Guidance for contractors
European Rules
All public sector procurement is governed by local, national and European regulations. It is useful to understand these laws as it provides a better understanding as to why local authorities carry out their procurement in a certain manner.EU legislation governs all public sector procurement. The information following refers only to Local Authorities spend. The rules are intended to promote a fair and transparent competitive process.
Where the estimated value of a contract is below the EU thresholds, the following processes must be adhered to:
| Value Band (total) | Tender/Quote | Advertising requirements and use of CompeteFor |
| £1-200 | At least one written quote | Use a supplier on CompeteFor. No advert required. |
| £201 - £10,000 | At least one written quote | Use the CompeteFor directory function to search for suitable suppliers. |
| £10,001 - £50,000 | At least three written quotes | Use the CompeteFor directory function to search for suitable suppliers. Use the CompeteFor Request for Quote function to notify suppliers. |
| £50,001 - £150,000 | At least 3 tenders. Compliance with EU regulations if appropriate |
Use the CompeteFor advert/questionnaire function to shortlist suppliers. EU requirements if appropriate. |
| £150,001 - £1.5m (up to £300,000 for consultancy agreements) | At least 4 tenders EU requirements (the number of tenders may change depending on what procurement route is selected) | Use the CompeteFor advert function to advertise. Only advertise in industry related publication if advertising routes described are unlikely to generate enough interest. EU requirements if appropriate. |
| £1.5m and over (or over £300,000 for consultancy agreements) | At least 4 tenders EU requirements (the number of tenders may change depending on what procurement route is selected) | Use the CompeteFor advert function to advertise. Only advertise in industry related publication if advertising routes described are unlikely to generate enough interest. EU requirements if appropriate. |
Where the estimated value of a contract is expected to exceed the relevant financial threshold it must be advertised in the 'Official Journal of The European Union' (OJEU). The European Procurement Directives also specify timescales that must be followed, and these are intended to ensure that a reasonable time to respond to adverts and prepare submissions is given to interested companies. For more information around he timeline or any other OJEU information please click on the following link: http://www.ojeu.com/home.html.
The thresholds are set every two years, and the following are applicable from January 2006 until December 2007:
| Services | Supplies | Works |
| £156,442 | £156,442 | £3,927,260 |
| €193,000 | €193,000 | €4,845,000 |
There are different types of tendering procedures - 'Open', 'Negotiated' or 'Restricted' - which can be used when following the EU Directives. Please open the PDF document for more details:
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