Quotations and Tenders
Low Value Procurement
Procurement whether for supplies, services or works with a contract value of below £75,000, when whole life costs are taken into consideration, are for the purposes of procurement rules defined as low value procurement.
We will normally contact at least three suitable suppliers to obtain written quotations. Where possible at least one local supplier is included.
The procedures for awarding the order are generally less rigid than full tendering but we will always aim to provide fairness and equal treatment for suppliers and best value for the council.
We will issue a brief description of the requirement and request, in return, a brief summary of how or what the supplier will provide together with an appropriate cost breakdown. Low value procurements are usually acquired using our purchase order standard terms and conditions.
High Value Procurement
Contracts with a contract value above £75,000, when whole life costs are taken into consideration, are for the purposes of procurement rules defined as high value procurement.
Contracts with an anticipated whole life value of over £75,000 are required to be appropriately and proportionately advertised and formally tendered. These tenders are managed by the procurement team offering guidance to client departments and assisting with the financial assessment of tender returns.
Although other tendering methods are used from time to time, the most commonly used by us are the 'Open' or the 'Restricted' procedures.
Restricted is where an initial selection process takes place via a Pre-Qualification Questionnaire (PQQ) and an Invitation to Tender (ITT) is issued to short listed contractors who then have the opportunity to submit a tender for evaluation.
Open, is when the ITT is issued to all contractors who express an interest, they then have the opportunity to submit a tender for evaluation.
A tender process will generally be more formal and regulated than a Request for Quotation (RFQ), including a detailed specification for the requirement and a more detailed solution description and price breakdown to be provided by the tenderers. We do however adopt tendering processes in-line with the size and complexity of the opportunity. Tender evaluation criteria is pre-set and notified in advance to all potential bidders.
There are further procurement threshold values set by the European Union (EU) which require opportunities to be advertised in the Official Journal of the EU (OJEU) and require further tendering rules to be applied.
Relevant EU and Council Thresholds
| Total Value £ | Type of Contract | Procedure to be Used |
|---|---|---|
| 0 - 10,000 | Works, Supplies and Services | At least one written quote |
| 10,001 - 74,999 | Works, Supplies and Services | At least three written quotes |
| 75,000 - 181,302 | Works, Supplies and Services | At least three tenders |
| 181,302 plus **EU Threshold for supplies and services | Supplies and Services | EU Rules apply - full competitive process with tenders following OJEU advertisement |
| 181,302 to 4,551,413** | Works | Full competitive process with tenders following advertisement by public notice |
| 4,551,413** plus **EU Threshold for works | Works | EU Rules apply - full competitive process with tenders following OJEU advertisement |