tenders and contracts these regulations form part …...3.2 if a contract involves generating income...

Tenders and Contracts Regulations 2019

These Regulations form part 4.I of the Constitution and were adopted by Full Council on 15 July 2019

TENDERS AND CONTR ACTS REGUL ATIONS 2019 2

ContentsBackground 3

Section 1 – General 4

1. TheLegislationGoverningtheseRules................................................ 4

2. GlossaryofTermsisprovidedatAppendixA..................................... 4

3. ApplicationoftheRegulations............................................................. 4

4. OfficerResponsibilities......................................................................... 4

5. DirectorResponsibilities...................................................................... 5

6. DeclarationofInterest......................................................................... 6

Section 2 – Make or Buy 7

7. PreProcurement................................................................................... 7

Section 3 – How we Buy - Approach and Principles 8

8. HowweBuy.......................................................................................... 8

9. E-procurementanduseofE-sourcing(tendering)............................... 8

10. ContractValue,AggregationandexistingCouncilContracts................................................................................. 8

11. ProceduresandApprovalProcessfortheCouncil’sTenderingandRequestforQuotationActivitiesforLowValueandFormalTendering.................................................................................. 9

12. PreTenderMarketConsultation....................................................... 10

13. LondonLivingWage........................................................................... 10

14. ThePublicServices(SocialValue)Act............................................... 10

15.NominatedorNamedSub-contractorsandSuppliers........................ 10

16.Collaboration...................................................................................... 11

17.ProvisionofServicesandWorksforOtherOrganisations............... 11

18. TenderingwithorthroughotherPublicBodies................................. 11

19. WaiversandEmergencies................................................................... 11

20.PreparationofaSpecification............................................................ 12

21.AdvertisingandtheNumberofTenders............................................ 12

22.StandardsandEvaluationCriteria..................................................... 13

23.StandardContractClauses................................................................ 13

24. FormofContractforallAwards........................................................ 16

25.InvitationstoTenderandQuotations/TenderingInstructions.......... 16

26. Submission,ReceiptandOpeningofTenders/Quotations................ 17

27.PostSQandTenderClarifications..................................................... 17

Section 4 - Contract Award 19

28.ContractAward................................................................................... 19

29.ContractPre-conditionsandPreliminaries........................................ 20

30. ExtrasandVariations.......................................................................... 20

Section 5 –Contract Mobilisation 21

31.TenderRecords................................................................................... 21

32.ContractsRegister............................................................................... 21

33.ContractStorage................................................................................ 21

Section 6 - Contract Management 22

34.ManagingContracts........................................................................... 22

35.RiskAssessment&ContingencyPlanning.......................................... 22

36.ContractMonitoring,Evaluation&Review....................................... 22

Appendices 23

AppendixAGlossary................................................................................ 23

AppendixBProcurementProcessFlowchart........................................... 28


https://www.croydon.gov.uk/sites/default/files/articles/downloads/Corporate%20Plan%202018-22.pdf

The Council’s Commissioning Framework principles which these regulations support are outlined below:

Ethical And Sustainable Commissioning

Wewillembedethicalandsustainableprocurementconsiderationsinallaspectsofcommissioningpractice.WewillusetheCouncil’spurchasingpowertomaximisesocialvalue,fosteringlocalemployment,promotingfairpay,encouraginglocalbusinessgrowthandsupportingcommunitypriorities.

Principles

Evidencebased

Preventative Localitybased CollaborationsandPartnerships

ResidentFocused

DeliveringOutcomes

Wewillusedataandinsightsatthelocalityleveltogetherwithserviceuserinputtoinformrobustdecisionsthataidourcommissioningandprocurementpractices.

Wewillfocusonapreventativeapproach,inpartnershipwithourcommunities,businessesandresidents,enablingempowermentandself-resilience.

Wewilltakealocalitybasedcommissioningapproach,whichtakesaccountoftheexistingstrengths,skillsandresourcestoensurethatinvestmentdecisionssupportcommunityempowerment.

Wewillcollaborateorworkjointlywithotherorganisationstoensureimprovedoutcomesandvalueformoneyforourresidents.

Wewillputourresidentsatthecenterofourcommisioningapproach.Wewillinvolvecustomersandserviceusersintheco-productionofservices.

Wewillcommissionforsustainableandeffectiveoutcomesthatdeliverbeyondserviceandorganisationalstructures.

Theprinciplesoftheseregulationsare:

• toachievegoodvalueformoneyanddeliversocialvaluewhereverpossible;

• todeliveracompetitiveprocess;ensuringthereisnodiscrimination,withfairandtransparentprocedures,andequaltreatmentofallpotentialsuppliers;

• toencourageandensurecontinuousimprovementinthedeliveryofCouncilservicesthroughtheapplicationofvalueformoneyprinciples;

• toincorporateeffectiveandbestpracticeprocedures;

• topublishclearandunderstandablerules;

• tominimiserisksandtoprotecttheCouncil’sinterestsandreputation;

• toensurecontrolsandaccountability,andalwaystoactwithinthelaw;

• tomaintainanauditabletrailofalltenderactivity;

• toberesponsivetoanyweaknessesidentifiedbyinternal/externalaudit;

• toensurethatregulationsreflectthecurrentprocurementenvironment;

• toeffectivelysupportthedeliveryofdirectservices;

• tohaveregulationswithwhicheveryonecomplies.

TheseTendersandContractsRegulationsaredesignedtoachievethesekeycommissioningandprocurementprinciples.

TheseRegulationsarealsothebestdefenceagainstallegationsthatapurchasehasbeenmadeunfairly,incorrectlyorfraudulently.AllthoseinvolvedinthecommissioningandprocurementprocessmustcomplywiththeseRegulations.Failuretodosomayleadtodisciplinaryactionbeingtaken.

Background

TheseTendersandContractsRegulationsaredesignedtoensurethatallContractscoveredbytheseRegulationswillbecosteffectiveandmeettheprioritiesofourCorporatePlan,linkbelow:




1. The Legislation Governing these Rules

1.1 TheseRegulationsaremadeunderSection135oftheLocalGovernmentAct1972andanysubsequentqualifyingoramendinglegislation.UndertheLocalGovernmentAct2000themakingandamendingoftheseRegulationsandtheapprovalofanyexceptionstothemarepartoftheCouncil’snon-executivefunctions.

1.2 TheseRegulationsarepartoftheCouncil’sConstitutionandgovernallrelevantContractsincludingthosefundedbywayofgrant.

1.3 TheEURulesandnationallegislationandrelatedPublicContractsRegulations(PCR)2015&ConcessionsContractsRegulations(CCR)2016,whichaffectscontractsundertheseRegulations,takesprecedence.

1.4 TheseRegulationsaresubjecttoanygeneralwaiversagreedorprovidedforbytheseRegulationse.g.Regulation19.

1.5 AnyoneoperatingtheseRegulationsmustalsofollowtheCouncil’sFinancialRegulations.

1.6 TheseRegulationssupportthePublicServices(SocialValue)Act2012andasamended,whichallowforspecificnon-commercialconsiderationstobetakenintoaccountincontractingdecisions.

2. Glossary of Terms is provided at Appendix A

3. Application of the Regulations

3.1 TheseRegulationsapplyiftheCouncilintendstoenterintoacontracteitherasapurchaserorasaproviderwithanotherentity.

3.2 IfaContractinvolvesgeneratingincomeforeithertheCounciloraprovider,theOfficerresponsiblemustmakeanestimateofthenotionalvalueofthecontractandusetheseRegulationsifthevalueisestimatedtobe£100,000ormore.

3.3 TheseregulationsapplytoallContractsexceptforthefollowingtypesofContracts:

a) ContractsofemploymentwhichmakeanindividualadirectemployeeoftheAuthority;

b) Fines;

c) Paymentoftaxes;

d) SituationswheretheCouncilcarriesoutworkbyarrangementwiththeownerofanypropertybutinexerciseoftheCouncil’sstatutorydefaultpowers;

e) Agreementsdirectlyassociatedwiththeacquisition,disposal,ortransferofassetsorland(towhichtheFinancialRegulationsshallapply).

f) GrantsthattheCouncilisapplyingfororissuing.

4. Officer Responsibilities

4.1 Officersinvolvedinthecommissioningandprocurementprocessmustcomplywith:

• TheseRegulations;

• AllUKandEuropeanUnionbindinglegalrequirements;

• TheCouncil’sFinancialRegulations;

• TheCouncil’sStaffCodeofConduct;

• TheCouncil’sGifts&HospitalityProcedures;

• TheAnti-Briberypolicy;

• Declareanyconflictsofinterest;

• TheCouncil’sSchemeofDelegation;

Officersmustensurethatanyagents,consultantsandcontractualpartnersactingontheirbehalfalsocomplythroughrelevantprovisioninthecontractofengagementorothersuitablemeans.Anyarrangements,whichmight,inthelongterm,preventtheeffectiveoperationoffaircompetition,mustbeavoided.

4.2 Officersmust:

a. Haveproperregardforallnecessarylegal,financialandprofessionaladvice;

b. EnsurecompliancewiththeCouncil’spolicyandproceduresforexample EqualitiesandDiversity,Safeguarding,ICT,Council’sITSecurity,Data

ProtectionandSocialValue;

Section 1 – General


c. Declareanypersonalfinancialinterestinacontract.Corruptionisacriminaloffence;

d. Reportanyoffersofbribes,inducementsorgifts&hospitality;

e. Conductarelevantvalueformoneyreview;

f. Ensurethatthereisadequatebudgetprovisionfortheprocurementbeingundertaken;

g. Checkwhetherthereisanexistingcontractthatcanbeusedbeforeundergoingacompetitiveprocess;

h. NotdivideupanycontractinordertoavoidanyrulessetoutintheseRegulations;

i. ReceiveapprovalfortheRP2HowweBuyreport(procurement/commissioningstrategy)beforeadvertisingthecontractingopportunityorinvitinganytendersforarelevantContract;

j. Allowsufficienttimeforthesubmissionofbids;

k. Keepallsupplierbidsconfidential;

l. Keeprecordsofalldealingswithsuppliers;

m. ObtainallrequiredapprovalsatthecorrectpointintheprocurementprocessasadvisedbytheseRegulationsandcompleteawrittencontract(signedand/orsealed,asrequired)beforeplacinganorderorraisingapurchaseorderforanysupplies,servicesorworks;

n. Whereappropriatedon’tawardacontractuntiltheStandstillperiodisover;

o. EnterallpurchaseorderinformationontotheCouncil’sfinancialsystempriortoanygoodsorservicesbeingprovided.Raisingpurchaseorders,andanypermittedexceptions,mustbeconductedinaccordancewiththeCouncil’sP2PGuidancedocumentation;

p. Identifyanappropriateseniormanagerwiththerelevantdelegation,whoisthedesignatedcontractownerresponsiblefortherelationshipwiththesupplier.Inaddition,acontractmanagerwithresponsibilityfordaytodayissuesandensuringthecontractdeliversasintendedmustalsobeappointed;

q. ThecontractmanagershouldensurethesafekeepingofcontractdocumentationinlinewithCroydon’sdocumentretentionpolicyanduploadedontotheCouncil’scontractmanagementsystem;

r. Throughout,ensurethattheprocurementexercisedeliversagainsttheCouncil’sCommissioningFrameworkandsupportsthedeliveryoftheCorporatePlanPriorities.

4.3 WhenanyemployeeeitheroftheCouncilorofaserviceprovidermaybeaffectedbyanytransferarrangement,OfficersmustensurethattheTransferofUndertaking(ProtectionofEmployment2006Regulations(amended2014))TUPEisconsideredalongwithanyissuesrelatedtoemployee’smembershipoftheLGPS,andTeachersPensionScheme.AdviceandguidanceonTUPEmustbesoughtatanearlystagefromtherelevantdepartmentalHRLead.ThePensionsteammustalsobenotifiedasearlyaspossiblesothattheimplicationsrelatingtopensionsmaybeconsidered.

5. Director Responsibilities

5.1 Directorsmust:

a. EnsurethattheseRegulationsarefollowedandenforcedwithintheirareasofresponsibility;

b. Makethestaffawareoftherequirementsoftheseregulations;

c. Declareanypersonalfinancialinterestinacontract.Corruptionisacriminaloffence;

d. Reportanyoffersofbribes,inducementsorgifts&hospitality;

e. ForContractsover£100,000ensuretherelevantCabinetMember(s)andtheCCBareawareofcommissioningintentionsandareadvisedinadvanceofthepurposeofanyContractthatfallswithintheseRegulations,includingthecommissioningand/ortenderingprocesstobefollowedtosecuretheContractandofanyanticipatedissuesfortheprocess,withparticularregardtoanyserviceimplicationsarising;

f. ConsideranyadvicegivenbyCCB;

g. Monitorcomplianceandinvestigateanynon-compliancewiththeregulationsandreportanyfindingstotheDirectorofcommissioningandProcurementasChairofthecontractsandCommissioningBoard;

h. EnsurethatanythirdpartyparticipatingintheprocurementorsupervisingaCouncilContractagrees,inwriting,tocomplywiththeseRegulationsasiftheywereOfficersoftheCouncil;

Section 1 – General (continued)


i. Approvetheawardandspendofwrittenquotationsunder£100,000inconsultationwiththeCentralBuyingTeam,andinaccordancewithRegulation11toensurevalueformoney.

j. EnsuretheircontractmanagershavekeptcontractdocumentationinlinewithCroydon’sdocumentretentionpolicyanduploadedontotheCouncil’scontractmanagementsystem.

5.2 AdviceandguidanceonTUPEmustbesoughtatanearlystagefromtherelevantdepartmentalHRLead.ThePensionsteammustalsobenotifiedasearlyaspossiblesothattheimplicationsrelatingtopensionsmaybeconsidered.

6. Declaration of Interest:

6.1 AnyOfficermustdeclaretotheirDirectororExecutiveDirectoranypersonalinterestinamattertheyaredealingwith,includingone,whichmayimpingeontheirimpartialitytoapplytheseRegulations.

6.2 NoMember,OfficeroragentoftheCouncilshallimproperlyusehisorherpositiontoobtainanypersonalorprivatebenefitfromanycontractenteredintobytheCouncil.

6.3 ItisarequirementthatallofficersandexternaladvisorscompletetheDeclarationofConfidentialityandInterestFormandcomplywiththeCouncil’sCodeofConductpriortoanyinvolvementindraftingofCouncil’sTenderDocuments,Quotationsoranyinvolvementinevaluationoftendersandthemanagementofthecontract.ThisistoensurethattheCouncil’sproceduresincludingconfidentialityarecompliedwithinaccordancewiththeseRegulations.

6.4 Intheeventthataconflictofinterestarisesduringthelifeofthecontract,allCouncilofficersmustnotifytheirDirectororExecutiveDirector,inwriting,assoonasisreasonablypracticable.Thisnotonlyincludespersonalconflicts,butalsoextendstoanysuspected/knownconflictsofinterestsinrelationtoanyinternalorexternalmatters/personnel.

Section 1 – General (continued)


7. Pre Procurement

7.1 Anynewcommissioningofservicesincludingexistingserviceswherethecontractisduetoend,mustconsidertheMakeorBuydecision,inlinewiththeCouncil’s’CommissioningFrameworkandguidanceintheProcurementandContractManagementHandbook.TheDirectorresponsiblemustsubmitareporttoCCBforagreementtotheproposedoutcomeforvaluesover£100,000.

7.2 Considerationmustbegiventowhatprocurementmethodismostlikelytoachievethecommissioningandprocurementobjectives,includingpackaging(Lots)strategies,internalorexternalsourcing,sharedservices,partneringarrangementsandcollaborativeprocurementarrangementswithotherlocalauthoritiesandgovernmentdepartments.OfficerswillalsoconsiderworkingwithCCGs,statutoryundertakersandCentralPurchasingBodies.Theymayalsoconsidertheestablishmentofseparatetradingentities.

7.3 TherelevantOfficermustrefertotheProcurement&ContractManagementHandbookforfurtherdetailsonprocessandrequirementsbeforeinstigatinganyprocurementexercise.

Section 2 – Make or Buy


Section 3 – How we Buy - Approach and Principles

8. How we Buy

8.1 TheDirectorresponsiblemustsubmitaHowweBuy(procurementstrategy)ReporttotheCCB,settingoutcommissioningintentionsandsourcingstrategy,(intheformatrequired),forallproposedContractawardsforgoodsandserviceswithanestimatedtotalContractvalueof£100,000andabove.WhereitisintendedtocompleteaminicompetitionorcalloffforworksfromanexistingCouncilcontractoranOJEUprocuredframeworkasadvertisedforworks,thenareportisnotrequireduptoanestimatedtotalcontractvalueof£500,000.

8.2 AReportmustbepresentedtoCabinet(intherequiredformat)forapprovalthathasbeenrecommendedbyCCB,wheretheeventualContractvalueisestimatedat£5moraboveunlesstheunderlyingprocurementstrategytowhichitrelateshasalreadybeenreportedandagreedbyCabinet.Inthesecases,theLeaderhasdelegatedtheauthoritytoagreetheprocurementstrategytotherelevantCabinetMember.

8.3 TheHowweBuyreportorCabinetreportshould,asaminimum,setouttheprojectplan,theproposedprocurementroute,compliancewiththeCouncil’spoliciesonLLW,SocialValue,dataprotectionandequalityanalysisrecommendations,anyproposeddeparturesfromstandardprocurementpracticeortheseregulations,theevaluationapproach,risks,timetable,projectstructureanddetailsoftheContract,e.g.term,valueandanyotherrelevantinformation.

8.4 NoadvertisementshouldbeplacedorinvitationtotendermadepriortoapprovaloftheHowweBuyreportinaccordancewithRegulation11.

9. E-Procurement and the Use of E-Sourcing (Tendering)

9.1 E-Procurementisacriticalmethodofensuringtransparency,fairnessandaccountabilityinprocurementprocesses.Assuch,allquotationandtenderingprocessesforContractsrunbytheCounciloronbehalfoftheCouncilmustuseane-tenderingportalunderthesupervisionoftherelevantC&PHeadofService.WhentheCouncilisrunningaquotationortenderingprocessitwilluseitsowne-tenderingportal.Anyothertenderingmethodoruseofothere-tenderingportalsmaybeusedonlywithpriorauthorisationviaaWaiverrequest.

9.2 AllelectronicdocumentationwillbesecurelyaccessedandretainedontheCouncil’se-sourcingwebsite.TheCouncilwillnotaccepthardcopiesofsupplierstendersubmissions.

9.3 TherelevantDirectormustensurethatallinformationrequiredtocommenceane-procurementprocesseffectively,andtoprovideafullaudittrailfortheprocess,isprovided,includingdetailsofevaluationcriteria,theirweightingsandthewayinwhichevaluationscoreswillbecalculated.

10. Contract Value, Aggregation and Existing Council Contracts

10.1 TheOfficerresponsiblemustnotdivideanyContractordinarilytreatedasasingleContractintotwoormoreContractsorinphasedorstageddeliveryinsuchwayastoavoidtheapplicationofanyoftheseRegulations,theUKRegulationsortheEURules.

10.2 ThevalueofContractswhicharesubjecttotheUKRegulationsshallbecalculatedasprovidedforinthoseregulations.ThevalueofanyContractiscalculatednetofVATandoverthetotaldurationoftheContract,includinganypilot,phasesorstagesofdelivery.

10.3 TheOfficerresponsiblemaynotarrangetopurchaseseparatelyanysupplies,servicesorworksthatareavailabletobepurchasedthroughanexistingcontractualarrangementwiththeCouncil,wheretheitemssoughtareeitherthesameorsufficientlysimilartothosethatarethesubjectoftheexistingcontracttofulfiltheCouncil’sneeds.UnlessitcanbeclearlydemonstratedtothesatisfactionoftheChairofCCBforspendabove£100,000andtothesatisfactionoftheStrategicProcurementManagerforspendbelow£100,000,thatusingtheexistingContractwouldnotfulfiltheCouncil’sstatutorydutytoprovideBestValueunderSection3oftheLocalGovernmentAct1999.


11. Procedures and Approval Process for the Council’s Tendering and Request for Quotation Activities

11.1 TheseregulationsapplytoallpurchasesexceptforthosewhereRegulation19.3applies.

11.2 Low Value Procurement (below £100,000)

11.2.1 Forallcontractswithanestimatedvalueofbelow£100,000thefollowingthresholdsapply:

Contract Value

Procedure Approval

Upto£10,000

PreferablytwowrittenquotationsbothtobefromlocalsupplierusingtheCouncil’sBusinessDirectory(ifpossible).

InaccordancewiththeCouncil’sSchemeofFinancialDelegationandDepartmentalSchemeofDelegation.

Over£10,000upto£100,000

Min.threewrittenquotationswithtwofromlocalsuppliersusingtheCouncil’sBusinessDirectory(ifpossible)andprocessedbytheCouncil’sBuyingTeamviatheCouncil’se-tenderingportal.

11.2.2 Forvaluesover£10,000writtenquotationsshouldbeprocessedthroughtheCentralBuyingTeamusingtheCouncil’se-tenderingsystem.QuotationsmustbeprocessedinaccordancewiththeinformationonlowvalueprocurementprovidedintheCommissioning&ProcurementHandbook.

11.2.3 WheretheprocurementroutewillnotfollowRegulation11.2.1,awaiverisrequiredassetoutinRegulation19.TheDirectorofC&PmayapprovealistofgeneralexemptionsforcircumstanceswhereitisnotfeasibleoradvantageoustoseekwrittenquotationsorWaivers.

11.3 Formal Tendering (£100,000 and above)

11.3.1 Forallcontractswithanestimatedvalueof£100,000andabove,formaltenderingproceduresshouldbefollowedusingtheCouncil’s’e-tenderingportalinaccordancewiththerequirementsofRegulations8&26andtheUKRegulations.NoprocurementcancommencewithoutpriorapprovaloftheRP2HowweBuy-procurementstrategyandnocontractscancommencewithoutpriorapprovaloftheawardofcontracts.ApprovalsareinaccordancewiththetablebelowandwhereapprovalissoughtfromaCabinetMemberthenitisinconsultationwiththeCabinetMemberforFinance&ResourcesorwheretheCabinetMemberistheCabinetMemberforFinance&ResourcesthenitisinconsultationwiththeLeaderoftheCouncil.

Approval Required

Chair of CCB Approval

Cabinet Member Approval

Cabinet Approval

RP2HowweBuy-ProcurementStrategy

Upto£5,000,000

CabinetMember(s)tobesightedonallreports

Over£5,000,000

RP3ContractAward

£100,000upto£500,000

Over£500,000upto£5,000,000

Over£5,000,000

11.3.2 UnlessasotherwisespecifiedintheseRegulations,theapprovalofstrategiesandawardsrelatingtoFrameworkAgreementsandtheestablishment/initialappointmentofproviderstoaDPSshallbesubjecttotherequirementsandproceduresapplicabletoContracts,byreferencetotheestimatedvalueofcontractstobecalledoffoverthelifeoftheFrameworkorDPS.

11.3.3 TheperiodicappointmentofnewproviderstoanapprovedDPSor(whererelevant)FrameworkshallbereportedtoCCBwithsuchfrequencyasshallbespecifiedinthereportseekingapprovalfortheawardofaFramework Agreementorestablishment/initialappointmentofproviderstoaDPS(‘Framework/DPSAwardreport’).

Section 3 – How we Buy - Approach and Principles (continued)


11.3.4 UnlessasotherwisestatedintheseRegulations,theapprovalofstrategiesandawardsinrelationtoCall-offContractsunderaFrameworkorDPSapprovedviaaFramework/DPSAwardReportshallbesubjecttotherequirementsandproceduresapplicabletoContracts,exceptasmaybeotherwisespecifiedandapprovedintherelevantFramework/DPSAwardReport.

12. Pre Tender Market Consultation

12.1 BeforesubmittingaprocurementstrategytoCCB,theofficerresponsiblefortheprocurementandinconsultationwiththerelevantCategoryManager,mayissueaPriorIndicativeNotice(PIN)orconductmarketconsultationswithaviewtoinformingtheeventualprocurementapproach,scopeofcontract,specificationetc.and/ortocommunicatetoprospectiveapplicantsandtendererstheCouncil’sprocurementplansandrequirementssuchasthenature,levelandstandardoftheprovision,contractpackaging,timescalesandotherrelevantmatters.

12.2 Forthispurpose,theofficerresponsiblemay,forexample,seekoracceptadvicefromindependentexperts,otherauthoritiesorfrommarketparticipants.

12.3 Suchadvicemaybeusedintheplanningandtheproposedprocurementprocedure,providedthatitdoesnothavetheeffectofdistortingcompetition(bygivingthosewhoparticipateinthepre-tendermarketconsultationanunfairadvantageoverothersinrelationtofutureprocurementopportunities)anddoesnotresultinaviolationoftheEURulesandtransparencyandfurthermore,isconductedinlinewiththeUKRegulations.

13. London Living Wage (LLW)

13.1 TheCouncilwillincludearequirementforallstafftobepaidnolessthantheLLW,asdefinedbytheLivingWageFoundation.ForthesepurposesthescopewillbedefinedasbytheLivingWageFoundation.For‘staff’meansallpersonsemployedbythecontractortoperformitsobligationsundertherelevantCouncilcontracttogetherwiththeProvider’sservants,agents,suppliersandsub-contractorsusedintheperformanceofitsobligationsunderthatContract.

14. The Public Services (Social Value) Act 2012

14.1 ThisActplacesarequirementoncommissionerstoconsidertheeconomic,environmentalandsocialbenefitsoftheirapproachestocommissioningandprocurementbeforetheprocessstarts.TheActrequiresauthoritiestomakethefollowingconsiderationsatthepre-procurement(commissioning)stage:

a) How,whatisproposedtobeprocured,mightimprovetheeconomic,socialandenvironmentalwell-beingofthe‘relevantarea’;

b) Howinconductingaprocurementprocess,theAuthoritymightactwithaviewtosecuringthatimprovementandwhethertoundertakeaconsultationonthesematters.

14.2 CommissionersshouldusethisAct,includinganyupdatestoitandtheCouncil’sSocialValuePolicytoconsideroutcomesandthetypesofservicestocommissionbeforestartingtheprocurementprocess.Whenconsideringhowaprocurementprocessmayimprovethesocial,economicorenvironmentalwell-beingofarelevantarea,theCouncilmustonlyconsidermattersthatarerelevanttowhatisproposedtobeprocured.TheCouncilmustonlyconsiderthosematterstotheextenttowhichitisproportionate,inallthecircumstances,totakethosemattersintoaccount.See: http://www.legislation.gov.uk/ukpga/2012/3/enacted

15. Nominated or Named Sub-contractors and Suppliers

15.1 InaccordancewithCroydon’scommitmenttodevelopingthelocalsupplybaseandproactivelyimplementingtheSocialValueAct,sub-contractingcanprovideausefultoolforengagingsmallbusinesses,voluntaryorganisationsandthecommunitysectorinthesupplyofgoods,suppliesandservices.

15.2 Officersshouldconsiderwhethertheinclusionofsub-contractingclausesisappropriatefortheircommissioningactivity.

15.3 WhereaDirectornominatesornamesasub-contractororsuppliertoamaincontractor,theymustensurethecompliancewithLLW,ModernDaySlavery,Council’sEqualityandDiversitypolicy,dataprotectionlegislationandanyothersuchpolicyorlegislationrelevanttothegoods,servicesorworksbeingcontractedforisincludedinthatsuppliersagreement.TheymustseekapprovalfromtheChairofCCBpriortoengagementwiththesub-contractororsupplier.



16. Collaboration

16.1 Inordertosecurevalueformoney,theCouncilmayenterintoaprocurementarrangementwithaCentralPurchasingBody(CPB)suchasCrownCommercialServices(CCS)oranothersuchbody.Theseagreementsshouldinclude(wherepossible)compliancewiththeCouncil’spolicyandprocedures,andmustbeapprovedinaccordancewithRegulation11.ThetermsandconditionsoftheCPBmustbefullycompliedwith,includinganyrequirementtoundertakecompetitionbetweenproviders,rolesandresponsibilitiesandliabilitiesmustbeclearlysetoutinallCall-offandcontractdocumentationwhenusingtheseagreements.

16.2 Inordertosecurevalueformoney,theCouncilmayenterintocollaborativeprocurementarrangementswithanotherlocalauthority,governmentdepartment,ClinicalCommissioningGroups(CCG)andhealthproviders,statutoryundertakerorothercontractingauthority.ThesearrangementsmustbeapprovedinaccordancewithRegulation11andmustensurethatrolesandresponsibilityandliabilityhasbeenclearlysetoutwithinthedocumentation.

17. Provision of Services and Works for Other Organisations

17.1 ThisRegulationapplieswhenevertheCouncilcarriesoutorprovidesanyservicesorworkorotheractiononbehalfofanotherLocalAuthority/consortiumofLocalAuthorities,GovernmentDepartment,StatutoryBodyorthirdsectororganisation(thirdparties).Thefollowingconditionsapply:

a.theOfficerresponsiblemustbesatisfiedthattheCouncil’sinterestswillnotbeprejudicedbyanysuchaction;and

b.theremustbesufficientbudgetfortheworkintheCouncil’sownestimates;and

c.thethirdpartymustsignanagreementwiththeCouncilthatclearlystatesliabilities,rolesandresponsibilities,andincludecontingencyarrangementsshouldthethirdpartynolongerexistduringthetermoftheprovision;and

d.thethirdpartymustauthoriseanyadditionalrequirements,variationsordeparturesandanyadditionalfundingrequiredbytheCouncilmustbeauthorisedinaccordancewiththeFinancialRegulations;and

e.thethirdpartymustfirstconfirmthatitacceptsfinancialresponsibilityfortheprovisionofservicesorwork.

17.2 ApprovalmustbesoughtfromtheCCBviaaRP2HowweBuyreportpriortoanynotablecommitmentofCouncilresourcesorbudget

18. Tendering with or through other Public Bodies

18.1 SubjecttotherequirementsofEURules,UKRegulationsandanyotherapplicablelegislation,regulation,policyand/orguidancedocument,theOfficerresponsiblecancallofftenderswithorthroughthefollowingorganisations,providedthattheycanobtainequivalentormoreadvantageoustermsthanbyinvitingcompetitivetenders:

a. AnotherLocalAuthority,consortiumoflocalauthorities,CommissioningPartnerships,aMutual;

b. GovernmentDepartment,PurchasingOrganisationwhichhasbeenapprovedbytheDirectorresponsibleforprocurement;

c. StatutoryBody;

d. UtilityUndertaking(publicorpreviouslypublic).

18.2 However,theOfficerresponsiblemustobtainthemostfavourabletermspossiblefortheCouncilandmustbeabletodemonstrateBestValueforMoneyunderSection3oftheLocalGovernmentAct1999.AnawardreportrecommendinganyawardmustbesubmittedinaccordancewithRegulation11.

19. Waivers and Emergencies

19.1 Wherethevalueisunder£100,000anywaiversmustbesignedbytherelevantDirectoroftheserviceareainconsultationwitheithertheStrategicProcurementorSourcingManagersoftheCentralBuyingTeam.

19.2 Overandabovethis,theDirectorofCommissioning&Procurement(exercisingdelegatednon-executivepowers)canwaiveanyrequirementscontainedwithintheseTendersandContractsRegulationsforspecificprojects,followingarecommendationfromtheCCB.Anysuchwaiversgrantedwithavalueover£100,000mustbereportedtoCabinetatitsnextmeeting.



19.3 ForDisastersandEmergencieswherethereisaclearneedtoprovideaserviceorproductimmediatelyintheinstanceofasuddenunforeseencrisisortheimmediateriskistohealth,life,propertyorenvironment,compliancewhentheseregulationsmaynotbefeasible.AnyDirectormayplaceanorderforsupplies,servicesorworksasthecircumstancesrequireafterseekingapprovalfromthechairofCCB,clearlystatingtheimmediateprocurementsrequired.Ifthatisnotfeasibleforexampleduetooutsideofnormalworkinghoursthenimmediatelyafterwhenreasonablyfeasible.AreportofcontractsawardedandanyfutureprocurementsrequiredwillrequireapprovalbytheChairofCCBandifapplicableCabinetatthenextavailablemeetingaftertheevent.

19.4 Foremergencyplacements(Placement)relatingtochildrenorvulnerableadults,whereitisnotpossibletoarrangethePlacementthroughanexistingCouncilContract,therelevantDirectormayauthoriseanorderforthePlacement.AssoonaspracticaltheDirectorshallreviewthePlacementtosatisfythemselvesthatitisandcontinuestobeappropriatetothecircumstancesandprovidesvalueformoney.

19.5 AmonthlyreportofallPlacementsandotheremergencyordersmadeunderthisRegulation19intherelevantmonthshallbepresentedtoCCB,CabinetMemberorCabinetasappropriate(byreferencetoregulation28inaccordancewiththevalueofawardandreportingprotocols).WheretheDirectormakingthePlacementoremergencyorderisnotanExecutiveDirectorsuchreportshallalsobeprovidedtotherelevantExecutiveDirector.

19.6 Allwaiversagainstanyoftheseregulations,includingthereasonsforthemandtheperiodforwhichthewaiverisvalidmustberecordedandapproved.Whereawaiveristobesought,theprocurementprocessmaynotbeginbeforeapprovalhasbeengranted.Thisrestrictioncannotbeavoidedbyseekingapprovalofawaiverwithretrospectiveeffect,unlessitisconfirmedthatitwasnotreasonablypracticabletoobtainitpriortoapproval.AllrequirementsoftheseRegulationsrelatingtotheapprovaltoawardstillremain.

20. Preparation of a Specification

20.1 TheOfficerresponsiblemustprepareaclearandunambiguousspecification.ItmustbeinkeepingwiththeCouncil’scommissioningprinciples(includingSocialValueoutcomes),theymustbeoutcome-basedandmustincludeanynecessaryoutputs,plans,sections,drawingsandbillsofquantities.ThisspecificationmustbeagreedbytherelevantCategoryManagerortheCentralBuyingTeamforvaluesbelow£100,000.

20.2 Sometimes,becauseofthetypeofwork,theOfficerresponsiblemaynotconsideritpracticalorpossibletoprepareadetailedspecificationofeveryitemofworknecessaryforthecontracttobecarriedout.Here,theOfficerresponsiblemayinclude,ingeneralwords,provisionforsuchworksinthespecification.ThisissubjecttotherequirementthatanysuchworkiscarriedoutunderthedirectsupervisionofandonthewrittenauthorityoftheOfficerresponsible.

20.3 Ifthespecificationisforacontractforworks,theOfficerresponsiblemustincludeprovisionwithinthebudgetforcontingencies.

21. Advertising and the Number of Tenders

21.1 OneoftheprinciplesofCroydon’scommissioningframeworkistoletcontractsviaanopenandtransparentcompetitiveprocess.

21.2 OfficersshallensurethatalltenderprocessesthataretobeadvertisedaredonesoinasufficientlyaccessiblemannerandwhereproposedContracts,irrespectiveoftheirtotalContractvalue,mightbeofinteresttopotentialsupplierslocatedinothermemberstatesoftheEU,asufficientlyaccessibleadvertisementispublished.Generally,thegreatertheinterestoftheContracttopotentialsuppliersthewiderthecoverageoftheadvertisementshouldbe.Advertisementsfortendersmustasaminimumbeplacedasfollows:

a. WherethevalueexceedsthecurrentEUthresholdsforgoods,serviceandworksContracts,tenderadvertisementrulesmustbefollowedinaccordancewiththecurrentEURulesandUKRegulations;

b. Forprocurementactivityofanyvalue,OfficersmustusetheCouncil’sowne-tenderingportalandwebsite(s).Theymayuseadditionaladvertisementsinnationalofficialjournals,specialisttradepapersorwebsites,ifrelevantandifaffordable.



21.3 Asaminimum,anyadvertisementmuststatetheplacewhereinterestedprovidersmayobtaintheprocurementdocumentsandthedeadlineforreceiptofsubmissions.Asappropriateandasanalternativetoadvertising;tenderersmaybeselectedeitherviaanacceptedframework(Croydon’sown,viaanestablishedCPOorauthorised3rdparty)orviaanapprovedlistsuchas‘Constructionline’.DetailsshouldbeprovidedintheRP2HowweBuyreport.

22. Standards and Evaluation Criteria

22.1 Wherethevalueis£100,000andabovetheDirectorforwhomtheprocurementisbeingundertakenmustascertaintherelevantEU,UK,Europeanorinternationalstandardswhichapplytothesubjectmatterofthecontract.TheOfficermustincludethosestandardswhicharenecessarytoproperlydescribetherequiredqualityandobligationsunderthecontract.AdvicefromtherelevantC&PHeadofServiceorCategoryManagermustbesought,asnecessary.

22.2 ThecompositionofandassessmentoftheSQandITTmustbecarriedoutinlinewiththeEURulesandUKRegulationswhichprovidesfortransparency,non-discrimination,equaltreatment,mutualrecognitionandproportionalityamongstthefreedomofmovementofgoods,freedomofestablishmentandfreedomtoprovideservices.

22.3 TheOfficerresponsiblefortheprocurementmustdefineevaluationcriteriathatareappropriatetothepurchaseanddesignedtosecureanoutcomethatmeetstheobjectivesoftheCouncil.ThismustbeincludedintheapprovedRP2HowweBuyReport.Theevaluationcriteriachosenmust,whererelevant,becompliantandinaccordancewiththeUKRegulations.ThismustbeeitherMEATforgoods,servicesandworks,orHighestPriceifpaymentistobereceivedforsaleordisposal.

22.4 WhenawardingonthebasisofMEAT,thespiltbetweencostandqualityistobe40%costand60%quality.WheretheOfficerresponsibledoesnotconsiderthissplitappropriate,thereasonsfortheuseofanalternativepercentagesplitmustbesubstantiatedandaWaiversoughttothisregulation.ThismustbeincludedintheRP2HowweBuyReport,whichisinaccordancewithRegulation8,forapprovalbytheCCB.Where,undertheMEATapproach,qualityisadoptedasacriterion,itmustbefurtherdefinedbyreferencetosub-criteria.Thereisnodefinitivelistofqualitycriteriathat

shouldbeappliedtoallprocurements,buttheymustbelinkedtothesubjectmatterofthecontractandproportionate.PleasereferencetheProcurement&ContractManagementHandbookforfurtheradvice.

22.5 The60%qualityevaluationassessmentmustincludeanallocationforaminimumof10%fortheSocialValuecriteria,anydeviationfromthismustbeinaccordancewithRegulation19.

22.6 TheDirectormustensurethat,whatevermethodoftenderingischosen,financialappraisalsofcontractorsarepartoftheselection/awardprocess.Directorsmustalsoensureabnormallylowtendersubmissionshavebeenfullyevaluatedtoensureitdoesprovidevalueformoney.AnyconcernsregardingtheevaluationespeciallywithconsiderationoftheModernDaySlaveryAct,shouldbereportedtotheChairofCCB.

22.7 Officersmustindicateinthecontractnoticewhetherornottheyauthorisevariants.Variantsshallnotbeauthorisedwithoutthisindication.

22.8 Officermuststateinthetenderdocumentstheminimumrequirementstobemetbythevariantsandanyspecificrequirementsthatneedtobemet.Onlyvariantsmeetingthoseminimumrequirementsshallbetakenintoconsideration

23. Standard Contract Clauses

23.1 AllContractsvaluedinexcessof£100,000mustbeinwritingandsignedbyanAuthorisedSignatoryonbehalftheCouncil,orsealedwiththeCouncil’sSealinthepresenceofanAuthorisedSignatory.

23.2 TheOfficerresponsiblemustincludethefollowingstandardclausesineverywrittenContract.AnyproposedchangestothestandardclausesaresubjecttolegaladviceandapprovalbytheDirectorofCommissiong&Procurement,ifnotincludedinaRP2HowweBuyReport.

23.3 AllContractsmustinclude:

a. Defaultprocedures.Thesemayincludechargesfordefaults.

b. AclauseenablingtheCounciltoclaimactualorliquidateddamagesoranappropriatecombination,dependinguponthenatureofthecontract.Wherealiquidateddamagesclauseisused,theremustalsobeincludedaclauseforanextensionofthetimeforcompletion.Appropriateadvicemustbesoughtonthetypeofdamagesclausesuitableforeachproposedcontract.



c. Agenuinepre-estimateofliquidateddamagesmustbequotedinthecontracttobevalid.Liquidateddamagesclausesgenerallyyieldlimitedsumsindamagesand,therefore,therisksofadoptingaliquidateddamagesclauseshouldbeassessedineachcase.

d. AclauserequiringtheContractortomaintainandtestabusinesscontinuityplanatleastannuallyandtokeeptheCouncilinformedofhowthatplanwouldbedeployedtoprotecttheCouncil’sinterests,intheeventofanyinterruptioninthedeliveryofgoods,servicesorworks.

e. AclausesettingoutthearrangementsbywhichthecontractwillbemanagedandmonitoredbytheCouncil,includingarrangementsforregularliaisonbetweentheparties,incompliancewiththeCouncil’sstandardrequirementsforcontractmanagementandmonitoring.

f. Anextensionofthe‘timeforcompletion’clausetoprotecttheCouncilandallowforliquidateddamagestobeclaimedintheeventthattheCouncilisresponsibletoanyextentforadelay.

g. AclausepermittingtheterminationoftheContractinwholeorinpart,andwithoutpenalty,wheretheCouncilelectstodoso.

h. AclausethatentitlestheCounciltoterminateaContractwithoutpenaltywhereithasbeensubjecttoasubstantialmodificationbytheproviderwithoutpriorconsultationandagreement.

i. AprovisionrequiringtheCounciltopayundisputedinvoices,within30daysofreceiptofavalidinvoice(subjecttoanycontractualorstatutoryobligationtopayearlier).

j. ProvisionthatanysignificantdeviationfromthetenderproposalshallconstituteadefaultinthesamemannerasadeviationfromtheSpecificationandmayconstitutegroundsuponwhichtoterminatethecontract.

k. SuitableclausestoenabletheCounciltocancelthecontractandrecoveranylossduetothecancellationofthecontractiftheContractororanypersonemployedbytheContractororactingontheContractor’sbehalfshallhavecommittedanyoffenceundertheBriberyAct2010orshallhavegivenanyfeeorrewardthereceiptofwhichisanoffenceunderSection117(2)oftheLocalGovernmentAct1972orshallhavegiven

anyfeeorrewardtoanymemberorofficeroftheCouncilwhichshallhavebeenexactedoracceptedbysuchofficerbyvirtueofofficeoremploymentandisotherwisethansuchofficer’sproperremuneration.

l. AclausethatstatestheCouncilwillrequireallstaffengagedbytheContractorinthedeliveryofservicesorworksundertheContractbepaidtheLLW.

m.WhereappropriateaclausethatstatestheContractormustcomplywiththeModernDaySlaverypolicy.

n. WhereappropriateaclausethatstatestheContractorwillensuretheymaintaintheircompliancewithCouncilpoliciesthatarerelevanttotheservicesthattheCouncilareprocuring.

o. Wherepersonaldataisbeingusedwithinthedeliveryoftheservices,theappropriatedataprotectionprovisionismadeincludingthattheContractormustindemnifytheCouncilagainstanyrelevantliabilitiesapplicabletotheContractorsresponsibilities.

p. Whereappropriate,relevantsafeguardingprovisionsmustbeincluded.

23.4 StandardcontractclausesforsecuringsocialvaluearesetoutintheSocialValueFramework.TheOfficerresponsibleshouldrefertothisframeworktoensuretheappropriateclausesareused.EveryContractawardedbytheCouncilmusthaveacommitmentonsocialvalue.

23.5 TheOfficerresponsiblemustconsidertheobligationtorequiretendererstoprovideaPerformanceBondand/orParentCompanyGuaranteewhereacontractorisasubsidiaryofaparentcompany,asaContractrequirementinthefollowingcircumstances:

(i) theawardisbasedonevaluationoftheparentcompany;

(ii) thefinancialstatusofthecontractor(havingregard,interalia,totheproposedcontract)warrantsthesame;andor

(iii)theS151Officerrecommends;

(iv)whereitisproposedtomakestageorotherpaymentsinadvanceofreceivingthewholeofthesubjectmatteroftheContract.



23.6 ThedecisiontorequireaPerformanceBondand/orParentCompanyGuaranteeasaContractrequirementshouldbedetailedintheRP2HowweBuyreport.

23.7 IfduringthetenderingexerciseitbecomesarequirementforatenderertoprovideaPerformanceBondand/orParentCompanyGuaranteeasaContractrequirement-perhapstosupportafinancialstandingissue,thenthisrequirement,ifdifferentfromthatstatedintheprocurementshouldbereportedintheeventualawardreport.

23.8 Ifrequired,adviceshouldbesoughtfromtherelevantFinanceHeadofServiceandincludedaspartoftheRP2HowweBuyreportorContractAwardreportforapprovalbytheChairofCCB.

23.9 Inallcaseswhererelevant,theOfficerresponsible,mustdiscusstheneedfortheprovisionofaPensionBondwiththeHeadofServiceresponsibleforPensionsandTreasury.

23.10 EveryContractmusthaveaclauserequiringthecontractortoobtainadequatepublicliabilityandemployer’sliabilityinsuranceandanyotherinsuranceasmayberequiredbythecontract.Thecontractormustprovidereasonableproofofthisbeforeworkiscommencedandthroughoutthelifeofthecontractuponrenewalofinsurance.

23.11 ThelevelsofcoveraretobeasstatedintheCouncil’sinsuranceguidancedocument.AnyproposedreductioninrequiredcovermustbeinconsultationwiththeCouncil’sInsurance,RiskandCorporateProgrammeOffice.

23.12 AllContractsmustincludethefollowing:

a. wordinginwhichthecontractoragreestoindemnifytheCouncilforallclaimsproceedings,actionsandothermattersrelatingtothecontract,exceptwheretheCouncilisfoundtobelegallyliable;

and

b. aclauseinwhichthecontractoragreestocertainservicelevelswhiledealingwithclaims,etc;

and

c. aclauserequiringthefullrangeofrelevantinsurancestobeprovidedbythecontractor,adviceonthismustbetakenfromtheRiskandInsuranceOfficer;

and

d. theneedforanyself-employedpersonorconsultanttohavetheirowninsurance,particularlywhereservicesareprovidedbyemploymentagencies.

23.13 EveryContractmusthaveaclauserequiringallpartiestocomplywiththeprovisionsoftheDataProtectionAct2018(‘DPA’).

23.14 EverycontractmustensurethatthecontractoracknowledgesthattheContractandtheinformationassociatedwithitissubjecttotheFreedomofInformationAct2000(‘FoIA’).

23.15 EveryContractmustnamethesupervisingperson/s.

23.16 EveryContractmusthaveaclauserequiringthecontractortoobservestatutoryrequirementsastothemannerinwhichworkistobecarriedout.

23.17 EveryContractmustincorporatethespecificationandanydrawingsandbillsofquantitiesasrequired/relevant.

23.18 EveryContractmustcontainaprovisionenablingtheCounciltodealwithcaseswherethecontractor,withoutgoodreason,eitherwhollyorpartlyfailstocompletedeliveryofthesupplies,servicesorworks,thesubjectoftheContract,tothecontractstandardoratall.TheprovisionmustenabletheCouncil,ifsodesired,to:

a. engageanalternativeprovider,andinsituationsofurgency,withoutnoticetotheoriginalcontractor;

b. arrangeforthedeliveryofnecessarysuppliesormaterialsfromanalternativesource;

c. changequalityorquantityofsupplies,servicesorworksrequired;

d. rechargetotheoriginalcontractorthecostsofre-procurementand/orassociatedadministrativeandlegalcosts,andanycostsincurredinexcessoftheoriginaltenderedpriceofthecontractortocompletethedeliveryofthesupplythesubjectofthecontract,includingthecostsofanychangesrequiredtothatsupply,resultingfromthecontractor’sdefault.

23.19 Whereappropriate,astandardformofcontractissuedbytheregulatorybody,tradeindustryorprofessionmaybeusedinconjunctionwiththeseRegulations.



24. Form of Contract for all Awards

24.1 EveryContractmustbeinwritingandinaformapprovedbytheCouncilSolicitorandMonitoringOfficer.

24.2 TheCouncilSolicitorandMonitoringOfficer,theHeadsofLegalServicesorotherpersonauthorisedbytheCouncilSolicitorandMonitoringOfficer(‘AuthorisedSignatory’)mustsigneverywrittencontractvaluedat£100,000andaboveinaccordancewiththeCouncil’sConstitutionandisresponsibleforsettlingthedetailedtermsthereof.However,therelevantDirectormaysignandsettlethetermsofContractsvaluedat£100,000andaboveifspecificallyauthorisedinwritingtodosobytheCouncilSolicitorandMonitoringOfficer.

24.3 Whereastandardformofcontractisissuedbytheregulatorybody,tradeindustryorprofession,theOfficerresponsiblemayusethisinconjunctionwiththeseRegulations.TheOfficerresponsiblemustensurethattheContractisapprovedandexecutedbytheDirectorresponsibleforLegalServices.

25. Invitations to Tender and Quotations/Tendering Instructions

25.1 TheOfficerresponsiblemustissueInvitationstoTenderandtenderinginstructionstoeverysupplier:

a. invitedtotenderfollowingashort-listingprocess;

or

b. whoislistedontherelevantFramework,FrameworklotorDPSandwhoiscapableandwillingtotender;

or

c. whorequeststhesupplyoftenderdocumentsunderopentendering.

25.2 AllInvitationstotendermustspecifythegoods,serviceorworksthatarerequired,togetherwiththetermsandconditionsofcontractthatwillapply.

25.3 Allsuppliersinvitedtotendermustbeissuedwiththesameinformationatthesametimeandsubjecttothesameconditions.Anysupplementaryinformationmustbegivenonthesamebasis.

25.4 AllInvitationstotendershallincludethefollowing:

a. AspecificationthatfullydescribestheCouncil’srequirements;

b. Arequirementfortendererstodeclarethatthetendercontent,priceoranyotherfigureorparticularsconcerningthetenderhavenotbeendisclosedbythetenderertoanyotherparty(exceptwheresuchadisclosureismadeinconfidenceforanecessarypurpose);

c. Arequirementfortendererstocompletefullyandsignalltenderdocumentsincludingaformoftenderandcertificatesrelatingtocanvassingandnon-collusion;

d. NotificationthattendersaresubmittedtotheCouncilonthebasisthattheyarepreparedatthetenderer’sexpense;

e. Adescription(detailedasappropriate)oftheawardprocedureandevaluationmethodology.

25.5 TheOfficerresponsiblemustadviseeverysuppliersubmittingatenderthat:

a. noextensionoftimewillbeallowedforthereceiptofanytender,unlessatthediscretionoftheCouncil;

b. tendersreceivedafterthedateandtimespecifiedforreceiptmayberejected;

c. anydeparturefromtheTenderingInstructionsmayleadtothetenderbeingrejected;

d. theCouncildoesnotbindthemselvestoacceptthelowestoranytenderortoacceptanytenderinfull;

e. assoonastheCouncilhasadvisedthat(subjecttocontract)thetenderhasbeenaccepted,thentheagreementbecomeslegallybinding;

f. thetenderdocumentstobeinelectronicformat;

g. thetendererssignedformoftendercannotbedifferentindetailtothatprovidedaspartofthee-sourcingprocess.

25.6 Standardcontractclausesmustbestated(Regulation22).Everysupplierwhosubmitsatendermustbewillingtoenterintoacontractcontainingtheseclauses.

25.7 TheOfficerresponsiblemustalsospecifytheperiodforwhichthetenderwillbekeptopenforacceptance.Thenormalminimumprovisionwillbe90days.

25.8 TendersmustbesubmittedelectronicallyviatheCouncil’se-tenderingportalorbysuchotherformofsubmissionprovideditwasapprovedandawaivertothisregulationsoughtintherelevantRP2HowweBuyreport.



25.9 Everytendermustspecify:

i. theamountofthetenderandanydiscountsordeductionsallowableandthetermsforanysuchallowance;and

ii. thetimeortimeswithinwhichthecontractistobeperformedorcompleted.

25.10 TheOfficerresponsiblemustcheckthateverytendersumhasbeencalculatedbyreferencetotheminimumspecificationrequiredandstipulatedinthetender.Iftheydiscoveranydeparturefromthespecification,theycantreatitasgroundsfordisregardingthetender.

25.11 Whenatendererproposesavariantbid,theymusthavedemonstrated,bywayofacompliantbid,thattheCouncil’sminimumstandardhasbeenmetbeforeavariantbidcanbeconsidered.

25.12 TheOfficerresponsiblemustcheckthateverytendersumisstatednetofValueAddedTaxoranyotherTaxorDuty.

26. Submission, Receipt and Opening of Tenders/Quotations

26.1 EverytendermustbereceivedbyasecuremethodusingtheCouncil’se-tenderingportaloranapprovede-sourcingsystem.

26.2 Suppliersorproviderswhohaveexpressedinterestinatendermustbegivenanadequateperiodinwhichtoprepareandsubmitapropertender,consistentwiththecomplexityofthecontractrequirement.PCR2015orCCR2016includesspecifictenderingtimeperiods.

26.3 Officersmustnotifyallsuppliersofthecorrecttenderreturninstructions,includingthedate,timeandplace(detailsofthee-sourcingsystem).

26.4 Inexceptionalcircumstances,thedeadlineforreceiptoftendersmaybeextended,butonlywiththeagreementoftherelevantC&PHeadofServiceandtheC&PHeadofServiceCorporateandonlyifsuchextensionoftimewillnotdisadvantageatenderer.Noextensiontothedeadlinecanbegivenoncetheoriginaldeadlinehaspassedandthesealhasbeenbrokenonthee-tenderingportal.

26.5 TherelevantC&PHeadofServicemustarrangeforalltendersforanyoneContracttobeopenedatthesametime.AlltendersreceivedviatheCouncil’se-tenderingportalshouldbeopenedbythoselistedbelowprovidingtheyarenotinvolvedinthetenderexercise:

• CategoryManagerfromoutsideoftheservicearealeadingthetenderexercise;

• theStrategicProcurementManageroftheCentralBuyingTeam;

• theProcurementGovernanceManager.

26.6 Inexceptionalcircumstances,theDirectorofC&PfollowingadvicefromtheC&PHeadofServiceCorporateandtheC&PHeadofServicefortheserviceareamayapprovethedelegationoftheopeningoftendersreceivedviatheCouncil’se-tenderingportaltotheSourcingManageroftheCentralBuyingTeamoraSeniorCategoryOfficerfromoutsidetheservicearealeadingthetenderexercise.

26.7 AnytenderthatdoesnotcomplywiththeCouncil’srequirementassetoutinthetenderinvitatione.g.arriveslate,shouldnormallybeexcludedfromconsideration,withthecircumstancesrecordedontheCouncile-tenderingportal.Officersmay,however,seektheagreementoftheChairofCCBtoamendtheserequirementsinappropriatecircumstances.Anysuchrelaxationshallbeidentifiedwhenseekinganynecessaryauthoritiesrequiredbeforetheacceptanceofatender.

26.8 TheC&PHeadofServiceCorporatemustensure,forauditandinformationpurposesthatforalltendersreceivedviatheCouncil’se-tenderingportal:

a) AnelectronicrecordisretainedofthedateandtimeofopeningandthenameoftheOfficerinvolved.;and

b) Anelectronicrecordofalltendersreceivedisretained

27. Post SQ and Tender Clarifications

27.1 TheDirectormustmaintainadetailedwrittenrecordandclearaudittrailofallpostSQandtenderclarificationsdetailingallcontactwiththetenderer.AllsuchcommunicationsmustberecordedviatheCouncil’se-tenderingportal.



27.2 TheDirectormustreporttotheCCBorthenominatedCabinetMemberorCabinetasappropriate(basedonContractvalue)anyamendmentstotenderpricesarisingfromposttenderclarificationandthereasonsforthem.

27.3 Directorsmayamendtenderpricesunderposttenderclarification,providingitdoesnotdisadvantageanyothertendererandinaccordancewithPCR2015andCCR2016,inthefollowingcircumstancesonly:

a. if,betweenthesubmissionoftendersandtheContractbeingawarded,atendererseekstoreducethepricewithoutchangingtheoriginalspecification,thentheDirectormustconsultwiththeChairforCCBtodetermineiftherearereasonsforacceptingthenewpriceand,ifappropriate,offerthesameopportunitytoalltheothertenderers.Opportunitiestoothertendererstorevisetheirbidpriceswouldnotnormallybegiventothosepreviouslyeliminatedforreasonsotherthancostorwhereatendererrectifiesamathematicalerror;

or

b. ifthereareerrorsintotals;

or

c. ifthetenderpriceissolow,theDirectorbelievesthatthetenderermayhavemadeanerrorandthatacceptancemightleadtodifficultiesofperformance;

or

d. wherethelowesttendereragreestoreducetheirprice(withoutvaryingthespecification)afternegotiationbecause:

i) theoriginaltenderwasunacceptablyhigh;

or

ii) theschedulecoversarangeofrequirementsand,althoughlowestoverall,negotiationsmightallowfurthersavingstotheCouncil.

e. where,foraparticularrequirement:

i) thelowesttenderexceedstheDepartment’sallocation;

or

ii) whereitoffersanalternativespecificationandnegotiationwouldpermitanassessmentofthescopeforsavings.

f. IfthereisaProfessionalorlocalCodeofPractice,thatmayrestrictpricenegotiationandmustbetakenintoconsideration.

27.4 IftheDirectoramendstheoriginalspecificationortheacceptablealternativediffersfromtheoriginalspecification,thentheymustgivesimilaropportunitiestoallothertenderersthatsubmittedatender.

27.5 Thetenderermustsubsequentlyconfirm,inwriting,anyalterationstoatenderbeforetheDirectormayconsiderallthetendersreceived.

27.6 AllposttendernegotiationmustbeavailableforauditandrecordedviatheCouncil’se-tenderingportal.



28. Contract Award

28.1 AContractwithavalueof£100,000andabove,maynotbeawardedbeforetherelevantDirectorhassubmittedaRP3ContractAwardreportonthetendersreceivedfortherelevantcontractandtheappropriateacceptanceinaccordancewithRegulation28.4a-d.

28.2 TheOfficerresponsiblemustprovideareportonfinancialreferencesinthereportseekingacceptanceofatender.

28.3 Wherethefinancialappraisalofacontractorgivesan‘extremecaution’rating,thecontractormustnotbeusedunlesstheDirectororOfficerreportsonandseeksapprovalfromtheCouncil’sSection151Officer:

a. anymitigatingcircumstances;

and/or

b. whytheywishtoappointthatcontractor.

28.4 PriortothesubmissiontoCCBortotheChairofCCB,everyreportseekingacceptanceofatenderforaContractmustbereviewedfirstbytheLeadCategoryManagerpriortodepartmentalreviewby;theleadDirector,theHeadofCorporateLaw,theHeadofFinance,HumanResourcesandtheC&PHeadofServicerelevanttothereport.ThereportmustbepreparedinaccordancewiththerelevantProtocols(assetoutinPart5oftheCouncil’sConstitution)andspecifyinformationregardingthetenderingcircumstancesandthetermsofaContractawardsufficienttoenableaninformeddecisiontobemade.Itmustalsocontainanyappropriatecommentsand/orrecommendationsrelatingtobudgetaryprovision,thecompetitiveprocessundertaken,theseRegulations,theFinancialRegulations,EURules,relevantlegislationandtheCouncil’spolicies.

a. forContractsvaluedbetween£100,000and£500,000,iftherehavebeennodeparturesfromtheapprovedprocurementstrategyandthereisavailablebudgetthenareport,thathasbeensigned-offinaccordancewiththestandardawardreporttemplateseekingContractawardcanbemadedirectlytotheChairofCCB,underdelegatedpowers,withoutfirstseekingrecommendationfromtheCCB;

b. forContractsvaluedbetween£100,000and£500,000wheretherehavebeendeparturesfromtheapprovedprocurementroute(withtheexceptionoftimetable),evaluationapproachoradditionalriskswereidentified,thenareportisrequiredseekingrecommendationfromtheCCBforContractawardbytheChairofCCB,underdelegatedpowers;

c. forContractsvaluedover£500,000areportisrequiredtotheCCBseekingrecommendationforContractawardbytheCabinetMemberforvaluesupto£5,000,000andCabinetforvaluesover£5,000,000.

d. forproposedContractextensionperiodsincludedaspartoftheoriginalContractaward,areporttotheCCBseekingrecommendationforContractextensionbytheChairofCCB,underdelegatedpowers.

28.5 TheCabinet,nominatedCabinetMember,andtheCCBarethebodiesresponsibleforreviewingContractmattersfortheCouncil.

28.6 SubjecttotheContractvalues,recommendationsonexecutivematterswillbeconsideredbythenominatedCabinetMemberinconsultationwiththeCabinetMemberforFinanceandResources,orwherethenominatedCabinetMemberistheCabinetMemberforFinanceandResources,inconsultationwiththeLeader.

28.7 AlistofContractstoberecommendedunderRegulation28.4cwillbereportedtotheCabinetmeetingimmediatelyprecedingtheanticipateddateforconsiderationanddecisiontoaward.

28.8 InallinstancesintheseRegulationswhereanominatedCabinetMemberorCabinetischargedwithmakinganexecutivedecision,Part5.AoftheCouncil’sConstitution–ProtocolforDecisionMakingmustbeobserved.

28.9 Intheabsenceofthenamedofficers,deputiesmayactontheirbehalfinaccordancewiththedepartmentalschemeofdelegations.

Section 4 – Contract Award


29. Contract Pre-conditions and Preliminaries

29.1 ADirectormustnotauthoriseorpermitacontractortoenteronanylandorbuildingsbelongingtotheCouncilortoproceedwiththeContractorstartworkonsiteuntilawrittenordertoproceedwiththeContracthasbeenissuedandthefollowingactionsarecompleted:

a. thecontractorhasprovidedproofofinsurance;

b. thecontractorhascompletedandreturnedtotheCouncilthecontractdocumentsunlesstheDirectorcansatisfytheCouncilSolicitorandCouncilMonitoringOfficerandtheChairofCCBthattheCouncil’spositionisotherwiseadequatelysecured;

c. whereappropriatetheperformancebondisdulycompleted;

d. allprocedureshavebeencompletedtothesatisfactionoftheCouncilSolicitorandMonitoringOfficer.

29.2 OncetheactionsinRegulation29.1arecompletedthenapurchaseordermustberaisedontheCouncil’sfinancialsystem,priortoanygoodsorservicesbeingprovided.Raisingpurchaseorders,andanypermittedexceptions,mustbeconductedinaccordancewiththeCouncil’sP2PGuidancedocumentation.

30. Extras and Variations

30.1 Anyextra,variation(includingextensionoftime)oracontractchangecontrolnoticetoaContractmustbespecificallyauthorisedinwritingbytheDirectororadesignatedOfficer,whomustretainacopyofthisauthorisationasadocumentrelatingtotheContract.Iftheextra,variationorchangecontrolnoticeislikelytoresultinanincreaseintheContractsum,thentheOfficermustobtainauthorityfortheadditionalexpenditureinaccordancewiththeFinancialRegulations.Theoverallcostsmustbecontainedwithinagreedbudgets.

30.2 WherethecontractsupervisorsarenotCouncilOfficers,theContractwiththesupervisorsmustprovidethatnotangiblechangebemadetothespecificationwithoutthepriorwrittenconsentoftheCouncil.

30.3 AreportseekingauthorityforthechangetotheContractmustbemadetotheCCB,nominatedCabinetMemberorCabinetasappropriate,wheretheextratermsorvariationwillresultinthenewtotalvalueofthecontract:

i. Exceeding£100,000(CCB)or£500,000(NominatedCabinetMember)or£5,000,000(Cabinet);

ii. Exceedingtherelevantpublicprocurementthreshold(forgoods,servicesorworks),aspublishedfromtimetotimebytheEuropeanCommission.

orinanycase,wherethevalueoftheextra/variation(aggregatedwithpreviousextras/variationsifany)resultsintheoriginalContractawardvaluebeingincreasedbymorethan25%or£1,000,000(whicheveristhelower).

30.4 AKeyDecisionNoticeisrequiredandtimescalesadheredtowhenthevalueoftheextra/variationeithertotalsorincreasesthenewcontractvalueto£1,000,000ormoreandwasnotsubjecttoapreviousKeyDecisionNotice.

30.5 EachDepartmentmusthavecontrolproceduresandaudittrailsinplacetodealwithextras,variationsandChangeControlNotices.

Section 4 – Contract Award (continued)


31. Tender Records

31.1 TheC&PHeadofServicemustensurethatthefollowinginformationinrelationtoaContractiskept:

a. Pre-tenderresearch,benchmarkingandconsultationinformation;

b. TheapprovedRP2HowweBuyreportincludinganywaivergiven;

c. Theselectionandawardcriteria(asappropriate);

d. Pre-qualificationdocumentssenttoandreceivedfromapplicants(ifapplicable);

e. Tenderandwrittenquotationdocumentssenttoandreceivedfromtenderers;

f.Communicationswithallapplicantsandtenderersthroughouttheprocurementexercise;

g. Anypost-tenderclarificationinformation,toincludeminutesofmeetings;

h.Thecontractdocuments.

31.2 WheretheCouncilhasuseditsowne-sourcingsystem,allelectronicrecordspertainingtothetenderandthetenderingprocessmustberetainedonthesystem,includinganelectroniccopyofthesignedcontract.

32. Contract Register

32.1 CategoryManagersmustensurethatallcontractsletareenteredontotheCouncil’sContractRegisterinaccordancewiththeLocalGovernmentTransparencyCode.ThisactioncanbecompletedviatheCouncil’se-tenderingportal.Whereanothere-tenderingportalhasbeenusedthedetailsmustbesubmittedtowww.gov.uk/contracts-finder.Copiesofallsigned/sealedcontractsmustbeuploadedintotheContractManagementsystemontheCouncil’se-tenderingportal.

32.2 Whencontractshavebeenvaried,extended,novated,assigned,terminated,sub-contractorsauthorisedorchangedinanyway,CategoryManagersandContractManagersmustupdatetheCouncil’sContractsRegisterwiththenewdetailsandifrequiredwww.gov.uk/contracts-finder,andcopiesofallsigned/sealeddocumentationsmustbeuploadedintotheCouncilsContractManagementsystemontheCouncil’se-tenderingportaltoaccompanytheoriginalelectroniccopyContract.

32.3 CategoryManagersandContractManagersmustensurethetimelycompletionandsubmissionofanyContractorcompileddocumentationintotheCouncil’sContractManagementsystemontheCouncil’se-tenderingportal(e.g.annualInsuranceCertificates)thatarerequiredbytheContract.

33. Contract Storage

33.1 TheDirectorresponsiblefortheserviceareamustensurethatallsigned/sealedContractsestablishedinaccordancewiththeseRegulationsarescannedandthescannedcopyoratrueelectroniccopy(withsignature/sealedpagesscannedaccompanyingit)isstoredontheCouncil’sContractManagementsystemandthattheoriginalcopyofthecontracthasbeenreceivedbytheDeedsteaminCroydonLegalServices.

Section 5 – Contract Mobilisation


34. Managing Contracts

34.1 AllDirectorsaretonameaContractsManagerorapersonresponsibleforthemanagementofthecontractforallnewcontractswhicharecoveredbytheseRegulations.AllcontractsmusthaveanamedCouncilcontractowner(normallytheDirectoroftheservicearea)andContractManagerfortheentiretyofthecontractterminaccordancewiththeCouncil’sagreedcontractmanagementmodel.

34.2 ContractmanagersmustfollowtheproceduresandreportingrequirementssetoutintheCouncil’sProcurement&ContractManagementHandbook.

34.3 ContractManagerswillberesponsibleforthedaytodaymanagementandreportingoftheircontracts.ThisshallincludemonitoringandreportingusingtheCouncil’sContractManagementToolKit.Forcontractswithavalueofover£1,000,000perannum,monitoringofperformancewillincludethetimelyreturnoftheBalancedScorecardtowww.Contracthub.comandfullcompletionofScorecardsandActionPlans.

34.4 ContractPerformancewillbemeasuredagainstthefollowingminimumcriteriabutmaybesubjecttochange:

i) Performance;

ii) Compliancewithspecificationandcontractterms;

iii)Financeandcosts;

iv)Riskmanagement,

v) SocialValue;

vi)Residentsatisfaction;

vii)GDPR;

viii)HealthandSafety;

ix)ModernSlaveryPrevention;and

x) EqualitiesandFairness.

34.5 Forallcontracts,itistheresponsibilityoftheContractManagertoraiseanyincidentsofpoorperformanceimmediatelywiththeContractorandseekrectificationthroughthedevelopmentofanActionPlan.ThisActionPlanmustbeupdatedtorecordprogressuntilperformanceimprovestoa

satisfactorylevel.AtwhichtimetheActionPlanmaybeclosed.Ininstancesofparticularlypoorperformance,orpersistentpoorperformance,theContractManagershouldconsidertheappropriatecourseofactiontotakeunderthecontract,takingadviceasappropriate.

35. Risk Assessment & Contingency Planning

35.1 Provisionforresourcesforthemanagementofthecontract,foritsentirety,mustbeidentifiedinthebusinesscaseandRP2HowweBuyreport.CCBshouldbekeptuptodateasrequiredviatheCouncil’sCCBprocess.

35.2 Forallcontractswithavalueof£100,000andgreater,thecontractmanagermust:

a. Maintainariskregisterduringthecontractperiod

b. Undertakeappropriateriskassessmentsandforidentifiedrisks

c. Ensurecontingencymeasuresandbusinesscontinuityplansareinplaceandareregularlyreviewedaspartofcontractmanagement.

36. Contract Monitoring, Evaluation & Review

36.1 Allcontractsvaluedat£100,000andgreateraretobesubjecttoregularformalreviewswiththecontractor.Aninitialreviewmustbedoneatthefirst3monthsofacontractstartdateandon-goingreviewswillthenbeconductedonaregularschedule.TheinitialreviewcanbedonesoonerduetothelengthofcontractandshouldbeagreedwithCCB.

36.2 AformalreviewprocessmustbeappliedtoallcontractsdeemedtobeHighRisk,HighValue,orHighProfile.ThisprocessmustbeappliedatkeystagesofmajorprocurementsandmustcomplywiththeCouncil’sProcurement&ContractManagementHandbook.

36.3 Duringthelifeofthecontract,theContractManagermustmonitoracontractinaccordancewiththeCouncil’sProcurement&ContractManagementHandbook.

36.4 DuringthelifeofFrameworkAgreementsandDPS,theContractManagerwillupdateCCBonperformanceandawardsofcontractsasagreedbyCCBinthereportinaccordancewithRegulation28.

Section 6 – Contract Management


Terms Description/MeaningAmount of an estimate

Thesumofmoneyestimated,netofValueAddedTaxbutinclusiveofanyothertaxorduty.However,theamountofanysuchtaxordutypayablemustbestated.

Award Report Aprocurementawardreportintherelevantformat(dependantontheContractvalue)whichisprovidedtotheCCBpriortotheawardofanyContract,extensionforthepurposesofprovidingthenecessaryapproval(subjecttotheContractvalue).

Category Manager TheCouncilofficerresponsibleforaparticularcategoryofspendandwholeadsoncommissioningandprocurementactivityorDPS.

Call-off Contracts ContractsselectedandawardedfromanexistingFrameworkAgreementorDPS.

Chair of CCB TheDirectorofCommissioning&Procurement.

CCB Contracts&CommissioningBoard-theboardofCouncilofficersdesignatedtomanageandactasthedecisionmakerorrecommendingbodywithinthescopeoftheseRegulations,forCouncil-widecommissioningandcontractingactivities(excludinglanddisposalsandpropertytransactionmatters).

CCS CrownCommercialServices.

CCR 2016 TheConcessionContractsRegulations2016andanysupersedeorreplacementlegislation.

‘CDM’ Construction(DesignandManagement)Regulations2015.

C&P Commissioning&ProcurementDivisionwithinResourcesDepartmentresponsiblefortheCouncil’sTendersandContractsRegulations.

Central Buying Team

TheCouncil’scentralBuyingTeamwithinCommissioning&ProcurementDivisionresponsibleforallgoods&servicesprocurementbelow£100,000.

Central Purchasing Body

AContractingAuthoritywhichprovidescentralisedpurchasingactivitiesandwhichmayalsoprovideancillarypurchasingactivities—(a) acquiressuppliesorservicesintendedforoneormorecontracting

authorities;(b)awardspubliccontractsintendedforoneormorecontracting

authorities;or(c) concludesframeworkagreementsforwork,supplies,orservices

intendedforoneormorecontractingauthorities;(for the avoidance of doubt, this is the same definition as provided in the PCR 2015).

Terms Description/MeaningConcession Contract

ConcessionsaredefinedinthepublicsectorprocurementDirective2004/17/EC(“theDirective”)ascontractswheretheconsiderationforthesupplies,worksorservicestobecarriedoutconsistseithersolelyintherighttoexploitthesupply,workorservice,orinthisrighttoexploittogetherwithpayment.

Constructionline Websitethathaspre-qualifiedsupplierswhoprovidegoods,servicesandworksforConstructionrelatedprojects.

Contract Acontractfortheprovision(eithertoorbytheCouncil)ofgoods,servicesorworkshowevertheymaybefunded,butexcludingthosetypesofcontractsormattersreferredtoatRegulation3.3.

Contracting Authorities

TheState,regionalorlocalauthorities,bodiesgovernedbypubliclaworassociationsformedbyoneormoresuchauthoritiesoroneormoresuchbodiesgovernedbypubliclaw,andincludescentralgovernmentauthorities,butdoesnotincludeHerMajestyinherprivatecapacity.

Contracts Finder Aweb-basedportalprovidedforthepurposesofPCR2015Part4byoronbehalfoftheCabinetOffice.

Contract Management System

TheprocessofautomatingContractLifecycleManagement(previously“ContractManagement”),itincorporatesthekeyelementsofthebuyingprocess,suchascommissioningknowledge,specification,requestsforquotation/tenders/e-auctions,evaluation/negotiation,contractformulationandmanagementandiscontainedontheCouncil’sTenderPortal,ContractRegisterandContractManagementsystem.

Contract Manager TheCouncilofficerorexternalpersonappointedtomanageand/ormonitorthetender/contractprocessonbehalfoftheCouncil.

Glossary Of Terms – Appendix A



Terms Description/MeaningContract Value or Value of a Contract

Avalue:(a) calculatedonthebasisofthefulltermoftheContract.i.e.ifitisa

threeyearcontractwithapossibilityofatwoyearextensionthenthecalculationofthecontractvaluemustbebasedonafiveyearterm;and

(b) notvalueaddedtaxbutinclusiveofanyothertaxorduty.WhereaContractismixed,i.e.haselementsofworks,suppliesand/orservices,toestablishthetypeofcontractandrelevantthresholdforthepurposesofthePCR2015,thecorrectcategorisationoftheContractismadebyreferencetothemain subject(thepartthathasthegreatestvalue)oftheContract.

InrelationtoaFrameworkAgreementandaDPS,thiswouldbethemaximumestimatedvalue,netofValueAddedTax,ofallthecontractsenvisagedforthetotaltermoftheFrameworkAgreementorDPS.

Note:tosetupandaccessaFrameworkthiswillneedtobestipulatedintheappropriateCCBreporttopreventafurtherandseparatereportbeingrequired;onetosetuptheFrameworkandonetoaccessit.

Council’s approved estimates

TheCouncil’sbudgetapprovedannuallybyfullCouncilandincludesestimatesofbothcapitalandrevenueexpenditure

Council’s Declaration of Confidentiality and Interest Form

ThisformisavailableontheCouncil’sintranet:https://intranet.croydon.gov.uk/working-croydon/finance/commissioning-and-procurement/forms

Council’s Constitution

ThearticlesoftheconstitutionfortheLondonBoroughofCroydon,whichsetouttherulesandframeworkwhichgoverntheoperationofthecouncil;theresponsibilityforfunctions;procedurerules,codesandprotocolsforspecificpartsofdecision-makingprocesses.

Council’s Financial Regulations

ThefinancialregulationsascontainedinPart4.HoftheCouncil’sConstitution.

DPA DataProtectionAct2018.

Director (a) ADirector,aHeadofServiceoranyotherOfficercurrentlyidentifiedasbeingaDirector,withrelevantauthorityunderadepartmentsschemeofauthorisations;

(b) ExecutiveDirector;

(c) AnominatedOfficerwithdelegatedauthoritytoincurexpenditure.

Terms Description/MeaningDynamic Purchasing System (“DPS”)

Acompletelyelectronicpurchasingsystemprocedureavailableforcontractsforworks,servicesandgoodscommonlyavailableonthemarket.For the avoidance of doubt, please refer to Regulation 32 to the PCR 2015 for a more detailed definition.

e-sourcing (tendering)

Aninternetbasedprocesswhereinthecompletetenderingprocess,fromadvertisingtosubmittingandreceivingtender-relatedinformation,isdoneonline.

EU Rules WheretheEURulesarereferenced,thismeansitisalsotoincludeEUPublicProcurementDirectives2015andEU2014/24/EU(whichandtheprinciplesoftheTreatyontheFunctioningoftheEuropeanUnionasapplytotheContractsasimplementedintoUKlawbyregulations.

Evaluation criteria ReferstothemeasuresusedineithertheSQorITTtoundertakeanassessmentofpotentialproviders.i.CriteriausedintheSQarereferredtoas‘selectioncriteria’.ii. CriteriausedintheITTarereferredtoas‘awardcriteria’.

Expression of Interest (“EoI”)

Astatementbyaprospectiveprovideroftheirintentiontocompeteforatenderingopportunityfortheprovisionofgoods,servicesand/orworks.

Executive Director TheChiefExecutive;or Aheadofoneofthefollowingdepartmentsoranysuccessortothem:ExecutiveDirectorofResources;ExecutiveDirectorofPlace;ExecutiveDirectorofChildren,Families&Education;ExecutiveDirectorofHealth,Wellbeing&Adults;ExecutiveDirectorofGateway,Strategy&Engagement;whoundertheirschemeofauthorisationscanexercisethepowersreferredtointheseRegulations.

Executive function MattersreservedtotheLeaderundertheCouncil’sStrongLeaderModelandassetoutintheLeadersSchemeofDelegation.

External Advisors & Consultants

Individualswhoarecontractedtofulfilarole,notalreadycoveredbytheCouncil’sestablishment,whichmaybeofaspecialistnature.

Framework Agreement

Anagreementbetweenoneormorecontractingauthoritiesandoneormoreeconomicoperators,thepurposeofwhichistoestablishthetermsgoverningcontractstobeawardedduringagivenperiod,inparticularwithregardtopriceand,whereappropriate,thequantityenvisaged.Thephrase‘Framework/s’shallalsobeconstruedaccordingly.For the avoidance of doubt, this is the definition provided in Regulation 33(2) PCR 2015.



Terms Description/MeaningGPAC TheGeneralPurposesandAuditCommitteeconstitutedunderthe

Council’sConstitutionandincludesanyotherCouncildecisionmakingbodyorindividualMemberorofficerwhomayfromtimetotimehaveresponsibilityforconsiderationoftheseRegulations.Note: GPACisaNon-Executivefunction.

Grant Anarrangementwheremoneyisgivenforastatedpurposewithorwithoutconditionsattachedandwhichisforthebenefitofallorasectionofthecommunity,butisnotaprocurementofservices.

How we Buy Report (RP2)

ThistheprocurementstrategyreportoftenreferredtoasRP2.TemplatecanbefoundontheProcurementGovernanceSharePointpage.

In Writing Referstopaperandelectronicrecords.

IIOB TheInvestinginourBoroughreport,producedbyCommissioning&ProcurementforCabinetlistingallRP2HowweBuyandRP3ContractAwardreportsthatrequireapprovingbyCabinetMemberorCabinetetc.

ITT (Invitation to Tender)

Thestepofacompetitivetenderingprocessinwhichsuppliersorcontractorsareinvitedtosubmitsealedbidsforthesupplyofspecificandclearlydefinedsupplies,servicesorworksduringaspecifiedtimeframe.

KPI KeyPerformanceIndicator-atypeofperformancemeasurementusedtoevaluatethesuccessofaparticularactivitycarriedoutbyaprovider.

LGPS LocalGovernmentPensionScheme.

The Leader or nominated Cabinet Member

TheLeaderofCroydonCounciloranynominatedCabinetMembertowhomtheyhavedelegatedauthoritytoexercisetheirpowersreferredtointheseRegulations.

Light Touch Regime (“LTR”)

Theprocedurethatmustbefollowedinrelationtosocialandotherspecificservices(includinghealthcare,cultural,educationalandlegalservices)underRegs74-76PCR2015.

London Living Wage (“LLW”)

ThebasichourlyratebeforetaxandotherdeductionsdeterminedandpublishedbytheGreaterLondonAuthorityfromtimetotime.

Low Value Expenditure

Expenditurewhichisbelow£100,000invalue.

LTR Services ServicessubjecttotheLight-TouchRegime.ThereisanOJEUadvertisingrequirementandotherspecificobligations,butahigherfinancialthresholdhasintroducedfortheLightTouchRegimetoapply.

Make or Buy Report (RP1)

Thereportisastrategicchoicebetweenin-housingtheservicesrequiredand/orbuyingitexternally(outsourcing).ItisadiscussiondocumentthathastobebroughttoCCBforagreement.

Terms Description/MeaningMost Economically Advantageous Tender (“MEAT”)

ThetenderingapproachusedtoprovideabalancebetweenqualityandcostOr100%assessmentofqualitytoafixedbudgetor100%pricewhereaminimumqualitythresholdismet.

Nominated Cabinet Member or Member

CabinetMemberwithinwhoseportfolio,asidentifiedbytheLeadersSchemeofDelegations,theservicewhichisthesubjectmatterofthecontractfalls.

Non-Executive function

MattersreservedtoFullCouncil/FullCommitteeormattersthataredelegatedinaccordancewiththeSchemeofDelegation.

Officer AnOfficerauthorisedbytheappropriateDirectororExecutiveDirectortoleadintherequirementsforaprocurementandcomplywiththeseregulations.

OJEU TheOfficialJournaloftheEuropeanUnion.

Output (or Outcome) Based Specification (“OBS”)

Aspecificationthatfocusesonthedesiredoutputsofaserviceinbusinessterms,ratherthanadetailedtechnicalspecificationofhowtheserviceistobeprovided.

Parent Company Guarantee

ParentCompanyGuaranteesareprovidedbyeitherthecontractor’simmediateparentorotherholdingcompanyandoperateasaguaranteetoensureaContractisproperlyperformedandcompleted.Intheeventofacontractordefault,theparentisobligedtoremedythebreach.

PCR 2015 ThePublicContractsRegulations2015andanysupersedeorreplacementlegislation.

Performance Bond PerformanceBondsaretypicallyprovidedbybanksorinsurancecompanies.Theyprovideaguaranteeofpaymentuptoastatedamountofmoneyshouldalossbesufferedasaresultofthecontractor’sbreachofacontractualobligation.

Person Includesthefollowing:(a) Agroupofpersons;(b) Afirm;(c) Apartnership(d) Anunincorporatedassociation;(e) Acompany;(f) Anotherlocalauthorityoragroupoflocalauthorities(g) AGovernmentDepartment(asrepresentedbytheSecretaryofState);(h) Astatutorybody;i) Apublicutilitythathasbeenprivatised.



Terms Description/MeaningPIN PriorIndicativeNoticeforpublishingintheOJEU,tonotifythemarketof

apossibleopportunity.SeePCR2015Reg.48forfurtherinformation.

Post Tender Clarification

Tenderorbidclarificationsthatmaybecomenecessaryduringtheevaluationoftenders.

Post Tender Negotiation

Contactbetweenthebuyerandtenderers,separatefromTenderClarification,torefineandimprovethebid(s)inordertoensurethatprices,deliveryorassociatedtermsofthecontractarecompetitive.Note: thisprocessisonlyavailableasindicatedintheseRegulations.

Another ‘Public Body’

AnycontractingAuthoritywithinthemeaningoftheEUPublicProcurementDirectivesandthePublicContractsRegulations2015.

Regulations AlltheRegulationsaslistedbelow.

S151 Officer TheDirectorofFinance,Investment,RiskandS151Officer

Scheme of Authorisations

Thedepartmental‘schemeofmanagement’settingoutwhoisauthorisedtomakewhatdecisionswithinthatdepartment.

Small and Medium Enterprises SME

ThemainfactorsdeterminingwhetheracompanyisanSMEare:1. numberofemployees;and2. eitherturnoverorbalancesheettotal.

Company category

Employees Turnover Balance sheet total

Medium-sized < 250 ≤ € 50 m ≤ € 43 m

Small < 50 ≤ € 10 m ≤ € 10 m

Micro < 10 ≤ € 2 m ≤ € 2 m

Theseceilingsapplytothefiguresforindividualfirmsonly.Afirmwhichispartoflargergroupingmayneedtoincludeemployee/turnover/balancesheetdatafromthatgroupingtoo.

Social Value TheprocesswherebytheCouncilmeetsitsneedsforsupplies,services,worksandutilitiesinawaythatachievesvalueformoneyonawholelifebasisintermsofgeneratingbenefitstosocietyandtheeconomy,whilstminimisingdamagetotheenvironment.SeetheCouncil’sSocialValuePolicy.

Social Value Act ThePublicServices(SocialValue)Act2012.

Social Value Toolkit Thedocumenttitled‘InspiringandCreatingSocialValueinCroydon’whichprovidesadviceontheprocessandbestpracticeprincipleswhentryingtoleveringreatsocialvalueinrespectofcommissioning.

Terms Description/MeaningStandstill Period Aperiodoftimewhenanauthoritycannotenterintoacontractwitha

supplieruntilithasconcluded,inaccordancewithRegulation87ofPCR2015.

Strategy Report Aprocurementstrategyreportintherelevantformat(dependantontheContractvalue)whichisthenprovidedtotheCCBatthebeginningofeachprocurementexercise.Asaminimum,thisreportshouldsetouttheprojectplan,proposedprocurementroute,anyproposeddeparturesfromstandardprocurementpractice,theevaluationapproach,risks,timetable,projectstructureanddetailsoftheContract.

SQ SupplierSelectionQuestionnaireaprocessusedtoidentifypotentialsuppliersthataremostcapableofperformingacontract.

Tendering and submitting a tender

IncludesanyquotationoractiontakenbyanypersonseekingtoenterintoacontractwiththeCouncil,whichissubjecttotheseRegulations.

Third Sector Therangeofnon-statutoryserviceproviderssetupasnotforprofitorganisations.Theseencompassthetraditionalvoluntaryandcommunitysector,co-operatives,socialenterprisesandregisteredsociallandlords.Forthepurposesofthisdocumenttheterm‘thirdsector’isusedtodenotethisgroupoforganisations.

TUPE TransferofUndertakings(ProtectionofEmployment)Regulations2006.

UK Regulations ThePCRand/orCCRandanynationallegislationthataffectsContractsundertheseRegulations.

Value Added Tax (“VAT”)

ValueaddedtaxaschargeableundertheValueAddedTaxAct1994.



Terms Description/MeaningValue for Money (“VfM”)

ThetermusedtoassesswhetherornottheCouncilhasobtainedthemaximumbenefitfromthegoods,suppliesandservicesitacquiresand/orprovides,withintheresourcesavailabletoit.Itnotonlymeasuresthecostofgoods,suppliesandservices,butalsotakesaccountofthemixofquality,cost,useofresources,fitnessforpurpose,timelinessandconveniencetojudgewhetherornot,whentakentogether,theyconstitutegoodvalue.AchievingVfMmaybedescribedintermsofthe‘threeEs’-economy,efficiencyandeffectiveness.

Variant bid Abidwhichisdifferentfromthatspecificallyrequestedbythecontractingauthorityinthetenderdocuments.Examplesofvariantbidsarethoseproposingdifferentpricingstructures,ornewandinnovativewaysofdeliveringaservice.

Weightings TheweightingsallottedtothecriteriachosentoevaluatetheSQ/ITTtoreflectwhatismostimportantinanyparticularprocurement.Weightingsmaybeexactpercentagesoraspecifiedrange,wherethisisappropriateinviewofthesubjectmatter.

Working Day AnyotherdayotherthanaSaturday,SundayandanybankorUKpublicholidays.


Procurement Process Flowchart – Appendix B

Reg 11 Goods / Services /

Works up to £10,000

Two written quote from a local supplier

(if poss.)

Reg 11 Goods / Services / Works

over £10,000 up to £100,000

Three written quotes min 2 local suppliers

(if poss.) via the Council’s Central

Buying Team

How we Buy (RP2) procurement strategy

Goods & Services £100,000 >

Works £500,000 >

Approval Cabinet

over £5,000,000 > endorsed by CCB

via Investing In Our Borough Report

Approval CCB up to

£5,000,000

Reg 11Goods / Services /Works

Over £100,000

£100K to £500K Approval Chair of

CCB no deviations from approved

How we Buy

Over £500kApproval Cabinet

Member £500,000 up to £5,000,000 Cabinet over

£5,000,000 endorsed by CCB via Investing

In Our Borough Report

£100K to £500K Approval chair of CCB on recommendation

from CCB

Reg 28Award of Contract

(RP3)

Reg 30Contract

Extensions

Approval CCB if term & value incl original award

ContractVariations/extras

in accordance with Reg. 30

Reg 30Contract Variations

/ Extras

Approval £1,000,000 or

>25% of original contract value CCB new contract value

Approval Cabinet Member or Cabinet

Approval upto 25% of original contract value,

Financial Scheme of Delegation,

new contract value < £1,000,000

Any Goods / Services / Works regardless

of value

Is there a Council Contract that supplies

the same or similar

Please contact the Contract Manager or follow the guidance

to place order

Yes

No

or

or

Legal Departmentto execute

“True electronic copy’ of contract

plus scanned signature pages

Upload electronic copies onto

Contract Management System

Hard copy & original of Contract remain with Legal & storedin the Deeds room

or

or

Signing & Sealing of Contracts

Spend ApprovedFinancial Scheme

of Delegation ensuring pre-requisite checks

of suppliers have been completed

Spend ApprovedFinancial Scheme

of Delegation ensuring pre-requisite checks

of suppliers have been completed

If required for Contracts to be sealed