Procurement Regulatory Framework

Policies and Procedures

Procurement in the public sector is governed by a number of statutory requirements such as the Council’s Contract Standing Orders, and EU and National Procurement Directives. Contracts are awarded on the principle of either the lowest cost or the most economically advantageous as determined by the criteria relevant to the type of supplies, services or works required.

Contract Standing Orders

Contract Standing Orders May 2017 provide the legal and operational procurement framework setting out the rules which the Council must follow in seeking tenders and letting contracts. They ensure that the Council achieves value for money in the way it spends public funds; that it complies with the regulations that govern the spending of public money; and procures in an open and transparent way.

In order to comply with these regulations and principles, staff procuring on behalf of the Council are required to adhere to the following procurement procedures:

Estimated Value

Procedure to Follow

Less than £15,000

Is there a contract in place?
Yes – Use contract.
No – 4 written quotes required. Use Quick Quotes for values above £5,000.

Above £15,000 to EU Threshold Level

Advertise Opportunity on Public Contracts Scotland Portal, and on Council website. If value is below £50,000 and requirements are well specified Quick Quotes may be used.

EU Directives Thresholds

Advertise on Public Contracts Scotland Portal and the Official Journal of European Union and/or any other route considered appropriate.

EU Procurement Directives

EU Procurement Directives are the European Union rules that govern public sector contracts above a certain value to ensure procurement is fair, transparent, and open to competition across all member states.

These values are referred to as thresholds and are updated every two years.  The European Directives are enacted in Scottish Law by Statutory Instrument 2006 No.1 (as amended).

Contracts above the threshold must be advertised in the Supplement to the Official Journal of the European Union and this is achieved through advertising on the Public Contracts Scotland Portal.

The new EU public procurement thresholds launched on 1 January 2018, and will be in place until 31 December 2019.

Supplies Contracts

Service Contracts

Works Contracts

£181,302 

£181,302 

£4,551,413

For further information on the EU procurement directives please refer to Public Procurement Legislation.

Scottish Government Procurement Review

In March 2006 the Scottish Government completed a review of public procurement as part of its Efficient Government initiative. The review, undertaken by John McClelland, addressed the current structure and organisation of procurement across the Scottish Public Sector as well as exploring methods for greater efficiency gains through greater collaboration.