Contract rules and laws

The rules and laws that apply to Fire Authority contracts

Fire Authority Governance

The Governance arrangements set out the procedures governing the contracting arrangements of the Fire Authority.  There are three sets of rules that regulate how the Fire Authority buys works, services and goods. These are:

  • Financial Regulations
  • The Contract Standing Orders
  • Scheme of delegation (delegation of decision making to officers).

More on governance and auditing can be found in the Fire Authority: Governance section.

European Union Directives (Public Procurement Regulations)

In addition to the above, the Fire Authority has to comply with national and European legislation.

The Fire Authority must be able to demonstrate Best Value in all its procurement, meaning "the optimum combination of whole life costs and benefits to meet the customer's requirements".  The Fire Authority, like all local authorities, has moved away from Compulsory Competitive Tendering (always buying the cheapest product or accepting the lowest tender) and although price is still important and forms part of the evaluation criteria, it also looks at quality and price to make sure that the product, service or works being procured is the most suitable whilst providing value for money for the Authority.

The European Procurement Directives must be adhered to for any public sector organisation.  The effect of the Directives and Regulations is:

  • To require the Fire Authority to advertise tenders for all its contracts over the current threshold.  Detail on this can be found in the Official Journal of the European Union. The value of a contract is not based on the annual value but the amount that the Fire Authority will have to pay to the supplier over the whole life of the contract (including any possible extension)
  • To require the Fire Authority to ensure that the specification is not drawn up in such a way as to make it any more difficult for a non-UK company to bid for the contract.

There are four ways in which procurement can be carried out under the Directives and Regulations.  These are:

1.  Open Procedure - where the Fire Authority advertises a tender and everyone who is interested is invited to tender

2.  Restricted Procedure - where the Fire Authority advertises for expressions of interest and draws up a shortlist of companies to be invited to tender from those expressing an interest

3.  Negotiated Procedure - where the procuring body negotiates with the bidder of its own choice. There are only very limited circumstances in which this procedure may be used. They are used mainly in connection with major outsourcing and Private Finance Initiative (PFI) contracts. There is more scope to use a negotiated procedure for service contracts than supply contracts.

4.  Competitive Dialogue - where the Fire Authority presents or describes a need and initiates dialogue with suppliers, who will identify and determine the best solution to the need. This method is used in preference to the Negotiated Procedure. Aspects of the contract can be discussed with the chosen candidates during this dialogue.  However, the Authority must not reveal any solutions or confidential information to another party. 

The above is just a brief outline of procedures and further information can be sought by contacting the Contracts and Procurement team on 01480 444 365.