The Supplier Exchange
What is The Supplier Exchange?
What are the benefits for my organisation in The Supplier Exchange?
Selling to the Council
What type of things does the Council purchase?
What rules and regulations should I be aware of?
What about European Union procurement directives?
How do I find out about supplier opportunities?
How do I respond to the Contract Notice?
What information will I need to provide when applying for contracts?
What is the difference between an open and restricted procedure?
How likely am I to win a Council contract?
How can I improve my chances of winning a Council contract?
What happens when I am invited to tender?
Is the Council looking for the cheapest tender?
What happens if I can't get my tender in on time?
What are the Council's expectations of contractors?
How are tenders evaluated?
Why does the tendering process need to be so formal?
How are contracts awarded?
How are contracts monitored?
Why are your procedures so long and complicated?
Can you give me feedback on why I've not been invited to tender?
Is the City of Edinburgh Council using e-Procurement?
Where can I get further information?
e-Procurement
What is e-Procurement?
How does e-Procurement save money?
What is a Request For Information?
What is an e-Auction?
What is e-Tendering?
What is e-Invoicing?
Why is the Council implementing e-Procurement?
What is The Supplier Exchange?
The Supplier Exchange is the City of Edinburgh Council's e-procurement portal where their contract adverts can be viewed by everyone, along with all the information that is necessary for doing business with them. Any suppliers interested in selling to the Council need only to regularly check the New Tender Adverts page of the website for any adverts relating to their area of business. Within each advert there will be details of how to express interest. For those already supplying to the Council, the Supplier Exchange provides a link to access purchase orders raised by the Council, the ability to create on-line invoices (e-invoices) from receipted purchase orders, and maintain their profile information, etc.
What are the benefits for my organisation in using The Supplier Exchange?
The benefits of using The Supplier Exchange are:
- Access to information about doing business with the Council
- On-line access to Council advertisements for tender and opportunity to respond electronically
- On-line access to the iSupplier Portal which provides the following for Council suppliers:
On-line invoicing direct into the system - e-Invoicing
Invoice and Payment History information.
Purchase Order records and delivery responses.
What type of things does the Council purchase?
The range of goods and services required is vast. Examples include: office equipment, stationery, vehicles, cleaning materials, books, musical instruments, furniture, window cleaning, catering, pest control, refuse collection, consultants, roofing, plumbing and glazing.
How do I find out about supplier opportunities?
- Check the Tender Adverts link on www.supplierexchange.org.uk for forthcoming opportunities.
- Check local newspapers and trade journals for advertisements placed by the Council seeking tenders for goods, works and services.
- Check the Official Journal of the European Union (OJEU) for contracts above the European thresholds. These can be viewed at www.ojec.com/
What rules and regulations should I be aware of?
As a local authority there are regulations which the Council has to follow when procuring supplies, works and services. It is vital that if you wish to contract with the City of Edinburgh Council you are fully aware of the rules and regulations which govern the way we operate.
The rules depend on the value of the purchase.
| Value | Process | Advertising |
| Up to £20,000 | A minimum of three quotations/tenders will be invited. | Advertising is discretionary subject to the type of procurement. |
| £20,000 - £139,893 | A minimum of four tenders will be invited, usually through a two-stage process. | Adverts are placed in the most appropriate media according to circumstances such as the value of contract, number of suppliers in the marketplace and cost of adverts. |
| Above £139,893 | EU procurement directives apply. | Adverts will be placed in the Official Journal of the European Union to ensure competition and sufficient coverage. |
What about European Union procurement directives?
We have a legal requirement to comply with the European Union (EU) procurement directives, which govern the way in which public sector procurement is conducted for contracts above specified thresholds.
The thresholds for 2008 are:
| Services | Supplies | Works | ||
| £139,893 | £139,893 | £3,497,313 |
Under the EU Procurement Directives, the City of Edinburgh Council can conduct their procurement using one of three processes:
- Open: any organisation can express an interest and request tender documents.
- Restricted: a two-stage process. Any organisation can express an interest. They then undergo a pre-qualification assessment. Only the most suitable applicants are invited to tender.
- Negotiated: all organisations who express an interest undergo an initial prequalification assessment. The Council, under limited circumstances, will then negotiate with one or two suitable contractors.
Where our procurements exceed the above thresholds, we must follow these basic requirements:
- Decide which of the three processes should be used;
- Publish a tender notice in the Official Journal of the European Union (OJEU) to give all EU suppliers an equal opportunity to tender;
- Invite tenders according to the procedure been used (open, restricted or negotiated) taking account of the minimum timescales imposed, to ensure that reasonable time is given to respond to adverts and prepare submissions;
- Use the criteria published in the tender notice;
- Place a contract award notice in OJEU.
How do I respond to the Contract Notice?
If you see a Council contract advertised that your company is interested in tendering for, you should lodge an official Expression of Interest. Details of how to do this will be given in the Contract Notice details of the advert. The Council will set a deadline for the submission of the Expressions of Interest. After the deadline has passed, all of the Expressions of Interest that have been received will be opened at the same time to ensure fairness. Suppliers will be invited to tender from that point.
What information will I need to provide when applying for contracts?
The Contract notice or advertisement will detail whether an Open or Restricted procedure is being followed.
Each tender process will require the supplier to provide the following information:
- Financial Information: Details from each of the last 3 years is required. Private and public limited companies must submit their fully audited accounts as registered with Companies House. Other suppliers should forward copies of financial statements, business plans or a certified statement of turnover. This information is assessed to ensure the company is financially stable enough for the contract in question. Other financial details, for instance insurance cover, may also be required.
- Equal Opportunities: The Council strongly supports equal opportunity laws, and requires all suppliers to comply with equal opportunities legislation. Suppliers will be asked to detail and possibly provide evidence of how equality issues are included in a company's employment practices.
- Environment: The Council is committed to protecting the local environment and ensuring a better quality of life for all. The Council expects its contractors to meet similar levels of environmental care. Suppliers will be asked to provide information and evidence for each tender proving commitment to environmental issues.
- Health and Safety: The Council is committed to providing a safe and healthy environment for everyone it works with and for. Suppliers must provide information about their company's safety policies, operational safety procedures and risk assessments.
- Experience and Technical Ability: The Council needs to assess whether a company has the relevant experience, resources and technical ability to carry out the categories of work or to provide the type and quality of service required. Suppliers should provide details of similar work carried out over recent years. They must also provide contact details of at least 3 referees with whom confidential references can be directly obtained by the Council. Further details may be required for particular contracts.
What is the difference between an open and restricted procedure?
In an Open procedure all suppliers who register an Expression of Interest in a contract are invited to tender whereas in the Restricted procedure only those who fulfil certain requirements are invited to tender.
How likely am I to win a Council contract?
As long as certain criteria is met e.g. financial stability, satisfactory Health and Safety environments and that services are provided to a high quality at a competitive cost, there is no reason why companies cannot attract business from the Council. The City of Edinburgh Council requires fairness and equality of treatment in awarding contracts in line with achieving best value for the tax payer.
How can I improve my chances of winning a Council contract?
You need to clearly demonstrate in responding to tenders that you can meet the required standards and service delivery requirements at an economically advantageous cost.
What happens when I am invited to tender?
If you are invited to tender you will receive the following documents:
- Letter of Invitation which will advise when, where and how tenders should be submitted.
- Instructions to Tenderers which provides guidance for completing tender documentation.
- Specification which sets out what needs to be achieved and includes policies, procedures and guidelines that need to be followed. Tenderers are expected to tender on the basis of this specification. The specification will include performance targets or criteria to be met in delivering the services, supplies or works.
- Pricing Schedule, which is the document where you enter your quotes for the specified services or products.
- Terms and Conditions which are the Council's standard procurement terms and conditions.
- Tender Evaluation Criteria which advises how the tender submission will be evaluated and the contract awarded.
Tenders must be returned by the date given. Any tenders received after the deadline will be returned unopened to the sender. All tender documents are opened at the same time in order to ensure a fair process.
Is the Council looking for the cheapest tender?
The Council rarely evaluates a tender based purely on price. The Council is looking for the best balance of quality and price, not just the lowest price. Tenders will be evaluated by:
- Quality
- Financial Viability
- Competence
- Experience
- Technical Merit
- After Sales Service
- Delivery Date
- Technical Back up
- Adherence to Council Policies and Protocols
- Integrity
- Innovation
- Communication
What happens if I can't get my tender in on time?
You must return the tender by the date given. Any tenders received after the deadline will be returned unopened to the sender. All tender documents are opened at the same time in order to ensure a fair process.
What are the Council's expectations of contractors?
We expect excellent performance from contractors and suppliers throughout the contract. We need to ensure we offer value for money services to our Council tax payers. This includes:
- Low total cost - not only a low price but low administration costs. You should consider the whole life costs of supply when putting together your tender.
- Quality - you will be expected to provide to an appropriate quality standard to meet the needs set out in the specification.
- Adherence to Council policies and protocols.
- Integrity - honesty is expected in all dealings between the Council and its contractors. It is a criminal offence to give or offer any gift to a local government official. Tenderers risk being excluded from the procurement process for failing to observe this requirement.
- Communication - suppliers are expected to maintain good communications with the Council throughout the contract.
The City of Edinburgh Council has an obligation to offer the best value for money services to Edinburgh's taxpayers. The Council requires an exceptional standard of performance from its contractors and suppliers.
When selecting a supplier, the Council must ensure that the supplier will provide value for money, and that services will be delivered effectively.
In the list of evaluation criteria, cost and quality are the most important criteria. The Council is looking for the best balance of quality and price, not just the lowest price.
Details of the specific evaluation criteria and the relative weighting of these criteria are included in the tender documents that suppliers receive with the invitation to tender.
At any time during the tender process suppliers may be invited to give a presentation or attend an interview to aid the evaluation process. The Council may also conduct site visits to see first hand how potential suppliers organise their work.
Why does the tendering process need to be so formal?
This is to ensure that reliability and honesty is maintained throughout the process. However, we are happy to answer questions specifically about the tender and specification should you have any. We need to ensure consistency in the information provided to contractors and in the way in which we communicate with them.
Contracts are awarded to the supplier who is considered to offer best value for money when taking into account price, quality and best value, as well as ability to meet the Council's specification.
Tender evaluation is always carried out in a comprehensive, auditable and transparent manner. To ensure fairness, the evaluation criteria and method will be clearly defined before tender documents are issued.
The criteria to be used will be listed in the tender documents, in order of importance. The weightings of the criteria may also be given.
Prior to the awards being given, unsuccessful bidders have a 10 day period to lodge any complaints about the ruling.
You will be expected to provide the service in accordance with the requirements set out in the contract papers and your proposals on how to carry it out.
Suppliers and contractors working for the Council are regularly monitored to assess their compliance with predefined performance criteria. The contract conditions are strictly applied and explanations sought if a contractor fails to perform to the levels required.
Why are your procedures so long and complicated?
As a local authority we are bound by a number of rules and regulations in terms of how we conduct procurement. Most significant are the EU Procurement Directives, which aim to ensure that the procurement process remains fair, transparent and open to all regardless of where they are based in the EU. Further information on the EU Procurement Directives is available in the 'Selling to the City of Edinburgh Council' guide, see the link on the downloads page.
Can you give me feedback on why I've not been invited to tender?
Under EU directives suppliers are legally entitled to request feedback on any unsuccessful bids made to the Council. Within the limits of confidentiality, unsuccessful suppliers can be told which aspects of their bid were strongest, which were weakest and may be advised on how to improve and develop for the future.
Being unsuccessful in one contract does not mean you will be unsuccessful in future contracts. Feedback should be used to help improve any future bids made.
Is the City of Edinburgh Council using e-Procurement?
Yes. The city of Edinburgh Council is committed to developing e-procurement as a major tool in delivering efficiency savings for both the Council and their suppliers. Paper transactions will in time, will be replaced by eProcurement, providing a streamlined process and reduced transaction costs. For more information see What is eProcurement?
Where can I get further information?
If you are seeking information regarding a specific contract please use the contact details provided in the advert/contract notice and tendering details.
General information on the tendering process and procurement at City of Edinburgh Council can be obtained by writing to:
Tim Cunningham
Procure to Pay
Payments and Procurement Services Division
Level 3
Waverley Court
4 East Market Street
EDINBURGH
EH1 1DE
Tel: +44 131 529-6432
Email: tim.cunningham@edinburgh.gov.uk
Simply put, e-procurement is electronic purchasing, i.e. buying goods and services on-line. Electronic commerce is high on most local authorities agenda in their drive towards better commercial relationships and greater efficiency in the purchase to pay process. E-procurement can be defined in a number of ways and does not necessarily require new or high levels of technology. Suppliers to City of Edinburgh Council will not be required to implement new or expensive systems to continue supplying us.
How does e-Procurement save money?
E-Procurement reduces the prices for goods and services through volume discounts, and enables administrative and operational cost savings by streamlining processing and interactions with vendors/suppliers.
What is a Request For Information?
A Request For Information (RFI) is an initial procedure in procurement where suppliers are issued with a description of a material or service contract requirement, and are requested to provide information on their suitability and ability to provide these products or services. The RFI will not be used solely to award a contract. It will be followed by the Request for Quotation (RFQ) process or an eAuction.
An e-auction is an electronic tool that partly automates the contract award procedure and increases competition. The procurement process as a whole is largely unchanged. The Contract Notice is advertised as usual, but with an additional statement declaring the use of an e-auction. Initial tenders are then submitted according to the relevant procedure (open or restricted) and are evaluated as usual. If a supplier's initial tender meets the specification requirements, they are invited to take part in the eAuction. The eAuction is a timed one-day event that uses a process similar to eBay, expect that suppliers enter increasing lower bids. The monetary value of each supplier's bid will be combined with the quality rating their bid has been given in the Council's evaluation of their initial tender. Bids will then be ordered based on this price/quality combination. Suppliers will be able to see whether or not they are the winning bidder at all times. However, they will not see the details of other participating suppliers, or other suppliers' bids.
At the end of the timed e-auction the Council will know which supplier has offered the best bid based on price and quality. This information will then be used to award the contract. Please note, however, that the Council is under no obligation to award the contract to the winner of the e-auction.
Electronic tendering (e-tendering) is carrying out the traditional tendering process in an electronic form, using the internet. Using e-Tendering The City of Edinburgh Council can:
- Advertise tenders
- Receive bids
- Award contract / PO
- Evaluate tenders
- Include a variety of techniques such as RFIs, RFQs and eAuctions
Using e-tendering, the suppliers can:
- Receive notification of the relevant tenders
- Submit bids on-line
- Track the status of their bids
E-Invoicing or electronic invoicing is an internet based solution for the secure exchange of electronic invoices between suppliers and buyers.
Why is the Council implementing e-Procurement?
In April 2005 the Council implemented electronic procedures to quicken and simplify the procurement process. By refining this process and making it as efficient as possible, substantial savings can be made, whilst maintaining the highest quality of services and products at the best prices.
The Council aim to replace the majority of paper transactions with electronic transactions. Through e-procurement suppliers can submit on-line tenders (e-Tenders), Council buyers will be able to submit on-line Request for Quotations (RFQs), and suppliers will be able to send electronic invoices (e-Invoices).
The result is a much more streamlined process that significantly reduces transaction costs on both sides. It saves time and money for both the Council and suppliers, making selling to the Council more accessible and increases competition within the procurement process.
