Prcurement Update OSC Cmmittee Meeting 30 th Nv 2017 Head f Prcurement - Paul Meigh Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Gvernance why we have prcurement rules Required t be part f ur cnstitutin and are Cntained in Part 4J Cde f Prcurement Gvernance. Cmpliance t the Public Cntracts Regulatins 2015 and EU Treaty Principles n transparency and nn discriminatin. T ensure Cmpliance with applicable legislatin fr example: Best Value duty under the Sectin 3 f the Lcal Gvernment Act 1999. Sectin 17 f the Lcal Gvernment Act 1988. Ensures gd and cnsistent practice acrss the Cuncil. Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Scpe f the Rules The rules apply t the cnduct f prcurements and award f cntracts in relatin t gds, wrks and services. The rules d nt apply t the fllwing: Delegatin f functins t ther Cuncils. Partnering arrangements where the Cuncil is nt the lead authrity and the prcurement rules f the lead authrity apply. Emplyment cntracts. Grants t rganisatins where services are prvided t the cmmunity as ppsed t services prvided n behalf f the Cuncil. Cntracts fr the sale f land (pure sale f land) are gverned by Asset Management Financial Prcedure 9. Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Prcurement Prcedure Rules - Quick Guide (PT70) A quick guide t help yu FOR understand ALL PROCUREMENTS the rules and which dcuments t use. Step 1 Up t 2,000 2001-20,000 QUOTATION A minimum f three written qutatins using the simplest f qutatin dcuments. If the spec is mre cmplicated/critical, yu shuld use a higher value frm. 20,001-59,999 QUOTATION At least three suppliers shuld be invited; five r mre is best practice. It shuld be a sealed bid If the spec is simple use a lwer value frm. 60,000 - OJEU Threshld Supplies / Services 164,176 A frmal Open tender with advertisement which allws anyne t bid fr the gds wrks and services. Wrks abve 164,176 yu can run a restricted prcess Versin 2 Yu Fllw must Step use 1, existing then Step Crprate 2 rute Cntracts depends n set the up value. by the Yu Cuncil must and have available expenditure n the apprval, intranet see under verleaf. Prcurement and in-huse services (Print, Archaelgy and ICT). If there is n existing cntract yu shuld check if a framewrk cntract exists fr that service via the Prcurement Hub http://cntracts.eelga.gv.uk/. Only after thse tw rutes have been explred shuld yu fllw the rules and methds detailed in Step 2 belw. Cntact Prcurement /Legal Teams if yu need help r if it s High Value. Step 2 Fr cntracts valued up t 2,000 the principles f best value apply and shuld be dcumented. Wherever pssible btain at least tw cmpetitive qutatins. OJEU Threshld Wrks 4,104,394, Supplies & Services 164,176, Health & Scial Care 589,148 Abve EU threshld yu must advertise in OJEU. CBC mainly use the Restricted r Open prcedures. There are ther prcedures available, Always cnsult the Prcurement team fr advice. Request fr Qutatin- Lw Value (PT54) Request fr Qutatin (PT38) Tender Open belw OJEU - N PQQ (PT66) Fr Detailed Instructins see The Interactive Prcurement Tlkit. Prcurement abve 20k must use the Cuncil s electrnic tender prcess (In-Tend) Tender Open OJEU (PT39) Pre Qualificatin (PQQ) & Selectin Questinnaire (PT17) Tender Restricted OJEU (PT46)
Prcurement Planning Start planning prcurements early there are ptentially significant financial cnsequences f nt cmplying with the Public Cntracts Regulatins 2015 (PCR 2015). Obtain benchmarking data and cnsider engaging with the market (PCR 2015 endrse this). Cnsider which rute t market and what prcess meets yur requirements. Identify, cnsider and take steps t mitigate risk. Invlve legal, prcurement and finance as early as pssible. Engage with OSC and Executive Cmmittees as apprpriate. Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Prcurement Cnsideratins & Cntract Management Cnsider: Prducing a Business Case fr the requirement; The ttal value f the Prcurement; If TUPE applies See interactive tlkit fr guidance see link belw r if it s High Value. Cntract Administratin Cntact Prcurement /Legal Teams if yu need help Managers must nt cmmit expenditure until they are certain that sufficient budgets have been apprved in cmpliance with the Cuncil s Cnstitutin (see belw fr link t Cnstitutin). It is imprtant t engage with yur Finance supprt at the earliest pprtunity t identify the csts and benefits f the prcurement and t cnfirm the relevant rute fr apprval f any subsequent expenditure. http://www.centralbedfrdshire.gv.uk/mdgv/ecsddisplay.aspx?name=cnstitutin&clean=1 Prject Start up Dcs Terms and Cnditins Awarding The Cntract Qutatin & Tender Date Calc PT69 Prject Start dc (PT57) Advert Expressin f Interest (PT22) Apprval t Incur Expenditure CBC Minr T&C s (PT18) CBC Majr T&C s (PT19) CBC Cnsultancy T&C s PT20 Cntracts Over 5,000 must be placed n the Cuncil s Cntracts Register. The prcurement/cmmissining cycle des nt end at rder placement. Cntract management is a key element. Yu shuld have a cpy f the cntract and regularly mnitr : KPI s Cntract Perfrmance Csts Outcmes & Benefits Systems fr mnitring Recrding Issues & Reslutins Managing payments Tracking Benefits Cntract Agreement (PT41) Cntract Signing (PT47) Savings Frm (PT56) Successful Letter nn OJEU (PT32) Unsuccessful Letter nn OJEU (PT31) Supplier Relatinship Management Annual efficiency and imprvement reviews must be undertaken which mnitr and reprt n prgress against the cntract. Reviews shuld lk at perfrmance, price, quality, delivery and any pssible efficiency savings by using these dcuments. Yu shuld als recrd the final utcme/perfrmance using Cntract Cmpletin frm PT62. Cntract Efficiency Review Letter (PT55) Cntract Cmpletin Reprt (PT62) Efficiency Mnitring frm (PT55) NEED MORE HELP? Fr further guidance see interactive prcurement tlkit http://intranet.centralbedfrdshire.gv.uk/directrates-service-areas/imprvement-crprateservices/prcurement/tlkit.aspx r cntact the Prcurement Team n: prcurement@centralbedfrdshire.gv.uk
Prcurement Prcess (1) Creatin f the prcurement pack includes the entire prcess prir t publicatin. Scpe f prcurement Dcumentatin includes: Standard Selectin Questinnaire (SSQ), Invitatin t Tender (ITT), scpe f wrk, timeframe, pricing, KPIs, Ts&Cs, quality questins, selectin criteria i.e. quality v price, scring methdlgy and ther relevant dcumentatin. Preparatin imprtance and timeframe. Managing the prcurement prcess frm publicatin and addressing clarificatins. Use f tender management system In-Tend. All threshld prcurements electrnic.
Prcurement Prcess (2) Evaluatin f submissins (quality v financial cnsideratins, evaluatin team members & training, e.g. stakehlders can include tenants and members). Award apprval required e.g. by Executive Cmmittee. Award accrding t the evaluatin utcme includes feedback n perfrmance. Handling and advising n challenges bth in frmal and frmal.
Decisin making The award f all cntracts must be prperly authrised in line with the Cnstitutin. Prper authrisatin will depend n the circumstances f the prcurement and the budget psitin. Officers at the Prcurement planning stage shuld establish the crrect authrisatin. Seek advice frm Legal, Prcurement and Finance Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Waivers Waivers frm CBC s prcurement rules are nt permissible fr cntracts valued abve the EU threshld. The regulatins prvide fr exceptins. Waivers frm CBC s prcurement rules will nly be cnsidered in a defined set f circumstances such as: genuinely n cmpetitin unfreseen emergency invlving immediate risk t persns prperty r a serius disruptin t Cuncil Services Extensin t existing cntract where changing supplier wuld cause disprprtinate technical difficulties, disecnmies f scale r significant disruptin t Cuncil services Starting planning prcurement late is NOT a grund fr a waiver. Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Statistical Infrmatin (1) Prcurement Perfrmance Metrics Extract frm the MiH Screcard (Oct 17) Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Statistical Infrmatin (2) 2016/17 Prcurement Prjects Undertaken by Directrate, Value and Number Directrate Value Number Chief Executive's Team 799,321 5 Children's Services 4,125,624 2 Cmmunity Services 6,175,213 54 Public Health 54,297 2 Regeneratin 6,507,854 16 Resurces 270,750 4 Scial Care, Health & Husing 47,585,157 25 Grand Ttal 65,518,216 108 (Figs include Hub Prjects, value is ttal cntract value) Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
Transparency Required t publish statistics n payments t cntractrs: - the percentage f cntractrs paid within 30 days and interest payable n late payments. Mandatry publicatins Spend abve 500 High level details f invitatin t tenders and cntracts abve 5k. Fr example, cntractr, price and duratin f cntract. Discretinary publicatins Entire cntracts abve 5k, invitatin t tenders abve 500 and advertise cntracts abve 10k, spend abve 250 Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk
The imprtance f cmpliance Mitigate cmmercial and legal risk. Awarding a cntract utside the Prcurement Rules wuld be unauthrised and may mean the cntract is vid, result in large fines being paid by CBC as well as having t pay damages t cntractrs wh have suffered lss. Cntract dcuments and assciated dcuments are subject t audit r freedm f infrmatin requests. Use f the Cuncil s Prcurement Pipeline enables the Cuncil t prperly plan resurces and cnsider pprtunities acrss the Cuncil. Achieve cnsistency acrss the Cuncil. Central Bedfrdshire Cuncil www.centralbedfrdshire.gv.uk