Durham University Meet the Buyer 2010

1. Durham University Meet the Buyer 2010 Presented by: Alison Holmes MCIPS – Director of Procurement Laura Watson FInstLM MCIPS – Deputy Director of Procurement David Armstrong MCIPS – Strategic Contracts Manager Lyndsay Keane – Strategic Contracts Manager Liam Glasper – Strategic Contracts Manager 6th, 12th and 13th May 2010

2. Welcome • Durham University (DU) Procurement Service is proud to host this event and we thank you for your attendance; • This is the second year we have run the event, although it has been somewhat updated to reflect changes to the University’s procedures; • We hope you enjoy this session and go away having learnt something that will benefit you in the future; • The Procurement Service also hope to learn from you.

3. Agenda • Overview of the public sector procurement regulations; • Overview of the types of tender available; • Completion of tender documents; • eProcurement; • Sustainability and Corporate & Social Responsibility (CSR); • Q&A; • Conclusion and Feedback.

4. Part 1David Armstrong MCIPS • Overview of the public sector procurement regulations • Overview of the types of tender available

5. History of EU Legislation • Following the second world war the European Union (EU) was created with the aim of opening up borders and generating higher levels of cooperation between member states. Public Procurement Law was introduced and four Regulationswere created for the following areas: • Utilities; • Works; • Goods; • Services.

6. History of EU Legislation • In 2004 the EU decided to consolidate these into one directive in order to make it easier for all users. • In 2009 the Remedies Directive was introduced to further ensure fairness and transparency by offering suppliers additional rights and protections.

7. Thresholds

8. Lotted Tenders • Tenders may be broken down into separate elements (lots). • Suppliers can then choose to submit a proposal for a lot, a number of lots or all lots. • DU evaluates each lot separately. • Each lot is awarded to the supplier who offers the most economically advantageous offer for that lot. • Therefore lotted tenders may be awarded to a number of suppliers. • Note DU may only award the lots that offer a viable solution.

9. EU Tender Procedures • There are a number of different procedures which can be used when undertaking EU tenders: • Restricted – this is generally used when there are many potential suppliers and includes a pre-qualification or sift stage; • Open – this is generally used when there are fewer suppliers; all of which will be invited to tender.

10. Timescales • Timescales for tenders will be determined by DU staff and will be dependant upon the complexity of the tender; • However EU tenders have set timescales in place which MUST be adhered to, as a minimum; • Non-EU tenders will be assessed and a timescale developed which is appropriate.

11. Mandatory Standstill • This is also particular to EU Tenders and provides suppliers with a window in which to lodge challenges against award decisions; • The standstill lasts for 10 days during which the tender process ‘stands still’, i.e. although the intention to award has been announced no contract is in place.

12. Mandatory Standstill • The following process must be followed: • Day 0 – All suppliers informed of the intention to award a contract; • End of Day 2 – All suppliers who wish to receive a debrief must have requested one; • Debriefs will be arranged at a convenient time within the 10 day period; • End of Day 10 – Standstill concludes; • Following Day 10 – Letter issued to successful suppliers confirming award. At this point the contract can be formalised.

13. Framework Agreements • A Framework Agreement is an agreement between the supplier and the contracting authority which in this case is DU; • This is not a contract and only becomes a contract when the two parties enter into business together via a quotation exercise or mini competition which results in a Purchase Order being placed; • There is not a contractual commitment by the contracting authority (DU) to buy something when the Framework Agreement was set up;

14. Framework Agreements • A ‘call off’ from a framework agreement IS a contract; • Framework agreements can range from quite simple regular commodity purchases to sophisticated procurement strategies and have covered legal, ICT, and consultancy services; • DU use Framework Agreements where there is a need for continuous supply such as furniture and Audio Visual (AV) equipment; • DU create their own Framework Agreements or use Framework Agreements set up by Consortia.

15. Framework Agreements • There are 2 ways to purchase from a framework agreement; • Choice based upon the original tender; • This is where you award the call off contract to the company who provided the most economically advantageous tender (M.E.A.T.) based on the original award criteria; • Where the original terms are precise enough and if catalogues provide prices of items then the most economically advantageous offer can be selected from the catalogue.

16. Framework Agreements • Mini-Competition; • Mini competitions will only be held where it is not clear that a single supplier can be directly awarded the call off contract; • Where the original framework terms are generic, but there is a need to be more specific in the requirement, then the authority must devise additional criteria to identify all capable suppliers;

17. Award Criteria • Contracts are awarded on the basis of the Most Economically Advantageous Tender (MEAT) – this is not necessarily the cheapest option but rather that which provides the best value of money; • MEAT criteria can include such areas as: • Environment; • CSR; • Health & Safety; • Quality; • Appropriateness of solution; • Price; • Commercial aspects.

18. Award Criteria • All contract notices and tender documentation will provide suppliers with a breakdown of weightings within each area being evaluated. • Additionally unsuccessful suppliers will be given detailed information on how they faired within each of these areas during debrief.

19. Part 2Lyndsay Keane • Step by step guide to each area of a Pre-Qualification Questionnaire and a tender; • Using 2 stage tender to ensure all areas covered.

20. General Advice • Try and answer all questions; • Be specific to the tender you are bidding for; • Answer the question asked; • Proof read your responses; • Don’t be afraid to ask questions; • Don’t leave it till the last minute!

21. PQQ Stage – Introduction • Provides guidance and background information • Closing date • Weightings • Timetable

22. Information for Vendors • University policies • Information on submissions • Additional information requests

23. Declaration • Your legal declaration that the information provided is correct.

24. Mandatory Information • Series of yes/no questions regarding the status of the company, its directors or any other person with powers of representation or decision making; • This section MUST be completed; • If not your bid will not be considered.

25. Lot Clarification • If relevant indicate which lots you are interested in providing.

26. Organisational Details • Company information • Contact information • SME information

27. Financial Information • Depends upon the tender value as to what you will be asked; • Confirmation of payments to banks, creditors and employees; • Lower value will request turnover and profit after tax figures; • Higher value or more complex tenders will request some further information in the form of an excel spreadsheet; • Creditsafe; • Parent Company Guarantee.

28. Quality Assurance • ISO9000 series; • Other relevant accreditations to the tender; • Description of quality assurance methodology: • Customer Service • Complaints Handling • Quality Control • Description of technical facilities.

29. Insurance • Provide details of insurance cover; • Tell us about sub-contractor insurance; • Tell us about any exclusions; • Provide insurance certificates.

30. References • Provide contact details for 3 references; • Relevant to the contract you are bidding for; • Responses will be used to assess company’s as part of the evaluation process.

31. Health and Safety • The University has to ensure its suppliers conform to legislation; • Depending upon the tender, questions may be asked regarding: • Policies & procedures • Enforcement action • Accident history • Working on University premises • Equipment on University premises • Substances hazardous to health

32. WEEE • Waste Electrical & Electronic Equipment Directive 2006 • Covers 3 different types of supplier: • Producer • Distributor • Neither of the above – in this case what are your arrangements? • Enforcements • Prosecutions

33. RoHS • Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive (2002/95/EEC); • Used to ensure that electrical and electronic goods are checked for hazardous substances; • Applicable whether you are a manufacturer or reseller; • Compliance Notices and convictions

34. Environmental • We are a ‘Green’ University; • Need to assess the impact of our goods and services on the environment; • ISO14001; • Environmental policy; • What can you do to help us reduce our carbon footprint; • How can the University support you to achieve your goals and targets?

35. Corporate & Social Responsibility (CSR) • Procurement Service has a CSR policy • CSR covers a wide range of topics; • Split into 2 sections: • Activity in the community • Labour rights in the Supply Chain • SA8000 accreditation

36. Diversity & Equality • Split into 2 sections: • General – used for tenders for services provided off-site or for goods delivered by courier; • High Relevance – used for tenders for services provided on our premises or for goods delivered by your company, vehicles or personnel. • Race Relations Act 1976 (amended 1983); • Discrimination • Information and Training • One Person Business

37. Supplementary Information • The University may request that you provide some information regarding your company’s experience; • Likely to be in the form of case studies; • Pick carefully from your portfolio.

38. Tender Stage - Introduction • This contains similar information to the PQQ, i.e. • General information; • Closing date • Timetable;

39. Information for Vendors • Same format as PQQ and covers: • University policies • Information on submissions • Additional information requests

40. Form of Tender • Similar to the declaration section in PQQ but with more detail; • Terms and Conditions – this is your opportunity to detail any exceptions you have to the University’s terms and conditions; • Asks suppliers to confirm: • Information given is correct; • Law; • Pricing; • The tender has been provided without collusion and in recognition of principles of fair and open competition • Liquidated damages

41. Parent Company Guarantee • This parent company guarantee is for use where a supplier entering into a contract is required by the University to provide a guarantee of its performance from its parent company. • This document is drafted from the parent company’s perspective and must be completed by the parent company. • The wording makes it clear that the parent company’s liability only arises if its subsidiary commits a breach of its contract and fails to rectify the breach. 

42. Pricing Schedule • Ask you to provide your price for the contract; • Either single price or complete and upload a schedule of rates; • Disposal costs arising from the WEEE Directive; • All-in labour rates; • Whole Life Costing.

43. Specification • This will tell you what is required under the contract; • Could be very simple, i.e. a statement that we want a piece of kit that does x, y and z; • Could be very complex describing what is required during the contract period and offering many different scenarios; • Ask you to confirm that you can comply with the specification.

44. Responses • May or may not be included; • Designed to focus suppliers to concentrate on particular areas; • Aids evaluation; • Specific questions regarding how you would undertake and manage the contract; • Be specific and relate your answers back to the specification wherever possible; • Site visits.

45. Interviews & Presentations • May ask you to attend an interview or presentation; • Likely to give you a topic for the presentation; • Less likely to provide you with a list of questions; • Right people, right place, right time.

46. Scoring • Types of Question; • Single answer • Multiple answer • Free text • For office use only; • Weighting.

47. Part 3Liam Glasper • eProcurement;

48. eProcurement • In August 2009 DU implemented an eSourcing solution called acquire through which all quotation and tendering opportunities will be made available; • This will require all suppliers who wish to tender for DU business to register on the system and submit tenders online; • Additionally, DU will be implementing a procure to pay (P2P) system later this year which will ‘e’ the whole purchasing process, from tender process (eSourcing) to raising of Purchase Orders and payment of Invoices (P2P); • Contracted suppliers will be contacted when training on the system becomes necessary.

49. There now follows a walkthrough of DU’s eSourcing system acquire; • This has been developed from a supplier’s perspective to show you what you should experience when using the system; • DU has developed some guidance notes for suppliers, copies of which can be found at the following website: • http://www.dur.ac.uk/procurement/suppliers/ • Additionally, guidance is available at the web site regarding ‘how to do business’ with DU which provides tips for suppliers on completion of tender documents.

50. Invitation to Register