UK Shared Prosperity Funding

Annex C Third Party Grant Procurement Rules

Procurement Process

up to £5,000

A minimum of 1 written Quotation must be obtained and retained.

Best value for money must be obtained and reasonable care must be taken to obtain goods, works or services of adequate quality at a competitive price. A documented record to support the decision must be retained for audit purposes.

Requirement : All

£5,000 to £24,999

A minimum of 3 written Quotations must be sought from competitive sources. The quotes must bebased on the same specification and evaluated on a like for like basis. A documented record of the quotes sought, the evaluation process and the decision to award must be recorded.

Requirement : All

£25,000 and £74,999

A minimum of 3 written Quotations must be sought from competitive sources*. The quotes must be based on:

  • the same specification,
  • the same evaluation criteria and evaluated on a like for like basis. It is best practice to establish an evaluation panel.
  • the same closing date.

A documented record of the quotes sought, the evaluation process and the decision to award must be recorded for audit purposes.

**In the event that only one quotation is received, you must contact the Project Manager from Pembrokeshire County Council (PCC) to provide details and justification of the procurement process you have undertaken. The decision to proceed to purchase must be approved by PCC on a case by case basis. In circumstances where it is evident that more than one quotation could be sought, there may be a requirement to advertise via Sell2Wales

NB - spend thresholds of £75K and under are exclusive of VAT

Goods and Services - £75,000 and £213,477

A minimum of 4 tenders must be sought from competitive sources, with a minimum of 2 tenders to be received.

All those tendering must be provided with the same information: the same specification of requirements,

  • an outline of the evaluation criteria against which the contract will be awarded and
  • the same closing date for receipt of tenders, after which no submissions will be accepted.

The evaluation process you follow must be consistent with the original evaluation criteria outlined and an evaluation report produced detailing on what basis the successful tender was awarded. It is best practice to establish an evaluation panel to evaluate tenders.

In the event that only one tender is received, you must contact the Project Manager from Pembrokeshire County Council (PCC) to provide details and justification of the procurement process you have undertaken. The decision to proceed to purchase must be approved by PCC on a case by case basis. In circumstances where it is evident that more than one tender could be sought, there may be a requirement to advertise via Sell2Wales 

Works - £75,000 and £5,336,937

A minimum of 4 tenders must be sought from competitive sources, with a minimum of 3 tenders to be received.

All those tendering must be provided with the same information:

  • the same a specification of requirements,
  • an outline of the evaluation criteria against which the contract will be awarded and
  • the same closing date for receipt of tenders, after which no submissions will be accepted.

The evaluation process you follow must be consistent with the original evaluation criteria outlined and an evaluation report produced detailing on what basis the successful tender was awarded. It is best practice to establish an evaluation panel to evaluate tenders.

In the event that only one tender is received, you must contact the Project Manager from Pembrokeshire County Council (PCC) to provide details and justification of the procurement process you have undertaken. The decision to proceed to purchase must be approved by PCC on a case by case basis.  In circumstances where it is evident that more than one tender could be sought, there may be a requirement to advertise via Sell2Wales

For contracts in excess of £250k in value:

  • In selecting contractors for the tender list, it is recommended that the appropriate due diligence and financial checks are undertaken on these parties.

As a minimum, due diligence and financial checks must be undertaken on the preferred contractor following the evaluation and prior to contract award.

NB - spend thresholds for Goods / Services under £213,477 and works under £5,336,937 are exclusive of VAT 

Goods and Services - Above £213,477*

If a contract for Goods or Services is likely to exceed £213,477 the applicant must inform the project manager to determine whether the contract will be subject to the Public Contracts Regulations 2015

Works - Above £5,336,937*

If a contract for Works is likely to exceed £5,336,937 the applicant must inform the project manager to determine whether the contract will be subject to the Public Contracts Regulations 2015

*When calculating the estimated value of the contract in order to determine whether the full UK Public Contracts Regulations may apply, the contract value estimation (for these values only – not below) must be inclusive of VAT as of the 1 January 2022. This is as a result of the UK's independent membership of the GPA (Government Procurement Agreement)

Advertising via Sell2Wales

It is possible for you to advertise on the National Procurement website,Sell2Wales if you are in a situation where you have difficulty in identifying the minimum number of suppliers required and/or would like to vary or attract new suppliers to quote or tender.

Advertising via Sell2Wales is best practice, however you may feel that you are better able to identify potential suppliers who could provide the best overall offer.  

This facility is available to you free of charge, please visit the Sell2Wales website and contact the website helpline on 0800 222 9004 for further information.

Seeking Quotations/Tenders

For spend above £5,000 it is essential that the quotes/tenders are sought from appropriate suppliers for the goods, works or services required. In circumstances where it is evident that unsuitable quotes/tenders have been sought, there may be a requirement to advertise via Sell2Wales.

Other Funders

If a project involves any other or additional funding streams, these Third-Party Grant Procurement Rules must be followed as a minimum for the total estimated spend of the requirement.

Avoiding conflicts of interest

We recognise that it is possible that applicants / developers or persons connected with them (such as relatives, business partners or friends) may wish to tender for a contract being offered by the applicant / developer. This is acceptable, but applicants will need to ensure that the tendering process is undertaken in an open, transparent and fair manner, as outlined above, which does not give one person or company tendering any advantage over another, which arises from the process. Appropriate measures to prevent identify and remedy any conflicts of interest must be carried out.

If an applicant / developer or any person connected with them directly or indirectly, has a financial, economic, political, or other personal interest which might be perceived to compromise their impartiality and independence in the context of the procurement procedure:

 The applicant / developer, or any other person or party with an interest must PLACES that interest in writing to the Project Officer who will offer advice accordingly

  • Specifications and evaluation criteria must not be biased or tailored to favour one solution or any one party over another.

  • The person or party with an interest should take no part whatsoever in any of the tender evaluation procedures to ensure that the process is fair to all. It is acknowledged that the grant applicant may be required to provide the final approval.

  • Every stage of the procedure must be recorded formally.

  • If the contract would normally be subject to a single tender procedure, it is recommended that the sponsor should seek written quotes from at least two other suppliers (i.e. following the procedure set out above for contracts between £5,000 and £25,000)

The purpose of these guidelines is to ensure that there is fairness in the spending of public money and that the integrity of the applicant is not compromised.

Changes to the specification or contract

If any changes are required to the specification after seeking quotes/tenders which affects the original scope of the requirement, a new procurement exercise may need to be undertaken to ensure that best value for money has been achieved. This may occur where there are unforeseen additions to the original requirement, where tenders are received in excess of the available budget, where funding levels change etc. The grant applicant must inform the Project Officer who will offer advice accordingly.

  • Failure to observe the relevant procedures outlined above will be considered non-compliant and may lead to a withdrawal of the grant offer and potential claw-back of funding.
  • In cases where you are unable to satisfy the requirements of these procedures you must always inform the project manager.

If you have any queries as to how these procedures should be applied, you should contact the project manager for clarification and further guidance.

Do’s and Don’ts of Tendering

Do’s

  • Ensure that any potential conflicts of interest are PLACES at the earliest opportunity.
  • Comply with the appropriate rules
  • Ensure that the specification is precise and not in excess of the requirements.
  • Ensure that the Evaluation Criteria is directly relevant to the subject of the contract
  • Complete and retain full records for future reference and audit purposes
  • Ensure that quotes/tenders are evaluated on a ‘like for like’ basis.
  • Ensure that you treat suppliers in an open, transparent, and non-discriminatory manner.
  • Allow sufficient time for companies to quote
  • Ensure the value of the Goods/Works or Service is estimated accurately at the start of the process toapply the correct procurement process. The aggregated value must be used where applicable.

Don’ts

  • Don’t skew the specification to eliminate or to discriminate against suppliers i.e. limit the specification to a specific brand.
  • Don’t change the scope of the specification once distributed.
  • Don’t change the evaluation criteria during the process.
  • Don't give companies too short notice to quote.
  • Don't enter too much detail verbally with suppliers regarding specific questions. The same information must be provided to all suppliers to ensure the process is fair
  • Don't reveal prices to potential suppliers.
  • Don't breach confidentiality.
  • Don't open quotes/tenders in advance of the deadline.
  • Don't consider submissions received after the deadline.

 

ID: 9896, revised 03/04/2023
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