THE FIFE COUNCIL

STANDING ORDERS

SCHEME OF TENDER PROCEDURES

Fife House,

North Street,

GLENROTHES,

Fife.

KY7 5LT Coming into effect on 1st July, 2004.

LEGAL/STANDORD/SCHEME OF TENDER PROCEDURES - 020604

STANDING ORDERS

SCHEME OF TENDER PROCEDURES

PART 1 - GENERAL PROVISIONS APPLYING TO ALL CONTRACTS

Paragraph Title Page

1 Commencement 1

2 Definitions 1

3 Extent 2

4 Best Value 2

5 Exempted Contracts 3

6 Significant Trading Operations 4

PART 2 - PROCEDURES FOR AWARDING SERVICE CONTRACTS

Paragraph Title Page

7 Contracts with a Value Below £25,000 5

8 Contracts with a Value of £25,000 and above 6

9 Approved List of Tenderers - Standing List 6

10 Approved List of Tenderers - Particular Contract 7

11 Liaison with Head of Service Support 8

12 Form and Content of Tenders 8

13 Return of Tenders 8

14 Late Tenders 8

15 Opening of Tenders 8

16 Confidentiality of Tenders 9

17 Checking of Tenders 9

18 Acceptance of Tenders 9

19 Termination of Contracts 10

20 Extension of Contracts 10

PART 3 - PROCEDURES FOR AWARDING SUPPLIES CONTRACTS/

PART 3 - PROCEDURES FOR AWARDING SUPPLIES CONTRACTS

Paragraph Title Page

21 Authority to Invite Tenders and Quotations 11

22 Invitations to Tender 11

23 Open Tendering/Seeking Expressions of Interest 12

24 Return of Tenders 12

25 Late Tenders 12

26 Opening of Tenders 12

27 Confidentiality of Tenders 13

28 Checking of Tenders 13

29 Acceptance of Tenders 13

30 Termination of Contracts 14

31 Extension of Contracts 14

PART 4 - PROCEDURES FOR AWARDING WORKS CONTRACTS

Paragraph Title Page

32 Authority to Invite Tenders and Quotations 15

33 Invitations to Tender 15

34 Approved List of Tenderers - Standing List 15

35 Approved List of Tenderers - Particular Contract 16

36 Form and Content of Tenders 17

37 Return of Tenders 17

38 Late Tenders 17

39 Opening of Tenders 17

40 Confidentiality of Tenders 17

41 Checking of Tenders 18

42 Acceptance of Tenders 19

43 Termination of Contracts 19

44 Extension of Contracts 19

Appendix Title Page

1 Procedures for Procurement of Social Care Services 20

2 Procedures for Inviting and Opening Offers Relating to Property 23

3 Notification of Intention to Invite Tender 27

4 Content of Tender Documents 28

5 Procedures for Inviting and Opening Tenders 30

6 Notification of Award of Minor Contract 36

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STANDING ORDERS

SCHEME OF TENDER PROCEDURES

FOR FIFE COUNCIL

PART 1

1.0 Commencement

1.1 This Scheme of Tender Procedures (hereinafter referred to as "the Contract Standing Orders") shall apply and have effect as from 1st July, 2004. This Scheme replaces the Scheme which came into operation on 15th March, 2002.

2.0 Definitions

2.1 In these Contract Standing Orders, the following words and expressions shall have the meanings hereinafter assigned to them, that is to say:-

"the 1973 Act" means the Local Government (Scotland) Act 1973.

"Council" means the Fife Council incorporated under the Local Government etc. (Scotland) Act 1994.

"the Principal Standing Orders" means Fife Council's Standing Orders for the Regulation of Proceedings and Business of the Council.

"the Contract Standing Orders" means this Scheme of Tender Procedures

"Contract" includes work which may be assigned to any of the Council's Significant Trading Operations.

"services" means services as defined by the Public Services Contract Regulations 1993.

"supplies" means supplies as defined by the Public Supply Contract Regulations 1995.

"works" means works as defined by the Public Works Contracts Regulations 1991.

“Annual Contracts” means contracts for the same type of work which are awarded to more than one contractor for periods of one year.

"Quotation/

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“Quotation” means a written statement which specifies the price to be paid by the Council and the works, services or supplies to be provided in exchange for the price.

"the equal opportunity requirements" means the requirements of the law for the time being relating to "equal opportunities" which means the prevention, elimination or regulation of discrimination between persons on grounds of sex or marital status on racial grounds or on grounds of disability, age, sexual orientation, language or social origin, or of other personal attributes, including beliefs or opinions, such as religious beliefs or political opinions.

3.0 Extent

3.1 These Contract Standing Orders are made under section 81 of the 1973 Act and Standing Order 51 of the Council's Principal Standing Orders and shall be deemed to be part of the Principal Standing Orders. These Contract Standing Orders shall apply to the making by the Council or on their behalf of all contracts for the supply of goods or materials or for the execution of works or for the provision of services unless such contracts are exempted contracts in terms of Contract Standing Order 5.

4.0 Best Value

4.1 These Contract Standing Orders will be operated in such manner as will comply in all respects with the requirements of European and United Kingdom legislation.

4.2 The Council has a duty to secure Best Value by virtue of the provisions contained in Part 1 of the Local Government in Scotland Act 2003. Best Value represents continuous improvement in the performance of the Council's functions and in securing Best Value the Council must maintain an appropriate balance among -

(a) the quality of its performance of its functions;

(b) the cost to the Council of that performance; and

(c) the cost to persons of any service provided by it for them on a wholly or partly rechargeable basis.

In maintaining that balance, the Council shall have regard to -

(a) efficiency;

(b) effectiveness;

(c)/

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(c) economy; and

(d) the need to meet the equal opportunity requirements.

The Council must also discharge its duty to secure Best Value in a way which contributes to the achievement of sustainable development.

5.0 Exempted Contracts

5.1 There will be exempted from the provisions of these Contract Standing Orders with the exception of the duty to secure Best Value set out in paragraph 4.2 above:

.1 Any contract of employment; this exemption does not include any arrangement to employ staff on an agency basis;

.2 Any contract or type of contract which the Council or a Committee of the Council declare to be exempt because they are satisfied that the exemption is justified by special circumstances;

.3 Any contract which the Head of Service Support in consultation with the Chair or Vice-Chair of the relevant Service Committee and the Chair or Vice-Chair of the Policy and Resources Committee considers may be exempted by virtue of special circumstances, subject to all such exemptions being reported to the next meeting of the Service committee;

.4 Any contract entered into by a consortium, partnership, collaboration, company or similar body of which the Council is a member, which body exists for the purpose of joint purchasing arrangements, and where such body has invited tenders for the supply of goods or services;

.5 Any contract entered into by a consortium, partnership, collaboration, company or similar body of which the Council is a member where the objects and activities of the body are such that compliance with these contract standing orders would not be reasonable or appropriate;

.6 Any contract for the procurement of social care services provided by the Council as Social Work Authority. Such contracts will be awarded in accordance with the procedures set out in Appendix 1;

.7 Any contract relating to the disposal or lease of land and buildings where offers have been invited and a closing date has been fixed. Offers relating to property will be invited and accepted in accordance with the procedures set out in Appendix 2.

6.0/

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6.0 Significant Trading Operations

6.1 The Council may arrange for work to be carried out by one of its Significant Trading Operations ("STO") where, the Building Construction Contract Unit is satisfied that such an arrangement represents best value.

6.2 Prior to any work being awarded to a STO the STO must submit a written statement detailing the price or rates to be charged to the Building Construction Contract Unit.

6.3 For the purpose of preparing a written statement a STO may obtain estimates/quotations from the suppliers of materials or sub-contractors. However an STO may not wholly sub-contract any work awarded to it.

6.4 In the event of the Building Construction Contract Unit accepting a written statement by a STO for work which will necessitate the purchase of materials or the use of the sub-contractors then the STO will arrange for tenders to be obtained which tenders will be invited in accordance with the Council's procedures for inviting and opening tenders.

6.5 STOs need not follow the procedures for inviting and opening tenders in the following circumstances:-

.1 where the Council has made arrangements for a "Framework Agreement" or "Call-Off Contract" in respect of the materials or services which are required.

.2 where the nature or quantity of the materials or services required is such that it would not be appropriate/reasonable to make use of a "Framework Agreement" or "Call-Off Contract" and the date by which the works have to be completed makes it impractical to use the normal procedures for inviting and opening tenders.

6.6 Where the circumstances set out in 6.5.1 apply then the relevant STO Manager may place an order direct with a supplier in accordance with the procedure established by the Council for the operation of "Framework Agreements".

PART2/

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PART 2

PROCEDURES FOR AWARDING SERVICE CONTRACTS

7.0 Contracts with a Value Below £25,000

7.1 Tenders or quotations need not be invited in respect of contracts which have a value of less than £1,500.

7.2 Where the value of a contract is £1,500 or more but less than £10,000 a Head of Service may award the contract following receipt of a single quotation provided they are satisfied that it is appropriate to do so.

7.3 In the circumstances set out in paragraphs 7.1 and 7.2 the Officer awarding the contract must be able to demonstrate that the award represents best value for the Council.

7.4 In respect of contracts with a value of £10,000 or more but less than £25,000 four quotations are required. A minimum of four tenderers should be invited to submit a quotation for each contract unless the Head of Service is satisfied and has approved in writing that the nature of the contract is such that it is not practical or reasonable to invite quotations from more than three tenderers.

7.5 When more than one tenderer is invited to submit a quotation then a closing date and time should be fixed and arrangements should be made for sealed quotations to be received. In exceptional cases, where it can be demonstrated that time is of the essence, then tenderers may be invited to submit bids by fax or telephone. When bids are made by fax or telephone they should be documented and signed by the officer inviting the bid and countersigned by a supervising officer. Such bids should be confirmed in writing as soon as possible.

7.6 Where any Service requires to award contracts with a value below £25,000 on a regular basis (i.e. expenditure in any year exceeds £100,000) then the relevant Head of Service must prepare a detailed procedure to be followed by its staff which procedure will require to be approved by the Head of Finance and Asset Management.

7.7/

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7.7 Each Head of Service must advise the Head of Service Support on every occasion when a contract is awarded. This includes occasions where the contract has a value of less than £1,500 and a quotation has not been obtained. The style of award notice in Appendix 6 should be used for this purpose.

7.8 A Service may not award serial contracts or contracts which have similar characteristics where the aggregate value of such contracts in any 3 month period exceeds £30,000.

8.0 Contracts with a Value of £25,000 and above

8.1 Tenders and quotations for the provision of services may be invited by a Head of Service where it is within their remit and when they are satisfied, after proper project appraisal, that the cost of the contract can be met within the approved budget for the Service.

8.2 If the value of the contract is £25,000 or more then tenders should be invited in accordance with one of the following procedures:-

.1 by maintaining an Approved or standing list of potential tenderers and inviting a number of them to tender; or

.2 by assembling a list of tenderers for a particular contract and inviting them all to tender; or

.3 by requesting the Procurement and Supplies Manager to invite tenders on their behalf.

8.4 If the value of the contract is £150,000 or more then Tenders require to be invited in accordance with the procedures set out in the E.C.'s Services Directive.

9.0 Approved List of Tenderers - Standing List

9.1 When a Head of Service decides to keep an Approved or standing list of tenderers, invitations to tender should be limited to tenderers selected from those whose names appear on that list.

9.2 Each list shall:-

.1 be compiled and maintained by the relevant Head of Service;

.2 contain the names of all tenderers who are approved by the relevant Head of Service; and

.3/

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.3 indicate whether a tenderer whose name is included on the list is approved for all contracts or only for contracts of specified categories, values or amounts.

9.3 No tenderer included in a list shall have their tender accepted unless all of the following conditions are met:-

.1 their technical capability has been investigated, documented, and found to be satisfactory by the relevant Head of Service;

.2 they have provided evidence of compliance with Health and Safety and Equal Opportunity legislation; and

.3 their financial standing, including evidence of adequate insurance cover, has been investigated and documented to the satisfaction of the Head of Finance and Asset Management.

9.4 When compiling a list of tenderers to be invited to submit a tender a Head of Service should endeavour to ensure that at least four tenderers are invited to bid and that these include one tenderer which has performed similar work for the Council in a satisfactory way in the past and one tenderer which has an operating base within Fife or in close proximity to Fife.

10.0 Approved List of Tenderers - Particular Contract

10.1 When a Head of Service decides to prepare a list of tenderers for a particular contract, notice shall be given in one or more newspapers circulating in the Council area and in such trade journals as the relevant Head of Service may consider appropriate setting out particulars of the contract into which the Council wish to enter and inviting interested parties to apply within a specified period (being a period of not less than 14 days, unless owing to exceptional circumstances the Head of Service concerned otherwise directs) for inclusion in the list of possible tenderers.

10.2 No tenderer shall be included in a list unless:-

.1 their technical capability has been investigated and found to be satisfactory by the relevant Head of Service and they have provided evidence of compliance with Health and Safety and Equal Opportunity legislation; and

.2 their financial standing, including evidence of adequate insurance cover, has been investigated and documented to the satisfaction of the Head of Finance and Asset Management.

11.0/

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11.0 Liaison with Head of Service Support

11.1 When a Head of Service intends to invite a tender, then prior to the invitation being issued, they must complete a Notification of Intention to Invite Tender Form (set out in Appendix 3) and submit this to the Head of Service Support.

12.0 Form and Content of Tenders

12.1 Tender documents shall be prepared and issued by the relevant Head of Service and every set of tender documents shall contain the information set out in Appendix 4. Where it is considered that it is not necessary or appropriate to include any of the information set out in Appendix 4 then this can be omitted where the commissioning Head of Service is satisfied that it is appropriate to do so.

12.2 Tenders will be prepared and invited in accordance with the procedures set out in Appendix 5.

13.0 Return of Tenders

13.1 All tenders will be returned to the Head of Law and Administration or the Procurement and Supplies Manager at the address specified in the tender documents.

14.0 Late Tenders

14.1 No tenders received after the closing date and time will be considered.

15.0 Opening of Tenders

15.1 All tenders relating to the same contract will be opened at the same time as soon as practicable after the time and date specified for the return of tenders. Tenders will be opened in the presence of one officer from the Law and Administration or Service Support, Procurement and Supplies Services and, if available, one officer from the Service inviting the tender. Elected members will be made aware of the tender opening and will be entitled, but shall not be obliged, to attend. No employee or member who has a direct or indirect pecuniary interest in the tender concerned may attend the opening of tenders. The procedure to be followed at the opening of tenders is set out in Appendix 5.

16.0/

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16.0 Confidentiality of Tenders

16.1 Between the last date and time for the receipt of tenders and the date on which a decision is taken as to which, if any, is to be accepted, the relevant Head of Service may instruct members of staff, or consultants, to contact the tenderer in cases where such contact is necessary to confirm or clarify the terms of the tender or to effect any necessary adjustments. No information concerning any tender other than their own will be disclosed to the tenderer so contacted. A full written record shall be kept of all such contacts and shall be retained with the original tender.

16.2 During the period between the opening of the tenders and the stage where the content of them is required to be publicly known an absolute obligation of preserving secrecy will rest on members and officers of the Council.

17.0 Checking of Tenders

17.1 The appropriate officer will examine all tenders for arithmetical errors.

17.2 A tenderer who submits a qualified tender should be given the opportunity to withdraw the qualification. If the tenderer fails to do so, the whole tender should be rejected if it is considered that such qualification affords the tenderer an unfair advantage over other tenderers.

17.3 Where a tender has been the subject of post-tender negotiations full details of such activity must be formally documented by the appropriate officer(s) involved and this information must be reported to the Head of Service responsible in advance of acceptance of a tender.

18.0 Acceptance of Tenders

18.1 All tenders must be accepted by the Head of Law and Administration or the Head of Service Support.

18.2 The Head of Law and Administration or the Head of Service Support may accept any tender invited in respect of Services if:-

.1 it is the lowest tender or the most economically advantageous tender; and

.2 the cost is within the approved budget for that year for the Service in respect of which the tender was invited.

19.0/

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19.0 Termination of Contracts

19.1 No contract may be terminated on behalf of the Council without the prior approval of the Head of Service Support and the Head of Law and Administration.

20.0 Extension of Contracts

20.1 Where permitted by the Contract Conditions the Head of Service Support or the Head of Law and Administration may, following a request from the Commissioning Head of Service and where satisfied that it is appropriate to do so extend the duration of an existing annual or term contract.

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PART 3

PROCEDURES FOR AWARDING SUPPLIES CONTRACTS

21. Authority to Invite Tenders and Quotations

21.1 All Supplies Contracts must be awarded by Competitive Tendering.

21.2 All tenders or quotations for the supply of goods, materials, vehicles and plant other than those invited by one of the Council's Significant Trading Operations must be invited by the Procurement and Supplies Manager.

21.3 Where expenditure has been clearly identified and approved in the capital programme or revenue budget for a Service then tenders may be invited without the necessity of obtaining further committee approval.

22. Invitations to Tender

22.1 In respect of all supplies contracts (or service contracts where the Procurement and Supplies Manager has been requested to invite tenders on behalf of the commissioning Service) invitations to tender shall be extended by assembling a list of tenderers for a particular contract and inviting them all to tender. Such a list shall include:-

.1 all tenderers who have expressed an interest in a particular contract;

.2 tenderers identified by the commissioning service for a particular contract; and

.3 tenderers identified through research appropriate to the particular contract.

22.2 In assembling a list of tenderers for a particular contract the Procurement and Supplies Manager will satisfy himself that adequate publicity has been given to meet the statutory obligations of the Council and ensure adequate competition.

22.3 No tenderer shall have their tender accepted unless all of the following conditions are met:-

.1 their technical capability has been investigated, documented, and found to be satisfactory by the Procurement and Supplies Manager;

.2 they have provided evidence of compliance with Health and Safety and Equal Opportunity legislation; and

.3/

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.3 their financial standing, including evidence of adequate insurance cover, has been investigated and documented to the satisfaction of the Head of Finance and Asset Management.

22.4 When compiling a list of tenderers to be invited to submit a tender the Procurement and Supplies Manager should endeavour to ensure that at least four tenderers are invited to bid.

23.0 Open Tendering/Seeking Expressions of Interest

23.1 When the Procurement and Supplies Manager decides that the opportunity to tender shall not be limited but shall be open to all parties who may wish to tender, or where expressions of interest in a particular contract are being sought, notice may be given in one or more newspapers circulating in the Council area and in such trade journals as the relevant Head of Service may consider appropriate setting out particulars of the contract into which the Council wish to enter and inviting interested parties to apply within a specified period (being a period of not less than 14 days, unless owing to exceptional circumstances the Head of Service concerned otherwise directs) for inclusion in the list of parties to be invited to tender.

24.0 Return of Tenders

24.1 All tenders will be returned to the Head of Law and Administration or the Procurement and Supplies Manager at the address specified in the tender documents.

25.0 Late Tenders

25.1 No tenders received after the closing date and time will be considered.

26.0 Opening of Tenders

26.1 All tenders relating to the same contract will be opened at the same time as soon as practicable after the time and date specified for the return of tenders. Tenders will be opened in the presence of one officer from the Law and Administration Service and, if available, one officer from the Service inviting the tender or two officers from the purchasing team and one officer from the administration section of Procurement and Supplies Service inviting the tender. No employee or member who a direct or indirect pecuniary interest in the tender concerned may attend the opening of tenders. The procedure to be followed at the opening of tenders is set out in Appendix 5.

27.0/

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27.0 Confidentiality of Tenders

27.1 Between the last date and time for the receipt of tenders and the date on which a decision is taken as to which, if any, is to be accepted, the relevant Head of Service or the Procurement and Supplies Manager may instruct members of staff, or consultants, to contact the tenderer in cases where such contact is necessary to confirm or clarify the terms of the tender or to effect any necessary adjustments. No information concerning any tender other than their own will be disclosed to the tenderer so contacted. A full written record shall be kept of all such contacts and shall be retained with the original tender.

27.2 During the period between the opening of the tenders and the stage where the content of them is required to be publicly known an absolute obligation of preserving secrecy will rest on members and officers of the Council.

28.0 Checking of Tenders

28.1 The appropriate officer will examine all tenders for arithmetical errors.

28.2 A tenderer who submits a qualified tender should be given the opportunity to withdraw the qualification. If the tenderer fails to do so, the whole tender should be rejected if it is considered that such qualification affords the tenderer an unfair advantage over other tenderers.

28.3 Where a tender has been the subject of post-tender negotiations full details of such activity must be formally documented by the appropriate officer(s) involved and this information must be reported to the Head of Service responsible in advance of acceptance of a tender.

29.0 Acceptance of Tenders

29.1 All tenders must be accepted by the Head of Law and Administration or the Head of Service Support.

29.2 The Head of Law and Administration or the Head of Service Support may accept any tender invited in respect of supplies if:-

.1 it is the lowest tender or the most economically advantageous tender; and

.2 the cost is within the approved estimates of expenditure for that year for the Service in respect of which the tender was invited.

30.0/

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30.0 Termination of Contracts

30.1 No contract may be terminated on behalf of the Council without the prior approval of the Head of Service Support and the Head of Law and Administration.

31.0 Extension of Contracts

31.1 Where permitted by the Contract Conditions the Head of Service Support or the Head of Law and Administration may, following a request from the Procurement and Supplies Manager and where satisfied that it is appropriate to do so extend the duration of an existing annual or term contract.

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PART 4

PROCEDURES FOR AWARDING WORKS CONTRACTS

32.0 Authority to Invite Tenders and Quotations

32.1 Tenders and Quotations for the execution of works may only be invited by the Head of Transportation Services or the Building Construction Contract Unit. With the exception of annual contracts tenders may only be invited when the Head of Transportation Services or the Building Construction Contract Unit is satisfied, after proper project appraisal, that the cost of the contract can be met within the approved budget for the Project.

32.2 Where expenditure has been clearly identified and approved in the capital programme or revenue budget for a Service then tenders may be invited without the necessity of obtaining further committee approval.

33.0 Invitations to Tender

33.1 Invitations to tender shall be extended by one of the following procedures:-

.1 by maintaining an Approved or standing list of potential tenderers and inviting a number of them to tender; or

.2 by assembling a list of tenderers for a particular contract and inviting them all to tender.

34.0 Approved List of Tenderers - Standing List

34.1 When the Head of Transportation Services or the Building Construction Contract Unit decides to keep an Approved or standing list of tenderers, invitations to tender should be limited to tenderers selected from those whose names appear on that list.

34.2 Each list shall:-

.1 be compiled and maintained by the Head of Transportation Services or the Building Construction Contract Unit;

.2 contain the names of all tenderers who are approved by the Head of Transportation Services or the Building Construction Contract Unit; and

.3 indicate whether a tenderer whose name is included on the list is approved for all contracts or only for contracts of specified categories, values or amounts.

34.3/

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34.3 No tenderer included in a list shall have their tender accepted unless all of the following conditions are met:-

.1 their technical capability has been investigated, documented, and found to be satisfactory by the Head of Transportation Services or the Building Construction Contract Unit;

.2 they have provided evidence of compliance with Health and Safety and Equal Opportunity legislation; and

.3 their financial standing, including evidence of adequate insurance cover, has been investigated and documented to the satisfaction of the Head of Finance and Asset Management.

34.4 When compiling a list of tenderers to be invited to submit a tender the Head of Transportation Services or the Building Construction Contract Unit should endeavour to ensure that at least four tenderers are invited to bid and that these include one tenderer which has performed similar work for the Council in a satisfactory way in the past and one tenderer which has an operating base within Fife or in close proximity to Fife.

35.0 Approved List of Tenderers - Particular Contract

35.1 When the Head of Transportation Services or the Building Construction Contract Unit decides to prepare a list of tenderers for a particular contract, notice shall be given in one or more newspapers circulating in the Council area and in such trade journals as the Head of Transportation Services or the Building Construction Contract Unit may consider appropriate setting out particulars of the contract into which the Council wish to enter and inviting interested parties to apply within a specified period (being a period of not less than 14 days, unless owing to exceptional circumstances the Head of Transportation Services or the Building Construction Contract Unit concerned otherwise directs) for inclusion in the list of possible tenderers.

35.2 No tenderer shall be included in a list unless

.1 their technical capability has been investigated and found to be satisfactory by the Head of Transportation Services or the Building Construction Contract Unit and they have provided evidence of compliance with Health and Safety and Equal Opportunity legislation; and

.2 their financial standing, including evidence of adequate insurance cover, has been investigated and documented to the satisfaction of the Head of Finance and Asset Management.

36.0/

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36.0 Form and Content of Tenders

36.1 Tender documents shall be prepared and issued by the Head of Transportation Services or the Building Construction Contract Unit and every set of tender documents shall contain the information set out in Appendix 4. Where it is considered that it is not necessary or appropriate to include any of the information set out in Appendix 4 then this can be omitted where the Head of Transportation Services or the Building Construction Contract Unit is satisfied that it is appropriate to do so.

36.2 Tenders will be prepared and invited in accordance with the procedures set out in Appendix 5.

37.0 Return of Tenders

37.1 All tenders will be returned to the Head of Law and Administration at the address specified in the tender documents.

38.0 Late Tenders

38.1 No tenders received after the closing date and time will be considered.

39.0 Opening of Tenders

39.1 All tenders relating to the same contract will be opened at the same time as soon as practicable after the time and date specified for the return of tenders. Tenders will be opened in the presence of one officer from the Law and Administration Service and one officer from Head of Transportation Services or the Building Construction Contract Unit. Elected members will be made aware of the tender opening and will be entitled, but shall not be obliged, to attend. No employee or member who has a direct or indirect pecuniary interest in the tender concerned may attend the opening of tenders. The procedure to be followed at the opening of tenders is set out in Appendix 5.

40.0 Confidentiality of Tenders

40.1 Between the last date and time for the receipt of tenders and the date on which a decision is taken as to which, if any, is to be accepted, the Head of Transportation Services or the Building Construction Contract Unit may instruct members of staff, or consultants, to contact the tenderer in cases where such contact is necessary to confirm or clarify the terms of the tender or to effect any necessary adjustments. No information concerning any tender other than their own will be disclosed to the tenderer so contacted. A full written record shall be kept of all such contacts and shall be retained with the original tender.

40.2/

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40.2 During the period between the opening of the tenders and the stage where the content of them is required to be publicly known an absolute obligation of preserving secrecy will rest on members and officers of the Council.

41.0 Checking of Tenders

41.1 The appropriate officer will examine at least the three lowest tenders for arithmetical errors. Where errors of accuracy or completeness are detected they will be dealt with in accordance with "Alternative 2 (Scotland)" of the NJCC Code of Practice for Single Stage Selective Tendering current at the time of tender issue or an appropriate equivalent procedure. Where appropriate, the revised arithmetically corrected figure will become the tender amount.

41.2 The three lowest tenders, determined in ascending order on the result of the foregoing examination, will then be examined for the purpose of identifying technical, professional and other non-arithmetical errors in order to establish which tender represents the best value for money. For this purpose the following procedure will apply:-

.1 J.C.T. Tenders - examination of tenders will be carried out in accordance with the principles of the Code of Procedure for Single Stage Selective Tendering published for the National Joint Consultative Committee for Building as is in force at the date of Tender Issue.

.2 I.C.E. Tenders - examination of tenders will be carried out in accordance with Part 5 of Guidance on the Preparation, Submission and Consideration of Tenders for Civil Engineering Contracts produced by the I.C.E. Conditions of Contracts Standing Joint Committee as is in force at the date of Tender Issue.

.3 Other Tenders - examination will be carried out in accordance with guidance issued by the Head of Transportation Services or the Building Construction Contract Unit.

41.3 A tenderer who submits a qualified tender should be given the opportunity to withdraw the qualification. If the tenderer fails to do so, the whole tender should be rejected if it is considered that such qualification affords the tenderer an unfair advantage over other tenderers.

41.4 Where a tender has been the subject of post-tender negotiations full details of such activity must be formally documented by the appropriate officer(s) involved and this information must be reported to the Head of Transportation Services or the Building Construction Contract Unit responsible in advance of acceptance of a tender.

42.0/

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42.0 Acceptance of Tenders

42.1 All tenders must be accepted by the Head of Law and Administration or the Head of Service Support.

42.2 The Head of Law and Administration may accept any tender in respect of a contract for works if:-

.1 it is the lowest tender; or the most economically advantageous tender;

.2 it is within the approved estimates of expenditure for that year for the Service which invited the tender; and

.3 the appropriate committee has previously approved the awarding of the contract following consideration of a report which report detailed

the purpose of the contract, its estimated duration and value and the basis on which tenders would be or were invited and evaluated. This provision does not apply to annual contracts.

42.3 Where it is proposed to accept a tender which does not meet all of the criteria set out in 42.2 then the tender may only be accepted after the appropriate committee has approved its acceptance following consideration of a written report which details why the criteria need not be met.

43.0 Termination of Contracts

43.1 No contract may be terminated on behalf of the Council without the prior approval of the Head of Service Support and the Head of Law and Administration.

44.0 Extension of Contracts

44.1 Where permitted by the contract conditions the Head of Service Support or the Head of Law and Administration may, following a request from Head of Transportation Services or the Building Construction Contract Unit and where satisfied that it is appropriate to do so extend the duration of an existing annual or term contract.

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CONTRACT STANDING ORDERS APPENDIX 1

PROCEDURES FOR PROCUREMENT OF SOCIAL CARE SERVICES

Introduction

These are the Procedures referred to in Contract Standing Order 5 relating to the procurement of social care services by the Council in its capacity as a social work authority. Notwithstanding the terms of Contract Standing Order 5 the following Contract Standing Orders will apply to the operation of these procedures:- 4, 9.2, 9.3 and 18.

Authorised Providers

Rule 1

The Head of Social Work will prepare a List of Authorised Providers for social care services. The terms of Contract Standing Order 9.2 will apply to the preparation of this list.

Rule 2

Subject to the requirement of Contract Standing Order 9.2 and Rule 1 above, the Head of Social Work may amend the List of Authorised Providers for social care services at any time and shall report such amendments to the appropriate Committee on a quarterly basis.

Authority to Negotiate Services

Rule 3

Where an authorised provider initiates an offer to provide a social care service, the Head of Social Work, following consultation with the Head of Service Support, is authorised to receive, negotiate and accept a "call off" contract, provided that such contracts are approved by the Head of Law and Administration and there is no commitment on the Council to use any given level of service. The Head of Social Work shall report to the appropriate Committee on a quarterly basis those "call off" contracts negotiated with authorised providers.

Rule 4/

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Rule 4

The Head of Social Work following consultation with the Head of Service Support may also enter into negotiations with one or more authorised providers to develop social care services in one or more of the following circumstances, namely if:-

(1) In the opinion of the Head of Social Work the needs of the individual(s) concerned would be best met by a particular provider;

(2) In the opinion of the Head of Social Work there is only one provider capable of delivering the service to meet the needs of the individual(s) concerned;

(3) The nature of the service is such that it should not or cannot be adequately specified in advance because of the nature of the social care needs of the individual(s) concerned;

(4) There are special circumstances such as ownership of land or property, geographic locations or particular skills or experience of providers of social care which limit the choice to one provider.

Rule 5

In the case of those services negotiated under Rule 3, the Head of Law and Administration and the Head of Service Support shall be authorised to enter into appropriate contracts. The Head of Social Work shall be required to provide to the appropriate committee a list of such contracts on a quarterly basis.

Rule 6

In the case of those services negotiated under Rule 4 the Head of Social Work shall be authorised to enter into appropriate contracts provided the contracts have been approved by the Head of Law and Administration.

Agreements Relating to Services

Rule 7

(1) The Head of Social Work shall evaluate all offers to provide services on the basis of:

(a) the assessed needs which the service aims to meet;

(b) the match between assessed needs and the services proposed;

(c)/

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(c) the quality of the services proposed; and

(d) the price for the services.

(2) The Head of Social Work shall select the service provider, following consultation with the Head of Service Support, which is the most cost effective to the Council, where more than one provider is identified as offering services which are of an acceptable quality and equally capable of meeting assessed needs.

(3) The Head of Law and Administration shall accept said offer to provide services if satisfied with the terms thereof.

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CONTRACT STANDING ORDERS APPENDIX 2

PROCEDURES FOR INVITING AND OPENING OFFERS

RELATING TO THE SALE/LEASE OF PROPERTY

INTRODUCTION

1. In all cases where offers for the sale or lease of Council property have been invited and a closing date has been fixed the procedures set out below must be followed.

INVITATION TO SUBMIT OFFER

2. When inviting offers, it is important that uniform instructions are given, and the following information must therefore be included in all instructions:

(a) Interested parties must be instructed to return offers in the official envelope provided. Each offer must be returned in a separate envelope.

(b) If an interested party decides not to offer, they must be asked not to use the offer envelope to register this decision, as this can lead to confusion at the offer opening stage.

(c) Interested parties must be informed that it is their responsibility to have the offer delivered to the Estates Practice by 12 noon on the designated day. Under no circumstances will a late offer be considered, and any offers arriving after the specified time will be returned unopened. It should also be noted that offers in the form of a faxed documents or offers submitted by E-Mail cannot be accepted.

3. It is the responsibility of the Estates Practice to send out with the sale particulars an official return envelope. This envelope must not identify the interested party by name, but must have a unique reference number marked in the relevant place. This reference will correspond with those used on the offer return notification and record form (see next section) and the Estates Practice will keep a record of the reference numbers and the relevant interested parties.

OFFER/

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OFFER RETURN NOTIFICATION AND RECORD

4. The Estates Practice must prepare an offer return form (copy attached to these procedures) for every sale. The unique reference numbers referred to in paragraph 3 above must be added. If more than 14 parties have taken out particulars, a continuation sheet should be used. It is important that continuation sheets are numbered in the relevant place (e.g. page 1 of 3, page 2 of 2, etc.).

PROCEDURE FOR OPENING OFFERS

5. The Estates Practice will collect offers when received and stamp the envelopes with the date and time of receipt. Any offers arriving after the specified time will be clearly marked with the date and time of receipt and the words "late offer". The representative will also enter the date and time of receipt in the relevant column on the offer return form. If an interested party has decided not to submit an offer, or their offer is late, the words "no offer" or "late offer", as appropriate, should be entered on the form.

6. The Estates Practice will, as soon as possible after the closing of offers, take the offer return form and all offers received to the Legal Services Manager or his/her representative. The Legal Services representative will open the offers in the presence of the Estates Practice representative. Any late offers will not be opened, however.

7. The representative of the Legal Services Manager will sign the last page of each offer which is opened and the date of opening will also be marked. In addition, the offer return form should be completed and signed by the Legal Services representative and by the representative of the Estates Practice.

8. The representative of the Estates Practice should take a copy of the offer return form with the offers uplifted by him/her for evaluation. The original offer return form will be retained by the Legal Services representative who will also return any late offers unopened with a standard letter explaining why they are being returned.

Head of Law and Administration,

February, 2002.

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NO. OF OFFERS RECEIVED

NO. OF TIMEOUS OFFERS

NO. OF LATE OFFERS

THE TIMEOUS OFFERS WERE OPENED BY THE UNDERSIGNED:

Legal Services Date Time

THE TIMEOUS OFFERS WERE OPENED BY AND PASSED TO THE UNDERSIGNED FOR EVALUATION:

Estates Practice Date Time

Persons witnessing the opening of offers are reminded that all information contained within the offers is confidential to the Council and must not be disclosed.

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CONTRACT STANDING ORDERS APPENDIX 3

TO: Head of Service Support

FROM: Head of Service

NOTIFICATION OF INTENTION TO INVITE TENDER

TYPE OF CONTRACT CONDITIONS

BASIS ON WHICH TENDERS WILL BE INVITED

TENDERS TO BE RETURNED TO

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CONTRACT STANDING ORDERS APPENDIX 4

CONTENT OF TENDER DOCUMENTS

In terms of Contract Standing Orders 12 and 36 the following information must be contained in all tender documents issued by Fife Council:-

(a) the nature and purpose of the contract for which tenders are invited;

(b) the last date and the time (in all cases being 12 noon) by which tenders should be lodged;

(c) the Officer to whom and the address to which tenders are to be returned;

(d) that the Council reserves the right to accept a tender other than the lowest tender or not to accept any tender at all;

(e) details of the specification relating to the contract. Where there is an appropriate European Standard current at the date of the tender, the specification must require the tenderer to meet the requirements of the European Standard. Where there is no such European Standard then if there is an equivalent International Standard that shall be used. In the absence of either a European or an International Standard an appropriate British Standard "or equivalent" shall be used;

(f) provision for the insertion by the tenderer of the price to be paid with a statement of discounts or other deductions;

(g) the date of commencement of the contract or provision for the insertion of such date by the tenderer, as appropriate;

(h) the time or times within which the contract is to be performed or provision for the insertion of such information by the tenderer, as appropriate;

(i) that the Council will be entitled to cancel the contract and to recover from the tenderer the amount of any loss resulting from such cancellation if the tenderer or their representative (whether with or without the knowledge of the tenderer) shall have practised collusion in tendering for the contract or any other contract with the Council or shall have employed any corrupt or illegal practices either in the obtaining or execution of the contract or any other contract with the Council;

(j)/

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(j) that the tenderer shall be prohibited from transferring or assigning directly or indirectly, to any person or persons whomsoever, any portion of the contract without the written permission of the Council and that sub-letting of any part of the contract, except to the extent permitted in writing by the relevant Head of Service, shall be prohibited;

(k) in the case of contracts where the date of completion or the date of delivery is of importance, that specified liquidated damages will be payable for failures to comply with the date of completion or delivery;

(l) that before entering into a contract, the tenderer shall give an assurance, in writing, that to the best of their knowledge and belief they have complied with all statutory requirements in respect of ensuring equal opportunity in employment;

(m) that before entering into a contract, the tenderer shall given an assurance, in writing, that to the best of their knowledge and belief they are not unlawfully discriminating within the meaning and scope of the equal opportunity requirements;

(n) that the contract will be subject to the law of Scotland;

(o) in the case of contracts where the Head of Finance and Asset Management deems it appropriate in terms of the Council's Financial Regulations, tenderers shall be required to enter into a Bond with a Bank or Insurance Company for a sum as stipulated by the Head of Finance and Asset Management for the due performance of the contract and/or in such circumstances as the Head of Finance and Asset Management may decide, a Parent Company guarantee;

(p) that the tenderer shall be adequately insured with an approved Insurance Company in respect of Employers Liability, Public/Products Liability and/or Professional Indemnity as may be required. Copies of the relevant policies and premium renewal receipts shall be produced by the tenderer whenever required for inspection by the Council;

(q) that the tenderer shall comply with Health and Safety legislation whilst working on or within the confines of any Council properties;

(r) that all contracts made with the Council shall provide that the conditions and obligations thereof to be observed by tenderers shall likewise apply to any permitted sub-contractor and that a tenderer shall be responsible for the observance of such conditions by any sub-contractor.

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CONTRACT STANDING ORDERS APPENDIX 5

PROCEDURES FOR INVITING AND OPENING TENDERS

INTRODUCTION

1. The circumstances in which tenders must be invited for proposed contracts are set out in the Council's Standing Orders on contracts. In all cases where tenders have to be obtained, the procedures set out below must be followed.

FORMAT OF TENDER

2. When preparing contract documents, it should be remembered that after having been opened a tender will be photocopied. It is therefore important that the page or pages making up the actual tender can be easily identified.

3. In respect of every proposed contract, where the value of the tender (or a significant part of it - i.e. more than 10%) cannot be expressed as a fixed amount, then the issuing Service must ensure that the tender page or pages are designed to facilitate the evaluation process by containing sufficient information as will allow the total cost of the tender to be calculated.

4. It is important that it is clear which part of the tender has to be signed by the officer present at the opening. All tenders should therefore contain a section which is marked "FOR FIFE COUNCIL USE ONLY" with the following underneath:-

................................................ Officer ......................................... Date

INVITATIONS TO TENDER

5. When inviting tenders, it is important that uniform instructions are given, and the following information must therefore be included in all instructions:

(a) Tenderers must be instructed to return tenders in the official envelope provided. If the tender is too bulky for the envelope, the envelope must be clearly and firmly attached to the outside of the tender. Each tender must be returned in a separate envelope.

(b)/

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(b) If a potential tenderer decides not to tender, they must be asked not to use the tender envelope to register this decision, as this can lead to confusion at the tender opening stage.

(c) Tenderers must be informed that it is their responsibility to have the tender delivered to the specified Council office by 12 noon on the designated day. Under no circumstances will a late tender be considered, and any tenders arriving after the specified time will be returned unopened. It should also be noted that tenders in the form of a faxed document cannot be accepted.

6. It is the responsibility of the Service issuing tenders to send out with the tender documentation an official tender return envelope. This envelope, available from the Procurement Supplies and Printing Manager, must not identify the tenderer by name, but must have a unique reference number marked in the relevant place. This reference will correspond with those used on the tender return notification and record form (see next section) and the issuing Service will keep a record of the reference numbers and the relevant tenderers.

TENDER RETURN NOTIFICATION AND RECORD

7. The Service inviting tenders must complete a tender return form (copy attached to these procedures) for every tendering exercise, and send it to the Head of Law and Administration as far in advance of the tendering opening date as possible. At least 3 days' notice is required, unless there are exceptional circumstances.

8. In all cases, a contact name and extension number within the issuing Service must be provided on the form in case of queries, and also so that the person can be contacted to attend the opening of the tenders.

9. A full description of the contract, the location to which tenders have to be returned and the tender return date must be included on the form.

10. The unique reference numbers referred to in paragraph 6 above must also be added. If more than 14 tenderers have been invited to tender, a continuation sheet should be used. It is important that continuation sheets are numbered in the relevant place (e.g. page 1 of 3, page 2 of 2, etc.).

11. In the event that tenders are invited in circumstances where the value of the tender (or a significant part of it i.e. more than 10%) cannot be expressed as a fixed amount, the issuing Service should signify this by deleting the column headed/

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headed "amount (if applicable)". In such cases, the issuing Service must ensure that the tender page or pages are designed to comply with the requirements of paragraph 3 above.

PROCEDURE FOR OPENING TENDERS

12. The Employee to whom the tender return notification and record has been passed will ensure that the relevant Office Supervisor is aware of the date on which tenders are due back. The Office Supervisor will contact the relevant Head of Service with a view to opening tenders after the time by which they should be received.

13. An Employee will collect tenders when received and stamp them with the date and time of receipt. Any tenders arriving after the specified time will be clearly marked with the time of receipt and the words "late tender".

14. If a tenderer has decided not to submit a tender, or their tender is late, the relevant box in the column headed "Date/Time of Receipt" will be marked "no tender" or "late tender", as appropriate. This will be done by the Employee prior to handing over the tenders to the Office Supervisor.

15. The Office Supervisor will collect from the Employee the tenders and will arrange to open them in the presence of a representative of the Service that invited the tenders. Late tenders should be retained separately. The Service representative will sign the relevant page of each tender opened and the date of opening will also be inserted. In addition, the tender return notification form should be completed and signed by the Service representative and by the Office Supervisor.

16. After the tenders have been opened and signed and the tender return notification form has been completed and signed by those present at the tender opening, the Office Supervisor will ensure that 2 photocopies of each tender return notification form are made. The Office Supervisor will arrange for the Service representative to uplift the opened tenders. The Service representative should take a copy of the tender return notification form with the tenders. The original tender return notification form will be retained by the Office Supervisor. The second copy of the tender return notification form will be forwarded to the Head of Service Support.

17./

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17. Where the value of the tender is not expressed as a fixed amount and cannot be recorded in the column headed "Amount" then the Office Supervisor will ensure that a photocopy is made of each opened tender. The photocopy of the tender will be forwarded to the Head of Service Support with the tender return notification form.

18. In the case of late tenders, the Employee will contact the issuing Service and obtain the name of the tenderer(s). The late tenders will then be returned unopened with a standard letter explaining why they are being returned.

Head of Law and Administration,

February, 2002.

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NO. OF TENDERS RECEIVED

NO. OF TIMEOUS TENDERS

NO. OF LATE TENDERS

THE TIMEOUS TENDERS WERE OPENED AND PASSED TO THE RELEVANT SERVICE FOR EVALUATION BY THE UNDERSIGNED: DATE TIME

Service Law and

Issuing Tender Administration

Persons witnessing the opening of tenders are reminded that all information contained within the tenders is confidential to the Council and must not be disclosed.

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APPENDIX 6

- 36 -

CONTRACT STANDING ORDERS

TO: Head of Service Support

FROM: Head of Service

NOTIFICATION OF AWARD OF MINOR CONTRACT

_________________________