Types of Contracts

The Council’s contract arrangements with suppliers are normally one of the following types, as noted in the List of Current Procurement Contracts.

One-off Contracts

These are contracts to meet a specific need and will generally be short-term (less than one year) contracts to supply goods and services to meet an individual requirement, e.g. the supply of specialist scientific equipment for the Trading Standards Service or the supply of consultancy services for a particular project. Works contracts for specific construction projects, i.e. to build a new road are also one-off contracts.

These are contracts for services required on a regular/ongoing basis and are generally let over a longer period of time (typically 1-5 years). Performance is monitored on a regular basis, during the contract period and contracts are re-tendered at the end of the agreed period e.g. banking services, building cleaning, ICT services.

This is an arrangement where the terms and conditions (including pricing where possible) are agreed with the supplier(s) of goods, services or works, which allows call-offs to be made without the need to go through another competitive tender process, as the competitive stage will have been completed when the framework agreement is set up. Framework agreements normally last between 1 and 4 years.

Framework agreements can be with one or more suppliers. Framework agreements may be used to call-off small individual purchases, or to call off larger term or one-off contracts. In some cases where there is more than one supplier on a framework agreement, it may be necessary to carry out a ‘mini-competition’ between the suppliers on a framework agreement.

Framework agreements may be corporate, regional or national. Many of the framework agreements used by the Council are set up by ESPO and are regional or national. Wherever possible, we co-ordinate our requirements with other councils by using framework agreements in order to save money.

Common examples of framework agreements include stationery, furniture, computer equipment, vehicles, fuel and food.

A standing list is similar to a framework agreement, but does not include any pricing information, and has therefore not been subject to a competitive tender process.  Inclusion on a standing list is based on meeting specified qualitative criteria.  Standing lists should normally be reviewed at least every 3 years.

To use a standing list, the Council will seek quotes from some or all or the organisations included on it.  As standing lists do not meet the requirements of the Public Contract Reguations 2006 for procurement above defined thresholds, they can only be used where the total expenditure falls below these threshods.

A grant is a payment to an organisation where there are no defined and measured results or outcomes that benefit the Council in return.  A grant is used to provide funding to an organisation whose activities create community benefit in a less mesurable and defined way than a contract.

Grants are not subject to the Council’s Contract Procedure Rules.

A Residential Placement Agreement is the contract between the Council and a residential care provider.  The choice of care provider is at the service user’s discretion.