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You are here:home > Business > Supply Southampton > How we buy

How we buy

Southampton City Council categorises its spend into three bands: high, intermediate and low-value:

High-value transactions

For transactions valued from £100,000 for supplies, services and works, a formal tender process will be conducted and advertised on Contracts Finder. Where values exceed £172,514* for supplies and services and £4,322,012* for works, a formal tender process will be conducted and they will also be advertised in the Official Journal of the European Union (OJEU).

The contract opportunity will be advertised at the start of the tender procedure. Where a relevant framework agreement exists, tenders shall be invited from all capable suppliers according to the arrangements provided in the framework agreement and having regard to the principles of best value.

Once the decision to award a contract is made, each tenderer will be notified in writing of the outcome of the tender process. This notification will include:

1. details of the contract award criteria;
2. where practicable the score the tenderer obtained against that award criteria;
3. where practicable the score the winning tenderer obtained;
4. the name of the winning tenderer; and
5. a statement as to the precise standstill period applicable.

Intermediate-value transactions

  1. For transactions valued from and including £50,000 to £99,999.99 for supplies, services and works, the contract opportunity will be advertised here at the start of the procurement procedure.

  2. For transactions valued from and including £10,000 to £49,999.99 for supplies, services and works, at least three written quotations will be invited from capable suppliers before a purchase order may be issued.

Where a relevant framework agreement exists, subject to its specific terms, a mini-competition will be conducted with quotations invited from capable suppliers according to the arrangements provided in the framework agreement and having regard to the principles of best value.

The purchase order must specify the supplies, services or works to be provided, the price to be paid and the terms of payment.

In addition, the purchase order must contain Southampton City Council’s standard form of terms and conditions of purchase. A quotation and a purchase order will create a legally binding contract. The purchase order is used to formalise the terms of the contract.

Low-value transactions

For transactions valued up to £9,999.99 for supplies, services and works, at least one written quotation must be obtained from a capable supplier before a formal purchase order may be issued.

Where a relevant framework agreement exists, subject to its specific terms a mini competition will be conducted with quotations invited from capable suppliers according to the arrangements provided in the framework agreement and having regard to the principles of best value.

The purchase order must specify the supplies, services or works to be provided, the price to be paid and the terms of payment.

In addition the purchase order must contain Southampton City Council’s standard form of terms and conditions of purchase. A quotation and a purchase order will create a legally binding contract. The purchase order is used to formalise the terms of the contract.

(*Please note that these thresholds are correct as at January 2014 and are amended biennially in January.)

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