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Part 4 - Contract Procedure Rules

Below are the Contract Procedure Rules.

8. Competition requirements

Goods, Services and / or Works

8.1       Calculating the Estimated Total Contract Value of any contract for goods, services and/or works (the “Estimated Total Contract Value”)

The Estimated Total Contract Value shall be calculated as follows:

a). the Estimated Total Contract Value of a contract for goods, services and/or works shall be calculated exclusive of VAT if its value (plus VAT) does not exceed the relevant threshold prescribed by UK public procurement legislation;
b). the Estimated Total Contract Value of a contract for goods, services and/or works shall be calculated inclusive of VAT if its value (plus VAT) exceeds the relevant threshold prescribed by UK public procurement legislation;
c). the Estimated Total Contract Value shall include the estimated value of any options (including extension options), lots or renewals under the relevant contract;
d). the Estimated Total Contract Value of a framework agreement or dynamic purchasing system shall be the total value of all of the call-off contracts that may be awarded under that framework agreement or dynamic purchasing system. The Estimated Total Contract Value of call-off contracts that may be awarded under a framework agreement or dynamic purchasing system shall be calculated exclusive of VAT if their aggregate value (plus VAT) does not exceed the relevant threshold prescribed by UK public procurement legislation. If however the aggregate value (plus VAT) of call-off contracts that may be awarded under a framework agreement or dynamic purchasing system exceeds the relevant threshold prescribed by UK public procurement legislation its Estimated Total Contract Value shall be calculated inclusive of VAT; and
e). the Estimated Total Contract Value of a works concession contract or a services concession contract shall be the total estimated turnover of the supplier generated over the duration of the contract, (inclusive of VAT if its value (plus VAT) exceeds the relevant threshold prescribed by UK public procurement legislation or exclusive of VAT if its value (plus VAT) does not exceed the relevant threshold prescribed by UK public procurement legislation), in consideration of the works and services which are the object of a works concession contract or (as appropriate) a services concession contract and for the supplies incidental to such works and services.

8.2       The rules when calculating the Estimated Total Contract Value are:

a). purchases of the same or similar type of goods, services and/or works must be aggregated and the Estimated Total Contract Value shall not be calculated with the intention of excluding it from the scope of these Contract Procedure Rules;
b). where there is a common requirement for goods, services and/or works across the Council, the Estimated Total Contract Value shall be the aggregate of all purchases across the whole Council in respect of such goods, services and/or works;
c). a contract for goods, services and/or works shall not be sub-divided or its Estimated Total Contract Value artificially under estimated or disaggregated into two or more separate contracts with the intention of avoiding the scope of these Contract Procedure Rules and/or relevant legislation; and
d). the Estimated Total Contract Value of a contract for goods, services and/or works shall be the value as determined when the advertisement in respect of that contract is issued or when the Council commences its procurement procedure, in respect thereof, whichever is earlier;
e). the Estimated Total Contract Value of a works concession contract or a services concession contract shall be determined when the advertisement is issued or when the Council commences its procurement procedure, whichever is earlier unless it is a Regulated Procurement, in which case the Estimated Total Contract Value shall be calculated in accordance with the provisions of The Concession Contracts Regulations 2016.

8.3       All contracts for goods, services and/or works that have an Estimated Total Contract Value equal to or in excess of the relevant threshold prescribed by UK public procurement legislation and the provisions of these Contract Procedure Rules shall be procured in accordance with such legislation.

8.4       All contracts for goods, services and/or works that have an Estimated Total Contract Value that is less than the relevant threshold prescribed by UK public procurement legislation shall be procured in accordance with the provisions of these Contract Procedure Rules.

8.5       Contracts for goods and/or services that have an Estimated Total Contract Value:

a). that is less than £5,000 (excluding VAT) the Authorised Officer should obtain at least one quotation from a suitable supplier (email is sufficient) or on the basis of a pre-quoted price (such as in a supplier’s catalogue).
b). of £5,000 (excluding VAT) and over but less than £25,000 (excluding VAT) may be procured after obtaining a single written quotation which must be obtained using the Council’s e-procurement system.
c). of £25,000 (excluding VAT) and over but less than £100,000 (excluding VAT) may be procured after obtaining three written quotations which must be obtained using the Council’s e-procurement system.
d). of £100,000 (excluding VAT) and over but less than the relevant threshold prescribed by UK public procurement legislation must be procured after having undertaken a competitive tender process using the Council’s e-procurement system;
e). which is equal to or exceeds the relevant threshold prescribed by UK public procurement legislation must be procured after having undertaken a competitive tender process using the Council’s e-procurement system.

8.6       Contracts for works that have an Estimated Total Value:

a). less than £250,000 (excluding VAT) may be procured after obtaining three written quotations which must be obtained using the Council’s e-procurement system.
b). at £250,000 (excluding VAT) and up to the relevant threshold prescribed by UK public procurement legislation may be procured after having undertaken a competitive tender procurement process using the council’s e-procurement system.
c). which is equal to or exceeds the relevant threshold prescribed by UK public procurement legislation must be procured after having undertaken a competitive tender procurement process using the Council’s e-procurement system.

8.7       Contract extensions may only be considered if the relevant contract contains an extension option or if there are legitimate grounds for an extension as provided by UK public procurement legislation. Any such extension must be authorised in accordance with the Council’s Scheme of Delegation.

8.8       A Direct Contract Award must only be considered as a last resort when all other procurement strategies have been excluded and provided such contract award would not give rise to a breach of UK public procurement law. A Direct Contract Award whose Estimated Total Contract Value (plus VAT) is less than the relevant threshold prescribed by UK public procurement law is permissible provided that:

a). it has been determined through market analysis/engagement that only one particular supplier is capable of providing the required goods, services or works; or
b). for reasons of extreme urgency brought about by events unforeseeable by the Council there is insufficient time to conduct a competitive procurement process (provided the reason for such urgency is not attributable to the Council); or
c). in limited cases, to protect intellectual property rights that an incumbent supplier holds

Page updated: 25/01/2022 Page updated by: Gloucestershire County Council

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