Policy for the appointment of professional consultants

Notes

• These notes will not form part of the policy. They are intended to assist you in implementing the policy.
• The value thresholds and time limits in this policy are consistent with the values and limits in The Public Services Contracts Regulations, HEFCE and AHUA guidance and the JPPSG guidelines. They are therefore consistent with practice in the HE sector at large.
• This policy is consistent with the University's Purchasing Policy.
• A flow chart exemplifying Paragraphs 2 - 5.
• There is a useful comparison with another University's policy on this subject.

Tender process

The procedures for seeking sealed bid tenders are designed not only to obtain the best value for money, but to protect the Buyer and the University in the event of any subsequent dispute or legal action by a disgruntled tenderer. The overriding principle is that all bidders must be given an equal opportunity to win the business. To this end, all invitations to tender must be identical and must be posted to bidders at the same time.

The main elements of the invitation to tender (ITT) are:

Letter of Acknowledgement

For the bidder to return immediately, indicating that the ITT has been received and that the company wishes (or not) to submit a tender.

Tendering Instructions

Instructing the company on how to complete and submit the tender, and what information is required (e.g. copies of accounts, main customers, alternative proposals) in addition to the form of tender itself.

Conditions of Tender

Informing the company about such things as:

• ensuring the independence of each tender
• to whom enquiries should be addressed
• the preparation of the tender
• for how long the tender will remain valid for acceptance
• how the tender should be packaged, addressed and returned
• how many copies are required
• final delivery date and time (e.g. midday)
• the University's discretion to accept any part or all of any tender
• method of evaluation (e.g. short-listing, calls for presentations)
• list of award criteria

Form of Tender

A formal letter to be signed by the tenderer enclosing the tender submission and other required information. Whenever possible the tender submission should be pro forma, i.e. the ITT should include an outline format (showing prices, timetables/dates, etc) to be completed by the tenderer, rather than leaving the tenderer to devise his/her own format.

Contract Documents

Informing the tenderer of the kind of contract that will be signed, including any special terms and conditions in addition to (or instead of) the University’s standard Terms and Conditions of Purchase.

Receiving, Opening and Recording Tenders

Receipt of tenders should be recorded, but the package must be kept in a safe place, unopened, until the set date and time. Tenders should be opened immediately after the final date and time set for their receipt, by a team of two or more people. Membership of the team should be agreed, and the time and place set, well beforehand. Whenever possible the Purchasing Department should be represented. Action should be recorded, preferably on a standard Opening of Tenders Control Sheet designed by the Purchasing Department. The copy of the tender marked "First Copy" should be identified and signed on the front by at least two members of the team. All pages on the First Copy containing prices, or alterations made by the tenderer, should be initialled by at least two members of the team. All members of the team should sign the Tenders Control Sheet at the end of the opening exercise.

Any bid received after the due time should normally be regarded as invalid and returned to the sender unopened with a covering letter of explanation. The Control Sheet should record that this action has been taken. A late tender may be given further consideration only if there is clear evidence that the delay was due to unusual delivery problems and that the tenderer gained no advantage over other tenderers in terms of time or knowledge. In such circumstances full details should be given to the head of the Purchasing Department who will recommend whether or not the tender should be considered valid. The requirements above are the kind of controls which the Comptroller and Auditor General expects to find in place. It is not a question of honesty and trust, but a means of protecting those involved in the spending of public funds, and of providing assurances to the public.

Evaluating Tenders

The evaluation of tenders should be performed by a team of about 3 to 5 people most of whom should have reasonable knowledge of the matter covered in the tender. At least one member, preferably from the Purchasing Department, should have purchasing expertise.

The criteria to be applied in determining the award of contract should be stated in the tender documents and would normally be "the most economically advantageous tender taking account of all relevant features of the contract”.

The price should be calculated on the same basis for each tender (e.g. VAT should be excluded from all prices (or included in all), and a similar pricing structure should be used for comparing costs for delivery, installation, training, maintenance, and any other items specified in the invitation to tender). If any of the tenders are from foreign suppliers the Finance Office should be consulted to see if import duty will be payable. Where import duty is payable, the expected amount should be added to affected tenders.

There should be a consensus among the evaluation team as to which tenderer should be awarded the contract, or which tenderers should be short-listed, taking full account of the objective results of the evaluation.

When an outright winner has been agreed, a runner-up should also be selected in case problems arise in any final post-tender negotiations or in signing a contract with the successful tenderer.

Notifying Tenderers of Results

When a decision has been reached all tenderers should be notified in writing as to the status of their tender. Unsuccessful tenderers should also be invited to telephone a named individual on the tender evaluation team to request feedback as to why their bid failed (price, delivery, technical merit, etc.). Confidentiality must be maintained for each of the respective bidders.