5.4 Procurement Routes, Quotations & Thresholds

The current Procurement thresholds, routes to market and recommended timescales to procure goods/services, are set out in the table below.

These thresholds stipulate the minimum number of offers which must be obtained. Good practice is to invite more offers where any of the following factors apply:

• There are many potential suppliers.
• Some companies may decline from bidding
• New suppliers entering the marketplace.

The above timescales are indicative of normal procurement activity; however, each procurement is assessed according to its value, risk and complexity. Early engagement with the Procurement team is key to help with the successful delivery of any project

* Relevant Procurement Manager can provide dispensation to complete a simplified 3 quote process instead of the Quick Quote in specific circumstances.

** Head of Procurement can provide dispensation to complete a Quick Quote process instead of an Open Procedure.

The total value must be considered when deciding which process is to be applied, including:

• the actual value of goods or services,
• any additional costs for maintenance, lease finance and rental.
• for the full length of the contract including any potential extensions.

No attempt should be made to sub-divide the contract for the purpose of avoiding the correct procedure as this will breach the regulations concerning aggregation.

It is expected that value for money appraisal will be made in the execution of every purchase, and this will involve periodic checks by the Internal Auditors and the Procurement Department on 'routine' orders and transactions.

Evidence of a Value for Money appraisal will be required electronic quotations must be attached to any Pecos requisition, and these will be checked by Procurement Department staff prior to raising a purchase order.

These thresholds stipulate the minimum number of offers which must be obtained. Good practice is to invite more offers where any of the following factors apply:

• There are many potential suppliers.
• New suppliers entering the marketplace.

1. Written quotation(s) for purchases with a value between £0 and £1000 including VAT are permitted but a record of these quotations must be retained by Procurement. As a guide, a minimum of 1 written quotation should normally be sought and pertinent details recorded.

2. Written quotations for purchases with a value between £1001 and £10,000 including VAT are permitted but a record of these quotations must be retained by Procurement. As a guide, a minimum of 3 Written quotations should normally be sought and pertinent details recorded.

3. Procurements with a value between £10,001 and £25,000 including VAT should normally be conducted using the Scottish Government Public Contracts Scotland esourcing website. However, in certain circumstances email quotations may be permitted with prior approval from the relevant Procurement Manager.

4. For proposed procurements with an anticipated value of £25,001 and £50,000 including VAT the formal ‘open’ tendering process or mini-competition (if there is an existing Framework) should be used. The ‘open ‘tendering process may be dispensed with in favour of a restricted Quick Quote procedure but only where the Head of Procurement is satisfied that other compelling factors can justify the procurement process being used.

5. For proposed procurements with an anticipated value of £50,001 and £139,668 including VAT the formal tendering process should be used, e.g. Mini Competition through Public Contract Scotland if on Government Framework or full Open Tender Process

6. For proposed procurements with an anticipated value over £139,668 the Word Trade Organisation (WTO) formal tendering process should be used, either by Mini Competition through Public Contract Scotland if on Government Framework or full Open Tender Process. please refer to Tendering Procedures for more details.

Important: The Scottish Government requires that purchases exceeding £50,000 including VAT in value will be advertised widely. RoS have set a policy that advertising may be required for purchases with a value between £25,001 and £50,000. Any proposed purchases of any value must be discussed with the Procurement Department before any action is taken.

DIRECT AWARD (via Framework)

This route is used when the rules set out in the framework agreement allow us to engage directly with one supplier using a national framework either through Scottish Government or the Crown Commercial Service. Some agreements allow us to place an order directly with a supplier without the need for further competition.

We must still issue a complete brief in accordance with the Framework Buyers Guide and/or Terms and Conditions ensuring that the chosen supplier is made aware that the requirement is a call-off under the framework and forward to the first ranked contractor for consideration.

Procurement should set a time limit for the receipt of the direct award proposal which considers factors such as the complexity of the subject matter of the order and the time needed to submit a proposal.

On the basis set out above, RoS can award its service requirements by placing an order with the successful supplier in accordance with the following:

• states the requirements within the
• states the charges payable for the services requirements in accordance with the proposal submitted by the successful framework contractor; and
• incorporates the Standard Terms of Supply

MINI COMPETITION PROCEDURE (via Framework)

We should issue a complete invitation to tender ensuring that all contractors are made aware that the requirement is a call-off under the framework. The contractor should review the tender and submit their proposal along with pricing to the framework public body.

Framework public body’s obligations, the framework public bodies shall:

• invite tenders, from all contractors appointed to the framework by conducting a mini competition for its service requirements in accordance with the conditions herein, and
• set weightings for the award criteria in the mini competition / invitation to tender against the following technical criteria:

QUICK QUOTE

Quick Quote (QQ) often referred to as Invitation to Quote (ITQ) is an online quotation facility which allows purchasing authorities to obtain competitive quotes electronically for low value or less complex requirements. QQ is an efficient solution for low value procurement exercises, this will benefit contracting authorities and still provide a “one stop shop” for suppliers intending to supply the Scottish public sector.

Details of the QQ are created online and sent to a selected list of suppliers who are registered on the portal. They can then complete the required details and submit their quotation using the secure tender post-box. QQs are only distributed to the selected suppliers and are not made public on the website. A full electronic audit trail is maintained.

GOVERNMENT PROCUREMENT CARD (GPC)

In certain instances, low value (up to £1000 inc vat) and/or routine purchases may be made using the Government Procurement Card (GPC). If doubt exists about the validity of the proposed transaction contact the Procurement Department.

At the end of each accounting month a single purchase order must be raised by our GPC co-ordinator to cover all the card transactions for that month. (Cardholders will be given separate instructions on the administrative requirements for the GPC). Please also refer to the GPC Guide for additional detailed information on the use of the GPC.

When using the GPC, you must be fully compliant with all aspects of Sections 12 of the Procurement Manual.

PURCHASE ORDER PROCESS

When the requirement has gone through the appropriate procurement process and an acceptable offer has been received, a duly completed Official Purchase Order shall be issued to the supplier offering the most economically advantageous terms.

In order that RoS Terms and Conditions or applicable Framework Terms and Conditions of Purchase are met a phrase such as: 'RoS Terms and Conditions of Purchase apply' must appear on the face of the Official Purchase Order. All unsuccessful suppliers should be notified, and if requested in writing as to the reason their bid failed. Since confidentiality must be respected, details of the terms offered by the successful supplier should not be revealed to unsuccessful bidders. For audit purposes records should be kept by Procurement of correspondence arising out of each quotation exercise. (See 6. Register of Tender/Bid Documentation for further information).