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DTI PROCUREMENT MANUAL

A. POLICY

A.1 General Public Procurement Principles

Definition of Procurement
Value for Money
Commitment to Competition

A.2 DTI Procurement Principles

Best Practice
DTI Procurement Strategy

A.3 Competition

Supplier Competitiveness
Working with Suppliers

A.4 Electronic Purchasing

General
E-Purchasing Strategy

A.5 International Obligations

General

A.6 Small and Medium Sized Enterprises

General Policy Objectives
Encouraging SMEs
Statistical Requirements
Small Business Service and Other Sources of Advice

A.7 Environmental Issues in Purchasing

Introduction
Key Points

A.8 Social Issues in Procurement

Introduction
Opportunities for Consideration of Social Issues

A.9 Public Procurement and Race Equality

Background
Key Expected Outcomes
How to Build Race Considerations
Race Equality in the Procurement Cycle

 

B. ACCOUNTABILITY & ETHICAL PRACTICE

B.1 Accountability & Standards of Conduct

General Principals of Accountability & Conduct
Use of Delegated Power
Separation of Duties
Functions Should Not Be Combined
Sources of Additional Information

B.2 Financial Procedures

General Compliance Requirement
Prompt Payment Policy
Sources of Additional Information

B.3 Record Keeping and Documentation

Requirements
Documentation & Record Management
Numbering
Retention of Documents
Sources of Additional Information

B.4 Audit

The Role of Internal Audit (IA) in Relation to Procurement
General Criteria for Auditing Procurement Activities
Internal Audit Reviews
National Audit Office (NAO)
Sources of Additional Information

B.5 Ethics & Good Customer Practice

Introduction
 Ethics
Guiding Principles
Legislation of Governing Conduct
Gifts & Hospitality
Entertainment & Social Events
Conflicts of Interest
Fraud
Confidential Matters
Data Protection Act
Soliciting Contributions
Personal Discounts, Samples & Purchases
Contests, Lotteries or Draws
Good Client / Contractor Relationships
Sources of Additional Information

B.6 Open Government

Background
Guidance
Information That Should Be Disclosed
Disclosure of Contractor's Identity, Number of Tenders & Criteria for Award of Contract
Disclosure of Nature of the Job, Service or Goods Supplied
Performance Standards
Performance Against Simple Quality, Time & Price Targets
Performance in Relation to Detailed Quality Type Targets
Price Disclosure
Disclosure of Contract Terms & Conditions or Sections of Service Level Agreements
Requests for References
Preparation of Consultancy Reports & Studies
Sources of Additional Information

 

C. ORGANISATION, SOURCES OF ADVICE AND TRAINING

C.1 Office of Government Commerce

Introduction

C.2 Organisation of Procurement in DTI

Introduction
Procurement Routes

C.3 Training and Career Development

Training Obligations
Government Procurement Service

C.4 Legal Advice & Guidance

A New Process

How to Obtain Legal Advice

How the System Works

C.5 Sources of Advice - People

Group Procurement Contacts
Procurement Policies and Services (PPS) Branch
Financial, Accounting and Control Systems Issues
General Source Advice

C.6 Sources of Advice - Written

Procurement Information Available Online (available on the DTI website and Internet)
-  DTI Procurement Manual (available on the DTI website)
-  DTI Procurement Bulletins (available on the DTI website)
-  OGC's Successful Delivery Toolkit (available via the Internet)
- Other Material Available to DTI Staff Only
Other Written Information Sources

 

D. THE LEGAL FRAMEWORK

D.1 Introduction

D.2 Contracts

Definition Of A Contract
Types Of Contract
Elements Of A Contract
DTI Contracts
Creating A Contract By Requesting Quotations Or Tenders
Creating a Contract By Ordering Without Tendering
Creating a Contract By The Action Of The Parties
"Battle Of The Forms" (Conditions Of Contract)
Letters Of Intent
Breach and Liquidated Damages
Force Majeure
Contractual Delegation And Signature
Terms And Conditions Of Contract
Standard Terms and Conditions
General Conditions for Works Contracts (GC/Works)
Model Forms Of Contract And Conditions
Special/Supplementary Terms And Conditions Of Contract
Interdepartmental Trading
Contracts With Foreign Organisations
Suppliers’ Use Of Subcontracted Staff

D.3 Intellectual Property Rights, Ownership of Results and Confidentiality

General
Purchase of "Standard" or "Off the Shelf" Goods
Purchase of "Non standard" or "Off the Shelf" Goods Modified to Specification of Purchaser
Purchase of Goods Designed to Specification of Purchaser
Freedom to have Goods Supplied by a Second Supplier
Development of Goods with Seller
Procurement of a Computer Program
Research and Development

D.4 UK Legislation

General
-  Sale of Goods Act 1979
-  Supply of Goods and Services Act 1982
-  Data Protection Act 1984
-  Fair Trading Act 1973
-  Competition Act 1980
-  Unfair Contract Terms Act 1977
-  Limitation Act 1980
-  Health and Safety at Work etc. Act 1974
-  Fair Employment (Northern Ireland) Act 1976
Industrial and Intellectual Property Acts
The Sale of Goods Act 1979
The Sale and Supply of Goods Act 1994
Transfer of Undertakings (Protection of Employment) Regulations 1981 - TUPE
Sources of Additional Information

D.5 EU Public Procurement Directives

The Directives and Related UK Legislation
Sources of Additional Information

 

E. MANAGING THE PROCUREMENT PROCESS

E.1 Arrangements and Responsibilities

Key Stages in Procurement
Responsibilities and Roles
Sources of Additional Information

E.2 The Business Case

Introduction
Coverage of the Business Case
Approval of the Business Case
Special Cases

E.3 Specifications

Introduction
Role
Responsibility for Writing the Specification
The Role of Procurement Specialists
Reviewing Specifications
Performance Specifications
Design Specifications
Standard Specifications
Quality Standards, e.g. ISO 9000
Using Samples, Patterns etc. as Specifications
Simplification and Variety Reduction
Checklist

E.4 Sourcing and Supplier Appraisal

Introduction
Sourcing Strategy
Sourcing Information
Sourcing Method
Stages in The Appraisal Procedure
Pre-Qualification
Appraisal and Selection
Gathering Additional Information
Appraisal Criteria
Management and Workforce
Capacity
Technical Capability
Delivery Performance
Financial Status
Conducting a Financial Appraisal
Supplier Development (Vendor Rating)

E.5 Contract Strategy

Introduction
Contractual Approaches
Contract Types
-  Cost Reimbursement Contracts
-  Fixed Price Contracts
-  Capped Price Contracts
-  Incentive Contracts
-  Framework Contracts
-  Stage Payment (Milestones)
-  Single or Competitive Tender

E.6 Gateway Reviews

Introduction
Benefits
What to Do
Low Risk Projects
Medium/High Risk Projects

E.7 Risk Management

Introduction
Allocation of Risk
The Risk Management Process
Financial Stability of Contractors
Other Procurement Risks
Risk Analysis
Reducing Risk
Contingent Liability
Additional Information and Advice

E.8 European Union Directives

Introduction
Aims
Applicability
-  Thresholds
-  Main Provisions
Participating States
Features Common to All Directives
-  Threshold Compliance
-  Prior Information Notices (PIN) (Indicative Notices)
-  Specifications
-  Timescales
-  Framework (Call-off) Arrangements, Contracts and Agreements
-  Procedures
-  Publication of OJEU Notices
-  Selection of Tenderers
-  Awarding the Contract
-  Debriefing Suppliers
-  Reporting and Statistical Requirements
-  Compliance
Sources of Additional Information

E.9 Frameworks

Introduction
Benefits of Frameworks
Types of Framework Arrangement or Agreement
Negotiations on prices in Framework arrangements or agreements
Undertaking a Procurement Exercise to Purchase a New Framework
 -  Selecting the Scope (Extent) of an Arrangement or Agreement
 -  Selecting the Term of an Arrangement or Agreement
 -  Supplier Selection
 -  Specifications
 -  Terms and Conditions of Contract
 -  Tender Evaluation
Managing a Framework Arrangement or Agreement
Completion Report
Termination of an Arrangement or Agreement

E.10 Quotations

Introduction
Procedures and Thresholds
Obtaining Quotations
Records

E.11 Tendering

Introduction
Pre-Qualification
Terms & Conditions of Contract
Invitation To Tender Form (PF30)
Issuing Invitations to Tender (ITTs)
Receipt Of Tenders
Late Tenders
Opening Of Tenders
Evaluation

E.12 Tender Evaluation

Introduction
Equal Treatment
Criteria For Evaluation
Commercial Evaluation Criteria
Technical Evaluation Criteria
Financial Evaluation Criteria
Financial Evaluation - VAT
Comparison Of Tenders

E.13 Debriefing

Introduction
Objectives
Responsibility
Debriefing Technique
Reasons for Rejection

E.14 Post Tender Negotiation

Introduction
The Meaning of Negotiation
Negotiation Techniques
Purpose of Post Tender Negotiation
Scope of Post Tender Negotiation
Control of Post Tender Negotiation
Training

E.15 Ordering and Issuing the Contract

Introduction
Ordering Using the Government Procurement Card (GPC)
The Purchase Order and Commit to Pay (CTP)
Summary of CTP Process

E.16 Payment

Prompt Payment
Invoice Payment and Control including Receipting Goods or Services
Responsibilities
Payment Due
Payment in Advance
Miscellaneous
Additional Payments

E.17 Contract Management

Introduction
General Arrangements
Contract Monitoring
Contract Control
Contract Variations and Extensions (Renewals)
- Contract Variations
- Contract Extensions (Renewals)
- Re-tendering
Completion Reports
Record Keeping

E.18 Disposals

Introduction
Requirements
Responsibility and Authority
Approvals Process
Disposal Board
Information Required
Disposal Routes
- Internal Use.
- Internal Sale
- External Sales
- Tendering
Charitable Sales/Donations
Hazardous Materials
Collection and Completion
Documentation
Receipts

 

F. USE OF EXISTING CONTRACTS & FRAMEWORK ARRANGEMENTS

F.1 Use of Existing Contracts & Framework Arrangements

Introduction
Frameworks
Benefits of Frameworks
Placing an Order "Call Offs" From a Framework Arrangement or Agreement
Negotiations on Prices on Existing Framework Arrangements or Agreements

F.2 Current Framework Arrangements and Agreements Held by Core DTI

Overview of Framework Arrangements & Agreements
Location of Current Framework Lists

F.3 The S-CAT IT & Business Services Catalogue

The S-Cat Scheme
Services Available
The Benefits of Using S-Cat
S-Cat Companies
Further Advice within DTI
S-Cat Procurement Process

F.4 The G-CAT Scheme

F.5 Other Sources of Framework Arrangements and Agreements

Office of Government Commerce - OGCbuying.Solutions
 

G. A GUIDE TO THE EUROPEAN UNION SERVICES DIRECTIVE

G.1 Introduction

Purpose of this Guide to EU Services Directive
The EU Services Directive

G.2 Thresholds

Threshold Contract Value
Prior Information Notice Values

G.3 Scope

Scope of Services
Contractorisation
Excluded Contracts (Derogations)

G.4 Participating Countries

G.5 Application of the Service Directive to Framework Arrangements and Agreements

Framework/Call-off Agreements
Call-off Arrangements and Framework Arrangements

G.6 Estimating the Value of a Contract

Introduction to Estimating the Value of a Contract

Lots

Estimating Regular and Renewable Contracts (Normal Purchases)

Estimating Fixed Term or Running Contracts

Contracts with Various Options

G.7 Aggregation

G.8 Services Procurement Procedures

Introduction to Procurement Procedures for Services

Open Tender Procedure

Restricted Tender Procedure

Negotiated Procedure

     - Negotiated Procedure with Prior Publication of a Contract Notice

     - Negotiated Procedure without Prior Publication of a Contract Notice

G.9 Design Contests

G.10 Notices

Introduction to Types of Notices

Prior Information Notice

Contract Notice

Contract Award Notice

G.11 Classification & Coding of Services

G.12 Advertising Rules

G.13 Rules on Technical Requirements

G.14 Variations to Specifications

G.15 Currency of the Contract

G.16 Qualifications & Selection of Suppliers

G.17 Abnormally Low Tenders

G.18 Award Criteria & Award Notice

Introduction to Criteria and Award Notice
Contract Award Notice & OJEU

Contract Award Notice and Legal Obligations & Open Government

G.19 Annulment of the Tendering Process

G.20 Debriefing Suppliers

Introduction to Debriefing Suppliers

Cancellation of Tendering and Non-award of Contract

G.21 Reporting & Statistical Requirements

G.22 Compliance Directive

 

H. A GUIDE TO THE EUROPEAN UNION SUPPLIES DIRECTIVE & WORLD TRADE ORGANISATION (WTO) GPA

H.1 Introduction to the EU Supplies Directive

Purpose of this Guide to EU Supplies Directive & WTO Government Procurement Agreement

H.2 The Directive

H.3 Thresholds

Threshold Contract Value
Prior Information Notice Values

H.4 Scope

Included Contracts
Excluded Contracts (Derogations)

H.5 Participating Countries

H.6 Application of the Service Directive to Framework Arrangements and Agreements

Framework/Call-off Agreements
Call-off Arrangements and EU Framework Arrangements

H.7 Estimating the Value of a Contract

Introduction to Estimating a Contract Value

Regular Supply and Renewable Contracts (Normal Purchases)

Fixed Term or Running Contracts for the Lease, Rental or Hire Purchase of Products

Contracts with Various Options

H.8 Aggregation

H.9 Supplies Contract Procurement Procedures

Introduction to Supplies Contract Procurement Procedures

Open Tender Procedure

Restricted Tender Procedure

Negotiated Procedure

     - Negotiated Procedure with Prior Publication of a Contract Notice

     - Negotiated Procedure without Prior Publication of a Contract Notice

H.10 Notices

Introduction to Notices

Prior Information Notice

Contract Notice Description

Certificate of Despatch for a Notice

Contract Award Notice

H.11 Classification & Coding of Services

H.12 Advertising Rules

H.13 Rules on Technical Requirements

H.14 Variations to Specifications

H.15 Currency of the Contract

H.16 Qualifications & Selection of Suppliers

H.17 Abnormally Low Tenders

H.18 Award Criteria & Award Notice

Introduction to Criteria and Award Notice
Contract Award Notice & OJEU

Contract Award Notice and Legal Obligations & Open Government

H.19 Annulment of the Tendering Process

H.20 Debriefing Suppliers

Introduction to Debriefing Suppliers

Cancellation of Tendering and Non-award of Contract

H.21 Reporting & Statistical Requirements

H.22 Compliance Directive

ANNEX

Annex 1: DTI Frameworks

Framework Arrangements & Agreements - Definition
Framework Arrangements & Agreements  - Applications
DTI Framework Arrangements & Agreements - A List
DTI Purchasing Cards

Annex 2: Procurement Forum and Group Contacts

DTI Procurement Forums
Group Procurement Contacts
Centres of Expertise Representatives
Agency Contacts
NDPB Contacts

Annex 3: Procurement Guidance

Annex 4: Intellectual Property

Patents
Copyright
Registered Designs
Design Rights
Semiconductor Topographies
Rights in Performances
Trade Marks
Confidential Information

Annex 5: Guidance Notes on the use of DTI Procurement Forms

Background
PF30 - Invitation to Tender/Quotation Request
Mentor Form AP1a - DTI Supplier Information Form
Mentor Form AP1 - DTI Payee/Supplier Maintenance Form
PF31 - DTI Standard Terms and Conditions of Contract for Services  & PF32 - DTI Standard Terms and Conditions of Contract for Supplies
PF50 - Summary of Tender Opening
Mentor PO1 - DTI Purchase Requisition Form
Mentor PO3 - DTI Amend Purchase Requisition Form
Purchase Order - Contract Offer Letter
 

Annex 6: Annex to Section G - A Guide to the EU Services Directive

Annex 6.A Useful Information Available on SIMAP
Annex 6.B Residual Service Categories
Annex 6.C Flowchart for the Negotiated Procedure without Prior Contract or Information Notice
Annex 6.D Flowchart for the Open Procedure
Annex 6.E Flowchart for the Restricted Procedure
Annex 6.F Flowchart for the Negotiated Procedure with Prior Contract
Annex 6.G Milestones for a Contract Under the Restricted Procedure
Annex 6.H Technical Specifications
Annex 6.I Supplier Appraisal

Annex 7: Annex to Section H - A Guide to EU Supplies Directive

Annex 7.A Useful Information Available on SIMAP
Annex 7.B Flowchart for the Negotiated Procedure without Prior Information Notice
Annex 7.C Flowchart for the Open Procedure
Annex 7.D Flowchart for the Restricted Procedure
Annex 7.E Flowchart for the Negotiated Procedure with Prior Contract Notice
Annex 7.F Milestones for a Contract Under the Restricted Procedure
Annex 7.G Technical Specifications - Definitions of Terms and Derogations
Annex 7.H Supplier Appraisal - Grounds for References and/or Exclusion

 

 

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