Agenda item

14.       Acceptance of tenders

14.1    In accepting a tender, consideration will be given to price and quality. A suitable pre-determined price-quality model (evaluation model) will be devised by the appropriate director in conjunction with the council’s procurement officer and will be approved by the Head of Finance. Selection of the best tender will be based on this evaluation.

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14.       Acceptance and Evaluation of tenders

14.1    For all tenders the evaluation weightings must be based on the minimum % proportion for  Technical (Quality) and Commercial (Price). The standard minimum weighting  applied is 40% Technical and 60% Commercial, an increase to the commercial element is permitted, however deviation from the minimum commercial % to a reduced commercial % element below 60% will require approval from the respective Director or Head of Service. The Commercial weighting cannot be less than 50%. Selection of the best tender will be based on this evaluation.

14.2    For tender evaluation the Technical (Quality) element should include an element of assessment relating to how the provision of the contract will be delivered by the contractor in a way that contributes toward reducing greenhouse gas emissions.

14.3    Procurement will also take into account ethical standards as part of awarding contracts to ensure sourcing from suppliers and contractors is completed in a manner that minimises the risk of social exploitation and rewards good employment practices. Our ethical procurement objectives are to ensure the well-being and protection of work forces throughout the supply chain, that people are treated with respect and their rights are protected.

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14.4    The intended use of sub-contractors must be disclosed in the tender response and forms part of the qualification requirements for completion. The Councils reserve the right not to approve the use of any sub-contractor if there are valid reasons and evidence, which conflict with the Procurement Procedure Rules.

Construction Procurement (Works Contracts)

14.5    The generic procurement process applies to construction procurement but does not fully cover all requirements; which need to cover a wider set of considerations. In particular, technical and project expertise and capacity will be required commensurate with the project (either in-house or externally). Other considerations include:

• Additional Tendering Requirements – e.g. to comply with industry guidance or

procedural codes

• Whole-Life Costing before acceptance

• Estimating and Cost Control to avoid overspends

• Risk Management so that potential risks identified pre-acceptance

• Additional Statutory complied with

• Sustainability – the Government’s National Procurement Strategy requires local  authority construction projects to adequately consider social, economic and

environmental factors (e.g. through protecting the natural environment).

15.          Contracts to be in writing

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15.3    Suppliers must provide evidence that they hold the required levels of Insurance cover to undertake business with the Council(s). As standard they must have  Employers Liability and Public / Product Liability Insurance cover. In addition, for  Consultancy based contracts, Professional Indemnity Insurance will be required. The following levels are required as standard:

·         Employers Liability Insurance £5,000,000

·         Public / Product Liability Insurance £10,000,000*

·         Professional Indemnity Insurance £2,000,000*

*The above levels may be changed to reflect the contract nature and should be set proportionate to the nature, delivery and risk of the supplies, services or works being procured. Changes to theses levels must be agreed by the S151 officer and the monitoring officer informed.

15.4    Single source appointments are subject to the same protocols for obtaining and verifying that suitable / adequate insurance cover is in place. This is the  responsibility of the commissioning officer.