To ensure that we get value for money we need to have our requirements open to the appropriate level of competition.
The level of competition depends on the value of spend, which in general should be:
|Value of expenditure||Minimum level of competition|
|Up to £500||Minimum a single verbal quote (e-mail, catalogue price, record of 'phone conversation etc)|
|£501 - £5,000||Minimum 3 verbal quotes (e-mail, catalogue price, record of 'phone conversation etc)|
|£5,001 - £10,000||Minimum 3 written quotes. Process managed by Procurement|
|£10,001 - £164,175*||Formal competitive tender undertaken by Procurement|
|£164,176*+||Formal EU tender procedures|
* The threshold for most EU Tender procedures is £164,176, but it is our policy that where the estimated value of a tender falls within 10% of the EU threshold then the relevant EU procedure should be followed.
This is to make sure that we do not find ourselves in a position where we have not followed the relevant EU procedure and the majority of bids have been priced above the threshold.