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The tender process
Link must follow a procurement procedure when a tender is above the EU threshold. This is to ensure all tenders are treated fairly and the best value is obtained.
These procedures are generally:
- The Open Procedure, when anybody who shows an expression of interest must be invited to tender. There is no pre-qualification process with an Open Procedure.
- The Restricted Procedure, when suppliers must express an interest in the tender and complete a Pre-qualification Questionnaire (PQQ) within a specified timescale. Once all PQQs have been submitted and evaluated a shortlist of tenderers is compiled and the successful suppliers are invited to tender.
Pre-qualification Questionnaire (PQQ)
The purpose of a PQQ is to pre-qualify tenderers for commercial, technical and qualitative competence and to assist in developing the specification of requirements and mutually acceptable outline terms and conditions of contract.
The PQQ requests information on topics such as:
- Finance
- Health & Safety
- Equal Opportunities
- Environmental policies
- Quality assurance
Pre-qualification reviews must be undertaken prior to the issue of invitations to tender (ITT).
The primary aim of the PQQ process is to establish a benchmark for quality which if equalled or surpassed allows potential suppliers/contractors to proceed to the ITT stage, and determines their capability to be awarded the contract, either on price or where appropriate on a quality and price basis.
Results of the PQQ help us refine the requirements specification and establish a shortlist of suppliers for formal tendering.
What is an Invitation to Tender (ITT)?
Once the PQQs have been evaluated a formal invitation to tender (ITT) is sent out to suppliers that have been assessed and approved under pre-qualification and meet Link Group's stated specification/requirements. The ITT invites suppliers to bid in competition for goods/services.
A successful ITT process demands a fully developed specification and set of Terms and Conditions and must be the result of pre-qualifying testing.
The tender documents issued to successful applicants will include the following documents:
- Letter of invitation
- Instructions to tenderers - guidance on how to complete the tender documentation
- Specification - description of goods or services required
- A schedule of rates/pricing document - supplier completes document with rates/prices
- Terms and conditions - agreement between Link and supplier/contractor
- A pre-addressed and sealable envelope for returning the tender by the due time and date - states the tender return date and time
Each tender process will typically ask the supplier to provide information such as details on:
- Finance
- Equal opportunities
- Environment
- Health & Safety
- Experience and technical ability
To make sure a bid is considered, tenderers must:
- Provide all the information requested
- Answer all questions accurately
- Provide a response in the requested format
- Return the documentation by the specified closing date to the stated address
Fair competition
The following principles are applied to ensure that fair competition is fostered:
- All tenderers receive the same information
- A common tender return date is set
- All tenders are treated equally
- The granting of a request for an extension of the tender return date will be communicated to all tenderers
- Strict confidentiality is maintained at all times about the contents of tenders
Tender evaluation
Tenders are evaluated in accordance with the agreed evaluation criteria. Evaluation will be based on securing best value, a tender's ability to deliver or the most economically advantageous offer.
The balance between quality and price will be determined by the service or goods to be procured. In most cases, Link contracts will be awarded on the basis of the most economically advantageous offer received.
In procurement terms, Best Value means:
- Choosing supplier that offers the best balance between the whole life cost (from acquisition to disposal) of goods and services against predefined requirements.
- Generating savings through corporate or collective action with other public bodies.
- Generating efficiency savings through streamlining the procurement process.
Contract Award
Where the tender process has been carried out in line with EU legislation, a contract award notice is placed in the Official Journal of European Union on completion of the tender evaluation and mandatory "standstill" period.
Where the contract value is below £156,442, the contract may be awarded as soon as the award decision has been made. The successful tenderer will be notified that, subject to there being no challenge to the award decision, the contract will be awarded after a period of 10 days.
We will also contact unsuccessful contractors or suppliers to inform them of the reasons why they were unsuccessful and give details of the relative advantages of the successful tender.
