4.2 Procurement Exercise

4.2.1. Pre-Estimate

(a) Before any Procurement Exercise is begun the Procurer must calculate its Estimated Value in accordance with this clause.

(b) The Estimated Value shall be calculated as follows:

(i) Where the Contract period is fixed the Estimated Value shall be the total estimated maximum value of the supplies, services or works to be supplied over the period covered including any extensions to the Contract;

(ii) Where the Contract period is indeterminate the Estimated Value shall be calculated by multiplying the estimated average monthly value by 48;

(iii) For Concessions the Estimated Value shall be the estimated gross value of the service before income over the Contract period;

(iv) The Estimated Value must exclude Value Added Tax (VAT) but must include all other taxes and duties;

(v) Periodic purchases for the same requirement, whether that is from the same or different suppliers, must be aggregated over a minimum of a 48 month period;

(vi) Where the University may be contributing only part of the Total Value of a Contract, it is nevertheless the total Estimated Value that should be applied in determining the correct procedures to be applied under these Regulations.

(c) Where there is any doubt as to the Estimated Value then the procedure for the higher threshold in Regulation 4.2.2 must be used.

(d) Where the Estimated Value is £25,000 or more the Procurer must notify in writing the appropriate Category Manager of the Estimated Value before proceeding. A written record of that Estimated Value must then be kept on file by the Procurer.

4.2.2. Procurement Exercise Process

(a) Based on the Estimated Value, as identified in Regulation 4.2.1, Table 1 below makes provision for the minimum requirements for the subsequent Procurement Exercise.

Table 1: Minimum requirements for a Procurement Exercise (for exceptions see Regulation 4.1.6):

Estimated Contract Value
£0 – £9,999 Procurement Process Obtain ONE written Quotation
Minimum Contract Opportunity Publication None
Documentation Record details
£10,000 –
£24,999
Procurement Process Seek THREE written Quotations  (where practical)
Minimum Contract Opportunity Publication When requesting quotations the Procurer should consider the benefits of including a local supplier, where appropriate or applicable to the Contract*
Documentation Record details
(If three Quotations cannot be obtained, despite them being sought, a record of the reasons for this must be maintained and forwarded to the appropriate Category Manager)
£25,000 –
£49,999
Procurement Process Obtain three written Quotations (to be based on a Request for Quotation document where practical) For exceptions see Regulation 4.1.6(b)
Minimum Contract Opportunity Publication When requesting quotations the Procurer should consider the benefits of placing a Contract Opportunity Publication on a website approved by the Head of Procurement to notify the supply market. The University’s electronic tendering system, provides this functionality and ensures that a Contract Opportunity Publication is also placed on the Contracts Finder website (where Contract Opportunity Publications for all openly advertised Contracts with an Estimated Value of £25,000 or more must be placed). (If the specified number of Tenders to be received based on the Estimated Contract Value is not obtained, but a Contract Opportunity Publication was placed, then this does not constitute an exception to these Regulations)
Documentation Request for Quotation issued by the Procurer and Quotations received
£50,000 –
£99,999
Procurement Process Obtain three written Tenders  (Tender process to be undertaken by the Procurement Unit**, unless agreed otherwise by the Head of Procurement)
Minimum Contract Opportunity Publication When requesting quotations the Procurer should consider the benefits of placing a Contract Opportunity Publication on a website approved by the Head of Procurement to notify the supply market. The University’s electronic tendering system, provides this functionality and ensures that a Contract Opportunity Publication is also placed on the Contracts Finder website (where Contract Opportunity Publications for all openly advertised Contracts with an Estimated Value of £25,000 or more must be placed). (If the specified number of Tenders to be received based on the Estimated Contract Value is not obtained, but a Contract Opportunity Publication was placed, then this does not constitute an exception to these Regulations)
Documentation Invitation to Tender issued and Tenders received
£100,000 –
EU Threshold***
Procurement Process Obtain five written Tenders
(Tender process to be undertaken by the Procurement Unit**, unless agreed otherwise by the Head of Procurement)
Minimum Contract Opportunity Publication When requesting quotations the Procurer should consider the benefits of placing a Contract Opportunity Publication on a website approved by the Head of Procurement to notify the supply market. The University’s electronic tendering system, provides this functionality and ensures that a Contract Opportunity Publication is also placed on the Contracts Finder website (where Contract Opportunity Publications for all openly advertised Contracts with an Estimated Value of £25,000 or more must be placed). (If the specified number of Tenders to be received based on the Estimated Contract Value is not obtained, but a Contract Opportunity Publication was placed, then this does not constitute an exception to these Regulations)
Documentation Invitation to Tender issued and Tenders received

Above the EU Threshold*** or £589,148 if  Social and Other Specific Services, as defined by the Public Contracts Regulations 2015

Procurement Process Formal Tender Process
(to be undertaken by the Procurement Unit, unless agreed otherwise by the Head of Procurement)
Minimum Contract Opportunity Publication OJEU**** and also consider the benefits of placing a Contract Opportunity Publication on a website approved by the Head of Procurement  to notify the supply market. A Contract Opportunity Publication can be placed via the University’s electronic tendering system, which will also place a Contract Opportunity Publication on the Contracts Finder website (where Contract Opportunity Publications for all openly advertised Contracts with an Estimated Value of £25,000 or more must be placed).
Documentation Invitation to Tender issued and Tenders received

 * The University cannot give preference to local suppliers, as this would contravene procurement law and one of its primary underpinning principles of non-discrimination. However, the University recognises that there can be barriers limiting the ability of smaller suppliers to compete for its business. The University will seek to reduce the impact of such barriers, where it can do so legally, without discrimination, and without placing unacceptable levels of risk on the University

** The Formal Tender Process for Works below the EU Threshold (£4,104,394) may be undertaken by the Estates & Facilities Management Division, rather than the Procurement Unit

*** EU Thresholds are currently £164,176 for Supplies and Services and £4,104,394 for Works and Concessions
**** Where following the Restricted Procedure or Competitive Procedure with Negotiation the call for competition may be made by way of a Prior Information Notice or an OJEU notice
  

(b) Where any Mandatory Contracts have been set up for supplies, services or works then these Regulations are deemed to have been satisfied when the arrangement was set up and do not have to be further applied, if appropriately used. When the Mandatory Contract is a Framework Agreement then the Procurer must comply with Regulation 4.5.1(c).

(c) Where the Estimated Value exceeds the relevant EU Threshold, consideration must be given as to whether to subdivide the Contract into lots. If the decision is made not to subdivide the Contract into lots then the reason for this decision must be formally documented.

(d) The Procurer must ensure that the appropriate Category Manager is involved from the outset of the Procurement Exercise for equipment with an Estimated Value of £25,000 or more, where funded by a Research Council.

4.2.3. Selection and Award Evaluation Criteria

(a) A Procurement Exercise must include both selection and award criteria.

(b) Selection criteria must be included in the evaluation process where employing the Open Tendering procedure (Regulation 4.3.1) or must be the only criteria used for the shortlisting methodology where employing the Restricted procedure (Regulation 4.3.2).

4.2.4. Award Methodology and Evaluation Criteria

(a) The award methodology must determine the most economically advantageous Tender based on a range of predetermined evaluation criteria which must be set out in the Invitation to Tender.

(b) Before a Contract can be awarded the supplier must meet the minimum standard for the selection criteria where included in the evaluation process, where employing the Open Tendering procedure (Regulation 4.3.1) or where the only criteria used for the shortlisting methodology where employing the Restricted procedure (Regulation 4.3.2).

(c) In the case of a Procurement Exercise with an Estimated Value of £50,000 or more the process for identifying the most economically advantageous Tender, including selection and award criteria, must be agreed in consultation with the appropriate Category Manager and included in the Invitation to Tender and a copy retained on file.

(d) The Procurer must notify all Tenderers of the award methodology and evaluation criteria being used in the case of the Contract in question. If weightings are to be applied to the criteria then the Procurer must ensure that these are also incorporated into the Invitation to Tender.

(e) Where the decision is made to subdivide the Contract into lots, having followed Regulation 4.2.2(c), it is necessary that the OJEU notice detail the number of lots for which Tenderers may bid, the number of lots that may be awarded to any one Tenderer, and the award criteria and rules to be used in awarding the lots.

4.2.5. Contract Opportunity Publication

(a) The Procurer must consider the benefits of placing a Contract Opportunity Publication on a website approved by the Head of Procurement (functionality currently provided by the University’s electronic tendering system) to notify the supply market where the Procurement Exercise has an Estimated Value of £25,000 or more.

(b) Where a Contract Opportunity Publication is to be placed then this should be on the Contracts Finder website or placed on the Contracts Finder website before or within 24 hours of any other Contract Opportunity Publication.

(c) Unless agreed otherwise with the Category Manager, for all proposed Contracts where the Total Value is below the EU threshold, a period of at least ten working days should be allowed between the closing date for requests for the Invitation to Tender and either:

(i) the deadline for receipt of Tenders where an Open Tendering procedure is being used; or

(ii) the deadline for receipt of Selection Questionnaires or Expressions of Interest, where a Restricted Tendering procedure is being used.

(d) The Contract Opportunity Publication must express the nature and purpose of the Procurement Exercise, stating where further details may be obtained and inviting Tenders in response to the Contract Opportunity Publication.

(e) If the Estimated Value exceeds the relevant EU Threshold the Procurer must ensure that the Contract Opportunity Publication is first published in the OJEU before the Contracts Finder website or any other website approved by the Head of Procurement. The same applies to Social and Other Specific Services, as defined by the Public Contracts Regulations 2015, with an Estimated Value exceeding £625,050.

(f) Under no circumstances must a Contract Opportunity Publication appear in any form before publication in the OJEU and neither should any advertisement contain any more information than that published in the OJEU.

(g) All procurement documents must be available by means of a website approved by the Head of Procurement from the date of the publication of the OJEU notice (or Prior Information Notice, where used as a call for competition where following a Restricted Procedure or Competitive Procedure with Negotiation).

Share this page: