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A Responsible Officer may use Purchasing Schemes subject to the following conditions and the Council’s Purchasing Guide.
Responsible Officers must check in advance that:
CSO.15.1 - There are an increasing number of Purchasing Schemes which the Council may choose to participate in which assist in terms of purchasing efficiencies and value for money. An illustrative list is set out in CS0 15.3 and these types of schemes are discussed in further detail below.
CSO 15.2: Responsible Officers must check three key factors in advance, prior to using a Purchasing scheme:
CSO 15.2.1: Responsible Officers must check that the Council is legally entitled to use the Purchasing Scheme.
CSO 15.2.2: Responsible Officers need to check that the Purchasing Scheme covers the purchases to be made. All Purchasing Schemes should clearly specify what can be purchased under the scheme. This is to ensure that contractors participating in the scheme know what they are providing and purchasers are clear about the coverage and limitations of the scheme. It is therefore important to check that particular schemes do cover all your requirements.
CSO 15.2.3: Responsible Officers should ensure that the Purchasing Scheme has been established and is operated in accordance with the detailed EU Rules (where they apply). Purchasing Schemes can be a very efficient way of ensuring compliance with the EU Rules without having to undertake further separate EU procurement processes. The Council cannot discharge itself from its obligations to ensure compliance with the EU Rules.
In the context of framework arrangements it is important to ensure that types of potential purchases to be made by the Council are clearly identified in the original OJ notice, that the framework is established for the permissible four year period and that any mini competitions are operated in accordance with the provisions of the EU Rules
A “Purchasing Scheme” may include:
The term "Purchasing Scheme" is used to describe a range of different purchasing practices and the list is not intended to be exhaustive.
CSO 15.3.1: Contractor pre-qualification lists/select lists are often operated by councils to produce a list of contractors who are appropriately pre qualified to deliver the requirements of the Council. This streamlines purchasing as it means that a contractor's suitability does not have to be assessed every time a contract award is contemplated. Care does need to be taken to ensure that these arrangements do not fall into the trap of being caught by the EU Rules, because they amount to a repeated requirement for the same or similar provision (see comment at CSO 9). Pre qualification and select lists are not permitted for purchasing caught by the EU Rules.
CSO 15.3.2: Framework Arrangements: care needs to be taken to ensure that you understand what is intended by this term and whether or not the Purchasing Scheme is a framework arrangement subject to the EU Rules. The EU Rules define framework arrangements as a very specific type of arrangement. Where the EU Rules apply, frameworks are subject to controls including a limit of 4 years on the life of the framework and the conduct of mini competitions within a framework. However, the term "framework" is used more generally and so you need to be clear about what type of framework you are participating in and whether or not it complies with EU Rules.
CSO 15.3.3: Purchasing arrangements: set up by central purchasing bodies and commercial organisations (including arrangements established by the Government Procurement Service) are frequently forms of framework arrangements set up to comply with the EU Rules. However, you will need to check that you understand what format the purchasing arrangements comprise and whether or not EU Rules have been taken into account and, where appropriate, complied with in their award.
CSO 15.3.4: Consortium purchasing may refer to purchasing by groups of authorities together or as one authority on behalf of others, in which case, it is more likely that technically this amounts to a central purchasing arrangement.
CSO 15.3.5: Collaborative working arrangements may involve different levels of formality. Some collaborative working is merely a loose agreement between different organisations to work together in their purchasing. Collaborative working is also used to refer to arrangements, which may in practice, involve the pooling of resources. It is important to clarify which sort of collaborative working arrangement is proposed, so as to identify the rules, which may apply.
CSO 15.3.6: In some circumstances, a formal legal agency arrangement may apply in which case you need to ensure that you understand the legal terms which the Council will be required to contract on.
CSO 15.3.7: All of the above types of Purchasing Schemes may include some form of EU procurement, but there are also other forms of electronic Purchasing Schemes and methods including the use of the electronic purchasing cards, online listings and information sharing
Where a Purchasing Scheme is used then there shall be a whole or partial exemption from the obligations under these Contract Standing Orders in respect of the choice and conduct of procedures to the extent permitted and indicated in the Council’s Purchasing Guide.
Where a Purchasing Scheme is used then, as a main driver behind many of these Purchasing Schemes is to simplify procurement, some or all of the CSOs may not apply. In practice, the CSOs less likely to apply are those that relate to the tendering procedures, as many of these procedures will often be undertaken as part of the Purchasing Scheme process. The extent of the application of the CSOs and the exemptions from those standing orders will vary according to the type of scheme being used.
In general, the provisions of the following CSOs will continue to apply when a Purchasing Scheme is used:
CSO 7: Financial Thresholds and Procedures
CSO 7.1: Will apply where a Purchasing Scheme is used.
CSO 7.2: Will apply where a Purchasing Scheme is used.
CSO 7.3: Will apply where a Purchasing Scheme is used where the Responsible Officer is required to make a decision as to the choice of advertising media.
CSO 7.4: This CSO will apply only to the extent that it is relevant for a particular Purchasing Scheme. Quotes or written tenders may be procured by way of the Purchasing Scheme. In some circumstances, for example where a framework arrangement for supplies has been established, then the Council can purchase direct from contractors on the framework without the need for a further quote or tender process.
CSO 7.5: Will apply where a Purchasing Scheme is used.
CSO 8 Financial Thresholds and processes applying to approval and execution of contracts
CSO 8.1: For contracts over the relevant EU threshold, the choice of purchasing procedure – including choice of the Purchasing Scheme (and thus procedure) should still be authorised in writing in advance.
CSO 8.2, CSO 8.3 and CSO 8.4: Responsible Officers still need to ensure that if a Purchasing Scheme is used, then these requirements are complied with.
CSO 9: Calculating the contract value
These principles still apply in calculating the contract value of purchases to be made under Purchasing Schemes.
CSO 10: Principles underlying tendering processes and tender evaluation.
The extent to which this CSO will apply will depend upon the nature of the Purchasing Scheme. Some Purchasing Schemes will involve the undertaking of tender evaluation entirely by another organisation. In these circumstances, the Council still needs to be satisfied that the process to be undertaken by that other organisation meets its basic requirements but for example, less attention will need to be paid to ensuring sufficiency of time in planning and running the process as this has been done on behalf of the Council.
Basic EC Treaty principles of equal opportunities and equal treatment, openness and transparency as well as the need to ensure probity and that the outcomes deliver sustainability, efficiency and cost savings will still apply irrespective of the type of procurement process used, including the use of Purchasing Schemes.
CSO 11: Submission and opening tenders: For certain types of Purchasing Schemes, the Council will not need to issue Invitations to Tender and comply with the other requirements of this CSO as the process itself may be run by another organisation. Again, this will be dependant on the type of Purchasing Scheme used.
CSO 12: Evaluation of quotes and tenders: Irrespective of the Purchasing Scheme used, the Council should be satisfied that the criteria used to select contractors meets its requirements and ensure that best value is obtained. However, for certain types of Purchasing Schemes such as centrally organised framework arrangements and those undertaken by central purchasing bodies, the evaluation criteria and processes will be run by another organisation.
CSO 13: Waivers: These provisions still apply to the extent that they are relevant under Purchasing Schemes.
CSO 14: Extension to existing contracts: These provisions will continue to apply and any extensions to contracts awarded under Purchasing Schemes will also need to meet the requirements of those Purchasing Schemes and be carried out in accordance with those arrangements.
CSO 16: Review and change of these CSOs: These provisions apply. It should be noted that the list at CSO 15.3 of permissible Purchasing Schemes allows for a range of Purchasing Schemes to apply. These are not identified specifically but generically and so new Purchasing Schemes may well fall within the permitted type of Purchasing Scheme without a requirement for a change in the CSOs themselves.
Next page: Review and Changes to these Contract Standing Orders
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Procurement
E-mail: contracts@thanet.gov.uk
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