UK bus stops

Procurement

This page is not a formal source of advice on procurement. It just points to when you may need advice and where you might get it. The Office of Government Commerce would be a good place to look for definite advice.

Public sector funding is covered by legislation which specifies how contracts must be put out to tender. Local authority transport departments are familiar with this as the procurement of bus services is covered by the 1985 Transport Act and EU legislation.

The reasons for procurement procedures are not only to prevent the misuse of public funds but also to ensure that high quality services are delivered and best value for money obtained.

If you do not follow the rules an unsuccessful tenderer may challenge your final decision and you may have to tender all over again, and perhaps pay for any abortive work with the contractor you appointed.

Does this apply to Traveline?

If a project is in receipt of more that 50% public funds, it would be covered by the EU legislation.

Thresholds apply. Contracts which exceed £145,000 (net of VAT) for instance for software and call centre services are likely to be subject to the EU legislation. The threshold has to take account of all the costs over the life of the contract - so this includes softwware maintenance, support etc. The longer the contract the greater the cost and very quickly you get past the threshold.

Below these thresholds the local authority providing the funding may well have their requirements for procurement.

Procurement does not only apply to the price paid. It usually includes Health and Safety, Environmental issues, the financial security of the supplier and provides a framework in which tenders can be invited and evaluated.

Is it difficult?

It may take some getting used to but the documention guides you through the process in a way that helps you to specify what you want to achieve and score the competing tenders. Most local authorities have procurement teams who may assist.

How long does it take?

You should allow at least 3 months minimum but probably longer. There are procedures to speed this up but they can only be used in some circumstances and you have to give yourself time to produce your tender specification.