CouncilTenders & contracts - a guide to tendering
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Tower Hamlets Council works with companies of different sizes to buy goods and services. It is essential that we protect public money by purchasing in the most efficient way. Two key ways to ensure this happens are securing ‘Best Value’ and assessing ‘Whole Life Cost’.
There are a number of rules and regulations that affect the way the council buys. Information about these can be found on this page.
- Best Value
- Whole Life Cost
- Local Supplier
- SME - Small to Medium Enterprises
- Rules affecting how supplies, goods and works are purchased
- European Law
- How to tender for councils work
Best value
The council has a duty to secure best value (BV) as part of the Government’s agenda. This means the council is committed to spend public money in the most efficient way. All possible options will be considered rather than focus simply on the price. We consider supplier capability, technology, expertise, innovation, ability to reduce costs, flexibility, adaptability, sustainability and continuous improvement options. This should not be taken as a complete list rather an indication of what may be considered aspects of best value.
Whole life cost
We are moving towards whole life costing (WLC), a technique that will assess and give a financial cost for the life cycle of the goods or service. When evaluating categories during the tender and quotation process WLC will be considered. WLC consideration may include the initial capital cost, procurement cost, rent, energy and water cost, installation, maintenance, operation, repair, disposal, and insurance. This should not be taken as a complete list rather an indication of what may be included in the WLC equation.
The following guidelines provide information and advice on working with the Council:
Local supplier
Means those companies where their place of business is within London E1, E2, E3, and E14.
SME - small to medium enterprises
A small business meaning up to 50 employees and medium up to 250 employees.
Rules affecting how supplies, goods and works are purchased
Two main rules affect how we purchase goods and services. These are:
European law
- We must follow European law on public sector purchasing. Most contracts for services and supplies exceeding £139,893 (€206,000)must be advertised in the Official Journal for the European Union (OJEU) and the local and national press.
- Contracts for building or highway works exceeding £3,497,313 (€5,150,000)) must also be advertised in the OJEU and the local and national press.
How to tender for councils work
- Contracts Exceeding £50,000 to EU level
- Evaluation
- Contract award
- Quotation Process - £5,000 to £50,000
- Low Value Purchases - £0 to £5,000
- “Doing Business” with the Council - Flowchart
- Procurement contacts
- View the location map
Contracts exceeding £50,000 to EU level
Formal offers are invited for contracts with an estimated value in excess of £50,000. Six firms are usually invited, the current provider (subject to satisfactory performance), two local suppliers and the balance are selected in rotation, based on the type and value of work from the council’s accredited supplier list – managed by EXOR Management Services Limited. In addition these contracts will also be advertised under current tenders & contracts and if required www.supply2.gov.uk (you will be required to register before you can view adverts).
Tender documents are issued and contain full tender instructions including a bill of quantities or specification, contract conditions and a return envelope for the tender. A specific time and date is given by which offers must be received at the Council’s offices. All offers must be submitted in the envelope provided and bear no indication of who sent it on the envelope unless the tender is an electronic tender. The council is currently in the process of migrating to electronic tendering.
Evaluation
Formal offers are all opened at a specified time and late tenders are not accepted, unless a corporate director deems there to be a reasonable reason why the tender should be accepted. A record is kept of all offers received. Each tender is checked for accuracy and the appropriate technical officer or panel of officers evaluate it to ensure compliance with the specification. We may seek clarification of the respondent’s proposal during the evaluation process.
Ethical governance arrangements are essential to the operation and reputation of the Authority. A protocol has been developed as part of the council’s integrated approach to ethical governance and to ensure that external providers meet the Authority’s requirements in relation to ethical standards.
The protocol forms part of the council’s pre-tender evaluation procedure and compliance with the protocol is mandatory for all external providers seeking to contract with the council. The protocol applies to the private and voluntary sector, including grant funded organisations. Read our The Ethical Governance Protocol (Word 40k) to find out how to comply.
Contract award
We will unless stated otherwise, evaluate the tender bids on the basis of the Most Economically Advantageous Tender (MEAT). This is the optimum combination of costs and benefits assessed against pre-determined evaluation award criteria which will be detailed in the Invitation to Tender (ITT). Please note that the council is not bound to accept the lowest bid submitted or any of the bids submitted. After evaluating the bids, a recommendation is made to the appropriate level for acceptance; if the recommendation is accepted the contract will be awarded.
When your tender has been accepted you will be notified in writing but the council will not be bound until both parties have fully agreed and signed the council contract.
If you are not awarded the contract, you will be notified in writing. You have the option of asking for a debrief meeting, where your result will be compared to the council’s weighted criteria. If your tender is the result of a works or services contract you may obtain a copy of the result by writing to the head of procurement or appropriate director, however the council will not divulge what it considers is another company’s competitive advantage or intellectual property.
Quotation process - £5,000 to £50,000
If there is an appropriate government framework agreement or existing contract in place the purchase will be made utilising these agreements. Otherwise, we will refer to the EXOR supplier database, from which three registered or accredited suppliers (one a local SME) will be invited to respond to an invitation to quotation. The response considered ‘Best Value for Money’ will be selected.
Low value purchases - £0 to £5,000
If there is an appropriate government framework agreement or existing contract in place the purchase will be made utilising these agreements. Otherwise senior managers have the authority to appoint a registered supplier from the EXOR database and they are expected to give consideration to a local SME.
“Doing Business” with the council - flowchart
For a pictorial explanation of the purchasing process please refer to the doing business with the council flowchart
Procurement contacts details
For information or assistance relating to the purchase or tender of goods and services by the council please contact the procurement office.
Tel: 020 7364 4099 or 020 7364 4631 or 020 7364 4045
Fax: 020 7364 4973
e-mail: procurement@towerhamlets.gov.uk
4th Floor
Mulberry Place
5 Clove Crescent
London
United Kingdom
E14 2BG.
View the location map
Location: View the map (pdf 110k)
Opening hours: Monday to Friday, 9am-5pm.
Wheelchair access is available.
Transport: Docklands Light Rail (DLR) to Blackwall or East India Dock
Bus: D8, 277 & 115
Pids No: 828, 369, 829, 830
