Supplier Guide - How to do business with Gravesham Borough Council

The council is obliged to follow a competitive process when awarding its contracts. In most cases it will issue its own tenders but may choose to use frameworks and contractual arrangements available through its membership of KBC and the Laser Energy Consortium. These contracts have been competitively tendered and meet legal requirements. The council also has access to contracts arranged by the Central Buying Consortium (CBC) and the Office of Government Commerce (OGC).

The council is active in encouraging and developing business opportunities within the Borough and neighbouring areas.  However, it cannot make any exclusive provisions for local businesses during the tendering processes as it has to ensure that it meets its obligations towards impartiality and the delivery of Best Value procurement.

A guide has been prepared to assist existing and prospective suppliers in understanding the procedures to follow and the way in which the council is required to manage its competitive tendering processes.

Supplier Guide

This guide has been prepared to inform and advise suppliers about applying for work with the council and to give them a better understanding of how the council lets contracts for works, goods and services. It also identifies the relevant legislation and council policies which govern the procurement process.

The council is implementing an updated Procurement Strategy that is designed to support the development and continuous improvement of its procurement processes. This Guide will be amended as any changes from the implementation of the Strategy impact on its contents.

There is always competition for council work and it is not possible to assure any supplier of work. However, this Guide gives enough information for suppliers to understand how they can become involved in the section process.

The Procurement Strategy and suppliers

Procurement is about how the council obtains goods, services and works which represent Best Value in terms of quality and cost. Effective procurement supports the council's aims and objectives and is fundamental to the delivery of high quality services to the community.

The council's Procurement Strategy establishes a strategic and corporate approach to procurement. The council is committed to working with its suppliers to consistently improve the delivery of high quality and value for money goods, services and works. The council's Procurement Strategy explains the approach the council is taking.

The council's Procurement Strategy is available on the website at; www.gravesham.gov.uk

How to become a supplier to the council

To apply for work with the council there is a vetting and selection process which must be undertaken. This is to verify the suitability and competence of potential suppliers.

The council uses a third party supplier vetting and accreditation service to manage the majority of the work associated with the assessing suppliers for inclusion into approved lists of suppliers. The service is provided by Constructionline.

The evaluation process includes checks made against the supplier in relation to financial stability, technical competence, health and safety compliance, equal opportunities, environmental considerations and attention to customer and workforce matters. The information is used to approve or decline an application to become an approved supplier to the council.

Suppliers interested in working for the council are encouraged to contact Constructionline
Sutherland House
108-114 Dundas Street
Edinburgh
EH3 5DQ

Tel: 0870 607 1602
Email: constructionline@capita.co.uk
http://www.constructionline.co.uk (see link below)

An expression of interest form for electronic completion and submission to Constructionline can be downloaded by clicking on the link below.

Contractor's Health and Safety Assessment Scheme

The council is a member of the Contractor's Health and Safety Assessment Scheme (CHAS). The Scheme provides the council with quality assessed information in relation to contractors' health and safety qualifications. The council encourages its contractors to become approved to CHAS standards.

Further information can be found on the CHAS website at: www.chas.gov.uk

The tendering process

Those suppliers who are placed on the approved lists are eligible for considered to receive an invitation to tender.

The tender documents will include some or all of the following:-

• Letter of invitation - giving details about the required return date, point of return and contact details for raising any queries on the content.  
• Instructions on how to complete the documents.
• A Form of Tender - this is the agreement to the contract terms and conditions for tenderers to complete.
• Technical specification – this will detail the council's requirements as well as any policies or procedures which need to be followed. It will include performance standards and the outcomes to be delivered.
• Tender schedules – these are the documents where all pricing is entered.
• Contract terms and conditions – these explain the relationship between the council and the supplier and how the contract will be managed.
• Quality and method statement questions – these require tenderers to answer questions explaining how they will provide the council's requirement and to show the extent of their experience in providing similar services. This section may also include a requirement to demonstrate a commitment to supporting council policies through the provision of the service requirement.
• Tender evaluation model – The council will provided details explaining how the tender submissions will be evaluated and the award of contract made.
• For certain requirements the council may require tenderers to undertake a presentation to members of an evaluation panel.

Tender evaluation

Tenders will be evaluated against pre-determined criteria which will include quality requirements, costings, affordability and compliance with the technical specification. The evaluation process will be objective, consistent and fair in its analysis. It will focus upon how the supplier proposes to deliver the requirement.

The tender offering the lowest price will not necessarily be awarded the contract as the council is committed to balancing costs with quality. This means that whilst price is always very important quality requirements and levels of service delivery are factors which are always taken into consideration when evaluating tender submissions. In the majority of instances the council will award its contracts on the basis of the most economically advantageous price.

To ensure probity of the council's contracting activities the tendering and evaluation process is subject to scrutiny by the Internal Audit Department and the external independent District Auditor.

Relationships with suppliers

The council encourages and supports closer working relationships with its supplier base, at all levels, to maximise the opportunities for both parties to realise the benefits of working together. In appropriate procurement situations it will develop partnership arrangements designed to achieve long term collaborative arrangements with suppliers where risks and reward are shared.

The council has strict protocols which govern its relationship with suppliers. These ensure that all suppliers are dealt with on a fair, impartial and equitable basis. The acceptance of gifts or any form of inducements from suppliers is strictly prohibited.

Council Policies

The council is committed to delivering excellent customer service and actively seeks closer working relationships with its suppliers to realise this ambition.  The council has a range of policies which support this commitment.  They include the following:-

• Equalities Policy
• Anti-Fraud and Corruption Strategy
• Customer Service Charter
• Confidential Reporting Policy

Further council policies can be found on the policies page of this site. (see link under the Related Articles section of this page)

Suppliers are encouraged to consult these policies for more information.

The council is keen that suppliers follow these policies when providing goods, services and works to its customer base and when working at council premises.

Legislation and the Council's Contract Procedure Rules

As a local authority organisation the council has to conform to legislation and regulations as well as its own procedural rules which govern the management of tendering processes and contract awards.

Briefly these are as follows:

European Procurement Directive

Where it is estimated that the 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 financial thresholds are reviewed on a regular basis and are currently set at:

£ 3,927,260 for works and

£ 156, 442 for goods and services

These thresholds are operational from 1 January 2010 for a two year period.

The Directive establishes clear rules which promote transparent and non-discriminatory practices in the managing of the tendering process and the award of contracts. They also stipulate specific minimum periods of time for suppliers to respond to adverts and prepare submissions.

Domestic legislation

The council has a duty under Best Value legislation to seek a combination of economy, efficiency and effectiveness. Economy is the need to provide services at a price which is consistent with what is affordable and represents value for money. Effectiveness is the duty to provide quality services which properly meet the needs of the community. Efficiency is concerned with delivering a balance between these two components.

Council procedure rules

The council's constitution includes the rules that govern the issuing of tenders and the awarding of contracts. The rules set financial parameters which determine how a quotation or tendering process will be carried out for the procurement of goods, works and services. The contract procedure rules are mandatory throughout the council. They are designed to ensure accountability and transparency.

In summary this means that for procurements:

• Up to a value of £10,000 one written quotation is usually required.
• For values between £10,000.01 and £50,000 at least three written quotations are required.
• Between £50,000.01 and the European procurement thresholds a minimum of five written tenders must be received.
• Over the European threshold require the tendering process to be conducted in accordance with the Directives.

Consortium and other procurement arrangements

The procurement of some council requirements will not be exclusively managed by the council but rather through joint working with other local authorities. The council is a member of the Kent Buying Consortium, which is composed of the County Council, Medway Council and the District and Borough Councils within Kent. The work of the consortium includes the issuing of tenders on behalf of member authorities to maximise procurement opportunities. Suppliers will be able to apply for selection to participate in these contracts when they are advertised by the authority leading the procurement process on behalf of the Consortium.

In certain situations the council may consider that there are advantages to using contractual arrangements already established by other organisations. Examples include contracts awarded by the Office of Government Commerce and the Central Buying Consortium. The council is eligible to use these contracts which have been awarded in compliance with European and domestic legislation.

Finding out about opportunities to bid for Council work

Where, for whatever reasons, the council's approved supplier accreditation service is not used to select suppliers to tender for work, the council will advertise its requirements in accordance with appropriate legislation and its procedural rules.

This may mean placing an advertisement in the Official Journal of the European Union or appropriate trade journals as well as in the local press.

South East Business Portal (SEBP)

The SEBP is found at: www.businessportal.southeastiep.gov.uk

The SEBP is managed by the Improvement and Efficiency South East (IESE)

Seventy four Local Authorities from across the South East of England have the opportunity to post their contract register into the SEBP and to list their forthcoming open business opportunities.

Suppliers may register to use the SEBP and to access Contract Registers and business opportunities at no financial cost

Supplier Guide content

Please note that this document has been prepared as informal guidance to assist suppliers in understanding how to apply for work with the council. It is not a statement of the law.

This Supplier Guide was revised and updated:-

11 June 2007
10 March 2010