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Procurement Laws and Procedures - EU Procurement Thresholds updated January 2008

The County Council is bound by legislation and therefore has to abide by a variety of detailed procedures for purchases across the authority. As a Public Service Provider, Somerset County Council is subject to specific rules and regulations that govern the spending of public money. The Council must be seen to act in a fair and transparent manner when awarding contracts and in all circumstances obtain Best Value, in the way it procures Works, Supplies and Services.

The information below provides an insight into the rules and regulations that Somerset County Council have to acknowledge and adhere to, in all purchasing activities.

EU Directives

The County Council is required to advertise all contracts over the EC Thresholds (stated below) within the Official Journal of the European Union (OJEU).

These values refer to the estimated value over the life of the contract (not just the annual value). Therefore, if the contract is to be regarded as one of a series of contracts, the value of the whole series needs to be considered, not just the value of the individual contract.

The purpose of the EU Directives is to allow and ensure contracts are opened up to competition across the whole union, allowing all suppliers within the EU an equal opportunity to tender for business (we cannot specify English applications). The EU directives allow three ways of letting a contract, Open Procedure, Restricted Procedure or Negotiated Procedure.

Purchasers within the County Council must also uphold the principles of non-discrimination on the grounds of nationality, equal treatment of all suppliers, fair competition and transparency. As well as placing an OJEU advertisement requirements of the directive include publication of the criteria for selection and compliance with set time scales within the tendering process. Award notices will be placed within 45 days of the Council awarding a contract, stating either the successful supplier or a decision to abandon the process.

Somerset County Council Purchasing Regulations

The Standing Orders for Regulation of Contracts set out rules specific to the County Council, with respect to contracts for the supply of goods or services or for the execution of works. These Contract Standing Orders must be adhered to on every occasion the Council enters a contract. The purpose is to secure competition and regulate the manner in which tenders are invited.

Somerset County Council has its own set of thresholds (stated below). These have been increased (apart from Works Contracts) by Contract standing orders approved on 19 July 2006

All contracts where the value is that of the threshold or above must be tendered by advertisement. For contracts that fall below these threshold values the spirit of Contract Standing Orders will be followed and whenever practical at least two competitive quotations or tenders must be obtained.

Consideration will also be given to the duration of a contract, as Contract Standing Orders strongly recommend that all contracts are re-tendered at 3 year intervals, unless there is good reason not to.
The County Council's Contract Standing Orders also outline the required practice for the receiving and the opening of tenders.

Freedom of Information Act

The Freedom of Information Act 2000 comes into force for County and District Councils on 1 January 2005 and applies to all Public Sector Bodies. The aim of this Act is to make public authorities more open and accountable. The Act allows individuals to make a request for any information (both current and past) in any written format, and follows the principle that any topic held by any public body should be made available to the public.

This Act will undoubtedly have an effect on the County Councils arrangements with suppliers. Potentially any procurement arrangements with suppliers could be the subject of an information request (under this Act). There are however a number of exemptions to this Act including those based on Confidential Information and Commercial Interests. The exemption of confidential information relates to any information that is obtained by the County Council from any other individual (including another public authority) that would result in an actionable breach of confidence, if disclosed to the public. Likewise if the disclosure of information is likely to prejudice the commercial interests of any person (including the County Council) or constitute a trade secret, this will be exempt.

The government is encouraging Local Authorities to review their contracts and remove unnecessary confidentiality clauses, as in future in may not be possible for the Council to honour these commitments.

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Page updated 23 January 2008