Local Authorities in the United Kingdom are subject to the United Kingdom Public Procurement Regulations, which implement relevant European Directives. The purpose of the Directives is to stop discrimination between suppliers.

All contracts for services, supplies or works which will exceed the defined thresholds will be advertised in the Official Journal of European Union and on the Council’s E-Tendering web site.

The following notes highlight particular aspects of the European Union Regulations:

• The Public Procurement Regulations apply in respect of contracts for the purchase of goods, services or works which, over the lifetime of the contract, are expected to require that payments are made to the contractor in excess of the relevant threshold. In this context, the contract value will include the cost of consumables and/or maintenance if these are explicitly included in the contract or if, in practice, there is no real alternative supplier. There are provisions prohibiting the sub-division of contracts into smaller lots in order to avoid the Regulations.

• The thresholds for the application of the Public Procurement Regulations were most recently revised with effect from 1 January 2008:

• - supplies contracts £139,893

• - nservices contracts £139,893

• - works contracts £3,497,313

• In all cases the figures are exclusive of VAT.

The Directives provide for four types of award procedure that contracting authorities can use:

All interested suppliers, contractors or service providers may submit tenders.

Only those suppliers, contractors or services providers invited by the contracting Authority may submit tenders.

The competitive dialogue procedure always requires placing of a contract notice and selection from all respondents of those to be involved in the dialogue. The dialogue may embrace all aspects of the contract for the purpose of identifying one or more solutions which meet the purchaser’s needs. Bids are then sought from those remaining in the dialogue. Although bids received may be clarified, negotiation in the context of the negotiated procedure is not permitted.

Key aspects of this procedure are as follows:

• Suitable for supplies, services and works contracts where open or restricted procedures would not allow contract award.

• Used to help define the means of achieving broad objectives.

• Allows bidders to produce innovative solutions.

• Always involves competitive tender and can only use the most economically advantageous award criterion.

• Dialogue may embrace all aspects of the contract for the purpose of identifying one or more solutions which meet the purchaser’s needs before seeking bids from those remaining in the dialogue.

The contracting Authority consults suppliers, contracting or service providers of its choice and negotiates the terms of the contract with one or more of them.

Ideally, at the beginning of the financial year, or when it is known that a purchase is going to be made a Prior Indicative Notice (PIN) will be placed in the Official Journal of the European Union. This notice alerts Contractors that a Contract is to be put out to tender and gives some basic details. The Directive requires that a PIN should be published in the Journal each time a tender is to be advertised and the timescales may be reduced later.

Following the award of the Contract, an award notice will be placed in the Journal no later than 48 days from the date of award.

For further information in addition to Knowsley’s E-Tendering web site or to search for notices in the Official Journal of the European Union the following web links may be used to search for notices and publications:

Tender Electronic Daily (Ted)

MyTenders.com

Society of Procurement Officers