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Tenders and Contracts

Procurement Terminology

Contract - an agreement between the buyer and seller that is enforceable by law.

Contract Procedure Rules - the procedure rules are determined by the estimated value of the Procurement. Officers of the Authority are required to obtain three competitive quotes for all Procurement valued between £5,000 and £24,999 and Procurement valued at £25,000 and above is published openly on Sell2Wales.

CPV Codes (Common Procurement Vocabulary Codes) - this is a range of codes used in the public sector which classifies the type of product or service within a standardised coding structure.  Contract notices published on sell2wales will include a CPV relevant to the Procurement undertaken.  Those suppliers registered as being able to provide that CPV receive e-mail notification of the opportunity being published.  CPV codes help to find tender opportunities that relate to the products or services you provide – quickly and easily.  Both Find a Tender Service (FTS) and Sell2Wales use CPV codes.

Electronic Tendering – All Tender and quotation exercises are undertaken through the Authority’s e-tendering facility for which the website address will be stated on all the adverts placed. Interested parties wishing to participate should access the website to view the instructions and submit their bid. The Authority does not accept hard copy tender bids. 

Expression of Interest – is a response by a potential supplier to a general public notice or tender opportunity.

Find a Tender Service (FTS) – the publication in which all public sector contracts valued over a certain value threshold must be published.

Framework Agreement – is an agreement with suppliers which sets out terms and conditions under which specific purchases (call-offs) can be made throughout the term of the agreement.  It may itself be a contract to which Public Contract Regulations apply and can be conducted on a single or multi supplier basis.

MEAT (Most Economically Advantageous Tender) – the criteria by which the most economically advantageous tender will be determined based on a combination of the price and quality. The percentage weightings may be different for each tender but will be clearly stated in the tender documentation, providing suppliers with the necessary information on how their bid will be evaluated.

Method Statement - this is the supplier’s opportunity to explain how they propose to carry out the contract. The information provided in the Method Statement is specific to each procurement undertaken and normally forms part of the quality evaluation.

National Procurement Service (NPS) – The NPS has been set up by Welsh Government to procure common and repetitive spend on behalf of the whole welsh public sector. Some of the Authority’s procurement spend is directly through NPS frameworks but these opportunities are also advertised on the Sell2Wales website by NPS.

Procurement – the acquisition of goods, works or services at the most economically advantageous method to meet the needs of the purchaser. Procurement is undertaken in accordance with pre-determined rules such as as our own internal Contract Procedure Rules and the Public Contract Regulations 2015 to ensure an open and transparent process. 

Procurement Procedures – All Procurement under the Public Contract Regulation threshold is governed by our own Contract Procedure Rules with Procurement estimated to exceed the thresholds being subject to the Public Contract Regulations 2015.  

Procurement Service – a team of specialist officers who oversee the majority of Procurement carried out within the Council and ensure openness and transparency in the Procurement process and compliance with all relevant procedures, rules and regulations. The Procurement Service also offers support to suppliers to help them tender for Council business.

Public Contract Regulations 2015 – are rules and regulations that Public Sector organisations must adhere to when procuring Goods, Services and Works over a certain value threshold.

Sell2Wales – is the National Procurement Website where all public sector contracts are advertised and in the case of PCC, we currently advertise all our procurement activity over the value of £25,000.  Registration on this site is free of charge.

SME’s (Small Medium Enterprises) – businesses ranging from sole traders to substantial, established firms – employing fewer than 250 employees.

Specification – this is a written statement that defines the Authority’s requirements.  The specification will vary according to the work, product or service being procured.  For a simple product the specification may be a brief description, while in the case of a complex requirement it will be a comprehensive document e.g. contracts requiring an element of design.

Sustainable Procurement – Assessing the social, environmental and economic impact of a requirement and using that information to influence the procurement process where appropriate.

Tender Advert or Contract Notice – this is the advert informing suppliers that an Invitation to Tender (ITT) is being published with details on how to obtain the necessary documentation.  Contract notices are published using the Sell2Wales facility and social media when appropriate.  

Tender Bid – is the submission of the completed Invitation to Tender documentation by a potential supplier providing information demonstrating the capability and eligibility of the supplier, detailed information about how they propose to meet the specifications of the contract and the pricing information.

Third Sector Organisations – are non profit making organisations which are value driven and which principally reinvest their surpluses to further social, environmental or cultural objectives.  It includes voluntary and community organisations, charities, social enterprises, supported businesses and co-operatives. 

Value Bands – the approach taken for each procurement is dictated by the estimated value of the requirement.  Values are estimated based on a combination of historical spend, budgets available and market research. 

Welsh Purchase Card – is a Visa badged charge card that is increasingly being used by many public sector bodies in Wales as their preferred payment method for many low value goods or services

 

ID: 564, revised 10/02/2021