For statistical purposes, the Department of Trade and Industry use the following definitions:
section A
- a turnover of not more than £2.8 million;
- a balance sheet total of not more than £1.4 million;
- not more than 50 employees
- A medium sized company must satisfy at least two of the following criteria:
- a turnover of not more than £11.2 million;
- a balance sheet total of not more than £5.6 million;
- not more than 250 employees
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section B
- micro firm: 0 - 9 employees
- small firm: 0 - 49 employees (includes micro)
- medium firm: 50 - 249 employees
- large firm: over 250 employees
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Pre-qualification
Potential suppliers must demonstrate their financial, commercial and technical capabilities to fully meet the contractual requirements under tender.
The contract provider may also take account of a company's past performance and experience with reference to contracts of a similar nature, both from its own experience and and other organisations.
They will also look for clear demonstration of commitment to equal opportunities in employment, to the environment and to health and safety (where appropriate).
Evaluation of tenders
In order to preserve the integrity of the competitive process, it is imperative that the evaluation of proposals is undertaken objectively, consistently and without bias towards particular suppliers. Tenders are usually evaluated against a pre-determined set of criteria.
Scoring and weighting of criteria is determined at the same time the tender is compiled.
From
31 January 2006 the relative weightings must be communicated to potential suppliers for all procurements carried out under the EU Public Procurement Regulations. It is very unlikely that contracts are awarded on the basis of price alone.
A contract is usually awarded to the supplier(s) that considers offers the best value for money.
For this reason, the main evaluation criterion will be the "most economically advantageous tender" as determined by the criteria set out in the tender documents. The award criteria varies depending on the type of contract. Examples of award criteria, in addition to price, are experience, technical merit, financial viability, flexibility to future changes to requirements, speed of project delivery, sustainability, quality and equalities.
Award of contract
An evaluation team will examine each tender received and make recommendations as to which tender represents best value for money. Once the contract has been awarded, both the successful and unsuccessful tenderers will be notified. Unsuccessful tenderers may obtain feedback through written application. From 31 January 2006 a ruling for all procurements carried out under the EU Public Procurement Regulations requires a 10 day stand-still period between the notification of the successful bidder and the contract award.
Testimonial
My team considers that the training programme is very comprehensive in the coverage of the information small businesses need to know when applying for public sector contracts. It was well presented and from my knowledge of public procurement, it is accurately presented.
I think special importance has been given to the package design which allows businesses to choose the parts of the package which most meet their needs and a business that completed the whole package would be a long way towards being competent in procurement. (Head of Procurement Policy - Small Business Service)