Selling to Public Authorities
Bids to encourage SME's (small and medium sized enterprises) for a larger share of the Public Expenditure Budget are frequently encouraged by the Government, however, some of the difficulties smaller companies encounter can be seen by an invitation to quote for the 'Supply and Delivery of Commercial Waste and Domestic Recycling Bags' from Westminster City Council..
The first section contains twenty-four pages titled 'Specification' and 'Contract for the Supply and Delivery of Commercial Waste and Domestic Recycling Bags Instructions to Tenderers'. The later containing a section stating:
"The contract period is initially for a period of 2 years although the City Council reserves the right to extend the contract for a further period or periods of up to 2 years making a total possible contract period of 4 years."
The next batch of seventeen sheets is headed 'Response Document' and contains the statement:
"All prices are fixed for the Contract period of two years. The City Council reserves the right to extend the contract for a further period or periods of up to 2 years making a possible Contract Period of 4 years. The City Council; do not anticipate paying higher prices for any extended period, but if the Contractor can provide substantial evidence of major increases in costs, an increase in line with RPI may be considered. "
A final set of A4 papers is called "Conditions of Contract" and is twenty-five sheets long.
