OJEU Question

Question

We are in need of some parish refurbishment. This will fall under the procurement section of  'Services and Suplies' as the contractor will need to both supply replacement childrens play equipment and install it. The cost is expected to be somewhere between 40 - 50k.

I understand that if procurement will be above 25k it presently has to comply with OJEU rules. When I look up those rules in a couple of published plain English guides I am reading this as the 2020 OJEU tender threshold for what would seem to apply to our situation of 'services and supply'

(Supplies and services contracts awarded by sub-central authorities (including Local Authorities and Registered Providers £189,330)

Just obtaining quotes and making our selection on value for money and a feel for the quality of the service we might expect would make things easier. However both our Chair and Vice Chair who are more experienced than myself are adamant that we must go to tender, so I have read the OJEU rules again but I still come to the same conclusion that our relatively small contract isn't compelled to go to tender. Has anybody got a greater understanding/experience of this which they could share with me,

Thanks James

Answer 1

You're below the OJ threshold, but must use the Government's Contracts Finder website for contracts over £25,000.

Comments

Thanks!  Yes we've done that. Only 3 contactors in our size group and one of those doesn't want to know. Of the two left we could write an ITT but once issued that will narrow our options to choose and as there are so many variables, it could even push the cost up.
ie Styles/type of equipment, manufacturing materials used and various flooring types, the cost of which will vary depending on the type of equipment chosen. I just think it could very well be more sensible to get estimates for the various options decide on one supplier from their estimates and then maybe even mix and match to end up with the best suited installation and price firming that up with a fixed quote. But of course that can't happen when inviting fixed tenders.

Any suggestions how I might prove to at least the other councillors that we don't need to go to tender for no more than 50k. I've already stated at meetings that we don't need to go to tender for such a small contract but I am just told that I am not understanding how council procurement works.
Frustrating, as having, prior to retirement, spent many years dealing in much larger commercial engineering contracts I didn't think the difference would been considered so ungraspable but it seems I might be outranked.

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The detailed process should be set out in the Contracts section of your financial regulations. The footnotes identify the relevant thresholds.

There are plenty of contractors bidding for childrens play equipment projects and I receive unsolicited emails every two or three days from them. You need to be clear about what you want (i.e. what age-groups, types of equipment, play, fitness or learning etc) and my advice would be to choose a single manufacturer, as it simplifies the spares/repairs aspect further down the line.

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Thanks again Dave,

Yes that is where we want to end up.  Re procurement it seems we have adopted the standard NALC  FRs before I was onboard and all that says is .....
......Where the council intends to procure or award a public supply contract, public service contract or public works contract as defined by The Public Contracts Regulations 2015 (“the Regulations”) which is valued at £25,000 or more, the council shall comply with the relevant requirements of the Regulations.

 for some reason that I don't understand there is a 'mind set' that anything over £25,000 has to go to tender. I think I need something with 'GOV' on it clearly stating what the threshold actually is.

Thanks for the confirmation and now that I know I am not alone on another planet I'll keep looking there has to be something somewhere headed Gov.UK that doesn't need a lawyer and accountant to interpret.

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OK think I might have found it, Our own Borough Council is stating clearly that tenders are only required for contracts to supply with a value of over 50K. That is a good way below the 2015 FRs but I guess they might have been biased to a safer low figure given the flax that this kind of thing can generate.

I'll hit them with that, if it's good enough for our own Borough Council it must surely is good enough for us.

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The information you're looking for should be in the Financial Controls and Procurement section of your Standing Orders, if you're using the model document.

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This is actually the problem. The standard SOs advise that procurement above 25k but below that in SO 18f but then18f states 181.3k but subject to specific regulations in Central Gov's Public Contracts Regulations, but when you go there these cross reference to The Public Contracts Directive and when you go there this crosss references to the OJEU Procurement Thresholds which I had already turned up and when I go there as expected it's the same document which doesn't clearly say that these are the thresholds which trigger the need to tender.
There are two amounts shown outside of Cen. Gov. which could apply to us  one 189.3k and the other titled 'Small Lots' is 70.7k. I am unsure which would apply to us but both thresholds are way above our planned expenditure but then they are just figures with no clear explanation of what they are the threshold of, plus there are several more 'subject to' cross references for these thresholds as well. It could go on infinitum without a clear outcome.
Ideally I just want something that clearly says Services and Supply contracts above £XXXXX will be subject to tender anything below that amount may be procured by quotations. Prompted by your lead I find that our own borough council has such in their procurement SOP. So I'll see how much ice that will cut.

Thanks for your help it is appreciated

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If you're using the current model financial regulations, 11.1(b) includes the requirement to use Contracts Finder for over £25k, 11.1(c) covers the OJEU for very large projects, 11.1(h) requires 3 quotations between £3,000 (usually) and £25,000, and 3 estimates below £3,000, 11.1(e), (f) and (g) set out the tender process, which applies to all contracts over £25,000 and these are reflected in 18(c), (d) and (e) of the standing orders.

To simplify all of that, 3 quotations are acceptable up to £25,000, but thereafter, tendering is required, in accordance with the arrangements set out in your standing orders and financial regulations.

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Thank you Dave,

Sounds like I need to shut up and go with the flow then.

Thanks for your help