includingthedate,timeandplace(detailsofthee-sourcingsystem).
26.4 Inexceptionalcircumstances,thedeadlineforreceiptoftendersmaybeextended,butonlywiththeagreementoftherelevantC&PHeadofServiceandtheC&PHeadofServiceCorporateandonlyifsuchextensionoftimewillnotdisadvantageatenderer.Noextensiontothedeadlinecanbegivenoncetheoriginaldeadlinehaspassedandthesealhasbeenbrokenonthee-tenderingportal.
26.5 TherelevantC&PHeadofServicemustarrangeforalltendersforanyoneContracttobeopenedatthesametime.AlltendersreceivedviatheCouncil’se-tenderingportalshouldbeopenedbythoselistedbelowprovidingtheyarenotinvolvedinthetenderexercise:
• CategoryManagerfromoutsideoftheservicearealeadingthetenderexercise;
• theStrategicProcurementManageroftheCentralBuyingTeam;
• theProcurementGovernanceManager.
26.6 Inexceptionalcircumstances,theDirectorofC&PfollowingadvicefromtheC&PHeadofServiceCorporateandtheC&PHeadofServicefortheserviceareamayapprovethedelegationoftheopeningoftendersreceivedviatheCouncil’se-tenderingportaltotheSourcingManageroftheCentralBuyingTeamoraSeniorCategoryOfficerfromoutsidetheservicearealeadingthetenderexercise.
26.7 AnytenderthatdoesnotcomplywiththeCouncil’srequirementassetoutinthetenderinvitatione.g.arriveslate,shouldnormallybeexcludedfromconsideration,withthecircumstancesrecordedontheCouncile-tenderingportal.Officersmay,however,seektheagreementoftheChairofCCBtoamendtheserequirementsinappropriatecircumstances.Anysuchrelaxationshallbeidentifiedwhenseekinganynecessaryauthoritiesrequiredbeforetheacceptanceofatender.
26.8 TheC&PHeadofServiceCorporatemustensure,forauditandinformationpurposesthatforalltendersreceivedviatheCouncil’se-tenderingportal:
a) AnelectronicrecordisretainedofthedateandtimeofopeningandthenameoftheOfficerinvolved.;and
b) Anelectronicrecordofalltendersreceivedisretained
27. Post SQ and Tender Clarifications
27.1 TheDirectormustmaintainadetailedwrittenrecordandclearaudittrailofallpostSQandtenderclarificationsdetailingallcontactwiththetenderer.AllsuchcommunicationsmustberecordedviatheCouncil’se-tenderingportal.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 18
27.2 TheDirectormustreporttotheCCBorthenominatedCabinetMemberorCabinetasappropriate(basedonContractvalue)anyamendmentstotenderpricesarisingfromposttenderclarificationandthereasonsforthem.
27.3 Directorsmayamendtenderpricesunderposttenderclarification,providingitdoesnotdisadvantageanyothertendererandinaccordancewithPCR2015andCCR2016,inthefollowingcircumstancesonly:
a. if,betweenthesubmissionoftendersandtheContractbeingawarded,atendererseekstoreducethepricewithoutchangingtheoriginalspecification,thentheDirectormustconsultwiththeChairforCCBtodetermineiftherearereasonsforacceptingthenewpriceand,ifappropriate,offerthesameopportunitytoalltheothertenderers.Opportunitiestoothertendererstorevisetheirbidpriceswouldnotnormallybegiventothosepreviouslyeliminatedforreasonsotherthancostorwhereatendererrectifiesamathematicalerror;
or
b. ifthereareerrorsintotals;
or
c. ifthetenderpriceissolow,theDirectorbelievesthatthetenderermayhavemadeanerrorandthatacceptancemightleadtodifficultiesofperformance;
or
d. wherethelowesttendereragreestoreducetheirprice(withoutvaryingthespecification)afternegotiationbecause:
i) theoriginaltenderwasunacceptablyhigh;
or
ii) theschedulecoversarangeofrequirementsand,althoughlowestoverall,negotiationsmightallowfurthersavingstotheCouncil.
e. where,foraparticularrequirement:
i) thelowesttenderexceedstheDepartment’sallocation;
or
ii) whereitoffersanalternativespecificationandnegotiationwouldpermitanassessmentofthescopeforsavings.
f. IfthereisaProfessionalorlocalCodeofPractice,thatmayrestrictpricenegotiationandmustbetakenintoconsideration.
27.4 IftheDirectoramendstheoriginalspecificationortheacceptablealternativediffersfromtheoriginalspecification,thentheymustgivesimilaropportunitiestoallothertenderersthatsubmittedatender.
27.5 Thetenderermustsubsequentlyconfirm,inwriting,anyalterationstoatenderbeforetheDirectormayconsiderallthetendersreceived.
27.6 AllposttendernegotiationmustbeavailableforauditandrecordedviatheCouncil’se-tenderingportal.
Section 3 – How we Buy - Approach and Principles (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 19
28. Contract Award
28.1 AContractwithavalueof£100,000andabove,maynotbeawardedbeforetherelevantDirectorhassubmittedaRP3ContractAwardreportonthetendersreceivedfortherelevantcontractandtheappropriateacceptanceinaccordancewithRegulation28.4a-d.
28.2 TheOfficerresponsiblemustprovideareportonfinancialreferencesinthereportseekingacceptanceofatender.
28.3 Wherethefinancialappraisalofacontractorgivesan‘extremecaution’rating,thecontractormustnotbeusedunlesstheDirectororOfficerreportsonandseeksapprovalfromtheCouncil’sSection151Officer:
a. anymitigatingcircumstances;
and/or
b. whytheywishtoappointthatcontractor.
28.4 PriortothesubmissiontoCCBortotheChairofCCB,everyreportseekingacceptanceofatenderforaContractmustbereviewedfirstbytheLeadCategoryManagerpriortodepartmentalreviewby;theleadDirector,theHeadofCorporateLaw,theHeadofFinance,HumanResourcesandtheC&PHeadofServicerelevanttothereport.ThereportmustbepreparedinaccordancewiththerelevantProtocols(assetoutinPart5oftheCouncil’sConstitution)andspecifyinformationregardingthetenderingcircumstancesandthetermsofaContractawardsufficienttoenableaninformeddecisiontobemade.Itmustalsocontainanyappropriatecommentsand/orrecommendationsrelatingtobudgetaryprovision,thecompetitiveprocessundertaken,theseRegulations,theFinancialRegulations,EURules,relevantlegislationandtheCouncil’spolicies.
a. forContractsvaluedbetween£100,000and£500,000,iftherehavebeennodeparturesfromtheapprovedprocurementstrategyandthereisavailablebudgetthenareport,thathasbeensigned-offinaccordancewiththestandardawardreporttemplateseekingContractawardcanbemadedirectlytotheChairofCCB,underdelegatedpowers,withoutfirstseekingrecommendationfromtheCCB;
b. forContractsvaluedbetween£100,000and£500,000wheretherehavebeendeparturesfromtheapprovedprocurementroute(withtheexceptionoftimetable),evaluationapproachoradditionalriskswereidentified,thenareportisrequiredseekingrecommendationfromtheCCBforContractawardbytheChairofCCB,underdelegatedpowers;
c. forContractsvaluedover£500,000areportisrequiredtotheCCBseekingrecommendationforContractawardbytheCabinetMemberforvaluesupto£5,000,000andCabinetforvaluesover£5,000,000.
d. forproposedContractextensionperiodsincludedaspartoftheoriginalContractaward,areporttotheCCBseekingrecommendationforContractextensionbytheChairofCCB,underdelegatedpowers.
28.5 TheCabinet,nominatedCabinetMember,andtheCCBarethebodiesresponsibleforreviewingContractmattersfortheCouncil.
28.6 SubjecttotheContractvalues,recommendationsonexecutivematterswillbeconsideredbythenominatedCabinetMemberinconsultationwiththeCabinetMemberforFinanceandResources,orwherethenominatedCabinetMemberistheCabinetMemberforFinanceandResources,inconsultationwiththeLeader.
28.7 AlistofContractstoberecommendedunderRegulation28.4cwillbereportedtotheCabinetmeetingimmediatelyprecedingtheanticipateddateforconsiderationanddecisiontoaward.
28.8 InallinstancesintheseRegulationswhereanominatedCabinetMemberorCabinetischargedwithmakinganexecutivedecision,Part5.AoftheCouncil’sConstitution–ProtocolforDecisionMakingmustbeobserved.
28.9 Intheabsenceofthenamedofficers,deputiesmayactontheirbehalfinaccordancewiththedepartmentalschemeofdelegations.
Section 4 – Contract Award
TENDERS AND CONTR ACTS REGUL ATIONS 2019 20
29. Contract Pre-conditions and Preliminaries
29.1 ADirectormustnotauthoriseorpermitacontractortoenteronanylandorbuildingsbelongingtotheCouncilortoproceedwiththeContractorstartworkonsiteuntilawrittenordertoproceedwiththeContracthasbeenissuedandthefollowingactionsarecompleted:
a. thecontractorhasprovidedproofofinsurance;
b. thecontractorhascompletedandreturnedtotheCouncilthecontractdocumentsunlesstheDirectorcansatisfytheCouncilSolicitorandCouncilMonitoringOfficerandtheChairofCCBthattheCouncil’spositionisotherwiseadequatelysecured;
c. whereappropriatetheperformancebondisdulycompleted;
d. allprocedureshavebeencompletedtothesatisfactionoftheCouncilSolicitorandMonitoringOfficer.
29.2 OncetheactionsinRegulation29.1arecompletedthenapurchaseordermustberaisedontheCouncil’sfinancialsystem,priortoanygoodsorservicesbeingprovided.Raisingpurchaseorders,andanypermittedexceptions,mustbeconductedinaccordancewiththeCouncil’sP2PGuidancedocumentation.
30. Extras and Variations
30.1 Anyextra,variation(includingextensionoftime)oracontractchangecontrolnoticetoaContractmustbespecificallyauthorisedinwritingbytheDirectororadesignatedOfficer,whomustretainacopyofthisauthorisationasadocumentrelatingtotheContract.Iftheextra,variationorchangecontrolnoticeislikelytoresultinanincreaseintheContractsum,thentheOfficermustobtainauthorityfortheadditionalexpenditureinaccordancewiththeFinancialRegulations.Theoverallcostsmustbecontainedwithinagreedbudgets.
30.2 WherethecontractsupervisorsarenotCouncilOfficers,theContractwiththesupervisorsmustprovidethatnotangiblechangebemadetothespecificationwithoutthepriorwrittenconsentoftheCouncil.
30.3 AreportseekingauthorityforthechangetotheContractmustbemadetotheCCB,nominatedCabinetMemberorCabinetasappropriate,wheretheextratermsorvariationwillresultinthenewtotalvalueofthecontract:
i. Exceeding£100,000(CCB)or£500,000(NominatedCabinetMember)or£5,000,000(Cabinet);
ii. Exceedingtherelevantpublicprocurementthreshold(forgoods,servicesorworks),aspublishedfromtimetotimebytheEuropeanCommission.
orinanycase,wherethevalueoftheextra/variation(aggregatedwithpreviousextras/variationsifany)resultsintheoriginalContractawardvaluebeingincreasedbymorethan25%or£1,000,000(whicheveristhelower).
30.4 AKeyDecisionNoticeisrequiredandtimescalesadheredtowhenthevalueoftheextra/variationeithertotalsorincreasesthenewcontractvalueto£1,000,000ormoreandwasnotsubjecttoapreviousKeyDecisionNotice.
30.5 EachDepartmentmusthavecontrolproceduresandaudittrailsinplacetodealwithextras,variationsandChangeControlNotices.
Section 4 – Contract Award (continued)
TENDERS AND CONTR ACTS REGUL ATIONS 2019 21
31. Tender Records
31.1 TheC&PHeadofServicemustensurethatthefollowinginformationinrelationtoaContractiskept:
a. Pre-tenderresearch,benchmarkingandconsultationinformation;
b. TheapprovedRP2HowweBuyreportincludinganywaivergiven;
c. Theselectionandawardcriteria(asappropriate);
d. Pre-qualificationdocumentssenttoandreceivedfromapplicants(ifapplicable);
e. Tenderandwrittenquotationdocumentssenttoandreceivedfromtenderers;
f.Communicationswithallapplicantsandtenderersthroughouttheprocurementexercise;
g. Anypost-tenderclarificationinformation,toincludeminutesofmeetings;
h.Thecontractdocuments.
31.2 WheretheCouncilhasuseditsowne-sourcingsystem,allelectronicrecordspertainingtothetenderandthetenderingprocessmustberetainedonthesystem,includinganelectroniccopyofthesignedcontract.
32. Contract Register
32.1 CategoryManagersmustensurethatallcontractsletareenteredontotheCouncil’sContractRegisterinaccordancewiththeLocalGovernmentTransparencyCode.ThisactioncanbecompletedviatheCouncil’se-tenderingportal.Whereanothere-tenderingportalhasbeenusedthedetailsmustbesubmittedtowww.gov.uk/contracts-finder.Copiesofallsigned/sealedcontractsmustbeuploadedintotheContractManagementsystemontheCouncil’se-tenderingportal.
32.2 Whencontractshavebeenvaried,extended,novated,assigned,terminated,sub-contractorsauthorisedorchangedinanyway,CategoryManagersandContractManagersmustupdatetheCouncil’sContractsRegisterwiththenewdetailsandifrequiredwww.gov.uk/contracts-finder,andcopiesofallsigned/sealeddocumentationsmustbeuploadedintotheCouncilsContractManagementsystemontheCouncil’se-tenderingportaltoaccompanytheoriginalelectroniccopyContract.
32.3 CategoryManagersandContractManagersmustensurethetimelycompletionandsubmissionofanyContractorcompileddocumentationintotheCouncil’sContractManagementsystemontheCouncil’se-tenderingportal(e.g.annualInsuranceCertificates)thatarerequiredbytheContract.
33. Contract Storage
33.1 TheDirectorresponsiblefortheserviceareamustensurethatallsigned/sealedContractsestablishedinaccordancewiththeseRegulationsarescannedandthescannedcopyoratrueelectroniccopy(withsignature/sealedpagesscannedaccompanyingit)isstoredontheCouncil’sContractManagementsystemandthattheoriginalcopyofthecontracthasbeenreceivedbytheDeedsteaminCroydonLegalServices.
Section 5 – Contract Mobilisation
TENDERS AND CONTR ACTS REGUL ATIONS 2019 22
34. Managing Contracts
34.1 AllDirectorsaretonameaContractsManagerorapersonresponsibleforthemanagementofthecontractforallnewcontractswhicharecoveredbytheseRegulations.AllcontractsmusthaveanamedCouncilcontractowner(normallytheDirectoroftheservicearea)andContractManagerfortheentiretyofthecontractterminaccordancewiththeCouncil’sagreedcontractmanagementmodel.
34.2 ContractmanagersmustfollowtheproceduresandreportingrequirementssetoutintheCouncil’sProcurement&ContractManagementHandbook.
34.3 ContractManagerswillberesponsibleforthedaytodaymanagementandreportingoftheircontracts.ThisshallincludemonitoringandreportingusingtheCouncil’sContractManagementToolKit.Forcontractswithavalueofover£1,000,000perannum,monitoringofperformancewillincludethetimelyreturnoftheBalancedScorecardtowww.Contracthub.comandfullcompletionofScorecardsandActionPlans.
34.4 ContractPerformancewillbemeasuredagainstthefollowingminimumcriteriabutmaybesubjecttochange:
i) Performance;
ii) Compliancewithspecificationandcontractterms;
iii)Financeandcosts;
iv)Riskmanagement,
v) SocialValue;
vi)Residentsatisfaction;
vii)GDPR;
viii)HealthandSafety;
ix)ModernSlaveryPrevention;and
x) EqualitiesandFairness.
34.5 Forallcontracts,itistheresponsibilityoftheContractManagertoraiseanyincidentsofpoorperformanceimmediatelywiththeContractorandseekrectificationthroughthedevelopmentofanActionPlan.ThisActionPlanmustbeupdatedtorecordprogressuntilperformanceimprovestoa
satisfactorylevel.AtwhichtimetheActionPlanmaybeclosed.Ininstancesofparticularlypoorperformance,orpersistentpoorperformance,theContractManagershouldconsidertheappropriatecourseofactiontotakeunderthecontract,takingadviceasappropriate.
35. Risk Assessment & Contingency Planning
35.1 Provisionforresourcesforthemanagementofthecontract,foritsentirety,mustbeidentifiedinthebusinesscaseandRP2HowweBuyreport.CCBshouldbekeptuptodateasrequiredviatheCouncil’sCCBprocess.
35.2 Forallcontractswithavalueof£100,000andgreater,thecontractmanagermust:
a. Maintainariskregisterduringthecontractperiod
b. Undertakeappropriateriskassessmentsandforidentifiedrisks
c. Ensurecontingencymeasuresandbusinesscontinuityplansareinplaceandareregularlyreviewedaspartofcontractmanagement.
36. Contract Monitoring, Evaluation & Review
36.1 Allcontractsvaluedat£100,000andgreateraretobesubjecttoregularformalreviewswiththecontractor.Aninitialreviewmustbedoneatthefirst3monthsofacontractstartdateandon-goingreviewswillthenbeconductedonaregularschedule.TheinitialreviewcanbedonesoonerduetothelengthofcontractandshouldbeagreedwithCCB.
36.2 AformalreviewprocessmustbeappliedtoallcontractsdeemedtobeHighRisk,HighValue,orHighProfile.ThisprocessmustbeappliedatkeystagesofmajorprocurementsandmustcomplywiththeCouncil’sProcurement&ContractManagementHandbook.
36.3 Duringthelifeofthecontract,theContractManagermustmonitoracontractinaccordancewiththeCouncil’sProcurement&ContractManagementHandbook.
36.4 DuringthelifeofFrameworkAgreementsandDPS,theContractManagerwillupdateCCBonperformanceandawardsofcontractsasagreedbyCCBinthereportinaccordancewithRegulation28.
Section 6 – Contract Management
TENDERS AND CONTR ACTS REGUL ATIONS 2019 23
Terms Description/MeaningAmount of an estimate
Thesumofmoneyestimated,netofValueAddedTaxbutinclusiveofanyothertaxorduty.However,theamountofanysuchtaxordutypayablemustbestated.
Award Report Aprocurementawardreportintherelevantformat(dependantontheContractvalue)whichisprovidedtotheCCBpriortotheawardofanyContract,extensionforthepurposesofprovidingthenecessaryapproval(subjecttotheContractvalue).
Category Manager TheCouncilofficerresponsibleforaparticularcategoryofspendandwholeadsoncommissioningandprocurementactivityorDPS.
Call-off Contracts ContractsselectedandawardedfromanexistingFrameworkAgreementorDPS.
Chair of CCB TheDirectorofCommissioning&Procurement.
CCB Contracts&CommissioningBoard-theboardofCouncilofficersdesignatedtomanageandactasthedecisionmakerorrecommendingbodywithinthescopeoftheseRegulations,forCouncil-widecommissioningandcontractingactivities(excludinglanddisposalsandpropertytransactionmatters).
CCS CrownCommercialServices.
CCR 2016 TheConcessionContractsRegulations2016andanysupersedeorreplacementlegislation.
‘CDM’ Construction(DesignandManagement)Regulations2015.
C&P Commissioning&ProcurementDivisionwithinResourcesDepartmentresponsiblefortheCouncil’sTendersandContractsRegulations.
Central Buying Team
TheCouncil’scentralBuyingTeamwithinCommissioning&ProcurementDivisionresponsibleforallgoods&servicesprocurementbelow£100,000.
Central Purchasing Body
AContractingAuthoritywhichprovidescentralisedpurchasingactivitiesandwhichmayalsoprovideancillarypurchasingactivities—(a) acquiressuppliesorservicesintendedforoneormorecontracting
authorities;(b)awardspubliccontractsintendedforoneormorecontracting
authorities;or(c) concludesframeworkagreementsforwork,supplies,orservices
intendedforoneormorecontractingauthorities;(for the avoidance of doubt, this is the same definition as provided in the PCR 2015).
Terms Description/MeaningConcession Contract
ConcessionsaredefinedinthepublicsectorprocurementDirective2004/17/EC(“theDirective”)ascontractswheretheconsiderationforthesupplies,worksorservicestobecarriedoutconsistseithersolelyintherighttoexploitthesupply,workorservice,orinthisrighttoexploittogetherwithpayment.
Constructionline Websitethathaspre-qualifiedsupplierswhoprovidegoods,servicesandworksforConstructionrelatedprojects.
Contract Acontractfortheprovision(eithertoorbytheCouncil)ofgoods,servicesorworkshowevertheymaybefunded,butexcludingthosetypesofcontractsormattersreferredtoatRegulation3.3.
Contracting Authorities
TheState,regionalorlocalauthorities,bodiesgovernedbypubliclaworassociationsformedbyoneormoresuchauthoritiesoroneormoresuchbodiesgovernedbypubliclaw,andincludescentralgovernmentauthorities,butdoesnotincludeHerMajestyinherprivatecapacity.
Contracts Finder Aweb-basedportalprovidedforthepurposesofPCR2015Part4byoronbehalfoftheCabinetOffice.
Contract Management System
TheprocessofautomatingContractLifecycleManagement(previously“ContractManagement”),itincorporatesthekeyelementsofthebuyingprocess,suchascommissioningknowledge,specification,requestsforquotation/tenders/e-auctions,evaluation/negotiation,contractformulationandmanagementandiscontainedontheCouncil’sTenderPortal,ContractRegisterandContractManagementsystem.
Contract Manager TheCouncilofficerorexternalpersonappointedtomanageand/ormonitorthetender/contractprocessonbehalfoftheCouncil.
Glossary Of Terms – Appendix A
TENDERS AND CONTR ACTS REGUL ATIONS 2019 24
Glossary Of Terms – Appendix A
Terms Description/MeaningContract Value or Value of a Contract
Avalue:(a) calculatedonthebasisofthefulltermoftheContract.i.e.ifitisa
threeyearcontractwithapossibilityofatwoyearextensionthenthecalculationofthecontractvaluemustbebasedonafiveyearterm;and
(b) notvalueaddedtaxbutinclusiveofanyothertaxorduty.WhereaContractismixed,i.e.haselementsofworks,suppliesand/orservices,toestablishthetypeofcontractandrelevantthresholdforthepurposesofthePCR2015,thecorrectcategorisationoftheContractismadebyreferencetothemain subject(thepartthathasthegreatestvalue)oftheContract.
InrelationtoaFrameworkAgreementandaDPS,thiswouldbethemaximumestimatedvalue,netofValueAddedTax,ofallthecontractsenvisagedforthetotaltermoftheFrameworkAgreementorDPS.
Note:tosetupandaccessaFrameworkthiswillneedtobestipulatedintheappropriateCCBreporttopreventafurtherandseparatereportbeingrequired;onetosetuptheFrameworkandonetoaccessit.
Council’s approved estimates
TheCouncil’sbudgetapprovedannuallybyfullCouncilandincludesestimatesofbothcapitalandrevenueexpenditure
Council’s Declaration of Confidentiality and Interest Form
ThisformisavailableontheCouncil’sintranet:https://intranet.croydon.gov.uk/working-croydon/finance/commissioning-and-procurement/forms
Council’s Constitution
ThearticlesoftheconstitutionfortheLondonBoroughofCroydon,whichsetouttherulesandframeworkwhichgoverntheoperationofthecouncil;theresponsibilityforfunctions;procedurerules,codesandprotocolsforspecificpartsofdecision-makingprocesses.
Council’s Financial Regulations
ThefinancialregulationsascontainedinPart4.HoftheCouncil’sConstitution.
DPA DataProtectionAct2018.
Director (a) ADirector,aHeadofServiceoranyotherOfficercurrentlyidentifiedasbeingaDirector,withrelevantauthorityunderadepartmentsschemeofauthorisations;
(b) ExecutiveDirector;
(c) AnominatedOfficerwithdelegatedauthoritytoincurexpenditure.
Terms Description/MeaningDynamic Purchasing System (“DPS”)
Acompletelyelectronicpurchasingsystemprocedureavailableforcontractsforworks,servicesandgoodscommonlyavailableonthemarket.For the avoidance of doubt, please refer to Regulation 32 to the PCR 2015 for a more detailed definition.
e-sourcing (tendering)
Aninternetbasedprocesswhereinthecompletetenderingprocess,fromadvertisingtosubmittingandreceivingtender-relatedinformation,isdoneonline.
EU Rules WheretheEURulesarereferenced,thismeansitisalsotoincludeEUPublicProcurementDirectives2015andEU2014/24/EU(whichandtheprinciplesoftheTreatyontheFunctioningoftheEuropeanUnionasapplytotheContractsasimplementedintoUKlawbyregulations.
Evaluation criteria ReferstothemeasuresusedineithertheSQorITTtoundertakeanassessmentofpotentialproviders.i.CriteriausedintheSQarereferredtoas‘selectioncriteria’.ii. CriteriausedintheITTarereferredtoas‘awardcriteria’.
Expression of Interest (“EoI”)
Astatementbyaprospectiveprovideroftheirintentiontocompeteforatenderingopportunityfortheprovisionofgoods,servicesand/orworks.
Executive Director TheChiefExecutive;or Aheadofoneofthefollowingdepartmentsoranysuccessortothem:ExecutiveDirectorofResources;ExecutiveDirectorofPlace;ExecutiveDirectorofChildren,Families&Education;ExecutiveDirectorofHealth,Wellbeing&Adults;ExecutiveDirectorofGateway,Strategy&Engagement;whoundertheirschemeofauthorisationscanexercisethepowersreferredtointheseRegulations.
Executive function MattersreservedtotheLeaderundertheCouncil’sStrongLeaderModelandassetoutintheLeadersSchemeofDelegation.
External Advisors & Consultants
Individualswhoarecontractedtofulfilarole,notalreadycoveredbytheCouncil’sestablishment,whichmaybeofaspecialistnature.
Framework Agreement
Anagreementbetweenoneormorecontractingauthoritiesandoneormoreeconomicoperators,thepurposeofwhichistoestablishthetermsgoverningcontractstobeawardedduringagivenperiod,inparticularwithregardtopriceand,whereappropriate,thequantityenvisaged.Thephrase‘Framework/s’shallalsobeconstruedaccordingly.For the avoidance of doubt, this is the definition provided in Regulation 33(2) PCR 2015.
TENDERS AND CONTR ACTS REGUL ATIONS 2019 25
Glossary Of Terms – Appendix A
Terms Description/MeaningGPAC TheGeneralPurposesandAuditCommitteeconstitutedunderthe
Council’sConstitutionandincludesanyotherCouncildecisionmakingbodyorindividualMemberorofficerwhomayfromtimetotimehaveresponsibilityforconsiderationoftheseRegulations.Note: GPACisaNon-Executivefunction.
Grant Anarrangementwheremoneyisgivenforastatedpurposewithorwithoutconditionsattachedandwhichisforthebenefitofallorasectionofthecommunity,butisnotaprocurementofservices.
How we Buy Report (RP2)
ThistheprocurementstrategyreportoftenreferredtoasRP2.TemplatecanbefoundontheProcurementGovernanceSharePointpage.
In Writing Referstopaperandelectronicrecords.
IIOB TheInvestinginourBoroughreport,producedbyCommissioning&ProcurementforCabinetlistingallRP2HowweBuyandRP3ContractAwardreportsthatrequireapprovingbyCabinetMemberorCabinetetc.
ITT (Invitation to Tender)
Thestepofacompetitivetenderingprocessinwhichsuppliersorcontractorsareinvitedtosubmitsealedbidsforthesupplyofspecificandclearlydefinedsupplies,servicesorworksduringaspecifiedtimeframe.
KPI KeyPerformanceIndicator-atypeofperformancemeasurementusedtoevaluatethesuccessofaparticularactivitycarriedoutbyaprovider.
LGPS LocalGovernmentPensionScheme.
The Leader or nominated Cabinet Member
TheLeaderofCroydonCounciloranynominatedCabinetMembertowhomtheyhavedelegatedauthoritytoexercisetheirpowersreferredtointheseRegulations.
Light Touch Regime (“LTR”)
Theprocedurethatmustbefollowedinrelationtosocialandotherspecificservices(includinghealthcare,cultural,educationalandlegalservices)underRegs74-76PCR2015.
London Living Wage (“LLW”)
ThebasichourlyratebeforetaxandotherdeductionsdeterminedandpublishedbytheGreaterLondonAuthorityfromtimetotime.
Low Value Expenditure
Expenditurewhichisbelow£100,000invalue.
LTR Services ServicessubjecttotheLight-TouchRegime.ThereisanOJEUadvertisingrequirementandotherspecificobligations,butahigherfinancialthresholdhasintroducedfortheLightTouchRegimetoapply.
Make or Buy Report (RP1)
Thereportisastrategicchoicebetweenin-housingtheservicesrequiredand/orbuyingitexternally(outsourcing).ItisadiscussiondocumentthathastobebroughttoCCBforagreement.
Terms Description/MeaningMost Economically Advantageous Tender (“MEAT”)
ThetenderingapproachusedtoprovideabalancebetweenqualityandcostOr100%assessmentofqualitytoafixedbudgetor100%pricewhereaminimumqualitythresholdismet.
Nominated Cabinet Member or Member
CabinetMemberwithinwhoseportfolio,asidentifiedbytheLeadersSchemeofDelegations,theservicewhichisthesubjectmatterofthecontractfalls.
Non-Executive function
MattersreservedtoFullCouncil/FullCommitteeormattersthataredelegatedinaccordancewiththeSchemeofDelegation.
Officer AnOfficerauthorisedbytheappropriateDirectororExecutiveDirectortoleadintherequirementsforaprocurementandcomplywiththeseregulations.
OJEU TheOfficialJournaloftheEuropeanUnion.
Output (or Outcome) Based Specification (“OBS”)
Aspecificationthatfocusesonthedesiredoutputsofaserviceinbusinessterms,ratherthanadetailedtechnicalspecificationofhowtheserviceistobeprovided.
Parent Company Guarantee
ParentCompanyGuaranteesareprovidedbyeitherthecontractor’simmediateparentorotherholdingcompanyandoperateasaguaranteetoensureaContractisproperlyperformedandcompleted.Intheeventofacontractordefault,theparentisobligedtoremedythebreach.
PCR 2015 ThePublicContractsRegulations2015andanysupersedeorreplacementlegislation.
Performance Bond PerformanceBondsaretypicallyprovidedbybanksorinsurancecompanies.Theyprovideaguaranteeofpaymentuptoastatedamountofmoneyshouldalossbesufferedasaresultofthecontractor’sbreachofacontractualobligation.
Person Includesthefollowing:(a) Agroupofpersons;(b) Afirm;(c) Apartnership(d) Anunincorporatedassociation;(e) Acompany;(f) Anotherlocalauthorityoragroupoflocalauthorities(g) AGovernmentDepartment(asrepresentedbytheSecretaryofState);(h) Astatutorybody;i) Apublicutilitythathasbeenprivatised.
TENDERS AND CONTR ACTS REGUL ATIONS 2019 26
Glossary Of Terms – Appendix A
Terms Description/MeaningPIN PriorIndicativeNoticeforpublishingintheOJEU,tonotifythemarketof
apossibleopportunity.SeePCR2015Reg.48forfurtherinformation.
Post Tender Clarification
Tenderorbidclarificationsthatmaybecomenecessaryduringtheevaluationoftenders.
Post Tender Negotiation
Contactbetweenthebuyerandtenderers,separatefromTenderClarification,torefineandimprovethebid(s)inordertoensurethatprices,deliveryorassociatedtermsofthecontractarecompetitive.Note: thisprocessisonlyavailableasindicatedintheseRegulations.
Another ‘Public Body’
AnycontractingAuthoritywithinthemeaningoftheEUPublicProcurementDirectivesandthePublicContractsRegulations2015.
Regulations AlltheRegulationsaslistedbelow.
S151 Officer TheDirectorofFinance,Investment,RiskandS151Officer
Scheme of Authorisations
Thedepartmental‘schemeofmanagement’settingoutwhoisauthorisedtomakewhatdecisionswithinthatdepartment.
Small and Medium Enterprises SME
ThemainfactorsdeterminingwhetheracompanyisanSMEare:1. numberofemployees;and2. eitherturnoverorbalancesheettotal.
Company category
Employees Turnover Balance sheet total
Medium-sized < 250 ≤ € 50 m ≤ € 43 m
Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤ € 2 m ≤ € 2 m
Theseceilingsapplytothefiguresforindividualfirmsonly.Afirmwhichispartoflargergroupingmayneedtoincludeemployee/turnover/balancesheetdatafromthatgroupingtoo.
Social Value TheprocesswherebytheCouncilmeetsitsneedsforsupplies,services,worksandutilitiesinawaythatachievesvalueformoneyonawholelifebasisintermsofgeneratingbenefitstosocietyandtheeconomy,whilstminimisingdamagetotheenvironment.SeetheCouncil’sSocialValuePolicy.
Social Value Act ThePublicServices(SocialValue)Act2012.
Social Value Toolkit Thedocumenttitled‘InspiringandCreatingSocialValueinCroydon’whichprovidesadviceontheprocessandbestpracticeprincipleswhentryingtoleveringreatsocialvalueinrespectofcommissioning.
Terms Description/MeaningStandstill Period Aperiodoftimewhenanauthoritycannotenterintoacontractwitha
supplieruntilithasconcluded,inaccordancewithRegulation87ofPCR2015.
Strategy Report Aprocurementstrategyreportintherelevantformat(dependantontheContractvalue)whichisthenprovidedtotheCCBatthebeginningofeachprocurementexercise.Asaminimum,thisreportshouldsetouttheprojectplan,proposedprocurementroute,anyproposeddeparturesfromstandardprocurementpractice,theevaluationapproach,risks,timetable,projectstructureanddetailsoftheContract.
SQ SupplierSelectionQuestionnaireaprocessusedtoidentifypotentialsuppliersthataremostcapableofperformingacontract.
Tendering and submitting a tender
IncludesanyquotationoractiontakenbyanypersonseekingtoenterintoacontractwiththeCouncil,whichissubjecttotheseRegulations.
Third Sector Therangeofnon-statutoryserviceproviderssetupasnotforprofitorganisations.Theseencompassthetraditionalvoluntaryandcommunitysector,co-operatives,socialenterprisesandregisteredsociallandlords.Forthepurposesofthisdocumenttheterm‘thirdsector’isusedtodenotethisgroupoforganisations.
TUPE TransferofUndertakings(ProtectionofEmployment)Regulations2006.
UK Regulations ThePCRand/orCCRandanynationallegislationthataffectsContractsundertheseRegulations.
Value Added Tax (“VAT”)
ValueaddedtaxaschargeableundertheValueAddedTaxAct1994.
TENDERS AND CONTR ACTS REGUL ATIONS 2019 27
Glossary Of Terms – Appendix A
Terms Description/MeaningValue for Money (“VfM”)
ThetermusedtoassesswhetherornottheCouncilhasobtainedthemaximumbenefitfromthegoods,suppliesandservicesitacquiresand/orprovides,withintheresourcesavailabletoit.Itnotonlymeasuresthecostofgoods,suppliesandservices,butalsotakesaccountofthemixofquality,cost,useofresources,fitnessforpurpose,timelinessandconveniencetojudgewhetherornot,whentakentogether,theyconstitutegoodvalue.AchievingVfMmaybedescribedintermsofthe‘threeEs’-economy,efficiencyandeffectiveness.
Variant bid Abidwhichisdifferentfromthatspecificallyrequestedbythecontractingauthorityinthetenderdocuments.Examplesofvariantbidsarethoseproposingdifferentpricingstructures,ornewandinnovativewaysofdeliveringaservice.
Weightings TheweightingsallottedtothecriteriachosentoevaluatetheSQ/ITTtoreflectwhatismostimportantinanyparticularprocurement.Weightingsmaybeexactpercentagesoraspecifiedrange,wherethisisappropriateinviewofthesubjectmatter.
Working Day AnyotherdayotherthanaSaturday,SundayandanybankorUKpublicholidays.
TENDERS AND CONTR ACTS REGUL ATIONS 2019 28
Procurement Process Flowchart – Appendix B
Reg 11 Goods / Services /
Works up to £10,000
Two written quote from a local supplier
(if poss.)
Reg 11 Goods / Services / Works
over £10,000 up to £100,000
Three written quotes min 2 local suppliers
(if poss.) via the Council’s Central
Buying Team
How we Buy (RP2) procurement strategy
Goods & Services £100,000 >
Works £500,000 >
Approval Cabinet
over £5,000,000 > endorsed by CCB
via Investing In Our Borough Report
Approval CCB up to
£5,000,000
Reg 11Goods / Services /Works
Over £100,000
£100K to £500K Approval Chair of
CCB no deviations from approved
How we Buy
Over £500kApproval Cabinet
Member £500,000 up to £5,000,000 Cabinet over
£5,000,000 endorsed by CCB via Investing
In Our Borough Report
£100K to £500K Approval chair of CCB on recommendation
from CCB
Reg 28Award of Contract
(RP3)
Reg 30Contract
Extensions
Approval CCB if term & value incl original award
ContractVariations/extras
in accordance with Reg. 30
Reg 30Contract Variations
/ Extras
Approval £1,000,000 or
>25% of original contract value CCB new contract value
Approval Cabinet Member or Cabinet
Approval upto 25% of original contract value,
Financial Scheme of Delegation,
new contract value < £1,000,000
Any Goods / Services / Works regardless
of value
Is there a Council Contract that supplies
the same or similar
Please contact the Contract Manager or follow the guidance
to place order
Yes
No
or
or
Legal Departmentto execute
“True electronic copy’ of contract
plus scanned signature pages
Upload electronic copies onto
Contract Management System
Hard copy & original of Contract remain with Legal & storedin the Deeds room
or
or
Signing & Sealing of Contracts
Spend ApprovedFinancial Scheme
of Delegation ensuring pre-requisite checks
of suppliers have been completed
Spend ApprovedFinancial Scheme
of Delegation ensuring pre-requisite checks
of suppliers have been completed
If required for Contracts to be sealed