Author(s): Procurement Manager & Head of Corporate Services Procurement and Contract Rules

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1 Author(s): Procurement Manager & Head of Corporate Services Procurement and Contract Rules Approved by: Audit & Ethics Committee Date: 23 February 2018 Next Review: vember

2 Contents 1. Introduction Form and Certification of Contracts Compliance Exempt Contracts Internal Providers Authorised and Delegated Officers Preliminary Market Consultations Division of Contracts into Lots Framework Agreements Shared Services Collaborative Arrangements Estimating the Contract Value Low Value Procurement (Quotations) Below 5,000 (Band A) Intermediate Value Procurement (Quotations) - Between 5,000 and 25,000 (Band B) Medium Value Procurements (Tenders) - Between 25,000 and 181,302 (for Goods and Services) or less than 4,551,413 (for Works) (Band C) Schedule 3 Services (Light Touch Regime) between 181,302 and 615,278 (Band D) High Value Procurements (Tenders) over 181,302 (for Goods and Services), or over 4,551,413 (for works) (Band E) Late Quotations or Tenders Advertising of Contract Opportunities and Reduced number of Tenders Tender Evaluation Errors in Tenders/Quotations and n-compliant Tenders/Quotations Abnormally Low Tenders Post Tender Negotiation Contract Award tice Contract Terms and Conditions Extension of Contracts Variation of Contracts Security and Performance Liquidated and Other Damages Termination of Contract Sub-Contracting Consultants Record and Document Retention and Control Waiver of Procurement and Contract Rules (Procurement Exception Report) Appendix A: Band A - Low Value Procurement (Quotations) Below 5,

3 Appendix B: Intermediate Value Procurement (Quotations) - Between 5,000 and 25,000 (Band B) Appendix C: Medium Value Procurement (Tenders) - Between 25,000 and 181,302 (for Goods and Services) or less than 4,551,413 (for Works) (Band C) Appendix D: Schedule 3 Services (Light Touch Regime) between 181,302 and 615,278 (Band D) Appendix E: High Value Procurements (Tenders) over 181,302 (for Goods and Services), or over 4,551,413 (for works) (Band E) Document Control Revision History Distribution and tification

4 1. Introduction 1.1. These Procurement and Contract Rules shall apply to all areas of activity by Bron Afon Community Housing ( Bron Afon ), including any type of sub-contracting, except: a) for the Exempt Contracts described in section 4 below; b) in cases where Bron Afon is acting on behalf of, or under arrangements with another body and it is a requirement of the arrangement that the Procurement Rules of that body apply the occurrence of which shall be notified to Procurement in writing for information and audit purposes Procurement is the process by which Bron Afon manages the acquisition of all its goods, services and works to provide an effective service to be delivered to its tenants. It includes the identification of need, consideration of options, the actual procurement process and the subsequent management and review of the contracts These Procurement and Contract Rules should be read by anyone who spends money buying goods, services or works on behalf of Bron Afon in conjunction with the following documents: a) Bron Afon s Procurement Procedure Document b) Bron Afon s Scheme of Delegated Authority c) Bron Afon s Community Benefits Procedure Document 1.4. Procurement by Bron Afon is governed by detailed European and UK legislation as are other areas of Bron Afon s contracting activities. In addition procurement by Bron Afon is governed by its own Standing Orders, Financial Regulations and Scheme of Delegated Authority The law requires all Bron Afon procurement and contracting to be conducted transparently, fairly and in a non-discriminatory and non-disproportionate manner. In the event of statutory or other legal requirements exceeding the requirements contained within these Procurement and Contract Rules, then statute shall take precedence over any provision in these Procurement and Contract Rules All references to competitive tenders and quotations within these Procurement and Contract Rules shall apply (with such changes as are appropriate) equally to circumstances where the contract involves the receipt of income by Bron Afon through disposal of any asset as they do purchases unless specifically stated otherwise. However the disposal of any interest in land and buildings is excluded in line with section 4 Exempt Contracts The objectives of the Procurement and Contract Rules are: a) To ensure compliance with Bron Afon s Standing Orders, Financial Regulations, Scheme of Delegated Authority, and relevant European Legislation and UK legislation. b) To make certain that Bron Afon obtains value for money and achieves the required level of quality and performance in all purchases that are made. c) To ensure that all procurement is conducted in a fair, open and transparent and manner. 4

5 d) To control expenditure against budget, ensuring that the procurement of all goods, services and works are properly authorised All thresholds and values referred to in the Procurement and Contract Rules are exclusive of VAT. The thresholds apply to the entire value of the contract even if the work is let in stages, they are not annual limits. Requirements must not be split in order to reduce the value of a purchase and so avoid competition or appropriate procurement route as this is a breach of the Regulations. The thresholds and values specified shall be reviewed every two (2) years by the Audit and Ethics Committee and at such time as EU or UK Legislation requires Bron Afon seeks to maximise Community Benefits wherever possible in line with the Bron Afon Community Benefits Procedure Document. Where relevant to the procurement or contract value further information on this should be sought from the Procurement Services Team and Community Involvement Team before commencing any procurement activity Directors and their staff responsible for procurement activity shall provide the Procurement Manager (or other staff as may be identified by the Procurement Manager) with any necessary information and access to all documents and records under their control as may be required to fulfil all the obligations and requirements of these Procurement and Contract Rules. This will include provision of documents and records to support procurement audit and compliance checks Delegated power is granted to the Chief Executive acting in consultation with the Procurement Manager to make amendments to these Procurement and Contract Rules as necessary to comply with changes in EU or UK legislation. All changes made in accordance with this paragraph shall be reported to the next available meeting of the Audit and Ethics Committee Any doubt or uncertainty as to how these Procurement and Contract Rules are to be interpreted and any inconsistency between these Procurement and Contract Rules and any other Bron Afon policy or procedure shall be referred to the Chief Executive, whose decision shall be final. 2. Form and Certification of Contracts 2.1. Every Bron Afon contract shall be in writing in a form and on terms approved by appropriate Director and shall specify: a) The work, materials, services or things to be furnished, had, done or disposed of. b) The price to be paid (or as appropriate, the sums to be received), with a statement of discounts or other deductions, and where not known, committed estimated price or the basis upon which the final contract sum is to be calculated. c) The time or times within which the contract is to be performed, together with the termination date of the contract The award of every contract must be notified to Corporate Services in accordance with section 33 of these Procurement and Contract Rules. 5

6 2.3. The flowcharts in the Appendices set the prescribed routes for all procurements in the five (5) bands of contract value (A, B, C, D and E). These flowcharts show the principle rules and components of the relevant processes only, including the numbers of tenders or quotes to be invited. Detailed guidance of the processes is contained in the Procurement Procedure Document, which should be followed in all cases Every procurement process in Band B to E must be notified to the Procurement Services Team in accordance with section 31 of these Procurement and Contract Rules The Scheme of Delegated Authority specifies who is delegated to sign a contract on behalf of the Bron Afon in accordance with its value. The Scheme of Delegated Authority is available on Buzz. Signatories are the minimum level of responsibility required. In addition the Procurement Services Team should be consulted prior to the award of any contract in Band C to E All contracts over the value of 1,000,000 must be approved by two (2) Board Members; this will be arranged through the Governance Team. However, it is the responsibility of the Authorised Officer leading the procurement process to notify the Governance Team in good time the requirement for Board Members signatures All Framework Arrangements and any high value or high risk contracts (as well as those contracts specified by the Chief Executive) must be under seal and attested by two (2) Directors. 3. Compliance 3.1. Every contract entered into by Bron Afon shall be entered into pursuant to or in connection with Bron Afon s functions and shall comply with: a) All relevant statutory provisions; b) The relevant European Procurement Directives (the EU Treaty, the general principles of community law and the European Union s Public Contracts Directive (2014/24/EU) implemented by the Public Contracts Regulations 2015 or such other amendment, variation or replacement Regulations in force from time to time ("the Regulations") c) Bron Afon s Standing Orders, these Procurement and Contract Rules, the Financial Regulations and the Scheme of Delegated Authority The highest standards of probity are required of all staff and contractors involved in the procurement, award and management of Bron Afon s Contracts. Any serious non-compliance could lead to Bron Afon s disciplinary procedures being invoked All staff are reminded of their responsibilities in relation to gifts and hospitality and should ensure that they comply with their obligations set out in the Staff Code of Conduct and any guidance issued in that regard All staff shall take appropriate measures to effectively prevent, identify and remedy Conflicts of Interest arising in the conduct of procurement procedures so as to avoid any distortion of competition and to ensure equal treatment of all 6

7 organisations as set out in the Regulations. In particular all staff shall ensure compliance with section 14 Declaration of Interests in the Staff Code of Conduct All contracts must contain a provision allowing Bron Afon to terminate without compensation in the event that there has been actual or attempted fraud or corruption in connection with the procuring, continuation, renewal or performance of the contract. Including appropriate exclusion grounds as set out in the Regulations All contracts must contain provisions proportionate to the contract scope and value allowing Bron Afon to monitor the performance of contractors and terminate contracts for reasons of poor performance. This may include the use of Key Performance Indicators, Performance Rating systems or regular performance meetings with the external provider Any failure to comply with any of the provisions of these Procurement and Contract Rules, the Financial Regulations or UK and European Union legal requirements must be reported by the appropriate Director to the Chief Executive. 4. Exempt Contracts 4.1. The following contracts are exempt from the requirements of these Procurement and Contract Rules: a) Employment contracts (this exemption does not extend to the recruitment of agency staff or external secondment arrangements). b) Personal contracts for Services (detailed advice must be sought from HR and Procurement Services in relation to the use and application of this exemption). c) Contracts relating solely to disposal or acquisition of an interest in land and property, for which separate arrangements exist. d) In a genuine emergency threatening public health, injury to persons or serious and immediate damage to property the Authorised Officer in consultation with the appropriate Director can take any necessary action to alleviate the threat. This power is limited to the alleviation of the threat and does not extend to any works beyond what is strictly essential. e) The appointment of Counsel. f) Where the approving (or Delegated) officer considers that additions, maintenance or repairs can only be carried out by the original contractor or supplier. g) Where an external funder makes specific requirements i.e. the terms and conditions of the funding must be followed Where it has been necessary to procure under 4.1(d) retrospective recording and notification of the procurement must be undertaken in accordance with section 34 of these Procurement and Contract Rules Where it has been necessary to procure under 4.1(e) or 4.1(f) the provisions of section 19 of these Procurement and Contract Rules must be followed. 5. Internal Providers 5.1. Before commencing the procurement activity and subject to 4.1(f) above, the Authorised Officer shall ascertain whether an in-house service provider is able to carry out the works or service. If it is confirmed in writing by the in house provider 7

8 that they do not have the capacity to undertake the works, the relevant Authorised Officer can proceed to procure in accordance with these Procurement and Contract Rules For the purposes of this section an in-house provider is not considered to have capacity to undertake the work where more than twenty-five percent (25%) of the labour element of the value of work for the proposed contract would need to be sub-contracted to an external provider Where the in-house provider is able to and has the capacity to undertake the works in line with 5.2, the works should automatically be allocated subject to approval in accordance with the Scheme of Delegated Authority and in accordance with any funding terms and conditions and relevant requirements under Section 20 of the Landlord and Tenant Act 1985 (as amended); such decisions shall be recorded in writing. If in such a case the Authorised Officer does not wish to use the in-house provider then they must record their decision in writing for audit and information purposes When contracting with internal providers, clause 2.2 of these Procurement and Contract Rules applies and relevant requirements under Section 20 of the Landlord and Tenant Act 1985 (as amended). 6. Authorised and Delegated Officers 6.1. Authorised Officer - This phrase refers to those members of staff named in the Central Register held by the Procurement Manager. The Central Register can be found on Buzz. These members of staff are authorised by Heads of Service or Directors to lead a given procurement process on behalf of Bron Afon but have no delegated powers Delegated Officer - This phrase refers to those Officers who have powers delegated to them through Bron Afon s Scheme of Delegated Authority. 7. Preliminary Market Consultations 7.1. Before commencing a procurement process, Bron Afon may conduct market consultations with a view to preparing the procurement documentation and informing organisations of Bron Afon s procurement plans and requirements, including seeking or accepting advice from independent experts, consortium purchasing organisations or others Prior to undertaking market consultation, advice and guidance must be sought from the Procurement Manager to ensure that such preliminary consultation does not have the effect of distorting competition and does not result in violation of the principles of non-discrimination, transparency and proportionality. 8. Division of Contracts into Lots 8.1. Bron Afon may where it considers appropriate decide to award a contract in a form of separate lots and may determine the size and subject matter of such lots in accordance with the Regulations. When developing the contract Officers should ensure they give consideration to the appropriate division of contracts into lots to allow for the participation of SMEs. The Procurement Services Team can provide 8

9 advice and guidance on the development of appropriate and fit for purpose lotting strategies. 9. Framework Agreements 9.1. Before commencing the procurement activity, in consultation with the Procurement Manager (or nominated Procurement Officer), the Authorised Officer must ascertain whether there is a recognised Framework Agreement in place that should or could be used. Details of Framework Agreements are held by the Procurement Services team. Further details on the use of Framework Agreements can be found in the Procurement Procedure Document The Framework Agreement may include within its terms a requirement for a minicompetition or further competition process between those organisations who are party to the Framework Agreement. These shall be tendered in accordance with the particular Framework Agreement, these Procurement and Contract Rules and the Procurement Procedure Document Where Bron Afon is able to call off from existing Framework Agreements procured by central Government agencies, purchasing consortia, other local authorities and housing associations or public bodies, then Bron Afon may benefit from using those contracts without entering into a separate procurement exercise. Where such Framework Agreements contain a number of different organisations able to provide a particular category of goods or services a mini-competition or further competition process between those organisations who are parties to the Framework Agreement must be carried out in accordance with the particular Framework Agreement However, if such Framework Agreements are used it will be in accordance with the terms of those agreements which may not always be appropriate to the particular procurement in question. Advice should be sought from the Procurement Manager (or delegated Procurement Officer) prior to commencing procurement through any Framework Agreement. 10. Shared Services Prior to Bron Afon committing to a shared service arrangement with another public body approval must be sought from the Chief Executive or Director of Resources. 11. Collaborative Arrangements When a requirement can be fulfilled through an existing arrangement already established by another Contracting Authority and the requirements of the Regulations have been complied with by that Contracting Authority, the arrangement will be in compliance with these Procurement and Contract Rules. This includes purchasing through arrangements that have been entered into for example but not limited to the National Procurement Service (NPS), Crown Commercial Services (CCS) and Procurement for Housing (PfH) Details of the collaborative arrangements currently in use by Bron Afon are available on Buzz. The Procurement Services Team will assist in identifying other suitable Collaborative Arrangements which may exist and provide more information, guidance and advice regarding their use. 9

10 11.3. Before committing Bron Afon to a contract as set out in 11.1, the Authorised Officer must seek written advice from the Procurement Manager (or nominated Procurement Officer). 12. Estimating the Contract Value For the sake of consistency, all Contract values should be calculated, strictly in accordance with the Regulations. For the purposes of these Procurement and Contract Rules the value of any contract shall be taken as the value or consideration for the contract as a whole over the contract period (which is normally a three or four year period). Bron Afon shall make the best use of its purchasing power by aggregating purchases wherever possible. In particular contracts for supplies, services or works shall not be split (disaggregated) in an attempt to avoid the applicability of these Procurement and Contract Rules or the Regulations The evaluation of cost shall be carried out on the basis that Bron Afon seeks the most economic packaging of the contract. Deliberate downsizing of contracts in order to avoid any provisions of these Procurement and Contract Rules or the Regulations shall not be permitted Full details on assessing the value of all contracts can be found in the Procurement Procedure Document. 13. Low Value Procurement (Quotations) Below 5,000 (Band A) See Appendix A. 14. Intermediate Value Procurement (Quotations) - Between 5,000 and 25,000 (Band B) See Appendix B. 15. Medium Value Procurements (Tenders) - Between 25,000 and 181,302 (for Goods and Services) or less than 4,551,413 (for Works) (Band C) See Appendix C. 16. Schedule 3 Services (Light Touch Regime) between 181,302 and 615,278 (Band D) See Appendix D. 17. High Value Procurements (Tenders) over 181,302 (for Goods and Services), or over 4,551,413 (for works) (Band E) See Appendix E. 18. Late Quotations or Tenders Any tender, quotation or pre-qualification questionnaire received after the specified closing date and time shall not be formally considered but will be opened for the sole reason of being returned to the person who submitted the document. The only discretion in the above shall be exercised by the Procurement Manager in consultation with the Head of Corporate Services (even for quotations and tenders 10

11 not returned to Procurement Services) who shall record reasons in writing for allowing a late submission to be considered. Any reasons must include confirmation that the contents of the late quotation or tender have not been considered and that the other quotations or tenders have in the meantime been kept securely sealed so that all are opened at the same time and that no person submitting a quotation or tender is thereby disadvantaged. 19. Advertising of Contract Opportunities and Reduced number of Tenders For a procurement process with a value between 5,000 and less than 25,000 where an Authorised Officer wishes to invite less than three (3) organisations to submit a tender, they must seek the approval of the Procurement Manager in writing except in accordance with 19.4 below Adequate publicity of contract opportunities must be given in order to satisfy the principle of transparency. All procurement process in excess of 25,000 must be advertised on Sell2Wales. For a procurement process in excess of 25,000, where an Authorised Officer believes that the contract opportunity should not be advertised on Sell2Wales, they must seek the approval of the Procurement Manager in writing For a procurement in excess of 25,000, where an Authorised Officer wishes to invite less than five (5) organisations to submit a tender, they must seek the approval of the appropriate Director following consultation with the Procurement Manager For all procurements in excess of 5,000 where an Authorised Officer wishes to invite only one (1) organisation to bid they must seek the approval of the Chief Executive and a Director not involved in the procurement process. In accordance with section 34 below Where, having invited the required number of quotations or tenders as specified in these Procurement and Contract Rules, the number of acceptable and fully priced tender submissions is less than 50% of the number of organisations required to be invited, then consideration must be given (which must be recorded in writing) to rerunning the procurement. If the contract is for a sum between 5,000 and less than 25,000 the decision can be taken by the appropriate Head of Service after consultation with the Procurement Manager. If the contract is for a sum in excess of 25,000 the decision will be taken by the appropriate Director after consultation with the Procurement Manager. 20. Tender Evaluation In the event of establishing award criteria other than the lowest price (or, in the case of the disposal of an asset, the highest price), the evaluation criteria shall be predetermined and approved by the Procurement Manager (or nominated Procurement Officer) and fully set out in the Invitation to Tender or Quote documentation. Any particular scoring or weighting attributable to any criteria must be clearly stated. In addition, the criteria shall be strictly observed (and remain unchanged) at all times throughout the contract award procedure. Tenders shall only be evaluated in accordance with the evaluation criteria set out in the Invitation to Tender or Quote documentation. 11

12 21. Errors in Tenders/Quotations and n-compliant Tenders/Quotations Tenders or Quotations which do not comply with Bron Afon s requirements as set out in the Invitation to Tender or quote or which contain minor errors must be dealt with in accordance with the guiding principles set out within the Regulations and upon compliance with advice received from the Procurement Manager (or nominated Procurement Officer). An example would be (but not limited to) in the event that a genuine pricing and/or arithmetical error has been made by the organisation which has come to the attention of Bron Afon prior to a contract award being made. In such a case, they may be given an opportunity to correct that error. correction shall be allowed unless considered proportionate and does not distort competition in accordance with the Regulations. other adjustment, revision or qualification is permitted. All areas of rectification or clarification must be conducted in writing Tender or Quotation documents must state how errors in Tenders or Quotations will be dealt with. 22. Abnormally Low Tenders Where as a result of identifying that the overall tendered price or costs raises significant doubts that an organisation will be able to complete the contract within the contract terms, Bron Afon shall require the organisation to explain the price or costs proposed. This must be undertaken in accordance with the Regulations and in consultation with the Procurement Manager. 23. Post Tender Negotiation For the purposes of this section Post Tender refers to the period after receipt of tenders up to and including the award of contract. Negotiation with contractors following contract award is considered to be contract variation refer to section 27 of these Procurement and Contract Rules below Where a procurement process is conducted pursuant to the Regulations, no posttender negotiations are permitted. The Authorised Officer may seek clarification from organisations where appropriate in consultation with the Procurement Manager (or nominated Procurement Officer). Negotiations on price are never permissible except where provided for within the Regulations Where procurements do not need to strictly comply with the Regulations the appropriate Director in consultation with the Procurement Manager may authorise negotiations if considered to be in the best interest of Bron Afon in accordance with guiding principles of the Regulations At all times during the procurement process Bron Afon shall ensure that all organisations participating in the procurement process are treated equally and in a non-discriminatory, transparent and proportionate manner. 24. Contract Award tice Where a contract has been tendered pursuant to the Regulations, Bron Afon shall publish a Contract Award tice in the Official Journal of the European Union no later than thirty (30) days after the date of award of the contract or such other requirements or time limits as are set out in the Regulations. This is the responsibility of the Authorised Officer leading the procurement process and 12

13 undertaken in consultation with the Procurement Manager (or nominated Procurement Officer). 25. Contract Terms and Conditions The relevant Authorised Officer shall use their best endeavours to ensure that contracts are entered into on the appropriate set of Bron Afon s terms and conditions, which shall be included with each purchase order or invitation to tender. Where this is not possible, variations to the relevant Bron Afon terms and conditions and/or the terms and conditions submitted by a Tendering Organisation must be formally reviewed and confirmed in writing by the Procurement Manager (or nominated Procurement Officer) in consultation with the appropriate Director. However, no amendment to Bron Afon s terms and conditions or the terms and conditions submitted by a Tendering Organisation shall contravene the requirements set out within the Regulations and in particular but not limited to Regulation Extension of Contracts All contracts with the provision to extend may be extended before the expiry date of the contract where it is in accordance with its original terms and conditions (which must expressly allow for extension) and it can be demonstrated that the contract extension offers value for money. Approval for such an extension shall be sought from the Procurement Manager or in accordance with the form of contract Where the terms do not expressly provide for extension and prior to the expiry of the contract, if it is felt to be in Bron Afon's interests to extend a contract, then this can only be to the extent that the Regulations allow. For instance, if the Regulations apply to the goods, works or services under the contract and if the value of the proposed extension exceeds the relevant threshold, then this is likely to be regarded as a new contract and should be competitively procured, unless one of the narrow exceptions in the Regulations applies. In cases to which the Regulations do not apply, any extension must be by negotiation in accordance with the guiding principles of the Regulations. In all cases, the extension must follow the rules set out in the Procurement Procedure Document, be approved in accordance with the Scheme of Delegated Authority and reported to the Procurement Manager for information prior to the extension becoming legally binding on Bron Afon. 27. Variation of Contracts All contract variations must be carried out within the scope of the original contract and in accordance with Regulation 72 of the Regulations where the Regulations apply to the contract Contract variations that materially affect or change the scope of the original contract are not allowed except as otherwise permitted in accordance with Regulation 72 of the Regulations All significant contract variations must be in writing and signed by both Bron Afon and the Contractor. It will be for the appropriate Head of Service or contract manager to determine the value of the variation and whether or not the proposed variation is deemed to be significant. All necessary approvals must be sought in line with the Scheme of Delegated Authority prior to the variation taking place. Any 13

14 variation considered by the Head of Service to be of such significance that it could affect contract or service delivery must be reported to the appropriate Director for approval in addition to the requirements of the Scheme of Delegated Authority. 28. Security and Performance Any Authorised Officer shall, before accepting or recommending acceptance of a quotation or tender, consider whether it is appropriate in all the circumstances to require and take sufficient security for the due performance of any contract. 29. Liquidated and Other Damages Where appropriate contracts for the execution of works shall provide for liquidated damages to be paid by the contractor in case the terms of the contract are not duly performed, save where an alternative type of remedy is agreed in consultation with the Procurement Manager (or nominated Procurement Officer) and appropriate Director Every contract for the supply of goods or materials by a particular date or series of dates which falls into Bands B, C, D or E shall contain a clause to secure that, should the contractor fail to deliver the goods or materials, or any portion thereof within the time specified in the contract, Bron Afon, without prejudice to any other remedy for breach of contract, shall be at liberty to determine the contract either wholly, or to the extent of such default and to purchase other goods, or materials, as the case may be, of the same or similar description to make good (a) such default, or (b) in the event of the contract being wholly determined the goods or materials remaining to be delivered. The clause shall further secure that the amount by which the cost of such purchasing other goods or materials exceeds the amount by which would have been payable to the contractor in respect of the goods or materials, as the case may be, replaced by such purchase if they had been delivered in accordance with the contract, shall be recoverable from the contractor save where another type of remedy is otherwise agreed by the appropriate Director in consultation with the Procurement Manager The above provisions are without prejudice to the obligation to ensure that the form and terms and conditions of all contracts are as approved by the appropriate Director in consultation with the Procurement Manager. 30. Termination of Contract For any Contract exceeding 25,000 in value, early termination must be approved by the Procurement Manager and the appropriate Director. Contracts of a lesser value may be terminated early by agreement prior to the expiry date or in accordance with the termination provisions set out in the Contract terms and conditions following consultation with the Procurement Manager (or nominated Procurement Officer) In addition to the requirements of clause 30.1 above termination of contracts must be in accordance with Bron Afon s Contractor Management Policy. 31. Sub-Contracting Any form of Bron Afon sub-contracting must comply fully with these Procurement and Contract Rules and the Regulations. 14

15 31.2. Where Bron Afon has determined that a particular type of product or provision of service will be stipulated as an essential requirement of a contract then this must be approved by the Head of Service following consultation with the Procurement Manager (or nominated Procurement Officer). 32. Consultants The commissioning/engagement of Consultants to work within Bron Afon or to undertake work on behalf of Bron Afon as part of a wider project will be subject to these Procurement and Contract Rules and paragraphs 4.35 and 4.36 of Bron Afon s Financial Regulations Where Bron Afon uses consultants to act on its behalf in relation to any procurement, then the appropriate Director shall ensure that the consultants carry out any procurement in accordance with these Procurement and Contract Rules. consultant shall make any decision on whether to award a Contract or who a Contract should be awarded to. The appropriate Director shall ensure that the consultant s performance in relation to procurement is in accordance with these Procurement and Contract Rules and the Regulations Where Bron Afon uses consultants to act on its behalf in relation to any procurement the consultant must declare any potential conflict of interest that may arise to the appropriate Director prior to the commencement of the procurement process Where the Director considers that such a conflict of interest is significant the consultant shall not be allowed to participate in the procurement process. 33. Record and Document Retention and Control For every procurement process in Band B to E the Procurement Services Team must be notified of the procurement prior to the commencement of the procurement process for information and audit purposes A Corporate Contracts Register of all contracts in Band B to E shall be administered by Procurement Services which includes a digital copy of the contract documents for each contract The award of all contracts in Band B to E must be notified to Procurement Services by the Authorised Officer in the manner set out in the Procurement Procedure Document As part of the notification process required in accordance with 31.3 above the Authorised Officer must provide Procurement Services with a digital copy of the contract documentation for inclusion in the contract register. In addition where considered necessary by the Procurement Manager, the Authorised Officer must also provide a contract user guide for inclusion in the contract register For every individual Contract above 5,000 a procurement and contract file shall be maintained by the Authorised Officer with appropriate documentation as detailed within the Procurement Procedure Document. 15

16 34. Waiver of Procurement and Contract Rules (Procurement Exception Report) Approval of waiver of any of these Procurement and Contract Rules shall only be given in exceptional circumstances and only following a written report (Exception Report) to the Chief Executive and one Director not involved with the procurement, following consultation with the Procurement Manager (or nominated Procurement Officer). The Exception Report template is available on Buzz When consulting with the Procurement Manager (or nominated Procurement Officer) and seeking approval from the Chief Executive and one Director not involved with the procurement, the originator of the report requesting a waiver of these Procurement and Contract Rules is responsible and accountable for making sure that the contents of the report are factually correct. The originator of the report should ensure that all supporting documentation is retained on an easily accessible file for auditing purposes. Should it be found that incorrect information has been knowingly or negligently submitted or omitted in order to obtain approval for a waiver of these Procurement and Contract Rules the originator of the report may be subject to the Bron Afon s disciplinary procedures A wavier of the Procurement and Contract Rules should not be used for reasons of insufficient time to complete a compliant procurement process or the existence of a preferred provider, are the principal rational for seeking the waiver. This route should only be used for example in exceptional circumstances such as:- Goods, Services or Works of an urgent nature required in cases of genuine emergency that are outside of the control of Bron Afon and its staff which may result in a Health and Safety risk. Contracts where there is no reasonable alternative supplier having consulted with the Procurement Services Team. Where work carried out by a Contractor would invalidate an existing warranty. 16

17 Appendix A: Band A - Low Value Procurement (Quotations) Below 5,000 The provisions of section 12 should always be taken into account when estimating the contract value. The responsibility for undertaking purchases up to 5,000 is that of the Budget Holder. Start Identify The Need (User Department) Reconsider Procurement Options via alternative Band Is total contract value > 5,000? Place Order Via Framework Does Framework require Further Competition? Is there a Framework / Contract in place? Run Further Competition Source Supplier(s) Refer to Procurement Procedure Document Prepare a brief or specification as appropriate to the type of procurement Returned to and opened by Authorised Officer Authorised Officer to evaluate quotes based on the pre-set award criteria Approved In Accordance With The Scheme of Delegated Authority Order Signed In Accordance With The Scheme of Delegated Authority 17

18 Appendix B: Intermediate Value Procurement (Quotations) - Between 5,000 and 25,000 (Band B) The provisions of section 12 should always be taken into account when estimating the contract value. The responsibility for undertaking purchases between 5,000 and 25,000 is that of the Budget Holder. Start Identify The Need (User Department) Reconsider Procurement Options via alternative Band Is total contract value between 5,000 and 25,000? Place Order Via Framework Does Framework require Further Competition? Is there a Framework / Contract in place? Run Further Competition Source Supplier(s) Refer to Procurement Procedure Document Prepare a brief or specification as appropriate to the type of procurement Invite at least three (3) written quotes Returned to and opened by Authorised Officer and Officer Independent of the Procurement Process Authorised Officer to evaluate quotes based on the pre-set award criteria Approved In Accordance With The Scheme of Delegated Authority Order or Contract Signed In Accordance With The Scheme of Delegated Authority 18

19 Appendix C: Medium Value Procurement (Tenders) - Between 25,000 and 181,302 (for Goods and Services) or less than 4,551,413 (for Works) (Band C) The provisions of section 12 should always be taken into account when estimating the contract value. The Procurement Services Team has responsibility for all purchases in this band working in conjunction with the technical officer(s) nominated by the relevant Head of Service or budget holder. Start Identify The Need (User Department) Reconsider Procurement Options via alternative Band Is total contract value between 25k and EU Thresholds? Place Order Via Framework Does Framework require Further Competition? Is there a Framework / Contract in place? Run Further Competition Source Supplier(s) Refer to Procurement Procedure Document Prepare a brief or specification as appropriate to the type of procurement Invite at least five (5) written quotes Returned to and opened by Procurement Officer and Officer Independent of the Procurement Process Authorised Officer and Procurement Officer to evaluate quotes based on the pre-set award criteria Approved In Accordance With The Scheme of Delegated Authority Order or Contract Signed In Accordance With The Scheme of Delegated Authority 19

20 Appendix D: Schedule 3 Services (Light Touch Regime) between 181,302 and 615,278 (Band D) The provisions of section 12 should always be taken into account when estimating the contract value. The Procurement Services Team has responsibility for all purchases in this band working in conjunction with the technical officer(s) nominated by the relevant Head of Service or budget holder. Start Identify The Need (User Department) Reconsider Procurement Options via alternative Band Is total contract value between 181,302 and 615,278? Place Order Via Framework Does Framework require Further Competition? Is there a Framework / Contract in place? Run Further Competition Source Supplier(s) Refer to Procurement Procedure Document Prepare a brief or specification as appropriate to the type of procurement Invite at least five (5) written quotes Returned to and opened by Procurement Manager and Officer Independent of the Procurement Process Authorised Officer and Procurement Officer to evaluate quotes based on the pre-set award criteria Approved In Accordance With The Scheme of Delegated Authority Order or Contract Signed In Accordance With The Scheme of Delegated Authority 20

21 Appendix E: High Value Procurements (Tenders) over 181,302 (for Goods and Services), or over 4,551,413 (for works) (Band E) The provisions of section 12 should always be taken into account when estimating the contract value. The Procurement Services Team has responsibility for all purchases in this band working in conjunction with the technical officer(s) nominated by the relevant Head of Service or budget holder. Start Identify The Need (User Department) Reconsider Procurement Options via alternative Band Is total contract value > EU Thresholds? Place Order Via Framework Does Framework require Further Competition? Is there a Framework / Contract in place? Run Further Competition Source Supplier(s) Refer to Procurement Procedure Document Prepare a brief or specification as appropriate to the type of procurement Invite at least five (5) written quotes Returned to and opened by Procurement Manager and Officer Independent of the Procurement Process Authorised Officer and Procurement Officer to evaluate quotes based on the pre-set award criteria Approved In Accordance With The Scheme of Delegated Authority Order or Contract Signed In Accordance With The Scheme of Delegated Authority 21

22 Document Control Responsible Officer Procurement Manager Approval / Review 23 February 2018 / vember 2019 Author Procurement Manager and Head of Corporate Services Version Version 2.1 Status Links to policies: Links to other procedures/forms: APPROVED Standing Orders The Scheme of Delegated Authority Procurement Procedure Document Date of Issue: February 2018 Next Review Date: vember 2019 Revision History Version Date Author Comments Number Date of revision Person who made change Description of why/what changes have been made. Example: 1.0 March 2016 Procurement Manager Approved 2.0 August 2016 Procurement Manager 2.1 January 2018 Procurement Manager Updated throughout to reflect best practice, current legislation and organisational requirements. Updated to reflect legislative change in relation to EU Procurement Thresholds 2.2 March 2018 Procurement Manager Correction of a paragraph reference Distribution and tification Name Title Date of Issue Version Name or Team Job title Date distributed 0.1 Buzz Governance Assistant April Buzz Procurement Team December Buzz Procurement Team February Buss Procurement Team March