Procurement Guide: Procurement Partnering and Programme Management

Sheffield City Council
Procurement Guide
Procurement Partnering and

Programme Management
January 2007
Amended 17/01/07; Ref: PPPM/LJP/Procurement Guide 5
The Procurement Guide
This Guide is designed to help you get the best out of procurement. It should be read by
anyone who spends money on buying goods and services for the Council including its
establishments or projects which use funding from external sources (such as European grant
funding).
The Guide is designed to cover the procurement of all goods and services, and the
Procurement Flowchart and Process Map on pages 7 and 8 set out the broad procedural
requirements in that context. The sections of the Guide relating to Obtaining Authority (page
10), drafting a Specification (page 12) and using in-house services (page 14) are also
relevant to all procurement exercises.
The Guide is based on the provisions of the Councils Standing Orders in relation to
Contracts, which are part of the City Councils Constitution. All Officers need to comply with
these Orders and this Guide has been designed to help you do that.
The Guide acts as a quick and easy reference document and is split into three sections;
Introduction to procurement (pages 1 to 6);

Useful tools (pages 7 to 23); and
Useful contacts (pages 24 to 25).
Introduction to Procurement briefly sets out the principles, which underpin the procurement
policies of the Council, and identifies the key stages of the procurement process.
Useful Tools provides practical guidance about the key elements of the procurement
process.
Useful Contacts provides you with a useful list of contacts.
This guidance covers the purchase of general goods and services. If you have a specialist
requirement e.g. the purchase of care, or there is an In-House Service Provider, then you will
need to refer to the specialist units located within individual Directorates (see Useful
Contacts).
We hope you find this Guide of use.
Lorraine Purcell
Head of Procurement, Partnering and Programme Management
CONTENTS
SECTION 1 - INTRODUCTION TO PROCUREMENT
What is Procurement? p1
Procurement Policy Principles p2
What You Must Do For Every Procurement p3
The Four Key Stages p5
SECTION 2 USEFUL TOOLS
The Procurement Flowchart p7

The Procurement Process Map p8
Obtaining Authority Cabinet, Band A and Delegated Authority p10
Drafting the Specification p12
In-House Providers p14
Tendering p17
Evaluation p19
Contract Award p22
SECTION 3 - USEFUL CONTACTS
General Contacts PPPM p23

In-House Provision Contacts p23
Corporate Contracts Contact p23
ICT Procurement p23
Legal Advice p24
Delegated Powers Forms Authorised Signatories: p24
Legal
Financial
Personnel
Cabinet Members with Portfolio
Website Address for Council Standing Orders p24
APPENDICES
Section 1
INTRODUCTION
What is Procurement?
Procurement can be defined as the responsibility for obtaining (whether by purchasing,

lease, hire or other legal means) the services, equipment, materials or supplies required
by an organisation so it can effectively meet its business objectives.
An organisation as large and diverse as the Council buys an enormous range of goods
and services. If you are responsible for spending money to buy goods or services for the
Council, you must always bear in mind the Procurement Principles set out in this Guide.
They underpin the way the Council conducts its business.
If youre ever in doubt, ask! Please refer to the Useful Contacts in this Guide.
1
Procurement Policy Principles
The three key procurement policy principles are that:
we will always seek out the most economically advantageous offer in

order to achieve best value for money;
officers involved in procurement for the Council will at all times show the
highest possible standards of legal and ethical behaviour; and
there must be full compliance with the required legal framework
These principles are outlined in greater detail in this Guide, starting with what you need to
do to demonstrate your compliance with these principles. There is also a section on
ordering and purchasing in the Councils Financial Framework which is also part of the
Councils Constitution, and detailed procedures are set out within the Councils Standing
Orders, Part C, Contracts which can be found on the Councils Intranet, under
http://sheffield.net/managers/procurement-projects/contracting-rules--procedures
or the Councils website under Councils Constitution. The full web address is shown in
the Useful Contacts section on page 25. Financial processes must be followed in all
cases in accordance with the Financial Framework and also by reference to a
Directorates own Financial Procedures.
2
What You Must Do For Every Procurement
It is your responsibility to ensure that you follow the Councils procurement procedures. It
is also the responsibility of managers to ensure that the people who do follow the
Councils procedures have the appropriate training etc. Each individual procurement is
different and will vary accordingly, but each procurement exercise must be underpinned
by;
The appropriate authority to proceed;

A desire to obtain the best value for money by accepting the most economically
advantageous offer (see definition below);
A clear understanding of where to get procurement or legal advice when you
need it; and
A clear management audit trail.
It is likely that you are carrying out procurement as part of a larger project, with the
procurement needed to buy goods or services being essential to the delivery of the
overall project objectives. In which case the procurement needs to be carried out in the
context of Sheffield City Councils approach to project management. You can find out
further information on this approach at http://sheffield.net/managers/managing-projects
or by contacting the Corporate Programme Office on 273 6841 or emailing to
ProgrammeOffice@sheffield.gov.uk In a well-managed project, you should find that
much of the scoping work needed at the start of any procurement has already been
carried out.
Appropriate Authority
You must ensure that you have appropriate authority in place at the outset of the
procurement process. Ask for advice if you are unsure. Appropriate authority could be a
Cabinet Minute, a Band A or Band B Record of Exercise of Delegated Powers - see page
10 for further information. It is important that you keep within the terms of any authority
given to you.
Turn to the Procurement Flowchart on page 7 for a step-by-step guide of what you need
to do. This is supported by the Process Map on page 8, which identifies the principal
stages within the procurement process.
A Desire to Obtain Best Value for Money and to Accept the Most Economically
Advantageous Offer
The purpose of the procurement process is to achieve value for money. This is the
optimum combination of both whole life costs and quality (or fitness for purpose) to meet
your requirements. To achieve this you will need to identify the most economically
advantageous offer and to do this you will need to consider a range of issues such as
quality, performance, delivery, continuity of supply and whole life costs.
Whole life costs are not just about the short-term price. Whole-life costs also take into
account all aspects of cost over time including for example capital, maintenance,
management, operating and disposal costs whenever they fall within the life of the
contract.
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By taking into consideration a range of factors like these when evaluating the quotations
or bids you should be able to identify the most economically advantageous offer. In
addition, utilising to the full the services of an in-house provider or existing contracts or
partnering arrangements can also help you achieve overall value for money (please see
page 14).
If use of an In-House Provider, Strategic Partner or other similar Existing Contractual

Arrangement e.g. Kier, Liberata etc. is inappropriate, then you will not be covered by
your original delegated power / authority and so will need to get a higher level of
approval in order to move forward. This could be either a Band A Record of Exercise of
Delegated Powers authority, or a report to Cabinet (see page 10).
Obtaining Procurement or Legal Advice when Required
Officers in Procurement, Partnering and Programme Management and Legal and

Governance are here to help. Sometimes when you start the process to obtain the goods
or services you need you can unearth many different procurement, ethical and legal
issues. In particular, you should obtain advice if you need to waive standing orders or
seek an exemption from the normal procurement rules (see Standing Orders 2.8.1 and
2.8.2 for more detail). Dont muddle through and hope for the best! If at any stage
in the process you are unsure of the best course of action then get some advice.
Useful contact details are provided on pages 24 and 25.
A Clear Management Audit Trail
It is important that every stage of the procurement process is documented. There needs
to be written evidence available on why something was done including a record of the
appropriate authority to proceed, how it was done and who was involved. Its important
to note that these audit requirements apply to all areas of expenditure across the Council
wherever it occurs.
4
The Four Key Stages
There are four key stages to the procurement process, and these are:
Getting started;
Tendering;
Evaluation; and
Award.
1 Getting Started
During this stage you will need to:
Identify and define your requirements;

Find out whether the services are available in-house or are subject to existing
contracts or arrangements, or whether the goods/services could be
purchased through an existing corporate contract, in which case these
arrangements should be used (pages 14 and 17);
Define your procurement route (see Procurement Flowchart - page 7); using
the procurement strategy report pro-forma (a copy template of which can
be found in Appendix 1) and reference to Standing Order C.1.6;
Obtain authority to do what you want to do (page 10);
Draft a specification, which sets out what you want to achieve from the
process (page 12).
2 Tendering
Identify and assess the marketplace;

Define precisely your requirements;
Take your requirement to the marketplace.
3 Evaluation
Look in detail at the bids or quotes submitted;

Evaluate the bids or quotes against pre-determined criteria and use the
Councils Evaluation Model described on page 20;
Select the offer that is the most economically advantageous.
4 Award
If you need to put a contract in place rather than just issuing a purchase order
then during this stage you will need to:
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Finalise the content of the appropriate City Council form of contract, i.e. who
will do what, when, where, and to what standards including the form of
payment.
For further guidance on ordering or appointments see page 23.
The type of order that is placed or contract that is awarded will depend on the
form of procurement and the extent of goods and/or services to be provided.
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Section 2
USEFUL TOOLS
PROCUREMENT FLOWCHART
NEED IDENTIFIED (as part of a project incl. consideration of Equalities /
Environmental issues)
IS THERE ANY IN-HOUSE PROVISION, STRATEGIC PARTNER, OR OTHER CONTRACTUAL ARRANGEMENT?
NO
YES
IS THERE A CORPORATE CONTRACT?
NO YES
USE CORPORATE CONTRACT
DOES THE IN-HOUSE CHECK THAT WRITTEN REFER TO PROCUREMENT,
PROVISION,/ STRATEGIC DELEGATED AUTHORITY HAS PARTNERING & PROGRAMME
PARTNER/OTHER BEEN GIVEN MANAGEMENT
REFER TO EXECUTIVE (see Useful Contacts)
ARRANGEMENT DIRECTOR FOR AUTHORITY
MEET YOUR NEEDS
AUTHORITY OBTAINED
NO USE THE IN-HOUSE CONSULT THE MAY REQUIRE CABINET
SERVICE/STRATEGIC APPROPRIATE YES NO
APPROVAL
PARTNER/OTHER EXECUTIVE IS YOUR ANTICIPATED CONTRACT VALUE
CONTRACTUAL DIRECTOR LESS THAN 25,000?
ARRANGEMENT
YES
ARE YOU APPOINTING CONSULTANTS
REFER TO PROCUREMENT, PARTNERING & OBTAIN DELEGATED YES

IS THE CONTRACT VALUE OVER:
PROGRAMME MANAGEMENT FOR ADVICE YES
AUTHORITY AND - GOODS 144,371
SEE PROCUREMENT PROCESS MAP PROCEED - SERVICES 144,371
- WORKS 3,611,319
YES DOES THE CONTRACT

NO EXCEED 1,000?
NO
INVITE AT LEAST THREE COMPETITIVE

OBTAIN COMPETITIVE QUOTES IN WRITING; ARE YOU SELECTING THE MOST
QUOTATIONS ECONOMICALLY ADVANTAGEOUS E.U. PROCUREMENT RULES APPLY.
CONSULT PROCUREMENT,
PARTNERING & PROGRAMME
MANAGEMENT
END OF PROCESS REFER TO PROCUREMENT, PARTNERING &

PROGRAMME MANAGEMENT (SEE STANDING
ORDER C.2.8) NO YES
NO
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YES
YES
NO
BAND A DELEGATION REQUIRED - REFER TO PROCUREMENT, PARTNERING & PROGRAMME MANAGEMENT FOR ADVICE ON THE PROCUREMENT AND SEE PROCUREMENT PROCESS
MAP
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THE PROCUREMENT PROCESS MAP (TWO STAGE PROCEDURE)
Identify the procurement requirement and obtain appropriate authority
- Cabinet Report/Band A/Record of Delegated Authority
Identify and seek approval of the procurement strategy, define the specification and
consider Equalities and Environmental issues
Prepare Market Brief
Advertise, seek and log expressions of interest
Prepare Invitation to Tender (ITT)
In response to written requests issue Market Brief and Pre Qualification

Questionnaire (PQQ)
Receive PQQs
Evaluate PQQs
Shortlist from PQQs
Issue detailed ITT to shortlisted organisations. ITT to include
Form of Agreement / Contract

Specification
Pricing Document
Evaluation Criteria and Method Statements
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Receive Tenders back
Evaluate Tenders and arrange interview / presentation if required
Undertake appropriate post tender clarifications if and as required
Seek approval to award contract via Report to Cabinet/ Band A/ Delegated Powers
Award Contract
Transfer contract to Contract Manager
Please note that there may be particular timescales applicable for this process and
this should be taken into account at the beginning of the process. Please also refer
to Procurement, Partnering and Programme Management for detailed advice and
guidance on particular stages.
The process may be varied, under E.U. Regulations, either by the application of a
single stage procedure whereby the market brief is combined into the ITT or the
appropriate use of the Competitive Dialogue procedure (C.2.5.1 to C.2.6 Standing
Orders). In either case contact Procurement, Partnering and Programme Management
for further advice.
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Obtaining Authority Cabinet, Band A and Delegated Authority
The procurement flowchart on page 7 will help you to establish whether you need to prepare a
report to obtain delegated authority from an Executive Director (Band B authorisation) or
prepare a Band A report which has to be signed and approved by a number of senior officers
and a Cabinet member. Alternatively you may need to write a Cabinet report to authorise the
actions. This section sets out the general rules for obtaining:
A record of delegated authority

Band A delegated authority
Authority from Cabinet
In all of these circumstances the same range of issues should be taken into account, forming
the detail of the report that needs to be provided to seek the approval. This detail is referred to
in the Councils Standing Orders as the Procurement Strategy (section C.1.6), and its purpose is
to test that the right approach is being adopted at the earliest stages of procurement. The
Procurement Checklist attached at Appendix 1, should serve as a good checklist for the items to
include in any report seeking approval.
Delegated Authority
For contracts up to a value of 25,000 or where the contract is for commonly recurring items,
then an Executive Director can authorise the contract by using a Record of Exercise of
Delegated Powers. There is no standard corporate form for such approvals. Good practice is
to prepare a report similar to a Band A report which can be signed by the Executive Director or
Directors .A detailed memo signed by both the writer and counter signed by the Executive
Director is also adequate. The authority to take such decisions is set out in the Councils
Constitution at page 282 under General Delegation of Powers to Executive Directors/Heads
Service. (A copy can be found in Appendix 2). In order to promote best practice, it is
recommended that you should use a report form such as that provided in Appendix 3 to make
clear that proper consideration has been given to the decision to go down a particular
procurement route. Ideally this should also include details of the procurement strategy
proposed.
For higher value, more complex arrangements a standard corporate form is to be used for
Band A authority, which is available from Procurement, Partnering and Programme
Management/Legal and Governance and is included here in Appendix 4.
If you propose to let a contract under a delegated authority but after evaluation you want to
select a company that is not making the most economically advantageous offer, then you will
need to complete a Band A Delegated Powers Form (supported by a report) prior to award of
the contract making particular reference to Standing Order C.2.8.
If in doubt consult Procurement, Partnering and Programme Management or Legal and

Governance for advice.
Band A Delegated Authority
A Band A delegation may be used for all contracts, irrespective of value, but it must be used for
all contracts with a value over 25,000 (unless the matter is the subject of a Report to Cabinet
or for commonly recurring items).
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A Band A delegation is appropriate if;
The tender is the most economically advantageous as judged against pre-determined

criteria
It is within the available approved budget
It is not contrary to any Council Policy
It does not represent a significant departure from the relevant Service Plan
It does not have a strategic impact for the Council
The matter is not already reserved for Cabinet
It is not a Key Decision as defined in the Councils Constitution (Key decisions would
normally go to Cabinet but could go through Band A process, but both would need to be
recorded on the Forward Plan)
The process is in accordance with Standing Orders
There are 10 sections to the Band A Delegated Powers Form. All the relevant implications must
be signed off prior to final approval by Executive Director/ Head of Service. Copies of the
standard Band A Form are available from Committee Secretariat (see Useful Contacts on page
24) and an example is copied here at Appendix 4. The report should generally be open to the
public. If it is considered that the report contains exempt information, this should be clearly
indicated at paragraph 5 of the report and the relevant paragraph of Schedule 12A of the Access
to Information Act should be referred to.
The officers who sign the Band A Form will need to know the full circumstances surrounding the
proposed letting or award of the contract and you must bring all relevant matters to their
attention including a copy of the procurement strategy (template included at Appendix 1). If
there is insufficient space on the Band A Form to set out the level of detail needed then attach a
brief report. Once signed, the completed form and any supporting report should be copied to
Committee Secretariat for general publication. Remember that the report and decision will be
publicly available on the Councils website and are subject to detailed scrutiny. It is important to
be careful about releasing personal details or confidential information. Please contact Legal and
Governance for further advice in these circumstances.
Please note that both Band A forms and records of Delegated Authority must be signed off at 2
key stages i.e. defining and proceeding with the procurement strategy and the award of the
contract itself.
Authority from Cabinet
You should draft a Report to Cabinet if:
You dont currently have the budget to let the contract; or

It conflicts with any existing policies of the City Council; or
Letting the contract deviates from the general principles of your Service Plan; or
The contract would have a significant strategic impact for the City Council; or
Is a matter of major public concern; or
It is a matter upon which only Cabinet has the authority to decide.
The format to use for a report to Cabinet is available from Committee Secretariat (see Useful
Contacts).
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Always seek advice if youre unclear.
13
Drafting the Specification
The purpose of this Section is to set out the basic principles you should bear in mind when
drafting a specification.
Drafting a specification to meet your particular requirements is the most critical factor for a
successful procurement. You need to draft a clear and complete specification at the start of the
process. A specification defines what you require in terms of performance i.e. what you want
done. It should not specify how it should be done.
The specification forms a key part of the documentation that you send to prospective
suppliers / tenderers, asking them to put in a bid or a quotation to meet your requirements.
Incomplete or unclear specifications will inevitably lead to an unsatisfactory outcome. You may
get a poor response to your request, or worse still, unsatisfactory performance from the
supplier you select to deliver your requirements. Put the effort in now, and you wont waste
future resources clarifying with potential suppliers what you actually want or varying the
specification.
Each specification will have a different content, which will depend on:
The type of goods or service you require;

The complexity of the goods or services;
Its relative importance to the Council; and
The availability of the goods or services in the marketplace.
Your specification should clearly define your requirements in respect of:
Performance;
Quality;
Quantity; and
Timescales.
Any specification should also cover consideration of the requirements impact on equalities
and on the environment, particularly in relation to current Council policy. Always keep an open
mind as to how the requirements will be met by potential suppliers as new or innovative
solutions could lead to better value for money. If you want detailed advice on what a particular
specification should include, contact the Procurement, Partnering and Programme
Management who will be pleased to help. We do have some model specifications already
prepared which may be capable of adaptation for your Service area.
Dos and Donts when writing a specification.
DO concentrate on required outputs, not inputs. Tell people what you want, but not
how to achieve it
DONT over or under specify your needs.
DO allow potential suppliers scope to submit innovative solutions
DONT be ambiguous and use confusing terminology and/or abbreviations
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DO clearly state any time limits on the production of outputs and/or key deadlines
that need to be met
DONT specify by brand name unless absolutely necessary
DO give details of any design requirements or limitations
DONT opt for non-standard items when not necessary
DO take account of equalities and/ or environmental issues where it is relevant to do so
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In-House Providers/Strategic Partners/Other Existing Contractual Arrangements
This sets out guidance on the Councils processes for using the range of services delivered
by In-House Providers. There are a variety of In-House Providers across the Council and
generally speaking they can be defined as services provided by one part of the Council to
other Directorates within the Council. Please refer to the section headed Useful Contacts on
page 24 to check if there are existing contracts within an area.
They include for example the services delivered by Street Force which include new works to
highways and environmental improvements ranging from road humps to major reconstruction
schemes in the City centre, the manufacture of signs, ready mixed concrete and general
infrastructure maintenance for trees, verges, drainage systems, footways, roads, car parks,
street lighting, litter, graffiti, weed control and horticulture.
Kier Sheffield LLP is our In-House partner that delivers comprehensive repairs,
maintenance and construction services. These range from all types of minor repairs, such as
tap washers, through to programmed works such as re-roofing and painting, and could
extend to building a new school.
Finally there are also In-House Providers within Catering, Cleaning, Transport and Markets
who cover such areas as CCTV, security and alarm monitoring, the provision of some
catering and cleaning services, vehicle maintenance, supply of vehicles with or without
drivers and other specialist transport services.
Use of In-House Providers/Strategic Partners/Other Contractual Arrangements
The Council promotes the achievement of best value and also advocates a mixed economy
where it is right to do so, attempting to keep the right balance between In-House/ Strategic
Partners/Other Contractual Arrangements and external provision. Officers are charged with
ensuring that they get the best value and most efficient use they can from the resources they
manage. Whilst consideration needs to be given to individual requirements, encouraging the
wide use of In-House Services/Strategic Partners/Other Contractual Arrangements is also of
importance when the Council is seeking to get best value across all of its areas of
expenditure.
Inappropriate and excessive use of external suppliers as opposed to a healthy throughput of

work to In-House Providers/Strategic Partners/Other Contractual Arrangements can result in
a sub-optimal outcome at a corporate level and even an increase in the Councils overall
costs.
The policy is therefore that where there is an In-House Service Provider/Strategic

Partners/Other Contractual Arrangements then they must be the first port of call in seeking a
solution to your requirements irrespective of the value of those requirements. In some cases
external funding arrangements may dictate that a tendering competition takes place,
however it is worth noting that if this is not the case then competitiveness can also be
demonstrated by alternative methods such as benchmarking or through negotiation against
similar work.
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If a tendering process is required e.g. because a funding agency requires one to be held,
then the In-House Provider should be allowed to submit a bid for the work. This applies not
only to single contracts or projects but also to whole programmes of work. It also applies to
all expenditure across the Council.
The Process
There are some services where the Council has already made a contractual commitment to
award work to a particular contractor. Where these contractual arrangements exist, you must
use that contractor (e.g. Liberata, Kier etc.)
In other cases where your requirement can be met by an In-House Provider/Strategic

Partners/Other Contractual Arrangements, then you can seek a price for the work from them
(but see the reference to Term Contracts below). Before you do so however, it may be
appropriate to undertake a pre-tender estimate based on issues such as quality, timescales,
quantity etc. You need to do this so that you can effectively benchmark the price submitted
by the In-House Provider or Strategic Partner.
However, once the team have submitted a quote then you will need to test the proposal
against your specification and the pre-tender estimate to test for good value. Remember that
we are looking for the best deal overall and not only considering the short-term price (see
page 3).
If you are happy with the offer from the In-House Provider or Strategic Partner or Contractor,
then you can agree the detail for delivery. If however there is evidence to demonstrate that
the deal does not offer best value or does not represent the most economically
advantageous offer, then you may have to look to an external provider to meet your
requirements. If you propose to use external service providers for a service which is
provided in-house then you must get the agreement of the Executive Director to do so and
the decision making process must be clear and robust with an identifiable audit trail. If you
cannot get such agreement then refer the matter to the Head of Procurement, Partnering and
Programme Management.
Term Contracts with Strategic Partners and Others
In some instances term contracts have been let for work on a schedule of rates basis. In
these cases departments are tied into these arrangements and whilst you may get a budget
estimate against the schedule of rates, any further comparison is not needed, as this would
have taken place during the tender exercise to agree the original contract.
Necessary Use of External Providers
There are some schemes of work, which have to go to an external provider as they are beyond
the remit or capacity of the In-House Service. In these cases you will need to ensure that the
details of the proposed procurement strategy are set out in the report to Cabinet report and in the
record of Delegated Authority.
Approved List
If you do decide that the best value route is to go for quotes or bids, then if the work is a
building or Civil Engineering project, and is over 25,000 in value, then the external providers
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invited to put in for the job(s) must be selected from the Councils Approved List (see Useful
Contacts page 24). Procurement, Partnering and Programme Management maintain the
Approved List of Construction Contractors, which is divided into panels of contractors suitable
for different types of work of differing contract values.
Local Suppliers
Whilst you cannot select a supplier using only location as the evaluation criteria, if all other
aspects of the offer are equal, then promoting local economic prosperity by awarding the work
to a local supplier may be considered. The consideration of opportunities for tendering by
social enterprises may also be applicable here. If the offer however is not the most
economically advantageous then use of a supplier merely because they are local is not
acceptable.
In-House Providers and Sub-Contractors
If the In-House Provider intends to sub-contract the work awarded to them then there will
need to be a policy of open book accounting on both sides. The costs therefore of sub-
contracting the work i.e. the rates charged by the sub-contracting should be made available to
the Client.
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Tendering
Tendering is the term used to describe going to the marketplace and asking suppliers to
make you an offer to meet your requirements. Such an offer could be in the form of a
quotation or if you have detailed requirements it could be a bid. Tendering is costly both for
potential suppliers and the Council. You need to strike the right balance between ensuring
not only that there is adequate competition (to demonstrate value for money) but also
avoiding unnecessary expense.
You should first check whether the goods or services you want are available in-house or
through a Strategic Partner or other existing contractual arrangement (see Section on In-
House Providers and Useful Contacts for guidance.) In the event of a dispute arising over
the use of any of these services you will need to refer the matter to the Head of
Procurement, Partnering and Programme Management.
If there is no In-House Service Provider, or Strategic Partner, then you need to check
whether the Council has already let a corporate contract for the goods or services you
require that you could tap into. Contact the Purchasing Team in Procurement, Partnering
and Programme Management for information on current corporate contracts. (see Useful
contacts).
Quotations or Formal Bids?
Standing Orders require that you obtain at least three competitive quotations in writing if the
contracts value is over 1000. If what you are buying is simple, easy to describe in the
specification and off-the-shelf, then a quotation in writing is likely to be the appropriate way
to obtain the goods or services you need.
If however, what you are buying or seeking to procure is novel, complex or difficult to
describe then you may want to ask potential suppliers to put in a more detailed offer. If this
is the case then you are asking the marketplace to put in a bid for the goods or services. If
you decide to receive bids rather than quotations then Procurement, Partnering and
Programme Management will be able to help you put together a document to achieve this.
Contract Value Under 25,000 Goods and Services
Irrespective of whether you are seeking quotations or bids the following will apply:
Obtain at least three written quotations or bids (fax transmissions are acceptable);
If the value of the purchase is less than 1000 then you can obtain quotations by
telephone (but see Management Audit Trail below).
The number of suppliers you approach will again be dependent upon the number of
suppliers in the market, costs, risk and the complexity of the goods or services required.
You will need to decide how many to pick.
DO research the market;
DONT invite an excessive number to respond; but
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DO invite enough suppliers to respond to ensure effective competition (ideally no

less than 3) and stimulate new interest in our work;
DONT invite the same suppliers to respond all of the time as this will stifle
competition;
DO give new and different organisations the chance to respond.
Contract Value Under 25,000 Appointment of Consultants
The provisions relating to goods and services also apply to the appointment of consultants.
Appointing consultants is a complex task because you are buying intellectual help. You need
to be very clear about your requirements, and you will probably need to advertise the
contract in the trade/national/regional press and short list against pre-defined criteria.
A separate guidance note is available on appointing consultants. The protocol for the
Appointment of Consultants includes a pro-forma to take you through the main issues to
be dealt with. The Protocol is attached at Appendix 5 or you can get a copy from the
Councils Intranet.
Contract value over 25,000 general
Involve the Procurement, Partnering and Programme Management (PPPM) and Legal and
Governance at the start of the project who will advise on the best way to go out and get
offers for the work in question. If the value of the contract is likely to be over the 144,371
threshold for Services or Supply contracts, then EU rules will apply. Please consult PPPM
for further advice on the necessary procedures, such as competitive dialogue, to ensure that
the appropriate regulations are followed to avoid any later challenge to the procurement
process.
Tender Process
If you are undertaking a tender exercise then you will need to decide how to approach the
market place in order to get the best deal. There are generally speaking three ways to
invite tenders. These are:
The open process where the Council advertises its requirements and issues
the Invitation to Tender (ITT) to any organisation that asks for them
Preparation of a tender list which includes tried and tested organisations

which, from past experience / market intelligence you know will be able to
meet the requirements and you therefore issue the ITT to the organisations on
the list, asking them to put in a bid
The restricted process that uses a two stage procedure where, following an
advert, we ask organisations to respond to a Market Brief (an outline of your
requirements) and ask them to complete a Pre-Qualification Questionnaire
(PQQ) with details of their technical, economic and commercial capabilities.
The PQQs are evaluated and a tender list is then drawn up following such
evaluation. Bids are then received on the basis of issuing a more detailed ITT.
20
The negotiated process / competitive dialogue requires specialist advice

from PPPM.
Even if you do not use a PQQ you will always want bidders to demonstrate their capacity in
the following three criteria:
General commercial eligibility (e.g. legally viable, solvent and engaged in the
business in question);
Technical capability/suitability (e.g. necessary skill, experience and resources to
fulfil contracts, track record of similar work);
Financial Standing (e.g. has the financial and economic resources to fund and
reliably carry out work and satisfy required guarantees).
Management Audit Trail
Whichever course of action you take, you must be clear that it is the right course of action in the
circumstances. You therefore need to ensure that you:
Fully document what you have done and why;

Keep copies of any correspondence entered into;
Retain and record any information received from the tenderers;
Record and report any offers of gifts or hospitality whether accepted or refused as
required by the Corporate Code of Conduct.
If you do have a clear management audit trail:
Others can see what you have done and why;

It will be easier for you to justify and substantiate any decision you take on which bid
you accept;
If you wish to debrief unsuccessful bidders on why they lost so that the level of
competition may improve in the future, then clear and careful documentation will help
you to do this.
Evaluation
Evaluation can take place at two stages dependent upon the tendering process that is to
be followed. If you have opted for the two-stage procedure and are using a PQQ then
you will need to both evaluate the PQQs and the ultimate bids. If you are using the open
or tender list procedure then you will only evaluate once, but as part of the evaluation of
the bid, you need to consider the three criteria on capacity described above.
Completed PQQs should be assessed on these criteria utilising the scoring model
shown below in order to decide who is then asked to tender. Only at the stage of
agreeing the tender list should those relevant PQQs be passed to the Organisational
Development Manager (Safety and Well Being) for additional checking on aspects of
Health and Safety. A protocol for such checks is available from Procurement,
Partnering and Programme Management.
The starting point for the evaluation in respect to contract award will always be the
specification (see page 12) and the first thing to do is to consider how close the offer is
to the specification . In most cases evaluation will consider issues such as whole-life
21
costs (not just short term price), quality, delivery etc. In each case however, you will
need to demonstrate that the offer has been assessed and an objective judgement
reached based on the merits (or not as the case may be) of each quote or bid against
previously declared criteria.
It is important to note however that as part of Standing Orders the criteria for awarding
contracts shall be notified to tenderers, and will always include price and criteria
relating to the quality of the work, services or goods to be supplied. As an example,
typical award criteria for a negotiated contract involving staff transfer might be:
Financial proposals;
Contract terms proposal;
Service proposals including transfer proposals for staff;
Innovation and service development proposals.
Award criteria must be appropriate in terms of the regulatory regime and the project
content and size and can be weighted to reflect their relative importance to the project
under consideration.
An example of a worked scoring matrix for contract award is attached following the
scoring model.
SCORING MODEL (For Contract Award)
Note that failure either to achieve 50% of the available points (i.e. 2.5) for any
one criterion or an aggregate point score of 66% (i.e. 3.33) will bar a tender from
further consideration.
Quality Points Score Description of Response
0 up to 1.4 Completely unsatisfactory response, suggesting

the tenderer would have serious difficulties
delivering the required contract standards, or has
provided no relevant information at all.
over 1.5 up to 2.4 Unacceptable response indicating that the tenderer

would meet only some of the requirements of the
contract some of the time. Considerable work
would be needed with the tenderer to expand on
information provided in order for the information to
indicate that contractual standards are likely to be
met.
over 2.5 up to 3.4 Acceptable response indicating that the tenderer

would be likely to meet the basic contract
standards but further work needed to ensure that
contract standards will be met consistently.
over 3.5 up to 4.4 Good response clearly indicating that the tenderer
has fully understood and can apply and deliver all
22
the required contract standards. Small amount of
further work may be needed in some areas.
Over 4.5 up to 5.0 Response indicating that the tenderer has a wholly
comprehensive understanding of the contract
standards and that the proposed approach will
result in the contract standard being exceeded.
Example Scoring Matrix
Award Criteria Weighting %
1. Financial Proposals 30%
2. Contract Term Proposal 25%
3. Service Proposals including 25%

transfer proposals for staff
4. Innovation and Service 20%

Development Proposals
Example: Bidder A and Bidder B
Criteria Score 0 -5 Weight Max Points Accrued

Score
Bidder A Bidder B
Criteria 1
Finance 4.3 3.9 6 30 25.8 23.4
Criteria 2
Contract 4.4 3.8 5 25 22 19

Terms
Criteria 3
Service and 2.2* 4.2 5 25 11 21

Staff Transfer
Criteria 4
Innovation 3.2 4.1 4 20 12.8 16.4

and Service
Development
Total Score 71.6 79.8
23
* Failure to score 2.5 for any one criterion will bar a tender from further consideration. In
this example therefore Bidder A would be disqualified.
Contract Award
Once you have received either your quotations or your bids, evaluated them and selected the
one that is the most economically advantageous offer, then subject to obtaining the
necessary approval, you will either issue a purchase order to, or enter into a contract with,
that supplier to deliver your requirements.
The Purchase Order
You should use this form to order your goods or services and the Terms and Conditions of
Contract are on the reverse. A purchase order is a simple contract and in most cases it will
be the most appropriate way of accepting the offer made by the supplier in their quote or bid.
As a general rule, the purchase order with its terms and conditions should be used for simple
contracts for the supply of goods with a value of under 25,000.
Using a Contract
There may be times when what you want to buy requires more detail than a purchase order
allows you to record. Alternatively, you may be buying a service that will be delivered over a
period of time and you need to set out when, where and how that will happen. If this is the
case then you may need to set-up a contract.
If you consider that the contract conditions on the Purchase Order are not sufficiently
detailed to meet your requirements or that another standard from of contract is more
appropriate, please contact the Procurement, Partnering and Programme Management at
the outset of the procurement exercise. We will give advice on any matters relating to
drafting a contract and the issues surrounding it, including advice on contract management.
Again it should be noted that Standing Orders under C.4 Contracts identifies a range of
standard form contracts for use, together with directions for their signing and sealing and
contacts for further advice. It should be noted however that, once finalised, the contracts
themselves are drawn up and executed by Legal and Governance.
24
Section 3
USEFUL CONTACTS
General Contacts
Head of Procurement, Partnering and Programme Management

Lorraine Purcell 27 36890
Enquiries for Project Management and Procurement

Simon Holmesmith, Principal Project Officer 27 36293
Enquiries on General Purchasing

Mark Ellis, Senior Contracts & Purchasing Officer 27 36864
Is there existing in-house provision?
Corporate Learning and Development Service 27 35571

Document Production Services 27 34488
Creative Services 27 36604
Print Brokerage Service 27 34070
Marketing Team 20 39070
Media Team 20 39082
Street Force 27 34567
(Highways & lighting, street cleaning, grounds maintenance, public toilets)
Workshop Services 20 37593
Capacity Planning and Development Services 27 35735
Design and Project Management 27 36004
Strategic Partners
Kier Sheffield 27 36164

Liberata 27 34305
Veolia 22 83680
Is there already a corporate contract?
Mark Ellis Senior Contracts and Purchasing Officer 27 36864
Julie Hindle Neighbourhoods 27 36338

Joanne Knight Community Care 27 35540
Ericka Lyne Children & Young Peoples (social care) 27 35013
Sallie Swann Children & Young Peoples (schools) 27 35827
Ian Peck DEL 27 36004
June Henson Maintenance of the Approved List
of Construction Contractors 273 5624
ICT Procurement
Louise Gibson Chief Executives Directorate 27 34048

Jeff Crofts Children & Young Peoples 27 35800
Julie Oxley Neighbourhoods & Community Care 27 34995
Nick Dibben Sheffield Homes 27 35292
Simon Bullen Direct Services - Kier 27 35244
Nigel Gibbions Development, Environment & Leisure 27 34274
23
Health and Safety
Steve Clark Organisational Development Manager 27 34796

(Safety and Well Being)
Advice on the Process for Appointing External Consultants
Eugene Walker Corporate Resources 27 35872

Lorraine Purcell Procurement, Partnering & Programme
Management 27 36890
Legal advice
Liz Bashforth Assistant Chief Executive,Legal & Governance 27 34019

Frances Woodhead Head of Legal Services 27 34018
Lawrence Gould Principal Solicitor (Contracts,

Procurement and Commercial) 27 34116
Delegated Powers Forms authorised signatories
Legal
Obtain signature of Assistant Chief Executive of Legal & Governance or Head of Legal Services
Financial
Chief Executives Chris Nicholson 27 34348

Children & Young Peoples Ken Matthews 27 35663
Neighbourhoods & Community Liz Orme 27 34687
Care
Sheffield Homes Helen Jennings 27 35462
DEL Michael Hoole 27 35006
Corporate Projects Laraine Manley 27 34300
Personnel
Ken Green Asst. Chief Executive Organisational 27 34081

Development & Communications
Cheryl Blackett Deputy Head of Corporate Human Resources 27 34080
Committee Secretariat
If you require any advice regarding delegated authority and relevant Cabinet Members approval,
please contact:
Mick Ogle Committee Secretariat Manager 27 34007
Website Address to view Council Standing Orders

www.sheffield.gov.uk/your-city-council/policy--performance/corporate-documents/council-
constitution-/pt-4---section-7
24
Appendices
Appendix 1 Procurement Check List
Appendix 2 Extract from Council Constitution General Delegation of Powers to

Executive Directors/Heads of Service
Appendix 3 Record of Delegated Authority Band B
Appendix 4 Record of Exercise of Delegated Powers Band A
Appendix 5 Protocol for the Appointment of Consultants
Appendix 5A Pro Forma to Approve Appointment of Consultants
Appendix 5B Guidance Notes on completion of Pro Forma

Appendix 1
Procurement Check List

PROCUREMENT CHECKLIST
CONTRACT GOODS / SERVICES

ESTIMATE ANNUAL CONTRACT VALUE
DURATION OF CONTRACT
METHOD OF PROCUREMENT
Date Responsibility
1. Identification of need and budget in principle.
2. Authority to proceed Band A/Band B.
3. Prepare project plan / establish project group.
4. Consideration to be given to the following issues

(to be recorded if necessary).
- health & safety implications

- equalities impact assessment*
- legal considerations
- tupe, staffing issues*
- risk management assessment*
- sustainability (environment, local
regeneration, achieving mixed
economy)
* See supporting documentation and
guidance
5. Gather existing management information and
market research.
6. Prepare tender documents;
Tender documents to include:
Instructions for Tenderers
Schedule of Requirements
Conditions of Contract
Pricing Schedule
Contractor Questionnaire (if open)
Market Brief / PQQ (if restricted).
7. Place appropriate advertising.
8. Tender return date arrange opening.
9. Evaluation of bids.
10. Authority to Award.

11. Form and execute contract
Appendix 2
Extract from Council Constitution

General Delegation of Powers to
Executive Directors/Heads of
Service
GENERAL DELEGATION OF POWERS TO EXECUTIVE DIRECTORS/HEADS

OF SERVICE
(NOTE: Throughout the Delegation of Powers to Executive Directors/Heads of

Service, where an officer has had or been given Delegated Powers, there is an
express right for that officer to pass on these powers to appropriate members of
their Service to enable such powers to be exercised in the interests of the
efficiency of the Service.)
Staffing and Conditions of Service
1. Implementation of National and Local Agreements, other than those

delegated to the Assistant Chief Executive, Organisational Development
and Communications.
2. Approval of major service restructuring proposals involving 10 or less posts
and the creation of new posts which involve no increases in overall net
expenditure.
3. Assignment of temporary posts; where the temporary post is for longer
than 12 months, these to be assigned following consultation with the
Assistant Chief Executive, Organisational Development and
Communications.
4. Filling of all vacant posts within approved budgets except for:
Certain posts covered by the Joint Negotiating Committee for Chief

Officers which appear on a list as determined and maintained by the
Head of the Paid Service.
Teaching staff under the control of the Childrens Services Authority
Within the Councils Recruitment and Selection Procedures.
5. Granting acceleration of increments within the appropriate scale for merit or

examination successes other than to officers employed on JNC for Chief
Officers grades.
6. Determination of staff grievances in accordance with agreed procedures.
7. Determination of grading appeals in accordance with agreed procedures.
8. Suspension and/or disciplinary action, including dismissal of employees in

accordance with agreed procedures.
9. Appointment of apprentices and the completion and cancellation of

indentures.
10. Determination of requests for the reimbursement of post-entry training and

examination fees, within agreed policy.
11. Determination of car users allowances to employees within the agreed

policy.
12. In connection with applications for paid and unpaid leave:-
the determination upon applications for annual leave;
the determination upon applications for paid and unpaid leave for personal or
domestic reasons;
the determination upon applications for maternity leave within agreed policy;
the determination upon applications for paternity leave within agreed policy
the determination upon applications for attendance on training courses; and
the determination upon applications for attendances at meetings or giving

lectures and the disbursement of fees arising therefrom.
13. Determination upon requests or recommendations for honoraria, gratuity

and acting rank allowances within agreed policy.
14. Determination of planned overtime for employees above the appropriate

spinal points, having regard to Council policy on overtime working.
15. In connection with the payment of removal expenses, lodging allowances

or travelling allowances the determination of the payment for such
expenses or allowances within Council policy.
16. Determination of request for payments under the Local Government

Pension Scheme (Discretionary Payments) Regulations, within the
Councils scheme and following consultation with the Assistant Chief
Executive, Organisational Development and Communications.
17. Determination of all requests for designation as telephone users within the
agreed policy.
18. In connection with claims for damage to, or loss of, personal property of
employees:-
(a) the determination of claims if not in excess of 200; and
(b) the making of recommendations to the Chief Executive for

determination where a claim is in excess of 200.
19. The determination of all requests for the provision of temporary housing
accommodation to employees, within the agreed policy.
20. Pursuant to the provisions of the Employment Equality (Age) Regulations

2006, to receive and determine requests from employees to remain in
employment beyond their notified retirement date and any appeals arising
therefrom, in accordance with prescribed statutory processes and to
approve the recruitment of external candidates over the normal retirement
age or within 6 months of the normal retirement age at the time of
application for employment with the Council, when it is in the interests of
the service to do so.
Departmental Management (In accordance with Standing Orders and Financial

Framework)
1. To put in place arrangements for the management of the

Directorate/Service to ensure the efficient delivering of services.
2. The management of the departmental budget/trading account.
3. Disposal of surplus or obsolete equipment, vehicles, scrap, etc. to the

highest tenderer.
4. To award a Contract subject to Standing Orders and the Financial

Framework, provided that the Contract:
- is awarded to the person submitting the most economically

advantageous tender decided by reference to pre-determined
weighted award criteria, where payment is to be made by the
Council, or the highest, where payment is to be received by the
Council;
- is within available budget (including any proper virement) in

accordance with the Financial Framework;
- is not contrary to any duly approved policy of the Council;
- is not a significant departure from the relevant Council Service Plan;
- is not a matter which is reserved for a Cabinet decision;
- is not a key decision as defined in Section 13.03 of the Council's

Constitution;
- is let in accordance with Contract Standing Orders;
then:
- a Head of Service may (as a Band B delegation) award a Contract of

Contract Value less than 25,000 and for commonly recurring items;
- a Head of Service, in consultation with the appropriate Cabinet

Member with Portfolio, may (as a Band A delegation) award a
Contract of Contract Value more than 25,000;
and in either case may also select the persons from whom quotations or
tenders are to be invited.
5. Negotiation and approval, subject to the approval of the Assistant Chief

Executive, Legal and Governance, of any contract for the provision of
services to an external agency unless there are any cost consequences for
the Council.
6. Authority to agree price increases where a price variation clause has been
included in a contract.
7. The determination of reasonable and appropriate overnight hotel rates for

staff in connection with absence away from home on official business.
8. In consultation with the Director of Corporate Resources the opening up of

petty cash imprest accounts etc..
9. Authorisation to statutory authorities to carry out essential works.
10. Repair and maintenance of buildings and upkeep of grounds within

amounts specified in estimates subject to compliance with the Councils
policy in relation to the use of the Direct Service Organisations for specified
works.
11. Repairs or adaptations by lessees or occupiers in respect of property

owned by the Council and under the appropriate Chief Officers control.
12. Use and letting of accommodation, facilities and land within the control of
the Service in accordance with the agreed policies and approved service
plans laid down by the Council and the Councils overall property strategy
for land and property management.
13. Setting of fees and charges, within agreed policies of the Council, for use
of any facilities within the Service; including approval of any such matters
for external bodies where Council approval is required.
14. Authorisation to reduce, award concessions or waive fees and charges in
appropriate cases.
15. Granting of community use status or other such similar concessions

available for Council designation within any agreements with an external
provider.
16. Regulation of services in accordance with the Councils byelaws in respect

of those services, and the serving of any notices permitted by such
byelaws; and the authorisation to the Assistant Chief Executive, Legal and
Governance to take any necessary action, including the institution of

proceedings, to enforce the same.
17. Provision of reasonable and appropriate hospitality to representatives of
other authorities etc. visiting the department or premises under the Chief
Officers control.
18. To submit applications for deemed planning consent under Regulation 4 of

the Town and Country Planning General Regulations 1976 in respect of
development where the cost of the development is provided for in the
budget or has been previously approved by the Council or is in accordance
with an approved policy adopted by the Council.
19. Compliance with the provisions of the Health and Safety policy of the City
Council.
20. Authority to accept or refuse any offer of grant, donation, or gift within the
agreed Council Code of Practice.
21. Determination of ex-gratia claims from persons other than employees on

the same basis as that provided for employees.
22. In consultation with Directorate Heads of Finance vire, within an activity

budget, between heads of expenditure (excluding capital financing charges
or other areas of spending prescribed by the Director of Corporate
Resources) in compliance with agreed service plans.
23. Authorisation of the Director of Corporate Resources to write off

irrecoverable debts.
24. Management of buildings under the control of the Department.
25. To authorise any particular named officer to carry out inspection and
enforcement duties where this is (i) authorised by law and (ii) necessary in
the performance of any function or duty of the department and to sign
identity cards in connection with the exercise of this authority, PROVIDED
that a list shall be maintained of all officers so authorised with a description
of the extent of such authorisation and the relevant statutory power.
26. To authorise any particular named officer to enter land and premises
(whether specifically or in general) and to require information as to interests
in land and premises where this is (i) authorised by law and (ii) necessary
in the performance of any function or duty of the department and to sign
identity cards in connection with the exercise of this authority, PROVIDED
that a list shall be maintained of all officers so authorised with a description
of the extent of such authorisation and the relevant statutory power.
27. To take emergency action in circumstances where, in the opinion of the

Executive Director, such action is necessary in the interests of the service,
on the understanding that the action taken and the reasons for it being
taken will be reported to the appropriate Portfolio holding member of the
Cabinet. Where expenditure is necessary, which has not been budgeted

for, prior consultation must take place with the Director of Corporate
Resources.
28. Agreement on the temporary cessation of any service, including but not
exclusively for reasons related to health and safety considerations, and any
long term reductions in service within the scope of the agreed service plan.
29. Taking of any necessary action, in consultation with the Assistant Chief
Executive, Legal and Governance, under the South Yorkshire Act 1980 or
any other powers to seize horses and other animals on Council owned
land.
30. With regard to the appointment of Officers to external bodies:-
(a) Heads of Service be granted delegated power to authorise

appointments to external organisations of officers in their Service;
(b) Executive Directors be granted delegated power to authorise

appointments to external organisations of Heads of Service and
officers in their Directorate;
Provided that all such delegated powers shall be exercised in accordance

with the Protocol to Assist Members and Officers Serving on External
Organisations approved by Corporate Strategy Committee on 16th March,
1999, and all officers authorising appointments shall be responsible for
ensuring that the register of those appointments is kept up to date.
31. The power to give or authorise the giving of notices or take any other action
under section 41 of the Local Government (Miscellaneous Provisions) Act 1982
(lost and uncollected property on buildings or premises owned or managed by the
Council.
Appendix 3
Record of Delegated Authority

SHEFFIELD CITY COUNCIL
? DIRECTORATE
Record of Exercise of Delegated Powers
("Band B")
1. Report Author:.................................................................................
2. Subject:...................................................................................................................................................
.
3. Decision to be taken
............................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
4. Basis for decision (to show that relevant issues have been taken into account and
irrelevant issues have been disregarded):
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
5. Category of Report: OPEN/CLOSED
If closed, approved by: .

In making this exemption, I have considered the presumption in favour of disclosure of
information contained in the Freedom of Information Act, but consider that the public
interest in maintaining the exemption outweighs the public interest in disclosing this
information. The reasons for this are attached to this report.
(Note: The decision not to disclose the information contained in the Band A should be
taken by the Executive Director/Head of Service and not the author of the report.)
6. Personnel Implications:
Cleared by ...........................................................................................................................................
7. Financial Implications: .
Signed by ................................................................................. Date

8. Legal Implications: ...
Signed by .......................................................................................... Date .......
9. Equality Impact Assessment Carried Out? .
Signed by Date
10. Agreed by:
Executive Director/Head of Service/Proper Officer:
Date ..................
Appendix 4
Band A, Record of Exercise of

Delegated Powers standard
corporate form
SHEFFIELD CITY COUNCIL
? DIRECTORATE
Record of Exercise of Delegated Powers
("Band A")
1. Report Author:.................................................................................
2. Subject:....................................................................................................................................................
3. Decision to be taken
............................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
4. Basis for decision (to show that relevant issues have been taken into account and
irrelevant issues have been disregarded):
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
................................................................................................................................................................
5. Category of Report: OPEN/CLOSED
If closed, approved by: .

In making this exemption, I have considered the presumption in favour of disclosure of
information contained in the Freedom of Information Act, but consider that the public
interest in maintaining the exemption outweighs the public interest in disclosing this
information. The reasons for this are attached to this report.
(Note: The decision not to disclose the information contained in the Band A should be
taken by the Executive Director/Head of Service and not the author of the report.)
6. Personnel Implications:
Cleared by ...........................................................................................................................................
7. Financial Implications: .
Signed by ................................................................................. Date

8. Legal Implications: ...
Signed by .......................................................................................... Date .......
9. Equality Impact Assessment Carried Out? .
Signed by Date
10. Agreed by:
Executive Director/Head of Service:..
Cabinet Member
Consulted ......................................... Date ..................
Appendix 5
Protocol for the

Appointment of
Consultants
The Protocol for the Appointment of Consultants
Introduction
1. The use of consultants by the City Council can be of considerable value in the
right circumstances for example where there is a specific expertise that is
not available in-house or where there are peaks of workload that it is not
sensible to staff up to internally.
2. However, it is also the case that the Council has to ensure that the reasons for
using external resources are clear and fully justified. This protocol should
provide a means of demonstrating that the appointment of consultants is open
to scrutiny. It is also intended to be a practical guide to anyone thinking
through the stages necessary for a successful appointment.
3. This protocol is based on existing procedures under Standing Orders, the

Financial Framework (section 3.2) and in particular the Councils Corporate
Procurement Strategy, approved in November 2005 (a copy has been made
available to each Head of Service). A simple guide to procurement has also
been produced by the PPPM, and is available on the Councils intranet.
4. The Procurement Strategy sets out clear procedures that must be followed for
all contracts, including those for consultants. This protocol is not a substitute
for compliance with those procedures rather it is intended to provide further
guidance on them in the particular case of consultancy appointments.
Approval Route
5. In accordance with Standing Orders, all consultancy contracts over 25,000

must be signed off as Band A decisions (Executive Director in consultation with
Cabinet Member). Below this level approval can be by recorded officer
decision (Executive Directors / Heads of Service). This pro forma is intended to
help the process of approval in either case.
6. Clearly if the consultancy is part of a bigger project e.g. part of Capital Project
needing Cabinet approval, then that approval route will take precedence but
the same checks should still be undertaken.
Checklist required as part of Approval
7. For each consultancy appointment you should address the questions shown in
the attached pro forma (Appendix 5A) either as part of the Band A decision
papers or as part of a recorded officer decision. By doing so the main issues
that require consideration when making such appointments should be covered.
Guidance notes on the pro-forma are also attached (Appendix 5B), including a
brief explanation of the requirements of the Procurement Strategy.
PRO FORMA TO APPROVE APPOINTMENT OF CONSULTANTS
Guidance on each of the points below is attached. Where appropriate, please

refer to the full copy of the Procurement Strategy (copies are with all Heads of
Service) or Standing Orders. If in doubt please contact PPPM or Corporate
Finance.
Appendix 5A
Pro Forma to Approve

Appointment of Consultants
The Decision to use external Consultant
1. Why is a consultant being used?
2. Do the skills exist in-house, through a Strategic Partner or any other

contractual arrangement? If not why (eg over capacity, specialist
skills)?
3. Has direct recruitment on a temporary or fixed term basis instead

been considered?
4. Has advice been sought on employment status from HR/PPPM/Legal

& Governance?
5. Is the budget available and suitable approvals in place?
Process and Procedures
1. Has the appointment complied with Standing Orders? In particular,

have an appropriate number and range of consultants been asked to
tender?
2. Has a proper process been followed in approaching the market?
3. Is the basis for and method of payment clear and concise and
related wherever possible to outputs and outcomes? Payments
based on inputs (e.g. hourly rates) should be avoided wherever
possible.
4. What evaluation process has been used to select the preferred

consultant?
5. Is the consultant an ex-employee of the City Council?
6. Is the consultant connected in any way to those awarding the

contract? (see guidance)
Outcomes expected
1. (a) Do the consultants have clear terms of reference?
(b) What are the main outcomes expected from their work?
Finance
1. What is the value of the contract? Over what period of time?
2. If payments exceed this at what level will further approval be sought

(+10% as a guideline)
Appendix 5B
Guidance Notes on
completion of Pro Forma
GUIDANCE NOTES ON PRO FORMA FOR APPOINTMENT OF

CONSULTANTS
The pro forma details the key factors that are required to be taken into account
when considering the appointment of consultants. This note provides additional
guidance for each of the points raised. It is recommended that this be used in
conjunction with the detailed guidance found in the Councils Standing Orders,
Financial Framework and Corporate Procurement Strategy.
The decision to use external consultants
1. Why is a consultant being used? A high level question, to be used as a

starting point. You need to use this question as a prompt answering the
following two questions in detail.
2. Do the skills exist In-House or through a Strategic Partner or other Existing

Contractual Arrangement? If such skills do exist, you need to
demonstrate why the decision has been made to engage external service
providers and any implications.
3. Has direct recruitment on a temporary or fixed term basis instead been

considered? Consideration should be given as to whether the timescale or
nature of the work means that direct appointment of staff on a temporary or
fixed term basis would be a cheaper or more effective use of resources.
If the answer to questions 2 and 3 is no, then the appointment of an external

consultant may be considered. Section 3 of the Procurement Strategy provides
detailed guidance on the process and the factors to consider. In addition the
following needs to be considered:
Process and procedures
1. Has the appointment complied with Standing Orders? Standing Orders section
C2 stipulates that the letting of contracts is dependent on the value of the
contract. Furthermore, as a supplement to Standing Orders, the Corporate
Contracts procurement guidance advises officers to complete a Band A
form if the contract is more than 25,000 or a Record of Delegated
Authority form if the contract is under 25,000.
2. Has a proper process been followed in approaching the market? Before

approaching the market, you need to have researched it and have answers
to certain key questions, such as:
What knowledge does the Council have or is available about the

market?
Has the service been tendered previously in whole or in part?
What can the market offer (investment, economies of scale, innovation,
supply of specialist skills and resources)?
Are references or benchmarking information available from other local
authorities?
Furthermore, the methods of approaching the market should be

commensurate with the regulatory framework, ie whether to apply the open,
restricted or negotiated procedure/competitive dialogue (advice is available
from Procurement, Partnering and Programme Management).
3. Have the consultants been given a clear terms of reference? You should
note that there are approved standard forms of contract and any further
advice should be sought from Procurement, Partnering and Programme
Management.
4. Is the basis for and method of payment clear and concise? The basis for
payment should be clear and agreed as part of the contract. Wherever
possible, it should link to outcomes, rather then to simple inputs such as
hours spent, so as to minimise risk to the Council. There are exceptions, but
a fixed rate will usually leave the risk of overruns with the consultant.
Obviously, any risk of a consultant padding a bid to allow for this risk have
to be avoided but if proper tendering is undertaken with a number of
bidders, this can be minimised.
5. What evaluation process has been used to select the preferred consultant?
The evaluation process of prospective applicants/contractors is undertaken
in order to:
1. Decide at the bidder selection stage whether applicants are suitable to

be invited to tender; and
2. A detailed and rigorous examination of the tender bids leading to the
contract award.
Additionally, there is reference to the Councils Standing Orders, section C2

that explains that the process of letting contracts is dependent on the value
of the contract.
6. Is the consultant an ex-employee of the City Council? As a general rule,

employment of ex-Council employees is discouraged, particularly when
they have left as a result of redundancy or retirement. It must be
ascertained whether or not the individual has worked for the Council. In
exceptional cases there may be a good reason why an ex-employee is
appointed, but this should be fully explained and open to scrutiny. You may
need advice on pensions issues where you are considering appointing
someone in receipt of a Local Government pension.
7. Is the consultant connected in any way to those awarding the contract? As

a general rule, employment of friends, relatives or partners of officers
involved in the decision or service area concerned is discouraged. In
exceptional cases there may be a good reason but this should be fully
explained and open to scrutiny.
Outcomes expected
1. (a) Do the consultants have clear terms of reference? As part of the contract
process consultants must be set a clear terms of reference against which
their performance can be measured. Terms of reference would normally be
drawn up as part of the initial decision to seek to appoint consultants and
shared with all those invited to bid.
(b) What are the main outcomes expected from their work? As part of the
appointment process, clear outcomes should be set that link to the terms of
reference and, where possible, the payments schedule.
Finance
1. What is the value of the contract? Over what period of time? There should be
a clear value put on the contract, either as part of a fixed price or an
assumed number of days work, if priced on an input basis. There should
be a clear timescale for the work and, if on a fixed price basis, an indication
of the expected days input.
2. If payments exceed this at what level will further approval be sought? There
will be circumstances where additional costs are incurred due to
unforeseen circumstances. Whether the cost of this is borne by the
consultants will partly depend on how the contract was framed (see pricing
issues above) but also by exercising judgement as to the circumstances.
As a rule of thumb, any increase of 10% or more should be reported back
through the same process that the original appointment was made. This
will ensure that cost increases are open to scrutiny.

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Sheffield City Council

Procurement Partnering and

The Procurement Guide

Introduction to procurement (pages 1 to 6);

Useful Contacts provides you with a useful list of contacts.

We hope you find this Guide of use.

SECTION 1 - INTRODUCTION TO PROCUREMENT

SECTION 2 USEFUL TOOLS

The Procurement Flowchart p7

SECTION 3 - USEFUL CONTACTS

General Contacts PPPM p23

Website Address for Council Standing Orders p24

Procurement can be defined as the responsibility for obtaining (whether by purchasing,

Procurement Policy Principles

The three key procurement policy principles are that:

we will always seek out the most economically advantageous offer in

there must be full compliance with the required legal framework

What You Must Do For Every Procurement

The appropriate authority to proceed;

If use of an In-House Provider, Strategic Partner or other similar Existing Contractual

Obtaining Procurement or Legal Advice when Required

Officers in Procurement, Partnering and Programme Management and Legal and

A Clear Management Audit Trail

The Four Key Stages

During this stage you will need to:

Identify and define your requirements;

During this stage you will need to:

Identify and assess the marketplace;

During this stage you will need to:

Look in detail at the bids or quotes submitted;

For further guidance on ordering or appointments see page 23.

IS THERE ANY IN-HOUSE PROVISION, STRATEGIC PARTNER, OR OTHER CONTRACTUAL ARRANGEMENT?

REFER TO PROCUREMENT, PARTNERING & OBTAIN DELEGATED YES

YES DOES THE CONTRACT

INVITE AT LEAST THREE COMPETITIVE

END OF PROCESS REFER TO PROCUREMENT, PARTNERING &

THE PROCUREMENT PROCESS MAP (TWO STAGE PROCEDURE)

Identify the procurement requirement and obtain appropriate authority

- Cabinet Report/Band A/Record of Delegated Authority

Prepare Market Brief

Advertise, seek and log expressions of interest

Prepare Invitation to Tender (ITT)

In response to written requests issue Market Brief and Pre Qualification

Shortlist from PQQs

Issue detailed ITT to shortlisted organisations. ITT to include

Form of Agreement / Contract

Receive Tenders back

Evaluate Tenders and arrange interview / presentation if required

Undertake appropriate post tender clarifications if and as required

Transfer contract to Contract Manager

Obtaining Authority Cabinet, Band A and Delegated Authority

A record of delegated authority

If in doubt consult Procurement, Partnering and Programme Management or Legal and

Band A Delegated Authority

A Band A delegation is appropriate if;

The tender is the most economically advantageous as judged against pre-determined

Authority from Cabinet

You should draft a Report to Cabinet if:

You dont currently have the budget to let the contract; or

Drafting the Specification

The type of goods or service you require;

Your specification should clearly define your requirements in respect of:

Dos and Donts when writing a specification.