Purchasing procedures - University of Central Lancashire

2.1 Public Supply and Public Service Contracts
2.1.1 If the contract is for a “one-off” purchase, estimate the total value including all component
parts, transport costs, installation and commissioning.
2.1.2 The value of a series of contracts, or repeat orders, for the same or similar products, should
be estimated over a reasonable period (e.g. expected length of requirement.) This can be
either historically or in the future. Note, however, that requirements cannot be
disaggregated in order to avoid the Regulations.
2.1.3 Fixed term contracts for services or for the lease, rental or hire purchase of products should
be estimated for the duration of the contract. Where the contract is part of a series, the
whole series should be estimated over a 12 month period or longer, if appropriate. If a
contract is for a fixed period, say one year, but has an option to extend for up to two
additional years, then regardless of whether or not there is uncertainty about exercising the
extension option, the duration has to be taken as 3 years (the maximum duration in this
example) when estimating its value.
2.1.4 If a contract, or series of contracts, for services is for an indefinite or uncertain period, or the
total price is not known but the contract period exceeds 48 months, then its total value
should be calculated by multiplying the estimated monthly value by 48.
Note: Where the proposed contract includes more than one of the above elements, the
value must be determined by calculating the highest possible value.
2.2 Specific types of Public Service Contract
For the following types of services, the values to taken as a basis for calculating the
estimated contract values are:
- insurance services: the premium payable and other forms of remuneration;
- banking and other financial services: the fees, commissions, interest and other forms
of remuneration;
- design contracts: fees, commission payable and other forms of remuneration.
2.3 Public Works Contracts
2.3.1 Estimate the value of the whole works contract.
2.3.2 Where the contract is part of a series necessary to carry out a project, it is the total value of
the aggregated contracts, which will determine if the contract falls within the scope of the
Regulations.
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