Aboutthisguide
Howisprocurementorganised?
RulesandRegulations
EUProcurementDirectives
HowdoIfindopportunities?
OurProcurementprocess
Councilexpectationsofcontractors
FAQs
This guide has been put together to help local businesses wanting to sell their servicesand suppliestoLichfieldDistrictCouncil. Itoutlines:
Wherebusinessescanfinddetailsofopportunitiestosupplythecouncil
TherulesthatLichfieldDistrictCouncilmustfollow
Howtotenderforthecouncil’sbusiness
Whatisexpectedofyouwhenundertakingworkforus
LichfieldDistrictCouncilhasasmallprocurementteam,whichisresponsiblefordevelopingthecouncil’sprocurement strategy,policy,goodpracticeand procedurestosecurebestvalue-for-money.Itisalsoresponsibleforadvisingcouncil officerswhohaveresponsibilityunderdevolvedprocurementarrangements,ofrunningprocurementstosecurethegoods, servicesandworkstheyneedwithintheirserviceareas.
Therearemanydifferentformsinwhichcontractsletbythecouncilcantake,belowisabriefoutlineofsomeofthoseforms:
Essentiallyone-offcontracts.Thesecontractsmeetspecificneeds/individualrequirementsandtendto belowprocurementactivitythresholds.
Atenderprocesswiththeaimtoestablishanagreementwheretermsandconditionsareputinplacewith thesuccessfulprovider(s)for services,suppliesorworks.Whenarequirementisidentifieditcanbe sourcedviatheframeworkthroughacall-offmechanism.
ADynamicPurchasingSystem(DPS)isacompletelyelectronicsystemusedtopurchasegoods,worksor services.Unlikeaframework, supplierscanapplytojoinatanytime.Itisan‘openmarket’solution designedtoprovidebuyerswithaccesstoapoolofpre-qualified suppliers.
Thesearetendersacceptedfromacontractor,tocarryoutrepetitivetasksforadefinedperiodoftime.Workis thenissuedtothesuccessful contractor(s)asandwhenitisavailable.Theseareusuallyforplannedandreactive works.
Consortiums
Differentprocurementauthoritiescanjointogethertoformaconsortiumtocreatetendersasagroup.Thiscan providebettervaluefor moneyaslargerquantitiescanbepurchased.Thisalsoapplytobiddingproviders,who canjointogethertoformaconsortiumtoprovidea bettervalueformoneytenderbidandcoverawiderareaof worksandservices.
Asapublicbody,LichfieldDistrictCouncilalsohasaccesstocontractsarrangedbyCrownCommercialServices (CCS),EasternShiresPurchasingOrganisation(ESPO),YorkshirePurchasingOrganisation(YPO),SCAPEandothers.
Asapublicbody,thereareregulationswhichthecouncil hastofollowwhenprocuringsupplies,worksandservices. Itisimportantforbusinesseswishingtoworkwithustobe fullyawareoftherulesandregulations,whichgovernthe wayweoperate.
Thistablesummarisestherulesandbasiclevelthresholds thatmustbefollowed.Thevalueofthe requirement,whetherestimatedorexact,willdetermine thewayinwhichitispurchased:
Asasmallercouncilitwillbeveryrarethatweundertake majorworksprocurements,orindeedmanyEU procurements.
Wewillgenerallyseektouse pre-existingframework agreementsthatareavailabletousastheyhavebeen throughrobustprocurementprocessesandtypicallyoffer valueformoney.
ThecouncilhasalegalrequirementtocomplywiththeEUProcurementDirectives,whichgovernthewaypublicsector procurementisconductedforcontractsovercertainspecifiedthresholds.Thedirectivesandregulationsrequirethecouncil tofollowdetailedproceduresforallprocurementsabovethesefinancialthresholds.TheoverridingprincipleofEU regulations(andofthecouncil’sinternalrules)isequalityoftreatmentandtransparencyofprocess.
Thethresholdsfor2022are:
ServicesandSupplies-£138,760includingVAT Works-£5,336,937includingVAT
Ifthevalueofthegoods/service/worksisabovethethresholdforquotation,undertheEUProcurementDirectives, LichfieldDistrictCouncilcanconductitsprocurementusingoneoffourprocesses:
Open
Invitationtotenderisopentoallorganisationsto expressaninterestandrequesttender documents.Thisisthemostcommonprocess.
Restricted
Atwo-stageprocess.Organisationsexpressingan interestundergoaninitialpre-qualification assessment.Onlythemostsuitableapplicantsare invitedtotender.
CompetitiveDialogue
Ifthetenderisverycomplexoranoverallpricingstructurecannot becreated,itmaybenecessarytodiscussthetenderbidwith suppliersduringthetenderprocess.Alldiscussionsareconducted onthebasisoftransparencyandfairnesstoallpartiestoensure anunbiasedtenderprocessandresponse.
ProcurementRequirements
Whereprocurementsexceedthethresholds,andcomes withinthescopeofEUprocurementdirectives,thecouncil mustfollowthesebasicrequirements.
Weaimtoadvertiseopportunitiestosupplygoodsandservicestousonourtenderingportal.Findoutmoreat www.lichfielddc.gov.uk/opportunities
Ourtenderopportunitiesofmorethan£25,000arealsolistedongovernment'scontractsfinderatwww.gov.uk/contractsfinder
IfthetenderamountisovertheEUthresholds(seepage6),theyarealsolistedonTEDat http://ted.europa.eu/TED/main/HomePage.dowhichpublishesallabovethresholdprocurementopportunitiesfrom acrosstheEU.
Youcanregisterforallthesesystemsforfreeandtheywillnotifyyouofrelevantopportunities.
Wewillalsobeusingsocialmediaasawaytoadvertisesomeofouropportunities,sopleasekeepaneyeonourFacebook postsbyfollowing@lichfielddcandTwitterfeedbyfollowing@Lichfield_DC.
Inaddition,wearealsopreparingaforwardworkplanthatwilllistupcomingprocurements,whichwillbeavailableat www.lichfielddc.gov.uk/opportunities
Unlessapre-existingframeworkisused,whichwillsetouthowweengagewiththosesuppliers,anddependinguponthe valueofthecontract,wewillnotifysupplierseither:
Directlythroughoure-Tenderingsystembyinvitation,oremail
Byplacingnotificationsontherelevantonlineportals(seepage7)
Selectionofsuitableandqualifiedsupplier
Thecouncilhasadutytoensurecontractors/suppliersaresuitableandqualifiedtodeliverthegoods/services/works.Thiscan bedonethroughpre-qualificationquestionsbeforethetender,oraselectionofquestionsaspartofthetenderprocessor throughself-certification.
Submissionofquotationortenderresponseandevaluation
Thevalueofthecontractwilldetermineiftheprocessfollowedisoneforaquoteortender.
Quotationsareaquickandstraightforwardprocessandwillusuallyrequiresubmissiontooure-Tenderingsystem. Documentationwillusuallyincludesomeorallofthefollowing:
Instructionstoquote
Specificationofrequirement
Methodstatements
Evaluationcriteria
Tendersaremoreindepthprocessesandtakemoretimetocompleteandareforhighervaluecontracts.Asmentionedthere aredifferentwaysforidentifyingtenderopportunities.Thetendersdocumentswillbeavailablethroughoure-Tendering systemandwillincludedocumentsuchas:
Instructiontotender
Specificationrequirements
Methodstatement
Evaluationcriteriaandscoringmethodology
Pricingschedule
Contracttermsandconditions
Evaluation
TenderswillbeevaluatedbytheMostEconomicallyAdvantageous(MEAT)orpriceonly.
MEATSwillgiveweightingagainstthepricesubmissionandthequalitysubmissionscoresofthetender,e.g.60%price,40% quality.
Evaluationofthemosteconomicallyadvantageoustendercanincorporateanumberoffactorsincludingbutnotlimitedto:
Financialviabilityofthetender
Qualityissues
Technicalmerit
Aftersalesservice
Deliverydate
Technicalback-up
Experience
Competence
Policyissuessuchasequalityandsustainability
Socialvalue
Tenderevaluationsarealwayscarriedoutinacomprehensive,equitable,auditableandtransparentmanner,ensuring fairnesstoallsupplierswhilefollowingtheevaluationcriteriaandmethodassetoutinthetender.
Contractswillbeawardedtothetenderwhoseoverallscoreisthehighestunderthetermsandconditionssetoutinthe tenderdocumentation.
Thecouncilneedstoensurethatitoffersvalue-for-moneyprocurement.Wethereforeexpectacertainlevelof performancefromcontractors/suppliers,demonstratedbutnotlimitedtothefollowing:
Thiscanbedemonstratedthroughbestprice,best administrationcosts,bestcostsrelatedtoqualityorany addedvalue.Suppliersshouldconsiderthetotal,wholelife costsofsupplywhenputtingtogethertheirtenders.
Contractors/suppliersareexpectedtoprovideservices, suppliesand workstoanappropriatestandardofquality,to meettheneedssetoutinthespecification.
Adherencetothecouncil'spoliciesandprotocols
Wearecommittedtodeliveringourservices,with considerationforanumberofissues,includingsustainability, equalities,healthandsafety,andlookfor suppliers/contractorswhoarecommittedtohelpingus achieveouraimsintheserespects.
Tendersmustbereturnedbythedategivenasanytenders receivedafterthedeadlinemaynotbeconsidered.
Suppliersareencouragedtobeinnovativeandsuggestnew ideastoaddvalue,continuouslystrivingtoimprovetheir performance.
Communication
Suppliersareexpectedtomaintaingoodcommunications withthecouncilthroughoutthecontractandwillbe expectedtoattendregularcontractreviewmeetings.
Honestyisexpectedinalldealingsbetweenthecounciland itscontractors.Inparticularitisacriminaloffencetogiveor offeranygift,inducementorrewardtoanemployeeofa publicbody.Itisthecouncil'spolicynottoaccept inducements,giftsorhospitality.Tenderersshouldnotethat theyriskbeingexcludedfromtheprocurementprocessfor failingtoobservethisrequirement.
TheLivingWageFoundationisanindependentcharitywhichcalculatesareallivingwage,basedonlivingcostsintheUK,in thefirstweekofNovembereachyear.TheRealLivingWagecurrentlystandsat£10.90perhouroutsideLondonforthose aged18andabove.
Over12000UKemployersarenowaccreditedbytheLivingWageFoundationandvoluntarilypaytheRealLivingWage, includingover130localauthorities.
Since2022LichfieldDistrictCouncilhasensuredthatnomemberofdirectlyemployedstaffhasearnedlessthanthereal livingwage.
LichfieldDistrictCouncilbelievesthat:
PayingtheRealLivingWagenotonlybenefitsemployeesbutalsoemployersandthewidereconomy.
OurstaffareourmostvaluableresourceandthatanyoneemployedbyLichfieldDistrictCouncilshouldreasonably expecttoearnawagewhichallowsthemtogetby.
Thatpayingatleastalivingwagetoemployeesrepresentsgoodemploymentpracticeandthatcompanieswhodosoare demonstratinggoodsocialpracticeinthisregard.
Ifyourtenderisunsuccessfulyoucanrequestfeedback.Withinthelimitsofconfidentiality,wecanprovidetenderers withfeedbackonwhichaspectsoftheirbidwerestrongestandwhichwereweakest,alongwithadviceonimproving anddevelopingforthefuture.
UndertheEUdirectivesyouarelegallyentitledtorequestthisfeedbackfromus.Beingunsuccessfulinonecontract doesnotmeanyouwillbeunsuccessfulinthefuture.Youshouldusethefeedbacktohelpyouimproveforupcoming opportunities.
Youwillbeexpectedtoprovidetheserviceinaccordancewiththerequirementssetoutinthecontractdocumentation andyourproposalstocarryoutthecontract.Toensurewearecontinuallyprovidingvalueformoneyservicestoour community,suppliersandcontractorsworkingforthecouncilareregularlymonitoredtoassesstheircompliancewith predefinedperformancecriteria.Thecontractconditionsarestrictlyapplied,andexplanationssoughtifacontractor failstoperformtothelevelsrequired.
Thecounciliscommittedtodevelopinge-procurementasamajortoolindeliveringitsprocurementstrategy.From tenderingforcontractstoplacingorders,theapplicationof e-procurementcanachieveefficiencysavingsforboththecouncilandtheirsuppliers.Papertransactionswill,intime, bereplacedbye-procurement,providingastreamlinedprocessandreducedtransactioncosts.
Weareactivelydevelopinge-procurementthroughtheuseofpurchasecardswhichareusedliketraditionalcredit cardstobuyad-hocsupplies,andthedevelopmentofanonlineorderingsystem.
Howdoesthecouncilpaysuppliers?
Paymenttermsshouldbesetdowninthecontracttermsandconditions.Paymentviainvoicewillbewithin30daysvia BACStransfer,otheroptionsforpaymentarethroughpurchasecardpayments.
Thecounciloperatesastrict‘nopurchaseorder,nopay’policy,whereanyinvoicesubmittedwithoutapurchaseorder willbereturnedtothesupplierwithoutpayment.
WherecanIgetfurtherinformation?
Ifyouareseekinginformationregardingaspecificcontractpleaseusethecontactdetailsprovidedinthe advert/contractnoticeandtenderingdetails.
Generalinformationonthetenderingprocessandprocurementatthecouncilcanbeobtainedfromtheprocurement teambyemailingprocurement@lichfielddc.gov.uk
Ifyouhaveanycommentsorfeedbackonthisguidewewouldbehappytohearfromyouaswearealwayslookingto developtheadvice,guidanceandsupportweoffertopotentialcontractors.Pleasecontactusbyemailing procurement@lichfielddc.gov.uk