How to do Business with West Sussex Councils A Guide for
How to do Business with West Sussex Councils A Guide for Suppliers and Service Providers Into Council Procurement Procedures How to do Business with West Sussex Councils Contents 1 Introduction 2 Council Service Responsibility 3 Understanding public Procurement 4 Local Government Procurement Procedures & Regulation 5 European Union Consolidated Procurement Directives 6 Tendering Tips 7 Using technology to aid the procurement process 8 Local Government Marketplace 9 EU Threshold Tendering Options 10 Contact details for West Sussex Councils 11 Useful Publications & Web-links How to do Business with West Sussex Councils 1. Introduction This is the second edition of ‘How to do Business with West Sussex Councils’ and has been produced for use by all Councils in West Sussex. In addition to West Sussex County Council there are 7 other District and Borough councils within the West Sussex County boundaries these are: • Adur District Council • Arun District Council • Chichester District Council • Crawley Borough Council • Horsham District Council • Mid Sussex District Council • Worthing Borough Council Borough and District Councils have responsibilities for local services within their own boundaries. West Sussex County Council has overall responsibility for the delivery of countywide services in West Sussex, with administration centres in Bognor Regis, Chichester, Horsham & Worthing. West Sussex County Council currently spends over £450 million annually on a wide range of goods and services. In order to obtain best value for this spend, a significant proportion of council procurement is carried out under contract, or by using joint or consortium contracts with other government bodies and other Sussex Authorities. In addition to tendering for individual contracts, councils hold a number of “Framework Agreements” that are renewed every four years. Local, Regional and National framework agreements give suppliers of goods and services access to a much wider market than they have previously enjoyed with individual council contracts. Through participation in consortia contracts, framework agreements and electronic tendering suppliers are able to expand into much larger markets. For details of “Framework Agreements” please contact individual councils direct. Local suppliers are encouraged to tender for council business wherever possible and interested suppliers can find further detailed information on how to do business with councils on individual council websites. Council tendering opportunities can also be found on the www. supply2.gov.uk or www.businessportal.sece.gov.uk The aim of this booklet is to provide you with an overview of information needed to understand the council tendering process. It aims to explain what services & goods councils buy and offers advice on the procurement process. The guide is designed to help in the following ways: • outlines the rules and regulations that councils must legally follow. • explains how to bid for council work. To make the most of business opportunities generated by councils you need to understand the spend patterns of a Council. Apart from their internal administrational requirements you should be aware also of the services they provide to the public. Below is a list of the most common services provided by councils. How to do Business with West Sussex Councils 2. Council Service Responsibility District & Borough Councils are normally responsible for these services: • Abandoned Vehicles • Beaches/ Foreshores & Coastal Defences (Adur/Arun/Chichester & Worthing councils only) • Housing and Council Tax Benefits • Building Control and Demolition • Car Parks and Parking • Cemeteries • Local Museums • Clinical Waste • Council Tax • Economic Development • Energy Conservation, Conservation Areas and Green Issues • Entertainment and Events • Environmental Health and Protection • Farmers’ Markets • Food and Hygiene • Homelessness • Housing • Land Charges • Leisure Development and Leisure Facilities • Licensing of Animals, Lotteries, Caravan Sites, Taxis and Entertainment • Litter, Fly Tipping and Dustbins • Noise Pollution • Off Street Parking • Pest Control • Planning Applications and Enforcement • Pollution Information • Refuse and recycling collections, including Garden Sacks and Bulky Goods • Register of Electors and Electoral Services • Street Cleaning • Public Toilets West Sussex County Council are responsible for: • Education • The Arts • Emergency Services and Planning – (including Fire & Rescue and Coast Guard) • Environment • Waste Management including Fly Tipping, Landfill and Waste Disposal • Abandoned Vehicles • Planning Services • Records Office • Community Safety and Planning • Registrar • Public Rights of Way • Libraries • Highways and Transport • Social Care and Health • Trading Standards • Adult & Children’s Services • Leisure and Tourism in West Sussex How to do Business with West Sussex Councils 3. Understanding Public Procurement Procurement is the process all councils use to acquire goods, works and services. There are regulations at European, National and Local levels, which councils must follow when buying services or goods and establishing Framework Agreements. Tendering and letting contracts can often appear to be confusing and bureaucratic to contractors, and often have the effect of putting some Small to Medium sized Enterprises (SME) and other Ethnic/Diverse minority (BME) or Third Sector businesses off tendering. All councils in Sussex have signed up the recent SME Concordat details of which can be found on http://www. communities.gov.uk/documents/localgovernment/pdf/135262.pdf Although the process may appear complicated and resource intensive councils are striving towards reducing the information requested to just that appropriate for the particular contract being tendered. It should be remembered that councils are spending public money and are audited through strict procedures and guidelines. All public expenditure has to be fully documented, from the initial decision and authorisation to purchase, to the final award. Each council’s procurement policy has to be fair, reasonable and use a transparent process giving equal opportunity to all bidders. This is done by using pre agreed evaluation criteria; normally this will be the “most economically advantageous tender” (MEAT), but contracts can be awarded on lowest price criteria. It also has to be undertaken in a manner that can be scrutinised and shown to have been carried out with propriety. 4. Local Government Procurement Procedures and Regulations Public authorities have a duty to operate in an open and transparent way by allowing all suppliers the freedom to trade with us. Individual council procedures for procurement form part of their Council’s constitution, and can be found on the individual Council’s website, sometimes they are referred to as “Contract Standing Orders” and are important because – • They provide an auditable framework for councils’ procurement activities; • Help councils to obtain value for money so that they, in turn, can provide value for money services to the public; • Ensure councils comply with EU & UK law governing the spending of public money; • Give protection to council staff and successful contractors from undue criticism or allegation of wrong doing. How to do Business with West Sussex Councils 5. European Union Consolidated Procurement Directives At the start of each procurement, councils must take into account the total value of the contract over the life of the contract. If the total value of the contact is below the financial thresholds listed below then the councils Standing Orders related to contracts will apply, if however they are above the Thresholds stated below EU procurement rules will always apply. Please note: Figures quoted effect from 1st January 2008 • • • Supplies €206,000 - £139,839 Services €206,000 - £139,839 Works€5,150,000 - £3,497.313 Where the estimated total value of a contract is expected to exceed the relevant EU financial threshold it must be advertised in the Official Journal of the European Union (OJEU). The total value is calculated by the value per year multiplied by the number of years of the contract (this value should include any service or maintenance costs related to the contract). These thresholds apply to most areas of goods, works and services that the councils may require. European Procurement Directives stipulate legal timescales that must be observed and these are intended to ensure that reasonable time is given to interested parties to respond to adverts and prepare submissions. If there is any conflict between European, national or local council rules, it is the European Directives, which prevail. Initially, if the value and service require it, a notice will be placed in OJEU. This gives information on proposed contractual arrangements to the market place plus gives evaluation criteria, timescales, etc. asking organisations to contact us to formally register their interest. You can find more information about the EU Procurement Directives and regulations on the OGC website http://www.ogc.gov.uk or from your nearest Euro Information Centre (EIC) on http://www.euro-info.org.uk You can also view Goods and Services contracts that are advertised over the EU thresholds on the Official Journal of the European Union (OJEU). These contracts can be viewed at http://www. euroguide.org or http://www.ted.eur-op.eu.int Contracts and invitations to tender may also be advertised in the local press or specific trade publications. How to do Business with West Sussex Councils 6. Tendering Tips • • • • • • • • Return the tender by the closing date and time specified. Late tenders will not be considered (even if there is evidence of posting the tender by first class mail prior to the latest date) Respond to any requests for further information by the specified date. Make sure you supply ALL the information requested. When referring to specific internal forms (i.e. Risk Assessment form) please enclose an example. Enclose the tender in a plain sealed envelope entitled “Tender” - followed by the subject to which it relates. Do not mark the tender envelope with any other mark or name, which may identify the tenderer. No tender will be considered if the plain sealed envelope in which it is enclosed is, in turn, enclosed within a second envelope or package which carries a name or mark which identifies the tenderer If when tendering you have a more innovative way of supplying either the service or goods that differs from the tender specification this should be highlighted on the Alternative Offer Schedule. This will be considered. 7. Using technology to aid the Procurement Process Purchase to Pay (P2P) What is meant by the P2P process, electronic procurement (e-Procurement) is the term used to describe a fully electronic purchase-to-pay process from the initial requisition/order through to invoicing and payment. e-Procurement automates and simplifies the procurement process reducing costs through resource efficiency savings. It reduces the use of paper invoices, postage and lowers processing and administration costs. e-Procurement also aids suppliers by removing a large proportion of the paper based activities relating to the processing of an order and subsequent payment; it also speeds up the payment process to suppliers and aids supplier/ customer relationship by improving customer satisfaction. Collectively the local authorities of England and Wales spend well over £25 billion every year on goods and services, placing 35-58 million purchases with over 80,000 suppliers. e-Procurement can also help suppliers gain access to a wider local authority market and increase sales opportunities to this sector. Many councils in West Sussex are implementing e-Procurement solutions that interface with their own IT software, and councils are keen to work with suppliers to help them achieve electronic trading capability wherever possible. West Sussex County Council has implemented Bravo Solution as their P2P model (Please check with individual councils on their solution). There are many benefits to both the Council and the supplier by trading electronically and councils are keen to encourage suppliers to trade this way to achieve the benefits related to e-Procurement. How to do Business with West Sussex Councils Potential Benefits of using P2P e-Procurement Solution • Reduces cost of sales • Quicker payments • Reduces cost of inventory • Protects the market from economic instability • Improves management information and provides marketing data • Offers transfer of the technology to other sectors and other customers • 8. Local Government Marketplace There are many new electronic market places available online. One of the main market places used by local authorities to procure goods and services is IDeA. The Improvement and Development Agency (IDeA) was established in March 2002 to help local government provide services by improving processes, saving time and avoiding unnecessary cost. Hosted by platform provider e-Government Solutions the IDeA marketplace allows councils to use e-Procurement without the need to implement their own software solution. Organisations can integrate their finance systems, or other purchase-to-pay solutions to minimise re-keying of data, saving time and reducing errors. The biggest success of the marketplace so far has been in generating cash savings by providing authorities with access to cheaper collaborative contracts than were previously used. With over 40bn spent annually by local government on third-party goods and services, the opportunity for savings is clearly significant. Further details of the guidance and activities conducted by IDeA can be found at http://www. idea.gov.uk. 9. EU Threshold Tendering Options There are 4 main tendering options open to councils: 1. Open procedure - Under an open tender procedure all suppliers who respond to an advertisement are supplied with invitation to tender documentation, which they then return as appropriate. This is then evaluated against pre-established criteria for the “most economically advantageous tender” (MEAT). Councils will only select this procedure where the expected number of applications is likely to be manageable. 2. Restricted procedure - (This is the most common process used by councils to tender goods & services contracts.) The restricted procedure can best be described as a three stage approach in which all suppliers who respond to a contract notice are supplied with a pre-qualification questionnaire (a PQQ). cont. over How to do Business with West Sussex Councils We tend to undertake the restricted procedure only if we expect high levels of interest in a specific requirement. The PQQ normally requests the following information from the supplier: • • • • • • • Financial Assessment Insurance Liability cover Health and Safety Policies & Procedures Criminal Record Bureau Checks (if applicable to the contract) Equalities and Diversity Policies & Practises Technical Assessments - Reference Sites and Referees Environmental Management including the Sustainability, Environmental, Economic & Social impact your goods or services have on the environment. The PQQ document allows the council to initially assess the contractor on their technical ability and financial stability to provide the service or goods over the length of the contract. From this long list a short list of contractors will be compiled that will receive the full tender documents. Tender documents will then be sent out to the shortlisted contractors, which will indicate the tender evaluation criteria incorporating both quality and price and the terms under which the contract will be let. Again these should be completed and submitted in accordance with strict tendering procedures and deadlines highlighted in the document. All tenders will be fairly evaluated using the pre agreed criteria and often the top 2/3 bidders will be invited along to give a presentation on their bid. When all the evaluation has been completed the project board will inform the successful contractor of their decision and confirm their acceptance. Once the contract has been awarded, an Award Notice will be published in OJEU giving brief details of the company selected. 3. Competitive Dialogue procedure - This is a new procedure brought in with the adoption of the EU Consolidated Procurement Directives in January 2006. It allows councils to discuss possible requirements with suppliers pre-selected by a PQQ process (as noted above) in order to find the most appropriate solution to fulfill the requirement. This procedure is therefore most suitable for tackling complex procurement where no “standard market offering” exists or where service delivery innovation is being sought. Discussions with suppliers may continue over several stages until the council feels the most appropriate solution to fulfill its requirement has been identified. At this stage the dialogue process ceases and those suppliers able to fulfill the council’s requirements are invited to tender. 4. Negotiated procedure - When the council, under certain limited circumstances, negotiates with one or more suppliers of choice. For example, it may be used in a case of extreme unforeseen urgency or where there is only one supplier in the market. It would not normally be used when either open or restricted tendering is considered more appropriate (and is rarely used now by councils). How to do Business with West Sussex Councils Award Procedure for EU Contracts After the final evaluation, the project team will have reached a decision on the contractor that best meets the evaluation criteria and the needs of the contract. EU contract regulations require a minimum 10-day standstill period between communication of the award decision to all bidders and entry into a contractually binding agreement. The new rules ensure that bidders have advance notice of when the contract will be entered into; giving them the opportunity to commence a legal challenge should they feel that the award has not been fairly made. Unsuccessful bidders will have the opportunity during the minimum 10-day standstill period to request a debriefing meeting to discuss the award and the evaluation process. This request should be in writing. Contractors may be required to produce evidence during the tender process that the main topics listed below are covered. Financial Stability Contractors are normally requested to supply, the last two or three years of audited accounts. This must be a full set of accounts, which includes a Profit and Loss statement, the Balance Sheet and all notes to accompany the accounts. The accounts should also include the auditor’s report and the directors’ report if applicable. Insurance Liability Cover Contractors should enclose copies of the necessary Insurance documents to prove that the contractor has the necessary insurance cover, including public liability, employer’s liability and where appropriate professional indemnity. The value of the cover required will be indicated by individual councils appropriate to the contract being let. Health & Safety All organisations are required to comply with the duties imposed upon them by the Health and Safety at Work etc. Act 1974 and subordinate legislation, the risk assessment requirement of the Management of Health and Safety at Work Regulations 1999 and the Occupiers Liability Acts. Companies will be asked to supply their own internal procedures for dealing with Health & Safety issues & training. Permit to Work In some cases a Contractor will require, a Permit to Work (PTW) Form. These are generally required for contractors working on council sites where activities could present significant risks to staff, the public, property or systems. The PTW is used to manage day-to-day work on or in the property and to ensure one contractors activities will not affect another. Criminal Record Bureau Checks Where there is a possibility of the contractors being in contact with vulnerable persons then councils are required to undertake a Criminal Records Bureau check (unless an existing CRB clearance certificate exists). Any existing valid certificate must be no older than three years old and the original certificate needs to be authenticated and copied by an authorised member of the Personnel Staff at the council. Some councils may use their discretion to make this period shorter than three years in exceptional circumstances. How to do Business with West Sussex Councils Equalities & Diversity Councils are committed to equal opportunities for all, regardless of race, colour, religion, ethnicity, gender, family status, sexual orientation, disability or age, and will promote equalities in the procurement of goods, works and services. It is all councils’ policy to ensure equality contract selection to businesses owned by all members of the community. Contractors may be asked if they comply with the Sex Discrimination Act 1975, the Equal Pay Act 1970, the Disability Discrimination Act 1995, the Race Relations Act 1976, the Race Relations Amendment Act 2000 and any related Codes of Practice. In appropriate cases tenderers will also be asked whether they have been subject of any investigation or finding by a court or tribunal concerning breach of any of the aforementioned requirements. Contractors will also be asked if they have a policy on equal opportunities. Technical Assessments - Reference Sites & Referees A technical assessment and references will be undertaken to assess the performance, experience and ability of the contractor in providing the works, goods and services. How to do Business with West Sussex Councils Economic Sustainability In their procurement activities, councils will encourage the local business community to employ local labour thus maintaining our employment levels. However, it should be noted that the councils are constrained by both national and European rules in how they procure. Local businesses are encouraged to develop and build their capacity and potential to enable them to submit competitive tenders. Environmental Management Councils also look to minimise the effect procurement has on the environment. Details may be asked about action taken by the company to: • Ensure materials used are from sustainable managed sources, e.g. timber from sustainable managed forest • Ensure that materials and products used have been processed in a way which causes minimum damage to the environment • Increase the proportion of products used which have been made from recycled materials • Ensure any surplus of waste material is disposed of in a way that causes the least possible adverse impact on the environment • Reduce waste production and increase the proportion of materials re-used and recycled • Discourage car use and eliminate unnecessary motor vehicle trips • Reduce fuel consumption through, for example, increasing fuel efficiency, driver training, good vehicle maintenance and route planning • Reduce the use of energy for other purposes through, for example, promoting energy saving behaviour, use of energy efficient equipment and good design practices • Increase the proportion of energy used which is from renewable sources • Reduce water use and increase the proportion of water re-used • Protect natural resources and green spaces and increasing biodiversity • Reduce air and water pollution and prevent land contamination • Reduce noise and light pollution • Provide details of Environmental Management Systems and/or Environmental Standards achieved. How to do Business with West Sussex Councils 10. Contact details for the West Sussex Councils Specific service or business areas usually undertake District and Borough procurement, but central points of contact that will be able to advise and guide you through the process are listed below: Adur District Council (http://www.adur.gov.uk) Procurement responsibilities are devolved in Adur DC, for further information go to the Adur procurement web pages or contact: Bill Williamson at 01903 221056 or email: [email protected] Arun District Council: (http://www.arun.gov.uk/procurement) Procurement responsibilities are devolved in Arun DC, for further information go to the Arun procurement web pages or contact Rob Kitt on 01903 737677 or email - [email protected] Chichester District Council (http://www.chichester/gov.uk) Procurement responsibilities are devolved in Chichester DC, for further information go to procurement web pages. General enquires may be emailed to [email protected] Crawley Borough Council (http://www.crawley.gov.uk) Procurement responsibilities are devolved in Crawley BC, for further information go to the Crawley BC procurement web pages or call on 01293 438386 or Email – [email protected] Horsham District Council (http://www.horsham.gov.uk/your_ council/your_5571.asp) Procurement responsibility is devolved in Horsham DC, details of the officer to contact for each particular area may be found on the Council “Selling to the Council” web pages. General enquires may be emailed to [email protected] Mid Sussex District Council (http://www.midsussex.gov.uk/page. cfm?pageID=2233)) Procurement responsibility is devolved in Mid Sussex DC, details of the officer to contact for each particular area may be found on the Council “Selling to the Council” web pages. General enquires may be emailed to [email protected] Worthing Borough Council (http://www.worthing.gov.uk) Procurement responsibilities are devolved in Worthing BC, for further information go to the Worthing procurement web pages or contact Bill Williamson on 01903 221056 or Email – [email protected] (http://www.worthing.gov.uk/A-ZofServices/ServicesN-Z/ PurchasingProcurement) West Sussex County Council: (http://www.westsussex.gov.uk) Procurement enquiries should be directed to the Procurement Support department How to do Business with West Sussex Councils 11. Useful Publications and Links BIP Contracts http://www.bipcontracts.com A contract information service providing a wide coverage of the public sector contracts required by national and international government departments, local authorities, police, health and fire services. It also has a range of useful briefing notes on related issues. UK Online http://www.ukonline.gov.uk Ukonline.gov.uk is the easy way to access government services on the Internet. It guides you through more than 900 government websites to get information you need quickly and efficiently. It is a key part of the UK online initiative. Informed Publications Limited http://www.infopub.co.uk This site contains more than 1600 different Information & Communication Technology (ICT) products or services that either are, or can be, used by local authorities. Submitting a product to the database is free. Tenders Direct http://www.tendersdirect.co.uk Website provides access to over 30,000 current government and utility company contracts in the UK and Europe. Database is updated with 400 new tender notices everyday. SIMAP http://www.simap.eu.int SIMAP aims to support an effective Single Market by encouraging suppliers and contracting entities to adopt best practices and use electronic commerce and information technology to provide all the information needed to deliver value for money in public procurement. Tenders on the Web http://www.tenders.co.uk This service states that it delivers £480billion worth of business opportunities and 150,000 contract notices per year. The site provides advice on tendering and EU procurement directives. DTI http://www.dti.gov.uk/socialenterprise/pdfs/procure_text.pdf Information for Social enterprises can be found on the DTI’s website. The DTI has produced a helpful procurement Toolkit to assist social enterprises bid for and win public sector contracts. Small Business Service http://www.sbs.gov.uk/content/services/tender.pdf The SBS has produced a guide for Small and Medium Enterprises (SMEs), Tendering for Government Contracts – A Guide for Small Businesses. BusinessLink http://www.businesslink.gov.uk How to do Business with West Sussex Councils How to do Business with West Sussex Councils
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