What is it all about?
According to EU legislation, all contracts from the public sector which are valued
above a certain threshold must be published in the Official Journal of the European
Union (OJEU, formally the OJEC).
The legislation covers organisations and projects which receive public money. Local
authorities, NHS trusts, Central Government Departments, Port Authorities are all
covered by the legislation and must advertise in OJEU if their contract is covered.
Some privately funded / managed contracts will also be covered - if a project is
in receipt of more than 50% public funds, it would also be covered by the EU legislation
(e.g. the Lowry Centre in Manchester and the Millennium Dome).
The term 'Journal' is misleading, as production of the hard copy version ceased
in 1997. It can now be accessed on CD ROM or via intermediaries such as Tenders
Direct.
Around 2500 new notices are advertised every week - invitations to tender, pre information
notices, qualification systems and contract award notices from over 80 countries
world - wide. Around 10% - 15% of these are from the UK and Northern Ireland.
What process is followed?
Where possible, at the start of each financial year, an authority issues a PIN notice
(pre information or periodic indicative notice) to indicate which contracts they
plan to tender for in the next year.
As contracts are due, individual invitations to tender are advertised in OJEU.
Following the award of a contract, an award notice is placed in OJEU stating the
details of the successful bidder(s).
Thresholds
The requirement to publish a notice is governed by the Public Procurement Thresholds
and an Authority must publish a notice if their total annual expenditure for goods
and services of a similar type exceed these thresholds.
What Procedures are followed?
The authority can elect, subject to the regulations, to follow one of three procedures
when issuing a notice. These procedures are:
-
Open - Any company may submit a tender in response to the notice.
-
Restricted - Each company must prove suitability to the contracting authority before
being invited to submit a tender.
- Negotiated - The authority negotiates the terms of the contract with one or several
companies. This procedure can only be used in certain circumstances.
Deadlines
The timescale from publishing a notice to deadline for tenders can be relatively
short - for an open procedure, the authority must allow at least 52 days between
sending the contract to OJEU and deadline for tenders. However it can take up to
12 days before the notice appears in OJEU, leaving the supplier only 40 days to
respond. Restricted and negotiated procedures have shorter deadlines, which can
be reduced further if the contract is urgent.
What Criteria are used to Evaluate Tenders?
Information used to appraise suppliers includes:
-
Financial (accounts, prices, etc.)
-
Quality systems (ISO 9000 etc)
-
Environmental policy (becoming a major pre-requisite for many authorities)
-
References
- Site visits may sometimes be used, though they are rare due to high costs and the
time involved
Making Contact
Many local authorities use approved supplier lists for their smaller contracts and
requests for quotes. Suppliers have to qualify to be on these lists. Being on a
list does not guarantee you will be awarded a contract, but this will put you in
a better position than someone not on the list - the buyer already knows you.
Many local authorities have Centralised Purchasing Units. While the unit may not
be responsible for all contracts, they will be able to put you in touch with the
right person in the organisation for you to talk to.
Can I Participate?
Before responding to an OJEU notice, ask yourself the following questions:
- Who is the client?
Have you had any prior experience with them, good or bad?
- Size of the project.
Is it within your capabilities?
- Timing of the project.
Can you do it in the time allowed?
- Geography of the project and the client.
Is it feasible?
- Previous successes.
Can you provide references from similar projects you have been involved in?
- Prestige of the project.
Is it in the public eye - will it get you valuable PR?
- The competition. Who are your competitors and what are your chances against
them?