POLICY
Title: Procurement Policy / Ref: JWC-QM-7.14
Revision Number:1.0
Last Update: March 2010 / Next Review: March 2012
Prepared by: Finance Manager / Lead person/s: Finance Manager
Approved by: Board of Management
- Purpose
The aim of the Procurement Policy is to ensure that the College achieves value for money in the purchase of all goods and services by applying best practice with a view to ensuring statutory compliance and embedding risk management.
- Procurement Strategy
The College Procurement Strategy is detailed in a separate document
- Role of the Purchasing Officer
The Purchasing Officer is responsible inter-alia for:-
- ensuring that the College’s purchasing policy is known and observed by all involved in procurement for the College
- advising on matters of the College’s procurement policy and practice
- advising and assisting curriculum areas and support departments where required on departmental purchases
- developing appropriate standing supply arrangements on behalf of the College to assist budget holders in meeting their value for money obligations
- engaging in the creation and finalisation of all large scale purchase contracts undertaken by the College, in collaboration with the responsible department and other institutions where appropriate
- ensuring that the College complies with European Community regulations on public procurement policy
- uploading spend data periodically to the Scottish Procurement Information Hub
- Application of the Policy
The College requires all budget holders, irrespective of the source of funds, to obtain supplies, equipment and services at the lowest possible cost consistent with quality, delivery requirements and sustainability and in accordance with sound business practice.
Purchases should only be made under contracts negotiated by approved consortia or the College and from identified preferred suppliers. A definition ofpreferred supplier is provided in the annex to this policy. The use of suppliers not on the preferred supplier list must be justified by the budget holder and approved by the Finance Manager
Purchases should normally be made through or on the advice of the Purchasing Officer or nominated ‘procurement officers’ forspecific commodities or services.
- Tendering and Quotations
Details of the limits above which tenders or written quotations are required are included in the Annex attached. (See alsoFinancial Regulations and Purchase Order Policy)
- Post-Tender Negotiations
Post-tender negotiations (i.e. after receipt of formal tenders but before signing of contracts) with a view to improving price, delivery or other tender terms can be entered into provided:-
- it would not put other tenders at a disadvantage, and
- it would not affect their confidence and trust in the College’s tenderingprocess
In each case a statement of justification should be approved by the Assistant Principal Finance and Resourcesprior to the event showing:-
- background to the procurement
- reason for proposing post tender negotiations
- demonstration of the improved value for money.
- Conflicts of Interest
In the event that an employee has an interest in an organisation providing goods or services to the College that interest must be declared in writing at the earliest possible time and maintained in a Register of Interest held by the Clerk to the Board of Management.
All staff who have purchasing authority must be aware of the standards of ethical behaviour that apply to their purchasing activities. Any personal interest which may impinge or might reasonably be deemed by others to impinge upon impartiality in any matter relevant to purchasing duties should be declared to the Finance Manager for recording and approval before conducting the business.
8. Equality and Procurement
Equality is an important social policy objective and achieving value for money and equality often goes hand in hand. Procuring goods and services that work well by taking account of and catering for the diverse needs of different users at good value for money, is what good procurement is all about. Equality issues will often be of direct relevance to what is being bought, perhaps as an integral part of teaching delivery to learners.
There may also be added value in ensuring public contracting opportunities are accessible to all types of businesses, for example, those owned by people from BME (black and minority ethnic communities), women and disabled people, means that every supplier who can offer real benefits and value-for-money has a chance to compete according to their merits.
There are also legal considerations for colleges to ensure that the procurement activity is operated in a way that meets equality statutory obligations. In addition to this consideration should be given towhat canbe done to proactively promote equality in specific contracts.
The extent to which equality issues can be incorporated varies depending on the type of contract and whether it has a direct social impact and the stage of the procurement process e.g.:
- Pre-procurement – when identifying the need and considering the market
- Specification – when deciding the requirements
- Selection – when selecting suppliers to invite to tender
- Award – when awarding the contract
- Contract conditions – equality contract clause and performance monitoring
9. Procedures
The ordering of goods and services shall be in accordance with the arrangements detailed in the Financial Regulations and Procedures Manual. All orders for the purchase of all goods and services except those made using Petty Cash, must be entered and authorised on symmetry.
The College terms of purchase must be included in all orders or contracts.
10. Tenders and Quotations
The following thresholds are intended to be indicative only. When choosing the route to follow consideration must be given to the contract value as well as the risk and complexity ofthe exercise being undertaken. Details of how to calculate contract value can be found in the Sector Manual. It is not permissible to try break a requirement down into smaller constituent requirements in order to by-pass the constraints imposed on procurement..
Regulation 8 (19) of the Public Contracts (Scotland) Regulations 2006 states;
“A contracting authority shall not enter into separate contracts nor exercise a choice under a valuation method with the intention of avoiding the application of these Regulations to those contracts.”
It is highly unlikely that, when carrying out a procurement exercise, only one supplier will be able to deliver the need. Specifications must be prepared as ‘output-based’ to attract market interest and stimulate competition and innovation.
Goods and Services Thresholds
Under £15,000 – for budget holder to decide whether or not to obtain quotations, when not being drawn from a previously agreed contract. Value for money musthowever be demonstrated.
From £15,000 to £50,000 – At least three quotations must be obtained unless being drawn from a previously agreed contract. Goods or services provided over a period must not be broken down into smaller elements to avoid application of due process.
All quotes should be requested using the standard documentation provided in the Sector Manual. The standard terms and conditions provided in the manual should also be used to form the basis of the contract.Quotation requests should be placed on the Public Contracts Scotland website.
£50,000 to £156,442
In the absence of a suitable framework agreement then it will be necessary to carry out a competitive tender exercise. Some level of advertising for procurements falling into this category is compulsory to ensure effective competition. The exercise should also be carried out in a manner that will allow any resulting contract to be formed on the Colleges’ terms and conditions.
£156,442 and over
EU legislation applies. Contact the Colleges’ Purchasing Officer for guidance.
Works Thresholds
£25,000 to £250,000
At least 3 quotations must be obtained unless being drawn from a previously agreed contract. Consideration should be given to carrying out a competitive tender exercise with advertising where it would be proportionate to do so.
£250,000 to £3,927,260
A competitive tender exercise must be carried out unless being drawn from a previously agreed contract. Some level of advertising for procurements falling into this category is compulsory to ensure effective competition.
£3,927,260 and above
A competitive tender exercise must be carried out unless being drawn from a previously agreed contract.Procurements falling into this category must be advertised in the Open Journal of the European Union.
Approval
The award of contracts up to £100,000 requires the approval of the Assistant Principal Finance and Resources or the Vice Principal Corporate Development; those over £100,000 require the approval of the Principal; those over £500,000require the approval of the Principal and the Chair of the Finance & Resources Committee.
Annex
Definition of a ‘preferred supplier’
A supplier will only be awarded ‘preferred’ status if they meet one or more of the following criteria:
- They form part of an agreement awarded by Procurement Scotland, Advanced Procurement for Universities and Colleges (APUC), The University Caterers Organisation (TUCO), the Office of Government Commerce (OGC), NHS PASA or any other organisation which awards contracts on behalf of public sector entities and have drafted their terms in a manner which allows James Watt College to access their agreements
- A contract has been awarded by following the standards set out in the Scottish Procurement Policy Handbook and in conjunction with APUC’s Sector Manual and College procurement policy.
‘Preferred’ status will not be awarded where:
- None of the above criteria have been met
- Quotes have been obtained for a one-off purchase of goods or services
Preferred supplier status applies only to the specific goods or services for which the supplier/contractor has been awarded a contract to supply, and does not endorse or confirm that the supplier or contractor is "preferred" for any other product, goods or service they could supply.
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