The following is an overview of the Council's contracting rules. More detailed information about the procedures we follow can be found in the section How the Council Buys

The Council tries to ensure value for money, fairness and probity in all its transactions. It therefore has a strict set of rules to abide by in its procurement activities. The following areas detailed below are the main rules and policies that would affect your dealings with the Council; for example, complying with EC regulations on Public Procurement.

 

Contract thresholds

The procedure, which the Council follows, is determined by the value of a contract:

Low balue (normally under £5,000)

  • For anything other than incidental items of very low value, we obtain written quotes and purchase on a "best buy" basis

Intermediate value (up to £50,000)

  • We always consider a minimum of 3 suppliers and evaluate in terms of value for money and quality
  • Sometimes, such contracts will be advertised in at least one local newspaper and, if appropriate, a trade journal

High value (over £50,000)

  • All contracts with a value of over £50,000 must be exposed to a formal competitive tendering process.
  • Contracts with values which exceed the thresholds determined by the European Procurement Regulations (see bipsolutions [external]) (with the exception of some exempt services), must be advertised in OJEU (Official Journal of the European Union, formerly known as OJEC).

 

Advertising of contracts and prior indicative notices

All our contracts that need to be advertised will appear in at least one local newspaper and, if appropriate, a trade or professional journal. Where the value of contracts exceed the EU thresholds (see bipsolutions [external]) there will be a publication in the Supplement of the Official Union Journal of the European Union (OJEU).

The Council publishes in OJEU a Prior Indicative Notice (PIN). This gives advance warning of contracts to be advertised in OJEU throughout the year, which are known to the Council at the time of publishing. By including a tender in the Prior Indicative Notice, the subsequent tendering timetable can be reduced (see below).

Deadlines will be included in advertisements and are in calendar days.  The deadlines for responding to advertisements placed in OJEU are shown below. The figures in brackets are those that apply if the contract previously appeared in the Prior Indicative Notice for the financial year in which the tendering process commences:

  • Open Procedure - 52 days (36 days)
  • Restricted Procedure - 37 days for expression of interest and 40 days (26 days) for the receipt of tenders
  • Negotiated Procedure - 37 days for receipt of expressions of interest
  • When a contract is not advertised in OJEU, the Council's own minimum tender return time will be stipulated

Supplier selection policy

Supplier selection is based on overall value for money. Whilst price is important, we will always consider quality, reliability, safety, good design, timely delivery, maintenance and after sales support before arriving at a decision which is the most economically advantageous to the Council.

As far as possible, where the value is high enough to justify the cost to both parties, contracts are placed after inviting individuals/companies to submit tenders in competition. The number of individuals/companies invited to tender will vary with the nature of the order and the availability of suitably qualified suppliers.  In many cases it will not be practical to include all those suppliers who express an interest, and where there is a wide field of potential suppliers we may undertake a pre-qualification process. The Council complies with EC regulations on Public Procurement

(See bipsolutions [external] or for further information click here)

Potential suppliers must demonstrate their financial, commercial and technical capability to fully meet the contractual requirements under tender. We will also take account of a company's past performance with reference to contracts of a similar nature, both with the Council and other organisations. We will also be looking for a clear demonstration of commitment to equal opportunities in employment, to the environment and to safe systems of working.

For high value service contracts, we evaluate suppliers on a set of pre-determined factors. These criteria will be set out in both our advertisements and our tender documents.

We may ask for references from previous customers, bankers and business information companies and, in some cases, arrange inspection visits to the company and its work sites.

Contracts for agency and temporary staff working in sensitive roles (for example, with children or vulnerable adults) will be subject to the council carrying out additional vetting on those individuals, which may include checks with the Criminal Records Bureau. The CRB has access to personal records held by the Police, the Department of Health, and the Department for Education and Skills ensuring the best possible scrutiny of applicants.

Equalities

Council spending generates and sustains thousands of jobs and the Council has a statutory duty to ensure that public money is not spent on practices that lead to unfair racial discrimination.  The Council is committed to Equal Opportunities and must assure local people that contractors for the Council do not operate discriminatory practices but offer equality of opportunity to all. The Council encourages and where possible requires those who supply services or goods to the Council to practice equal opportunities.

In the light of this, the Council will often include equality issues in the contracting process. This often includes a requirement in the standard business questionnaire to answer various equalities questions as well as a requirement to provide employment information while the contract is running.

Environmental policy

The Council seeks to address the environmental impact of its activities and incorporate awareness of environmental issues into all its services.

In most cases, suppliers of goods or services will be required to demonstrate their appreciation of environmental issues and state how they operate an effective environmental policy. The Council has set out its commitment to buying only those products which ensure sustainability in its Corporate Purchasing Policy.

For larger contracts, suppliers are likely to be expected to have a recognised accreditation in environmental management systems, which is at least equivalent to ISO 14001.

Quality management

In many cases, particularly the larger contracts, the Council operates a system of direct monitoring of the contract in conjunction with a quality management system operated by the contractor. Such a management system will be required to include an extensive inspection regime with regular reporting to the Council on contract performance, which will be compared to the Council's own monitoring results.

In submitting a tender for work, organisations will be expected to explain the quality management system they will operate, which will be required to be installed at the commencement of the contract. The Council will expect tenderers to have a recognised accreditation in quality management systems. However, the Council will entertain submissions from organisations that have developed their own systems which are at least equivalent to ISO 9000 series.

Health and Safety

When expressing an interest to tender you will normally be asked for details of your Health and Safety policies and procedures. You must also submit a copy of your Health and Safety Policy as required by Section 2 (3) of the Health and Safety at Work Act 1974 and any codes of safe work practices issued to employees.

Additional questions concerning Construction Design and Management Regulations (1994) may also be asked by the Council where appropriate.

Health and Safety practices will be keenly monitored by the Council during the life of a contract. Breaches of the Health and Safety at Work Act 1974 and other examples of poor practice will be considered as grounds for termination of a contract.

Tendering procedures

Open tendering

Open tendering is a one-stage bidding process, where all interested service providers responding to an advertisement will be invited to submit a tender.

The advertisement will state where interested parties may obtain tender documents and the last date when tenders will be accepted.

Restricted tendering

This is a two-stage bidding process in which potential contractors expressing an interest in bidding are evaluated first. Then a shortlist is drawn up from the evaluation exercise for the sole purpose of inviting bids.

The public notice will give details on what information must be submitted by the supplier or how to receive the necessary documentation to be able to express an interest in being short listed.

Negotiated tendering

This is when the Council, under certain limited circumstances, negotiates with one or more organisations of its choice.

The tendering process chosen is at the Council's discretion. The Restricted process is likely to be applied when a large number of applicants is anticipated (e.g. window cleaning), allowing that number to be reduced to manageable list of tenderers.   

Best Value

From April 2000, Best Value replaced Compulsory Competitive Tendering (CCT). The Government White Paper; Modern Local Government - In Touch with the People, states that Best Value will be a duty to deliver services to clear standards - covering both cost and quality - by the most effective, economic and efficient means available.

Whereas CCT applied to certain defined services, Best Value applies to all functions of a Council. All local authorities are required to secure Best Value in the way they deliver their services. This means that Councils must ensure continuous improvement in all functions and secure value for money throughout the buying process. It also means that Councils are accountable to local people in their business dealings, which must be open, fair, transparent and auditable.

In response to the demands of Best Value, the Council has made a commitment to: "decide on the best method of providing services, whether in-house, by external providers or in partnership, based on demonstrable value not dogmatic principles".

In meeting this commitment, the Council has the following aims and objectives:

  • The Council will undertake to expose the whole of its activities to processes which identify their competitiveness
  • The Council will seek to engage only those service providers that can meet the needs of the community and the standards set by the Council
  • Alliances with external organisations will be actively sought to improve the quality of services and to attract investment and development that would not otherwise be possible
  • The Council will ensure that where direct services are deployed, these are proven to be the best possible providers of the service and are continually reviewed to maintain their competitiveness
  • All Council Procurement activities will seek to strike a balance between quality and cost effectiveness
  • The Council will seek out 'added value' benefits when identifying procurement options for service provision
  • The Council will, wherever possible, ensure fair and open competition in all its procurement activities
  • All procurement decisions will be taken in the context of achieving best value for the Council and the community

e-Procurement

Waltham Forest is committed to interacting efficiently with members of the public and businesses and we recognise the opportunities e-procurement can offer. Using the internet allows us to make quicker purchasing decisions and prompt payments.

Experience in the private sector shows that the performance improvement benefits to the purchasing organisation are matched by a similar set of benefits to the supplier. We aim to be trading electronically with all our suppliers by 2005 and hope to achieve two objectives through our e-procurement initiative:

  • streamline the purchase to pay process to the benefit of our suppliers and the authority
  • helping local businesses take advantage of the commercial opportunities generated by the internet

Conditions of contract

More information

For more information please email:
procurement@walthamforest.gov.uk