What is procurement?

Procurement is the acquisition of goods, works and services from both third parties and inhouse providers. The procurement process spans the whole cycle from identification of needs, through to the end of a services contract of the end of the useful life of an asset. It involves options appraisal and the critical 'make or buy' decision, which might result in the provision of services by external or in- house providers.

 

In the context of the procurement process, obtaining best value and value for money means choosing the bid that offers the optimum combination of whole life costs and benefits that meet the Council's requirements. This is not the lowest initial price option and requires an assessment of the ongoing revenue and resource costs as well as initial capital investment.

 

The Council's requirements can include social,   environmental and other strategic objectives and should be defined at the earliest stage of the procurement cycle. The criterion of best value for money should be used at the award stage to select the bid that best meets those

requirements.

 

The Council has also signed up to The National Procurement Concordat for small and medium enterprises (SME's). The purpose of the National Procurement Concordat is to set out what small firms and others supplying Local Government can expect when tendering for Local Authority contracts.   The Concordat also sets out the standards that public sector buyers should expect from their suppliers. It is a voluntary, non-statutory code of practice and is consistent with the delivery of Best Value and EU and UK procurement regulations.