Procurement procedures for housing management services
How we buy goods and services
Magna is bound by the Procurement Act 2023 as a Contracting Authority. This means that we will publish public notices before, during and after purchasing goods or services.
When choosing suppliers, we look for the bid that offers the best overall value. This is called the Most Advantageous Tender (MAT). It doesn’t always mean choosing the cheapest.
The process of selecting a supplier depends on the complexity and estimated value of what we’re buying. All the amounts below are inclusive of VAT.
Purchases below £15,000:
We need one single written quote from one supplier.
Purchases between £15,000 and £50,000:
We need three written quotes from three separate suppliers. The quotes must include similar information so that we can compare them fairly.
Purchases over £50,000:
We normally score each bid using:
10% for environmental, social and governance matters, known as ESG.
45% for quality.
45% for price.
We may change these percentages depending on what we’re buying.
Suppliers may be asked to provide a written response, presentation or demonstration, and the process may have more than one stage.
Extra rules and public notices apply when the value is over £207,000.
Buying through a framework
Sometimes we buy goods or services through a framework. This allows public sector organisations, like Magna, to buy from a list of suppliers that have already been checked and approved.
When buying something worth more than £207,000 through a framework, fewer notices and rules may apply.
We may run a competitive process between suppliers on the framework, or we may directly award a supplier on the framework.
Some frameworks also support local projects and social value schemes. Magna usually receives more than £40,000 each year for local causes through our involvement in frameworks.
Direct Awards
Sometimes it may not be possible or suitable for us to ask suppliers to compete. In these cases, we may award a contract directly to a supplier.
A direct award may be made through a framework or outside a framework.
We always follow careful processes when selecting a supplier directly. A senior colleague must approve the decision before we agree to the contract.