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Part 4g -Contract procedure rules

Updated 1 April 2021, 29 January 2025

Definitions

Guiding Principles

Scope

Rule 1:   Basic principles

Rule 2:  Officer responsibilities

Rule 3:  Collaborative arrangements

Rule 4:  Relevant contracts

Common requirements

Rule 5:  Purchase orders

Rule 6:  Steps prior to purchase

Rule 7:  Process and records

Rule 8: Advertising

Rule 9: Framework agreements

Conducting purchase and disposal

Rule 10:  Competition requirements for purchase and partnership arrangements

Rule 11:  Disposal of assets

Rule 12:  Engaging consultants

Rule 13:  Pre-tender market engagement

Rule 14: Conditions of participation and award criteria

Rule 15:  Shortlisting

Rule 16:  Invitations to tender/quotations

Rule 17:  Submission, receipt and opening of tenders/quotations

Rule 18:  Clarification procedures

Rule 19:  Evalutation

Rule 20: Post tender negotiation

Contract formalities and other waivers 

Rule 21: Award of contracts

Rule 22: Transparency

Rule 23: Contract documents

Rule 24: Dispensations

Rule 25: Exceptions

 Contract management

Rule 26: Managing contracts

 

Definitions

Definitions
TermDefinition
Assessment Summary
Formal feedback provided to all Suppliers who have submitted a tender notifying them of their scores and the rationale for the award of those scores.
Authorised Signatory 
An Officer authorised by the Head of Procurement and/or Chief Solicitor in accordance with the Council’s constitution to sign a contract or the Council’s seal. 
Award Criteria 
The criteria by which the Contract is to be evaluated and awarded to the successful Supplier (see further Rules 14). 
Award Procedure 
The procedure for awarding a Contract as specified in Rules 19, 21 and 23. 
Best Value 
The duty, which Part I of the Local Government Act 1999 places on local authorities, to secure continuous improvement in the way in which functions are exercised, having regard to a combination of economy, efficiency and effectiveness as implemented by the Council. 
Central Digital Platform
The digital platform, known as Find a Tender Service where transparency notices for all public sector planned procurement, procurement opportunities, contract awards and contract performance must be published as appropriate.
Chief Officers/Directors 
The Officers defined as such in Part 2 of the Constitution. 
Chief Solicitor 
As identified in the Constitution, also referred to as the Head of Legal Services
Chief Financial Officer 
The Council’s Treasurer (Section 151 Officer) or such other Officer as may be designated by the Treasurer by the Council. 
Code of Conduct 
The code of conduct for employees as set out from time to time in the Constitution.
Code of Practice for Tendering and Contracts and any other Procurement Guides or Procedures 
Any guidance documents issued from time to time by the Head of Procurement that support the implementation of these contract procurement rules. These guides are available on the Council’s intranet. 
Conditions of Participation
A proportionate, minimum legal, financial or technical condition that a supplier must satisfy in order to be awarded a contract.
Constitution
The constitutional document approved by the Council of which those Contract Procedure Rules form part issued under Section 9P of the Local Government Act 2000..
Consultant
Specialist advisers engaged to provide services to the Council. 
Contract
A legally binding agreement for the hire, lease or purchase and provision of goods, works or services, including consultancy services and deliverables under which the Council engages a supplier in accordance with an official Council purchase order or a written set of terms and conditions, including those from Framework Agreements.
Contract Register
The Council’s repository of Contracts held centrally by the Corporate Procurement Team
Contracting Decision
Any of the following decisions:

  • withdrawel of Invitation to Tender

  • those invited to submit a Quotation or Tender

  • shortlisting

  • award of contract or Framework Agreement

  • any decision to vary or extend a contract

  • any decision to terminate a contract
Corporate Contract 
A contract let by the Council’s Corporate Procurement Team to support the Council’s aim of achieving Value for Money,
Corporate Procurement Team
The Council’s central procurement unit charged with providing strategic direction and advice to secure Value for Money in the Council’s procurement activities. 
Council
Blackpool Borough Council.
Council's Procurement Strategy
The document setting out the Council’s approach to procurement and key priorities for the medium term
Covered Procurement
The award, entry into and management of a public contract..
Debarment List
A list maintained by a Minister of the Crown which identifies if a supplier is Excluded or Excludable.
Discretionary Exclusions
Grounds upon which Suppliers may be excluded from participation in a procurement procedure where it is established that there is a relevant conviction of certain offences.
Executive
The Council’s Executive Committee as defined in the Constitution
Excluded Supplier
A Supplier meeting a mandatory exclusion ground
Excludable Supplier
A Supplier meeting a discretionary exclusion ground
Financial Regulation
The Council’s financial regulations outlining Officer responsibilities for financial matters prepared by the Chief Financial Officer and becoming part of the Constitution. 
Find a Tender Service
UK central digital platform; the online system established by the Cabinet Office where transparency notices for all public sector planned procurement, procurement opportunities, contract awards and contract performance must be published as appropriate
Framework Agreement
An agreement between one or more contracting authorities and one or more Suppliers, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged. 
Government Procurement Agreement
The successor agreement to the General Agreement on Trade and Tariffs. The main signatories other than those in the European Economic Area are the USA, Canada, Japan, Israel, South Korea, Switzerland, Norway, Aruba, Hong Kong, China, Liechtenstein and Singapore. 
Head of Procurement
The Officer with responsibility for leading the Corporate Procurement Service
Health Care Services (Provider Selection Regime) Regulations 2023
The legislation specifically for commissioning all health care services in England.
High Profile
A high-profile purchase is one that could have an impact on functions integral to Council service delivery should it fail or go wrong. 
High Risk
A high-risk purchase that is in the opinion of the Chief Financial Officer and/or the Head of Procurement one which presents the potential for substantial exposure on the Council’s part should it fail or go wrong. 
High Value
A high-value purchase is where the value exceeds £85,000 (goods & services) and £250,000 (works). 
Invitation to Tender
Invitation to tender documents in the form required by these Contract Procedure Rules. 
Key Decision
Decisions that are defined as key decisions in the Access to Information Rules in Part 4 of the Constitution. 
Local Government Transparency Code
Government guidance document setting out the minimum data that local authorities should be publishing, the frequency it should be published and how it should be published.
Low Value
A low-value purchase is where the value is below £85,000 (goods & services), and £250,000 (works). 
Mandatory Exclusions
Grounds upon which Suppliers may be excluded from participation in a procurement procedure where it is established that there is a relevant conviction of certain offences.
Most Advantageous Tender
The tender that the Council consider satisfies its requirements and the associated award criteria when reaching a Contracting Decision
National Procurement Policy Statement 
The national strategic policy statement that all contracting authorities must have regard to when preparing for and undertaking procurement activity, that sets out the strategic priorities for public procurement.
Non-Commercial Considerations
Factors that must not be taken into account at the Award Decision stage, such as the introduction of selection and Award Criteria that have not been disclosed at the outset of the Procurement Exercise or the factors described in section 17(5)(e) of the Local Government Act 1988 that must not be taken into account in establishing the Award Criteria, or in any Invitation to Tender document including the specification and schedule of requirements or as grounds for decision in any Key Decision or Non-key decision, unless disapplied in whole or in part by Section 116 of the Act or any other Relevant Legislation, for example:
(i) The Local Government (Exclusion of Non-commercial Considerations) (England) Order 2022;or
(ii) Regulation 17 of the Procurement Act 2023 (Miscellaneous Provisions) Regulations 2024 that allows a Below-Threshold requirement to be limited to Suppliers that are either based within the UK or based within a particular County. 
Parent Company Guarantee 
A contract which binds the parent of a subsidiary company whereby if the subsidiary company fails to do what it has promised under a contract with the Council, the Council can require the parent company to do so instead. 
Predecessor Legislation Public Contract Regulations, 2015; the Concession Regulations, 2016; the Utilities Regulations, 2016 and Defence and Security Regulations, 2011 that govern procurement exercises commenced prior to the implementation of UK Procurement Legislation and associated post award processes
Procurement Exercise  The procurement process set out within these Contract Procedure Rules and UK Legislation in order to identify, engage and enter into Contract with suitable Suppliers.
Procurement Threshold The financial threshold of the total contract value above which require any procurement exercise to be undertaken in accordance with UK Procurement Legislation. The Threshold values are update every 2 years.
Quotation An offer from a Supplier of price and any other relevant matter (without the formal issue of an Invitation to Tender) for provision of a requirement for Low Value goods, works or services. 
Relevant Contract  Contracts to which these contract procurement rules apply (see Rule 6). 
Senior Officer/Officer The Senior Officer/Officer designated by the Chief Officer/Director to deal with the contract in question.
Shortlisting The process of selecting Suppliers who are to be invited to quote or bid or to proceed to defined stages within a procurement exercise, or final evaluation. 
Small and Medium Enterprises (SMEs) A company which employs over 250 staff, and either its annual turnover exceeds £36m or its balance sheet total exceeds £18m
Social Value Added economic, social and environmental benefits generated in the performance of a contract beyond the fulfilment of the goods, works or services procured.
Standstill

the minimum 8 working day, mandatory standstill period, (excluding bank and public holidays) commencing on the publication of a Contract Award Notice that apply to above Procurement Threshold value Procurement Exercises. During Standstill the Council is not permitted to enter into the Contract, unless the requirement to comply with the Standstill period for direct awards only, (pursuant to 51(3) of the Act), is exempted from this requirement to by reason of:

i. extreme and unavoidable urgency;

ii. to protect life, etc

iii. call-off contracts awarded under a Framework Agreement.

iv. contracts awarded under a dynamic market; and

v. light touch contracts
Supplier An organisation or individual who provides or wishes to provide goods or services to the Council or who undertakes works for the Council including any person who asks or is invited to submit a Quotation or Tender.
Tender A Supplier’s response to an Invitation to Tender issued by the Council.
Total Contract Value The calculation of the total estimated value of a requirement (including VAT where applicable), inclusive of any contract term extensions and all associated costs covered by the Contract.
Transparency Code Local Government Transparency Code, 2015 as may be updated from time to time.
TUPE/ Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006 No.246) Subject to certain conditions, the regulations applying where responsibility for the delivery of works or services for the Council is transferred from one organisation (e.g. private contractor, local authority in-house team) to another (e.g. following a contracting out or competitive tendering process) and where the individuals involved in carrying out the work are transferred to the new employer. These regulations seek to protect the rights of employees in such transfers, enabling them to enjoy the same terms and conditions, with continuity of employment, as existed with their former employer. Broadly, TUPE regulations ensure that the rights of employees are transferred along with the business.
UK Procurement Legislation The legislation that governs all public sector procurement activity; The Procurement Act, 2023 and supporting secondary legislation as may come into effect and be amended from time to time
Value For Money The optimal use of resources to achieve the intended outcomes, taking account of quality, social value and whole life costs.

 

Guiding Principles 

These Contract Procedure Rules (issued in accordance with section 135 of the 1972 Local Government Act) are intended to promote good purchasing practice and public accountability and deter corruption. These Rules are to be subject to, and interpreted in accordance with, the Articles and any other provisions of the Council’s Constitution.

 Officers responsible for purchasing must comply with these Contract Procedure Rules. They lay down minimum requirements for every Contract entered into by the Council for the 'execution of work' and for the 'supply of goods or services'.

 For the purposes of these rules, where there is a requirement for communication to be in writing, this shall be deemed to include e-mail as well as hard copy.

 Key considerations for officers engaged in purchasing works, goods and services include:

  • Follow the rules if you purchase goods or services or order construction or engineering work;
  • Take all necessary procurement, legal, financial, information governance and professional advice;
  • Follow the overarching principles of fairness, transparency and non-discrimination;
  • Declare any conflict of interest. Bribery and corruption is a criminal offence;
  • Conduct any Best Value or Service Review, and/or value for money test and appraise the purchasing need;
  • Have regard to any funders conditions where contract funding is from an external source
  • Determine whether there is an existing Corporate Contract or other accessible joint purchasing arrangement (Framework) that may be appropriate to use prior to commenting a competitive process.
  • Allow a reasonable timeframe for conducting procurement activity;
  • Maintain confidentiality of Tenders and Quotations;
  • Have regard for barriers faced by SMEs in participation in Procurement Exercises;
  • Complete a formal Contract or Council order via the Council’s e-ordering system before supply of goods or services begin and / or before works commence;
  • Ensure a copy of all Contracts over a value of £30,000 are passed for recording on the Council’s contract register;
  • Identify a contract manager with responsibility for ensuring the contract delivers as intended;
  • Comply with Transparency and contract management reporting requirements
  • Keep clear records of dealings with suppliers;
  • Assess each Contract upon contract completion to assess how well it met the purchasing need and Value for Money requirements.

Scope  

1. Basic Principles

1.1         All purchasing and disposal procedures must be undertaken in a manner that:

  •       promotes good purchasing practice, public accountability and deters fraud;
  •       achieves best value for public money spent;
  •       is consistent with the highest standards of integrity;
  •       ensures fairness in allocating public contracts;
  •       complies with all legal requirements;
  •       is consistent with priorities set out in the National Procurement Policy Statement;
  •       supports the Council’s corporate and departmental aims and policies;
  •       complies with the Council’s Procurement Strategy and other relevant policies and Codes of Practice.

 2. Officer Responsibilities 

 2.1         Officers

 2.1.1     Officers responsible for purchasing or disposal must comply with these Contract Procedure Rules, Financial Regulations, the Code of Conduct and with all UK binding legal requirements.

 2.1.2     Officers must:

  •       act in line with the Duty of Best Value to assess the need to deliver the service or acquire the goods in the first place;
  •       have regard to the Code of Practice on Tendering and Contracts;
  •       check whether a suitable Corporate Contract exists before seeking to let another contract; where a suitable Corporate Contract exists, this must be used unless otherwise determined by the Head of Procurement;  
  •       keep clear records of all decisions;
  •       seek and take account of all necessary procurement, legal, financial and professional advice.

2.1.3     When any employee either of the Council or of a Supplier may be affected by any transfer arrangement, Officers must ensure that the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) and associated issues are considered and obtain legal and HR advice before proceeding with inviting Tenders or Quotations.

2.1.4     All stakeholders involved in a Procurement Exercise or the management of the resulting Contract must declare in writing to the Procurement Officer any related conflicts of interests, or perceived conflicts of interest relating to the procurement activity where they, or their spouse or civil partner, friend or business associate, have a vested interest that could conflict with the best interests of the Council as soon as it is identified. Where a conflict, or perceived conflict of interest exists, the Procurement Officer shall consider any appropriate mitigation(s) to be put in place to ensure that such conflicts do not compromise the Procurement Exercise.

2.2         Chief Officers/Directors

2.2.1     Chief Officers/Directors must ensure:

  •       that their staff comply with Rule 2.1;
  •       every contract exceeding £30,000 is entered into the Contracts Register maintained by the Head of Procurement;
  •       Dispensations are recorded under Rule 3.1.2;
  •       Exceptions are recorded under Rule 4.3.

2.3         Officers shall comply with the Officer Code of Conduct and must not invite or accept any gift or reward in respect of the award or performance of any contract. It will be for the Officer to prove that anything received was not received corruptly. High standards of conduct are obligatory. Corrupt behaviour will lead to dismissal and is a crime under the Bribery Act 2010.

2.4         Officers shall comply with s117 of the Local Government Act 1972 in relation to the declaration of interest in contracts.

3. Collaborative Arrangements

3.1         In order to secure Value for Money the Council may enter into collaborative procurement arrangements with other local authorities, government departments, public bodies or public service purchasing consortia. The Council may use Framework Agreements or dynamic market arrangements let by other local authorities, government departments, public bodies or public service purchasing consortia where they have been established in a manner that complies with UK Procurement Legislation and that allows the Council to access the arrangement

3.2         All purchases made via a local authority purchasing consortium are deemed to comply with these contract procedure rules and no exemption is required. However, purchases subject to the UK Procurement Legislation must be let under that legislation, unless the consortium has satisfied this requirement already by letting their contract in accordance with the UK Procurement Legislation on behalf of the Council and other consortium members.

3.3         Advice must be sought from the Head of Procurement regarding any contracts entered into through collaboration with other local authorities or other public bodies to ensure compliance with the procurement rules.

3.4         The Council may also establish its own Framework Agreements or dynamic markets if it represents the most appropriate procurement process.   Advice must be sought from the Head of Procurement to ensure compliance with these rules in leading on collaborative exercises. Framework Agreements and dynamic markets shall be compiled in the following manner:

(a)      They shall be established and maintained in accordance with the Code of Practice on Tendering and Contracts, and;

(b)      The term shall not normally exceed that which is set out in the UK Procurement Legislation;

(c)       The appropriate Senior Officer may at any time amend the specified rates of a company on the framework when notified by that company in writing of the change, providing that the proposed changes are in accordance with the terms for such variations and margins agreed at the time the framework bids are accepted.

3.5         The use of e-procurement technology (eg; e-procurement orders) does not negate the requirement to comply with all applicable elements of these rules, particularly those relating to competition and Value for Money.

4. Relevant Contracts

4.1         All Relevant Contracts, Framework Agreements and dynamic markets must comply with these rules. A Relevant Contract is any procurement defined as a Covered Procurement within UK Procurement Legislation and / or an arrangement made by the Council for the carrying out of works or for the supply of goods or services. These include arrangements for:

  •       the carrying out of construction and engineering works;
  •       the supply or disposal of goods;
  •       the supply of utilities;
  •       the hire, rental or lease of goods or equipment, and;
  •       the delivery of services, including professional services.

4.2         Relevant Contracts do not include:

  •       contracts of employment which make an individual a direct employee of the Council, or
  •       agreements regarding the acquisition, disposal or transfer of land which do not form part of a wider transaction under which the Council procures works, goods or services where defined by UK Procurement Legislation, or
  •       contracts seeking health related services. Whilst commissioning of health related services should follow the general principles of these Contract Procedure Rules that must be undertaken within the parameters laid down within the Health Care Services (Provider Selection Regime) Regulations 2023

4.3         Where tenders are required to be invited for works, goods or services of a similar nature to that already being executed or supplied within the preceding twelve months by a Supplier under contract to the Council who was awarded business pursuant to these Contract Procedure Rules:

(a)      The appropriate Senior Officer, after consultation with the Head of Procurement and Cabinet Member, may decide that it would be to the benefit of the Council to negotiate an extension to the existing contract with the Supplier;

(b)      The terms for such an extension shall, having regard to any variations in prices generally for work or goods or services of that nature, be no less favourable than for the contract current at the time of negotiation or the last contract undertaken, as the case may be.

            Providing that;

(i)            in all cases, this does not conflict with any statutory provisions or with UK Procurement Legislation, particularly in respect of modifying public contracts as laid out in sections 74 – 77 of UK Procurement Legislation, in which case UK Procurement Legislation shall prevail and tenders shall be invited in accordance with the provisions of these Rules.

(ii)           the tender shall be awarded and reported in accordance with Contract Procedure Rules 21 and 20.

4.4         Where tenders are required to be invited but the appropriate Senior Officer considers that, for reasons outside their reasonable control, the contract is required so urgently as to make it impossible to invite tenders by ‘public notice’, then:

(a)      The appropriate Senior Officer after consultation with the Head of Procurement and Cabinet Member, may decide to invite a tender from such person or persons who in the opinion of the appropriate Senior Officer is or are most suitable to execute the work or supply the goods or services and, such tender or tenders may be negotiated.

              Providing that;

(i)        in all cases, this does not conflict with any statutory provisions or with UK Procurement Legislation, in which case the requirements within the legislation shall prevail and, tenders shall be invited in accordance with the provisions in these Contract Procedure Rules and that Rules 3 and 4 are complied with.

(ii)      The tender is awarded and reported in accordance with Contract Procedure Rule 21.

Common requirements

5. Purchase Orders:

5.1       Officers must raise official Purchase Orders for all goods and services via the corporate financial management system unless there is a specific exemption agreed by the Service Director and with the authority of Finance and Procurement prior to the commencement of the works/services or delivery of goods and prior to the receipt of an invoice.

5.2         There must be a separation of duties between the officer raising the Purchase Requisition and the officer authorising the Requisition to enable a Purchase Order to be generated.

5.3         In raising an order Officers must confirm that they have complied with the requirements laid out in these Contract Procedure Rules. The Procurement Team will ensure that compliance with these Rules is upheld.

6. Steps prior to purchase

6.1         Prior to the commencement of any Procurement Exercise of commitment to make a purchase the Officer must:

  • appraise the purchase, in a manner commensurate with its complexity and value, taking into account any guidance in the Code of Practice on Tendering and Contracts, to:
  • satisfy themselves that they have the necessary authority to deal with the purchase and that there is budget provision for the purchase;
  • take into account the requirements from any review appraising the need for the expenditure and its priority defining the objectives of the purchase;
  • assess the risks associated with the purchase and how to manage them;
  • consider what procurement method is most likely to achieve the purchasing objectives, including internal or external sourcing, partnering, collaborative procurement arrangements with another local authority, government department, statutory undertaker or public service purchasing consortium;
  • consult users as appropriate about the proposed procurement method, contract standards, required performance and user satisfaction monitoring drafting the terms and conditions that are to apply to the proposed contract;
  • submit for comment to the Chief Financial Officer or a nominated representative for comment as soon as practicable where the purchase is to be funded from mainstream capital or regarded as capital by the Chief Financial Officer;
  • ensure full consideration is paid to funders conditions and any required assessment of Subsidy Control where the purchase is funded in whole or part by external funding;
  • ensure a fully documented record of key decisions is maintained;
  • ensure full awareness of all transparency obligations;
  • ensure that the tender process is managed by the Head of Procurement or their nominated representative where the contract value exceeds £85,000 (goods and services) or £250,000 (works);

6.2         and by confirming that:

  •  all other required internal governance steps such as may be associated with data protection and ICT security are satisfied;
  • there is Cabinet Member or delegated approval for the expenditure and the purchase accords with the approved policy framework and scheme of delegation as set out in the Constitution;
  • if the purchase is a Key Decision, all appropriate governance steps have been taken and full approval is in place.

7. The Process and Records

7.1         Classification of Contracts

Every contract proposed to be let by the Council shall be classified as either;

(a)    A contract for the execution of work, or

(b)    A contract for the supply of goods and/or services (including concessions); and

(c)     As either High Value or Low Value in each classification, in accordance with the Financial Limits for Contracting as set out in the Council’s Financial Regulations.

7.2         Process for Contracts under £85,000 – Low Value

Where the Total Contract is less than £85,000 (goods and services) or £250,000 (works), the contract will be categorised as Low Value and the following process to secure a minimum of 3 competitive quotations is considered appropriate and must be followed:

(a)      The process of obtaining quotations must comply with the corporate ‘Code of Practice on Tendering and Contracts’. Quotations must be in writing and be obtained from Suppliers, which, in the course of their normal business, supply the type of goods or services or execute the type of work required to be done;

(b)      Where possible a minimum of 2 of the quotations must be provided by local Suppliers (FY postcode).

(c)       The contract should be awarded to the Supplier submitting the ‘most advantageous’ quotation that represents best value for money for the Council taking account of quality, social value and whole life costs. The Senior Officer shall be responsible for setting the contract terms and prices in consultation with the Head of Procurement, who shall keep a register of all contracts awarded.

7.3        The requirement to obtain a minimum of three competitive quotations (as detailed in rule 7.2 above) shall not apply when:

(a)      A Corporate contract is in existence for the type or range of work, goods or services required, such contract having been itself established by the Head of Procurement in accordance with the provisions of these procedure rules. In such case, purchase orders shall be placed with the nominated Supplier, without the requirement for further competition;

(b)      The Head of Procurement, in consultation with the Senior Officer, is of the opinion that it is not possible to obtain three quotations; or there would be no benefit to the Council in obtaining competitive bids (as in the case of sole supply, specialised repairs, parts, plant and materials or specialist professional services or, in cases of extreme urgency). The decision must be confirmed in writing and recorded;

(c)       The works or service to be executed constitutes an extension of an existing contract on terms which, having regard to any variations in prices generally for work or goods or services of that nature, are no less favourable than for the contract current at the time of negotiation. Such an extension must be approved by the appropriate Senior Officer after consultation with the Head of Procurement;

(d)      The requirement is an exemption under the provisions of Contract Procedure Rule 25.

7.4         Where Contract Procedure Rule 7.3 is to be applied and there is no requirement for three competitive quotations to be obtained:

(a)    Any offer, which is intended to be accepted, shall be made in writing;

(b)    the Senior Officer remains responsible for securing value for money, probity and accountability and periodically testing the market for such items in order to ensure that the best terms reasonably available are being secured.

7.5         Purchase Orders (via the Council’s e-ordering system) must be placed prior to works, goods or services being delivered (subject to budgetary provision) and payment made, in accordance with the Council’s Financial Regulations and the corporate ‘Code of Practice on Tendering and Contracts’.

7.6         Process for Contracts over £85,000 – High Value

Where the Total Contract Value is equal to or exceeds £85,000 (goods and services) or £250,000 (works), the contract will be categorised as High Value and the following tender process is considered appropriate and must be followed. (NB: All high value tenders must be procured through the Corporate Procurement Team):

(a)    A clear business case exists for the procurement and financial approval is in place in accordance with the Council's Financial Regulations;

(b)    The tender is advertised openly and public notice has been given;

(i)      via the Council’s e-tendering system and on the Central Digital Platform;

(ii)      as required by UK Procurement Legislation and in a manner that complies with transparency rules.  

7.7         There shall be no shortlisting of Suppliers for contracts with an estimated Total Contract Value lower than the UK Procurement Legislation threshold for services.

7.8         All tenders received shall be opened in accordance with Contract Procedure Rule 17.

7.9         Contract Procedure Rule 7.5 shall not apply where: -

(a)    there is an invitation to negotiate a tender in accordance with the provisions in Contract Procedure Rule 4.3 and Contract Procedure Rule 4.4, or to any tender negotiated following such an invitation.

7.10       Records of all material decision making must be kept to ensure a full and robust audit trail is in place for each Procurement Exercise.

7.11       Records required in line with rule 7.10 must be retained for a period of six years following the expiry or termination of the contract.

8. Advertising

8.1               Officers shall ensure that opportunities are advertised in a manner that complies with UK Procurement Legislation.

8.2               Where a Procurement Exercise is to be conducted in an open process where invitations to submit a proposal are not restricted and the Total Contract Value exceeds £30,000 the opportunity must be advertised on the e-tendering platform and an appropriate tender transparency notice must be issued on Central Digital Platform.  In these circumstances the Head of Procurement or their nominated representative must be contacted for advice and support.   

8.3         Consideration must be given to ensuring that barriers are not placed which may prevent SMEs from submitting proposals.

8.4         The Procurement Team can guide Officers in ensuring that Council opportunities are advertised in a manner that generates a sufficient level of interest and competition.

9. Framework Agreement

9.1         The term of a Framework Agreement which is subject to the UK Procurement Legislation should not exceed the term as set out within that Legislation.

9.2         Where a Framework Agreement is concluded with a single provider contracts let under that Framework agreement shall be awarded within the limits of the terms specified in the Framework Agreement.

9.3         Where a Framework Agreement is concluded with more than one provider contracts based on that Framework Agreement shall be awarded as follows:

(i)        direct award without re-opening competition where all the terms governing the provision of the works/services/supplies concerned are set out in the Framework Agreement and the objective criteria for determining which party shall perform the contract are identified in the Framework Agreement; or

(ii)      where the Framework Agreement sets out all the terms governing the provision of the works/services/supplies concerned and where the Framework Agreement states that it may be used, partly by direct award and partly by reopening competition provided that the Framework Agreement sets out the objective criteria which will be used to determine whether a contract will be placed by a re-opening of competition or by direct award; or

 (iii)     where the Framework Agreement does not include all the terms governing the provision of the works/services/supplies concerned, by holding a mini-competition with the providers which are party to the Framework Agreement. 

Conducting purchase and disposal

10. Competition Requirements for Purchasing

10.1       Having determined the classification of the contract as detailed at Rule 7 the Officer must calculate the Total Contract Value. The following procedures apply where there are no other procedures which take precedence. If in doubt, Officers must seek the advice of the Head of Procurement.

10.2       Subject to Rule 10.4 where the Total Contract Value for a purchase is within the values in the first column below, the procedure in the second column must be followed. 

Total value and Award procedure
Total ValueAward Procedure

Low value:

Up to £85,000 for goods and services (exclusive of VAT)

Up to £250,000 for works (exclusive of VAT)

At least three written Quotations, two of which must be sourced through local suppliers with an FY postcode where possible. 

 Where the contract value exceeds £30,000 the opportunity (where not restricted) and award must also be advertised on the Central Digital Platform 

High Value:

Over £85,000 for goods and services (exclusive of VAT) AND below Public Contract thresholds as set out in Schedule 1 of the Procurement Act, 2023 and updated every 2 years.

Over £250,000 for works (exclusive of VAT) AND below Public Contract thresholds as set out in Schedule 1 of the Procurement Act, 2023 and updated every 2 years.

Invitation to Tender by open advertisement via the e-procurement portal.

The opportunity and award must also be advertised on the Central Digital Platform

Above thresholds for works and goods and services as set out in Schedule 1 of the Procurement Act, 2023 and updated every 2 years.

Procedure in line with UK Procurement Legislation. The opportunity and award must also be advertised on the Central Digital Platform

10.3       Officers must not enter into separate contracts nor select a method of calculating the Total Contract Value in order to minimise the application of these contract procedure rules.

10.4      Irrespective of Rule 10.2 Relevant Contracts and Framework Agreements that are subject to external grant funding requirements shall be advertised in accordance with the appropriate published guidance.

10.5      Where the Total Value exceeds £30,000 the Corporate Procurement Team should be consulted prior to the commencement of the procedure in order to ensure that all transparency requirements can be met. 

11. Disposal of Assests and Provision of Services

11.1      Assets for disposal must be sent to public auction except where the Head of Procurement is satisfied that better Value for Money is likely to be obtained by inviting Quotations or Tenders. These may be invited by advertising on the e-tendering portal or any other means as deemed appropriate. 

11.2       Where any Council Services are seeking to provide their services to external purchasers the Head of Procurement must be consulted to ensure that where contracts to work for other organisations are contemplated and any bid, tender and contract for provision of services is done in accordance with the Financial Regulations.

12.  Engaging Consultants to Provide Professional Services

12.1      The appointment of Suppliers providing professional services shall be conducted in accordance with the procedures detailed within these contract procedure rules and as outlined below and further detailed within the Code of Practice for Engaging Consultants. 

12.2       Contracts for Consultancy Services – Works

If the appropriate Senior Officer considers it in the best interests of the Council to employ consultants for specific works assignments, then the Senior Officer shall consult the appropriate Cabinet Member and ensure that, as part of the wider works approvals, the necessary business case and approvals are in place prior to undertaking an appropriate procurement exercise in line with these contract procedure rules.

12.3       Consultancy Services – Non-Works

If the appropriate Senior Officer, after consultation with the appropriate Cabinet Member considers it to be in the best interests of the Council to appoint consultants to carry out any investigations, feasibility study or other assignment not related to works, then a report shall be made, to the Corporate Leadership Team (contracts classed as high value) or the appropriate Chief Officers/Directors, (contracts classed as low value) in order to seek approval to proceed with the appointment of consultants.

12.4      Tenders or quotations shall then be invited in accordance with the provisions laid out in these Contract Procedure Rules.

12.5      It shall be a condition of the engagement of the service of any consultant (not being officers of the Council) that in relation to such engagements, they shall: -

(a)    comply fully with these Contract Procedure Rules;

(b)    at any time during the period of the engagement, produce to the appropriate Senior Officer or authorised representative on request, all the records maintained in relation to the engagement

(c)     on completion of an engagement, transmit all such records to the appropriate Senior Officer at no additional cost;

(d)    on completion of an engagement, transmit all work performed to the appropriate Senior Officer.  Copyright and title of any work performed by any Consultant shall belong to the Authority;

12.6      The engagement of consultants must comply with the ‘Code of Practice for Engaging Consultants’.

12.7      Irrespective of Rule 12.1 Relevant Contracts and Framework Agreements that are subject to external grant funding requirements shall be advertised in accordance with funders published guidance.  

12.8      The engagement of a Consultant shall follow the agreement of a brief that adequately describes the scope of the services to be provided and shall be subject to completion of a formal letter or contract of appointment.

12.9       Records of consultancy appointments shall be maintained in accordance with Rule 7.

12.10    Consultants shall be required to provide evidence of, and maintain professional indemnity insurance policies to the satisfaction of the Head of Procurement for the periods specified in the respective agreement.

12.11    The instruction of external legal advisers must only be carried out by the Head of Legal Services and the instruction of counsel shall not be subject to the requirements of Rules 12.1 – 12.6 (inclusive).

13. Pre-tender Market Research and Consultation

13.1           The Officer responsible for the purchase:

(a)    must consult the Head of Procurement if they wish to consult potential Suppliers prior to the issue of the Invitation to Tender and have regard for any requirement outlined to ensure that future tendering activity is not compromised.

(b)    must conduct pre-market engagement in a manner which does not prejudice any potential Supplier or result in having to preclude Suppliers from future tenders and risk undermining best value and future contract terms.

(c)     must not seek or accept technical advice on the preparation of an Invitation to Tender or Quotation from anyone who may have a commercial interest in them, if this may prejudice the equal treatment of all potential Suppliers or distort competition.

(d)     must ensure that written records are maintained of any pre-tender market research or consultation.

(e)    must have due regard for the transparency requirements set out in Rule 22 prior to undertaking pre-tender market consultation.

13.2      Where it is not possible to evidence that no market distortion has taken place as a result of pre-tender market consultation then Suppliers, once they have been afforded an opportunity to prove otherwise, may be excluded from a tender process.

14. Conditions of Participation and Award Criteria

14.1       Conditions of Participation shall be used to assess Suppliers ability to meet minimum suitability standards, legal status or financial standing. Conditions of Participation shall not include award criteria, non-commercial considerations (unless permitted for in Legislation for low value Procurement Exercises), unrelated subject matter or disproportionate criteria.

14.2      Officers are responsible for ensuring that all Suppliers tendering for a relevant contract or framework agreement meet any required Conditions of Participation and have the necessary:

  •  economic and financial standing;
  • technical ability and capacity;
  • relevant licences and accreditations (where applicable);

to fulfil the requirements of the Council and that they are not subject to any grounds for exclusion. Should any Supplier fail to meet any Conditions of Participation set out in a tender then they shall not be awarded the contract where this is in line with UK Procurement Legislation. 

14.3       The Officer must define Award Criteria that are appropriate to the purchase and designed to secure an outcome giving Value for Money for the Council and assessing Suppliers ability to deliver the Council’s requirements.  Contracts shall be awarded to Supplier(s) on the basis of Most Advantageous Tender where an assessment of proportionate Award Criteria is made.

14.4       Guidance on proportionate and appropriate Award Criteria can be sought from the Procurement Team.

14.5      In determining the Most Advantageous Tender consideration should be made to evaluating quality; price and social value. The weightings shall vary dependant on the nature of the procurement taking account of factors such as whether the purchase relates to standardised goods, non-standard goods, what element relates to services, the nature of particular markets.

14.6      The default position for the weighting of social value as a criteria shall be 20%. Any deviation from this requires the consideration of the Head of Procurement.

14.7      Officers shall have regard to the Code of Practice on Tendering and Contacts when defining the Award Criteria.

15. Shortlisting

15.1       Shortlisting of Suppliers during a Procurement Exercise may only be undertaken where permitted by UK Procurement law and as specifically outlined in any tender documentation.

15.2       The means by which shortlisting shall be undertaken shall be clearly set out within the Invitation to Tender that must be issued at the commencement of a Procurement Exercise.

16. Invitations to Tender/Quotations

16.1       The Invitation to Tender shall clearly state the manner in which the Procurement Exercise shall be conducted.

16.2       The Invitation to Tender shall state that the Council reserves the right to reject a Tender that is not received by the date and time stipulated in the Invitation to Tender. No Tender delivered in contravention of this requirement shall be considered without the Head of Procurement prior approval.

16.3       All Invitations to Tender shall include the following:

16.3.1   A specification that describes the Council’s requirements in sufficient detail to enable the submission of competitive offers;

16.3.2   A requirement for Suppliers to declare that the Tender content, price or any other figure or particulars concerning the Tender have not been disclosed by the Supplier to any other party (except where such a disclosure is made in confidence for a necessary purpose);

16.3.3   A requirement for Suppliers to complete fully and sign all Tender documents including a form of Tender, certificates relating to canvassing and non-collusion, and identification of any part of their submission deemed to be commercially sensitive or confidential;

16.3.4   Notification that Tenders are submitted to the Council on the basis that they are compiled at the Supplier’s expense;

16.3.5   A description of the Award Procedure and, unless defined in a prior notice, a definition of the Award Criteria in objective terms and if possible in descending order of importance;

16.3.6   Unless the Tender is sought in accordance with an electronic tendering process which is approved by the Head of Procurement and/or the Head of Legal Services and/or which is permitted by the Invitation to Tender documents, a statement that any Tenders submitted by any other means shall not be considered.

16.4       All Invitations to Tender or Quotations must specify the goods, service or works that are required, together with the terms and conditions of contract that will apply (see Rule 23).

16.5       The Invitation to Tender or Quotation may state that the Council is not bound to accept any Quotation or Tender.

16.6       Where a requirement to meet other Council policies and procedures is required these should also be stipulated in the Invitation to Tender.

17. Submission, Receipt and Opening of Tenders/Quotations

17.1       Suppliers must be given an adequate period in which to prepare and submit a proper Quotation or Tender, consistent with the complexity of the Council’srequirement. UK Procurement Legislation lays down specific, minimum time periods in relation to Above Threshold Tenders (see guidance in the Code of Practice for Tendering and Contracts).

17.2       All Tenders must be returned in accordance with any Invitation to Tender and associated instructions.

17.3       Tenders received shall be rejected where they have not been submitted in accordance with a specified, electronic tendering process which is approved by the Head of Procurement and/or the Head of Legal Services and/or which is permitted by the Invitation to Tender documents.

17.4       Each Tender must:

be adequately protected on receipt to guard against amendment of its contents

have a suitable audit trail in place to ensure compliance with the requirements of this Rule.

17.5      Any Tender submission received after the published deadline for receipt of tenders shall not be accepted unless there are any extenuating circumstances and such circumstances are recorded and agreed with the Head of Procurement or the Head of Legal Services.

18. Clarification Procedures

18.1       Providing clarification in respect of an Invitation to Tender to Suppliers or seeking clarification from a Supplier is permitted and should be conducted through the e-tendering portal unless there are exceptional circumstances.

18.2       Where clarification takes place by means other than through the e-tendering portal, detailed written records should be maintained and retained to ensure transparency, fairness and that no material change to the nature of the Procurement Exercise or any activity associated with it occur.

18.3      Discussions with Suppliers after submission of a Tender and before the award of a contract with a view to obtaining adjustments in price, delivery or content (i.e. post-tender negotiations) are not permitted unless set out as being permitted within the Instructions to Tender. Where a clarification would result in a material change the Contract must either be re-tendered or the appropriate Supplier should be excluded from the Procurement Exercise.

19. Evaluation

19.1       Tenders must be evaluated and awarded in accordance with the published, pre-determined Conditions of Participation and Award Criteria. During this process, Officers shall ensure that submitted Tender prices are compared with any pre-tender estimates and that any discrepancies are examined and resolved satisfactorily.

19.2       The arithmetic in compliant Tenders must be checked. If arithmetical errors are found they should be notified to the tenderer, who should be requested to confirm or withdraw their Tender. Alternatively, if the rates in the Tender, rather than the overall price, were stated within the Invitation to Tender as being dominant, an amended Tender price may be requested to accord with the rates given by the Supplier.

19.3       Where the pricing submitted within a Tender is considered to be abnormally low the Officer should engage the Procurement Team to establish a written explanation from the Supplier for those parts of the Tender considered abnormally low. This should be conducted via the e-tendering system.

19.4       The evaluation of Tender quality shall be strictly undertaken following the documented quality assessment criteria and associated scoring methodology. Evaluation of Tenders shall be undertaken by a panel of appropriately qualified and experienced Officers.

19.5       Evaluation of high value tenders shall be undertaken by no less than three Officers. Thorough evidence of any scoring awarded during the evaluation of tenders shall be recorded and documents retained.

19.5       Following evaluation feedback shall be provided to Suppliers in a manner which meets the requirements of UK Procurement Legislation and transparency. Feedback shall be undertaken in a manner which complies with Contract Procedure Rule 21 and which does not disclose any information of a confidential or commercially sensitive nature.

20. Post Tender Negotiations

20.1       Post-tender negotiations must only be undertaken where grounds allowing for such have been specified in line with UK Procurement Legislation. For all other procedures if post-tender negotiations are necessary, then such negotiations shall only be undertaken in the strictest of circumstances as may be permissible with the Supplier who is identified as having submitted the most advantageous Tender and after all unsuccessful Suppliers have been informed. During negotiations tendered rates and prices shall only be adjusted in respect of a corresponding adjustment in the scope or quantity as may have been permitted within the Tender documents. Officers appointed by the Chief Officers/Directors, to carry out post-tender negotiations should ensure that there are recorded minutes of all negotiation meetings and that both parties agree actions in writing.

20.2       Post-tender negotiation must only be conducted in accordance with the guidance issued by the Head of Procurement who, together with the Corporate Procurement Team, must be consulted wherever it is proposed to enter into post-tender negotiation. Negotiations must be conducted by a team of at least two officers, one of whom must be from a division independent to that leading the negotiations.

20.3      In the case of a submitted tender complying with the specification but exceeding the financial limit approved by the Executive by more than 5%, then:

(a)   the appropriate Senior Officer may negotiate a revised tender with an amended specification with the lowest tenderer and any other tenderer whom the Senior Officer considers appropriate, if to do so will bring the negotiated tender sum within 5% of the amount approved under the Financial Procedure Rules;

(b)   the negotiated tender shall not be accepted until the Chief Financial Officer is satisfied that budget provision has been made for the additional cost.

20.4      If the amount of the tender proposed to be accepted exceeds the amount of the budgetary provision by more than 5%, or if there are revenue consequences not fully provided for, then, in consultation with the Chief Financial Officer a report on the scheme together with a financial statement must be submitted to the Executive or Cabinet Member who shall recommend whether or not the scheme should proceed (above £250,000 – Key Decision Executive approval / below £250,000 Cabinet Member Non Key Executive Decision).

20.5       Where post-tender negotiation would result in fundamental changes to a Relevant Contract or Framework Agreement (such as to the specification or price) or conflict with any statutory provisions or with UK Procurement Legislation which would be likely to distort competition the contract or agreement must not be awarded but re-tendered.

 Contract Formalities and Waivers

21. Award of Contracts

21.1      Chief Officers/Directors, may accept Quotations and Tenders received in respect of proposed contracts and Framework Agreements, provided they have been sought and evaluated fully in accordance with these contract procedure rules.  

21.2      Prior to the award of a contract Officers must check whether the Supplier is listed on the Debarment List as an Excluded or Excludable supplier, and make an appropriate assessment regarding Suppliers suitability to formally enter into contract. Where a Supplier is listed on the Debarment List the Corporate Procurement Team should be contacted in order to determine appropriate steps.

21.3      Proposed contracts and framework agreements that are expected to be categorised as High Value (relating to either expenditure or income) are subject to an Officer Non-Key Decision unless Executive approval is in place prior to formal award of the contract.

21.4       For contracts and Framework Agreements subject to UK Procurement Legislation, the Officer must notify all Suppliers simultaneously and as soon as possible of the intention to award the contract or Framework Agreement to the successful Supplier, and provide an Assessment Summary as required by UK Procurement Legislation. The Officer must observe a standstill period of at least eight working days following rule publication of a contract award notice. If the decision to award the contract is challenged by an unsuccessful Supplier within the standstill period then the Officer shall not award the contract and shall immediately seek the advice of the Head of Procurement. The requirement to notify Suppliers of the intention to award a contract or Framework Agreement in this Rule 21 does not apply to:

  •           contracts that are not subject to the full application of UK Procurement Legislation (such as specific services listed under UK Procurement Legislation, or where the value is under the legislative threshold), and;
  •         contracts subsequently awarded and called off based on a Framework Agreement that was let in accordance with UK Procurement Legislation, unless the framework requirements dictate otherwise.

21.5       If a Supplier that has been unsuccessful in tendering for a low value contract requests, in writing the reasons for a Contracting Decision, the Officer must give in writing the name(s) of the successful Supplier(s), the award criteria and the reasons for the decision including the score of the Supplier being debriefed and that of the successful Supplier(s) along with the characteristics and relative advantages of the successful Supplier’s tender within 10 days of the request.

22. Transparency

22.1      Officers must have due regard to transparency requirements laid out in UK Procurement Legislation and must consult with the Head of Procurement in good time and in advance of any procurement decision, pre-procurement supplier discussions, planned process, contract award, an amendment to an existing contract or the termination of a contract in order that appropriate transparency notices can be published on the Central Digital Platform.

22.2      Contracts with a total value of over £5,000,000 are subject to additional contract performance reporting requirements. Supplier performance must be recorded in line with the requirements set out in UK Procurement Legislation and published on the Central Digital Platform by contract managers.

22.3      Due regard must be had to the requirements set out within the Local Government transparency Code with respect to the publication of data relating to how money is spent, how assets are used and how decisions are taken.

23. Contract Documents

23.1. Relevant Contracts

23.1.1   All Relevant Contracts that exceed £30,000 shall be in writing. 

23.1.2   All Relevant Contracts, irrespective of value, shall clearly specify:

  •      what is to be supplied (i.e. the works, materials, services, matters or things to be furnished, had or done);
  •      the provisions for payment (i.e. the price to be paid and when);
  •      the time, or times, within which the contract is to be performed;
  •        the provisions for the Council to terminate the contract.

23.1.3   The Council’s standard terms and conditions or standard contract forms issued by a relevant professional body must be used wherever possible.

23.1.4   In addition, every contract or agreement must also state clearly as a minimum:

  •         that the Supplier may not assign or sub-contract without prior written consent;
  •         any insurance requirements;
  •         health and safety requirements;
  •         data protection requirements, if relevant;
  •       corrupt practices as detailed in the Bribery Act 2010;
  •         Freedom of Information Act requirements;
  •         reference to requirements to align with Council policies and procedures as may be relevant;
  •         a right of access to relevant documentation and records of the Supplier for monitoring and audit purposes if relevant;
  •         that the Council shall pay the Supplier and the Supplier shall pay its subcontractors within 30 days of an undisputed invoice.

23.1.5   All Suppliers are expected to sign the Council’s Suppliers Charter and adopt the principles therein.

23.1.6   The advice of the Head of Procurement and/or the Head of Legal Services must be sought for the following Relevant Contracts or Framework Agreements:

  • where the Total Value exceeds £30,000; 
  • those involving leasing arrangements;
  • where it is proposed to use a supplier's own terms, or; 
  • those that are complex in any other way.

23.2. Contract Formalities

23.2.1   Agreements shall be completed as follows: 

Contract formalities, how agreements will be completed
Total ValueMethod of CompletionBy

Up to £30,000

signature

Authorised Signatory/Relevant Senior Officer

Above £30,000

2 signatures

either the Head of Procurement or Head of Legal Services and the relevant Chief Officer/Director,

Works contracts above £250,000

2 signatures and sealing

Head of Legal Services or authorised representative and the relevant Chief Officer/Director,

It should be noted in respect of sealing, in addition to the above, contracts shall be sealed in circumstance where the Head of Procurement or the Head of Legal Services deem there is a requirement to do so and:

  •         Where it is considered that there is a requirement to enforce the contract for more than six years after its end;
  •         Where it is required by statute, an external funding body or any party to the contract;
  •         Where the price paid, or received, under the contract is a nominal price and does not reflect the value of the goods, services or works;
  •         Where a performance bond is established on behalf of the Supplier or their guarantors;
  •         Where there is any doubt about the authority of the person signing for the other party. 

23.2.2   Where a contract is high value, high risk or long term, advice should be sought with regard to how a contract should be executed.

23.2.3   The Head of Procurement or the Head of Legal Services shall continue to seal contracts that do not need to be sealed where it is considered that there may be a requirement to retain the safeguards that sealing a contract provides.

23.2.4   Where the Head of Legal Services considers that a particular transaction requires further protection due to the passing of some interest, right or property or is confirmed, or an obligation binding on some person is created or confirmed or for any reason deemed to be required then the contract shall be executed as a deed.

23.2.5   The Officer must consult the Chief Financial Officer about whether a Parent Company Guarantee is necessary when a Supplier is a subsidiary of a parent company and:

  • the Total Value exceeds £250,000, or;
  • award is based on evaluation of the parent company, or;
  • there is some concern about the stability of the Supplier.

23.2.6   The Officer must consult the Chief Financial Officer about whether a Bond is needed:

  • where the Total Value exceeds £1,000,000, or;
  • where it is proposed to make stage or other payments in advance of receiving the whole of the subject matter of the contract and there is concern about the stability of the Supplier.

23.2.7   A copy of all fully signed contracts over a value of £30,000 must be passed for recording on the Council’s contract register.

24. Dispensations

24.1     The Executive or an Executive Member acting in pursuance of delegated powers has the power to waive any requirements within these contract procedure rules for specific projects with a value greater than the Procurement Threshold value only where the grounds set out in Chapter 3 of UK Procurement Legislation permit.

24.1.1  A dispensation shall only be granted in ‘exceptional circumstances’ and for reasons outside the Council’s control, when, after certification by the Head of Procurement and Head of Legal Services it is not possible to comply with these Rules.

24.1.2   Dispensations do not have the ability to overcome the statutory requirements of UK Procurement Legislation. UK Procurement Legislation shall always prevail. Dispensations not granted in compliance with UK Procurement Legislation shall be a breach of these Contract Procedure Rules.

24.1.3  An express note of any dispensation from any of the provisions of these Procedure Rules and of the circumstances by which the dispensation shall have been justified shall be recorded in accordance with Council approved Executive arrangements.

24.1.4   The Head of Procurement will keep a register of all Council approved dispensations.

25. Exceptions 

25.1       Where the contract value is less that the Procurement Threshold and notwithstanding the provisions of other Contract Procedure Rules, tenders and quotations shall not be required to be invited where the following exceptions apply:

  •         The Head of Procurement, after consultation with the relevant Chief Officer/Director and appropriate Cabinet Member, is of the opinion that the work, goods and services can only be obtained from a sole supplier or there would be no benefit to the Council in giving public notice for inviting tenders.
  •          It is necessary, for unavoidable operational reasons, which are identified by the Senior Officer, to extend the term of a contract, in which case such extension of contract term shall be at the discretion of the Head of Procurement.
  •          The contract is for the purchase or production of a work of art or museum specimen within the amount approved in the budget.
  •          The purchase or sale is to take place by auction or at a public fair or market and that the Head of Procurement has deemed that the Council’s best interest will be served by purchase through auction and has agreed an upper limit for bids.
  •          The contract is for the engagement of an artiste or performer.
  •          The contract is applicable to "services" provided in connection with hospitality expenditure, in which case a register of such hospitality shall be kept by the appropriate Senior Officer.
  •          The contract is for specific work, goods or services that have been granted a standing dispensation by the Council. The Head of Procurement shall maintain a register of all such dispensations.
  •          The Head of Procurement, after consultation with the relevant Chief Officer/Director and appropriate Cabinet Member, is of the opinion that the need for the goods services or works is so urgent that the time needed to comply with the rules would be prejudicial to the Council’s interests.
  •          The Head of Procurement, after consultation with the relevant Chief Officer/Director and appropriate Cabinet Member, is of the opinion that there are value for money reasons justifying a waiver.

25.2       Where a proposed contract or agreement is subject to the UK Procurement Legislation, Chief Officers/Directors, and the Head of Procurement have no delegated powers. No exception under Rules 25 can be granted if the Threshold set in UK Procurement Legislation applies and tenders shall be invited in accordance with the provisions of these Rules.

25.3       All exceptions, and the reasons for them, must be signed by the relevant Chief Officers/Directors, and Head of Procurement, recorded and held by the Head of Procurement. It shall be the responsibility of the relevant Chief Officer/Director to ensure the relevant Cabinet Member is fully informed of any exception.

Contract Management

26. Managing Contracts

26.1       Directors/Heads of Service in sponsoring departments are to name contract managers for all new contracts. All contracts must have a named Council contract manager for the entirety of the contract and these named contract managers shall be equipped with the necessary capabilities to effectively manage contracts.

26.2       Contract Managers must follow the procedures set out in the Council’s Guide to Contract Management.

26.3       Contract Managers must have due regard to transparency requirements in line with Rule 22.

26.4       The Chief Financial Officer may require that a Council-developed Gateway review process may be applied to all contracts deemed to be High Risk, High Value, or High Profile. This process must be applied at key stages of major procurements.

26.5       During the life of the contract, the Officer responsible for managing the contract must monitor in respect of:

  •       performance;
  •       compliance with contractual obligations;
  •       cost;
  •       any Value for Money requirements;
  •       user satisfaction and risk management; 
  •       any necessary change control or variations during the term.

26.6       In line with Rule 26.3, for contracts with a Total Contract Value in excess of £5,000,000 a minimum of three meaningful key performance indicators shall be determined prior to contract commencement and these measures shall be used to assess contractor performance.

26.7       For all high value contracts, contract managers must consider maintaining a risk register during the contract period, undertake appropriate risk assessments and for identified risks ensure contingency measures are in place.