Officers must comply with these Rules.  Failure to do so may result in disciplinary action.

Appropriate Chief Officers may delegate their responsibilities under these Rules in accordance with Rule 6 of Section D (General scheme of delegation to heads of departments) of Part 3 (Responsibility for Functions) of the Constitution.

Words and expressions used in these Rules are to be interpreted in accordance with the provisions of Schedule 1.

These Rules apply to every procurement contract made by or on behalf of the Council except contracts:

(a)    Subject to the requirements of EU Directives, EU Treaties, Acts of Parliament and UK Regulations the following contracts may be placed by direct negotiation with one or more suppliers, contracts:-

In the above circumstances, the Procuring Officer must retain on file a record of the negotiations surrounding the contract awards and notify the appropriate Category Manager.

(b)    Other exceptions to these Rules may only be made within the relevant law and with the authority:-

(a)    Financial limits and thresholds within these Rules may be varied from time to time by the Corporate Governance Committee.

(b)    Arrangements for delegation of functions to Officers within these Rules may be varied from time to time by the Chief Executive.

The Director of Corporate Resources, in consultation with the County Solicitor, shall at least once in each financial year submit a report to the Corporate Governance Committee in relation to the operation of these Rules, including, among other things, details of the approved exceptions to these Rules and approved extensions to contract where not provided for in the contract, and proposed revisions to these Rules and/or changes required to accommodate the requirements of UK and EU procurement law as may be necessary from time to time.

(a)    The Employee Code of Conduct (Part 5b of the Constitution) applies to any Procurement Exercise.

(b)   The following clause, or a clause that is substantially similar, will be included as a standard term and condition in every written contract in accordance with Rule 25 (c):

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

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

(a)    Every contract or official order for works, supplies or services made by the Council shall be for the purpose of implementing the Council’s policies and must be made in accordance with the Council's duty of Best Value and Sustainable Commissioning and Procurement Strategy.

(b)    When proposing to procure or making arrangements for procuring a service contract where the Estimated Value exceeds the EU Threshold then consideration must be given as to how the Contract might improve the economic, social and environmental wellbeing of Leicestershire, as required by the Public Services (Social Value) Act 2012*.  This duty also relates to Part B Services where the Estimated Value exceeds the EU Threshold for Services.

(c)    The Procuring Officer must ensure that whenever Corporate Contracts have been approved by a Category Manager that supplies, services and works are ordered via these, unless it is agreed by the Category Manager that better value for money can be clearly demonstrated outside of these approved Corporate Contracts.  All such instances involving ESPO must be notified to ESPO by the Category Manager.

(d)    Procedures set out in the relevant EU Directives, EU Treaties, Acts of Parliament and UK legislation must be complied with at all times.

(e)    Based on criteria laid down by the Executive, the Director of Corporate Resources will be responsible for evaluating the financial status of Tenderers and suppliers.

(f)    The Procuring Officer must ensure that sufficient budget provision has been agreed with the budget holder prior to any Procurement Exercise being undertaken.

(g)    Procurement Exercises may be undertaken by electronic means provided that:-

(h)    Subject to the provisions of Rule 28(b) (Framework Agreements) contracts shall not be longer than 5 years (including extensions) or of indeterminate length without the written approval of the Director of Corporate Resources on advice of the appropriate Category Manager.  Any such approval shall be sought prior to the commencement of the Procurement Exercise.

^{* This duty comes into force on 31 January 2013}

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

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

(c)    Where there is any doubt as to the Estimated Value then the procedure for the higher threshold in Rule 11 must be used.

(d)    Where the Estimated Value is £10,000 or more the Procuring Officer 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 Procuring Officer.

(a)    Based on the Estimated Value, as identified in Rule 10, Table 1 below makes provision for the minimum requirements for the subsequent Procurement Exercise.

(b)    All contracts with an Estimated Value of £100,000 or more must be referred to ESPO, subject to any general exceptions agreed with ESPO, prior to the commencement of the Procurement Exercise by the Procuring Officer unless the Procuring Officer acting on advice of the Category Manager considers that the Council can better comply with its duty of Best Value by not using ESPO.  All such cases must be confirmed in writing to the Director of Corporate Resources.

Table 1: Minimum requirements for a Procurement Exercise (for exceptions see Rule 5):

(c)    Details of oral Quotations must be recorded appropriately.

(d)    Where any Corporate Contracts or Standing Lists have been set up for supplies, services or works then these Rules 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 Corporate Contract is a Framework Agreement then the Procuring Officer must comply with Rule 28(c).  When using a Standing List the Procuring Officer must comply with Rule 27.

(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 (Rule 15) or must be the only criteria used for the shortlisting methodology where employing the Restricted Procedure (Rule 16).

(a)    The award methodology must be either:

(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 (Rule 15) or where the only criteria used for the shortlisting methodology where employing the Restricted Procedure (Rule 16).

(c)    In the case of a Procurement Exercise with an Estimated Value of £100,000 or more the award methodology must be agreed in consultation with the appropriate Category Manager and recorded in writing by the Procuring Officer in advance of the issue of the Invitation to Tender and a copy retained on file.  

(d)    In all cases where the Estimated Value is equal to or exceeds the EU Threshold the process for identifying  a most economically advantageous Tender, including evaluation criteria, must be prepared in consultation with the Category Manager in advance of the issue of the Invitation to Tender and a copy retained on file.

(e)    The Procuring Officer 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 Procuring Officer must ensure that these are also incorporated into the Invitation to Tender.

(a)    Unless otherwise agreed by the Director of Corporate Resources the Procuring Officer must ensure, for all Procurement Exercises with an Estimated Value of £20,000 or more but less than the relevant EU Threshold, that Contract Opportunity Publication is given on a website approved by the Director of Corporate Resources for the purpose of notifying the supply market.

(b)    The publication of the Contract Opportunity Publication must be made at least fifteen days before the last date for receipt of Tenders where an Open Tendering procedure is being used, and at least fifteen days before the last date for receipt of Pre-Qualificaton Questionnaires or Expressions of Interest, where a Restricted Tendering procedure is being used.

(c)    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.

(d)    If the Estimated Value exceeds the relevant EU Threshold the Procuring Officer must ensure that Contract Opportunity Publication is first published in the OJEU and then on a website approved by the Director of Corporate Resources for the purpose of notifying the supply market.  Part B Services need only be advertised on a website approved by the Director of Corporate Resources for the purpose of notifying the supply market.

(e)    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.

(f)    Rule 14 is a minimum requirement and does not preclude further Contract Opportunity Publication where appropriate (e.g. in the local newspaper, trade or professional journal, the Council website).

Under Open Tendering, Procuring Officers must send Invitations to Tender to all those Persons who respond to the Contract Opportunity Publication and who meet the requirements stated therein.

(a)    Rule 16 applies to Tenders where the estimated value is equal to or exceeds the EU Threshold.

(b)    Under Restricted Tendering, Procuring Officers need only send Invitations to Tender to:

(c)    The shortlisting criteria and process must be prepared (in consultation with the Category Manager) in advance of the issue of the Pre-Qualification Questionnaire and a copy retained on file.

(d)    All Persons that do not qualify for inclusion on the shortlist to receive an Invitation to Tender must receive notice that they have been excluded from the Procurement Exercise.  Any Person requesting in writing the reasons why they were unsucessful shall be informed by the Procuring Officer of the reasons for the Council's decision.

(a)    Where the Negotiated Procedure or Competitive Dialogue Procedure is used the requirements of the EU Directive and, where appropriate, these Rules shall be followed.

(b)    The Negotiated Procedure or Competitive Dialogue Procedure must only be used with the prior approval of the Director of Corporate Resources.

(a)    Every Invitation to Tender must specify the latest day and hour and the place appointed for the receipt of Tenders and, for Tenders where the Estimated Value is £100,000 or more, must state the effect of Rule 19.

(b)    Procuring Officers must give all Tenderers the same information about the Procurement Exercise and in particular information relating to the Tender process, specification, award methodology and evaluation criteria.  

(c)    Procuring Officers must also give all Tenderers the same information relating to questions, answers and clarifications raised during the Procurement Exercise unless they relate solely to another Person’s Tender.

(d)    Tenders where the Estimated Value is below £100,000 may be returned directly to the Procuring Officer.

(e)    Tenders, where the Estimated Value is £100,000 or more, must be addressed to and opened by the Chief Executive or handled via an electronic tendering system approved in accordance with Rule 9(g).

(f)    Where Tenders are to be received by the Chief Executive, the Procuring Officer must send to the Chief Executive a note of the subject and the closing date and time and (where appropriate) a list of the Persons invited to Tender together with the Estimated Value before the closing date for receipt of Tenders.

(a)    An Irregular Tender must not be accepted by either the Chief Executive or the Procuring Officer, other than in accordance with this Rule.

(b)    A Tender is not valid unless it has been delivered to the place appointed in accordance with Rule 18 and not later than the appointed day and hour.

(c)    Tenders where the Estimated Value is £100,000 or more are not valid unless they are received in a plain sealed envelope or parcel addressed to the Chief Executive. The envelope or package must bear the word “Tender” followed by the subject to which it relates.

(d)    Where a Tender has been received which is an Irregular Tender in that it does not fully comply with the instructions given in the Invitation to Tender and/or because it is received after the appointed time for receipt or does not comply with Rules 19(b) and 19(c), the provisions of Rules 19(e) and 19(f) apply.

(e)    A Tender received after the closing date and time may be opened and evaluated in accordance with Rule 20 if there is clear evidence of it having:-

(f)    If in other cases of Irregular Tenders the Chief Executive considers that there are exceptional circumstances and that the Tenderer who submitted the Irregular Tender has gained no advantage from its irregularity he may determine to accept the Irregular Tender and authorise that it be opened and evaluated together with any other Tenders in accordance with Rule 20.  The Chief Executive shall record in writing the reasons why each Irregular Tender has been accepted or rejected.

(g)    Irregular Tenders that the Chief Executive has rejected under this Rule must be returned to the Tenderer by the Chief Executive with a covering letter stating the reason for their rejection.

(a)   Rule 20 applies to Tenders where the Estimated Value is £100,000 or more, except where using an electronic tendering system that does not allow Tenders to be accessed until the deadline for Tender submissions has passed, and where Rule 9(g) has been followed.

(b)    On receipt, envelopes containing Tenders must be date and time stamped by the Chief Executive and shall remain in his custody until they are opened.  The Chief Executive must keep a record of all Tenders received.

(c)    Tenders must be opened at one time in the presence of not less than two Officers one of whom is not involved in the Procurement Exercise and who is designated by the Chief Executive.  Each Officer must initial each Tender once opened which must also be date stamped.

(d)    Particulars of all Tenders opened must be entered by the Chief Executive upon the record which must be signed by the Officers present at the opening, together with a note of all Irregular Tenders.

(e)    The Chief Executive must forthwith send a copy of the record to the appropriate Procuring Officer (with the Tenders) and must retain a copy himself.

(a)    Tenderers are not allowed to alter their Tenders after opening save in accordance with this Rule or Rule 22.

(b)    Where it is suspected that there has been an error in a Tender and following the closing date for receipt of Tenders but before acceptance of any Tender discussions may take place with Tenderers in order to:

(c)    A written note of the discussions must be made to record the suspected error, date, time, detail of the discussion and any agreement reached.

(a)    In the case where the Estimated Value was below the EU Threshold, and following the closing date for receipt of Tenders but before acceptance of any Tender, the Procuring Officer may carry out Post Tender Negotiations in an attempt to secure improvements in the price or economic advantage in one or more of the following circumstances:

(b)    When conducting Post Tender Negotiations, as part of a Procurement Exercise where the Estimated Value is £100,000 or more (but below the EU Threshold), only the Tenderer submitting the most competitive Tender in accordance with the award methodology and evaluation criteria (Rule 13) may be invited to participate in Post Tender Negotiations.

(c)    When conducting Post Tender Negotiations, the following additional rules shall apply:

(d)    Post Tender Negotiations are not allowed in the case of contracts with an Estimated Value exceeding the relevant EU Threshold. However, clarifications of errors or discrepancies in Tenders may take place in accordance with Rule 21.

(a)    A Tender can only be accepted in accordance with the initial award methodology and evaluation criteria as set out in Rule 13.  Any evaluation sheets must be maintained on file in accordance with Rule 35.

(b)    Any Tender with an Estimated Value of below £20,000 (where a Request for Quotation or an Invitation to Tender is not used) may only be accepted with the prior written approval of the Appropriate Chief Officer.

(c)    If the Tender to be accepted exceeds the budget which was agreed in accordance with Rule 9(f) the Procuring Officer must ensure that sufficient funds are available and approved by the appropriate budget holder, Appropriate Chief Officer or Executive prior to accepting the Tender.

(d)    An abnormally low Tender may not be rejected without first giving the Tenderer the opportunity to explain the tendered price.

(e)    The Appropriate Chief Officer shall have the authority to accept a Tender but in any particular circumstance may decline to give approval and refer the decision to the Executive to determine.

(a)    The Procuring Officer must notify the successful Tenderer of the acceptance of their Tender and for all Procurement Exercises with an Estimated Value of £1,000 or more this notification must be in writing.

(b)    In the case where the Estimated Value is £20,000 or more the Procuring Officer must notify in writing all Tenderers who submitted a Tender of the decision as soon as possible after the decision has been made.

(c)    In the case where the Estimated Value is equal to or above the appropriate EU Threshold, the following additional Rules shall apply:

(d)    The Procuring Officer must notify the appropriate Category Manager in writing of any contract that has been awarded with a total value of £10,000 or more.

(a)    A contract shall be formed:

(b)    In determining and negotiating the terms and conditions of contract, the Procuring Officer must ensure that the appropriate Standard Terms and Conditions are incorporated unless the Procuring Officer having consulted the appropriate Category Manager considers it inappropriate to do so.

(c)    All contracts with an Estimated Value of £20,000 or more must be in writing and where appropriate the Appropriate Chief Officer shall:

(d)    Every contract must be signed by the Appropriate Chief Officer or an Officer designated by him and in cases determined by the County Solicitor shall be under seal in the form prepared or approved by him or her.  

(e)    Except after consultation with the County Solicitor, work or services must not be authorised to commence or goods to be supplied where such works, services or goods are to be the subject of a contract under seal entered into between the Council and the supplier, until the County Solicitor has advised that the contract has been signed by the supplier.

Orders for work, goods and services must only be placed in accordance with Instruction 8 of the Standard Financial Instructions.

(a)    Standing Lists must not be created or added to without the prior written approval of the Appropriate Chief Officer in consultation with the appropriate Category Manager.

(b)    Procuring Officers must not use a Standing List where the total value of contracts to be awarded using the Standing List is estimated to exceed the relevant EU Threshold.

(c)    The Standing List must contain the names of all Persons who are approved and indicate the categories of contract and the values or amounts in respect of those categories for which those Persons are approved.

(d)    At least four weeks before a list is first compiled, the Procuring Officer must publish on a website approved by the Director of Corporate Resources for the purpose of notifying the supply market a notice inviting applications by a specified date for inclusion in it.

(e)    Procuring Officers must renew all Standing Lists at intervals not exceeding four years.  At least four weeks before each renewal, each Person whose name appears in the list must be notified by the Procuring Officer of the intention to review the list.  If they wish to remain on the list they must re-apply for inclusion. Procuring Officers must ensure that notices inviting applications for inclusion in the list are published in the manner provided by Rule 27(d).

(f)    The case where the use of a Standing List has been authorised the Procuring Officer must send Invitations to Tender to not less than four of the Persons from among those approved for a contract of the relevant category and amount or value.  Where fewer than four Persons are approved for a contract of the relevant category and amount or value Invitations to Tender shall be sent to no fewer than three Persons.  Where there are fewer than three Persons the procedure for Standing Lists must not be used unless the appropriate Category Manager advises otherwise.

(g)    The Procuring Officer in consultation with the Category Manager shall determine the criteria for selecting Persons from the list.

(h)    In such circumstances as the Director of Corporate Resources shall determine, Procuring Officers shall provide such information as shall reasonably be necessary of the extent to which Standing Lists have been utilised.

(a)    Procuring Officers must establish all Framework Agreements in accordance with these Rules.

(b)    Framework Agreements must not be awarded for more than 4 years, including any extensions without the prior written consent of the Director of Corporate Resources.

(c)    All suppliers on the Framework Agreement must be invited to participate in a Further Competition unless it is clear from the terms of the Framework Agreement which supplier best meets the award methodology set out in the Framework Agreement in which case that supplier may be selected.

(d)    New suppliers may only be added to a Framework Agreement throughout its duration in circumstances where:

(i) the Estimated Value is below the EU Threshold; or

(ii) the services tendered are Part B Services to which the full regime of the Public Contracts Regulations 2006 is not considered to apply: and

Provided that the Invitation to Tender states:

Procuring Officers must only establish Dynamic Purchasing Systems with the prior written approval of the Director of Corporate Resources and in accordance with the requirements of the EU Directives and these Rules where appropriate.

(a)    Prior to any extra or variation being agreed the Procuring Officer must ensure that sufficient additional budget provision has been approved by the budget holder.

(b)    If the Total Value of the contract is under £100,000 the Appropriate Chief Officer shall be authorised to vary the contract.  This authorisation must be issued before the work is carried out, or in the case of an emergency, immediately thereafter.

(c)    In the case of a contract with a Total Value of £100,000 or more, for any extra(s) or variation(s) that would increase or decrease the Total Value of the contract by 10% or more, the Appropriate Chief Officer must gain the prior approval of the Director of Corporate Resources.  This authorisation must be issued before the work is carried out, or in the case of an emergency, immediately thereafter.

(d)    In the case of a contract which was originally approved by the Executive and where any extras or variations are considered significant by the Director of Corporate Resources then the Executive must be informed as soon as practicable.  

If the contract was originally approved by the Executive and where the duration of the planned extension is more than three months and not provided for in the contract then authority must be gained from the Executive, in all other circumstances the following applies:

The novation of a contract to a new Person requires the prior written approval of the Director of Corporate Resources in consultation with the County Solicitor.

Unless a provision for early termination is clearly stated in the contract and takes effect, Procuring Officers shall seek advice from the County Solicitor where it is intended to terminate a contract early.  Where the Total Value of the contract is £100,000 or more the prior written approval of the Director of Corporate Resources shall also be obtained.

(a)    Where acting solely on behalf of the Council ESPO must comply with these Rules where applicable.

(b)    In cases where ESPO is acting on behalf of the Council:

(a)    All contract records that might be required in court proceedings must be retained for at least six years and any under seal for at least twelve years from expiry of the contract.

(b)    Where the contract is externally funded any contingent liabilities and/or grant conditions must be taken account of by the length of the retention period.

(a)    The Procuring Officer shall ensure that it is a condition of any contract between the Council and any Person (not being an Officer of the Council) who is involved in a Procurement Exercise or the management of a contract on behalf of the Council that in relation to that contract he must comply with the requirements of these Rules and other requirements of the Council.

(b)    Such Person must:

(a)    Where a sub-contractor or supplier is to be nominated by the Council to a main contractor, the provisions of these Rules shall have effect.

(b)    The terms of an Invitation to Tender under Rule 18 must require an undertaking by the Tenderer that, if selected, they will be willing to enter into a contract with the main contractor on terms which indemnify the main contractor against their own obligations under the main contract in relation to the work, supplies or services included in the sub-contract.