Value for money
As a public sector body accountable to the public for the way in which we procure goods, services and works, the Police service is bound by stringent rules, regulations and codes of practice that determine how we go about demonstrating value for money (VfM) and best value for the public purse and as such we cannot just "choose" what we want to procure.
Value for money is achieved as a result of all staff ordering goods and services being required to comply with the PCC’s Financial Regulations and Contract Standing Orders.
In order to ensure compliance with these requirements and other aspects to ensure value for money our procurement related activities are controlled by 4 main sources:
- The South West Police Procurement Service(SwPPS), which is staffed by teams that include MCIPS qualified procurement professionals who advise upon, manage and facilitate force contracts. In doing so the SwPPS determine the best approach to the market and undertake fair and open tender processes to determine the best value option for the force, taking account of the entire life cycle of the purchase.
- The Force Purchasing Hub, which has delegated authority to order goods and services up to £50k, deliver an effective resourcing/ordering service force-wide within a contractual environment, providing best value for money.
- Buildings and Estates dept, who do a similar role to the Purchasing Hub for Building related orders up to £50k.
- Stores orders using existing force contracts.
On an annual basis, the PCC and Chief Constable’s external auditors are required under Section 5 of the Audit Commission Act 1998 to satisfy themselves that proper arrangements are in place for securing economy, efficiency, and effectiveness in the PCC and Chief Constable’s use of resources.
Contract Standing Orders - Financial Thresholds for Goods and Services
| Threshold and Type | Value | Quotation/Tender Process | Responsible for Procurement |
|---|---|---|---|
| Low Value Transactions | Up to £3,000 | A written or electronic quotation. | DCP (Procurement Hub) |
| Low Value Transactions | £3,000 to £14,000 | Wherever possible a minimum of three quotations. Both must demonstrate value for money. The aggregated spend cannot exceed £14k. | DCP (Procurement Hub) |
| Intermediate Value Transactions | £14,001 to £50,000 | A risk based procurement options analysis to be undertaken to determine the most appropriate procurement route | DCP (Procurement Hub), with SwPPS advice as needed |
| High Value Transactions | Above £50,001 and below EU Threshold of £214,904 | Follow tender process | SwPPS |
| Over EU Threshold | Over EU Threshold of £214,904 | Follow full EU tender process | SwPPS |
Contract Standing Orders - Financial Thresholds for Land and Buildings
| Threshold and Type | Value | Quotation/Tender Process | Responsible for Procurement |
|---|---|---|---|
| Low Value Transactions | Up to £3,000 | A written or electronic quotation or direct orders for emergency work. | Estates Repair Desk Buildings & Estates Department |
| Low Value Transactions | £3,000 to £14,000 | Wherever possible a minimum of three quotations. Both must demonstrate value for money. | Estates Repair Desk Buildings & Estates Department |
| Intermediate Value Transactions | £14,001 to £50,000 | Formal Tender | Buildings & Estates Department |
| High Value Transactions | £50,001 to £5,372,609 | Formal Tender | SwPPS |
| Over EU Threshold | Above EU Threshold of £5,372,609 | Follow EU Tender process | SwPPS |