Supplier Guide - The Tender Process

Procurement is the process of acquiring goods, works and services, covering both acquisitions
from third parties and from in-house providers. The process spans the whole life-cycle from
identifcation of need, through to end of a services contract or the end of the useful life of an
asset.
ECC Procurement Processes
Purchase Card (PCard)
For purchases falling below 2000 in total value we will normally use our organisations approved credit card
as this is more cost-effective and efficient for such low value one-off purchases.
Quotations
For low value or low risk contracts below 50,000 in total value, we typically go out to uote to at least three
suppliers using our database of registered suppliers on the !"" #upplier $ortal. %ur policy aims to ensure
that at least one of these suppliers has its headuarters in !sse&. 'ny supplier can register for free on the
#upplier $ortal at http())ecc.supplier.ariba.com and there is a Fit to Supply Checklist to help suppliers
prepare to bid for work with !"" on our *#upplying the "ouncil+ web page.
http())www.esse&.gov.uk),usiness-$artners)#upplying-"ouncil)$ages)!sse&-$rocurement--uidance-
.ocuments.asp&
Sourcin suppliers
%ur e#ourcing tool is the usual method used to conduct tender processes from pre-ualification and tender
stage through to contract award and implementation. 'n /nvitation to 0ender 1/002 is a formal reuest for
suppliers to provide written offers to contract goods or services at a specified cost or rate and uality.
E! Procedure and "#E! Thresholds
$ublic #ector procurement activity is governed by !uropean $rocurement .irectives where certain types of
goods and services reuire specified tender procedures and time limits which are prescribed by law. ' guide
to the !uropean 3nion 1!32 procurement rules can be found on our *#upplying the "ouncil+ webpage.
http())www.esse&.gov.uk),usiness-$artners)#upplying-"ouncil)$ages)!sse&-$rocurement--uidance-
.ocuments.asp&
0he !3 procedure is reuired when the total value of a relevant contract e&ceeds the thresholds set by the
!3. /t reuires the contract to be advertised in the %fficial 4ournal of the !uropean 3nion 1%4!32. 0hese
contract values are updated every two years. #ee the guidance document on our *#upplying the "ouncil+
web page for the current values.
ECC Tender Contract Procedure $ules
!"" typically follow the procedures detailed below which are based on the level of risk and total value of a
contract.
$isk %alue $ane Typical Procedure
5%6 7/#8 92000 -overnment $urchase "ard 1$"ard2
5%6 7/#8 2000 - 50,000 1't least20hree :uotes
;!./3; 7/#8 50,00< = %4!3 threshold ,asic 0ender with advertisement
>/-> 7/#8 ?%4!3 threshold - <0 million !3 $rocedure
@!7A >/-> 7/#8 ?<0 million !3 $rocedure
E&aluation Criteria
!valuation criteria are standards that are used to assess how well a supplier bid meets !""+s reuirements
during a procurement process. 'll evaluation criteria must be linked to the subBect matter of the contract.
0here are two types of evaluation criteria which are called *#election+ criteria and *'ward+ criteria(
o #election criteria focus on a supplier past e&perience and track record only in order to filter out the
suitably ualified and e&perienced suppliers capable of providing the 'uthorities reuirement.
o 'ward criteria relate to the specific contract and are forward looking. "ontracts are normally
awarded on the basis of the Cmost economically advantageous tenderD which means, the tender offering
best overall value for money both in terms of price and uality.
0hese are two distinct stages which are normally evaluated separately. For e&ample, if the $:: reuests
suppliers evidence a 7isk ;anagement $olicy as a minimum standard for selection, the award criteria for
the uality evaluation may reuest suppliers demonstrate how they will apply their risk management policy
to identify and manage the risks associated with the contract.
'ssessment of supplier responses to the evaluation criteria are made solely on the information that
suppliers provide in either their pre-ualification uestionnaire 1$::2 or 6ritten ,ids in response to an /00.
Eo decisions should be made on previous e&perience or knowledge of working with a supplier in the past.
'll uestions should have a sound purpose, help make an assessment of supplier suitability, and be
underpinned by a defined method for scoring it which can be pre-published to the supplier.
Selectin Suppliers
/n order to select suppliers for tender stage we use a $re-:ualification :uestionnaire 1$::2 which contains
*#election+ criteria covering supplier legal and organisational status, economic and financial standing and
elements of technical and professional ability. 'dditional selection criteria may be added to cover other
aspects relevant to the contract reuirements, such as 7isk ;anagement, >ealth and #afety, :uality
'ssurance, !nvironmental ;anagement, .iversity and !uality, $rofessional "apacity.
0he $:: is usually distributed through our e#ourcing tool to suppliers who e&press an interest in response
to the advertisement of the contract 1known as the "ontract Eotice2. 0here is a Supplier Guide to the PQQ
which can be found atF http())www.esse&.gov.uk),usiness-$artners)#upplying-"ouncil)$ages)!sse&-
$rocurement--uidance-.ocuments.asp& for more information about our minimum reuirements and what
key uestions we ask at this stage.
/f you are successful at $:: stage you will be short-listed for tender stage and will receive an /00 for the
goods or services.
Contract '(ard
0he C/nvitation to 0enderD 1/002 sets out the methodology that !"" will employ in evaluating a suppliers
price, written bid submissions and any presentations in response to the specification and award criteria.
Following this evaluation a decision will be made on which supplier will be awarded a contract.
$rice and :uality are split into two high level categories to be evaluated separately. !ach will be given a
ma&imum percentage score, which is weighted according to the relative importance placed upon it.
't the end of the evaluation process, the two percentages will be brought together in the Full !valuation
;odel to result in an overall percentage score for each supplier.
Price &ersus Quality
'll procurement activity now has a heavy focus on savings and efficiencies. /t is common for procurers to
start with a G0H $rice, and I0H :uality split as a basis but this can be changed to any combination
depending on the reuirements and obBectives of the particular procurement.
E&aluatin Price
0he evaluation of charges will be based on the supplier+s response to the reuirements of a $ricing
#chedule designed for the specific contract using appropriate measures and units based on industry norms.
$rice should be based on the total cost of the goods or service over the duration of the entire contract, not
Bust purchase price. ,uyers consider delivery costs, any maintenance and training costs, energy
consumption, down time and disposal costs among others, to form a more holistic picture of what it will
actually cost to own, or run the goods or services over the life of the contract.
Price Scorin )echanism
0ypically a certain percentage or number of points are attributed to prices and the supplier bids are scored
against pre-set criteria, thus allowing tenders to be ranked in line with the percentages or points attributed
to them. 1#ee e&ample below2.
)a* percentae score +,-
Tendered prices. / - scored
#upplier ' J0,000.00 I0.0H
#upplier , J5,000.00 KK.KH
#upplier " L0,000.00 2G.JH
#upplier . L5,000.00 20.0H
#upplier ! M0,000.00 <K.KH
#upplier F M5,000.00 G.JH
#upplier - <00,000.00 0.0H

5owest tendered price J0,000.00
>ighest tendered price 1or benchmark price2 <00,000.00
E&aluatin Quality 0 1ritten 2ids
'ward criteria relating to uality depend upon the nature of the procurement. #ome e&amples includeF
technical merit of the goods or services,
ability to meet specification
compliance with contractual terms and conditions,
innovative technology,
proBect plans and methodologies,
wider social, economic and environmental benefits offered to the community,
staffing arrangements, training and development,
speed of delivery, maintenance and support offered.
Quality Scorin )echanism
#upplier responses to these award criteria will be assessed using a pre-published scoring mechanism
within the tender 1see general e&ample below2. 0his is a set of criteria which suppliers must meet in their
responses to achieve certain scores. 0he scores for each uestion are converted into ma&imum percentage
scores for each evaluation criteria in the Full !valuation ;odel.
$ane o3 Score 4escription
0
Eon-compliant, fails to satisfy specified reuirements.
<
;arginally adeuate, does not satisfy all reuirements, successful completion
uncertain, concerns regarding competence or capacity and ability to successfully
fulfil the contract reuirements.
2
'cceptable and mainly compliant, generally meets the reuirements e&cept for minor
aspects and shortcomings, successful completion likely.
K
#atisfies all reuirements, average, acceptable and compliantF successful completion
highly probable, no shortcomings apparent.
I
@ery good, negligible risk of failureF satisfies the selection criteria in all respects.
>ighly competent and above average.
5
#uperior, beyond e&pectationsF offers an e&cellent level of performance which
e&ceeds notional reuirementsF represents industry best practice.
E&aluatin Quality 0 Supplier Presentations
$resentations can be an important part of the uality evaluation, particularly for services intended for
children and young people, or vulnerable adults where it can be essential to meet with the service provider
for a number of reasons. 6here an /00 states a presentation will take place it is then mandatory for all
suppliers who are tendering to present, no matter what they have scored on price or uality in their written
bid.

E*ample E&aluation )odel
Price E&aluation
#upplier ' = 15owest 0ender $rice ) #upplier ' $rice2 N 0otal $rice $oints
"ranisation Supplier ' Supplier 2 Supplier C Supplier 4
$rice of this tender <<<,J<2.<J <2<,<K<.M0 <<J,IJ5.5K <50,0L5.00
$rice of lowest tender <<<,J<2.<J <<<,J<2.<J <<<,J<2.<J <<<,J<2.<J
$oints available I0 I0 I0 I0
Points a(arded +, 5678 59 :879
Supplier ' Quality E&aluation
Quality Element
Quality
1eihtin
Points
a&aila;le
Points
scored
1eihted
Score
'bility to meet specification K0H 50 20 <5H
.elivery)0imescales <5H 50 I0 <2H
#taffing arrangements)training <5H 50 <0 KH
Points a(arded 6,- <=, >= 5,-
"&erall Tender E&aluation
"ranisation Supplier ' Supplier 2 Supplier C Supplier 4
$rice +, 5678 59 :879
'bility to meet specification <5H <L.0 20.0 2L.0
.elivery)0imescales <2H <0.5 <I.0 <I.5
#taffing arrangements)training KH <<.0 <2.0 L.0
Points a(arded >,- >67+- 9+- 9,75-
#upplier ' 1J0H2 lost out to #upplier " who scored the highest percentage 1LIH2 overall in their total
evaluation score, despite the fact that #upplier ' was the cheapest and scored full marks for their $rice
evaluation.
0his is an e&ample of where best value, does not always mean cheapest tender. 6e take into account
numerous aspects of a contract as well as cost, including social, economic and environmental benefits that
suppliers can offer through the contract.
Esse* P:P
0his refers to electronic methods we use to purchase goods, works and services in order to ma&imise the
benefits to both !"" and suppliers through efficient processes and prompt payment.
0ip( - 0here are some actions you may take to support e$rocurement and ensure your organisation can
meet with !sse& "ounty "ouncil+s reuirements.
'ction 4escription
!nsure you have reliable access to the internet, and a
web browser.
6e reuire as a minimum that organisations are
able to accept e-mail orders to a single e-mail
account, have a web browser facility capable of
accessing /.e'(marketplace and can submit
electronic invoices via /.e'(marketplace.
#et up a single email account for your organisation if
you do not have one.
6e are unable to accept multiple e-mail
addresses for different depots within) across an
organisation.
Familiarise yourself with /.e'(marketplace on our
website - /.e'(marketplace
Ohttp())www.esse&cc.gov.uk = #upplying !sse& "ounty
"ouncil linkP
;arketplace enables the full purchasing process
to be carried out online, from order creation and
authorisation to goods receipting and invoice
matching. ;arketplace is also able to support
electronic catalogues, purchase cards, reuests
for uotes.
'ccept payments by ,'"s, ">'$s !lectronic transfer of funds into your business
account.
'ccept procurement cards 1$"ard2 'ccepting payment from our approved
organisation credit cards.
0rade electronically 'ccepting orders online, website trading.
Findin "pportunities
0his section is designed to help you find out how and where we advertise contract opportunities in !sse&. /t
covers the various media and #upplier $ortals we may use to advertise contract opportunities(
?ocal
!sse& "ounty "ouncil+s *#upplying the "ouncil+ 6ebpage - 0his is where opportunities to supply the "ouncil
are advertised 1mainly %4!3 tenders2.
!sse& 5ibrary ,usiness /nformation #ervice - offers a range of business information solutions to support
intending, new and established businesses in the county.
,uild !sse& = aimed at developing the construction supply chain within the county by helping small and
medium siQed businesses in the construction industry to develop.
Federation of #mall ,usinesses 1!sse& 7egion2 = is a membership organisation offering free legal, ta& and
financial advice and support 2I hours a day.
,usiness 5ink !ast = provides a diagnostic service that will identify and signpost you to solutions by
providing free one-to-one advice with an e&perienced business advisor.
%lympic and beyond 20<2
"ompete For = free service that enables businesses to compete for contract opportunities linked to the
5ondon 20<2 -ames and other maBor public and private sector buying organisations, such as 0ransport for
5ondon 10f52, "rossrail and the ;etropolitan $olice
@ational
#upply2.gov.uk = 'dvertises #ub-%4!3 until K<
st
;arch 20<<. 6ill then be replaced by *"ontracts Finder+
0enders !lectronic .aily = 'dvertises %4!3
,uying #olutions - 0he national procurement partner for 38 public services.
%ffice of -overnment "ommerce 1%-"2 = provides tendering, collaborative and subcontracting
opportunities.
"entral ,uying "onsortium = represents most of the maBor authorities from the ;idlands to the #outh !ast,
outside 5ondon.
Procurement #aron
'6'7. "7/0!7/' 0he obBective and transparent means by which buyers assess
tender responses to select a winner = can use either 1a2 lowest
tender price only or 1b2 most economically advantageous tender
criteria.
,!#0 @'53! 0his is planning, delivering and improving goods, works and
services to ensure they are delivered in an efficient, effective and
economical manner, appropriate to the needs of our "ustomers.
"%;$!0/0/@! ./'5%-3! $7%"!.37! ' three stage procurement process used in the award of particularly
comple& proBects where an open or restricted procedure is not
possible.
"%E07'"0/E- '30>%7/0A 0he #tate, regional or local authorities and bodies governed by
public law.
"$@ "%.!# "ommon $rocurement @ocabulary !3 classification scheme used
to standardise the classification of goods and services for the
benefit of purchasers and suppliers.
!@'53'0/%E "7/0!7/' 0he basis upon which various decisions will be taken, either at
selection or award stage.
!3 !uropean 3nion
!"%E%;/" %$!7'0%7 0he generic !uropean term applied to describe suppliers, service
providers and contractors.
!!' 'greement 'n agreement between the !3 and Eorway, /celand and
5iechtenstein.
!!' "ountries Eorway, /celand, 5iechtenstein in addition to all !3 ;ember #tates.
!N$7!##/%E %F /E0!7!#0 'n invitation to the market to apply for a place on the tender list.
3sually reuires providing specified information to the public body
regarding a firm+s financial, economic and technical capacity.
!3 "ountries 2J ;ember #tates = 'ustria, ,elgium, ,ulgaria, "yprus, "Qech
7epublic, .enmark, !stonia, Finland, France, -ermany, -reece,
>ungary, /reland, /taly, 5atvia, 5ithuania, 5u&embourg, ;alta,
Eetherlands, $oland, $ortugal, 7omania, #lovakia, #lovenia, #pain,
#weden and the 38.
F%/ Freedom of /nformation = as per F%/ 'ct 2000.
F7';!6%78 '-7!!;!E0 'n agreement between one or more public bodies and one or more
suppliers, the purpose of which is to enable contracts to be awarded
over a period of time.
-$' -overnment $rocurement 'greement #igned by some signatories of the 6orld 0rade %rganisation
'greement
-$' "ountries !!')!3 countries plus "anada, >ong 8ong, /srael, 4apan, #outh
8orea, Eetherlands with respect to 'ruba, #ingapore, #witQerland
and 0he 3nited #tates.
/00 /nvitation to 0ender or /nstructions to 0ender.
;/E/;3; #0'E.'7. 0he stated level which must be achieved for specific selection
criteria or award criteria 1e.g. #election criteria = evidence of
turnoverF minimum level <00,0002.
E!-%0/'0!. $7%"!.37! 'n advertised procedure which involves negotiating with a number
of firms 1usually K or more2.
%4!3 %fficial 4ournal of the !uropean 3nion, which is a website that
provides a gateway for #uppliers who wish to search for new
business opportunities sent directly from the %4!3 and also lower
value opportunities from a wide range of other sources throughout
the 38 and /reland.
%$!E $7%"!.37! 0his is a commonly used purchasing procedure whereby all those
companies who apply for tender documents will be allowed to
tender.
$/E $rior /nformation Eotice = the means by which contracting
authorities may indicate their purchases over the following <2
months at !uropean level. #ometimes used to invite parties to a
technical dialogue.
$3,5/" ,%.A %7 $3,5/" #!"0%7 ' contracting authority or a contracting entity
$7!:3'5/F/"'0/%E 0he mechanism for determining the suitability of applicants for
inclusion on tender lists. 'lso known as selection or eligibility or
suitability.
$7/"/E- #">!.35! ' form which is sent out with a 7euest for :uote or /nvitation to
0ender which asks the supplier to input pricing information against
pre-set goods, works or services.
$:: 1$7! :3'5/F/"'0/%E
:3!#0/%EE'/7!2
' uestionnaire document freuently used to reuest information on
financial and technical capacity from interested parties as part of the
7estricted, "ompetitive .ialogue and Eegotiated $rocedures.
7!#07/"0!. $7%"!.37! 0his is a commonly used purchasing procedure which provides for
the most suitable applicants to be placed on a tender list.
3nder this procedure normally at least 5 firms are invited to tender.
7F$ 7euest for $rice or 7euest for $roposals.
7F0 7euest for 0ender.
#!5!"0/%E "7/0!7/' 0he mechanism for determining the suitability of applicants for
inclusion on tender lists. #ee also preualification.
#!7@/"! "%E07'"0 ' contract for the provision of services as defined in the !3
.irectives.
#!7@/"! "%E"!##/%E ' contract of the same type as a service contract e&cept for the fact
that the consideration for the provision of the services consists in
the right to e&ploit the service or in this right together with payment.
#!7@/"! $7%@/.!7 'n individual or company which provides services.
#;! #mall and ;edium #iQe !nterprise.
#$!"/F/"'0/%E ' description of the product or service reuired in terms of functional
and)or technical performance.
#0'E.'7. 0!7;# 'E. "%E./0/%E# 0he terms and conditions we send out with all $urchase %rders and
7euest for :uotes which we e&pect suppliers to accept and
comply with during the contract.
#0'E.#0/55 $!7/%. 'lso known as the 'lcatel $eriod. 0he minimum period between the
notification date of unsuccessful tenderers and the date of contract
award.
#3$$5A "%E07'"0 ' contract for the purchase, lease, rental or hire purchase of
products 1may also include siting and installation services2.
0!E.!7 0ender refers to a formal written submission from the supplier or
service provider detailing their offer.
0!E.!7!7 ' party submitting a tender to a public body.
0%0'5 @'53! 0his is the aggregated value of a purchased good, works or service
over the duration of a contract. For e&ample a particular service
costs 50,000 per year to deliver, but the contract for the service is
four years. 0he 0otal @alue is therefore 200,000 and is therefore
subBect to the %4!3 procedure when procuring that service.
03$! 0enders which include the potential for staff to be affected must take
due regard of the 0ransfer of 3ndertaking of $rotective !mployment
103$!2 regulations, including formal consultation with staff and their
trade unions.
@'7/'E0 ,/. ' contract notice will tell the supplier whether or not we are willing to
accept @ariant ,ids, which means if a supplier has a more
innovative solution to meet our needs than we have considered,
they have a chance to propose and price it as well as providing a
"ompliant ,id.
6!/->0/E-# 0he mathematical emphasis placed on various criteria in the
selection or award stage of a tender procedure.