Step by step guide
Please follow the steps below to find the correct procurement pathway for your purchase.
Step 1 – Is there a Corporate Contract / Existing Framework?
First things first, you will need to check if your need can be met from one of the Council’s corporate contracts or frameworks. These arrangements have been put in place usually for goods or services that are used widely across the Council. They exist to enable us to purchase items efficiently and effectively and help ensure consistency of quality, certainty of supply and offer savings through economies of scale. You must utilise these arrangements if they meet your need.
Step 2 – Is there an opportunity to collaborate?
In order to maximise savings achieved through procurement, Councils are being urged to work together when purchasing common goods, works and services. In a number of areas we have already joined forces with other Local Authorities to deliver collaborative tender exercises. Namely in Civil Engineering, Construction and Food and there are always opportunities to explore in other spend areas.
One such collaborative arrangement is the National Procurement Service (NPS). The NPS was set up in December 2015 to target “common and repetitive spend” amongst the public sector bodies in Wales. We are committed to utilising all arrangements set up by the NPS. In the event of the NPS setting up an arrangement to meet a particular requirement, we will be duty bound to call off that arrangement. Where there are exceptional circumstances not to use the NPS, the Procurement Manager must be consulted and a Business Case will be prepared and approval sought from the Section 151 Officer and the Monitoring Officer, to be presented to the NPS Delivery Board for consideration.
Step 3 – Estimate the Value
The pathway that you will need to follow will depend on the value of the goods or service that you require, so you will need to come up with an accurate estimate.
The value must be based upon the higher of:
- The amount or estimated amount to be paid to the supplier over the length of the contract, including any extension periods.
- The amount or estimated amount of gross income to be generated by the supplier through the goods or services provided.
A contract which is one of a series of contracts with similar characteristics, and for services of the same type, is deemed to have the value of the series as a whole. When estimating the value the principle of aggregation must be considered – repeat purchases of the same goods/services/works over a sustained period.
Where you are unable to estimate the value of the proposed contract an estimate should be made on the bases of a 48 month contract period.
Step 4 – Procurement Pathway
You have now estimated the value of your exercise, checked that there is no suitable contract, framework or NPS arrangement already set up and explored the option of collaboration.
Now you need to decide which procurement pathway is appropriate for your exercise.
- Quotations - exercises up to £75,000 in value
- Tenders - exercises over £75,000 in value
Page updated: 26/03/2018 10:54:36