Exemption from undertaking a procurement process

There is provision within the Contract Standing Orders for the requirements of obtaining quotations or tenders to be waived, however the following conditions apply:

• NO exemptions can be made if the Above Threshold applies
• NO exemptions can be made retrospectively.

An exemption can only be applied when it is to the clear benefit of the council. In considering whether an exemption is appropriate, an assessment needs to be made of the costs, benefits and risks that follow should an exemption be agreed. The justification for an exemption must be well evidenced.

An exemption from these CSOs may be made as set out below:

Some examples are listed below where an exemption may be used:

• A contract is required as a matter of genuine urgency (e.g. flood alleviation/damage) or in force majeure situations where it is not possible to complete a full procurement process.
  
• Unforeseen circumstances that any diligent Council could not have foreseen (e.g. national pandemic).
  
• There are sound reasons why there would not be a genuine competition and no reasonable alternative is available, for example IT software maintenance.

• The specification for goods and services is of a specialised nature which only a limited number of suppliers can deliver and tenders will be invited from all suitable suppliers (evidence will be required).

• The contract period cannot be accurately determined as the service area is undergoing review or restructure which may change future requirements.  In these instances, an exemption may be granted for a limited period of time in order to ensure the correct delivery model can be agreed prior to tender/quote.

• An additional piece of work is required that could not have been originally envisaged and can therefore only be completed by a specific supplier.  For example, upgrades to existing IT systems where it is not financially feasible to use an alternative supplier.  NB – this may result in a contract variation being required rather than an exemption.  In all instances if the original contract value is likely to be exceeded you should seek advice from the procurement team.

All exemptions and the reasons for them must be recorded using the Contract Standing Orders Exemption Form. The officer seeking the exemption must provide clear and sufficient evidence why the contract matches one or more of the criteria set out above. If you are unsure whether the exemption is likely to be granted you should seek advice from the Procurement Team.

If an exemption is agreed it will still be necessary to complete the contract administration procedures such as contract formation, and execution and checking of insurances etc.

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