Suppliers & tendering

How we select potential suppliers

We use a wide-range of sources to select potential suppliers.  We do not, however, maintain approved supplier lists.  Our main supplier sources include:

• our knowledge of the market in question
• existing suppliers to the  FCO or other Government Departments 
• suppliers who express an interest in bidding for FCO business 
• the Internet, advertisements and suppliers' catalogues 
• replies to contract advertisements 
• trade shows and exhibitions 
• trade associations, Chambers of Commerce and professional organisations 
• trade directories and specialist journals.  
  

Terms and conditions

We have a standard set of terms and conditions covering various types of goods, services and works.  Below are examples of model contracts and invitations to tender for FCO goods, services and consultancy:

Document Type	Usage	Additional Detail	Link (all links open in a new window)
Contract	Goods	Short-form (value not exceeding £100,000)	Model FCO Goods Contract Short Form
Contract	Services / Consultancy	Short-form (value not exceeding £5,000)	Model FCO Services and Consultancy Contract
Invitation to Tender (ITT)	Services / Consultancy	Medium-Form (value between £15,000 and £100,000)	Model FCO ITT Services and Consultancy
Invitation to Tender (ITT)	Services	For long-form contracts (value over £100,000)	Model FCO ITT Services Long Form

Model FCO Invitation to Tender documents for Services (long form - value above a whole life contract value of£80,000)(PDF, 193K)
The terms and conditions for Information Communication Technology and Works projects are likely to be based on the Office of Government Commerce (OGC) model agreements and the OGC Works suite of contracts, respectively.

Current contracts and opportunities

You can view a summary of our current contracts with lifetime values in excess of £80,000.00. You can also view our current opportunities on our contract adverts page.

Procurement process

Contracts for goods/services and works are let when required under the EU Procurement Directives, if the estimated lifetime value exceeds EU Thresholds.

As at January 2010 this is:

	Supplies	Services	Works
Entities listed in Schedule 11 (includes FCO)	£101,323 (€125,000)	£101,3232 (€125,000)	£3,927,260 (€4,845,000)
Prior Information Notices (Regulation 11)	£607,935 (€750,000)	£607,935 (€750,000)	£3,927,260 (€4,845,000)
Small lots (regulation 8 (12))	£64,846 (€ 80,000)	£64,846 (€ 80,000)	£810,580 (€1,000,000)

Relevant contract advertisements are published in the Official Journal of the European Union (OJEU).  The relevant supplement to OJEU is available from UK agents such as The Stationery Office and Business Information Publications Ltd and online at Supply2Gov.

Many of our contracts are also advertised in trade or professional journals or we use the potential supplier selection and award process (described below) to identify the companies we invite to bid for the business in question.

Due to the diversity and scope of our procurement across all of our worldwide offices it is not possible to publish every opportunity outside the UK, below the EU procurement threshold.   From April 2010 we will however begin to issue regular updates of contract opportunities of significance which are below the EU threshold .

Selection and award

When we invite a company to tender, we:

• specify our requirements in terms of outputs, whenever appropriate, to encourage innovation;
• invite tenders from enough suppliers to ensure there is adequate and genuine competition, at the same time restricting the field to those who have a reasonable chance of success;  
• make sure that procedures and documentation are clear and concise, and only ask for information necessary to evaluate bids; 
• treat all suppliers in the same manner, providing all tenderers with the same information and opportunity.  
  

Suppliers are given clear instructions on how tenders should be submitted.  They should ensure these steps are followed carefully.  For example, tenders received after the stated deadline will generally be rejected.  
We generally undertake a two-stage tender process – selection or pre-qualification of candidates (using pre-agreed selection criteria) and then a tender stage (using pre-agreed Award criteria).
Our tender evaluation process is designed to identify the supplier(s) who will provide the best value for money over the lifetime of the contract.  A range of factors are considered, including cost and quality, when choosing evaluation criteria, so as to identify the  most economical advantageous tender (MEAT).

The evaluation process is strictly controlled and objectively carried out against the pre-agreed award criteria.  Each of the various criteria is weighted to reflect relative importance.  The nature of the award criteria and weightings will vary depending on the specific contract being considered.

During the evaluation process we may ask bidders to demonstrate their goods or services.  We may also need to visit their premises and possibly take up appropriate references.  Due to the nature of our work, there may also be a need to undertake security checks on supplier resources and infrastructure as part of the procurement process.

Contract award

We notify successful and unsuccessful bidders in writing as soon as we have reached our decision.  We are happy to provide a debriefing to unsuccessful suppliers and offer constructive feedback which might improve their prospects of winning future business.  We also welcome any comments on our own performance, procedures or processes. 

For contracts awarded under EU Procurement Regulations (OJEU process) we publish the contract award details on our website.   This will include:

• contract name
• supplier awarded contract
• value of contract
• OJEU ref

Typical Procurement Process

Our standard procurement process is summarised below:

• define and justify the case for the “need”
• carry out informal market research/engagement as required
• develop/agree the Procurement approach and method (e.g.  OJEU)
• prepare and publish tender notices/advertisements 
• prepare Pre-qualification Questionnaire (PQQ) and supporting documents and agree any selection/pre-qualification criteria (typical PQQ template)
  
• publish PQQ
• assess PQQs in line with the selection criteria and shortlist
• develop tender documents and decide award criteria and evaluation approaches in line with VfM/MEAT requirements
• issue invitation to tenders
• supplier clarifications, site visits, etc  as appropriate
• open tenders on specified date and time
• evaluate tenders against pre-agreed Award criteria (reference take-up, site visits as required)
• final selection of preferred bidder, sign-off and notice of intention to award contract
• contract award debriefing of unsuccessful tenderers 
• readiness for delivery/acceptance or management of contract 
• depending on the risk, complexity and value of the procurement recommendations will be put before senior managers for approval at key stages of the process to ensure a fair and transparent process.  Records are maintained throughout the process so as to ensure a full audit trail.

Prompt payment

We aim to reduce invoice payment times to 10 working days and all valid goods, services and works invoices received are paid as soon as they have been authorised by the FCO officials responsible for the contract.  We are applying this policy to all suppliers of goods, services and works.  We will not be changing our existing contractual terms and conditions which remain at 30 days.  We rely on suppliers to ensure their invoices provide the details needed to match them quickly to the original order or contract.  The required information will be set out in the contract documentation.

For guidance on the correct way to submit an invoice, read the section below (Invoice guidance for suppliers).

Where a supplier lets a sub-contract in connection with an FCO contract they must include similar prompt payment terms to those above in respect of payments to their sub-contractors.

The Prompt Payment Code is another critical step in a series of structured initiatives devised by the government with The Institute of Credit Management (ICM) to tackle the crucial issue of late payment and help small and medium enterprises especially.

Invoice guidance for suppliers

Our commitment is to pay you within 10 working days of the FCO receiving a correct invoice delivered to the FCO UK Processing Centre in Milton Keynes.  Suppliers who have provided goods or services to the FCO must follow the guidance below when submitting an invoice to the FCO.

Suppliers’ invoices must include the following information:

• Date of Invoice
• A correct Purchase Order number  
• The quantity of the goods or services provided and the relevant cost including the appropriate VAT calculation.   
• Supplier name and contact details 
• Supplier bank details

Invoices which fail to include all relevant information will be returned for proper presentation.  In circumstances where there is a genuine dispute between a supplier and the FCO we will of course undertake the procedures agreed within the contract we have both signed.  

Invoices must be sent to the UK Processing Centre in Milton Keynes (the full address is shown below) and not to the individual or Department of the FCO to which you delivered the goods or services.  The ten day commitment will only start once the invoice is received by the UK Processing Centre.  Delays in payment could result from incorrectly addressed invoices.  

Should you have any queries with regard to the prompt payment of invoices and wish to make a telephone enquiry, please call the UK Processing Centre on 01908 745135 where FCO staff will be pleased to deal with your enquiry.  

The full postal address for the UK Processing Centre is as follows:

Foreign & Commonwealth Office
UK Processing Centre -TPC
Corporate Services Centre
PO Box 6108
Milton Keynes
MK10 1PX

Government Procurement Card

We sometimes prefer to pay for lower value goods, services and works with the Government Procurement Card.  Suppliers should be prepared to accept this form of payment.