Doing business with the Council - how the tender process works

1. Doing business with the Council - how the tender process works Major Projects & Procurement, CBMDC

2. Workshop Presenters • Rajnish Ahuja • Procurement Officer • Corporate Procurement Unit • Andrew Parkin • Principal Engineer • Transportation & Highways • John Bibby • Senior Policy Officer • Environment

3. Contents • Introduction • The Council’s procurement processes • What do our tenders look like • How tenders are evaluated • Departmental perspective – Transportation & Highways • Key issues for the future • Questions

4. Introduction • Why do we tender? • Public Sector – funded by the Taxpayer • Getting the “Best” Value for Money • Transparent, fair and reasonable to all • Stimulate competition in the marketplace • Comply with UK and European legislation • Demonstrate proper use of resources

5. Introduction • Do we always tender? • Number of options open to the Council • Existing Public Sector Contracts • YPO (Yorkshire Purchasing Organisation) • OGC (Office of Government Commerce) • NHS Purchasing & Supply • Other public sector bodies • Other Council contracts • Joint / Collaborative arrangements • Regional Contracts

6. The Council’s procurement processes • Approved List of Contractors • Works and Building Services • Application for inclusion through SCMS • Vetting process • Acceptance onto ALoC • First “port of call” for works & building services

7. The Council’s procurement processes • Expenditure Under £10,000 • Contracts mostly arranged by Departments at this level • Value for Money must be obtained • Simple process • Contact would be direct with individual departments • Expenditure £10,000 - £75,000 • Minimum Four Quotations/Tenders Required • Mostly Departmental Contracts • Quotations often sourced locally • Process and documents straight forward

8. The Council’s procurement processes • Expenditure £75,000 - £139,893 • Contract needs to be advertised nationally or regionally • Open or Restricted Procedure Used • Formal Tender Documentation • Selection and evaluation criteria • Expenditure £139,893+ • £139,893 Supplies and Services • £3,497,3193 Works Contracts • Advertisements in European Journal • Prescribed selection, evaluation and award criteria

9. What do our tenders look like? • Pre Qualification Questionnaire (Restricted) • Pre-selection process • Outline of contract requirement • Capacity of applicant • Capability of applicant • Used to create tender short-list

10. What do our tenders look like? • Invitation To Tender • Documents typically include • Part A (Tender Information) • Part B (Tender Submission) • Part C (Pricing Schedule) • Method of Despatch • Preferably electronic (SCMS), Paper • Method of Return • Preferably electronic (SCMS), Paper • Pre specified time and place

11. What do our tenders look like? • The Tender Documents • Instructions to tenderers • Terms and Conditions • The Specification • The Questions We Ask • Commercial • Quality • Technical information about product or service • Pricing Schedule

12. How Tenders Are Evaluated • Contract Award Basis • Tenders will be awarded on the basis of the Council obtaining the optimum combination of whole life costs and quality • Most Economically Advantageous Tender

13. How Tenders Are Evaluated • Basic Principles • Price Quality Split • Pre determined Tender Evaluation Model • Pre determined Award Criteria • Weightings • Meeting Customer Requirements • Whole Life Costing

14. How Tenders Are Evaluated

15. Departmental perspective – Transportation & Highways • Departmental perspective - • Transportation & Highways

16. Departmental perspective – Transportation & Highways • Utilising Approved List of Contractors • Request tender list • Tenderer selection • 2 by Rotation • 2 Recently competitive • 2 Officer choice

17. Departmental perspective – Transportation & Highways • Tender documents include • Instructions • Contract • Specification • Bill of Quantities – pricing document • Form of Tender – offer

18. Tender documents include: Instructions Contract Specification Bill of Quantities – pricing document Form of Tender – offer CITY OF BRADFORD METROPOLITAN DISTRICT COUNCIL Department of Transportation Design and Planning Director: Alan Mainwaring CONSTRUCTION OF BALDWIN LANE RETAINING WALL Engineer for the Works : Steve Barton BSc CEng Departmental perspective – Transportation & Highways FLOCKTON HOUSE FLOCKTON ROAD BRADFORD BD4 7RY TDP/M/HS/22523/B3534/SF DECEMBER 2003

19. Departmental perspective – Transportation & Highways • Submission • Time, date and place • Opened and recorded independently of officers who have sent out the tender • “Form A” completed • Arithmetic and Technical check • Pre contract meeting • Officer recommendation to Client to award • Award letter – Two signatures required

20. Departmental perspective – Transportation & Highways • Term/Schedule of rates Contract • Advertised in press • Prequalification • Schedule of rates • Evaluation • Contract entered into • Packages of work identified and let to contactors

21. Departmental perspective – Transportation & Highways • Summary • It is a process • Complete all the documents • Answer the questions • Submit everything requested • Do not Qualify your tender • Don’t assume the evaluation team know what you do

22. Key issues for the future • Sustainable Procurement will impact on the way that we go about our business.. • Climate Change • Environmental • Social Benefits • Regeneration of local economy

23. Key issues for the future The scientific evidence of climate change

24. Key issues for the future • Don’t forget the lag- time! • The weather events we are experiencing now are generated by CO2 emissions of around 30 years ago • Human related greenhouse gases emissions rose by 70% [and CO2 by 80%] between 1970-2004 • ‘Business as usual’ is expected to bring a doubling of emissions by 2030

25. Key issues for the future UN Chief Ban Ki-moon is in no doubt… 'Climate change is the defining issue of our age.’

26. Key issues for the future Properties on Bradford Rd, Keighley in 2000 Uncontrolled fires on Ilkley Moor, Summer, 2005

27. Key issues for the future • Climate Change Action Plan • An 8-year programme to deliver transformational change: • Supporting other organisations and individuals to play their part [Eco-city campaign & pledges etc] • Piloting Carbon Budgeting in the Council • Carrying out a review of Sustainable Consumption • Influencing the sustainable design features of new buildings

28. Key issues for the future • Examples of current sustainable procurement activity • School meals service –prioritising local and seasonal food • Phasing out the use of cooled bottled water wherever possible • Piloting the introduction of a 30% bio-diesel mix for fleet vehicle fuel • Influencing waste disposal contracts • Influencing school building programmes

29. Key issues for the future • Examples of what we are looking for [1] • ISO 14001 accreditation • Using a local workforce • Supporting apprenticeships • Upskilling of existing workforce • Having your own local supply chain

30. Key issues for the future • Examples of what we are looking for [2] • Evidencing good practice in: • Energy Mgt. –from conservation measures to district heating systems and use of biomass fuel • Water Mgt. – water harvesting, sustainable urban drainage schemes • Waste mgt. – waste minimisation and recycling targets • Transport – travel plans, Euro 4 spec vehicles, SAFED driver training, use of tracker software to optimise mileage travelled

31. Doing business with the Council • Thank You for attending • Any Questions? • This presentation can be downloaded from www.bradfordbuyer.co.uk