Doing business with us

Tendering and contracting procedures

Guide to tendering

The prospects of tendering with a large and complex organisation like the United Lincolnshire Hospitals NHS Trust can be daunting for some companies who are new to the process. This guide to tendering explains what is involved in an easy to understand way.

The trust has to openly advertise all contract opportunities where the value of the contract is likely to be above the threshold as follows:

EU Thresholds

The EU thresholds (from the 1st January 2008) are as follows:

These thresholds are set by the European Commission and change every two years. The trust has to advertise these opportunities in the Official Journal of the European Union (known as OJEU) first, but will also seek to advertise opportunities in "Source Lincolnshire". Current opportunities will also be featured on the trust's website

For more information on OJEU see: http://ted.europa.eu/

For more information on Source Lincolnshire : http://www.sourcelincolnshire.co.uk/Default.aspx

The trust normally uses the Restricted Procedure under the EU Procurement Directives, so most adverts require potential suppliers to lodge an initial expression of interest, to be considered to be included in the final tender list.

The trust then often uses a pre-qualification questionnaire (PQQ) to collect some basic information in a uniform manner, concerning the potential supplier's track record in supplying the relevant goods and services. The responses to the PQQ are normally evaluated according to one set of criteria and a final tender list is determined.

Invitations to tender (the ITT) are then forwarded to all suppliers included on the final tender list. The ITT should, as a minimum, include a specification of the goods/services required by the trust, the draft terms and conditions of contract proposed along with a pricing schedule to be completed and returned. Normally within the ITT the trust will include a set of evaluation criteria on how the bids received will be evaluated.

All tenders returned and opened in accordance with the trust's procedures are evaluated in accordance with the previously agreed evaluation criteria. Once any internal approvals are obtained, the preliminary contract award is subject to a mandatory 10 day standstill period, known as the "Alcatel" rule.

Alcatel

10 day mandatory standstill period - For all public sector procurements covered by the full EU procurement directives, a minimum of ten (10) calendar days mandatory standstill period is required between communicating the award decision by email, fax or post to all tenderers and entering into a contractually binding agreement.

The intention here is that unsuccessful bidders can request a debrief on the reasons for the decision and ultimately if felt appropriate lodge a formal appeal and challenge to the process; before the contract is finally entered into.

After the standstill period has been completed the contract award will be finalised with the successful tenderer. A contract award notice will be placed in the Official Journal of the European Union (known as OJEU). The trust will then exchange contracts with the successful supplier and will often also confirm the contract award with a purchase order.

Electronic tendering

At present the trust does not use an electronic or e-tendering system.

Local Tendering - below the EU threshold tendering:

Where the trust has a requirement for goods/services below the EU threshold level (see above) which are not already covered by an existing contract or tender; and the likely value is in excess of £20,000 the trust must subject this requirement to a local tendering process.

This means seeking bids from at least three potential suppliers. If the requirement is known to the Supplies Department sufficiently in advance it is likely this requirement will also be featured in Source Lincolnshire and on the trust's website.

Invitations to tender (the ITT) are forwarded to at least three suppliers. The ITT should, as a minimum, include a specification of the goods/services required by the trust, the draft terms and conditions of contract proposed along with a pricing schedule to be completed and returned. Normally within the ITT the trust will include a set of evaluation criteria on how the bids received will be evaluated.

All tenders returned and opened in accordance with the trust's procedures are evaluated in accordance with the previously agreed evaluation criteria.

Once any internal approvals are obtained, for this level of expenditure, the contract award is usually indicated by the trust raising a purchase order on the successful supplier and notification sent to the unsuccessful suppliers.

Trust Standing Orders

For a copy of the trust's Standing Orders, which lays down the tendering procedures (internally and externally), see the Trust's Corporate Governance Framework