Introduction
The Council’s Community Strategy identifies sustainable development as a key aim by improving people’s quality of life, not only now but in the future.
Whilst the Council is keen to obtain the lowest selling price there are other considerations in demonstrating value for money. These considerations include impact on local regeneration, waste prevention, recycling, ethical trading, human rights etc
The Council is keen to work with suppliers/service providers who have similar values and who are keen to promote social, environmental and economic benefits in the way business is promoted.
If you have similar standards we look forward to hearing from you.
e-business
Dudley MBC believes that there are many advantages to be gained through the use of readily available technology. The implementation of ‘e-Procurement’ solutions is an important part of Dudley’s plans for the future and many areas of technology are already being exploited.
Procurement, Contract Management & Creditor Services has adopted an electronic tendering system, ‘InTend’, which is an easy to use web based system for sending and receiving tender documentation securely. Access to a PC with internet facility is all a business needs to take part in an ‘eTender’, this use of available technology results in efficiency and physical savings for all parties. Visit the Dudley MBC eTendering website.
Orders are distributed centrally and often by fax or email rather than higher cost methods such as hard copies in the post.
Payments to suppliers are made by a secure ‘BACS’ method rather than raising and posting costly cheques.
Dudley MBC promotes the use of Purchase Cards and Lodge Cards across the Authority to enable the payment for goods and services to be conducted electronically.
Benefits to suppliers include:
- Eliminating the need for paper invoices
- Prompt Payment – within 4 working days
- Improving Cash flow
- Reducing banking costs for those using a lending/overdraft facility
- Reducing administration costs
- Improving business opportunities (especially with other Local Authorities)
- Improving business relationships
- Can lead to preferred Supplier Status
For further information on Purchase Card and Lodge Card schemes, please contact Holly Southern (Purchase Card Development Officer) on 01384 814869 or holly.southern@dudley.gov.uk
This website is used to communicate with businesses, to advertise current and future tender opportunities and to advise of contracts administrated by Procurement, Contract Management & Creditor Services. Tender opportunities are also advertised through web portals such as Contracts Finder.
A new Corporate Finance System was implemented during 2006 that has helped us to continue to exploit current technology. Dudley MBC will also be utilising electronic marketplaces in the future and conducting further research into the benefits of electronic auctions.
The Tendering Process
Dudley Council spends approximately £130m on goods, services and works each year. Council Standing Orders strictly control the procedure to follow in awarding contracts valued above £40k per annum.
There are five types of Tender:
- Open tender process
- Restricted tender process following an open advertisement
- Tender process from a standing list
- Negotiation
- Competitive Dialogue
Detailed below is a brief explanation of the procedures involved in the above processes.
Open Tender Process
The majority of tenders issued will use this process, once the need to issue a tender has been identified, an advertisement will be placed usually in the local media: Express and Star newspaper, and other publications that circulate amongst the business' that may be interested in submitting a tender, some higher value contracts will also be advertised in the Official Journal of the European Union (OJEU). The advertisement will also be placed on the Council's tenders web page.
The advertisement will state where and how the tender may be obtained and what the closing date for receipt of tenders will be.
If a Tender is available via the InTend system then Tenderers will just need to register via the eTendering website. Once this is done they will receive a user name and password and will be able to access the Tender documents immediately. Hard Copy Documents, where specifically requested, will be dispatched on the same day as the request is received (if required the documents can be e-mailed to allow the tenderer more time to work on the tender).
Where a Tenderer has applied via the InTend system they will return the documents electronically by making an official submission as directed by the onscreen instructions. In the case of a hard copy Tender once the tenderer has completed the document it should be returned in the envelope provided, to arrive at the address on the envelope before the date and time stated on the envelope and should bear no marks that would identify the sender. Any tender received that has not followed these requirements will be rejected. This is not as it may appear petty bureaucracy, but as an Authority that is accountable for spending public money, strict guidelines have to be followed that will ensure probity in all business matters.
All Tenders are opened by officers of the Council, usually one member of staff from the Directorate issuing the tender and one member of staff from the Chief Executives Directorate. Hard copy tenders are copied, the copy retained by the Chief Executives Directorate and the originals passed to the originating Directorate for analysis.
All the tenders will be analysed and a decision will be made on which offer provides the Most Economically Advantageous Tender (MEAT) for the Council. In order to obtain the best offer subjects such as after sales service, sustainability, delivery and price will all be considered.
When a decision has been reached a brief report is prepared to the appropriate Director who will agree or disagree with the decision.
The successful Tenderer will be notified in writing that their tender has been accepted, a contract will then exist between the Tenderer and the Council. Unsuccessful applicants will also receive a letter thanking them for their interest in submitting a tender.
Restricted Tender Process Following an Open Advertisement
This process is similar to the open process, the difference being that businesses are selected to tender. This is done by placing an advert in the same publications as above, in this advert however companies are requested to express an interest in submitting a tender. The company will usually be issued with a Pre Qualification Questionnaire (PQQ). The questionnaire will request information about the company’s financial status, and any work that they may have carried out in the past of a similar nature. The PQQs' will be analysed and an assessment will be made to determine which of the interested companies can undertake the work. Tenders will then be issued to the selected companies and the Open Tender Process will proceed. Tenders may be issued via Intend or in hard copy.
Tender Process from a Standing List
This process is usually used for works contracts. A Directorate will maintain a list of companies that have been pre-approved to carry out work up to a certain value. It is normal for these lists to be rotated in order to give all businesses an equal opportunity of obtaining work, and for a certain number of companies to be selected to submit tenders. Companies will then be sent tenders for them to be completed. The process then follows the open procedure.
Negotiation
This procedure is not used very often and is mainly used where there is little or no competition for the goods, service or works contract that are to be issued. The negotiation will normally be conducted by at least one principal officer and the company concerned. The negotiations will be structured and formal documentation will be kept to record all the discussions.
Competitive Dialogue
This is for use in the award of complex contracts where there is a need to discuss all aspects of the proposed contract with potential Contractors. The process is the same as the Restricted Tender with the exception that once the PQQ has been returned and analysed those who have been shortlisted will be invited to discuss the project in more detail. Once this has taken place shortlists are re-evaluated and tender documents are issued in line with the Restricted and Open Procedures.
Ethical Procurement
Dudley MBC is committed to maintaining the highest levels of probity in all of its financial activities, including the conduct of procurement.
Public sector procurement is very process driven with each stage designed to ensure the fair and equal treatment of businesses and also that we may achieve value for money for the residents of Dudley.
Should anyone have any concerns regarding the conduct of council employees engaged in the procurement process they should notify the Council in line with the Confidential Reporting Policy below.
All reports will be treated in the strictest confidence.
