About FCO procurement

How is procurement organised in the FCO?

We mainly operate as a decentralised procurement organisation. This is partly because we're a global organisation with UK headquarters in London and Buckinghamshire. We also have a network of more than 200 Embassies and other Posts around the world.

At our centre is the Corporate Procurement Group, based in London. The Group is mainly responsible for:

• procurement policy
• implementing and developing best practice across the organisation
• liaising with the Office of Government Commerce.

Our Corporate Procurement Group is also involved with all contracts of significant value or complexity.

How do we operate?

The goods and services we buy are on the basis of value for money for the taxpayer.

• we work using competitive tendering
• we comply with our legal and international obligations, including the provisions of the EU Procurement Directives

Our annual procurement expenditure is in the region of £500 million.

Supply solutions

The purchasing division is based in Milton Keynes and is part of FCO Services, our service organisation.

It provides a range of services to our UK departments and Posts overseas and manages a range of centrally administered contracts for frequently used goods or services — for example, stationery, travel services and UK facilities management.

Beyond these central arrangements, our UK departments and Posts overseas have the discretion and budgets to buy what they need following guidance issued centrally on procurement procedures.

Business ethics

We apply the highest ethical standards to all our commercial and procurement activity. All staff with purchasing responsibilities work to an ethical code which supports the principles of integrity and impartiality.

Competitive tendering

We purchase our requirements through competition wherever possible. The type of competition ranges from a straightforward comparison of simple quotations to a full formal sealed tender process and depends largely on the estimated lifetime value of the purchase in question. The relevant financial levels are as follows:

• estimated contract value up to £1,000 — Orders may be placed on reliable and good value suppliers on the basis of a single oral quotation.
• estimated contract value between £1,001 - £3,000 — A minimum of three written or oral quotations
• estimated contract value between £3,000 - £15,000 — A minimum of three written quotations based on a written specification of the requirements
• estimated contract value between £15,001 and above — Formal sealed tender process with 3 - 6 bidders. Contracts let under the EU Procurement Directives require a minimum of 5 bidders.

What goods and services we buy

We buy a wide variety of goods and services. These include:

• the design and construction of new embassies overseas
• worldwide travel and freight services
• communications and IT equipment and services
• security guarding services in the UK and overseas
• a range of consultancy advice
• armoured vehicles for use in trouble spots
• domestic services such as stationery, mail services and office machinery.

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