G7 - Contract Procedure Rules

1. Background

1.1 These Contract Procedure Rules (Rules) set out the rules that apply to all officers, Members and agents acting for and on behalf of the Council, involved in procurement and contract management for and on behalf of the Council and are established in compliance with S135 of the Local Government Act (1972) and S1-29 of Local Government Act (1999). The Rules must be read in conjunction with relevant laws, regulations and policies/procedures including Chapter G6 (Scheme of Financial Management), Chapter G2 (Scheme of Delegation to Officers), English law, the Procurement Guide and the Provider Section Regime (PSR) Guide.

1.2 Officers involved in procurement and contract management activities and making procurement/contract management decisions must be fully aware of and comply with the Rules as they form part of the Council’s Constitution.

1.3 All procurements and contracts must realise value for money through the optimum combination of whole life costs and quality of outcome.

1.4 The Rules seek to protect the Council’s reputation by minimising the risk of allegations of corruption, dishonesty and failure to meet legal obligations. As these Rules are required by law, failure to comply with them could lead to disciplinary action. If in doubt and/or if advice on compliance with legislative requirements is required, this may be obtained from Pathfinder Legal Services and/or the Procurement and Commercial Team.

1.5 The Procurement Guide and the PSR Guide are invaluable sources of operational guidance to support any procurement activity and the correct application of these rules. The Guides can be found on the Council’s intranet page.

1.6 Should a conflict be found between these Rules, the law and the Procurement/PSR Guides, the order of precedence shall be the law, the Rules and then the Guides.

1.7 The Rules apply to contracts or agreements with external organisations where the Council pays for:

• Goods and/or services
• Works of any kind
• Hire, rental or lease of equipment, material and/or plant.

1.8 In order to apply these Rules, it is necessary to estimate the value of the contract. Further guidance is available in the Procurement Guide but in summary, the estimate must include all proposed expenditure under the contract over its maximum term including any extension periods. All thresholds referred to in these Rules are inclusive of VAT. Where the estimated value cannot be determined, the procurement must be managed as though it was over the relevant UK Procurement Threshold. Requirements should not be split to avoid thresholds in these Rules.

1.9 The Monitoring Officer in consultation with the Head of Procurement and Commercial shall have the power to make incidental amendments from time to time to the Rules, for example when updates are required from changes to legislation, job titles and roles.

1.10 Members have a key role in providing oversight to the Rules set out below, in making key decisions on major projects, considering the risks and ensuring that the Council takes best advantage of public procurement rules. Full details of the role that Members play in procurement activity can be found in the LGA’s A Councillor’s Guide to Procurement, 2019 edition (local.gov.uk).

1.11 In the case of a breach to these Rules, the Responsible Officer must make an immediate report to the Head of Procurement and Commercial detailing the nature of the breach and any management action taken to address the issues arising from the breach. The Head of Procurement and Commercial will maintain a record of all such breaches which will be reported to the relevant Committee periodically.

2. Governing Legislation

2.1 The Council’s procurements, apart from those for health care services, are regulated by the Procurement Act (2023) and the Procurement Regulations (2024).

2.2 Procurement of health care services is regulated by the Provider Selection Regime.

2.3 There is a raft of other legislation, such as the Social Value Act 2012 and the Transparency Code 2015, which also impacts on procurement and it is important that officers are aware of the wider legislative framework.

2.4 Where a procurement was started under the Public Contract Regulations (2015) or the Provider Selection Regime, governance for that procurement or contract continues to be those Regulations rather than the Procurement Act (2023). In the case of procurements/contracts started under the Public Contract Regulations (2015) they are governed by those Regulations until either:

• The end of the contract in question.
• For a framework/DPS, the end of the last call off contract.

3. Objectives

3.1 The Procurement Act (2023) sets out a series of objectives which procurements must have regard to, they are:

• Delivering value for money
• Maximising public benefit
• Sharing information for the purposes of allowing suppliers and others to understand the Council’s policies and decisions.
• Acting, and being seen to act, with integrity.

3.2 Procurements must also have regard to the National Procurement Policy Statement which sets out national priorities for procurement:

• Driving economic growth
• Delivering social and economic value
• Building commercial capability to deliver value for money and stronger outcomes

3.3 It is important that procurements support the delivery of the Council’s ambitions.

4. Exempted Contracts

4.1 Procurements or contracts for the areas listed below are exempt from the application of these Rules:

(i) The acquisition of land or buildings.

(ii) The acquisition, development, production or co-production of material intended for broadcast and a contract for the broadcast to the public of material.

(iii) A contract to facilitate the provision of an electronic communications service or network.

(iv) A contract for the provision of arbitration, mediation or conciliation services.

(v) A contract for any of the following exempt legal services:

• • Legal representation by a lawyer in judicial proceedings or other dispute resolution proceedings.
  • Giving of advice by a lawyer in connection with any such proceedings.
  • Document certification or authorisation services provided by a notary in circumstances where the certification or authorisation is required under an enactment or other law to be performed by a notary.
  • Legal services provided by a person required to provide them under an enactment or an order of court or tribunal.

(vi) A contract for the lending of money or for carrying out of investment services by an investment firm or a qualifying credit institution.

(vii) A contract of employment.

(viii) A contract required in accordance with the public service obligations regulations for public passenger transport services.

(ix) A contract for the provision of research and development services where the services are intended to be for the benefit of the public and the contract does not also provide for the provision of goods or works.

(x) Expenditure incurred directly as a result of an insurer led arrangement.

(xi) When procuring as part of a joint procurement where another Contracting Authority is acting as the procurement lead. The Responsible Officer must satisfy themselves that the procurement complies with all applicable laws. The Lead Authority’s roles will take precedence.

(xii) Any award of grants of money but such awards must be made in accordance with the Council’s Grants to External Organisations Policy and the Constitution. Prior advice should be sought from Pathfinder Legal Services in relation to the governance process for the award of grants and the legal documentation to be used.

(xiii) Membership/Subscriptions (not applicable to software licensing) where the Council makes an arrangement to receive goods or services regularly by paying in advance and competition is absent for technical reasons.

(xiv) Any contract between the Council and an entity controlled by the Council where more than 80% of the activities are carried out on behalf of the Council.

(xv) Any contract between the Council and another Contracting Authority where the contract has the aim of achieving public function related objectives and is solely in the public interest.

5. Responsibilities

The Role of the Responsible Officer

5.1 The Responsible Officer will be the officer named in the Procurement Plan or by the director responsible for the budget or, in the absence of the above, the officer responsible for the budget that the expenditure is being made against subject to the delegated authority being adequate. Supporting information about the role of the Responsible Officer may be found in the Procurement Guide.

5.2 Responsible Officers are individually responsible for ensuring they fully understand and comply with all aspects of the Rules, failure to do so may result in disciplinary action.

5.3 Responsible Officers must check whether a suitable corporate contract or other publicly available contract/framework agreement is available before seeking to procure another contract.

5.4 Responsible Officers must ensure they have the correct authorisation to procure and award the contract before proceeding.

5.5 Responsible Officers must add any contract valued at or over £5,000 to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015.

5.6 Responsible Officers must ensure that the contracts for which they are responsible are effectively managed and monitored to ensure they deliver the requirement as intended and to address any performance issues as soon as possible.

5.7 Responsible Officers must keep a record of decisions made in connection with the procurement, this should include minutes from any meetings held.

5.8 Responsible Officers must consider whether the procurement constitutes a key decision. If so, they must seek approval from the relevant committee before commencing the procurement. Advice must be sought from Democratic Services if there is any uncertainty.

5.9 Responsible Officers must ensure that a copy of the signed or sealed contract is forwarded to the Procurement and Commercial Team where the contract is valued over £100,000.

5.10 Responsible Officers are reminded that they must, at all times, act in accordance with Council policies, including Chapter G3 (Officers’ Code of Conduct), which are enforceable through disciplinary procedures.

The Role of the Chief Officer

5.11 Chief Officers must ensure that they and their officers comply with these Rules at all times.

5.12 Chief Officers must ensure that value for money is achieved in all procurements.

6. Conflicts of Interest

6.1 Officers must take all reasonable steps to identify and keep under review any conflicts of interest or potential conflicts of interest.

6.2 Any person who influences a decision must be included in the conflict of interest review.

6.3 Officers must take all reasonable steps to ensure that a conflict of interest does not put a supplier at an unfair advantage or disadvantage. If the officer deems that the advantage or disadvantage cannot be avoided, they should contact the Procurement and Commercial Team before progressing further with the procurement. This obligation starts when the need for the procurement is first identified and continues until the termination of the contract.

6.4 Where the procurement is valued over £100,000, a conflicts assessment must be prepared by the Responsible Officer in conjunction with the Procurement and Commercial Team before the procurement is published. This should include details of all conflicts or potential conflicts of interest and any steps that the Council has taken or will take to mitigate that conflict of interest. This may include any steps taken to demonstrate that there is no conflict of interest where one might be perceived.

6.5 This conflicts assessment must be kept under review and revised as necessary during the procurement and contract term.

6.6 Any officer or Member who fails to declare a conflict of interest may be subject to disciplinary proceedings and risks being prosecuted under the Bribery Act 2010.

6.7 Officers and Members involved in a procurement will, at all times, act in a way that is consistent with Chapter F2 (Members’ Code of Conduct) and Chapter G3 (Officers’ Code of Conduct).

7. Risk Management

7.1 Officers must create a robust risk assessment as part of the procurement planning process for all contracts valued over £100,000 in conjunction with the Procurement and Commercial Team.

7.2 This risk assessment must be reviewed and updated regularly during the procurement process and through the contract term.

7.3 Where key risks are identified which may lead to a contract modification, those risks must be stated clearly in the tender notice and in relevant procurement documentation.

8. Market Engagement

8.1 Market engagement is permitted for the purposes of:

• Developing the Council’s requirements and approach to the procurement.
• Designing a procedure, conditions of participation or award criteria.
• Preparing the tender notice and associated tender documents.
• Identifying suppliers that may be able to supply the requirement (understanding the market).
• Identifying likely contractual terms.
• Building capacity amongst suppliers in relation to the contract.

8.2 Market engagement must not have the effect that suppliers participating are put at an unfair advantage or that competition is otherwise distorted. If an officer deems that a supplier has been put at an unfair advantage, they must contact the Procurement and Commercial Team or Pathfinder Legal Services before progressing further with the procurement.

8.3 If the procurement is valued over the relevant UK procurement threshold, a preliminary market engagement notice must be published on the government’s Find a Tender service.

9. Concession (Income Generating Contracts)

9.1 The Responsible Officer must seek legal, financial and procurement advice for any contracts which will generate income for the Council, including to determine if the Procurement Act (2023) will apply.

10. Provider Selection Regime

10.1 The Provider Selection Regime (PSR) applies to the procurement of health care services as defined in Section 275 (1) of the National Health Service Act (2006). For a more detailed definition please refer to the PSR Guide. For the avoidance of doubt, mixed procurements:

• Where health care services are the main subject matter of the contract and the Council is of the view that the other goods and services could not reasonably be supplied under a separate contract, and
• The estimated lifetime value of the health care services is higher than the value of the other components of the contract that are in scope of the PSR.

10.2 When procuring health care services, sections 14-19 of these Rules do not apply. For the avoidance of doubt, there is no threshold for the application of the PSR, it applies to contracts of any value.

10.3 The PSR provides for five (5) decision making processes which are summarised below, Responsible Officers should refer to the PSR Guide when making a decision about which process to follow and should seek the advice of the Procurement and Commercial Team.

10.4 Direct Award Process A must be used when all the following apply:

• There is an existing provider of the health care services to which the proposed contracting arrangements relate, and
• The Responsible Officer is satisfied that the health care services to which the proposed contracting arrangements relate are capable of being provided only by the existing provider (or group of providers) due to the nature of the health care services.

This process must not be used to conclude a framework agreement.

10.5 Direct Award Process B must be used when all the following apply:

• The proposed contracting arrangements relate to health care services in respect of a which a patient is offered a choice of provider, and
• The number of providers is not restricted by the Council, and
• The Council will offer contracts to all providers to whom an award can be made because they meet all the requirements in relation to the provision of the health care services to the patients, and
• The Council has arrangements in place to enable providers to express an interest in providing the health care services.

This process must not be used to conclude a framework agreement.

10.6 Direct Award Process C may be used when all the following apply:

• Council is not required to use Direct Award Processes A or B, and
• The term of the existing contract is due to expire and the Council proposes a new contract to replace that existing contract at the end of its term; and
• The proposed contracting arrangements are not changing considerably and the Council is of the view that the existing provider (or group of providers) is satisfying the existing contract and will likely satisfy the proposed contract to a sufficient standard.

This process must not be used to conclude a framework agreement.

10.7 The Most Suitable Provider process may be used when all the following apply:

• The Council is not required to use Direct Award Processes A or B, and
• The Council cannot or does not wish to use Direct Award Process C, and
• The Council is of the view, taking into account likely providers and all relevant information available at the time, that it is likely to be able to identify the most suitable provider without running a competitive process.

This process must not be used to conclude a framework agreement.

10.8 The Competitive Process must be used when the following apply:

• The Council is not required to follow Direct Award Processes A or B, and
• The Council cannot or does not wish to follow Direct Award Process C and cannot or does not wish to follow the Most Suitable Provider process.

This process must be used if the Council wishes to conclude a framework agreement.

10.9 When Direct Award Process C, the Most Suitable Provider process or the Competitive Process is used, the following key criteria must all be used to evaluate the options:

• Quality and innovation
• Value
• Integration, collaboration and service sustainability
• Improving access, reducing health inequalities and facilitating patient choice
• Social value

10.10 When following Direct Award Process C, the Most Suitable Provider process or the Competitive Process, a standstill period of eight (8) working days must be observed. If a representation is received during the standstill period, the Council will undertake an internal review in compliance with the PSR to determine the merits of the representation.

10.11 Responsible Officers must keep clear records detailing their decision making processes and rationale. This must be done for all processes. Decision Record Templates are available in the PSR Guide and must be used in all cases.

10.12 The Council must monitor its compliance with the PSR and publish an annual monitoring report.

10.13 Modifications to existing contracts (including those procured under Public Contract Regulations 2015) must comply with the PSR. Modifications which make an existing contract or framework materially different in character are not permitted under the PSR and would require a new PSR process to be undertaken. Further information on contract modifications is available in the PSR Guide.

10.14 The PSR does not apply where the Council is delegating its functions to an NHS body under a section 75 agreement. Where the Council is collaborating with an NHS body under a section 75 agreement and then jointly commissioning services, these services must be arranged using the PSR.

10.15 In urgent situations, the Council may make the following decisions without following the PSR:

• Re-award contracts to existing providers
• Award contracts for new services
• Award contracts for considerably changed services
• Make contract modifications

However, in making these decisions the following rules apply:

• The length of the contract must be set for only as long as is strictly necessary to address the urgent situation and a full award process must be conducted as soon as possible. If the term of the contract is longer than twelve (12) months, a record must be made justifying the position.
• Records must be kept of the justifications for the urgency decision made.
• An Urgent Award or an Urgent Modification Notice must be published within thirty (30) days.

11. Light Touch Contracts

11.1 Light Touch contracts cover certain social, health, education or other public services provided directly to individuals or groups of individuals and therefore warrant special treatment and greater flexibility. The threshold for Light Touch contracts is set out in Appendix 2, contracts with a value below that threshold are subject to the remainder of these Rules.

11.2 This Section 11 sets out the differences between the procurement of Light Touch contracts and the procurement of other requirements. Where a difference is not detailed, the remainder of these Rules apply.

11.3 Responsible Officers should contact the Procurement and Commercial Team for advice if they consider their contract may be a Light Touch Contract.

11.4 For a contract of any value, where the Council is legally required to have regard to the views of the individual or a person providing their care in relation to who should supply the services, and that person has expressed a preference as to who should supply the services, a Direct Award may be made. Where such a Direct Award is made, the service area must keep appropriate records in line with their Delegated Authority.

11.5 For Reservable Light Touch Contracts, the advice of the Procurement and Commercial Team should be sought on which are reservable/may be reserved for qualifying Public Service Mutuals providing that the contract is for no longer than five (5) years.

11.6 Light Touch procurements are not subject to the mandated tendering periods defined in the Procurement Act (2023) but tendering periods must be reasonable.

11.7 A standstill period is not mandated for Light Touch contracts although Responsible Officers are encouraged to plan for the inclusion of a standstill period to reduce the risk of challenge.

11.8 Where a framework is established for light touch contracts, there are greater flexibilities than those set out in section 12 below. Please seek further advice from the Procurement and Commercial Team.

11.9 There is no requirement to publish KPIs for Light Touch contracts valued over £5m.

11.10 Light Touch contracts may be modified more widely than other contracts and there is no requirement to publish a contract change notice following such modifications.

11.11 The Notices required for Light Touch contracts and their publication timelines differ from other contracts, advice should be sought from the Procurement and Commercial Team on this matter.

12. Using Frameworks

12.1 The Responsible Officer must ensure that there is no existing Council contract, framework, DPS or Dynamic Market available before undertaking an alternative procurement.

12.2 A contract of any value can be procured through a framework, if the proposed contract value is over £100,000, the Procurement and Commercial Team must be consulted before the procurement is started.

12.3 A framework is considered a compliant procurement route when:

• It has been entered into by the Council in compliance with these Rules, or
• Another contracting authority, purchasing consortium or central government has tendered the framework in compliance with national procurement law and the Council is named as a potential user of the arrangement.

12.4 Where frameworks offer a further competition process, this should be used rather than a Direct Award. Where a Responsible Officer wishes to use a Direct Award, they must first seek approval from a senior member of the Procurement and Commercial team.

12.5 The Responsible Officer must carry out due diligence checks at contract award to evidence fulfilment of any conditions of participation and that there are no grounds for exclusion.

12.6 Approval to procure and award must be sought in compliance with the Delegated Authorities Matrix at Appendix 3.

12.7 The contract must be signed or sealed in accordance with the Delegated Authorities Matrix at Appendix 3. If the contract is valued over £100,000, a signed PDF copy must be sent to the Procurement and Commercial Team.

12.8 Where a contract is valued over £30,000, a Contract Award Notice must be published on the government’s Find a Tender service.

12.9 If the procurement is valued over the relevant UK Procurement Threshold, assessment summaries must be produced and issued to all bidders and a standstill period of eight (8) working days must be observed. A Contract Details Notice must be published within thirty (30) days of the contract being entered into.

12.10 Where the contract is valued over £5m, a redacted copy of the contract must be published within ninety (90) days.

12.11 Where the Council is using an external framework and the total value of the contract is £5,000 or over, the Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015. This must be done before raising a PO.

13. Using Dynamic Markets

13.1 The Responsible Officer must ensure that there is no existing Council contract, framework, DPS or Dynamic Market available before undertaking an alternative procurement.

13.2 Only procurements valued over the relevant UK Procurement Threshold may be procured via a Dynamic Market.

13.3 A Dynamic Market is considered a compliant procurement route when:

• It has been entered into by the Council in compliance with these Rules, or
• Another contracting authority, purchasing consortium or central government has tendered the Dynamic Market in compliance with national procurement law and the Council is named as a potential user of the arrangement.

13.4 Dynamic Markets may only be used via a Competitive Flexible Procedure, for the avoidance of doubt there is no possibility of making a Direct Award from a Dynamic Market.

13.5 Responsible Officers should seek advice and support from the Procurement and Commercial Team whenever they wish to either establish or use a Dynamic Market.

13.6 Approval to procure and award must be sought in compliance with the Delegated Authorities Matrix at Appendix 3.

13.7 The contract must be signed or sealed in accordance with the Delegated Authorities Matrix at Appendix 3. A signed PDF copy must be sent to the Procurement and Commercial Team.

13.8 Existing Dynamic Purchasing Systems, established under Public Contract Regulations (2015) may still be used providing they remain operational. Contracts procured via existing Dynamic Purchasing Systems must be managed in accordance with Public Contract Regulations (2015).

13.9 Where the Council is using an external Dynamic Market, the Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015. This must be done before raising a PO.

14. Procurements with a Value under £5,000

14.1 Obtaining value for money is the primary objective of all procurements, however multiple quotations at this value are not essential.

14.2 The Responsible Officer must first ensure there is no existing Council contract, framework, or Dynamic Purchasing System before procuring the requirement.

14.3 The Responsible Officer must raise a Purchase Order. The terms of this Purchase Order should suffice for a contract, unless the officer believes the complexity of the requirement requires more bespoke terms to be obtained from Pathfinder Legal Services. The Purchase Order must clearly state what the Council requires from the supplier.

15. Procurements with a Value between £5,000 and £29,999

15.1 The Responsible Officer must first ensure there is no existing Council contract, framework or Dynamic Purchasing System before procuring the requirement.

15.2 The Responsible Officer must seek a minimum of three (3) comparable written quotations, wherever possible at least two (2) of the quotations must be from a local supplier.

15.3 The written quotations must include the following information as a minimum:

• Details of the goods, services or works to be supplied;
• Where and when delivery is to take place;
• The total value of the contract; and
• The terms and conditions to apply including the price and payment terms.

15.4 Quotations may be submitted by letter, email or via the Council’s e tendering system.

15.5 Approval to procure and award must be sought in compliance with the Delegated Authorities Matrix at Appendix 3.

15.6 The Responsible Officer must raise a Purchase Order. The terms of this Purchase Order should suffice for a contract, unless the officer believes the complexity of the requirement requires more bespoke terms to be obtained from Pathfinder Legal Services. The Purchase Order must include the information provided by the supplier as detailed in section 15.3 above.

15.7 The Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Transparency Code 2015. This must be done before raising a PO.

16. Procurements valued between £30,000 and £100,000

16.1 The Responsible Officer must first ensure there is no existing Council contract, framework or Dynamic Purchasing System before procuring the requirement.

16.2 Approval to procure and award a contract must be sought in compliance with the Delegated Authorities Matrix at Appendix 3.

16.3 Using the Council’s e procurement system, the Responsible Officer must publish a below threshold tender notice on the Central Digital Platform as a means of inviting quotations.

16.4 The Council has a duty to have regard to the fact that SMEs may face particular barriers in competing for a contract and consider whether such barriers can be removed or reduced, before commencing the procurement.

16.5 The Responsible Officer must use the template Request for Quotation Documents available on the procurement pages of the Intranet unless otherwise agreed by the Procurement and Commercial Team.

16.6 The use of social value criteria in the evaluation methodology should be considered in discussion with the Procurement and Commercial Team if necessary.

16.7 All bidders must be notified of the award decision simultaneously via the e tendering system. If an unsuccessful bidder makes a written request to the Council for a further debrief, the Responsible Officer must provide appropriate feedback within fifteen (15) calendar days of receipt of the written request. The confidentiality of the quotes received and the identity of other bidders must be preserved at all times and information about one bidder’s response must not be disclosed to other bidders. The Responsible Officer should not provide verbal feedback to an unsuccessful bidder.

16.8 Using the Council’s e tendering system, the Responsible Officer must publish a Contract Details Notice as soon as reasonably practical after contract award.

16.9 The Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015.

16.10 The Responsible Officer must raise a purchase order and ensure the Council’s standard terms and conditions (located on the procurement pages of the intranet) are used unless the Responsible Officer believes that the complexity of the procurement requires the amendment of those terms by Pathfinder Legal Services.

16.11 Relevant documentation from the procurement process, particularly the quotations received, evaluation process, communications with bidders and the signed contract must be retained by the service.

17. Procurements valued over £100,000 but below the relevant UK Procurement Threshold

17.1 The Responsible Officer must first ensure there is no existing Council contract, framework or Dynamic Purchasing System before procuring the requirement.

17.2 The Responsible Officer must consult with the Procurement and Commercial Team and Pathfinder Legal Services before commencing the procurement or conducting any form of market engagement.

17.3 Approval for the procurement and the award of a contract must be sought in compliance with Delegated Approvals Matrix at Appendix 3. Alongside this, a Procurement Plan will be developed by the Responsible Officer in consultation with the Procurement and Commercial Team, a Chief Officer must approve this Plan before the procurement can be published.

17.4 An open tender process must be followed, for the avoidance of doubt it is not possible to restrict the submission of tenders by reference to an assessment of suppliers’ suitability to perform the contract.

17.5 The Council must have regard to the fact that small and medium sized enterprises may face particular barriers in competing for a contract and consider whether such barriers can be removed or reduced.

17.6 The Responsible Officer should consider the inclusion of social value criteria in the evaluation methodology in discussion with the Procurement and Commercial Team.

17.6 All relevant procurement documentation, including evaluation criteria, will be developed by the Responsible Officer in consultation with the Procurement and Commercial Team.

17.7 A Below Threshold Tender Notice must be published on the government’s Find a Tender service via the Council’s e tendering system.

17.8 Tenders must be evaluated according to the advertised evaluation criteria, clarification questions may be asked of bidders providing the response would not have the effect of materially changing the tender received.

17.9 The bidder with the highest evaluation score will normally be awarded the contract, if this is not the case further advice must be sought from the Procurement and Commercial Team and Pathfinder Legal Services.

17.10 An award report will be prepared by the Procurement and Commercial Team and must be approved in accordance with the Delegated Authorities Matrix in Appendix 3 before the award can take place.

17.11 All bidders must be notified of the award decision simultaneously via the Council’s e tendering system whether or not their tender was successful, the Procurement and Commercial Team will prepare the relevant letters.

17.12 The contract must be signed by both parties before contract delivery starts, this may be done using the Council’s e sign tool unless the contract requires sealing. The Responsible Officer must ensure that the Procurement and Commercial Team is in receipt of a copy of the fully signed contract.

17.13 As soon as is reasonably practicable after entering into the contract, a Contract Details Notice must be published on the government’s Find a Tender service via the Council’s e tendering system.

17.14 The Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015 before raising a PO.

17.15 Relevant documentation from the procurement process, particularly the tenders received and the evaluation process, must be retained by the Responsible Officer in compliance with the Council’s Retention Policy.

18. Procurements valued over the relevant UK procurement threshold

18.1 The Responsible Officer must first ensure there is no existing Council contract, framework, Dynamic Market or Dynamic Purchasing System available before procuring the requirement.

18.2 The Responsible Officer must consult with the Procurement and Commercial Team and Pathfinder Legal Services before commencing the procurement.

18.3 Approval for the procurement and the award of a contract must be sought in compliance with Delegated Approvals Matrix at Appendix 3. Alongside this, a Procurement Plan will be developed by the Responsible Officer in consultation with the Procurement and Commercial Team, this Procurement Plan must consider the application of Lots. A Chief Officer must approve this Plan before the procurement can be published.

18.4 The Responsible Officer should consider the inclusion of social value criteria in the evaluation methodology in discussion with the Procurement and Commercial Team.

18.5 The Procurement and Commercial Team will provide advice to the Responsible Officer as to the most appropriate procurement process to use.

18.6 Where preliminary market engagement is used to inform the procurement process, a Preliminary Market Engagement Notice must be published on the government’s Find a Tender service via the Council’s e tendering system.

18.7 All relevant procurement documentation, including details of the evaluation criteria, will be developed by the Responsible Officer in consultation with the Procurement and Commercial Team.

18.8 A Tender Notice must be published on the government’s Find a Tender Service via the Council’s e tendering system with associated tender documents.

18.9 Tenders must be evaluated according to the published evaluation criteria. Clarification questions may be asked of bidders as long as the response would not have the effect of materially changing the tender received.

18.10 The bidder with the highest evaluation score will normally be awarded the contract, if this is not the case further advice must be sought from the Procurement and Commercial Team and Pathfinder Legal Services.

18.11 An award report will be prepared by the Procurement and Commercial Team and must be approved in accordance with the Delegated Authorities Matrix in Appendix 3 before the award can take place.

18.12 All bidders must be notified of the award decision simultaneously via the Council’s e tendering system whether or not their tender was successful, the Procurement and Commercial Team will prepare the relevant assessment summaries. Once assessment summaries have been sent to bidders a Contract Award Notice must be published on the government’s Find a Tender Service via the Council’s e tendering system.

18.13 The publication of the Contract Award Notice starts the mandatory eight (8) working days standstill period. If, during the standstill period, a challenge or request for feedback is received from an unsuccessful bidder, the standstill period must be paused until the matter is successfully resolved. No contract award can take place in the intervening period. The officer in receipt of this communication must contact the Procurement and Commercial Team and Pathfinder Legal Services for advice before any response is made.

18.14 A Contract Details Notice must be published on the government’s Find a Tender Service via the Council’s e tendering system within thirty (30) days of the contract being entered into. Where the value of the contract is more than £5m, a redacted copy of the contract must be published within ninety (90) days of the contract being entered into and the Notice must contain details of the KPIs (at least three (3)) that will be used to monitor the contract.

18.15 The contract must be signed by both parties before contract delivery starts, this may be done using the Council’s e sign tool unless the contract requires sealing. The Responsible Officer must ensure that the Procurement and Commercial Team is in receipt of a copy of the fully signed contract.

18.16 The Responsible Officer must add the contract to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015 before raising a PO.

18.17 Relevant documentation from the procurement process, particularly the tenders received and the evaluation process, must be retained by the Responsible Officer in compliance with the Council’s Retention Policy.

19. Tender Evaluation

19.1 Tenders received after the fixed closing date and time or tenders which are not submitted in accordance with these Rules and any criteria set out in the procurement documentation will be disqualified unless otherwise agreed by the Monitoring Officer.

19.2 If there is an obvious ambiguity or error in the tender and that ambiguity or error appears to have a simple explanation, bidders may be invited to correct their tender. Advice should be sought from the Procurement and Commercial Team before further action is taken.

19.3 Bidders may seek clarifications throughout the procurement process, such clarification requests must be recorded in writing and where the response may be of value to potential bidders, the anonymised response must be circulated to all those potential bidders. Under no circumstances can clarification processes be used as an opportunity to conduct negotiations.

19.4 Evaluation must be conducted in accordance with the published criteria and where the contract is valued above £100,000 must involve individual evaluation followed by moderation to reach an agreed tender score.

19.5 The Procurement Act 2023 places an obligation on the Council to notify a bidder if it considers a price to be abnormally low and give the bidder reasonable opportunity to demonstrate that it will be able to perform the contract for the price offered. If the bidder is unable to demonstrate that, its tender may be disregarded, advice should be sought from the Procurement and Commercial Team and Pathfinder Legal Services before taking this action.

20. Contract Award

20.1 Any contract award must be approved in accordance with the Delegated Authorities Matrix available in Appendix 3.

20.2 Contracts must be signed or sealed in accordance with the Delegated Authorities Matrix available in Appendix 3. The use of e sign is an acceptable method of contract signature. Responsible Officers must ensure that a copy of the signed contract is sent to the Procurement and Commercial Team.

20.3 Where a bond or guarantee is required to ensure satisfactory contract performance and/or to protect the Council, the requirement must be notified to bidders in the procurement documentation and must be in place no later than four (4) weeks after contract signature.

20.4 The Responsible Officer should consult their Chief Officer and Pathfinder Legal Services as to whether such a bond or guarantee is required where:

• The total value of the contract exceeds £500,000; or
• It is proposed to make stage or other payments in advance of receiving the whole of the subject matter of the contract; or
• There is concern about the stability of the supplier no matter what the value.

The Council must never give a bond or guarantee.

20.4 All contracts valued over £5,000 must be added to the Council’s Contract Register by the Responsible Officer.

20.5 The Officer named in the Contract Register will act as the Contract Manager and will be responsible for ensuring the obligations of these Rules and any relevant legislation are fulfilled. Further guidance is available in the Procurement Guide and the Contract Management Toolkit.

21. Contract Modifications

21.1 Legal advice must be sought before assignments or novations are entered into.

21.2 Contracts may be extended where:

• There is provision in the original contract for such an extension (Contract Managers should familiarise themselves with any notification period that exists to terminate contract at its expiry date); and
• There is budgetary provision; and
• Value for money can be clearly demonstrated;

For the avoidance of doubt, extensions are not permitted where they are not provided for in the original contract.

21.3 Where a contract extension would take the value of the contract over the relevant UK Procurement Threshold, advice must be sought from the Procurement and Commercial Team, before any action is taken.

21.4 If the contract is valued over the relevant UK Procurement Threshold, advice from the Procurement and Commercial Team and Pathfinder Legal Services should be sought before a substantial modification is made. A substantial modification is one which would:

• Increase or decrease the term of the contract by more than 10% of the maximum term provided for, or
• Materially change the scope of the contract, or
• Materially change the economic value of the contract in favour of the supplier.

21.5 Before modifying a contract valued over the relevant UK procurement threshold or when a modification takes the value over the relevant UK procurement threshold, the Contract Manager must publish a Contract Change Notice on the government’s Find a Tender Service via the Council’s e tendering system, except where:

• The modification increases or decreases the estimated value of the contract in the case of goods/services by less than 10% or in the case of works by less than 15%, or
• The modification increases or decreases the term of the contract by less than 10%.

21.6 If the value of the contract is over £5m a redacted copy of the modified contract must be published via an updated Contract Details Notice on the government’s Find a Tender Service via the Council’s e tendering system.

22. Contract Performance

22.1 The Contract Manager must monitor the overall performance of the contract in line with the specification, agreed service levels and contract terms.

22.2 If the value of the contract is over £5m, at least once every twelve (12) months during the term of the contract and on termination of the contract, the Contract Manager must assess performance using the government’s standard rating system against the published KPIs and publish a Contract Performance Notice on the government’s Find a Tender Service via the Council’s e tendering system.

22.3 If the supplier has breached the contract and the breach results in:

• Termination (or partial termination of the contract),
• The award of damages, or
• A settlement agreement between the supplier and the Council

a Contract Performance Notice must be published within thirty (30) days of the relevant breach on the government’s Find a Tender Service via the Council’s e tendering system.

22.4 Whether a contract expires or is terminated, the Contract Manager must publish a Contract Termination notice within thirty (30) days of that expiry/termination.

23. Exceptions to these Rules

23.1 These Rules apply to every procurement carried out by or on behalf of the Council, except for those listed in section 23.8 below.

23.2 Exceptions will only be valid if the Council’s online waiver system is used and appropriate approval has been sought and gained prior to the contract start date. Waivers should be sought as early as possible to ensure there is time to run a procurement process should the waiver be rejected. Late waivers are subject to additional scrutiny and those responsible for submitting repeat late waivers will be asked to take part in additional training.

23.3 Retrospective waivers are only permitted where:

• It has been necessary to act urgently because of an unforeseen emergency which involves immediate risk of injury or damage or to prevent serious disruption to services.
• It is necessary for the Responsible Officer in either adults or children’s social care to act immediately to secure care for a vulnerable person.

In any case, waivers should be sought as early as possible to ensure that there is time to process the waiver and take alternative action should it be rejected.

23.4 Exception requests (waivers) cannot be sought for requirements equal to or above Council’s Key Decision Threshold nor can they be granted if the contract value is over the relevant UK procurement threshold or for PSR requirements. Should a waiver valued over the relevant UK procurement threshold be required, legal advice should be sought as to the applicability of section 41 of the Procurement Act (2023). Committee approval will be required for these above threshold exceptions.

23.5 In instances where a repeat waiver is requested, the value of the exception must be added to the value of any and all previous exceptions and the appropriate rule applied.

23.6 Where the total value of the ensuing contract exceeds £5,000, it must be added to the Council’s Contract Register to ensure compliance with the Local Government Transparency Code 2015.

23.7 Where the total value of the ensuing contract exceeds £30,000, a Contract Details notice must be published on the government’s Find a Tender service via the Council’s e tendering system.

23.8 Valid exceptions are (please note the full waiver description, only waivers complying with the entire description can be approved):

(i) Genuine emergencies: critical preventative or remedial work where there is a real and imminent risk to the life and/or safety of people or property arising from hitherto unforeseen ‘catastrophic’ events or incidents. For example, flood, fire or pandemic.

(ii) Value for money: for proprietary or patented goods or services; or where the requirement is of such a specialist nature that it can genuinely only be fulfilled by one supplier; or the compatibility with existing goods or services is required and/or where those existing goods or services can only be sourced from the same supplier.

(iii) Urgent situations not of the Council’s own making: the urgency must have been reasonably unforeseeable (e.g. an existing supplier going out of business) and genuinely be a case of time is of the essence. Urgency arising from the Council’s own making (e.g. lack of planning) shall not justify an exception. Where this exception is used, a compliant procurement process must be implemented as soon as possible.

(iv) Process delays: where an existing contract is being re-procured and there are delays to that procurement process which means that the new contract cannot start at the expiry of the existing contract, an exception may be requested to extend the current contract to cover the gap. The delays must have been reasonably unforeseeable (e.g. extensions required to standstill) and the exception may be for no longer than six (6) months. Where the contract is valued over the UK Procurement Threshold, the extension may not be valued more than 10% of the original contract value.

(v) Grant allocations: where the Council has been allocated a grant and there has been no time to procure the supplier during the grant application process or because the grant conditions required spend of the grant in too short a time period. Evidence of the grant application process will be required in the exception application. If the spend of the grant is not required within a twelve (12) month period, the exception may not be used.

24. Exceptions for Care Placements

24.1 Adult social care placements and placements made for children in care or children and young people with an Education, Health and Care Plan (EHCP) are not subject to the Rules but are subject to the requirements set out below. Please note that where the placement’s main subject matter is health care, compliance with the PSR is required, refer to section 10.

24.2 Tier 1 Block Contracts: where a supplier is procured with guaranteed service levels and pre-agreed prices, the Council may refer users over the contract period. The Rules apply to the procurement of block contracts and Responsible Officers must endeavour to maximise the use of block contracts.

24.3 Tier 2 DPS/Dynamic Market/Framework: procured lists of providers with fixed or average rates to which the Councils can refer users over the contract period. The Rules apply to the procurement of all DPSs, Dynamic Markets and frameworks which must be utilised only when the block contracts are unable to meet the required needs.

24.4 Tier 3 spot purchased placements: non procured providers which can only be used when the required needs cannot be met by either a Tier 1 or Tier 2 provider. The relevant budget holder, or commissioning Head of Service, may award a spot contract if the following criteria are satisfied:

• The requirement is such that only one provider in a reasonable proximity can meet the individual’s needs; and
• The requirement is both complex and unique to the individual; and
• There is no accessible Tier 2 or Tier 2 contract available for the individual; and
• The requirement has been approved in writing by the relevant Head of Service.

Any spot purchase valued over £5,000 must be added to the Council’s Contract Register in compliance with the Local Government Transparency Code 2015 but data protection and confidentiality must be maintained.

Appendix 1 - Definitions

Appendix 2 - UK Procurement Thresholds

These thresholds are effective from 1st January 2024 and are inclusive of VAT.

Works threshold: £5,372,609

Services threshold: £214,904

Light Touch Regime threshold: £663,540

Concessions threshold: £5,372,609

Appendix 3 - Delegated Authorities Matrix

¹ Procurement Plans must be approved by the relevant Chief Officer.

² Procurements that are not valued over £500, 000 but still are related to Key Decisions need to be approved by the appropriate Committee. Start procurement means publish advert, documents may start to be prepared before approval is granted.

³ Approval to award of contracts valued over £100,000 will require an Award Report to be prepared by the Responsible Officer and the Procurement Officer.

⁴ Approval of orders (in ERP Gold) are subject to prior thresholds being authorised, e.g. over £500,000 a Committee Report must have been approved

⁵ Approval of orders (in ERP Gold) are subject to prior thresholds being authorised, e.g. over £500,000 a Committee Report must have been approved

⁶ Contracts can be signed up to £500,000 unless the Monitoring Officer requires them to be sealed. Contracts over £500,000 should be sealed by Pathfinder Legal Services.

[Chapter G7 (Contract Procedure Rules) was last amended on 24 February 2025]

A PDF version of this chapter is available to view or download on the CMIS section of the Council’s website, along with a PDF version of the full constitution.