The Council's requirements are met in a variety of ways ranging from small one off purchases to multi million pound service contracts. The procurement process must comply with European Union regulations, UK law and the Council's own Contracts Procedure Rules, these lay down the procedures to be followed for obtaining quotations, tendering and awarding contracts.
As well as awarding its own contracts, Bury Council has also entered into collaborative procurement arrangements with other Councils, utilise Central Government arranged contracts, are associate members of the Yorkshire Purchasing Organisation (YPO) and make use of contracts arranged by them and also participate in a number of contracts produced by the Local Authority Purchasing Partnership (LAPP).
European Union regulations
European Union directives are part of UK law and apply to all public sector contracts over a certain financial threshold. The thresholds, which are reviewed every two years, are £139,893 for supplies and services contracts, and £3,497,313 for works contracts.
Where contracts are above these thresholds the Council is required to follow specific procedures, including the placing of a tender notice in the Official Journal of the European Union (OJEU) and to follow prescribed tender procedures, which can be:
- Open Procedure - whereby anyone is invited to tender
- Restricted Procedure - where an initial pre-qualification questionnaire is completed by potential suppliers from which a shortlist is drawn and invited to tender
- Negotiated Procedure - which is permitted in certain circumstances and allows for contracts to be negotiated with a supplier
- Competitive Dialogue - where dialogue is entered into with potential suppliers with the aim of developing a suitable solution that meets the need of the Council
There are also two urgency procedures available. The EU directives additionally require each of these procedures to follow prescribed minimum time scales in relation to responses to advertisement, and tender submissions. Further information about the EU Procurement Directives can be found at www.simap.eu.int.
Council Contracts Procedure Rules
These lay down the procedures to be followed for obtaining quotations, tendering and awarding of contracts. This includes how contracts of different values should be advertised, specified, submitted and awarded.
Thresholds for the advertisement and award of contracts under the Council's standing orders
Under £25,000:
Quotations will be sought from three suppliers
Between £25,000 and £100,000:
Tenders will be invited from a minimum of three suppliers. If over £50,000 an advert will be placed in a local newspaper, usually the Bury Times.
Between £100,000 and £139,893:
Tenders will be invited from a minimum of four suppliers. An advert will be placed in a local newspaper and appropriate trade journal
Between £139,893 and £250,000:
Tenders will be invited from a minimum of four suppliers. In addition to advertising in a local newspaper and appropriate trade journal, a notice will be placed in OJEU
Over £250,000:
Tenders will be invited from a minimum of six suppliers. Advert will be placed in a local newspaper, appropriate trade journal and OJEU
Works contract over £3,497,313:
Tenders will be invited from a minimum of six suppliers. Advert will be placed in a local newspaper, appropriate trade journal and OJEU
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