TENDERING AND CONTRACT PROCEDURES Documentation Control Reference Corporate Governance Framework Chapter 6 Date approved Approving Body Trust Board Implementation date 1 June 2010 Version 4 Supersedes NUH Version 3 (January 2009) Consultation undertaken Directors Group, Audit Committee Date of Completion of Equality Impact Assessment Target audience Distribution: Policy and Procedure(s) All Staff All staff Supporting Procedure(s) - Review Date April 2011 Lead Executive Author/Lead Manager Chief Executive Trust Secretary Further Guidance/Information Trust Secretary Ext: 66429 Deputy Trust Secretary Ext. 62908 1
Contents List Section Subject Page 1.0 Invitation to Tender 3 2.0 Opening Tenders and Register of Tenders 3 3.0 Admissibility of Tenders 4 4.0 Acceptance of Tenders 4 5.0 Quotations 6 6.0 Approved Suppliers 7 7.0 Equality Impact Assessment Statement 8 Appendix 1 Equality Impact Assessment 9 Appendix 2 Employee Record of Having Read the Policy 12 2
TENDERING AND CONTRACT PROCEDURE The Trust has now implemented electronic systems for soliciting quotations and tenders via e-tendering software. All requirements over 19,999 shall be procured without exception via this tool. 1.0 Invitation to Tender 1.1 Every tender for any requirement shall embody such of the main contract conditions as may be appropriate in accordance with the contract forms described in Section 1.3 and 1.4 below. 0.2 Every tender for building and engineering works, except for maintenance work only where Estatecode guidance should be followed, shall embody or be in the terms of the current edition of the appropriate Joint Contracts Tribunal (JCT) or Department of the Environment (GC/Wks) standard forms of contract amended to comply with Concode. When the content of the works is primarily engineering, tenders shall embody or be in the terms of the General Conditions of Contract recommended by the Institutions of Mechanical Engineers and the Association of Consulting Engineers (Form A) or, in the case of civil engineering work, the General Conditions of Contract recommended by the Institution of Civil Engineers. The standard documents should be amended to comply with Concode and, in minor respects, to cover special features of individual projects. The NEC form of contract and the Model Form of Engineering Contract should be used whenever applicable. Tendering based on other forms of contract may be used only after prior consultation with the DoH. 0.3 Every tenderer must have given or give a written undertaking not to engage in collusive tendering or other restrictive practice or any other illegal practices. 2.0. Opening Tenders and Register of Tenders 2.1 The e-tendering software will maintain a permanent and auditable record for each set of competitive invitations to tender despatched: 3
(a) (b) (c) (d) (e) The names of Suppliers invited; The names of and the number of suppliers from which tenders have been received; The total price (s) tendered; Closing date and time; Date and time of opening; 3.0 Admissibility of Tenders 3.1 If for any reason Procurement are of the opinion that the tenders received are not strictly competitive (for example, because their numbers are insufficient or any are amended, incomplete or qualified) no contract shall be awarded without the approval of the Chief Executive. 3.2 Where only one tender response is received, the Chief Executive and Director of Finance shall, as far practicable, ensure that the price to be paid is fair and reasonable and will ensure value for money for the Trust 4.0 Acceptance of Tenders 4.1 Any discussions with a tenderer pre-tender award must be carefully regulated via Procurement. 4.2 The supplier with the highest overall score is the apparent winner. This does not necessarily mean that the supplier who submitted the lowest price wins. Lowest price is not necessarily best value for money. Best value is derived by the evaluation of a number of factors including the ability to meet the requirement specified and other considerations that together combined offer the Trust the most economical whole lifetime cost of supply or service delivery. 4
4.3 No tender shall be accepted which will commit expenditure in excess of that which has been allocated by the Trust and which is not in accordance with these Instructions except with the authorisation of the Chief Executive. 4.4 All tenders recorded will be treated as confidential and shall be retained by the Procurement Department for audit purposes as required.. 5
5.0 Quotations 5.1 General Position on Quotations Quotations are required where the intended expenditure or income is greater than 4,999 (excluding VAT) and does not exceed, or is not reasonably expected to exceed, 19,999 (excluding VAT). 5.2 Competitive Quotations (i) Quotations should be obtained from at least two procurement approved suppliers based on specifications or terms of reference prepared by, or on behalf of, the Trust. (ii) All quotations should be treated as confidential and should be retained by the Procurement Department for audit. (iii) The nominated officer should evaluate the quotation and select the one which gives the best value for money. If this is not the lowest quotation if payment is to be made by the Trust (or the highest if payment is to be received by the Trust) then the choice made and the reasons why should be recorded in a permanent record held by the Procurement Department. 5.3 Non-Competitive Quotations The circumstances under which non-competitive quotations in writing may be obtained (i.e. permission to solicit a single quotation) are described in the standing orders. 5.4 Quotations to be within Financial Limits No quotation shall be accepted which will commit expenditure in excess of that which has been allocated by the Trust and which is not in accordance with Standing Financial Instructions except with the authorisation of either the Chief Executive or Director of Finance. 5.5 Late Quotations Quotations received after the due time and date may be considered at the discretion of Procurement, up to the point of awarding the contract, provided they are satisfied that there are no grounds for suspecting that there has been any fraudulent behaviour by any person. 6
6.0 Approved Suppliers Responsibility for maintaining list The Head of Procurement and/or P21 Capital Projects Director shall, on behalf of the Trust, maintain lists of competed suppliers who transparently offer the Trust best value compliantely from who tenders and quotations may be invited. These shall be kept under frequent review. All suppliers must agree to the Trust s terms and conditions of contract. (b) Building and Engineering Construction Works (i) ii) iii) (c) Invitations to tender shall be made only to suppliers included on the approved list of tenderers compiled in accordance with this Instruction or on the separate maintenance lists compiled in accordance with Estatecode guidance (Health Notice HN(78)147). Suppliers included on the approved list of tenderers shall ensure that when engaging, training, promoting or dismissing employees or in any conditions of employment, shall not discriminate against any person because of colour, race, ethnic or national origins, religion or sex, and will comply with the provisions of the Equal Pay Act 1970, the Sex Discrimination Act 1975, the Race Relations Act 1976, and the Disabled Persons (Employment) Act 1944 and any amending and/or related legislation. Suppliers shall conform at least with the requirements of the Health and Safety at Work Act and any amending and/or other related legislation concerned with the health, safety and welfare of workers and other persons, and to any relevant British Standard Code of Practice issued by the British Standard Institution. Firms must provide to the appropriate manager a copy of its safety policy and evidence of the safety of plant and equipment, when requested. Financial Standing and Technical Competence of Contractors The Director of Finance may make or institute any enquiries he deems appropriate concerning the financial standing and financial suitability of approved contractors. The Director with lead responsibility for clinical governance will similarly 7
make such enquiries as is felt appropriate to be satisfied as to their technical / medical competence. (d) Exceptions to using approved contractors If in the opinion of the Chief Executive, the Director of Finance, the Director of Estates and Facilities or the director with lead responsibility for clinical governance, it is impractical to use a potential contractor from the list of approved suppliers (for example where specialist services or skills are required and there are insufficient suitable potential contractors on the list), or where a list for whatever reason has not been prepared, the Chief Executive via Procurement should ensure that a process is in place for the appropriate checks to be carried out about the technical and financial capability of those suppliers that are invited to tender or quote. An appropriate record in the contract file should be made of the reasons for inviting a tender or quote other than from an approved list. 7.0 Equality Impact Assessment Statement The Trust is committed to ensuring that none of its policies, procedures, services, projects or functions discriminate unlawfully. An equality impact assessment is attached at appendix 1. 8
Equality Impact Assessment Report Outline Appendix 1 Remember that your EIA report should demonstrate what you do (or will do) to make sure that your service/policy is accessible to different people and communities, not just that it can, in theory, be used by anyone. A one size fits all approach can often inadvertently exclude. 1. Name of Policy or Service s 2. Responsible Manager Trust Secretary/Head of Procurement 3. Name of Person Completing Assessment Deputy Trust Secretary 4. Date EIA Completed 3 February 2010 5. Description and Aims of Policy/Service (including relevance to equalities) The describes in further detail the mandatory processes which shall be undertaken to procure goods, services, building and engineering works in accordance with domestic and European legislation and best practice. 6. Brief Summary of Research and Relevant Data The Statutory Instrument Establishing the Trust on 1 April 2006 (Establishment Order No. 782 of 2006) NHS Act 2006 European Legislation and Directives Prevention of Corruption Acts 1906 And 1916 7. Methods and Outcome of Consultation Directors Group Audit Committee 9
8. Results of Initial Screening or Full Equality Impact Assessment: Equality Group Age Gender Race Sexual Orientation Religion or belief Disability Dignity and Human Rights Working Patterns Social Deprivation Assessment of Impact 10
9. Decisions and/or Recommendations (including supporting rationale) This policy does not have an impact on any of the above strands of equality and reflects the statutory framework which regulates the procurement activities of the Trust. 10. Equality Action Plan (if required) N/A 11. Monitoring and Review Arrangements (including date of next full review) This policy is to be reviewed in-line with Trust policy. 11
Appendix 2 EMPLOYEE RECORD OF HAVING READ THE POLICY Title of Policy/Procedure: TENDERING AND CONTRACT PROCEDURES I have read and understand the principles contained in the named policy. PRINT FULL NAME SIGNATURE DATE 12