8 - The contracting process

In this section

8. Competition requirements

Goods, Services, Health Care Services and/Works

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

The Estimated Total Contract Value of such contracts (including concession contracts) shall be calculated as follows:

a). the Estimated Total Contract Value of a contract for goods, services, health care services and/or works shall be calculated inclusive of VAT and shall include the estimated value of any options (including extension options), lots or renewals under the relevant contract;
b). the Estimated Total Contract Value of a framework agreement or dynamic market shall be the total estimated value of all of the contracts that may be awarded under that framework agreement or dynamic arket inclusive of VAT; and
c). the Estimated Total Contract Value of a works concession contract or a services concession contract shall be the maximum estimated amount inclusive of VAT that the supplier could expect to receive under or in connection with the contract.

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

a). purchases of the same or similar type of goods, services,  health care 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 CPRs or UK public procurement legislation;
b). where there is a common requirement for goods, services, health care 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, health care services and/or works;
c). a contract for goods, services, health care 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 CPRs or UK public procurement legislation; and
d). the Estimated Total Contract Value of a contract for goods, services, health care 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; and
e). the Estimated Total Contract Value of a works concession contract or a services concession contract shall be determined when the advertisement in respect of that contract is issued or when the Council commences its procurement procedure, whichever is earlier.

Competition requirements - Goods or Services (other than Health Care Services) Contracts

8.3       Competition requirements - Goods or Services (other than Health Care Services) Contracts:

a). that is less than £6,000 (excluding including VAT) shall be procured either by obtaining at least one quotation from a suitable supplier (a quote received by email is sufficient) or sourcing a pre-determined price from a  supplier’s catalogue.
b). that is £6,000 (including VAT) or more but less than £30,000 (including VAT) be procured by obtaining at least one written quotation using the Council’s e-procurement system.
c). that is £30,000 (including VAT) or more but less than £120,000 (including VAT) shall, subject to CPR 5.1 be procured by obtaining at least three written quotations using the Council’s e-procurement system and in compliance with UK public procurement legislation requirements (to the extent they apply to notifiable below-threshold contacts (as defined in section 87(4) PA23)) and the content of procurement guidance and toolkits issued by the Head of Strategic Procurement.
d). that is £120,000 (including VAT) or more but less than the relevant threshold prescribed by UK public procurement legislation shall, subject to CPR 5.1 be procured by undertaking a competitive tender process using the Council’s e-procurement system and in compliance with UK public procurement legislation requirements (to the extent they apply to notifiable below-threshold contracts (as defined in section 87(4) PA23)) and the content of procurement guidance and toolkits issued by the Head of Strategic Procurement;
e). that is equal to or exceeds the relevant threshold prescribed by UK public procurement legislation must be procured by a competitive tender process using the Council’s e-procurement system and in compliance with UK public procurement legislation requirements.

Competition requirements - Health Care Services Contracts

8.4       Contracts for the supply of health care services under PSR23 shall, irrespective of their Estimated Total Contract Value, be procured in accordance with the requirements of PSR23 and procurement guidance and toolkits issued by the Head of Strategic Procurement.

Competition requirements - Works Contracts

8.5 Contracts (including concession contracts) for the supply of works that have an Estimated Total Contract Value:

a). that is less than £300,000 (including VAT) shall, subject to CPR 5.1, be procured by obtaining at least three written quotations using the Council’s e-procurement system and in compliance with UK public procurement legislation requirements (to the extent they apply to notifiable below-threshold contracts (as defined in section 87(4) PA23)) and the content of procurement guidance and toolkits issued by the Head of Strategic Procurement.
b). That is £300,000 (including VAT)  or more but less than  the relevant threshold prescribed by UK public procurement legislation shall be procured by undertaking a competitive tender procurement process using the council’s e-procurement system and in compliance with UK public procurement legislation requirements (to the extent they apply to notifiable below-threshold contracts (as defined in section 87(4) PA23)) and the content of procurement guidance and toolkits issued by the Head of Strategic Procurement.
c). that 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 and in compliance with UK public procurement legislation requirements.

Contract period extensions

8.6       Contract period extensions may, subject to CPR 6.2, be considered only 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.

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