CAMBRIDGESHIRE FIRE AND RESCUE SERVICE
SERVICE ADMINISTRATION AND MANAGEMENT ORDER
SECTION 4: FINANCE
PART 5: STANDING ORDERS RELATING TO CONTRACTS
RESPONSIBLE GROUP:
FINANCE AND CONTRACT MANAGEMENT GROUP
CONTENTS
STANDING ORDERS
SECTION 1 - SCOPE OF STANDING ORDERS
1.BASIC PRINCIPLES
2.OFFICER RESPONSIBILITIES
3.EXEMPTIONS
4.RELEVANT CONTRACTS
SECTION 2 - COMMON REQUIREMENTS
5.STEPS PRIOR TO PURCHASE
6.RECORDS AND DEBRIEFING CANDIDATES
7.APPROVED LISTS
SECTION 3 - CONDUCTING A PROCUREMENT
8.COMPETITION REQUIREMENTS FOR PURCHASE AND DISPOSALS
9.STANDARDS
10.DETERMINING AWARD CRITERIA
11.INVITATIONS TO TENDER/QUOTATION
12.SHORTLISTING
13.SUBMISSION, RECEIPT AND OPENING OF TENDERS
14.CLARIFICATION OF BIDS AND PRE- AND POST-TENDER NEGOTIATION
15.EVALUATION AND AWARD OF CONTRACT
SECTION 4 - CONTRACT AND OTHER FORMALITIES
16.CONTRACT DOCUMENTS
17.BONDS AND GUARANTEES
18.PREVENTION OF CORRUPTION
19.DECLARATION OF INTEREST
SECTION 5 - GENERAL
20.POST CONTRACT EVALUATION AND MONITORING
ANNEX A / Defined TermANNEX B / A Brief Guide to Standing Orders Relating to Contract.
ANNEX C / Flow Chart to Standing Orders Relating to Contract.
ANNEX D / Further Advice
SECTION 1 - SCOPE OF STANDING ORDERS
1BASIC PRINCIPLES
1.1Purchasing and disposal procedures must
1.1.1Achieve best value for public money spent
1.1.2Be consistent with the highest standards of integrity
1.1.3Ensure fairness in allocating public contracts
1.1.4Comply with all legal requirements
1.1.5Ensure that Non-Commercial Considerations (see Appendix 1) do not influence any Contracting Decision.
1.1.6Identify and address associated risks
1.1.7Support the Fire Authorities corporate and district aims and policies
1.1.8Comply with the National, Regional and Fire Authority’s
Procurement Strategy
2OFFICER RESPONSIBILITIES
2.1Officers
The Officer responsible for purchasing or disposal must comply with these Standing Orders, Financial Regulations, Financial Control Standards, Code of Conductand with all UK and European Union binding legal requirements.
2.1.1The Officer must keep the records required by Standing Order 6.
2.1.2Tender procedures must be conducted in accordance with procedures set out in the tender documents.
2.1.3Officers must also ensure that agents, consultants and contractual partners acting on their behalf also comply.
2.1.4Officers must take all necessary legal, financial and professional advice.
2.1.5Standing Orders must be complied with strictly. They are minimum requirements. A more thorough procedure/strategy may be appropriate for a particular contract.
2.1.5.1For example Standing Order 8.1 would normally require that quotes be obtained, it might be appropriate in the particular circumstances to seek more quotations in writing or tender submissions. Equally it may not always be appropriate to make use of an exemption under Standing Order 3 even if one might apply or be granted.
2.1.6Declare any personal financial interest in a contract.
2.1.7Conduct any best value review and appraise the purchasing need.
2.1.8Allow at least four weeks for submission of bids and keep bids confidential
2.1.9 Keep records of dealings with suppliers
2.2Directors
Directors must ensure that their personnel comply with Standing order 2.1 and must keep a register of:
2.2.1Contracts completed by signature (rather than by the Authority's seal - see Standing Order 16.5) and arrange their safekeeping in the Contracts cabinet located in the Finance Group.
2.2.2Exemptions recorded under Standing Order 3.4. and ensure that the Director of Resources monitors the use of exemptions.
3EXEMPTIONS
3.1Contracts may be placed after direct negotiation with one or more suppliers, except where the EU Procedure applies, if:
3.1.1the subject matter of the contract can only be supplied by one specialist firm;
3.1.2the purchase is to be made using standing arrangements with a local authority, government department, statutory undertaker or public service purchasing consortium such as Firebuy, ESPO and PITO OGC Buying Solutions;.
3.1.3that it is necessary because of unforeseen emergency involving immediate risk to persons, property or serious disruption to Authority services; and
3.1.4the contract is an extension to an existing contract where a change of supplier would causeie:
• disproportionate technical difficulties;
• diseconomies; or,
• significant disruption to the delivery of Authority services, but
If an extension of an exemption is required the Director of Resources must be consulted.
3.2The Fire Authority and its committees have power in exceptionalcircumstances to dispense with any provision of these Standing Orders.
3.3A Director also has the power in exceptional circumstances to dispense with any provision of these Standing Orders:
3.3.1with the agreement of the Director of Resources; and
3.3.2where the contract exceeds £50,000, consultation with the relevant Chairman must also take place and
3.3.3where the contract exceeds the EU Threshold, it must be reported to the Authority.
3.4The Officer shall record any exemptions under Standing Order 3.1.-3.3. and the reasons for them.
3.5Any permanent exemptions granted under Standing Order 3.2. or 3.3. must be reviewed annually and either reconfirmed or amended.
3.6The Contracts and Procurement Manager must keep a register of permanent exemptions.
4RELEVANT CONTRACTS
4.1All relevant contracts made by or for any part of the Authority must comply with Standing Orders.
4.2This means any arrangement under which the Authority pays or receives money or equivalent value but not a contract:
• of employment or,
• to convey or acquire an interest in land (land transactions).
It includes contracts for:
• the supply or disposal of goods
• hire, rental, lease or sharing of goods;
• execution of works;
• services including (but not only) those related to:
• the recruitment of staff
• financial and consultancy services
SECTION 2 - COMMON REQUIREMENTS
5 STEPS PRIOR TO PURCHASE
Before beginning a purchase the Officer responsible for it must:
5.1In a manner commensurate with the complexity and value of the purchase:
5.1.1consult with Procurement to ensure that a contractual arrangement is not already in place, or a National /Regional framework agreement.
5.1.2take into account the requirements from any Best Value Review and the need for the expenditure.
5.1.3consider its priority.
5.1.4establish the most cost-effective means of meeting the Authority's needs giving consideration to total cost of acquisition of goods/services see Glossary.
5.1.5define the objectives of the purchase.
5.1.6assess the risks associated with the purchase and how to manage them.
5.1.7consider what procurement method is most likely to achieve the purchasing objective, including internal or external sourcing or through a consortium. Consideration should also be given to collaboration with other purchasers, partnering and long term relationships.
5.1.8identify and consult with users as appropriate about the proposed procurement method, contract standards and performance and user satisfaction monitoring methods.
5.1.9select the most appropriate procurement method and ensurethe appraisal is in writing if the Total Value of the purchase exceeds £15,000 See Section 1.3.
5.2and must confirm
5.2.1there is committee approval for significant new proposals as required by Financial Regulations.
5.2.2that Prior Information Notices required for the EU Procedure have been sent and copied to the Director of Resources.
6RECORDS AND DEBRIEFING CANDIDATES
6.1Where the Total Value exceeds £15,000 a file must be opened and must record and/or include:
6.1.1the method for obtaining bids (see Standing Order 8.1).
6.1.2Any Contracting Decision and the reasons for it.
6.1.3any exemption under Standing Order 3 together with the reasons for it.
6.1.4Award Criteriaeither based on lowest cost or appropriate weightings with regard to most economically advantageous tender.
6.1.5tender documents sent to and received from Candidates.
6.1.6pre and post tender negotiation (to include minutes of meetings).
6.1.7the contract documents.
6.1.8post contract evaluation and monitoring.
6.1.9written records of communications with Candidates and with the successful contractor throughout the period of the contract.
6.2Where the Total Value is less than £15,000, the following documents must be kept:
6.2.1invitations to quote and Quotations
6.2.2a written record
• of any exemptions and reasons for it
• of the reason if the lowest price is not accepted
• communications with the successful contractor.
6.3Written records required by this Standing Order must be kept for six years after the end of the contract. However documents which relate to unsuccessful Candidates may be microfilmed or electronically scanned or stored by some other suitable method after 12 months from award of contract provided there is no dispute about the award.
6.4Candidates must be notified simultaneously and as soon as possible of any Contracting Decision.
6.4.1The notification must be in writing where the Total Value exceeds £15,000.
6.4.2If a Candidate requests in writing the reasons for a Contracting Decision the Officer must give the reasons in writing within 15 days of the request (see Standing Order 15.3 for further details).
7APPROVED LISTS
7.1Approved Lists may be used to select Candidates as an alternative to advertisement where the Total Value of a contract exceeds£75,000. They may also be used to select Candidates where the Total Value is less.
7.2Directors in consultation with the Director of Resources may draw up
7.2.1Approved Lists of persons capable of performing contracts to supply goods or services of particular types; and
7.2.2Criteria for Shortlisting from the lists.
7.3No person may be approved until there has been an adequate investigation into their financial and technical ability to perform the contract and their adherence to adequate Environmental, Health and Safety and Equal Opportunities policies and insurance limits.
7.3.1The lists must be drawn up after an advertisement inviting applications for inclusion on the list. The advertisement must be placed to secure widest publicity among relevant suppliers.
7.4The list and shortlisting criteria must be reviewed at least annually by the Director of Resources and readvertised at least every three years.
7.5Review means:
7.5.1the reassessment of the financial, technical ability and performance of those persons on the list and
7.5.2the deletion of those persons no longer qualified.
7.6A written record must be kept justifying the deletion.
7.7On re-advertisement, a copy of the advertisement must be sent to each person on the list, inviting them to reapply.
7.8All lists must be open to public inspection.
Revised August 06 1/34
SECTION 3 - CONDUCTING A PROCUREMENT
8COMPETITION REQUIREMENTS FOR PURCHASE AND DISPOSAL
8.1The Officer must calculate the Total Value (ie total lifecycle costs or total cost of acquisition (whichever is applicable) (see Annex A).
The following procedures apply where there are no other procedures which take precedence. Other procedures may include agency agreements with government or those relating to compulsory competitive tendering. If in doubt Officers must seek the advice of the Contracts and Procurement Manager, Head of Finance or Director of Resources.
8.2Where the Total Value for a purchase is within the values in the first column below, the Award Procedure in the second column must be followed.
8.2.1Shortlisting shall be done by the persons specified in the third column.
TOTAL VALUE / AWARD PROCEDURE / SHORTLISTINGUp to £4,999 / 1 oral Quotation (confirmed in writing where the Total Value exceeds £500) / Officer and Line Manager
£5,000 -£14,999 / 3 written quotations / Officer and Line Manager
£15,000-£74,999 / Invitation to Tender
to at least 4 Candidates (advertisement not necessary) / Officer, Line Manager & Contracts and Procurement Manager
£75,000 - EU Threshold / Invitation to Tender by Advertisement/List to at least 4 Candidates / Officer, Line Manager, Contracts and Procurement Manager or Director of Resources and Head of Paid Service
Above EU Threshold / EU Procedure or, where this does not formal tendering, Invitation to Tender by Advertisement/list to at least 6 Candidates / consult the Head of Paid Service and - see SO 8.4
8.2.2Where it can be demonstrated that there are insufficient suitably qualified Candidates to meet the competition requirement, all suitably qualified Candidates must be invited.
8.3In addition, other steps must be taken as necessary to obtain adequate competition and best value for money.
8.4An Officer must not enter into separate contracts nor select a method of calculating the Total Value in order to minimise theapplication of these Standing Orders.
8.5Where the EU Procedure is required the Officer shall consult the Contracts and Procurement Manager / Head of Paid Service and Solicitor to the Authority to determine the method of conducting the purchase.
8.6Items for disposal must be sent to public auction except where better value for money is likely to be obtained by inviting Quotations and Tenders. In the latter event the method of disposal must be agreed with the Treasurer.
8.7When inviting for quotations and tenders for disposing of equipment, the method of disposal of surplus or obsolete stocks/stores must be determined as follows:-
TOTAL VALUE / PROCEDUREUp to £1000 / three Quotations or public sale
£1001 to £14,999 / three written Quotations
£15,000 to £74,999 / four written Quotations
£75,000 and above / Invitation to Tender to at least four Candidates
9PRE TENDER MARKET RESEARCH AND CONSULTATION
9.1The Officer responsible for the purchase:-
may consult potential suppliers prior to the issue of the Invitation to Tender in general terms about the nature, level and standard of the supply, contract packaging and other relevant matters provided this does not prejudice any potential Candidate but,
must not seek or accept technical advice on the preparation of an Invitation to Tender or Quotation from anyone who may have a commercial interest in them, if this may prejudice the equal treatment of all potential candidates or distort competition, and
should seek advice from the Contracts and Procurement Manager at this stage.
10 STANDARDS AND DETERMINING AWARD CRITERIA
10.1The Officer must ascertain what are the relevant British, European or International standards which apply to the subject matter of the contract. The Officer must include those standards which are necessary properly to describe the required quality. The Head of Paid Service and the Solicitor to the Authority must be consulted if the Officer proposes to use standards other than European standards.
10.2The Officer must define Award Criteria appropriate to the purchase.Award Criteria must be designed to secure an outcome giving best value for money for the Authority. The basic criteria shall be
10.2.1'lowest price' where payment is to be made by the Authority or
10.3 'highest price' if payment is to be received or
10.3.1'economically most advantageous' offer (where considerations other than price also apply).
10.3.2If the latter criterion is adopted it must be further defined by reference to sub-criteria.
10.3.3 Sub-criteria may refer only to relevant considerations. These may include price, service, quality of goods, running costs, technical merit, previous experience, delivery date, cost effectiveness, quality relevant environmental considerations, aesthetic and functional characteristics (including security and control features), safety, after-sales services, and technical assistance, and any other relevant matters.
10.4Award Criteria must not include:
10.4.1non-Commercial Considerations
10.4.2matters which discriminate against non-national suppliers in the European Economic Area.
10.4.3 matters which are anti-competitive within the meaning of the Local Government Act 1988.
11INVITATIONS TO TENDER/QUOTATIONS
11.1 The Invitation to Tender must state that no Tender will be considered unless it is received by the date and time stipulated in The Invitation to Tender. No Tender delivered in contravention of this clause shall be considered.
11.2All Invitations to tender shall include the following:
11.2.1A specification (either input or output). The specification must describe clearly the Authority's requirements in sufficient detail to enable the submission of competitive offers.
In preparing specifications the Officer must have regard to any guidancecontained in theContract Management Handbook.
11.2.2A requirement for tenderers to declare that the tender content, price or any other figure or particulars concerning the Tender have not been disclosed by the tenderer to any other party (except where such a disclosure is made in confidence for a necessary purpose).
11.2.3 A requirement for tenderers to complete fully and sign all tender documents including a Form of Tender, Certificate of Bona Fide Tender, Canvassing Certificate and non collusion, Instructions to Tenderers, Health and Safety Questionnaire, Equality and Fairness Questionnaire, Certificate of Insurance and evidence of compliance with Commission for Race Equality (CRE) 111 Code of Practice.
11.2.4Notification that tenders are submitted to the Fire Authority on the basis that they are compiled at the tenderers expense.
11.2.5The method by which any arithmetical errors discovered in the submitted tenders is to be dealt with. In particular whether the overall price prevails over the rates in the tender or vice versa.
11.2.6 Specify the Award Procedure and where any prior advertisement has not defined the Award Criteria, Invitations to Tender must state the Award Criteria in objective terms and if possible in descending order of importance and for Tenders above the EU threshold state the relative weightings applied to award criteria.
11.2.7A stipulation that any Tenders submitted by fax or any other electronic means shall not be considered.
11.3The Invitation to Tender or Quotation must state that the Authority is not bound to accept any Quotation or Tender.
11.4All Candidates invited to tender or quote must be issued with the same information at the same time and subject to the same conditions. Any supplementary information must be provided on the same basis,
11.5The Invitation to Tender should normally specify the goods, services or works that are required and include the conditions of contract that will apply (see Standing Order 16).
12SHORTLISTING
12.1Where Approved Lists are used, Shortlisting may be done by the Officer in accordance with criteria drawn up when the Approved List is compiled (see Standing Order 7).
However where the EU Procedure applies, Approved Lists may not be used in this way.
12.2Any Shortlisting must have regard to financial and technical standards relevant to the contract and may have regard to Award Criteria.
Special rules apply in respect of the EU Procedure and guidance should be sought.
12.3An Officer is not bound to make a shortlist and may decide to send Invitations to Tender and to evaluate all possible Candidates. (This is sometimes described as an 'Open Procedure' by contrast with a 'Restricted Procedure' when Shortlisting occurs.)
12.3.1 The Officer responsible for Shortlisting is specified in Standing Order 8.2.
13SUBMISSION, RECEIPT AND OPENING OF TENDERS
13.1Period for Candidates response.
Candidates invited to respond must be given an adequate period in which to prepare and submit a proper Quotation or Tender, consistent with the urgency of the contract requirement. Normally at least four weeks should be allowed for submission of Tenders.
3.1.1The EU Procedure and law relating to compulsory competitive tendering lay down specific time periods.
13.2All Tenders must be returned to the Contracts and Procurement Manager.
13.3The Officer must not disclose the names of Candidates to any staff involved in the receipt, custody or opening of Tenders.
13.4Tenders by fax or other electronic means must be rejected unless they have been sought in accordance with an electronic tendering system approved by the Fire Authority.