# The Local Government (Direct Service Organisations) (Competition) Regulations 1993, Regulation 7: Qualifying tenders


Having regard to the bid and each contractor’s tender for the work, the local authority shall—
(a) calculate or estimate—
(i) the amount, excluding the total amount of allowable costs, which the local authority would pay to the credit of the account of the direct service organisation, if it accepted the bid, and
(ii) the total amount of fees and expenses which the local authority would be bound to pay to the contractor if it accepted his tender;
(b) identify which, if any, of the contractors' tenders meet the following qualification, namely that the amount mentioned in sub-paragraph (a)(ii) is less than the value of the sum of—
(i) the amount mentioned in sub-paragraph (a)(i), and
(ii) the notional premium.

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Source: https://www.legislation.gov.uk/uksi/1993/848/regulation/7 (the official version)
Page: https://openlegislation.uk/local-government-direct-service-organisations-competition-regulations-1993/regulation-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.