Consultancy

Before You Start

As a first step before considering the purchase of consultancy services we strongly recommend that you make use of existing collaborative framework agreements and contracts available, either within your own organisation or managed by other contracting authorities, to help you achieve value for money.  Please refer to OGC's Policy on Collaboration (PDF, 293KB).  OGC's Contracts Database signposts a range of current and future frameworks and contracts available to public sector purchasers. You may well find there is something suitable to meet your needs here which will mean that you do not need to undertake a full competitive procurement. If you are considering purchasing other types of professional services, contact the OGC Service Desk (ServiceDesk@ogc.gsi.gov.uk) for information on OGC's collaborative procurement programme.    Additionally, the OGC Consultancy Value Programme (CVP) is working with departments to ensure that best value is obtained whilst engaging with consultants - for more details see the programme's factsheet by clicking on the link below.

OGC Consultancy Value Programme (CVP) (PDF, 123KB)

The following guidance aims to help you where there is no available existing collaborative contract or framework agreement to meet your requirements and you need to start a new procurement via a competitive tendering process.

Legal and Policy Context

There is a duty on procurers in central government to apply the key principles of public procurement. These require the achievement of value for money, including appropriate quality and service to meet business needs, and appropriate governance e.g. adherence to HM Treasury rules concerning the use of public money in procurement as described in Managing Public Money, Annex 4.4. 

Value for money is defined as securing the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought; it is not about minimising upfront prices.

Procurement can be used to help contracting authorities to meet their sustainable development (including environmental and social issues) objectives provided it is consistent with value for money and the legal framework for public procurement.  OGC Guidance on the extent to which social and environmental considerations can be taken into account at different stages of the procurement process can be found in Social Issues in Purchasing (PDF, 586KB) guidance and Buy and Make a Difference (PDF, 1013KB) guidance.
 
Also, remember that Public Sector procurement is governed in the UK by the regulations that implement the EU Procurement Directives. These apply to the majority of procurements with a total value over a specified threshold. They stipulate the procedures to be followed for the procurement process, especially relating to time limits, specifications, advertising and contract award. The UK regulations apply in full in procurements exceeding the threshold.  In determining whether the threshold is likely to be reached, you need to aggregate the estimated value of all anticipated separate contracts for goods or services of the same type which meet your requirement.  For example, if you intend to purchase 10 days of your required service in one month, and 5 additional days in a subsequent month, then it is the total value of the 15 days which will apply. For more information, refer to the Introduction to the EU Procurement Rules (PDF) in particular, section 9, page 5. 

Where the aggregate amount of your procurement falls below the relevant threshold, it will not be subject to the full application of the UK regulations.  However, the EC Treaty principles of transparency, non-discrimination and equality of treatment that are incorporated within the UK regulations will continue to apply.

For the purposes of this user journey it is assumed that the UK procurement regulations apply, but you will need to determine whether this is the case in your particular situation.
 
This guidance will now consider each stage of the procurement life cycle as it applies to the procurement of consultancy services. 

Go to Consultancy procurement lifecycle