Rules and regulations
Public contract regulations 2015 (PCR 2015)
Please note; The current PCR15 are due to be replaced following the publication of a post Brexit procurement green paper. The information below will be updated accordingly, as soon as we receive direction from central government
The Public Contract Regulations require the Authority to follow detailed procedures for all procurements equal to or above certain financial thresholds.
Current procurement thresholds
- Supplies - £189,330
- Services - £189,330
- Works - £4,733,252
These thresholds are valid from 01 January 2020 and are subject to change every two years.
The council is also obliged to follow some basic principles.
For supplies and services over a specific contract value, a tender notice must be published via ‘Find a Tender, the UK’s e-notification service. This replaced the Official Journal of the European Union (OJEU) from 1 January 2021.
Tenders must be invited in accordance with one of the prescribed procedures either Open, Restricted, Competitive with Negotiation, Competitive Dialogue, Innovation Partnership or Light Touch Regime.
Each of these procedures imposes minimum time scales covering the tender activities to ensure that reasonable time is given to interested parties to respond to advertisements and prepare submissions.
Whilst there is no prescription on local authorities to tender out specific services, all Local Authorities have a duty, under best value legislation, as laid down by Part 1 of the Local Government Act 1999. This ensures continuous improvement and having regard to economy, efficiency and effectiveness.
Cheltenham Borough Council contract rules
Procurement activities must also comply with the council’s own contract rules and corporate procurement and contract management strategy.
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Estimated contract value |
Contract requirements |
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Up to £10,000 |
The budget holder can purchase from the source that offers the best value for money to the authority. This could be demonstrated by the obtaining of two written quotes, where possible and via the procurement portal where appropriate Contracts shall be by purchase order with the relevant standard terms and conditions attached or otherwise drawn to the attention of the supplier |
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£10,001 to £25,000 |
At least three written quotes shall be sought through the portal using the request for quote template. Where a procurement opportunity with a value estimated to be £25,000 or above is advertised, it must be also be advertised on contract finder using the portal within 24 hours of any other adverts appearing together with unrestricted and full direct internet access to relevant contract documents. A pre-qualification stage is not permitted but appropriate suitability questions may be asked in the request for quote. Contracts shall be by purchase order with the relevant standard terms and conditions attached or otherwise drawn to the attention of the supplier. If the lowest quote received exceeds £25,000 the contract shall not be awarded unless the contract is below the relevant threshold and either:
Unless a waiver or approval of the Section 151 officer is given a new procurement will be required which must be carried out in accordance with the above £25,000 to threshold procedures. |
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Above £25,000 to threshold |
A full competitive procurement shall be undertaken though the portal using an invitation to tender. The opportunity must be advertised on contract finder (within 24 hours of any other adverts appearing and/or public advertisement as determined by the authorised officer) together with unrestricted and full direct internet access to the relevant contract documents. A pre-qualification stage is not permitted except for procurements of works contracts above the Threshold for supplies and services. A PAS91 pre-qualification questionnaire must be used. A formal written contract prepared or approved but the authority’s solicitor must be used. If the lowest tender received exceeds the relevant threshold then the contract shall not be awarded. A new procurement will be required which must be carried out in accordance with the threshold and above procedure. |
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Threshold and above |
A full competitive procurement shall be undertaken through the portal using an invitation to tender. Procurement opportunities shall be advertised:
The procurement adviser, in consultation with the authority’s solicitor, shall advise on the most appropriate procurement procedure to be used when conducting a procurement. The regulations set out the permitted procurement procedures; the two most common procedures are:
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