Section 7 - Contract and Procurement Procedure Rules

Content

A Brief Guide to the Contract and Procurement Procedure Rules

Section 1 - Scope of Contract and Procurement Procedure Rules

1. Basic Principles
2. Responsibilities
3. Exemptions, Collaborative and E-Procurement Arrangements
4. Contracts

Section 2 - Common Requirements

5. Steps Prior to Purchase
6. Records and Debriefing Applicants
7. Approved Lists and Framework Agreements

Section 3 - Conducting a Purchase or Disposal

8. Financial Thresholds, Asset Disposal and Appointment of consultants
9. Pre-Tender Market Research and Consultation
10. Standards and Award Criteria
11. Invitations to Tender/Quotations
12. Shortlisting
13. Submission, Receipt and Opening of Tenders
14. Clarification Procedures and Post-Tender Negotiation
15. Evaluation and Award of Contract

Section 4 - Contract and Other Formalities

16. Contract Documents 
17. Bonds and Parent Company Guarantees 
18. Prevention of Corruption

Section 5 - Contract Management

19. Managing Contracts
20. Risk Assessment & Contingency Planning
21. Contract Monitoring, Evaluation and Review

Section 6 - General

22. Technical Amendments
23. Definitions

Whenever DEFINED TERMS are used they are in italics, begin with a capital letter and are in the Definitions in Section 6. All costs stated in these Contract and Procurement Procedure Rules are exclusive of VAT, staff costs and fees.

For further advice on Contract and Procurement Procedure Rules contact Procurement Lincolnshire

Telephone: 01522 553649

E-mail: procurement.lincolnshire.co.uk

Website: www.procurementlincolnshire.co.uk

 

View the Contract and Procurement Procedure Rules - Flowchart here (PDF , 12KB) 

 

Section 1 - Scope of Contract And Procurement Procedure Rules

1. Basic Princples

1.1 All purchasing or disposal procedures must:

§ Follow the EU procurement principles by being open, fair, transparent and proportional;

§ Achieve Best Value for public money spent;

§ Be consistent with the highest standards of integrity;

§ Ensure fairness in allocating public contracts;

§ Comply with all legal requirements;

§ Ensure that Non-Commercial Considerations do not influence any Contracting Decision;

§ Comply with the Council's policies;

§ Comply with the Council's corporate and departmental aims;

§ Comply with the Council's Sustainable Procurement Strategy.

1.1.1 Further:

§ Grant money received must be spent in line with these Contract and Procurement Procedure Rules unless the grant conditions state otherwise;

§ The purchase is legitimate, lawful and within the budget and policy framework;

§ All goods, services and the carrying out of works are ordered in accordance with Contract and Procurement Procedure Rules, Financial Regulations and with all UK and EU binding legal requirements;

§ The purchase is authorised by the appropriate person and correctly recorded;

§ Goods, services and the carrying out of works received meet the requirements of the authorised order;

§ Payments are only made for goods, services and the carrying out of works received at the correct price, quantity and quality standards;

§ Self-authorisation of payments is restricted in line with schemes of delegation;

§ The budget holder monitors all expenditure through their budget;

§ Payments are recorded accurately in the Council's account on a timely basis;

§ Processes are in place to maintain the security and integrity of data for transacting business electronically.

Contract and Procurement Procedure Rules must be strictly complied with. They are minimum requirements. A more thorough procedure may be appropriate for a particular contract.

2. Responsibilities

2.1 Head of Finance responsibilities:

2.1.1 The Head of Finance has delegated responsibility for ensuring that procedures for procurement are sound and properly administered.

2.1.2 The Head of Finance is responsible for ensuring all income and expenditure is lawful.

2.2 Chief Officer responsibilities:

2.2.1 Chief Officers are responsible for ensuring that staff are aware of their responsibilities under these procedures and receive adequate training and guidance.

2.2.2 Chief Officers are responsible for consulting with the Head of Finance and seeking approval on any matters liable to affect the Council's finances materially.

2.2.3 Chief Officers are responsible for establishing the Scheme of Delegation for their Services. The Scheme of Delegation will detail where decision making has been delegated to members of staff and the financial parameters of that delegation. Ensure that their staff comply with Procedure Rule 2.4.

2.2.4 Ensure all staff complete a Contract Register Form to record all approved exemptions and contracts with a Total Contract Value of £75,000 and above including any changes over the contract life e.g. extensions (for the appointment of consultants all exemptions and contracts must be recorded on the Contracts Register Form no matter of the value).

2.2.5 Keep a register of:

§ Contracts completed by signature (rather than the Council's seal - See Procedure Rule 16.6.4) and arrange their safekeeping on Council premises.

§ Exemptions recorded under Procedure Rule 3.1. The use of exemptions will be monitored by the Monitoring Officer.

2.3 Officer responsibilities:

2.3.1 The Officer responsible for purchasing or disposal must comply with these Contract and Procurement Procedure Rules, Financial Regulations, and with all UK and EU binding legal requirements.

2.3.2 The Officer must have regards to the guidance in the Procurement Guide and the principles of the Council's Sustainable Procurement Strategy.

2.3.3 The Officer must check whether a suitable Corporate Contract or Framework Agreement (including ESPO) exists before seeking to let another contract. Where a suitable Corporate Contract or Framework Agreement exists, these must be used unless there is a good reason not to and these reasons must be recorded.

2.3.4 The Officer must complete a Contract Register Form to record all approved exemptions and contracts with a Total Contract Value of £75,000 and above including any changes over the contract life e.g. extensions.

2.3.5 The Officer must keep the records required by Procedure Rule 6.

2.3.6 Tender procedures must be conducted in accordance with procedures set out in the Invitation to Tender.

2.3.7 Officers must also ensure that agents acting on their behalf also comply with Contract Procedures Rules, Financial Regulations, and with all UK and EU binding legal requirements.

2.3.8 Officers must take all necessary professional procurement, legal and financial advice.

2.3.9 When an employee, either of the Council or of a Economic Operator, may be affected by any transfer arrangements, Officers must ensure that the Transfer of Undertaking (Protection of Employment) (TUPE) issues are considered and obtain legal advice before proceeding with inviting Tenders or Quotations.

3. Exemptions, Collaborative an E-Procurement Arrangements

3.1 Exemptions:

No exception to these procedure rules can be made unless authorised by the Chief Executive or a Director of the Council, following consultation with the Monitoring Officer and the appropriate portfolio holder or (in his/her absence) the Leader or Deputy Leader of the Council, and only in exceptional circumstances. Where the Chief Executive or a Director authorises an exception the Chief Executive/Director shall ensure that the Chairman and Vice-Chairman of the Performance Monitoring Panel are notified of the exception, and that the details of the exception are entered into a register which shall be kept by the Head of Customer, Legal and Member Services. The Chief Executive/Director shall record (i) which member was consulted on the proposed exception, (ii) the date on which the consultation took place, (iii) the outcome of that consultation, (iv) the reasons why an exception to the procedure rules was considered necessary and (v) the date on which the Chairman and Vice-Chairman of the Performance Monitoring Panel were notified of the decision. Exceptions to the procedure rules may not be made retrospectively.

For the permitted exemptions that apply to the competitive Tendering Procedure, please refer to paragraph 11.0.

3.1.1 Exemptions are provided for in very exceptional circumstances where it is necessary because of an unforeseen emergency involving immediate risk to persons, property, and serious disruption to Council services or where a Chief Officer believes an alternative route to normal tendering procedures is required. It is not a substitute for instances where procurement planning has not been exercised and Officers find themselves with insufficient time to undertake a competitive process.

3.1.2 In these exceptional circumstances a Chief Officer has the power, to approve an alternative procurement route where the contract has a value between £10,001 and £75,000; an Executive Portfolio Holder has the power to approve an alternative procurement route for contracts with a value between £75,001 and £250,000 and the Executive has the power to approve an alternative procurement route for contracts with a value over £250,000.

3.1.3 An exemption under this Procedure Rule 3 allows a contract to be placed by direct negotiation with one or more Economic Operator rather than in accordance with Procedure Rule 8. No exemptions can be used if the EU Procurement Directive applies except on the advice of Legal Services Lincolnshire.

3.1.4 All exemptions, and the reasons for them, must be recorded using the form in the Procurement Guide. Exemptions must be recorded on the Corporate Contracts Register.

3.1.5 Financial Advisors must report on the use of all exemptions to the Monitoring Officer.

3.2 Collaborative Arrangements:

3.2.1 In order to secure Value for Money the Council may enter into collaborative procurement arrangements.

3.2.2 All purchases from ESPO are deemed to comply with Contract and Procurement Procedure Rules and no exemption is required.

3.2.3 Any contracts entered into through collaboration with other Local Authorities or other public bodies e.g. Health Authorities, where a competitive process has been followed that complies with their equivalent to the Contract and Procurement Procedure Rules of the leading purchasing organisation (but does not necessarily comply with this Council's Procedure Rules), will be deemed to comply with these Contract and Procurement Procedure Rules and no exemption is required. However, advice may be sought from your Procurement Resource.

3.3 E-Procurement:

3.3.1 The use of e-procurement does not negate the requirements to comply with all elements of Contract and Procurement Procedure Rules, particularly those relating to competition and Value for Money.

3.3.2 Electronic tendering is the preferred method of carrying out a Tender exercise. Advice on this is available from your Procurement Resource.

4. Contracts

4.1 All contracts must comply with Contract and Procurement Procedure Rules. A contract is any arrangement made by, or on behalf of, the Council, including schools, for the carrying out of works or for the supply of goods or services. These include arrangements for:

§ The supply or disposal of goods;

§ The hire, rental or lease of goods or equipment;

§ Execution of works;

§ The delivery of services, including (but not limited to) those related to:

     o Financial and consultancy services;

4.2 Contracts do not include:

§ Contracts of employment which make an individual a direct employee of the authority;

§ Agreements regarding the acquisition, disposal, or transfer of land (for which Financial Regulations shall apply) or

§ Grant Award.

Section 2 - Common Requirements

5. Steps Prior to Purchase

5.1 Before beginning a purchase the Officer responsible for it must appraise the purchase and confirm certain matters set out in this clause 5. The Officer should consider:

§ Appraising the need for the expenditure and its priority e.g. has a business case been developed which sets out the service objectives, the criteria for evaluation and the options for delivery;

§ Defining the objectives of the purchase;

§ Consider the risks associated with the purchase over its life and how to manage them;

§ Considering what procurement method is most likely to achieve the purchasing objectives, including internal or external sourcing or sourcing through ESPO, and collaboration with other purchasers;

§ Consulting users as appropriate about the proposed procurement method, contract standards, and also performance and user satisfaction monitoring; and

§ Selecting the most appropriate procurement method.

The Officer must confirm that:

§ The budget is available in line with the Council's policy and budget framework;

§ Where the Total Contract Value exceeds £75,000 an appraisal has been set out in writing in accordance with the Financial Regulations;

§ There is member or delegated approval for the expenditure and the purchase accords with the approved policy framework and the scheme of delegation as set out in the Constitution.

§ Prior Information Notices, where required for the EU Procurement Directive, have been placed in the Official Journal of the European Union (OJEU) and copied to Procurement Lincolnshire.

5.2 Officers approach to the appraisal tasks should be proportionate to the complexity and value of the purchase and take into account any guidance in the Procurement Guide.

5.3 Officers shall ensure that where proposed contracts, irrespective of their Total Contract Value, may be of interest to potential Applicants located in other member states of the EU appropriate accessible advertising must take place. Generally, the greater the interest of the contract to such potential Applicants the wider should be the coverage of the advertisement. Advertisements must always be placed on a suitable web based publications e.g. Source Lincolnshire, Supply2Gov and may also be placed on:

§ National official journals; and/or

§ (OJEU) [Even if there is no requirement within the EU Procurement Directive].

5.4 In selecting an Economic Operator, an existing partnership or contractual arrangement should be considered as the first option. For example, the Officer must check whether a suitable Corporate Contract or Framework Agreement (including ESPO) exists before seeking to let another contract. Where a suitable Corporate Contract or Framework Agreement exists, these must be used unless there is a good reason not to and these reasons must be recorded.

5.5 The Officer must obtain from Procurement Lincolnshire a contract reference number prior to the procurement exercise for contracts above £75k.

6. Records and Debriefing Applicants

6.1 Where the Total Contract Value is between £10,000 and £25,000, the following documents must be kept in accordance with the retention policy:

§ Requests for quotes and the Quotations;

§ A record

     o of any exemptions and reasons for it

     o of the reason if the lowest price is not accepted;

§ Written records of communications with the successful Economic Operator or an electronic record if a written record of the transaction would normally not be produced.

6.2 Where the Total Contract Value exceeds £25,000 and is below £75,000, the Officer must record:

§ The method for obtaining bids (see Procedure Rule 8.1);

§ Any Contracting Decision and the reasons for it;

§ Any exemption under Procedure Rule 3 together with the reasons for it;

§ The Award Criteria in descending order of importance;

§ Tender documents sent to and received from Applicants/Tenderers;

§ Pre-tender market research;

§ Clarification and post-tender negotiation (to include minutes of meetings);

§ The contract documents;

§ Post-contract evaluation and monitoring;

§ Written records of communications with Applicants and with the successful Economic Operator throughout the period of the contract.

6.3 Written records required by Procedure Rule 6.2 that do not have the Council's Common Seal must be kept in line with the Council's Retention Policy.

6.4 Applicants/Tenderers must be notified simultaneously or as soon as possible of any Contracting Decision. The notification must be in writing where the Total Contract Value exceeds £25,000. If a Tenderer requests in writing the reasons for a Contracting Decision, the Officer must give the reasons in writing within 15 days of the request (see further Procedure Rule 15.3).

6.5 Where the Total Contract Value exceeds £75,000 and that has the Council's Common Seal it must be kept in line with the Council's Retention Policy.

6.6 For Public Private Partnership (PPP) schemes including Private Finance Initiative (PFI) schemes, substantial documentation must be held. Advice should be sought from Legal Services Lincolnshire before the disposal of any documents relating to PFI schemes.

7. Approved Lists and Framework Agreements

7.1 Approved Lists:

7.1.1 Approved Lists may be used to select Applicants as an alternative to advertisement where the Total Contract Value for a contract exceeds £75,000 (see Procedure Rule 5.3). They may also be used to select Applicants where the Total Contract Value is less. Approved Lists should be used where recurrent transactions of a similar type are likely but where such transactions need to be priced individually and cannot easily be aggregated and priced in a single tendering exercise. Approved Lists cannot be used where the EU Procurement Directive applies.

7.1.2 Chief Officers shall draw up in consultation with their Procurement Resource:

§ Approved Lists of Economic Operators ready to perform contracts to supply goods or services of particular types including without limitation on the basis of agreed contract terms; and

§ Criteria for Shortlisting from the lists.

7.1.3 No person may be entered on an Approved List until there has been an adequate investigation into both their financial and technical ability to perform the contract, unless such matters will be investigated each time bids are invited from that list.

7.1.4 Approved Lists must be drawn up after an advertisement inviting applications for inclusion on the list. The advertisement must be placed to secure widest publicity among relevant Economic Operators throughout all member states of the EU. Persons may be entered on a list between the initial advertisement and re-advertisement provided the requirements of Procedure Rule 7.1.3 are met.

7.1.5 The list and shortlisting criteria must be reviewed at least annually and re-advertised at least every three years. For clarification review means:

§ The reassessment of the financial, technical ability and performance of those Economic Operators on the list unless such matters will be investigated each time bids are invited from that list, and

§ The deletion of those Economic Operators no longer qualified, with a written record kept justifying the deletion.

On re-advertisement, a copy of the advertisement must be sent to each person on the list, inviting them to reapply.

7.1.6 All Approved Lists shall be maintained in an open, fair and transparent manner and must be open to public inspection.

7.1.7 Lists maintained by third parties e.g. Construction Line, will be deemed to be an Approved List for the purpose of these Contract and Procurement Procedure Rules and shall not be subject to the requirements of Regulation 7.1.2 and 7.1.6 inclusive.

7.2 Framework Agreements:

7.2.1 The term of Framework Agreements (including any extension period) should not exceed 4 years, except in cases duly justified by Contracting Authorities and where an EU Procurement Directive applies and was included in the contract notice.

7.2.2 A Framework Agreement may be awarded to either a single Economic Operator, or three or more. Contracts based on Framework Agreements may be awarded either:

§ By applying the terms laid down in the Framework Agreements (where such terms are sufficiently precise to cover the particular call-off) without reopening competition; or

§ Where the terms laid down in the Framework Agreements are not precise enough or complete for the particular call-off, by holding a mini competition in accordance with the following procedure:

a) Inviting the Economic Operators within the Framework Agreements who are capable of executing the subject of the contract to submit written Tenders.

b) Fixing a time limit, which is sufficiently long, to allow Tenders for each specific contract to be submitted, taking into account factors such as the complexity of the subject of the contract.

c) Tenders shall be submitted in writing, and their content shall remain confidential until the stipulated time limit for reply has expired.

d) Contracting Authorities shall award each contract to the Tenderer who has submitted the best Tender on the basis of the award criteria set out in the specifications of the Framework Agreement.

7.3 Joint Commissioning:

7.3.1 When the Council jointly commissions services with other public sector bodies such as Health Authorities, or other Local Authorities, the following procedures shall apply:

§ The Authorities concerned will decide which of them is to act as the lead authority for the purposes of the particular service that is to be commissioned.

§ The procedures for the procurement of services of the lead authority shall be followed.

Section 3 - Conducting a Purchase or Disposal

8. Financial Thresholds, Asset Disposal and Appointment of Consultants

The Officer must calculate the Total Contract Value.

The following procedures apply where there are no other procedures, which take precedence. If in doubt, Officers must seek the advice of their Procurement Resource.

8.1 Purchasing - Competition Requirements:

8.1.1 Where the Total Contract Value for a purchase is within the values in the first two columns below, the Award Procedure in the third column must be followed. Selection shall be conducted by the person(s) specified in the fourth column.

Total Contract Value		Award Procedure Based On	Selection
From	To
£0	£5,000	One Oral Quotation	Officer
£5,001	£10,000	Minimum of two written Quotations	Officer
£10,001	£25,000	Minimum of three written Quotations	Officer
£25,001	£75,000	Three Written Quotations Based on a RFQ document with simplified T&Cs	Evaluation Panel
£75,001	EU Threshold	Full Tender Process	Evaluation Panel (It is advisable to include a Finance Officer)
EU Threshold	Above	Full Tender Process	Consult with your Procurement Resource - See Procedure Rule 8.1.4

8.1.2 In addition, other steps must be taken as necessary to obtain adequate competition and Value for Money. There is further guidance on disposals, please speak to your service accountant.

8.1.3 An Officer must not enter into separate contracts nor select a method of calculating the Total Contract Value in order to minimise the application of Contract Procedures Rules.

8.1.4 Where the EU Procurement Directive is required the Officer shall consult the guidance on the EU Public Procurement Rules in the Procurement Guide or advice can be sought from your Procurement Resource to determine the method of conducting the purchase.

8.1.5 For avoidance of doubt these rules include Procurement Cards and Petty Cash as methods of payment.

8.2 Assets for Disposal:

8.2.1 In accordance with Financial Procedures prior authorisation for disposal must be obtained for the assets. These must be sent to public auction except where better Value for Money is likely to be obtained by inviting Quotations and Tenders (These may be invited by advertising on Source Lincolnshire internet site).

8.2.2 In the latter event, the method of disposal of surplus or obsolete stocks/stores or assets other than land must be determined as follows:

8.2.3 Refer to the Financial Regulations in relation to receipt of income.

TOTAL CONTRACT VALUE

PROCEDURE

Up to £100                                             One Quotation

£100.01 to £10,000                                 Three Written Quotations

£10,000.01 to £75,000                            Four Written Quotations

£75,000.01 and above                            ITT to at least 4 Applicants

8.3 The Appointment of Consultants to Provide Services:

The following procedure applies where in the opinion of the Chief Officer because of the specialist nature of the services required, it is necessary to appoint a Consultant to provide the services to the Council. This procedure does not apply when:

§ The estimated Total Contract Value of the services is equal to or exceeds the EU Threshold for the supply of services in which case the EU procurement procedure must be followed, or

§ When the services required may be obtained through ESPO.

8.3.1 The Officer must submit a report to the Corporate Director setting out:

§ The nature of the services for which the appointment of a Consultant is required;

§ The estimated Total Contract Value of the services;

§ That no employee of the Council has been identified with the capacity or availability to undertake the services.

8.3.2. If the Chief Officer is of the opinion that in the interest of Best Value for the provision of the services it is necessary or expedient to secure the appointment of a Consultant to provide those services they shall record that opinion in writing and authorise the Officer to engage a Consultant using an established Corporate Contract or Framework Agreement (including ESPO) or where the nature of the services required are so specialist and no suitable Corporate Contract or Framework Agreement is in place a formal tendering process will follow receipt and evaluation of the business case proposals. Where the Total Contract Value is estimated to be above £75,000 the Contract and Procurement Procedure Rules are set out in Procedure Rule 11 onwards and should be followed. Where the Total Contract Value is between £10,000 and £75,000 the process is as follows:

8.3.3. The Officer must submit invitations to provide the services to at least four Applicants who are experienced in providing services of a similar type to the services required.

8.3.4. A RFQ/Invitation to Tender for the provision of consultancy services must include:

a) A specification for the services;

b) A questionnaire seeking details of the Applicant's experience in providing similar services;

c) The Council's standard contractual terms on which it is intended to appoint the Consultant to provide the services; and

d) The Award Criteria.

8.3.5 If the Officer is of the opinion that the nature of the services required is so specialist that fewer than four Applicants would be able to provide the services the Officer must record in writing the reason why the services are so specialist and, subject to the approval of the Head of Finance, may send the invitation to provide the services to two/three Applicants only.

8.3.6 Responses to the invitation to provide the services shall be submitted to the Officer by the appointed time and shall be opened by the Officer and a representative of the Chief Officer. The responses shall be evaluated in accordance with the Award Criteria to ascertain which response is most economically advantageous. The evaluation shall be recorded in writing and the record shall be signed by the Officer.

8.3.7 The Officer shall submit the Evaluation Report to the Chief Officer and recommend the appointment of the Applicant who has submitted the most economically advantageous response.

8.3.8 The Chief Officer may accept or reject that recommendation and shall record their reason for doing so in writing and sign and date that record.

8.3.9 Prior to appointing the chosen Consultant to provide the services the Officer shall ensure that:

a) Two satisfactory references have been obtained;

b) A bankruptcy search has been undertaken against the name of the Consultant with a satisfactory result;

c) The independent Medical Officer is satisfied of the Consultant's medical fitness to provide the services;

d) The employment/tax status of the consultant has been confirmed.

9. Pre-Tender Market Research and Consultation

9.1 In some instances, particularly in the case of specialist work it may be necessary to advertise for expressions of interest. The basic principles of equal treatment should be applied. A deadline for receipt of expressions of interest should be included in any advert.

9.2 Nothing in these procurement arrangements preclude informal contact with prospective Economic Operators for discussions prior to formal tendering procedures (publication of the contract notice). Economic Operators with whom such preliminary discussions take place should be made aware at the outset that selected Economic Operators might ultimately be invited to submit formal competitive tenders. In addition the Officer responsible for the purchase:

§ May consult potential Economic Operators prior to the issue of the Invitation to Tender in general terms about the nature, level and standard of the supply, contract packaging and other relevant matters provided this does not prejudice any potential Applicant, but

§ Must not seek or accept technical advice on the preparation of an Invitation to Tender or Quotation from anyone who may have a commercial interest in them, if this may prejudice the equal treatment of all potential Applicants or distort competition. Pre-tender enquiries may be carried out prior to the issue of an Invitation to Tender. The purpose is to ensure that an effective Invitation to Tender is prepared, for example, where the technical specification is so complex that it cannot be drawn up without information from prospective operators. All potential operators must be treated equally within this process;

§ May seek advice from their Procurement Resource.

10. Standards and Award Criteria

10.1 Where appropriate the Officer must ascertain what are the relevant British, European or International Standards which apply to the subject matter of the contract. The Officer must include those standards which are necessary and describe the required quality. Legal Services Lincolnshire must be consulted if the Officer proposes to use standards other than European standards.

10.2 The Officer must define Award Criteria appropriate to the purchase. Award Criteria must be designed to secure a sustainable outcome which represents Value for Money for the Council. The basic criterion shall be:

§ "Most economically advantageous" offer (where considerations other than price also apply) or;

§ "Lowest price".

10.3 If the first criterion is adopted, it must be further defined by reference to sub-criteria. Award Criteria and sub-criteria may refer only to relevant considerations. These may include price, service, quality of goods, running costs, technical merit, previous experience, delivery date, cost effectiveness, quality, relevant environmental, social and economic considerations, aesthetic and functional characteristics (including security and control features), safety, after-sales services, technical assistance and any other relevant matters.

10.4 All Award Criteria, and if used sub-criteria, must be weighted.

10.5 Award Criteria must not include:

§ Non-Commercial Considerations (as defined in the definitions appendix);

§ Include matters which discriminate against Economic Operators from the European Economic Area or signatories to the Government Procurement Agreement.

11. Invitations to Tender/Quotations

11.1 The Invitation to Tender or Quotation must include a specification. The specification must describe clearly the Council's requirements in sufficient detail to enable the submission of competitive offers. In preparing specifications the Officer must have regard to any guidance in the Procurement Guide.

11.2 The Invitation to Tender or Quotation must state that the Council is not bound to accept any Tender or Quotation.

11.3 Except where the Open Procedure applies, all Applicants invited to Tender or quote must be issued with the same information at the same time and subject to the same conditions. Evidence should be retained in respect of despatch of documents (e.g. recorded delivery/acknowledgement slip). Any supplementary information must be given on the same basis.

11.4 The Invitation to Tender must specify the Award Procedure and forbid submission of Tenders by fax or email.

11.5 Where any prior advertisement has not defined the Award Criteria, Invitations to Tender must state the Award Criteria in weighted terms and if possible in descending order of importance.

11.6 The Invitation to Tender must include a form of Tender, Tendering Certificate and instructions to Applicants using relevant appendix from the Procurement Guide. Where the Tender is carried out non-electronically Procedure Rules 11.6.1 to 11.7 apply.

11.6.1 The Invitation to Tender shall state that no Tender will be considered unless contained in a securely sealed envelope on which shall be indicated the name and address of the sender and the word "Tender" followed by the subject to which it relates, such envelope to be enclosed in a second plain securely sealed envelope bearing the word "Tender" followed by the subject to which it relates but not bearing any distinguishing mark or mark to indicate the identity of the sender. The second envelope should be addressed impersonally to the relevant Corporate Director.

11.6.2 The instructions should be clear on the closing date and time for receipt of Tenders.

11.6.3 Elected Members, employees or Consultants employed by the Council who have a direct or indirect interest in the contract shall not be supplied with or given access to any Tender documents, contracts or other information relating thereto without the authority of the relevant Chief Officer.

11.6.4 If post-tender negotiations are anticipated, the Tender documents should provide advance notice of this likelihood.

11.6.5 Any Tender amendments or changes to instructions should be issued to all Applicants on a formal basis.

11.6.6 Applicants must be informed that if a private courier firm is to be engaged to deliver a Tender package the outer packaging must comply with the rules above. It is acknowledged that this may not be achievable in the case of Tenders received from abroad.

11.6.7 The Invitation to Tender should normally include the contract terms (see Procedure Rule 16).

11.7 The Tender Control Document must be completed with the names of the Applicants invited.

12. Shortlisting

12.1 Where Approved Lists are used, Shortlisting may be carried out by the Officer in accordance with Shortlisting criteria drawn up when the Approved List was complied (see Procedure Rule 7). However, where the EU Procurement Directive applies, Approved Lists may not be used in this way.

12.2 Any Shortlisting must have regard to financial and technical standards relevant to the contract. Special rules apply in respect of the EU Procurement Directives (see guidance in the Procurement Guide).

12.3 Officers may decide not to Shortlist but to send Invitations to Tender and to evaluate all possible Applicants.

12.4 The Officers responsible for Shortlisting are specified in Procedure Rule 8.1.

13. Submission, Receipt and Opening of Tenders

13.1 Period for Applicants' response:

Electronic tendering is the preferred method of carrying out a Tender exercise. This does include submission, receipt and opening of Tenders.

Applicants invited to respond must be given an adequate period in which to prepare and submit a proper or Tender, consistent with the urgency of the contract requirement. Usually a minimum of at least four weeks should be allowed for submission of Tenders.

The EU Procurement Directive lays down specific time periods (see guidance in the Procurement Guide).

13.2 Receipt and Custody of Tenders:

Where the Tender is carried out non-electronically Procedure Rules13.2.1 to 13.2.5 apply.

An Officer should be nominated to receive any unopened Tenders. This Officer has responsibility for the custody and security of all Tenders and should be clear about this responsibility. Services' should ensure that arrangements are in place to ensure the outer envelope is endorsed with the time, date, and place of receipt and initialled by the receiving Officer.

13.2.1 Tenders may only be opened after the deadline for their receipt. If all potential Tenders have not been received, Tender opening may be delayed until after the mail has been received on the following working day. This will allow for the receipt of Tenders that may have been despatched in sufficient time to meet the deadline but have been unavoidably delayed in transit. Such Tenders may be considered where there is evidence of posting in time for delivery and other Tenders have not been opened. Potential Tenderers should not be contacted to establish whether a Tender is to be submitted. It is, however acceptable to request Tenderers, as part of the invitation, to inform the Council if they do not intend to Tender for a particular contract as this may eliminate the need to delay Tender opening for a day.

13.2.2 Late Tenders not meeting the above criteria must not be accepted without the advice of your Procurement Resource. The outer envelope only should be opened to establish the identity of the sender. On no account should the inner envelope (i.e. that containing the Tender) be opened. The outer envelope that should be endorsed with the date, time and place of receipt, together with the unopened inner envelope should be returned to the sender.

13.2.3 All Tenders should be opened by two Officers authorised to do so who are not concerned with the letting of the contract.

13.2.4 The Officers should complete and sign the Tender Control Form as an accurate record of the exercise.

13.2.5 The opening Officers should ensure the following action is taken:

§ Every page of the Tender showing a price/rate must be initialled by both Officers;

§ Any amendments (including the use of any correction fluid) must be initialled by both Officers;

§ The total (where there is one) or a note "see Tender" (where there is no total) must be made on the Tender Control Form;

§ A note "no Tender received" must be made on the Tender Control Form when appropriate;

§ A note "late Tender" must be made on the Tender Control Form when appropriate followed by the procedure above;

§ The Tender Control Form must be signed by both Officers;

§ Ensure that the number of Tenders received as stated on the Tender Control Form is the total number of Tenderers submitting a Tender;

§ The Tender Control Form and all the Tenders (including envelopes) are held secure until handed over to the delegated contract officer.

13.2.6 Tenders by fax must be rejected.

13.3 Alteration of Opened Tenders:

13.3.1 Tenderers are not allowed to alter their final submission or Best and Final Offer after the date set for the receipt of their submission. An Officer should be identified whom has the delegated authority to agree corrections to bill of quantity type Tenders provided that:

§ The errors made appear to be reasonable and genuine and are such that they can be corrected without further contact with the Tenderers;

§ Normally such errors will be arithmetic, i.e. errors of summation, extension, carry forward etc.

§ No rates may be altered, deleted or added but Tenderers may be allowed to confirm an assumed rate calculated from the total charge against an item where no rate is shown;

§ Under no circumstances should Tenderers be invited to provide supplementary values for inclusion in a Tender;

§ The approval of the delegated Officer should be obtained and the nature of the alteration clearly recorded;

§ All Tenders should be similarly checked in order to ensure consistency of treatment.

13.3.2 After following these procedures, the successful Tenderer must be given details of any proposed alterations and afforded an opportunity of accepting the alterations or otherwise withdrawing the Tender. If the Tenderer accepts the alterations their written approval should be obtained. If the Tenderer withdraws their tender, the next Tenderer in competitive order is to be dealt with similarly.

14. CLARIFICATION PROCEDURES & POST-TENDER NEGOTIATION

14.1 Providing clarification of an Invitation to Tender to potential or actual Applicants or seeking clarification of a Tender whether in writing or by way of a meeting is permitted.

14.1.1 If there appears to be an error in a bid or supporting information, the Tenderer must be invited to confirm or withdraw the bid. Where the error relates to the Tender total as calculated from tendered rates and variable quantities, the bid will be regarded as the Tender total bid and the rate adjusted accordingly. The Tenderer will be invited to confirm or withdraw the bid and resulting rate.

14.1.2 Where examination of tenders reveals errors or discrepancies, other than those set out in Procedure Rule 14.1.1, which would affect the Tender figure in an otherwise successful Tender, the Tenderer should be given the opportunity of confirming or withdrawing their offer. If the Tenderer withdraws, the next Tender in competitive order should be dealt with similarly.

14.2 Post-tender negotiation means negotiations with any Tenderer after submission of a Tender/Best and Final Offer and before the award of the contract with a view to changing the terms of the Tender in particular obtaining adjustments in price, delivery or content. When following EU Procurement Directives post-tender negotiation is not allowed. Care must be taken to ensure that clarification of issues does not turn into negotiation. For detailed advice contact your Procurement Resource.

14.2.1 Where post-tender negotiation results in a fundamental change to the specification or contract terms the contract must not be awarded but re-tendered.

14.3 Negotiations with Tenderers or Economic Operators should only occur where permitted by Procedure Rule 14.2 in the following circumstances:

§ After adhering to normal competitive tendering procedures, with the prospective Economic Operator submitting the most economically advantageous tender/lowest price tender depending on the award criteria provided that it can be shown in the Council's best interests;

§ By direct invitation to a single, prospective Economic Operator where exceptions to normal tendering procedures have been approved in line with these Contract and Procurement Procedure Rules.

14.4 Procedures for conducting negotiations should be as follows:

§ With the approval of the Chief Officer in consultation with your Procurement Resource;

§ At least two Officers designated by the Chief Officer must be present at all negotiations or any meetings where the contract value is £25,000 and above;

§ A written record of negotiations is kept. The record to include the date, time, place and persons present at any meetings, the points discussed and the conclusions reached and are signed as a true record by all Officers present;

§ The Economic Operator in advance of any contract/order must then confirm any negotiated price in writing;

§ Where the contract value is above £75,000 your Procurement Resource must be consulted

     o Wherever it is proposed to enter into post-tender negotiations; and

     o About whether negotiation is to be with all Tenderers;

§ Post-tender negotiation must only be conducted in accordance with the guidance in the Procurement Guide.

15. Evaluation and Award of Contract

15.1 Apart from the debriefing requirements or permitted by Procedure Rule 15:

§ Confidentiality of Quotations, Tenders and the identity of Applicants must be preserved at all times; and

§ Information about one Applicant's response must not be given to another Applicant.

15.2 Contracts must be evaluated, recorded and awarded in accordance with the Award Criteria.

15.2.1 Tenders may be evaluated on the basis of price, or a mixture of price, technical and quality. The basis on which the Tender will be evaluated must be determined before Tenders are invited and should be included as part of the Tender information. This includes the contract Award Criteria and any sub-criteria and their respective weightings.

15.2.2 Longer-term partnership evaluations may include price, technical, quality as well as the need to demonstrate adding value to the Council, acceptance of a portion of risk, and flexibility to meet changing circumstances. Key success factors should be identified and incorporated into the selection process and partnering agreement.

15.2.3 All Tenderers should be notified in the quotation/tender that no work or services may be commenced or goods/materials ordered until a formal contract has been signed and/or an official order has been raised.

15.2.4 For large contracts or long term partnerships the expectation is that Officers would seek assurance that Economic Operators are complying with the Public Interest Disclosure Act e.g. provision of a "whistleblowing" policy within their organisation. Also those Economic Operators are aware and practise the principles of good corporate governance.

15.3 Where the Total Contract Value is over the EU Threshold, the Officer must inform all Tenderers of their intention to award the contract to the successful Tenderer. The Officer must allow a period of not less than 10 working days after announcing their Intention to Award to provide unsuccessful Tenderers with a period in which to challenge the decision before the Officer awards the contract. If the decision is challenged by an unsuccessful Tenderer then the Officer shall not award the contract and shall immediately seek the advice of their Procurement Resource. In cases of unforeseen emergency outside the control of the Council and where the 10 day standstill period would cause immediate risk to persons, property or serious disruption to Council services the Chief Officer may give approval to waive the 10 day standstill period.

15.4 The Officer shall debrief in writing all those Tenderers who submitted a bid why they were unsuccessful and provide information about the characteristics and relative advantages of the leading bidder. This should normally include:

§ How the award criteria were applied;

§ The prices or range of prices submitted, in either case not correlated to Tenderers' names; and

§ The names of Tenderers where there were three or more Tenderers.

No other information should be given without taking the advice of your Procurement Resource.

15.5 If requested, the Officer may also give the debriefing information required by Procedure Rule 15.3 to Applicants who were deselected in a pre-tender shortlisting process.

Section 4 - Contract and Other Formalities

16. Contract Documents

16.1 Every contract with a Total Contract Value of £75,000 and above must be recorded on a Contract Register Form and forwarded to Procurement Lincolnshire for inclusion on the Corporate Contracts Register including any changes over the contract life e.g. extensions

16.2 Every contract must be recorded in writing (this may include the relevant documents e.g. Procurement Card log. Where an order is placed using an electronic system e.g. an E-Marketplace or via a Procurement Card it must state clearly:

§ What is to be supplied (description and quality);

§ Payment provisions (amount and timing).

16.3 Where possible every contract over £10,000 must state clearly:

§ When the Council will have the right to terminate the contract;

§ That the contract is subject to the law as to prevention of corruption (Procedure Rule 18);

§ The Council's standards terms and conditions or order form must be used.

16.4 Every contract over £25,000, (or where relevant for lower values) must state clearly:

§ That the Economic Operator may not assign or sub-contract without prior written consent;

§ Any Insurance requirements;

§ Health and Safety requirements;

§ Ombudsman requirements;

§ Data Protection requirements if relevant;

§ That Charter Standards are to be met if relevant;

§ Race Relations requirements;

§ Disability Discrimination Act requirements;

§ Freedom of Information Act requirements;

§ That agents must comply with the Council's Contract and Procurement Procedure Rules relating to contracts (where agents are used to let contracts);

§ A right of access to relevant documentation and records of the Economic Operator for monitoring and audit purposes if relevant;

§ Price mechanism including inflationary issues where appropriate;

§ Future service performance measures and efficiency targets;

§ Any other relevant legislation e.g. Section 11 of the Children's Act;

§ Business Continuity requirements.

16.5 The advice of your Procurement Resource may be sought for the following contracts:

§ Those involving leasing arrangements (must receive the approval of Head of Finance);

§ Where it is proposed to use the Economic Operator's own terms;

§ Where the Total Contract Value exceeds £75,000;

§ Those which are complex in any other way.

16.6 Contract Formalities

16.6.1 Contracts must be completed as follows:

Total Contract Value	Method of Completion	By
Up to £25,000	Signature	In accordance with Scheme of Delegation
£25,001 to £75,000	Signature	In accordance with Scheme of Delegation
Above £75,000	Completion of a Contract Register Form followed by Sealing	See Regulation 16.6.4

16.6.2 All contracts must be concluded formally in writing before the supply, service or construction work begins, except in unforeseen emergencies, and only with the written consent of the Chief Officer (see Procedure Rule 15.3). An award letter is insufficient. Each Chief Officer has the responsibility to ensure that a Scheme of Delegation is in place and contracts should be signed in accordance with this scheme.

16.6.3 Signature:

The Officer responsible for securing signature of the contract must ensure that the person signing for the other contracting party has authority to do so.

16.6.4 Sealing:

Where contracts are completed by each side adding their formal seal, the fixing of the Council's seal must be witnessed by or on behalf of the South Holland District Council Monitoring Officer or other person authorised by him/her or the Director of Legal Services Lincolnshire. This will only be undertaken following the completion of a Contract Register Form. Every Council sealing will be consecutively numbered, recorded and signed by the person witnessing the seal. The seal must not be affixed without the authority of the Executive, a Committee, or a Chief Officer acting under delegated powers. A contract must be sealed where:

§ The Council may wish to enforce the contract more than six years after its end; or

§ The price paid or received under the contract is a nominal price and does not reflect the value of the goods, services or the carrying out of works; or

§ Where there is any doubt about the authority of the person signing for the other contracting party; or

§ The Total Contract Value exceeds £75,000.

16.6.5 Archiving & Lodgement of Records: The original sealed contract must be deposited, by the Officer, with Legal Services Lincolnshire or SHDC Monitoring Officer (where relevant) with a copy being retained within the relevant service in accordance with the document retention policy.

17. Bonds and Parent Company Guarantees

17.1 The Officer must consult the Head of Finance:

17.1.1 When an Applicant is a subsidiary of a parent company, the Officer does not think a Parent Company Guarantee is necessary and any of the following conditions are satisfied:

§ The Total Contract Value exceeds £250,000, or

§ Award is based on evaluation of the parent company, or

§ There is some concern about the financial stability of the Applicants; and

17.1.2 about whether a Bond is needed:

§ Where the Total Contract Value exceeds £500,000 or

§ Where it is proposed to make staged or other payments in advance of receiving the whole of the subject matter of the contract.

18. PREVENTION OF CORRUPTION

18.1 The Officer must comply with the Employee Code of Conduct and must not invite or accept any gift or reward in respect of the award or performance of any contract:

§ It will be for the Officer to prove that anything received was not received corruptly;

§ High standards of conduct are obligatory. Corrupt behaviour will lead to dismissal and is a crime under the statutes referred to in Contract Procedure Rule 18.2.

18.2 The following clause must be placed in every written Council contract:

"The Council may terminate this contract and recover all its loss if the Contractor, its employees or anyone acting on the Contractor's behalf do any of the following things:

(a) Offer, give or agree to give to anyone inducement or reward in respect of this or any other Council contract (even if the Contractor does not know what has been done); or

(b) Commit an offence under the Prevention of Corruption Acts 1889 to 1916 or Section 117(2) of the Local Government Act 1972; or

(c) Commit any fraud in connection with this or any other Council contract whether alone or in conjunction with Council members, contractors or employees.

Any clause limiting the Contractor's liability shall not apply to this clause".

Section 5 - Contract Management

19. Managing Contracts

19.1 The Head of Service in sponsoring service areas are to name Contracts Managers for the entirety of the contract.

19.2 Contracts Managers must follow the procedures set out in the Council's Procurement Guide.

19.3 All variations to contracts shall be in writing.

20. Risk Assessment & Contingency Planning

20.1 A business case must be prepared for all procurements with a potential value over the EU Threshold. Provision for resources for the management of the contract, for its entirety, must be identified in the business case.

20.2 For all contracts with a value of over £75,000, Contract Managers must:

§ Maintain a risk register (generic register acceptable) during the contract period and review it at least every three months;

§ Undertake appropriate risk assessments;

§ For identified risks, ensure contingency measures are in place;

§ Ensure critical support and maintenance arrangements are documented in the Specification in order to avoid costly post-tender negotiation.

21. CONTRACT MONITORING, EVALUATION AND REVIEW

21.1 All contracts which have a value higher than the EU Threshold limits, or which are high risk, are to be subject to a regular formal review (based on the risk) with the successful Tenderer.

21.2 A Procurement Lincolnshire developed Gateway Review process (a formal review process developed by IDeA) must be applied to all contracts deemed with high risk, high value or high profile. This process must be applied at key stages of major procurements. This will be led by the Council's Procurement Lincolnshire Resource.

21.3 Where a contract is let on the basis of cost/quality criteria, the management processes and procedures accepted through the quality submission must be adhered to for all material/services procured through that contract.

21.4 During the life of the contract the Officer must monitor in respect of:

§ Performance;

§ Compliance with specification and contract;

§ Cost;

§ Any Value for Money requirements;

§ Working practices where appropriate e.g Health and Safety

§ User satisfaction and risk management; and

§ Any additional factors in accordance with any guidance in the Procurement Guide.

21.5 Where the Total Contract Value of the contract exceeds £25,000, the Officer must make a written report evaluating the extent to which the purchasing need and the contract objectives (as determined in accordance with Procedure Rule 5.1) were met by the contract. This should normally be carried out when the contract is completed. Where the contract is to be re-let, a provisional report should also be available early enough to inform the approach to reletting of the subsequent contract.

Section 6 - General

22. Technical Amendments

22.1 In accordance with the Financial Regulations in the Constitution the Head of Finance shall have the power to make amendments from time to time to these Contract and Procurement Procedure Rules.

23. Definitions

"Applicant"	Any person who asks or is invited to submit a Quotation or Tender.
"Approved List"	A list drawn up in accordance with Procedure Rule 7.
"Agent"	A person or organisation acting on behalf of the Council or on behalf of another organisation.
"Award Criteria"	The criteria by which the successful Quotation or Tender is to be selected (see Procedure Rule 10 or 11.5).
"Award Procedure"	The procedure for awarding a contract as specified in Procedure Rule 10).
"Best Value"	The duty, which Part 1 of the Local Government Act 1999 places on local authorities, to secure continuous improvement in the way in which functions are exercised, having regard to a combination of economy, efficiency and effectiveness as implemented by the Council (see also the Procurement Guide with respect to the impact of Best Value in purchasing and disposal). This terminology has now in many instances been superseded with Value for Money.
"Bond"	An insurance policy: If the Economic Operator does not do what it has promised under a contract with the Council, the Council can claim from the insurer the sum of money specified in the Bond (often 10% of the contract value). A Bond is intended to protect the Council against a level of cost arising from the Economic Operator's failure.
"Chief Officer"	The Officers defined as such in the Constitution.
"Code of Conduct"	The code regulating conduct of Officers and Members is defined in the Constitution.
"Collaborative Arrangements"	Use of a framework let by a third party e.g. ESPO or a joint procurement exercise which involves two or more parties.
"Committee"	A committee, which has power to make, decisions for the Council, for example a joint committee with another local authority but not a scrutiny committee.
"Common Seal"	A contract that is signed and sealed as a Deed.
"Constitution"	The constitutional document approved by the Council which: § Allocates powers and responsibilities within the Council and between it and others; § Delegates authority to act to the Executive, Committees, Executive Portfolio Holders and Officers; and § Regulates the behaviour of individuals and groups through rules of procedure, codes and protocols.
"Consultant"	Someone employed for a specific length of time to work to a defined project brief with clear outcomes to be delivered, who brings specialist skills or knowledge to the role, and where the Council has no ready access to employees with skills, experience or capacity to undertake the work. All consultants must conform to the HR tests.
"Contracting Authority"	The organisation letting the contract in question.
"Contracting Decision"	Any of the following decisions: § Composition of Approved Lists § Withdrawal of Invitation to Tender § Whom to invite to submit a Quotation or Tender § Shortlisting § Award of contract § Any decision to terminate a contract.
"Contract Register Form"	A notification form that must be completed for all contracts awarded and when amended and forwarded to Procurement Lincolnshire as stated Procedure Rule 2.4.4 and 16.1.
"Corporate Contract"	A contract let or approved by Procurement Lincolnshire to support the Council's aim of achieving Value for Money. Where a Corporate Contract is in place, the Officer is obliged to use it unless an exemption has been granted under Procedure Rule 3.
"Council"	For the purposes of these Contract and Procurement Procedure Rules, "Council" refers to Lincolnshire County Council.
"Deed"	A signed and usually sealed instrument containing some legal transfer, bargain, or contract.
"Economic Operator"	A contractor, a supplier or a service provider. Any person who offers on the market supplies, services or works and who sought, who seeks, or who would have wished to be the person to whom a public contract is awarded.
"Electronic-Tendering"	A totally secure means to store and transmit all contract/Tender documentation via a secure electronic vault.
"E-Marketplace"	An internet based system that the Council uses which allows commerce between it and a variety of Economic Operators.
"ESPO"	The Eastern Shires' Purchasing Organisation.
"ESPO Contract"	A contract let by ESPO on behalf of the Council to support the Council's aim of achieving Value for Money. Where a suitable ESPO Contract exists, the Officer must use it unless there are auditable reasons for going elsewhere. See also "Framework Agreement".
"EU Procurement Directive"	The main EU legislation that covers public procurement.
"EU Threshold"	The contract value at which the EU public procurement directives must be applied. (See the Procurement Guide for current values.
"European Economic Area"	The members of the European Union, and Norway, Iceland and Liechtenstein.
"Evaluation Panel"	A group of relevant Officer which may include and not limited to Commissioning, Procurement, HR, Finance, Legal and Service Managers.
"Evaluation Report"	A report produced by the Officer detailing the outcome of the evaluation process undertaken, from which a recommendation is put forward for approval.
"Executive"	The Council's Executive as defined in the Constitution.
"Executive Portfolio Holder"	A member of the Executive to whom political responsibility is allocated in respect of specified functions.
"Financial Regulations"	The financial regulations outlining Officer responsibilities for financial matters issued by the Head of Finance in accordance with the Constitution.
"Framework Agreement"	An agreement between one or more contracting authorities and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged.
"Government Procurement Agreement"	The successor agreement to the General Agreement on Trade and Tariffs. The main signatories other than those in the European Economic Area are: the USA, Canada, Japan, Israel, South Korea, Switzerland, Norway, Aruba, Hong Kong, China and Singapore.
"High Profile"	A high-profile purchase is one which could have an impact on functions integral to Council service delivery should it fail or go wrong.
"High Risk"	A high-risk purchase is one which presents the potential for substantial exposure on the Council's part should it fail or go wrong.
"High Value"	A high-value purchase is one where the value is greater than that of the EU Threshold values.
"Invitation to Tender"	Invitation to Tender documents in the form required by these Contract and Procurement Procedure Rules.
"Invitation to Tender by Advertisement/List"	An Invitation to Tender sent to Applicants shortlisted from among either: § Those responding to advertisement of the contract inviting proposals placed in such publications as shall secure widest publicity among relevant Economic Operators; or § Those included on an Approved List in respect of the type of purchase which is the subject of the Invitation to Tender.
"Key Decision"	Decisions that are defined as Key Decisions in the Constitution.
"Nominated Economic Operators and Sub-contractors"	Those persons specified in a main contract for the discharge of any part of that contract.
"Non-Commercial Considerations"	Except as provided below, the following matters are non-commercial considerations: (a) The terms and Conditions of employment by Economic Operators of their workers or the composition of, the arrangements for the promotion, transfer or training of or the other opportunities afforded to, their workforces (See "Workforce Matters"); (b) Whether the terms on which Economic Operators contract with their sub-contractors constitutes, in the case of contracts with individuals, contracts for the provision by them as self-employed persons of their services only; (c) Any involvement of the business activities or interests of Economic Operators with irrelevant fields of Government policy; (d) The conduct of Economic Operators or workers in industrial disputes between them or any involvement of the business activities of Economic Operators in industrial disputes between other persons; (e) The country or territory of origin of supplies to, or the location in any country or territory of the business activities or interests of, Economic Operators; (f) Any political, industrial or sectarian affiliations or interests of Economic Operators or their directors, partners or employees; (g) Financial support or lack of financial support by Economic Operators for any institution to or from which the authority gives or withholds support; (h) Use or non-use by Economic Operators of technical or professional services provided by the authority under the Building Act 1984 or the Building (Scotland) Act 1959. Workforce matters and industrial disputes, as defined above in paragraphs (a) and (d) of this definition, cease to be non-commercial considerations to the extent necessary or expedient to comply with Best Value; or where there is a transfer of staff to which the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) may apply.
"Officer"	The officer designated by the Chief Officer to deal with the contract in question.
"Open Procedure"	All Applicants are invited to bid in response to advertisement.
"Parent Company Guarantee"	A contract which binds the parent of a subsidiary company as follows: If the subsidiary company fails to do what it has promised under a contract with the Council, they can require the parent company to do so instead.
"Procurement Card"	A card issued to an Officer by the Council, to be used for procuring goods or services.
"Procurement Lincolnshire"	The Council's corporate procurement unit charged with providing strategic direction and advice to secure value for money in the Council's procurement activities.
"Procurement Guide"	The manual entitled Best Value Procurement Guide.
"Procurement Resource"	Services Procurement Unit charged with providing direction and advice to secure value for money in Services procurement activities. Procurement Resource may also be known as the Commissioning Team.
"Quotation"	A quotation of price and any other relevant matters (without the formal issue of an Invitation to Tender).
"Select Lists"	Also can be known as Approved Lists. Please refer to Approved Lists definition.
"Shortlisting"	Where Applicants are selected: § To quote or bid or § To proceed to final evaluations.
"Sustainable Procurement Strategy"	The document setting out the Council's approach to procurement.
"Tender"	A Tenderer's proposal submitted in response to an Invitation to Tender.
"Tenderer"	Any Economic Operator who has submitted a Tender.
"Total Contract Value"	§ The whole of the value or estimated value (in money or equivalent value) for a single purchase or disposal; § Whether or not it comprises several lots or stages; § To be paid or received by the Council. The Total Contract Value shall be calculated as follows: (a) Where the contract is for a fixed period, by taking the total price to be paid or which might be paid during the whole of the period; (b) Where the purchase involves recurrent transactions for the same type of item, by aggregating the value of those transactions in the coming 12 months; (c) Where the contract is for an uncertain duration by multiplying the monthly payment by 48; (d) For feasibility studies: The value of the scheme or contracts which may be awarded as a result; (e) For nominated Economic Operators and Sub-contractors: The Total Contract Value shall be the value of that part of the main contract to be fulfilled by the nominated Economic Operator or Sub-contractor.
"TUPE - Transfer of Undertakings (Protection of Employment)"	TUPE refers to the Transfer of Undertakings (Protection of Employment) Regulations, 1981. These regulations were introduced to ensure the protection of employees when, for example, a business is taken over by another organisation. Broadly, TUPE regulations ensure that the rights of employees are transferred along with the business.
"Value for Money"	Where quality and cost combine to produce a service which meets technical and customer requirements at an acceptable level of expenditure.
"Workforce Matters"	Authorities cannot focus on matters classed as Non-Commercial Considerations as part of the contractual process. However, the restrictiveness of the original definitions was considered too great, and so from 2001 authorities may consider the following matters to the extent that they are relevant to the delivery of Best Value or for the purposes of a TUPE transfer. § The terms and conditions of employment by Economic Operators of their workers or the composition of, the arrangements for the promotion, transfer or training of or other opportunities afforded to, their workforces (section 17(5)(a)); § The conduct of Economic Operators or workers in industrial disputes between them (section 17(5)(d)). Save for the above restrictions on other non-commercial considerations listed in Section 17 of the Local Government Act 1988 remain in place.