Procurement process 5

Purchase of Equipment, Goods (Products) or Services - Estimated (reasonably foreseeable) Value of Equipment, Goods (Products) or Services above the EU threshold

Procurement of Works - Estimated (reasonably foreseeable) Value of Works above the EU threshold

Before proceeding please ensure that you have read and understood: How to calculate the value of your Purchase/Contract

Competitive Process with a pre-qualification stage (EU Restricted Procedure)

Use this process and check list where you are considering using the Restricted Procedure (which includes a pre-qualification process) for:

  • purchasing Equipment, Goods (Products) or Services where the value of the purchase/contract is between above the EU threshold; or 
  • procurement of Works where the value of the purchase/contract is above the EU threshold

    • Goods - £181,302 excluding VAT
    • Services - £181,302 excluding VAT
    • Works - £4,551,413 excluding VAT

Competitive Dialogue and Negotiated Procedures are also available for use for purchases/contracts where the value of the Equipment, Goods (Products) or Services or the Works is above the EU threshold but these processes may only be used exceptionally – the Procurement Division will advise on the most appropriate compliant process to use and on the details of the procedures and record keeping requirements should Competitive Dialogue or Negotiated Procedure be considered as an option.

Information and Instructions

Where the value of a purchase/contract or series of purchases or contracts is reasonably foreseen as being (estimated to be) in excess of the EU threshold it is a legal requirement/statutory obligation and a condition of the ERDF Funding Agreement/contract that the requirement is subjected to an EU compliant competitive contacted and the procurement strategy and competitive process will be agreed and implemented.

An EU compliant process takes a significant period of time to complete and there is no scope for negotiation or for giving (or being seen to give) an advantage to any tenderer. Contact with tenderers must be through a fully auditable process and the outcome is determined by the evaluation process based on the scores allocated during that process –negotiation is not allowed at any stage (and especially post tender) and only limited clarification is permitted during the tender process and post tender.

The key principles of an EU compliant tender are:

Advertising – through the Official Journal of the European Union;

Transparency – achieved by means of the advertisement (call for competition); ensuring that any correspondence during the tender process is recorded and a clear and concise evaluation process undertaken using criteria and sub-criteria that is correctly weighted and communicated;

Equality of Treatment – by means of an open, output specification that does not discriminate in favour of any supplier and the process set out above to achieve transparency with communications sent out to all tenderers at the same time and no “off line” communication;

Non-discrimination – on the grounds of geography or in terms of specification (see previous comment about open, output specifications.

There are two principle procedures available and used by the University to support an EU compliant competitive process:

Restricted – where tenderers are selected to be invited to tender following a pre-qualification process evaluated against published selection criteria (Procurement Process 5)

Open – where all tenderers that express an interest are invited to tender and all tenders must be scored (Procurement Process 6)

Other processes, such as Competitive Dialogue and Negotiated Procedure exist but are used only in exceptional circumstances.

Early consultation is required with the Procurement Division (Procurement Division Contacts) to determine the details of the process – noting that as a guide a typical Restricted Procedure competitive process can take more than six months to complete.

A Procurement Strategy must be formulated which will include:

  • Confirmation of the EU process to be used (if a pre-qualification process is not required use Procurement Process 6
  • Selection criteria 
  • Award criteria 
  • Evaluation procedures

A file note will be made setting out the Procurement Strategy and plan and the rationale supporting decisions made.

Proceed to Procurement Process Checklist 5