How to do business with Maidstone Borough Council
Rules and regulations
1. As a local authority, there are regulations at a European,
national and ocal level which the Council has to follow when
procuring goods, services and works and when establishing approved
tender lists.
2. EUROPEAN RULES - All public sector contracts
no matter what their value within the European Union are covered by
a treaty which incorporates the free movement of goods and services
and which prevents discrimination against firms on the grounds of
nationality.
The principles of the treaty are backed up by a series of EC
Procurement Directives:-
- Public Supplies Directive 1993 - 93/36/EEC
- Public Services Directive 1992 - 92/50/EEC
- Public Works Directive 1993 - 93/37/EEC
- Amending Directive 1997 - 97/52/EC (amends the three directives
above)
These directives are included in UK law as a number of
regulations:
- The Public Supply Contracts Regulations 1995 S.I. No. 201
- The Public Services Contracts Regulations 1993 S.I. No.
3228
- The Public Works Contracts Regulations 1991 S.I. No. 2680
The directives and regulations require the Council to follow
detailed procedures for all procurements above financial
thresholds. To view the most recent threshold levels which require
the full application of European Tendering please visit
www.bipsolutions.com/html/thresholds.htm#pc06.
The Council must follow some basic principles:-
- A specific Tender Notice must be placed in the supplement to
the Official Journal of the European Union (OJEU) to give all
suppliers in the EU an equal opportunity to tender.
- Tenders must be invited in accordance with one of the
prescribed procedures (open, restricted, negotiated - there are
also two separate urgency procedures). Each procedure imposes
minimum time-scales covering the tender activities to ensure that
reasonable time to respond to adverts and prepare submissions is
given to interested parties.
- A notice of contract award must be placed in OHEU. Unsuccessful
contractors must be debriefed if requested.
3. NATIONAL RULES - Whilst there is no
prescription on local authorities to tender out specific services,
the Council has a duty under Best Value legislation (introduced in
April 2000) as laid down by Part 1 of the Local Government Act 1999
to fundamentally review its services and make arrangements to
ensure continuous improvement having regard to economy, efficiency
and effectiveness.
Performance indicators and targets for improvement are set and
published in an annual Best Value Performance Plan. The Council
recognises that effective procurement is at the heart of Best Value
and that the Best Value review process will help deliver its
commitment to provide the best possible services for the people of
Maidstone.
The Council must also have regard to Part II of the Local
Government
Act 1988 which prohibits “non commercial considerations” being
taken into account when awarding contracts.
4. LOCAL RULES -
Procurement activities must also comply with the Constitution of
the Council.
Contracts below £3,000 - Whilst it is not necessary to
obtain quotations for purchases below £3,000 it is necessary to
ensure value
for money is obtained by periodically testing the market.
The Procurement Department advocates the receipt of three
quotations to maintain best value and transparency.
Contracts between £3,000 and £25,000 - Will be subject
to competitive quotations being obtained from at least three
contractors,
or if this is not possible from all capable contractors.
Contracts between £25,000 and below European
Procurement Thresholds - Will be subject to competitive
tenders being obtained:-
- from a reasonable number of capable contractors, usually not
more than five unless an open tendering procedure is being
followed;
- following advertisement in at least one local newspaper, a
specialist, trade or professional journal and on the
Council’s website.
Contracts over European Procurement Thresholds - Will
be subject to procurement processes as specified by European
Procurement legislation including advertisement across Europe via
OJEU and within specified timescales.
Approved lists -
Maidstone Borough Council does not maintain approved lists of
contractors or suppliers.
Tender lists - Tenders can be restricted and invited
from some (or all) respondents to an advertisement providing they
comply with the
selection criteria. In order to demonstrate compliance with the
criteria necessary to be invited to tender under a restricted also
known as a “limited” tendering procedure, contractors will be
required to complete a pre-qualification questionnaire. In
accordance with the spirit of the National Procurement Strategy all
Kent local authorities are striving to standardise
pre-qualification documents across the country. Please note that in
all cases, additional information will be required.
5. The Council’s procurement policy is based upon fair,
transparent and open competition and the procedures ensure that the
process is reasonable as far as it is commercially possible and
auditable.