Guidance to suppliers, providers and third sector

We work with organisations of all sizes to procure goods, services and works. It is essential that public money is protected by ensuring procurement activity is undertaken in a transparent, compliant and efficient manner.

This is supported by securing Best Value, assessing Whole Life Cost and complying with the Procurement Act 2023 and associated legislation and guidance.

Best value

The council has a statutory duty to secure Best Value under the Local Government Act 1999, which requires continuous improvement in the way functions are delivered, having regard to economy, efficiency and effectiveness.

Updated statutory guidance (2024) reinforces that councils must demonstrate strong governance, accountability and effective use of resources to deliver value for money and improved outcomes for residents.

In delivering Best Value, the council considers a broad range of factors rather than focusing solely on price.

These may include:

supplier capability and capacity
technical expertise and delivery model
innovation and use of technology
flexibility and adaptability
environmental sustainability and carbon reduction
social value and community benefits
continuous improvement and long-term performance.

This is not an exhaustive list, but an indication of the wider considerations used in assessing overall value.

Whole life cost

The council applies Whole Life Costing (WLC) to assess the total cost of a contract over its full lifecycle, supporting better long-term decision-making and value for money.

Whole Life Cost considerations may include:

initial capital and procurement costs
installation and implementation
energy and water consumption
operation and maintenance
repair and replacement
insurance and risk costs
end-of-life disposal.

The increasing focus on lifecycle value aligns with the Procurement Act 2023, which enables contracting authorities to assess broader value outcomes beyond upfront cost.

Rules affecting how supplies, goods and works are purchased

Public procurement in the UK is governed by the Procurement Act 2023, which replaced the previous EU-based regulations and came fully into force in February 2025.

This legislation establishes a simplified, flexible regime with a strong emphasis on transparency, competition and value.

London Tenders Portal Supplier Registration - a guide

Contracts above certain financial thresholds must follow full procurement procedures and be advertised on the Find a Tender Service (FTS).

Registering on the London Tenders Portal (Due North) is simple but, in order to provide as much help as possible, Tower Hamlets has made a guide.

Suppliers should ensure they properly cover the scope of the services they are able to offer (or they will not receive appropriate alerts). Suppliers should allow at least 24 hours for their registration to complete.

The contact details registered on the system will remain the same unless the supplier changes them, so if any named contact is on leave or departs the company, any alerts or other communications to that contact will be lost.

The London Tenders Portal is currently used by many local authorities. Once registered, a supplier will receive alerts on relevant opportunities from all and any of these LAs.

Contracts Finder

Contracts Finder is free for providers, government buyers and the public. The service comes from the government under its transparency commitment, and through it you can find:

live contract opportunities
closed tender documentation
contract awards and contract documents
a subscription to email alerts on new opportunities.

You can read more about Contracts Finder at how contract finder benefits you as a business.

Procurement thresholds (from 1 January 2026)

When a tender is above the Public Procurement Threshold, certain regulations kick in that dictate how the tender has to be managed. The following shows the Public Procurement threshold, these requirements represent good practice but are not compulsory.

Key thresholds (excluding VAT) include:

Goods and services (local authorities): approximately £173,100 (excl. VAT)
Works contracts: approximately £4,327,500 (excl. VAT)

These thresholds are reviewed every two years to ensure alignment with international obligations under the WTO Government Procurement Agreement.

Contracts below these thresholds are subject to lighter-touch requirements but must still demonstrate transparency and fairness.

Evaluation of tenders

All formal tenders are opened in accordance with strict governance procedures. Late submissions are not accepted unless there are exceptional and formally approved circumstances.

Tenders are evaluated by appropriately qualified officers to ensure compliance with the specification and procurement requirements. Clarifications may be sought during the evaluation process where necessary.

Under the Procurement Act 2023, contracts are awarded based on the Most Advantageous Tender (MAT) rather than the previous MEAT model. More information on the changes can be found on the assessing competitive tenders guidance page.

This approach allows greater flexibility and enables the council to consider a wider range of factors, including:

quality and technical merit
social value and community outcomes
environmental sustainability
innovation and long-term benefits

The shift to MAT reflects a broader definition of value and strengthens the council’s ability to deliver strategic priorities through procurement.

Ethical conduct and governance

Ethical conduct and robust governance arrangements are central to the Council’s operations and reputation.

The Supplier Code of Conduct forms part of the council’s integrated approach to ethical procurement and applies to all suppliers and their supply chains including private, voluntary and third sector organisations. Find out more about the Supplier Code of Conduct.

Compliance with this code is mandatory and forms part of the tender evaluation process.

Contract award

Unless otherwise specified, contracts are awarded based on the Most Advantageous Tender (MAT) using pre-defined evaluation criteria set out in the Invitation to Tender (ITT).

The council is not obliged to accept the lowest or any tender submitted.

Following evaluation:

successful bidders are notified formally in writing
the contract is only binding once signed by both parties
unsuccessful bidders are offered feedback and may request a debrief.

Transparency and fairness are embedded throughout the process in line with legislative requirements.

Intellectual property (IP)

The council’s standard position is that intellectual property created through the delivery of a contract will vest in the council, unless otherwise agreed and specified in the contract terms and conditions.

Download The Intellectual Property Statement.

Data protection and UK GDPR

All contracts must comply with UK GDPR and the Data Protection Act 2018, which together form the UK’s legal framework for data protection. Find out more in the legislation guidance.

These regulations apply to both:

Controllers – organisations that determine how and why personal data is processed
Processors – organisations that process data on behalf of a controller

Suppliers must:

ensure appropriate technical and organisational measures are in place
protect personal data throughout the contract lifecycle
implement compliant contractual arrangements (including data processing clauses)
support audits and due diligence processes.

Where contracts involve processing personal data, the council will take due diligence to ensure that suppliers meet all legal requirements and safeguard the rights of data subjects.

Further information

For more information please contact procurement@towerhamlets.gov.uk.