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Supplier guide - introduction

This guide gives businesses and other organisations a better understanding of how we procure works, goods and services. It explains our approach to the seeking and acceptance of tenders and quotations, along with the relevant National and European legislation governing our approaches. There is a great deal of competition for our contracts, in order to win business potential suppliers will need to be competitive in price and provide high quality goods and services.

Introduction

Information about our procurement

We currently spend in excess of £320m each year on bought in goods, services and works. One of the ways in which we can achieve best value for the citizens of Warwickshire and deliver efficiencies, is to ensure that everything - from pencils to multi-million pound projects - is purchased effectively and efficiently.

In November 2010, we formally endorsed a sub regional approach to procurement to support its ambitious savings agenda. We will be looking to work in procurement partnership whenever and wherever it can but with the emphasis being on the Warwickshire, Coventry and Solihull sub region. To support this, we have agreed a Shared Procurement Strategy with Coventry City Council and Solihull Metropolitan Borough Council. As a consequence of the shared strategy, all 3 authorities now have a shared definition of procurement:

“The whole process of acquisition from third parties and in-house providers and covers goods services and works. The process spans the whole life cycle from initial concept and definition of business need to the effective management of markets, through to the end of the useful life of an asset or end of services contract. It involves options appraisals and the critical “make or buy” decision which may result in the provision of services in-house in appropriate circumstances”

We recognise the role that Procurement has to play in achieving its wider corporate objectives including its social, economic and environmental ambitions. We are committed to non-discrimination in its procurement, with fair and transparent procedures and equal treatment of all potential suppliers.

We want to maximize the opportunity for a wide variety of organisations from all sectors including the Small and Medium Size Enterprise (SME) community and the Voluntary and Community Sector (VCS), to trade with us helping them become ‘Fit to Compete’ and to win our business. We are also committed to improving its environmental performance and will be looking to its suppliers to assist in this.

We recognise the benefits of working effectively with its suppliers and wants its suppliers to provide innovative solutions and demonstrate a commitment to work with us to improve our efficiency and reduce our costs.

We expect the introduction of new technology to be have a significant impact on the costs associated with transacting with our suppliers. Our suppliers must therefore expect to see more procurement processes undertaken using an e-tendering platform and with the introduction of our new financial system 'Agresso' more order / invoice / payment transactions being undertaken electronically.

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Why do business with us?

  • We are one of the County’s largest purchasers of goods, services and works.
  • We are a financially stable customer and we pay promptly usually within 30 days.
  • We have a legal duty to be fair, honest and professional in our choice and subsequent treatment of our suppliers.
  • We promote ethical, environmentally sound and non-discriminatory approaches that benefit the County and those who live and work here.
  • Wherever possible we seek innovative solutions to our requirements.
  • We want to support local businesses and are keen to promote partnerships where appropriate.

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Strategic Procurement Unit and Departments of the County Council

We have a Strategic Procurement Unit responsible for providing a professional lead on procurement; coordination of corporate arrangements and ensuring that effective procurement processes and practices are in place and followed by our staff.

The approval of everyday purchasing and contracting is delegated to Departmental Managers. Managers may purchase against contracts they have established themselves, or against central or ESPO contracts where they exist, so long as they have appropriate budget provision. The initiation of new and substantial procurements, especially where they involve decisions on changing the nature of service provision, may need Councillor approval.

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Best Value

Best Value is “the optimum balance between quality and cost”.

“Better procurement should be an integral part of best value as the achievement of best value depends on good procurement”.

Source: The Byatt Report into Local Government Procurement.

The need to secure 'Best Value' applies to all procurement exercises undertaken by us. We must ensure value for money throughout. From the buying process and the look to secure continuous improvement throughout the life of the contract. This means that contracts will not normally be awarded on the basis of lowest price alone but will be assessed against a combination of whole life costs and the quality required to meet the users needs. The whole life cost assessment might include the cost of acquisition and also takes into consideration indirect and administration costs as well as cost of ownership, residual values and disposal costs if appropriate.

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The National Procurement Strategy

In 2003 the Office of the Deputy Prime Minister (ODPM) in conjunction with the Local Government Association published the National Procurement Strategy which sets out the procurement vision for the public sector.

The aim of this is to provide better public services, achieve continuous improvement, obtain better value for money and operate a mixed economy which includes small firms, social enterprises, minority businesses and the voluntary and community sector.

The targets set by the ODPM which are to be achieved by local authorities by the end of 2006 include:

  • Develop and implement a procurement strategy;
  • Be involved with a regional centre of excellence in procurement;
  • Identify opportunities for collaboration with neighbouring councils;
  • Implement an appropriate e-Procurement solution;
  • To stimulate markets and achieve community benefits;
  • Inform the local business community how to do business with the council.

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Supplier checklist

The checklist is only intended as a guide to help prospective suppliers understand our policies and priorities. This list is not exhaustive, but it will give you an idea of how closely your company matches our preferred supplier profile.

We do not expect suppliers to be able to answer yes to every question. Different matters will be important in different cases and the specific requirements of each contract will be stated in the “Invitation to Tender” document.

Note - suppliers should not begin work or incur any expense in seeking to comply with any aspect of the checklist on the presumption of winning business from us. Any work that you do undertake is entirely at your own risk and cost.

Warwickshire County Council supplier checklist (msword, 42Kb)

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How we buy goods and services

Standard terms and conditions for Contracts

These are the standard terms and conditions, as varied from time to time, which will apply to all our ('the Council') contracts except where we specifies that different terms and conditions will apply. If there is any conflict between these standard terms and conditions and any specific terms and conditions then the specified terms and conditions will take precedence.

Contracts for goods/services - standard umbrella terms, and additional special terms for goods and services:

Standard form of Contract (pdf, 215Kb)

Specific terms for goods (pdf, 62Kb)

Specific terms for services (pdf, 71Kb)

Contracts for IT good/services - Standard umbrella terms, and additional special terms for IT deliverables and services:

Standard form of IT contract (pdf, 258Kb)

Specific terms for IT goods (pdf, 60Kb)

Specific terms for IT services (pdf, 98Kb)

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Terms and Conditions for Orders

Terms and Conditions for orders (pdf, 38Kb)

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Different types of contract

Framework Arrangements

An arrangement where terms and conditions are agreed with the suppliers of goods or services, which allows call-offs to be made without the need to go through another formal tendering process. The contract length will usually be 2 or 3 years with a disclosed option to extend for a specified further period. All the purchaser has to do, once the framework arrangement has been set up by competitive tender, is to place orders for goods or services as they are needed.

Framework arrangements are based on large volume purchasing. By aggregating purchasers' potential needs, individual purchasers are able to obtain individual goods and services at prices below those normally charged, or with special added benefits or more advantageous conditions. A contract does not exist in law until each individual order is placed.

Our framework arrangements are normally tendered by the Eastern Shires Purchasing Organisation (ESPO). Examples include stationery, cleaning materials and food. Where framework arrangements exist, purchasers are not expected to "shop around" but to use the existing arrangements. EU Directives and Contract Standing Orders have already been satisfied and all the purchaser needs to do is place an order. Where more than one supplier is offered under the arrangement, prices from each supplier may be compared at the time of the purchase.

One-off Contracts

These are contracts to meet a specific need and will generally be short-term contracts to supply goods and services to meet an individual requirement, e.g. the supply of specialist scientific equipment for the Trading Standards Service or the supply of consultancy services for a particular project.

A one – off tender will normally be carried out by the individual department, the department may call upon the services of ESPO or the Warwickshire County Council Business Consultancy Unit to help them.

Renewable or “period” Contracts

These are contracts for services required on a regular basis and are generally let over a longer period of time and will be monitored on a regular basis, e.g. school meals, building cleaning, grounds maintenance. Renewable contract tenders are usually carried out with the help of ESPO.

Commissioning

This is an arrangement where the council and another public body work together to arrange for something to be provided, and particularly applies to social services contracts.

Partnership Arrangements

This is where the County Council seeks to develop a relationship with a supplier based on "partnership principles" (but not a formal partnership) with a supplier thereby sharing the costs and risks involved, for example, civil engineering works and individual building schemes.

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How the value of the contract affects the purchasing procedure

As a local authority, there are regulations at a European, national and local level which we need to follow when buying goods, services and works.

All contracts must be let in accordance with Warwickshire County Councils internal rules and regulations which govern its procurement and contracting activities. Our internal rules and regulations are agreed by the Council and form part of the Council's Constitution. Contracts must also be let in accordance with the requirements of the EU Procurement Directives, which have been incorporated into UK law.

The procurement procedure, which the we follow, is largely determined by the aggregated value of the contract (i.e. If we are letting a 3 year contract with an option to extend for a further 1 year then the aggregated value is the value of the contract over 4 years). There are three procurement procedures that the council may follow:

  • Minor Contracts/ Low Value (with an aggregate value below £30,000) - These items are usually purchased through ESPO or other centrally negotiated arrangements. If not, then dependent on the aggregate value, Council Officers are required to obtain up to 3 written quotations and award the business to the company providing the Best Value quotation.
  • Ordinary Contracts/ Intermediate Value (with an aggregate value above £30,000 but below £156,442) - Usually, these contracts will be advertised on the Warwickshire County Council website, and, if appropriate, in the Official Journal of the European Union and/or trade journal. We will undertake a formal competitive procurement exercise for this level of contract and evaluate/award in terms of value for money and quality (Most Economically Advantageous Tender).
  • Major Contracts/ High Value - All contracts with an aggregate value over £156,442 must be awarded following a competitive procurement process and we evaluate/award in terms of value for money and quality (Most Economically Advantageous Tender). Contracts with values, which exceed the thresholds determined by the European Procurement Regulations (with the exception of some exempt services), must be advertised in OJEU (Official Journal of the European Union).

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What are EU Procurement Directives?

We have a legal requirement to comply with the European Procurement regulations, which govern the way in which public sector procurement is conducted for contracts above certain specified thresholds. The European Procurement regulations have been enacted into UK law under the 'Public Contract Regulations 2006' as amended.

The Regulations require us to follow detailed procedures for all procurements (excluding those services specifically exempted within the EU regulations) with an aggregate contract value above the following financial thresholds.

The thresholds that apply between 1st January 2010 and 31st December 2011 are:

  • Services: £156,442
  • Supplies (Goods): £156,442
  • Works: £3,927,260

EU thresholds are fixed for periods of 2 years with the next change to threshold values being effective from 1st January 2012. As soon as revised threshold values are confirmed this website will be updated

Under the EU Procurement Directives, we can conduct their procurement using one of the following processes. The tendering process chosen is at the our discretion.

  • Open Procedure - A one-stage process, where all interested providers responding to an advertisement will be invited to submit a full tender.
  • Restricted Procedure - A two-stage process in which potential contractors expressing an interest in bidding are evaluated first through a pre qualification questionnaire. Then a shortlist is drawn up from the evaluation exercise for the purpose of inviting tenders.
  • Negotiated Procedure -This is when the Council, under certain limited circumstances, negotiates with one or more organisations of its choice.
  • Competitive Dialogue Procedure - This is intended to be used for large complex projects, in circumstances where it is difficult to assess what might be the best technical, legal and/or financial solutions. This is a newer procedure than the other procedures and is now more commonly used than the Negotiated Procedure. It is usually used where the Negotiated Procedure would previously have been used.

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Approved Supplier Lists

Approved or standing lists are lists of companies who are considered able to carry out work to necessary standards and will be invited to tender for specific work or services. Being accepted on a standing list does not guarantee the award of contracts. Our departments use only a very few approved lists for items.

Property Services

The Council's Property Services Department no longer maintains its own approved list of contractors and, instead, uses the services of Constructionline when the need arises to short list contractors to tender for individual projects.

Constructionline is a contractor pre-qualification service provided for the public sector and operated by Capita Symonds Ltd in partnership with the Department for Trade and Industry. Further details can be found on the Constructionline web site.

Opportunities to tender for building and engineering works have reduced in recent years as the department has adopted ‘partnership’ working with small groups of contractors. Partnership contracts are usually based on the National Schedule of Rates and are now used for most of our planned and reactive building and engineering maintenance work and also minor works and major contracts. Partnership contracts usually run for four years after which they are re-tendered.

Advertisements are placed in the local press and suitable trade journals when partnership contracts are due for renewal to which interested contractors are invited to respond. Partnership contract renewals over a certain value also have to be advertised in accordance with European procurement arrangements which involve the placement of Notices in the European Journal. In addition, it is intended to post details of forthcoming partnership contract renewals on the department’s web site.

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Eastern Shires Purchasing Organisation (ESPO)

The Eastern Shires Purchasing Organisation (ESPO) is a Local Authority purchasing and distribution consortium, formed in early 1981. ESPO was established by its Member Authorities to provide a comprehensive purchasing service to their spending departments and other approved customers.

ESPO's membership covers Norfolk, Cambridgeshire, Leicestershire, Lincolnshire, Warwickshire, Leicester City and Peterborough City but ESPO also supplies to other areas which are not members of the consortium.

ESPO supplies schools, colleges, County Councils, City and District Councils along with other statutory bodies such as charitable organisations which elect to make use of its specialised knowledge and services.

ESPO currently manages expenditure in excess of £400 million each year on goods and services. These are supplied to over 14,000 organisations with more then 19,000 individual customer delivery points.

For more information about ESPO and how to become one of their suppliers please visit their web page how to become an ESPO supplier.

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Advertising Contracts

We advertise our tender opportunities to ensure openness of process, equality of opportunity, compliance with legal requirements and to achieve maximum competition thereby ensuring best value for the money we spend.

If you are interested in supplying us you are advised, as a minimum, to check the WCC Tender Opportunities page on a weekly basis.

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How to respond to a tender advert

A business interested in bidding or tendering for work should carefully follow the instructions contained within the advert. In the first instance, this usually means a formal application to the named contact detailed in the advertisement. This can be done in writing, fax, e-mail or telephone call (followed up by a written application). The advert will usually state the process by which, the tender will be let.

If the contract is being tendered using a 2 stage tendering process, the Council will, on receipt of the application, forward a pre-qualification questionnaire (PQQ) to the applicant which needs to be completed and returned, accompanied by all the supporting information requested in the PQQ. The information in the PQQ will be evaluated and used to shortlist potential bidders, prior to issuing formal tender documents to the shortlisted suppliers.

If the contract is being tendered using a 1 stage tendering process, the Council will forward the tender documents once the application is received. The PQQ as outlined above will usually be completed at the time of tendering and will form part of the tender evaluation process.

Tender documents will usually be sent in hard copy, but as electronic systems are developed they will be sent out electronically. Applications may have to be accompanied by a non-returnable fee for the documents and where this applies, details will be included in the advert.

We have developed a Standard Tender Pack for low value low risk contracts:

Standard Tender Pack (msword, 168Kb)

Hints and tips for completing our tender pack:

  • Don't leave things until the last minute
  • Answer the questions posed, not the ones you would have preferred
  • Be sure your goods or service match the requirement
  • Address the selection criteria
  • Make sure references and referees are relevant to your bid

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