Tender process

Competitive tendering

In order to achieve value for money we use a range of methods to procure products and services.  The choice of method depends on the type of product or service and its overall value.  However, competitive tendering is our overall preferred course of action for supplier selection and is generally utilised in the BBC when the value of the goods and services to be purchased exceeds £50,000.  The following documents are usually used.

• Covering letter
• Instructions to tenderer
  Detailing administrative procedures relating to the tender e.g. dates and times, method of tender return, evaluation criteria and where tender queries should be directed.
• Invitation to tender, including:
  Specification of requirement
  Service level agreement
  Commercial, operational, corporate social responsibility and health & safety questionnaires
  Pricing schedule

EU tendering

Where the overall value is likely to exceed certain financial thresholds then the BBC is required to follow procedures laid down in the EU Public Procurement Regulations.

Within these regulations there are a number of tendering approaches that can be used and are outlined below.

• Open procedure
  The open procedure is a one-stage bidding process, where all interested service providers responding to an advert will be invited to submit a tender.  The advert states where interested parties obtain tender documents and the last date when tenders will be accepted.  The open procedure is not commonly used within the BBC.
• Restricted procedure
  This is a two-stage bidding process in which potential contractors expressing an interest in bidding are evaluated first.  A shortlist is then drawn up from the evaluation exercise for the sole purpose of inviting bids.  The public notice gives details on information that must be submitted by the supplier or on how to receive the necessary documentation to express an interest in being short listed.  The restricted procedure is most likely to be applied where large numbers of applicants are anticipated.
• Competitive dialogue procedure
  A new procedure to be used for complex contracts where the open or restricted procedure is not appropriate, but there are no grounds for using the negotiated procedure.   An OJEU advert is issued, followed by a competitive dialogue procedure with bidders to identify the best solution (this is not permitted under the open or restricted procedures).  Bidders then submit bids which may be clarified but negotiation (in the sense of the negotiated procedure) is not permitted.
• Negotiated procedure
  This is when the BBC, under certain limited circumstances, negotiates with one or more organisations of its choice following a process of pre-qualification.  In order to reduce numbers to a manageable level for the purposes of tendering (when using either the restricted or negotiated procedures), expressions of interest from potential suppliers are subject to a process of pre-qualification.

Pre-qualification
Potential suppliers must demonstrate their financial, commercial and technical capabilities to fully meet the contractual requirements under tender.  The BBC also takes account of a company's past performance and experience with reference to contracts of a similar nature, both with the BBC and other organisations.  We also look for clear demonstration of commitment to equal opportunities in employment, to the environment and to health and safety (where appropriate).

Evaluation of tenders

In order to preserve the integrity of the competitive process, it is imperative that the evaluation of proposals is undertaken objectively, consistently and without bias towards particular suppliers.  Tenders are usually evaluated against a pre-determined set of criteria.  Scoring and weighting of criteria is determined at the same time the tender is compiled.  From 31 January 2006 the relative weightings will be communicated to potential suppliers for all procurements carried out under the EU Public Procurement Regulations. It is very unlikely that contracts are awarded on the basis of price alone.  The BBC will only award a contract to the supplier(s) it considers offers the best value for money.  For this reason, the main evaluation criterion will be the "most economically advantageous tender" as determined by the criteria and sub-criteria set out in the tender documents.  The award criteria vary depending on the type of contract.  Examples of award criteria, in addition to price, are technical merit, flexibility to future changes to requirements, speed of project delivery, sustainability, quality and equalities.

The BBC may ask for references from previous customers, bankers and business information companies and, in some cases, arrange inspection visits to the company and/or its work sites.

Award of contract

An evaluation team will examine each tender received and make recommendations as to which tender represents best value for money.  Once the contract has been awarded, both the successful and unsuccessful tenderers will be notified. Unsuccessful tenderers may obtain feedback through written application to the BBC.  From 31 January 2006 a ruling for all procurements carried out under the EU Public Procurement Regulations requires a 10 day stand-still period between the notification of the successful bidder and the contract award.

A contract award notice will be placed in OJEU (if applicable) within 48 days of the contract being awarded.