Directors must determine who within each directorate is authorized to order, commission or buy goods, services or works on the Council's behalf, and will specify the limits to that authority. Both names and limits must be notified to the Director of Finance and information, who shall maintain a complete list.

Within approved budgets, Directors may authorise any member of their staff to place orders against call-off contracts.

For contracts of strategic importance or those which might be politically sensitive that may, for example, involve the transfer of Council employees to a contractor, Directors must:

� seek a decision from the Executive as to whether tenders are to be invited;

� once tenders have been evaluated, seek a further decision from the Executive as to whether a contract is to be awarded; and

� seek to involve Members in decisions during the tender process, for example by determining the contract award criteria.

All managers and staff must also observe the rules governing the procurement of Information, Communication and Technology (ICT) systems, including telecommunications systems which require that the ICT Manager must be informed of any proposal to buy ICT hardware or software including telephone systems which has a total life cost of more than �25,000.

2.2 The Competitive Process

In principle, the rules for higher-value orders and contracts are stricter than those of lower-value. This is so that the costs of a more thorough, complex process are proportional to the potential benefits.

In this context, the value of a contract means the estimated total monetary value over its full duration (ie its full life cost, not the annual value). Where the duration of a contract is indeterminate, this will be taken to be the estimated value of the contract over a period of four years.

The monetary thresholds at which the different rules apply are summarised at Appendix C.

Contracts for consultancy services

For the purposes of these CSOs only, consultancy services are subject to the same monetary thresholds as works contracts, except that contracts for consultancy services with a contract value in excess of �154,000 are subject to the full tender procedures governed by the EC Services Directive (see 2.9 below).

2.3 Aggregating purchases

Every effort should be made to make the best of our buying power by aggregating purchases whenever possible. On no account should any requirement be split in an attempt to avoid using the proper procedure under these CSOs or to avoid complying with EC directives. Where a recurring pattern of purchases can be seen for like supplies, services or works, consideration should be given as to whether one or more call-off contracts would represent better value in terms of price, service, invoicing or other administration costs. Where the estimated total life cost on a given category of supply or service exceeds �154,000 all such requirements must be advertised under EC Directives.

For aggregated requirements with an estimated value at or over �460,000 (excluding works contracts), a Prior Indicative Notice (PIN) must also be placed in the Supplement to the Official Journal of the European Communities (OJEC) once annually.

2.4 Using call-off contracts

Call-off contracts are those where prices and terms are agreed with a supplier for an estimated quantity of supplies, services or works without commitment until confirmed by a separate purchase order. They offer benefits of bulk-buying, improved service and reduced administration costs. Details of countywide call-off contracts can be found in the Guide to Purchasing and Contracts or on the Council's Intranet.

Call-off contracts for supplies and services must be used where they exist, regardless of value.

Call-off contracts must be competitively tendered by means of the procedure appropriate to its estimated contract value.

Some call-off contracts and framework agreements have been negotiated by central Government agencies for use by all public authorities. The use of these is encouraged and authorised, except where our own call-off contracts exist for these supplies and services.

2.5 Low-value transactions

For transactions valued at or below �3,000 (�5,000 for works) competitive quotations are not required, though a written quotation must be obtained from the supplier except where the supply is the subject of a published price list or catalogue. A faxed or e-mailed quotation is acceptable in these cases. A formal purchase order must be issued specifying the supplies, services or works and setting out prices and terms of payment. If telephone, faxed or e-mail orders are placed, they must be confirmed by an official order, within 24 hours.

Authorised Officers must still seek to achieve value for money when buying low-value items. This can be demonstrated by routinely testing the market at least annually and by maintaining evidence of any such market testing.

2.6 Intermediate-value transactions

For transactions valued over �3,000 (�5,000 for works) but at or below �50,000 (�75,000 for works), at least three written quotations must be invited. Either a formal contract must be entered into or a formal purchase order issued as appropriate, specifying the supplies, services or works and setting out prices, terms and conditions of contract and terms of payment. Faxed or e-mailed quotations are acceptable in these cases.

2.7 Additional rules for works transactions

For all works transactions regardless of value, a contractor must be selected who:

(a) can confirm a business contact address and telephone number;

(b) has an acceptable level of public liability insurance (minimum �5m);

(c) is registered for tax and holds a valid certificate (where appropriate);

(d) is capable of undertaking the work safely and competently and is a member of a recognised trade association, eg, NICEIC or ECA for electrical installation works or CORGI for gas installation works.

By way of assistance, the Property Services Manager keeps:

(a) a standing list of contractors who, following financial and other checks, are deemed suitable to be considered for employment on our building projects; and

(b) a register of 'dayworks' firms who have tendered hourly rates for undertaking low-value maintenance and repair works.

Service Managers should note that the inclusion of a contractor on these lists is no guarantee of its quality or suitability for any particular project. Advice should be sought from Property Services on suitable contractors for specific works.

2.8 Full tender procedures for higher-value transactions

For transactions valued at over �50,000 (�75,000 for works) a formal tender process must be conducted in the manner outlined below, and must comply with the EC procurement rules as set out in paragraph 2.9 if they exceed EC thresholds.

One of three tender procedures; Open, Restricted or Negotiated should be selected as the most appropriate for the transaction. These are designed to be essentially the same as the procedures described in EC Directives in order to provide consistency.

Open Procedure

Open tendering, where anyone can submit a tender, uses the following procedure:

The advertisement must be placed in either the local or national press and/or trade journals in order to target the appropriate market. An advertisement should also be published on the Tenders page of the Council's website.

The advertisement should specify a time limit (minimum 14 days, but longer for values which exceed EC thresholds) within which interested parties must express their interest in tendering. After the expiry of this period, invitations to tender should be sent to all those expressing an interest, specifying a period of not less than three weeks (but also longer for EC contracts) for the return of tenders.

Restricted Procedure

Restricted tendering, where a number of tenderers are selected from those who express an interest, is identical to that for open tendering, except that:

(a) the advertisement should state that a restricted tendering procedure will be used;

(b) the advertisement should specify the information required from interested parties when expressing their interest to be used in the shortlisting process (this may be by their completion and return of a pre-qualification questionnaire);

(c) the period allowed for expressions of interest must be at least 37 days if the contract value exceeds EC thresholds;

(d) on the date specified in the advertisement, invitations to tender should be sent to no less than four applicants selected by means of pre-determined, objective selection criteria (or all of them where less than four applicants meet the criteria). The invitation to tender should specify a period of not less than three weeks for the return of tenders (40 days for tenders governed by EC directives).

Negotiated Procedure

This procedure is identical to that for the Restricted Procedure, except that post-tender negotiation is permitted, provided that:

(a) the advertisement states that a negotiated tendering procedure will be used and that the Council reserves the right to enter into post-tender negotiations on any aspect of the tender;

(b) all post-tender negotiations are conducted in a manner which provides equal opportunity for all tenderers and which maintains the highest standards of probity;

(c) all post-tender negotiations must be personally conducted by a person to whom the appropriate level of delegated procurement authority has been delegated by the relevant director;

(d) all post-tender negotiations must be fully documented and kept on file as evidence to support the action taken; and

(e) at the conclusion of negotiations, all tenderers should be invited to submit a best and final offer under the same procedure as for the receipt and opening of tenders below.

Guidance on the effective use of the Negotiated Procedure can be found in the Guide to Best Procurement Practice.

2.9 The EC Directives

Additional requirements for transactions valued over EC thresholds

Contract values above which procedures governed by the EC Directives apply are:

Procedures governed by the EC Directives

Under EC Directives, the contract may be tendered under the Open, Restricted or, in exceptional circumstances, the Negotiated procedure. These are essentially the same as the procedures for contracts valued below EC thresholds but with the additional requirements given below. The EC Directives are very long and only the principal requirements can be given here. If in doubt, advice should be sought from the Purchasing Manager.

For each contract, except where indicated below, a Contract Notice must be published in the Supplement to the Official Journal of the European Communities (OJEC). Advertisements published additional to this:

(a) must not appear in any form before a Contract Notice is transmitted to OJEC; and

(b) must not contain any information additional to that contained in the Contract Notice in OJEC.

Minimum timescales relating to tender procedures governed by the EC Directives are shown in the table at Appendix D. Where a Prior Information Notice (PIN) announcing a forthcoming Contract Notice has been sent to OJEC between 52 and 365 days before the Contract Notice is sent, reduced timescales may apply. These are also shown at Appendix D.

Use of the Negotiated Procedure governed by EC Directives

Advice should be sought from the Purchasing Manager at the earliest opportunity before commencing a tender process governed by EC Directives using the Negotiated Procedure.

Under EC Directives, the Negotiated Procedure may only be used for contracts valued at or over EC thresholds in exceptional circumstances where:

(a) the Open or Restricted Procedure has been used but was abandoned owing to non-compliant (ie, unacceptable or irregular) tenders; or

(b) the contract is for a service and the precise nature of the service required cannot be clearly specified or accurately priced (eg, some PFI or PPP contracts, bespoke software applications, insurance services, intellectual and artistic services); or

(c) the contract is for works to be carried out purely for the purpose of research, experiment or development.

Additional rules for service contracts governed by EC Directives

Under EC Directives, services fall into two categories:

(a) Priority Services (or 'Part A' services), which must be advertised in OJEC (most services fall into this category); and

(b) Residual Services (or 'Part B' services), for which a Contract Notice in OJEC may not be necessary, though European Standards must be specified where these exist and a Contract Award Notice must be placed in OJEC no later than 48 days after the contract is awarded.

The lists of Priority and Residual services are reproduced on the Council's Intranet site. Detailed advice should be sought from the Purchasing Manager where it is believed a service falls into the category of Residual Services.

2.10 Submission of Tenders

(a) Every invitation shall state that no tender will be received unless it is enclosed in an official sealed envelope or with an official label, supplied by the Council, on a sealed envelope which shall bear the word "Tender" - followed by the subject to which it relates. The closing date for tenders and the subject to which they relate should be notified to Customer Services, County Hall.

(b) The envelopes shall be addressed to the Director of Corporate Services, and shall be sent by post or shall be handed to a designated Officer in the Corporate Services Directorate who shall give an official receipt therefor. All tenders shall be numbered consecutively as received and shall be recorded by the Director of Corporate Services and shall remain in his custody until the time appointed for their opening.

(c) Unless no tenders are received, no tender received after the time and date specified in the invitation shall be accepted or considered unless there is clear evidence of it having been posted by first class post at least the day before tenders were due to be returned.

(d) Persons tendering shall not be allowed to alter their tender after the date and time fixed for the receipt thereof. Arithmetical errors may be corrected, provided that the correction does not alter the total tendered sum to the Council's detriment.

(e) Tenders submitted by way of facsimile transmission are not permitted although electronic communication may be considered in accordance with paragraph 5 below.

(f) Where tenders are not the subject of a single tender price, tenderers shall be required to submit two copies of the relevant Schedules. The second copy shall be retained by the Director of Corporate Services for a period of six months from the expiration date specified for delivery.

(g) Each invitation to tender shall require the tenderer to give an undertaking that the amount of the tender has not been calculated by agreement with any person or body, or that the amount of the tender has not been communicated to any person or body other than the Council and will not be so communicated until after the Council has published the tender results.

(h) In this Standing Order the phrase "Director of Corporate Services" shall include the Head Teacher of a school with a delegated budget in respect of tenders which are a charge to delegated budgets within the terms of the Council's Scheme for Local Management of Schools.

2.11 Opening of Tenders

(a) Tenders received shall only be opened after the expiration of the time limit specified for the delivery. All tenders will be opened at the same time by the Director of Corporate Services or an Officer designated by him for the purpose in the presence of a member of the Council, and in the case of a tender in respect of an item delegated to School Governors a member of the Governing Body if they so wish, who shall immediately initial and date them.

(b) The Director of Corporate Services or an Officer designated by him shall, at the time that the tenders are opened, record in a register maintained for the purpose:

The nature of the goods or materials to be supplied or the work to be performed.

The name of each person by or on whose behalf the tender was submitted.

The amount of the tender or in the case of a tender not expressed as a single tender price, a reference to the second copy of the tender retained under Standing Order 2.10 (f).

The date and time of the opening of the tender.

The names of all persons present at the opening of the tenders.

(c) The register of tenders received shall not be destroyed without prior approval of the Director of Finance and Information.

(d) The Director of Corporate Services or an officer designated by him, shall after completion of the details required in (b above) hand over the tenders received to the appropriate Director, or a designated officer, who shall sign the register as acceptance of the tenders.

(e) The Director of Corporate Services or appropriate Director, shall be responsible for the safe custody of tenders when opened.

(f) Details of tenders received shall not be communicated to any person or body without the express authority of the Director of Corporate Services until after the Council has communicated the award of the contract to the successful tenderer.

2.12 Evaluating tenders

Where written quotations are invited for contracts valued at or below �50,000 (�75,000 for works) then the bidder submitting the lowest price compliant bid should be awarded any resulting contract, unless alternative pre-determined criteria are detailed in the document used to invite bids.

For contracts valued over �50,000 (�75,000 for works) and for all contracts governed by EC Directives, a more complex Best Value tender evaluation procedure based on the identification of the Most Economically Advantageous Tender ('MEAT') must be used in preference to a price-only evaluation.

This evaluation involves scoring tenders objectively by a panel of three or more officers and/or independent experts using criteria which should:

(a) be pre-determined and listed in the invitation to tender documentation in order of importance;

(b) be strictly observed at all times throughout the tender process;

(c) reflect the principles of Best Value;

(d) include price;

(e) consider whole-life costing, particularly in the case of capital equipment where the full cost of maintenance, decommissioning and disposal should be taken into account;

(f) be capable of objective assessment;

(g) be weighted according to their respective importance;

(h) include, where applicable, the quality of the tenderers' proposals to transfer staff under the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations 1981; and

(i) avoid discrimination or perceived discrimination on the basis of nationality, or other discrimination which is contrary to the Council's Equality Opportunities Policy.

All tenders for 'design and build' contracts must be evaluated using this MEAT tender evaluation methodology.

Where this evaluation methodology is used, any resulting contract must be awarded to the tenderer who submits the most economically advantageous tender, i.e., the tender that achieves the highest score in the objective assessment.

Where a Negotiated Procedure has been used and post-tender negotiation has been entered into, all tenderers should be invited to submit their best and final offers at the conclusion of negotiations under the same procedure as for the receipt and opening of tenders above. In this case, the best and final offers should be evaluated by revisiting the objective scoring process and revising scores as appropriate.

2.13 Awarding Contracts

(a) A tender may be accepted by the appropriate Director or Governing Body if it is the 'Most Economically Advantageous Tender 'subject to :

All requisite Council approvals having been obtained and (where appropriate) any necessary Government Department consent having been given.

All appropriate loan or other financial approvals having been granted.

It being within total financial provision approved by the Council.

Planning approval having been obtained and entry on to any land in question having been obtained.

(b) Where a tender has been accepted by the appropriate Director or Governing Body he, or they, shall notify the Director of Corporate Services in writing of his/their decision. A tender other than the 'Most Economically Advantageous Tender 'shall only be accepted by the Executive after it has considered a report by the appropriate Director. In such circumstances the contract shall not be awarded until after the relevant call-in period has expired.

(c) 'Most Economically Advantageous Tender ' means the lowest if payment is to be made by the Council and the highest if payment is to be received by the Council.

(d) All contracts awarded under EC Directives, including contracts for Residual services, must be announced by means of a Contract Award Notice in OJEC transmitted no later than 48 calendar days after the date of award.

(e) The Director of Finance and Information shall be notified of the contract award.

(f) Single tenders may only be accepted after a waiver has been obtained for this purpose under the procedure set out in paragraph 6 below.

(g) In this Standing Order the phrases "Director of Corporate Services" or "Director" shall include the Head Teacher of a school with a delegated budget .

2.14 Essential conditions of contract

(a) All transactions must use an appropriate model form of contract approved by the Legal Services Manager or a form determined by the Service Manager after consultation with Legal Services.

(b) Where a contract is for services estimated at a value over �25,000 and the services are of an unusual or complex nature, Legal Services should be consulted to produce a suitable set of conditions of contract before inviting tenders.

(c) Where a contract is considered to be of a strategically important or politically sensitive nature or where the extended limitation period would be of value such as in construction contracts, Legal Services should be consulted as to whether the contract should be executed under seal.

3. Every contract at a value greater than �25,000 must be made in writing and unless under seal, must be signed by a person authorised to do so (see 2.1 above).

(a) Every contract, and official orders for items under �25,000, must clearly and carefully specify the supplies, services or works to be supplied, the agreed programme for delivery and the price and terms for payment together with all other terms and conditions that are agreed.

(b) Every contract must also include certain clauses to protect the Council from fraud and to ensure that contractors understand what the responsibilities of the Council are when they are acting on the Council's behalf. The required clauses are given at Appendix F.

3.1 Using standing lists

A standing list is a list of approved contractors or suppliers qualified for invitation to tender for works or services.

For works contracts, use of the Government's recommended register of qualified construction contractors, Constructionline, is encouraged where appropriate.

Monetary limits on the use of standing lists

For supplies and services (including consultancy services), standing lists may be used to invite tenders without advertising if the pre-estimated whole life value of contracts is at or below �154,000. Where the total is expected to exceed this amount, tenders may be invited using the standing list but each requirement must also be advertised under the EC Directives (see 2.9 above).

For works, standing lists may be used to invite tenders without advertising where each individual transaction is estimated to have a total value at or below �200,000. (NB: For works the rule applies to the transaction).

When contracts for supplies, services or works are advertised, the criteria for selecting tenderers and the contract award criteria must be the same for those who respond to the advertisement as for those on the standing list.

Compiling standing lists

Standing lists must:

(a) be compiled and maintained by the appropriate Service Manager or by his/her named delegate (see 2.1 above);

(b) be approved by the Service Manager in consultation with the appropriate Executive Member; and

(c) indicate, for each entrant, the categories of supplies, services or works and any maximum contract values for which approval has been given.

At least four weeks before such a list is first compiled, and thereafter every three years, an advertisement inviting applications for inclusion in the list should be published on the Tenders page of the Council's website. The advertisement should also be placed in either the local or national press and/or trade journals in order to target the appropriate market.

Once the list is established, invitations to tender for a contract should be sent to no less than four entrants by means of the application of pre-determined and objective tenderer selection criteria (or all of them where less than four entrants meet the criteria).

4. Managing Contracts

4.1 For each transaction in excess of �50,000 (�,75,000 for works) the Service Manager must ensure that the following contract management processes are in place:

(a) monitoring performance of the contractor against the agreed programme and service level agreement, as appropriate;

(b) monitoring the continuing level of operational and financial risk (including the risk of fraud) to which the Council is exposed;

(c) facilitating the resolution of issues between the contractor and the key user(s); and

(d) ensuring the prompt settlement of invoices correctly and properly submitted by the contractor in accordance with the contract.

For particularly large and/or strategically important contracts, the Service Manager should appoint a dedicated Strategic Contract Manager prior to the award of the contract. This is so that he/she may be engaged in the tender process to develop a contract management regime that is both efficient and promotes continuous improvement in line with Best Value.

An Outline Job Description to aid this appointment is given at Appendix G.

5. Electronic Procurement

5.1 Methods of procurement which involve electronic processing (ie 'e business') instead of paper documentation are encouraged but must be approved by the Director of Finance and Information. This includes the use of Council credit or debit cards.

6. Electronic Tendering

6.1 Any tender documentation may be transmitted and received electronically, provided that:

(a) evidence is obtained and recorded that the transmission was successfully completed before the tender deadline;

(b) each tender submitted electronically is kept in a single secure mailbox that can only be opened by authorized officers ( and one for which a log of accesses is maintained).

7. Waivers from CSOs

7.1 An intention to seek a waiver from these standing orders must be reported in the first instance by a report to the Director's Board, explaining why the waiver is sought.

If the Director's Board reject the request, the tendering arrangements and any subsequent award shall comply with these standing orders.

If the Director's Board support the request, a report will be submitted to the Executive Committee seeking its approval to waive these standing orders. No action to award any such contract shall be made until any relevant call in period has expired.

Appendix A

Exceptions from CSOs

These CSOs apply to all the supplies, services and works we buy, with the following exceptions:

1. activities explicitly covered by other rules and regulations approved by a duly authorised body (eg, Contract Standing Orders approved by the Secretary of State for Education as part of the Isle of Wight Finance Scheme of Delegation for Schools);

2. works services or supplies commissioned in an emergency, as long as any expenditure in excess of �25,000 is reported to the next meeting of the Executive;

3. contracts for the acquisition or disposal of land and/or property (these are covered by separate rules);

4. Contracts of Employment;

5. works orders placed with utility companies (eg, for re-routing cables or pipework);

6. orders placed against call-off contracts which have already been let under these standing orders; and

7. orders placed against Government framework agreements (eg, G-Cat) that appear on a list maintained by the Purchasing Manager.

Appendix B

* Upon the advice of a Service Manager or the Director of Corporate Services.

** See 2.1 above

Appendix C

* A single written quotation must be accepted by means of a formal purchase order.

** A minimum of three written quotations must be invited from bona fide bidders.

*** These thresholds are updated every two years. The next update is scheduled for 1 January 2004.

NOTES

1 All the above figures exclude VAT.

2 Where a number of contracts for similar items are to be awarded, their aggregate value must be used to determine which procedures apply. The aggregation should take account of the size of similar contracts during the past twelve months adjusted for likely changes in quantity or value over the coming year or the projected aggregate value for the duration of the contract, whichever is longer.

Appendix D

Timescales for Tender Procedures Governed by EC Directives

* To the closing date for receipt of tenders

** Recommended minimum period

PIN Prior Information Notice

Requests from tenderers for additional information must be answered if they are received not less than six days before the closing date for the receipt of tenders.

Requests from unsuccessful tenderers for debriefing must be answered if they are received not more than 15 days after contract award.

Appendix E

Management Information

As a public authority, we have certain responsibilities for which we need to act collectively:

� to make the best of our shared buying power;

� to produce information to comply with the law; and

� to understand the big picture of our spending activity to allow us to plan, to measure and improve performance and to train and develop our people.

Senior Managers must ensure that management information in relation to their procurement activity is passed to the Purchasing Manager.

This should consist of:

(a) a list of named officers to whom procurement authority has been delegated, together with the corresponding levels of delegated authority;

(b) any amendments to the list in (1) above;

(c) upon award, details of all contracts, including call-off contracts, valued in excess of �50,000 (�75,000 for works), including as a minimum:

(i) a description of the supplies, service or works;

(ii) the name of the supplier or contractor;

(iii) the total value or estimated total value of the contract over its whole life;

(iv) The start and end dates of the contract.

Appendix F

Essential conditions of contract

1. Contractors will not be accepted for any works unless the Director or Governing Body concerned is reasonably satisfied :

(a) that the tenderer is registered with any appropriate regulatory bodies covering the industries concerned;

(b) that guarantees will be forthcoming from holding or parent companies, or through third party schemes such as those available to members of employers or trade association;

(c) with the tenderers arrangements for managing and supervising the work involved in the proposed contract;

(d) with the qualifications of tenderers staff or their suitability to undertake sensitive work ;

(e) with replies received to questions which the Secretary of State has specified designed to secure compliance with the Race Relations Act 1976;

(f) about tenderers past health and safety performances and their arrangements for making their obligations known to their staff.

2. Every contract shall be in writing and shall be prepared or approved by the Legal Services Manager. Every contract shall :

(a) specify the goods, materials or services to be supplied or the work to be executed;

(b) specify the price to be paid together with a statement as to the amount of any discount(s) or other deduction(s);

(c) specify the period(s) within which the contract is to be performed;

(d) specify such other conditions and terms as may be agreed between the parties;

(e) in appropriate cases at the discretion of the Director of Corporate Services provide for the payment of liquidated damages by the contractor where he fails to complete the contract within the time specified.

3. Every contract for the execution of any work or for the supply of goods or materials shall contain a clause requiring the contractor :

(a) to indemnify the Council against any claims for bodily injury to, or damage to property of, third parties;

(b) to secure the performance of the indemnity by entering into an insurance policy with an approved insurance company in a sum of �5,000,000 or such other sum as is considered appropriate by the appropriate Director in consultation with the Director of Finance and Information such sum to relate to any one occurrence or series of occurrences arising out of one event, the total number of events being unlimited;

(c) to produce, when required, satisfactory evidence that he is so insured;

(d) in relation to contracts for the supply of new vehicles and plant, to indemnify the Council in respect of liability for accidents causing injury, death or property damage as a result of their negligent acts or defects in their products.

4. (i) In every contract which exceeds �200,000 in value or amount the following shall apply :

(a) the contractor shall provide sufficient security for the due performance of every such contract;

(b) where the contract is for building, civil engineering or similar works the contractor shall enter into a Bond to the value of 10% per annum of the value of the contract with a Bank, Insurance Company or Guarantee Company approved or nominated by the Council.

(ii) A contract having a value of less than the sum of �200,000 referred to in Appendix F paragraph 4 (i) may be included within the terms of this Standing Order if in the opinion of the Director concerned and the Director of Finance and Information a Bond is necessary to safeguard the Council's position. The requirement under Appendix F paragraph 4 (i) for a Bond may be discounted if the appropriate Director and the Director of Finance and Information are satisfied that the Council's position would not be prejudiced by such a decision.

5. Where an appropriate British Standard Specification or British Standard Code of Practice issued by the British Standards Institution is current at the date of the tender, every contract shall require that all goods and materials used or supplied, and all the workmanship shall be at least of the standard required by the appropriate British Standard specification or Code of practice.

Nominated Sub-Contractors and Suppliers

1. Where a sub contractor or supplier is to be nominated to a main contractor the following provisions shall have effect :

(a) Where the estimated amount of the sub contract or the estimated value to be supplied by the nominated supplier does not exceed �50,000 (�75,000 for works) the appropriate Director or Governing Body shall follow the procedure laid down in Standing Order 2.6.

(b) Where the estimated amount of the sub contract or the estimated value of the goods to be supplied by a nominated supplier exceeds �50,000 (�75,000 for works) then, unless the Council determine in respect of any particular nomination that it is not reasonably practicable to obtain competitive tenders, tenders shall be invited in accordance with Standing Order 2.8 and 2.9. The terms of the invitation shall require an undertaking by the tenderer that if he is selected he will be willing to enter into a contract with the main contractor on terms which indemnify the main contractor against his own obligations under the main contract in relation to the work or goods included in the sub contract or contract of sale.

2. The provisions of Standing Orders 2.10, 2.11, 2.12 and 2.13 shall apply to tenders received under this Standing Order.

3. The provisions of Appendix F paragraph 2 (a) to (e) and paragraph 5 shall apply to contracts entered into with any sub contractor or supplier.

Anti-fraud and corruption, and Human Rights legislation

The following conditions must be included in every contract:

1. The Council shall be empowered to cancel the contract, and recover from the contractor the amount of any loss resulting from cancellation, if the contractor, or any person acting on his behalf, shall have, in relation to the contract or any other contract with the Council:

(a) offered, paid or given, directly or indirectly, any gift in money or any other form to any elected member, employee or agent of the Council as an inducement or reward; or

(b) committed any offence under the Prevention of Corruption Acts 1889 to 1916, or paid or offered any fee or reward contrary to Section 117(2) of the Local Government Act 1972.

2. Where this contract requires the contractor to make payments or to collect income on behalf of the Council, the Director of Finance and Information's rights of audit shall be reserved as if the contractor was an employee of the Council.

3. Each invitation to tender shall require the tenderer to give an undertaking that the amount of the tender has not been calculated by agreement with any person or body or that the amount of the tender has not been communicated to any person or body other than the Council and will not be communicated until offer the Council has published the tender results.

4. The Contractor in the performance of the contract shall comply with the provisions of the Human Rights Act 1998 in all respects as if it were a public body within the meaning of the Act. The Contractor shall indemnify or keep indemnified the Council against all actions, claims, demands, proceedings, damages, losses, costs, charges and expenses whatsoever in respect of any breach by the contractor of this clause.

Appendix G

Strategic Contract Manager: an Outline Job Description

JOB TITLE: Strategic Contract Manager

LINE MANAGER: Reporting within the department responsible for the contract

JOB PURPOSE:

The Strategic Contract Manager makes sure that all parties to the contract fully understand their obligations and fulfill them efficiently and effectively to maximise best value.

DIMENSIONS

The Strategic Contract Manager has a direct responsibility to ensure the contract charges are within the agreed parameters of the contract agreement. He/she also has direct responsibility for the monitoring of charges and the trend analysis of costs, which should be, provided for the user, ie the budget holder. He/she is not responsible for the operational budgets of Departments served by the contractor.

PRINCIPAL ACCOUNTABILITIES

The contract management function has two main interdependent parts:

� the performance of the contract and the establishment and management of various processes, procedures, and protocol that underpin the contract including the identification allocation and management of the risks; and

� the relationship between user and contractor, adopting the appropriate style and behaviour as the contract provides the foundation for the relationship between both parties.

The contract accountabilities will depend on the nature of the contract. The Strategic Contract Manager's remit may be extremely wide and will normally include:

� Managing the relationship

� Monitoring costs and values

� Reviewing and reporting performance

� Agreeing variations

� Authorising payments

� Dispute resolution where conciliation fails

� Keeping records and ensuring an audit trail

� Assessing and managing risk

� Encouraging continuous improvement

� Maintaining ethical standards

� Continuous planning

� Research the market and benchmarking

� Manage change from one contractor to another

� Maintain audit trails

� To ensure contracts have an equalities dimension (where applicable)

� To bring to the attention of contractors our good employment policies and procedures and to prevent our workers being subjected to any form of discrimination, harassment, victimisation or bullying.

RISK ASSESSMENT AND MANAGEMENT

� Constant review of risk assessment.

� Impacts of contract failure.

� Contingency planning for failure.

RELATIONSHIP AND STYLE

� Focus on agreed outputs

� Culture of Continuous Improvement

� Friendly but professional business relationships

� Both parties strive to achieve openness and trust

� Sharing information - solve problems early before they become critical

� Encourage innovation - both sides being proactive

� Confront poor performance - look for joint solutions

� Both parties work towards the achievement of mutual objectives

� Service delivered within the agreed time/cost/specification and standards

� Both parties are prepared to change but differences are respected and risks are appropriately apportioned

� Avoid contract management bureaucracy

� Arrangements in place for both formal and informal continuous dialogue

FUNCTIONAL RELATIONSHIPS AND PERSONAL CONTACTS

The Strategic Contract Manager has a direct responsibility to his/her line manager with a strong dotted line to the finance function of the department in which the contract is being managed. Additionally, the main day-to-day relationships are with the contractor and the users.

PERSONAL SPECIFICATION

The Strategic Contract Manager will require the following skills and competencies (assuming a contract value of around ,2m or more):

Technical/Professional Qualifications and Training

� Suitable institute certificates within the field of operations being managed

� Procurement training to a recognised standard.

Work Experience

� Minimum of five year's experience within the specialist area of provision

� Minimum of one year's experience in either managing an operation or contract of similar size.

Special Abilities and Aptitudes

� Analytical approach to information

� Excellent communication skills

� Chairmanship rather than ideas style

� Ability to find resolutions rather than confrontations

� Methodical and focused in an organised manner

� Calm, confident and assured demeanour.

SPECIAL CIRCUMSTANCES

Skills relating to the particular contract dependant on its nature.

Appendix H

Glossary of Terms

For the purpose of these CSOs the following terms have the meanings as set out below :

Best Value means having regard to the principles of Best Value and to the Council's policies in relation to Best Value and the 4 C's of challenge, compare, compete and consult. More information can be found in the Council's Best Value Toolkit.

Budgetholder means people delegated to hold budgetary responsibility at local level under financial devolution.

Call-off contracts are agreements with a supplier for the provision of supplies, services or works on agreed terms for a specific period for estimated quantities against which orders may be placed if and when required during the contract period. Council-wide arrangements for routine supplies and services and department-specific contracts, eg, block contracts placed by Social Services with care providers and term tenders for highways maintenance fall into this definition.

Contract Award Notice means a notice published in OJEC announcing the award of a contract under procedures governed by EC Directives.

Contract Notice means a notice published in OJEC advertising a contract (ie, pre-tender) under procedures governed by EC Directives.

Contract Value means the estimated total monetary value of a contract over its full duration (N.B. not the annual value). Where the duration of a contract is indeterminate, this will be taken to be the estimated value of the contract over a period of four years.

Council means Isle of Wight Council.

CSOs means Contract Standing Orders.

Executive means the Executive Committee of the Council.

Executive Member means an elected member who is part of the Executive.

Guide to Best Procurement Practice means the document issued by the Purchasing Manager describing best practice in procurement and contracting using the principles of Best Value.

ICT means Information and Communication Technology.

MEAT means Most Economically Advantageous Tender.

Member means an elected member of the Council.

Named Delegate means a person who has been authorised to buy things by a Service Manager.

OJEC means the Supplement to the Official Journal of the European Communities.

Prior Information Notice (PIN) means a notice in OJEC that either advertises annually a service or commodity on which our estimated annual spend is over �460,000 or announces a forthcoming Contract Notice. Where a Prior Information Notice (PIN) has been sent to OJEC between 52 and 365 days before the Contract Notice is sent, reduced timescales may apply (see Appendix D).

Service Manager means a member of the Head of Service, a Head of Function or a Head of a Direct Service Organisation.

Standing List means a list of approved contractors or suppliers qualified for invitation to tender for works or services.

Supplies, Services and Works should be taken as defined in the latest version of EC Directives.

Total Life Cost means the aggregated value of the contract over its intended duration, and if this is uncertain then over four years.

TUPE means the Transfer of Undertakings (Protection of Employment) Regulations 1981, governing the transfer of staff identified with an undertaking to and between successive contractors.