TENDERS AND QUOTATIONS POLICY & PROCEDURE

Transcription

1 Edition No: 2 ID Number: POLCF017 Dated: 30/11/2010 Review Date: 30/11/2011 Document ID: Policy & Procedure Document Type: Corporate Directorate: Finance Category: Finance Department(s): Finance Author: Head of Financial Services Sponsor: Director of Finance Policy Dissemination Corporate To all Medway NHS Trust Staff Consultation Process Title of Individuals Consulted Name of Committee / Group Consulted Date Approval Signatures Job Title Signature Date 1. Director of Finance Jeremy Moon Deputy Director of Finance Stephen Orpin Corporate Approval Committee / Job Title Date Trust Risk Management Group January 2007 Document Control / History Edition No Reason for Change 1 Updated into new format and general review 2 Updated for new legislation and general review References: Document: Standards for Better Health (SfBH) NHSLA Risk Management Standards for Acute Services (CNST) Foundation Trust (FT) Ref No: Edition No: 2 Page 1 of 10

2 Table of Contents Section Page POLICY DISSEMINATION... 1 CONSULTATION PROCESS... 1 APPROVAL SIGNATURES... 1 CORPORATE APPROVAL... 1 DOCUMENT CONTROL / HISTORY... 1 REFERENCES:... 1 TABLE OF CONTENTS AIM & OBJECTIVES ROLES & RESPONSIBILITIES PROCEDURE EQUALITY IMPACT ASSESSMENT STATEMENT MONITORING & REVIEW... 9 Edition No: 2 Page 2 of 10

3 1 INTRODUCTION 1.1 These procedures are designed to ensure that the most competitive price for a contract is obtained by the Trust in the most competitive way without compromising the level of quality required of the goods or services being supplied. There will be occasions however when it is not practical to adhere to the competitive stance of the tendering process but guidance is also given for these situations. 1.2 Basically the system for Tenders and Quotations can be seen in separate stages or sections and management should look to ensure that there is sufficient segregation of duties between the appointed officers in each section. 1.3 Management skill is also needed to select the best tenders in terms of the applicant s financial and technical abilities. 1.4 The Financial Limits are an important guide and management should ensure that these are understood and adhered to by the officers involved before the tendering and quotation process begins. 2 AIM & OBJECTIVES 2.1 The key objective of the tendering system is, within the constraints imposed by prescribed financial limits and without compromising the level of quality required, to award the most appropriate contract to the most suitable contractor at the most advantageous price. This objective can be achieved by adhering to detailed procedures on: Selection and invitation to tenders; Receipt and safe custody of tenders and records; Opening and recording of tenders; Evaluation and acceptance of tenders Quotations are slightly different because formal tendering procedures do not apply. Quotations are sought for contracts which are below the financial limits set for tendering. However, the key objective for quotations remains the same. 3 ROLES & RESPONSIBILITIES 3.1 The detailed procedure for arranging tenders is applied principally by the Supplies Department through which bids for goods and services are requested. This does not include quotations and tenders for building works that are obtained by the Estates Department. 3.2 In cases where the Trust utilises another NHS body for procurement services (e.g. SEC Collaborative Procurement Hub) then at all times the Tender policy applies to that body. 4 PROCEDURE 4.1 Introduction Edition No: 2 Page 3 of 10

4 4.1.1 Under certain financial circumstances competitive tendering must be used (see Section 4.8 Financial Limits). These procedure notes (Sections 4.1 to 4.5) presuppose that competitive tendering has been identified as the means of securing a contract The Quotations section (Section 4.7) deals with the procedures to be followed when competitive tendering is not identified as the means of securing a contract. 4.2 Selection and Invitation to Tender Companies selected for tender must be reviewed for quality of product or service and for technical and financial competence The Trust should ensure that a sufficient number of invitations to tender are sent to firms to ensure adequate competition (see Section 4.8 Financial Limits) As well as the contract specifications the invitation to tender must clearly indicate: the time and date for return of tenders that tenders should be returned in a plain, sealed package (or envelope) supplied by the Trust. The pre-printed label (or envelope) should bear the word Tender followed by the reference to which it relates and the latest date and time for the receipt of such tender Every tender for goods, materials, services or disposals shall embody such of the NHS Standard Contract Conditions as are applicable. 4.3 Receipt and Safe Custody of Tenders and Records The recipient of the tenders should immediately endorse the envelopes with the time and date of receipt Envelopes opened inadvertently should be resealed immediately. Their contents should not be examined further once their identity as tender documents has been identified The tender documents should then be passed unopened to the designated custodian The designated custodian should identify and record all tenders received by the closing date and identify separately all those received late The custodian should not be involved in any other part of the tendering system. 4.4 Opening and Recording of Tenders All eligible tenders should be opened at the same time, as soon as practicable, after the time prescribed for their receipt. Edition No: 2 Page 4 of 10

5 4.4.2 As soon as practicable after the date and time stated as being the latest time for the receipt of tenders, they shall be opened by two senior officers/managers designated by the Chief Executive and not from the originating department A member of staff from the originating department may be present as an observer but must not take part in any of the procedures described in this section Every tender opened should be stamped with the date of opening and initialled by two of the authorised officers A register should be maintained which should record the following information: The names of all contractors invited, whether or not they have submitted a tender; An endorsement Did Not Receive should be made against the name of any contractor who has not submitted a tender Against each entry the tender openers should record the amount of the tender; Annotated details of any apparent alterations on the tender documents should be entered onto the register. NB a report should be made in the record if on any one tender alterations are so numerous that recording or annotation cannot reasonably be carried out The tender openers should sign the register and record the date of opening Any tenders received late and/or opened after the original opening session should, if authorised as acceptable, (see Section 4.6 Post Tender Negotiations) be recorded in a similar manner as the originals. 4.5 Tender Evaluation and Acceptance NB. The purpose of the evaluation is to ensure that the most appropriate tender is recommended for acceptance. It need not necessarily be the lowest priced tender The evaluation officer should observe the same degree of security and confidentiality as everyone else in the tendering process The Trust should ensure that the evaluation officer has sufficient technical ability to evaluate the detail of the tender All tenders should be evaluated on the same criteria Particular attention should be given to: adherence to specification and other requirements, quality of product or service provided, Edition No: 2 Page 5 of 10

6 rates and prices percentage adjustments and balancing items, ambiguities, qualifications and alternative offers If the lowest tender is not recommended for acceptance the reasons for this should be set out in a permanent record by the evaluating officer and should be available to the authorising group/person Acceptance of a tender should be made within the validity period indicated in the Invitation to Tender A letter of acceptance should be sent but should not seek to change the terms and amounts previously tendered by the contractor Although the letter of acceptance forms the contract, it may be subsequently supported by a deed if the Trust wishes the contract to be under seal, (see Section 4.8 Financial Limits) Letters to unsuccessful tenders should not be dispatched until the successful tenderer has acknowledged receipt of acceptance Unsuccessful tenderers may be supplied with information so that they are aware of how their tender compared with others. To maintain confidentiality with regard to the other tenderers a list may be published of the tenderers names in alphabetical order and a separate list of tender values in ascending or descending order. 4.6 Post Tender Negotiations and Admissibility of Tenders No late tenders should be accepted (regardless of circumstances) if the other tenders received have already been opened Late tenders shall not be opened for consideration unless they were despatched in good time but arrived late through no fault of the applicant. However, a tender sent for example by second class post the day before the deadline would not be deemed as being despatched in reasonable time or with reasonable effort Late tenders with an early company franking machine postmark should not be accepted as this is no guarantee that the tender was posted in reasonable time Tenders which identify the name of the company on the envelope should not be accepted. The name may be identifiable by a company stamp or a company postal franking machine stamp bearing the company s name Amended tenders (i.e. those amended by the tenderer upon his own initiative either orally or in writing after the due time for receipt) shall not be considered If contact with the tenderer is needed to elucidate on technical points, ambiguities etc before award of the contract this need not disqualify the tender Incomplete tenders (i.e. those from which information necessary for the adjudication of the tender is missing) should be reported to the Chief Executive and Finance Director who will decide whether and how further information should be sought, or whether the incomplete tenders should be regarded as inadmissible or whether re-tendering is desirable. Edition No: 2 Page 6 of 10

7 4.6.8 When the number of tenders received is less than the recommended minimum (see Section 4.8 Financial Limits), the Chief Executive and Finance Director shall decide whether re-tendering is desirable Where only one tender/quotation is sought and/or received the Trust shall, as far as practicable, ensure that the price to be paid is fair and reasonable Return of inadmissible tenders:- 4.7 Quotations Tenders deemed to be inadmissible for any of the above reasons should be returned to the tenderer by an officer designated by the Chief Executive with an explanation of why the tender is deemed to be inadmissible The designated officer should not be from the originating department but the originating department should be informed of the explanation given Competitive quotations are required where formal tendering procedures are not adopted and where the intended expenditure or income during the total period of the contract exceeds or is reasonably expected to exceed 5,000 but not exceed 24, Non-competitive quotations in writing may be obtained for the following purposes: the supply of proprietary of other goods of a distinctive character and the rendering of services of a special nature for which it is not, in the opinion of the Chief Executive and the Finance Director, possible or desirable to obtain competitive quotations; the supply of goods or manufactured articles of any kind which are required quickly and are not obtainable under existing contract; or miscellaneous services, supplies and disposals within financial limits determined by the Trust where the goods or services are for building and engineering maintenance the responsible works manager must certify that the first two conditions and apply. 4.8 Financial Limits Every contract for building and engineering works which exceeds the sum of 1,000,000 shall be executed under the common seal of the Trust. An official letter of acceptance for every contract resulting from an invitation to tender shall be issued for all building and engineering work in excess of 50,000. Edition No: 2 Page 7 of 10

8 4.8.2 Quotations or Tenders as appropriate should be obtained from at least 3 suppliers up to , 4 from 50,000 to 249,999 and a minimum of 5 over 250,000., based on specifications or terms of reference prepared by, or on behalf of, the Trust Every contract for supplies which exceeds the European Union Public Procurement s prevailing threshold ( 101,323 Goods and Services) shall be subject to Public Procedure requirements and rates as defined under European Union Public Procurement Directives Supplies, Works and Services Contracts guidelines Competitive quotations shall be obtained in writing wherever possible from a minimum of 3 suitable firms where the expenditure will be not less than 5,000 and not more than 25, Where expenditure is expected to range from 1,000 to 4,999 then quotations should be obtained in writing wherever possible from at least 3 suitable firms. However, for building and engineering expenditure non-competitive quotations up to 5,000 can be sought Tenders that are between 25,000 and the European Union threshold need to go through the formal tendering procedure Tenders expected to exceed the European Union threshold should go through both the formal tendering procedure and the European Union Journal Advert procedure. 4.9 Waiving Tender Procedures Formal tendering procedures may be waived in the following circumstances In very exceptional circumstances where the Chief Executive decides that formal tendering procedures would not be practicable or the estimated expenditure or income would not warrant formal tendering procedures, and the circumstances are detailed in an appropriate Trust record; Where the requirement is covered by an existing contract; Where national framework agreements are in place Where a consortium arrangement is in place and a lead organisation has been appointed to carry out tendering activity on behalf of the consortium members; Where the timescale genuinely precludes competitive tendering but failure to plan the work properly would not be regarded as a justification for a single tender; Where specialist expertise is required and is available from only one source; When the task is essential to complete the project, and arises as a consequence of a recently completed assignment and engaging different consultants for the new task would be inappropriate; Edition No: 2 Page 8 of 10

9 4.9.9 There is a clear benefit to be gained from maintaining continuity with an earlier project. However in such cases the benefits of such continuity must outweigh any potential financial advantage to be gained by competitive tendering; for the provision of legal advice and services providing that any legal firm or partnership commissioned by the Trust is regulated by the Law Society for England and Wales for the conduct of their business (or by the Bar Council for England and Wales in relation to the obtaining of Counsel s opinion) and are generally recognised as having sufficient expertise in the area of work for which they are commissioned. The Director of Finance will ensure that any fees paid are reasonable and within commonly accepted rates for the costing of such work. Where it is decided that competitive tendering is not applicable and should be waived, the fact of the waiver and the reasons should be documented and recorded in an appropriate Trust record and reported to the Integrated Audit Committee at each meeting. 5 EQUALITY IMPACT ASSESSMENT STATEMENT 5.1 All public bodies have a statutory duty under the Race Relation (Amendment) Act 2000 to set out arrangements to assess and consult on how their policies and functions impact on race equality. This obligation has been increased to include equality and human rights with regard to disability, age and gender. 5.2 The Trust aims to design and implement services, policies and measures that meet the diverse needs of our service, population and workforce, ensuring that none are placed at a disadvantage over others. This strategy was found to be compliant with this philosophy. 5.3 Equality Impact Assessments will also ensure discrimination does not occur on the grounds of Religion/Belief or Sexual Orientation in line with the protected characteristics covered by the existing public duties. 6 MONITORING & REVIEW Edition No: 2 Page 9 of 10

10 This policy is to be reviewed in line with Trust policy. What will be monitored The relevance and application of the procedure How/Method/ Frequency Annually Lead Head of Financial services Reporting to Director of Finance Deficiencies/ gaps Recommendations and actions Relevant sections amended and updated in accordance with latest SFIs and legislation Implementation of any required change Edition No: 2 Page 10 of 10