The document discusses the new 2015 Public Contracts Regulations in the UK, which aim to reduce barriers for SMEs and voluntary organizations bidding for public sector contracts. It explains the key changes such as prohibiting pre-qualification for contracts under the EU threshold and limiting suitability questions for larger contracts. It also summarizes Exor's services for validating suppliers to help contracting authorities comply with the regulations.
Lotus Procure is a system that can automate all the tendering activities. One can refer to the system as an e-Tendering System, e-bidding system, e-procurement system or Electronic Tendering System. Automating the entire tendering process that involves procuring services and goods refer to activities starting from purchasing the requisition to when the contract is awarded. The tendering process involves authenticating important information before it is accessed and transferred from one user to another. Users of the system are the buyers and suppliers. Since the system ensures the necessary security measures are in place, the procurement process becomes transparent. Other advantages that such a system presents include ease in forecasting the demand and reducing the risks associated with security of supply and price fluctuations
For our March edition of public matters:
• Steven Brunning summarises the main points of the new public procurement regime and provides a summary of the latest case on lifting the automatic suspension in relation to procurement challenges
• Anja Beriro explores the latest public procurement policy notes issued by the Cabinet Office
• Neil Walker provides two interesting articles on some important property related cases.
Lotus Procure is a system that can automate all the tendering activities. One can refer to the system as an e-Tendering System, e-bidding system, e-procurement system or Electronic Tendering System. Automating the entire tendering process that involves procuring services and goods refer to activities starting from purchasing the requisition to when the contract is awarded. The tendering process involves authenticating important information before it is accessed and transferred from one user to another. Users of the system are the buyers and suppliers. Since the system ensures the necessary security measures are in place, the procurement process becomes transparent. Other advantages that such a system presents include ease in forecasting the demand and reducing the risks associated with security of supply and price fluctuations
For our March edition of public matters:
• Steven Brunning summarises the main points of the new public procurement regime and provides a summary of the latest case on lifting the automatic suspension in relation to procurement challenges
• Anja Beriro explores the latest public procurement policy notes issued by the Cabinet Office
• Neil Walker provides two interesting articles on some important property related cases.
On 25 September, Michael Jerabek from the Australian Competition and Consumer Commission addressed the MDCC about such topics as small businesses & the Competition and Consumer Act, advertising & selling, social media and much more.
This presentation by the Georgian Competition Authority was made during Break-out Session 2: Enforcement in the framework of the discussion on “Overcoming adversity and attaining success: Small and developing competition agencies” held at the 16th meeting of the OECD Global Forum on Competition on 8 December 2017. More papers and presentations on the topic can be found out at oe.cd/sda.
Date 26 November 2013, The National Assembly of Vietnam course XIII issued Law on Bidding No.43/2013/QH13 (hereinafter called Law on Bidding 2013). Law on Bidding 2013 takes effect from 1 July 2014.
The Common Market for Eastern and Southern Africa (“COMESA”) launched a Free Trade Association (“FTA”) on 31 October 2000. The FTA is regulated by the Treaty Establishing the Common Market for Eastern and Southern Africa (“the Treaty”).
Outsourcing Procurement In The Public SectorJon Hansen
When the problems of weak institutional capacities, high costs, delays, and high integrity risks are systemic in a government, outsourcing the procurement function may be a sound option to consider, whether as a short-term gap-filling measure or as a longer-term strategic approach. - ADB Report
Related Story Link: https://procureinsights.wordpress.com/2017/03/14/santa-clara-county-exec-jeffrey-smith-agrees-to-interview/
Japan: Effect of the reverse charge on foreign enterprisesAlex Baulf
The Consumption Tax Act and other relevant laws and regulations were partially amended in 2015 introducing a new taxation mechanism for consumption tax, called the “Reverse Charge Mechanism”.
Due to the tax reform, the Services become out of scope under Consumption tax law (before the tax reform, the services provided in Japan were taxable transaction). So foreign enterprises do not have an obligation to file a tax return and pay consumption tax for the services. However in order to obtain a refund of consumption tax on purchases related to providing these services a foreign enterprises need to elect to be a taxable enterprise by filing a notification to the tax office, because only taxable enterprises can file a consumption tax return. Even if the foreign enterprise elects to be a taxable enterprise, as the Services are categorized as out of scope under consumption tax law, there is a high possibility that their taxable sales ratio becomes minimal or even zero thus reducing the creditable consumption tax on taxable purchases potentially to zero. In order to fix this, the National Tax Agency circular 11-2-13-3 allows that under the itemized method, taxable purchases relating to the Services are categorized as “purchases related to sales other than non-taxable only”. Therefore if foreign companies elect to use the itemized method and meet the "Recording requirement for the itemized method", they will be able to take a credit for the full amount of consumption tax on taxable purchases related to the Services. Without adopting this method, foreign companies might potentially be unable to obtain a refund for consumption tax paid, thus increasing the costs of doing business with Japanese companies.
Understanding Pre Qualification QuestionnairesLloyd Sewell
Tendering for contracts training offers a comprehensive training programme provided by small enterprise support specialists and public sector support specialists for small firms who wish to develop new revenue streams by tendering for public sector contracts.
On 25 September, Michael Jerabek from the Australian Competition and Consumer Commission addressed the MDCC about such topics as small businesses & the Competition and Consumer Act, advertising & selling, social media and much more.
This presentation by the Georgian Competition Authority was made during Break-out Session 2: Enforcement in the framework of the discussion on “Overcoming adversity and attaining success: Small and developing competition agencies” held at the 16th meeting of the OECD Global Forum on Competition on 8 December 2017. More papers and presentations on the topic can be found out at oe.cd/sda.
Date 26 November 2013, The National Assembly of Vietnam course XIII issued Law on Bidding No.43/2013/QH13 (hereinafter called Law on Bidding 2013). Law on Bidding 2013 takes effect from 1 July 2014.
The Common Market for Eastern and Southern Africa (“COMESA”) launched a Free Trade Association (“FTA”) on 31 October 2000. The FTA is regulated by the Treaty Establishing the Common Market for Eastern and Southern Africa (“the Treaty”).
Outsourcing Procurement In The Public SectorJon Hansen
When the problems of weak institutional capacities, high costs, delays, and high integrity risks are systemic in a government, outsourcing the procurement function may be a sound option to consider, whether as a short-term gap-filling measure or as a longer-term strategic approach. - ADB Report
Related Story Link: https://procureinsights.wordpress.com/2017/03/14/santa-clara-county-exec-jeffrey-smith-agrees-to-interview/
Japan: Effect of the reverse charge on foreign enterprisesAlex Baulf
The Consumption Tax Act and other relevant laws and regulations were partially amended in 2015 introducing a new taxation mechanism for consumption tax, called the “Reverse Charge Mechanism”.
Due to the tax reform, the Services become out of scope under Consumption tax law (before the tax reform, the services provided in Japan were taxable transaction). So foreign enterprises do not have an obligation to file a tax return and pay consumption tax for the services. However in order to obtain a refund of consumption tax on purchases related to providing these services a foreign enterprises need to elect to be a taxable enterprise by filing a notification to the tax office, because only taxable enterprises can file a consumption tax return. Even if the foreign enterprise elects to be a taxable enterprise, as the Services are categorized as out of scope under consumption tax law, there is a high possibility that their taxable sales ratio becomes minimal or even zero thus reducing the creditable consumption tax on taxable purchases potentially to zero. In order to fix this, the National Tax Agency circular 11-2-13-3 allows that under the itemized method, taxable purchases relating to the Services are categorized as “purchases related to sales other than non-taxable only”. Therefore if foreign companies elect to use the itemized method and meet the "Recording requirement for the itemized method", they will be able to take a credit for the full amount of consumption tax on taxable purchases related to the Services. Without adopting this method, foreign companies might potentially be unable to obtain a refund for consumption tax paid, thus increasing the costs of doing business with Japanese companies.
Understanding Pre Qualification QuestionnairesLloyd Sewell
Tendering for contracts training offers a comprehensive training programme provided by small enterprise support specialists and public sector support specialists for small firms who wish to develop new revenue streams by tendering for public sector contracts.
What is a PQQ - Pre Qualfication Questionaire
A (PQQ) is normally issued by the contracting authority when they require contractors to supply goods / products or services - It is one of the main documents that must be completed correctly and must be returned to the contracting authority by the specified
date if the contractor wishes to be included in the tendering process and hope to win the contract.
This document represents a standard PQQ and our objective to assist small firms in completing the document correctly - We will provide (1 hour) of free advice to all firms
on request.
In addition to this document, we provide a training programme for firms who wish to fully understand and successfully take part in tendering and procurement both in the private and public sector.
PQQ Evaluation
We provide an assessment of how the PQQ may be evaluated and the qeighting factors attached to each section as part of the (1 hour) support
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The presentation was part of NCVO's skills and information workshops on 7 – 18 October 2013.
The presentation was by NCVO, ACEVO and Candour Collaborations and explores the facts around transforming rehabilitation procurement.
Find out more about NCVO's work on transforming rehabilitation: http://blogs.ncvo.org.uk/2013/01/10/transforming-rehabilitation/
Presentation discussing the requirements of the EU rules on public sector procurement and other things to be considered when purchasing in the public sector.
SLIC Introduction to procurement event, NLS, Edinburgh 09/11/2009.
Effects of Government Procurement on Prompt Tendering and Supply of Goods: A...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Presentation by Rachael Colley, Procurement Solutions and Innovation Manager, NHS Shared Business Services: Procurement at Excel in Health: understanding the NHS as a market place on Tuesday 26 February 2019 at Vanguard House, Daresbury.
Presentation by Julie Collins, Apsiz Services at the Healthcare Business Connect Lancashire SME workshop - Bids and tenders at Society1, Preston on Thursday 22 November 2018.
1. www.exorms.com
To find out more contact us on:
02920 029667
enquiries@exorms.co.uk
Pre-qualifying suppliers
in line with 2015 Public
Contracts Regulations
May 2015
The Public Contracts Regulation 2015
were enacted on 26th February this year.
Their intention is to cut red tape, ensuring
consistency, promoting social value and
increasing the amount of public sector
spend with SME* and VCSEs**.
Exor’s Technical Governance team, provides
clarification on what the regulations mean
for public sector buyers and suppliers.
* Small medium size enterprises
** Voluntary Community and Social
Enterprises
2. Pre-qualifying suppliers in line
with 2015 Public Contracts
Regulations
Where do the regulations apply?
The regulations apply to contracting authorities within
England, Wales and Northern Ireland (except where the
Welsh or Northern Irish contracting authorities carry out
devolved functions).
They do not apply to contracting authorities in Scotland
or to the procurement of health care services for the
purposes of the NHS, within the meaning and scope of the
National Health Service (Procurement, Patient Choice and
Competition) (No.2) Regulations 2013.
When did they come into effect?
The regulations apply to procurement exercises undertaken
by contracting authorities that commenced on or after 26th
February 2015, although there are a number of exclusions
listed in the regulations.
What are the new requirements?
Contracting authorities are encouraged to consider ways of
making their contracts more accessible to SMEs and VCSEs.
This can be undertaken in a number of ways including:
• Creating lots in the contract based on size or specifically
required skills
• Avoiding the use of pre-qualification questionnaires or
using a standard question set (depending of the value of
the contract)
• Using plain language without jargon and acronyms
• Setting realistic insurance requirements
• Encouraging pre-procurement dialogue.
There are a number of specific requirements depending
on whether procurement is for a contract value above or
below EU Thresholds. The EU thresholds, are dependant on
the type of contract and whether the contracting authority
is central or local government. For goods and services it is
currently £112,000 in central government and £173,000
outside central government.
For procurement exercises for
contracts of value below EU
thresholds:
The regulations state that a contracting authority
may not include a pre-qualification stage in any
procurement, where the value is below the EU
threshold for goods and services in order to
reduce the number of suppliers to be invited to
tender.
You can however ask suitability questions of
the suppliers, as long as they are relevant and
proportionate to the tender.
3. Procurement exercises for contracts
of value above EU thresholds:
The regulations define a range of procurement methods that
can be used by contracting authorities for the procurement
of products and/or services, where the estimated value of the
procurement is more than the relevant EU threshold.
Regulation 107 specifically states that questionnaires for
the purpose of qualitative selection, may be used to select
suppliers to participate in procurement procedures or exclude
them from participation.
Regulation 58 (3) specifically states that contracting authorities
shall limit any requirements to those that are appropriate, to
ensure that a supplier has the legal and financial capacities and
the technical and professional abilities to perform the contract
to be awarded.
The regulations encourage contracting authorities to allow
suppliers to self-certify that they are not subject to any
mandatory or discretionary grounds for exclusion. They should
then complete the invitation to tender / quote on the basis of
this self-certification.
Crown Commercial Service guidance on the regulations
recommends a set of questions that should be adopted by
contracting authorities, to ensure clarity and consistency
across the public sector. It also emphasises the use of PAS
91 for construction-related procurement and advises that
a European Single Procurement Document (ESPD) is being
developed by the European Commission.
4. Does this mean contracting authorities
no longer need to vet suppliers for
contracts under the EU thresholds?
No. If the contract is for a value less than £10,000 for central
government or £25,000 for outside central government; there
is no stipulation preventing a contracting authority from using
a pre-qualification questionnaire or recognising an equivalent
question set. However, they must not impose arbitrary minimum
requirements that inadvertently bar any supplier, including a new
businesses from bidding for the contract.
In addition to this, even when the contract is above these values,
Regulation 111 (5) states that contracting authorities may ask
suppliers to answer suitability assessment questions, as part of
the invitation to tender or contract advert. This is to determine
whether candidates meet requirements or minimum standards
of suitability, capability, legal status or financial standing. The
suitability assessment questions need to be relevant and
proportionate to the subject matter of the procurement.
In conjunction with these requirements, there are a number of
other legislative requirements contracting authorities need to meet
when undertaking a procurement exercise, for example:
A contracting authority has a duty under health and safety
legislation, including the Health and Safety at Work etc. Act 1974,
Management of Health and Safety at Work Regulations 1999 and
the Construction (Design and Management) Regulations 2015,
to ensure that their suppliers are competent, capable and have
compliant health and safety arrangements.
Additionally, under the Equality Act 2010, there is a Public Sector
Equality Duty (PSED), whereby an authority must have due regard
to the desirability of exercising their functions in a way that is
designed to reduce the inequalities of outcome, which result
from socio-economic disadvantage. This inevitably requires an
assessment of the capabilities of suppliers throughout the supply
chain on how they comply with this legislation.
Furthermore, the Public Services (Social Value) Act 2012, requires
contracting authorities to ‘consider prior to undertaking the
procurement process, how any procured services might improve
economic, social and environmental well-being.’ This also can lead
to suitability questions being asked of suppliers.
Please note: This is not an exhaustive list. Therefore, even with
the procurement of products and/or services to a value less than
EU threshold, there is still a significant need to ask appropriate
questions about the suitability of suppliers.
5. How can Exor assist in ensuring compliance with the myriad of
requirements?
Exor assessments are underpinned by a rigorous
questionnaire, aligned to government procurement
standards including PAS 91. The questionnaire covers:
• Financial
• Health and Safety
• Insurances
• Environmental
• Quality
• Diversity and Equality
• Certification and Licencing
• References.
ExorRegister enables suppliers to complete our PAS 91
questionnaire and self-certify. Ideal for those who adopt the
recommendation of self-certification at PQQ and ITT stages
of a tender.
Gold, Silver or Bronze validation levels mean that supplier
questionnaires and their supporting information, will be
validated by Exors’ in house auditors, giving contracting
authorities’ confidence in a supplier’s compliance. As part
of the validation service, Exor will undertake a health and
safety and financial assessment supported by our partners
Experian. The Experian assessment is used to establish a
supplier’s suggested safe trading limit and give confidence
in their financial stability to undertake the works they are
tendering for. Buyers are able to validate a supplier to a level
that is proportionate to the contract value, making it more
cost effective for their supplier.
Our new online portal enables contracting authorities to
select and update their own supplier preferences for:
• Regions (where does the supplier operate)
• Accreditation Level (Exor Register, Gold, Silver or Bronze)
• Work Categories.
For procurement where the contract value is less than
£10,000 for central government or £25,000 for local
government; the contracting authority can recognise
ExorRegister or Gold, Silver
and Bronze validated levels,
as an equivalent to their own
pre-qualification question
set and reduce the need for
repeated pre-qualification
exercises each time it awards
a contract.
Where procurement exercises
are for contracts between
these values and EU thresholds; ExorRegister or Gold, Silver
and Bronze validated levels can be accepted in lieu of asking
suitability assessment questions at the point of inviting to
tender.
For over EU threshold valued procurement, the PAS 91
aligned Exor Construction Report can be recognised by
contracting authorities.
Therefore, ExorRegister or Gold, Silver and Bronze validated
levels can be accepted as assurance that a supplier
meets a significant part of suitability requirements, for
any procurement exercise and ensure that contracting
authorities are meeting their procurement duties under a
range of legislation.
Further reading:
• Exor Buyer Factfile
http://exorms.co.uk/Exor/media/Exor-media/EXOR-
buyer-factfile-FINAL.pdf
• The Public Contracts Regulations 2015:
http://www.legislation.gov.uk/uksi/2015/102/made
• Public Contracts Regulations 2015: Lord Young
Reform FAQs:
https://www.gov.uk/government/publications/public-
contracts-regulations-2015-lord-young-reform-
frequently-asked-questions
• Public Contracts Regulations 2015: New requirements
relating to Pre-Qualification Questionnaires to help
businesses access Public Sector Contracts:
https://www.gov.uk/government/publications/public-
contracts-regulations-2015-requirements-on-pre-
qualification-questionnaires
6. Exor, Santia House, Parc Nantgarw, Cardiff CF15 7QX
www.exorms.co.uk
enquiries@exorms.co.uk
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