Corporate Procurement

Procurement Strategy

4. The Regulatory Framework

4.1 Procurement within Barking and Dagenham, as with other local authorities is bound by clear regulatory framework, partly through UK and European Union Law, supplemented by internal Council Contract Rules. In summary, the rules include the following requirements:

4.2 European Community Procurement Rules

The European Community Procurement Rules apply to all public service organisations and set out procedures for the award of contracts above certain financial threshold for supplies, services and works.

The purpose of the rules as set out in the Treaty of Rome is to ensure free movement of goods and services throughout Member States thus increasing opportunities for competition and better value for money.

The thresholds are different for the type of procurement exercise - currently just above £150,000 for services and supplies and £3.8 million for works - and are reviewed every 2 years.

We are committed to working proactively to improve procurement practice yet stay explicitly within the bounds of the regulations.

4.3 UK Law

The Local Government (Goods and Services) Act 1988 clearly sets out how procurement should take place with restrictions on the inclusion of 'noncommercial' considerations within evaluation criteria.

Whilst it is clear that many of these restrictions still apply, including prevention of locality as an explicit criterion, there has been some relaxation in the rules around the ability to include staff considerations within tender evaluation.

This is accompanied by the TUPE (Transfer and Undertaking (Protection of Employment) Legislation) 1984 which governs basically the requirement to transfer staff (and their terms and conditions) with a service if the service provider changes.

Our 'Workforce Matters in Best Value and Contracting' Policy incorporates guidance about TUPE and the avoidance of the '2 Tier Workforce'.

4.4 Contract Rules

Our Contract Rules set out clear guidance on probity and tendering processes to safeguard the interests of Barking and Dagenham.

Included within the rules are the thresholds for quotes and tendering, and when and how Members should be involved with the process.

The Contract rules were last revised in 2001 (agreed February 2002) and these will be reviewed as part of the Procurement Strategy / Best Value Improvement Plan.

4.5 The strategy sets out how we will comply explicitly with these rules, and how a procedure for ensuring compliance with the rules will be developed.

Contact

Corporate Procurement

Civic Centre

Rainham Road North

Dagenham

RM10 7BN

Tel: 020 8227 5234

Fax: 020 8227 5261

Email: corporate.procurement@lbbd.gov.uk|