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Corporate Procurement
Service
Presentation Objectives
Improve understanding of:
Procurement Processes
Local Spend
Supplier Incentive Programme
Innovation Programme
Level of Commercial Activity
Contract Activity
Future Developments
Corporate Procurement Service
What Governs Us:
Council Constitution
EU Regulations
Social Value Act 2015
What that Means for Suppliers:
Fairness & transparency
Equal treatment
Below threshold constitution ensures specific numbers of local suppliers are invited to quote
Above threshold requirement for advertising nationally (Contracts Finder/OJEU)
Tendering Process
Open procedure
Any interested party can tender for the contract.
Restricted procedure
Interested parties will need to complete and pass a selection
questionnaire stage in order to then be invited to tender.
Procurement Thresholds – Goods and Services
Up to £5,000
Minimum of 1 written quote from South Tyneside businesses
£5,001 and £25,000
Minimum of 1 written quote from South Tyneside businesses and 2 written
quotes from Tyne & Wear suppliers
£25,001 and £ 181,302 1
Minimum of 2 written quotes from South Tyneside businesses and 2 written
quotes from other suppliers, or advertise opportunity on an internet portal and
Contract Finder
Over £181,302
OJEU advert 1 From January 2018 as the threshold for Goods and Services is set every two years
Procurement Thresholds - Works
Up to £181,302 (the lower OJEU threshold)
Minimum of 3 quotes/tenders from South Tyneside businesses (sourced via
Constructionline where possible)
£181,302 and £500,000
Minimum of 4 tenders from the Tyne & Wear Construction businesses, including
2 South Tyneside firms (sourced via Constructionline where possible)
£500,001 and £4,551,4131
Advertise (including OJEU where appropriate) and invite a minimum 4 written
tenders
Over £4,551,413
Official Journal of the European Union (OJEU) advert
1 From January 2018 as the threshold for Works is set every two years
Tender Requirements
What we ask you to provide:
Depends on procurement (must be relevant/appropriate)
Financial Information
Health and Safety Information
Information Governance
Technical and Professional Ability (past performance)
Insurance details
Tender response including Pricing Information and Quality criteria
submission (typically involving proposed method statements to deliver
contract)
Council’s Contract Register
Where to find contract information: Details of our existing contracts can be found at
https://www.nepo.org/suppliers/opportunities Select Contract Register,
then choose South Tyneside Council from the drop down list
You will be able to see all our existing contracts with further details
Procurement Summary
All Contracts let according to the Council’s constitution or the EU
Regulations
Register on the NEPO portal
Ensure you include all the categories you would like to bid for
Exposure to more than just South Tyneside Council!
Keep information up to date e.g. emails, categories
There is a link to our full contracts database on the Council’s
Internet site under business/selling to the Council. Link to Corporate
Procurement website:
https://www.southtyneside.gov.uk/article/33531/Selling-to-the-Council
Please feel free to call BTST Procurement on 0191 424 7008 or
424 7017
Supply South Tyneside – initiative to support
local businesses Changes to internal procedure rules – thresholds
Supplier engagement events
KPI’s – currently achieving over 50% local (in borough) spend 2017-18 and spend with
Tyne & Wear based companies is currently over 75%
0
10
20
30
40
50
60
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Supply South Tyneside – Value of Local Spend
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
£k
Over £700m local spend including 2017-18
Commercial Activity – £209M (total Oracle spend
17/18)
4%
15%
66%
15%
not known
Public sector
Private sector
3rd sector
Procurement Activity – Company Size
Micro
Small
Medium
Large
Commercial Activity 17/18 – By Area of Spend (£M)
NB. “Other” Consists of a number of Categories with annual spend below £1.5m
£0
£10
£20
£30
£40
£50
£60
Top Revenue Contracts 2017/18
Top 5 STC Capital Contracts 2017/18
Top 5 Housing Capital Contracts 2017/18
Large contracts for renewal 2018/19
New Large Contracts to be Procured 2018/19
Supplier Incentive Programme (SIP)
Improved cash flow for suppliers through early payment.
Increased process efficiencies through e-invoicing and same day invoice processing.
Dedicated invoice processing and query resolution.
Nominated account manager who will provide dedicated end-to-end service.
Small discount taken from invoice proportionate to how many days payment has been accelerated.
Participation in the programme is incorporated in all new contracts awarded from April 15.
178 Suppliers already signed up to programme.
More information can be found: https://www.southtyneside.gov.uk/article/33532/Supplier-Incentive-Programme
Future Developments
Social Value
• Performance management tool (Social Value Portal)
• National Delivery Group focusing on Themes, Outcomes
and Measures
• Putting a £ value on Social Value – ability to evaluate and
score – transparent process
• Regional delivery via NEPO to pilot on a project including
consultancy support
Future Developments (2)
Innovation Programme
Working with Council internal departments to identify areas of activity
either causing challenges or that may benefit from an outcome based
procurement, where it is felt the Market might be able to provide a
solution
• Propose to approach the Market in relation to a small number of such
activities – searching for innovative solutions
• Future Engagement Events Planned for 2018
― Innovation Programme
― Local Spend Gap Analysis
Finally
• Please visit our team of experts at the procurement
hub today if you have any queries/questions or
require further information