Guidance for officers and members
Procurement Rules and
Regulations
As a local authority, there are regulations at a European,
national and local level which the Council has to follow when
procuring goods, services and works and when establishing approved
tender lists.
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
certain financial thresholds.
- The thresholds are reviewed every two years and are
displayed on the following website www.ted.europa.eu.
- 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 OJEU.
- Unsuccessful contractors must be debriefed if requested.
Further information about the EC Procurement Directives can be
viewed at http://www.opsi.gov.uk
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.
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 over £25,000 - 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.
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 county. Please
note that in all cases, additional information will be
required.
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.