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University of Northumbria at
Newcastle
Commercial Procurement Policy
December 2014
Authors
Peter Batty, Commercial Director
David Jackson, Head of Business Assurance
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Administration Document History
Revision History
Date of this revision:
Date of next revision:
Revision date
Previous
Summary of Changes
revision
Changes
marked
date
29/10/2014
23/10/2014 Chris Reilly’s amends
No
30/10/2014
29/10/2014 Adam Dawkins and Jay Wilson amends
No
30/06/2015
29/10/2014 Peter Batty
No
30/10/2015
30/06/2015 Peter Batty
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Table of Contents
Administration Document History............................................................................................................................ 2
1
OVERVIEW ........................................................................................................................................................ 4
2.
HOW TO BUY .................................................................................................................................................... 6
3
WHERE TO BUY ................................................................................................................................................. 9
4
COMPETITION ................................................................................................................................................. 11
5
SUSTAINABLE PROCUREMENT........................................................................................................................ 17
6
PROCUREMENT ETHICS .................................................................................................................................. 20
7
MONITORING AND AUDIT .............................................................................................................................. 22
APPENDIX................................................................................................................................................................ 23
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1
1.1
OVERVIEW
Purpose
The purpose of this document is to define Northumbria University’s (“the University”) policy on procurement to
assist colleagues in carrying out procurement activity on behalf of the University.
It should be read in conjunction with the University Financial Regulations, of which this is a sub-policy, - the
overriding principles which must be followed in order to ensure financial compliance throughout the University.
This Policy reflects and supports the University's objectives and Vision 2025, by working with staff and suppliers, to
balance efficiency, against risk factors, in achieving Value for Money, whilst promoting sustainable procurement and
maximising student and stakeholder satisfaction.
All procurement within the University shall be carried out in accordance with Financial Regulations, this Commercial
Procurement Policy and Legal requirements. Where the projected, whole life value of the procurement is in excess
of £50,000 (including VAT), the structured tender process should be led by Commercial Procurement Services. No
tender exercises should be undertaken by Faculties and Services in isolation.
The University is a member of various procurement consortia, for example NEPO (North East Purchasing
Organisation) and NEUPC (North East Universities Purchasing Consortium). The University supports collaborative
procurement at sector and national level where this provides demonstrable benefit to the University.
1.2
What is Procurement?
Procurement can be defined as `the whole process of acquisition of goods, works and services and assets spanning
the whole life cycle from the identification of the business needs through to the end of the useful life of an asset,
contract or of the need for an activity’. It is more than simply `purchasing’ and it covers provision from internal and
external providers.
Whilst the approach to different types of procurement will differ in complexity, the essential principles outlined in
this guide apply to the whole range of procurement of goods, works and services regardless of whether they are
provided internally, by a third party or even a sub-contractor to a third party.
With routine procurement of goods (such as furniture), works (such as construction and engineering contracts) or
services (such as a window cleaning contract) the procurement route is relatively straightforward.
With more complex procurement decisions e.g. a new campus or an existing service being provided by an external
provider the process itself is more complex.
1.3
Value for Money
Definition: ‘whether or not an organisation has obtained the maximum benefit from the goods and services it both
acquires and provides, within the resources available to it. Some elements may be subjective, difficult to measure,
intangible and misunderstood. Judgement is therefore required when considering whether VFM has been satisfactorily
achieved or not. It not only measures the cost of goods and services, but also takes account of the mix of quality, cost,
resource use, fitness for purpose, timeliness and convenience to judge whether or not, together, they constitute good
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value’ (HEFCE website)
To ensure that large value purchases obtain optimum Value for Money, the involvement of Commercial
Procurement Services should be utilised for all University purchases (non-works) where the whole-life costs are in
excess of £50,000 (including VAT).
Goods, services and works should be acquired by effective competition, including adequate publication of the
contract opportunity, unless there are convincing and justifiable reasons to the contrary.
It is essential that a clear description of requirements within a PRF (Procurement Request Form) (Appendix A) is
approved before the procurement process is commenced in order to allow the writing and scoring of tenders
received.
It is the responsibility of Executive Deans and Directors of Faculties and Services to ensure that these requirements
are complied with. Requests for departure from Commercial Procurement Policy require the prior approval of the
Commercial Director and requests for such departure from competitive processes must be submitted within an
adequate time (three months in advance of the renewal date) so as to allow sufficient time for an internal review to
be conducted prior to the event.
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2.
2.1
HOW TO BUY
Financial Authority to commit expenditure
The University operates a system of devolved financial authority under which Executive Deans and Directors of
Faculties and Services are responsible for the planning and decision making process and the management of their
financial resources. This authority may be further delegated by Heads of a Faculty or Service to their staff –
however this will require approval from the Chief Operating Officer.
Anyone placing a purchase order on behalf of Northumbria University should ensure they have the correct levels
of authorisation and budget to purchase, as authorised by the Executive Dean and Directors of Faculty or Service.
Different members of staff will have authority to purchase and authority to approve invoices, and so maintaining a
separation of these duties is essential.
The Financial Regulations covering Authority limits are available on the Finance and Planning website:
http://www.northumbria.ac.uk/static/5007/finpdf/financialregs.pdf?view=Standard
Finance and Planning (Payments Team) maintains a secure electronic record of all staff that who have delegated
authority to approve expenditure. The record will also hold details of the budgets against which the employee is
authorised to approve purchases as well as their transaction levels. This record is checked when invoices are
paid to ensure staff with correct levels of financial authority have been included during the process.
It should be noted that:

No employee can approve purchases if they have not been given delegated authority to do so;

No employee is authorised to commit the University without first ensuring that budgets are available to meet
the commitment;

Aggregation of Purchase Orders is not permissible i.e. to raise two or more lower value purchase orders or to
phase the issue of purchase orders in order to circumvent authorisation levels.
Failure to comply with these requirements may result in withdrawal of authority and disciplinary action. If you are
unsure of your personal authorisation levels, please check with the Finance and Planning (Payments Team.)
2.2
Purchasing regulations & thresholds
The current thresholds that apply to all University procurement activity are set out below. It must be noted that the
costs listed are not just for initial outlay, but for the whole life costs of the contract.
.
There are a number of definable steps involved in the purchase of goods and services for the University that
commits it to pay a third party, and these are listed as below. For these purposes, a “Commitment” means: “a
contractual obligation for the University to pay a supplier that is created by an approved purchase order including
those made electronically or online and those using a procurement card or created by any other purchasing
commitment (including a verbal agreement).”
The financial limits up to which individual employees can make a Commitment are those set by the Board of
Governors, which apply to all financial transactions carried out on behalf of the University. The current financial
limits (inclusive of VAT) are as follows:
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•
Employment and Finance Committee: over £2,000,000;
•
Chief Operating Officer and Vice-Chancellor (together): up to £2,000,000;
•
Vice-Chancellor: up to £500,000
•
Chief Operating Officer: up to £500,000;
•
Members of University Executive: up to £50,000;
•
Other staff with Delegated Authority from the Chief Operating Officer: up to £50,000.
Plans to acquire equipment, goods or services must be aggregated across the University and over the life of the
contract.
The buyer (i.e. the instigator of the purchase), should consider the most appropriate route to procure, in line
with the guidance set out below:
NO
2.3
E-purchase
All procurement within the University should be carried out, where available, using the electronic ordering system,
e-purchase (SRM).
The only exceptions will be where it has been agreed that for practical reasons other systems need to be utilised,
such as University Travel and Expenditure Policy (Key Travel), agency and temporary personnel up to and
including Grade 5(C-NET – Comensura) etc. or where the e-purchase system has not yet been set up, or for low
value orders when Purchasing Cards can be used.
E-purchase has a workflow functionality that ensures that the correct approval process is carried out prior to
purchase by budget holders.
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2.4
Purchase Orders
All purchase orders should, where possible, be placed via e-purchase, under no circumstances should verbal orders
be given. Faculties and Services should be aware that it is when a purchase order is placed with a supplier that a
commitment is made on behalf of the University, not when an invoice is received, so approvals should be ensured
at this stage. All purchase orders have attached the University’s Standard Terms and Conditions of Purchase; the
latest version of these is available on the Finance and Planning web pages.
2.5
Purchasing Cards
It is recognised that there is a need in certain circumstances to use Purchasing Cards as an alternative means of
paying for goods and services. There are some advantages including the potential to reduce paperwork, time in
administration and subsequently reduce costs, however the reduced level of security, consistency and potential for
misuse need to be considered. Purchasing Cards are suitable for low value, one-off purchases and for purchases
from abroad – they should only be used for transactions up to £1,000 (including VAT) and NOT for any IT or printerrelated purchase (parts, ancillaries, consumables) or capitalised equipment or hardware .
Consideration should be given to the aggregation of requirements as it can also be time consuming registering card
details on a regular basis.
These cards can be approved and issued through Procurement by the Executive Dean or Director of Faculty or
Service.
For further information, you should refer to the Purchasing Card Procedures, which can be found at
https://www.northumbria.ac.uk/static/5007/finpdf/puguide.pdf. Failure to comply with these, or misuse, may result
in withdrawal of authority and disciplinary action.
2.6
Suppliers
Suppliers that Faculties or Services need to use must be set up on the University's finance system, to enable
payment to be made. You must complete a new vendor form and send to Commercial Procurement Services who
will then carry out the necessary checks before agreeing to a new supplier being set up. Forms are available on the
Finance and Planning website. All potential suppliers should have financial assurance checks carried out. This is
particularly relevant if the payment terms dictate that some payment in advance of receipt of goods or service is
required – such a payment must be approved in advance by the Commercial Director.
Commercial Procurement Services has access to a credit reference agency, and requests to use this facility should
be made through them, all new suppliers should be credit checked before being engaged
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3.1
WHERE TO BUY
Internal sources of supply
For Catering or Print requirements you should consult Campus Services Catering or the University Print Service
before considering to purchase externally. Both these internal suppliers have considerable facilities and wide staff
expertise to ensure you get the right solution to your requirements.
For furniture or stationery, it may be that there is excess or unwanted stock in another Faculty or Service, which
would meet your requirements. Unwanted university-owned items suitable for reuse should be added to
Northumbria University’s Warp It site by a registered staff member. Before procuring a new item, staff members
should check Warp It to determine whether the item they require is already available in-house. (https://www.warpit.co.uk/northumbriauni).
University Faculties or Services may also have a contractual arrangement you could utilise, or which might be
interested in running a joint procurement to increase the overall buying power.
3.2
External sources of supply
The University has contractual relationships with a large number of organisations either put in place by the
University or run on our behalf by purchasing consortia. These contracts cover a wide range of Goods and Services,
both specialist and routine requirements. It is important these are used when available to prevent the University
being in breach of an existing contract and to achieve Value for Money. Commercial Procurement Services will
maintain a list of these key suppliers and contracts and should be the first point of contact, as these existing
contracts should always be the first option when considering a purchase.
The University benefits from the use of collaborative procurement agreements and, in addition to being a member
of the North East Universities Purchasing Consortium (NEUPC), works with other public sector bodies on
collaborative projects to deliver Value for Money to the University where it can.
Executive Deans and Directors of Faculties and Services have a responsibility to ensure that where an appropriate
contract is available, purchase orders are placed with that supplier. If there is any doubt regarding the correct source
of supply, advice should be sought from Commercial Procurement Services in advance of the requirement.
If a non-contracted supplier is offering lower pricing than our contracted suppliers, this should be brought to the
attention of Procurement.
3.3
Specialist knowledge and assistance
Specialist knowledge and assistance may be required, including the engagement of external consultants for highly
complex and high value procurements, but internal assistance, e.g. Campus Services or IT Services should be
preferred where available. IT Services should always be consulted when hardware or software purchases are
required, to ensure the equipment is compatible with our existing IT infrastructure and that all software licensing
rules are complied with.
3.5
Travel buying
The University has a contracted supplier (Key Travel - www.keytravel.com) that should be utilised for all business
travel. The details of how we should travel are contained within the University Travel and Expenditure Hub which can
be found here:
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https://www.northumbria.ac.uk/staff/travelhub/travelfor/?view=Standard
The current University travel supplier can be found on the travel portal of the University intranet site.
The University travel supplier should be used online for the following modes of travel unless travel is of a routine
nature and there is insufficient time to pre book tickets (e.g. tickets to Durham or York):

Rail;

Air (domestic and international, short and long haul including low cost carriers);

Hotel bookings; and

Combinations of journeys.
While the above relates to staff travel, it should be noted that a University Student travel/ Field Trip Framework is
currently being developed and will be in place early 2015.
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COMPETITION
The form of competition should be appropriate to the value and complexity of the goods, services or works to be
acquired. We should also seek to keep bidding costs to the minimum necessary for effective competition and
should remove barriers to participation by, for example small firms, the self-employed and the third sector without
discriminating against others. Any minimum standards required should be proportionate to the contract in
question, other than where legally required.
4.1
Pre- market engagement:
The University should look to engage early with the market to understand supplier issues, the state of innovation
and commercialisation in the market and other market constraints. In setting up this pre-market engagement, it
would be advisable to look at issuing a Request for Information (RFI) to notify potential suppliers of the
opportunity and set up an early industry day to discuss the opportunity.
4.2
Quotations and tenders
The quotation and tender processes are both used to obtain written offers from suppliers for the supply of goods,
works and services. The quotation process is normally used for relatively low value and low risk purchases. For
higher value purchases, which require greater accountability, the more formal tendering process should be adopted.
Both processes are described in more detail below.
4.2.1 Quotation Process
In accordance with the University's Financial Regulations, a minimum of three written quotations are required
for any purchases between £5,000 and £50,000 (inclusive of VAT). Requests for quotations can be made
verbally (confirmed in writing) or in writing. Written confirmation of the quotation is required.
In seeking written quotations the supplier should be asked to submit details of price, time required for delivery,
trade or early payment discounts, any other costs associated with delivery and carriage and, where appropriate, the
whole life running costs of the contract. Suppliers should be given a reasonable period to respond to enquiries (no
less than 7 days and no more than 30 days) and should return their offers by the requested methodology and
marked with the appropriate quotation reference.
In requesting quotations, care should be taken to ensure that any purchase is subject to the University's own terms
and conditions. Any exceptions must be sent to Legal Services for review in advance of acceptance.
The Request for Quotation Template is available on the Procurement Web Pages (Appendix B)
Receipt and Custody of Quotations
An independent person or department should be nominated for the receipt, safe custody and opening of all
quotations and should not be involved in the subsequent quotation process. All quotations received should be
recorded in the Faculty/Service Quotation Register.
All quotations must be treated with care and in the same way. They must be kept unopened, in a secure
location until the designated tender opening time, which should be as soon as possible after the closing
date.
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Log the quotations as you receive them. The person appointed to witness the opening of quotations does this and
should have no further role in the quotation process.
On no account should you disclose to bidders who else you have invited to bid or reveal details of any bid to
anyone outside the evaluation team. This applies even after the contract has been awarded
A nil response should be recorded in the Quotation Register if a bidder does not submit a response.
If, by the deadline for receipt of quotations, you have received less than the expected number of responses, check
that none are being delayed internally, such as in the post room, reception or with messengers. Failure to consider
such tenders could result in a later challenge and legal action.
4.2.2 Tender Process
Any purchases above £50,000 (inclusive of VAT) are subject to the University's competitive tendering
procedures. The tender process is more formal than that required for quotations and a standard 'Invitation to
Tender' comprising of a Form of Tender, Specification, Schedule of Prices, University Terms and Conditions and
other documents will be required (Appendix C). These are issued to tenderers to complete and return by an agreed
closing date via the University e-Tendering Portal.
Setting up the Tender Process
A Request for Quote (RFQ) template is available on the Procurement website and must be completed for all
tenders as the first step in the process. It is the responsibility of Procurement to carry out competitive tendering on
behalf of the University or to assist Faculties and Services in doing this. Any communication with the suppliers
involved in the tender process will be facilitated by Procurement only.
All invitations to tender for a requirement must be identical. Individual tenderers must not be offered different terms
or information. Tenderers must be allowed a reasonable period to prepare and submit their tenders, this will depend
on the nature of the requirement.
The number of tenders invited must be appropriate to the nature and size of the contract. This should be a
minimum of three. However, where it is not possible to secure the minimum number because of the nature of the
goods, services or works the written approval of the Commercial Director must be obtained to waiver this
requirement.
Flow chart of over 50k process (Appendix D)
Opening of Tenders
All tender responses are verified by the Procurement Team prior to commencing evaluation. All tenders responses
are opened on the specified return date and time - there are no exceptions. Members of staff must not be
involved in opening, evaluating or awarding tenders from any individual or organisation with whom they have a
family, personal or financial relationship.
Evaluation of Tenders
The award criteria will aim to secure a contract that is the most economically advantageous tender (MEAT) to the
University (i.e. overall best value for money based not solely on consideration of cost).
All other tenders, except those where lowest price is predetermined to be the appropriate criteria, will be evaluated
using the agreed benefit criteria that will include consideration of service quality, sustainability and student added
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value as well as price. The competitive tendering process will aim to secure a contract that is the most economically
advantageous to the University.
Award criteria must be clearly set out in the invitation to tender or equivalent documentation, together with
weighted scoring methodology.
Acceptance of Tenders
Following the receipt of tenders, a tender report will be prepared by Commercial Procurement Services, Finance
and Planning (for goods and services) and the Director of Campus Services (for works).
No tenders will be
accepted without the required prior approval. Tender reports should include the tender evaluation scores. (A
template is available from Procurement Services).
Post Tender Negotiations
Post-tender negotiations (i.e. after the receipt of formal tenders but before the signing of contracts) are only
permissible when it is considered that the recommended tender cannot reasonably be accepted in view of market
price or budgetary provision. Post-tender negotiations may only be undertaken by the Chief Operating Officer or
Commercial Director (or Delegated Authority), to ensure:

it will not distort competition or put other tenderers at a disadvantage; and

it will not affect the tenderer’s confidence and trust in the transparency of the University’s tendering
process.
All post-tender negotiations will be recorded by the Chief Operating Officer and reported to the Employment and
Finance Committee. The University must also disclose this within a report of procurement activity made to HEFCE
on an annual basis.
Tender Report and Award
Upon completion of the tender, Procurement will complete a Tender Report which records the outcome of the
tender and provides a record of the process undertaken to reach that outcome. The Tender Report must be
approved by the Head of Faculty/Service, prior to approval by the Commercial Director, who will then advise on
further authorisation based on value and other risk factors.
A minimum of ten days’ Mandatory Standstill Period must be observed between communicating the intention to
award (subject to contract) decision to all tenderers and the contract conclusion (signing off of the contract
documents, purchase order etc.).
The standstill period should be:

extended if necessary e.g. around public holidays or to comply with individual requirements of the project;

the 10-day countdown commences the day after the award decision is issued to all tenderers;

the Mandatory Standstill Period must end on a working day.
This would not prevent continuing discussions with the preferred supplier (e.g. to ensure prompt mobilisation of
the supplier’s resources once a contract was concluded).
Contract Checklist (or similar)
To facilitate approval by senior stakeholders, all contracts (supply and periodical) in excess of £50,000 (inclusive of
VAT) require a Contract Checklist to be completed and approved prior to entering in to a contract. The Contract
Checklist requires input from Procurement and Legal Services, however it is the responsibility of the Faculty or
Service making the purchase to complete the Contract Checklist and seek the requisite approvals.
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Further details on the requirements of the Contract Checklist can be obtained from Legal Services.
4.3
EU tendering
The University, having taken advice from Queen's Counsel, has reviewed its governance and income as stated in its
audited financial statements for the year ended 31 July 2013 and determined that it is not a contracting authority for
the purposes of EU public procurement regime as implemented by the Public Contracts Regulations 2006 (as
amended).
The University has determined that exception to this will apply and full EU public procurement rules (OJEU) will be
followed where:

where procurement is being undertaken for items which are funded directly from European Union Grants – for
example research grant monies and where funding specifically specifies state aid rules/OJEU needs to be
followed

where the value of the procurement (funded from any source) is over £5 million, or is subject to a significantly
increased level of commercial or reputational risk. This will be determined jointly by the Chief Operating Officer
and Chief Legal Officer in advance of the procurement.
In each case, the tender must expressly state that the OJEU procedure was being followed on a voluntary basis.
4.4
Exemptions
Appendix 2 to the University Financial Regulations set out agreed exceptions to the requirement to undertake
formal procurement procedures. This list has been approved by the Chief Operating Officer and will be reviewed
on an annual basis.
On other occasions, a single supplier waiver may be granted. Examples of such occasions may include:

the repairs of, parts for or additions to existing hardware, machinery or plant or where comparable costs for
repairs, parts or additions would not be compatible with the existing kit;

purchase or repair of articles sold at fixed price, where no variance of price would be obtained by tendering;

for goods, works or services which are obtainable only from one contractor, based on manufacture or
knowledge and full justification and evidence must be provided by the Principal Budget Holder to demonstrate
this.
The Chief Operating Officer will determine along with advice from legal services whether, the University is at risk of
either breaching legislation, or likely to breach Funding Body requirements. Budget Holders must not make any
commitment to suppliers before an Exemption Application has been authorised and must plan sufficient time for a
procurement process to be completed in the event that the Exemption Application is not authorised.
Urgency, where the need has been identified but not progressed will not be accepted as justification for a single
supplier being selected. Expenditure will be monitored and disciplinary action taken where it is found that a
commitment has been made without first obtaining authorisation.
This must be considered to be the exception to the rule and you may only apply for an exemption from the
requirement to obtain quotations or tenders under specific circumstances via a Tender/Quotation Exemption
Application Form which is available at:
http://www.northumbria.ac.uk/sd/central/finance/dept/accounting/procurement/staffinfo/proc_team/proc_guide/q
uot_tendexem/?view=Standard
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4.5
Use of standard Terms and Conditions
All Procurement should be carried out using the relevant University terms and conditions of contract that are
available on the Finance and Planning web pages. (Appendix C)
Any contract with a supplier in consideration of goods, works or services that requires a signature or electronic
acceptance of terms on behalf of the University should be sent to Legal Services and Commercial Procurement
Services for review prior to signature or online submission. This does not include individual purchase orders.
A signature on an agreement or contract indicates the University's acceptance of and inescapable commitment to it,
often including the supplier's terms and conditions which may not be favourable to the University.
Failure to comply with these requirements may result in withdrawal of authority and disciplinary action.
4.6
Framework agreements
The University encourages the use of approved Frameworks as an efficient and effective route to procurement.
Frameworks agreements have been set up by the University and those bodies with which it collaborates for
particular categories of spend. A framework agreement is an agreement with one or more suppliers that sets out the
terms and conditions under which specific purchases (call-offs) can be made throughout the term of the agreement.
There are two main types of framework agreements to which the University is a party:
(a) multi-supplier frameworks, from which the University can place call-off contracts either directly with specific
framework providers or following a mini-competition between framework providers; and
(b) single supplier frameworks which allow the University to purchase on a call-off basis directly from the single
supplier appointed, without the need for a further competition.
Where a framework agreement is in place for a particular category of spend, it should be considered as the first
option for all requirements which fall within the scope of that Framework. Procurement Services will conduct
benchmarking of the framework against the existing contract (if applicable) and against alternative sources of
supply. If the framework represents the most optimal procurement route, it should be used. However, where the
requirement cannot be met via an existing framework agreement, where the University believes that better value for
money can be obtained via an alternative procurement route, or where the requirement is outside the scope of the
framework then it should not be used. Advice should be obtained from the Procurement Office before any decision
is taken not to use a Framework Agreement.
Where a contract is to be operated on a framework agreement, the framework contract must be approved in
advance of the execution of the contract by Employment and Finance Committee if there is the reasonable
expectation that the aggregate expenditure through the life of the framework will exceed £2,000,000
(inclusive of VAT).
If buying goods, services or works from framework agreements, please refer to the buyers’ guide attached to that
framework or seek advice from Procurement Services.
4.7
Payment terms
Supplier payment will be made by BACs following receipt of invoice including the appropriate purchase order details.
This will normally be on the basis of payment within 30 days net monthly, unless notified payment is made via the
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agreed purchasing card methodology or another pre-agreed method. Where it is prudent to deviate from these
payment terms, for example where a prompt payment discount is offered, this will require advance approval from
the Chief Operating Officer or Commercial Director.
It is not usual to pay in advance for services to be carried out, unless a supplier has some prior expenditure,
payment should be agreed on a monthly basis to reflect the services carried out in that month.
Payment for goods should be made only on receipt of the goods, unless some work is being carried out in advance
of the goods being shipped to us. You should not pay more than 10% in advance of receiving goods to reduce the
risks to the University and any agreement to pay a supplier in advance should only be made following a financial
check of the supplier by Procurement.
Any payment milestones or schedule agreed with a supplier should be proportionate with their actual costs
incurred in advance, if in any doubt, contact Procurement for further advice. Such stage payments must only be
authorised if evidence of adequate compliance with the contract is seen.
4.8
Contract Management
All contracts should normally be for 2 to 3 years with a maximum of five years. This allows for further competition in
future and technological changes that occur to be utilised. Some IT contracts may require a longer period, to take
advantage of better terms in advance, but this should only happen if we are clearly going to have the same
requirement in the future, generally for high value, strategically important requirements. Where a contract is
proposed for a period of greater than five years, this should be approved in advance by the Chief Operating Officer
or Commercial Director.
It is the responsibility of Procurement to manage all centrally let contracts and assist external consortia in managing
suppliers that have been procured on our behalf. To enable this to be done, Faculties and Services should always
notify Procurement of any issues that arise during a contract, to allow us to deal with the issues, or pass them on to
someone who can.
The working relationship with the supplier is the responsibility of the end user, if a contract has more than one
Faculty or Service involvement, the wider supplier relationship will be the responsibility of Procurement (or Campus
Services / IT Services where they are the contracting Service) who will:

act as a focal point for University-wide issues with the supplier;

escalate issues that cannot be resolved at the local level;

act as a point of contact for all supplier-produced management information; and

hold regular review meetings with a supplier to monitor performance.
A Service Level Agreement (SLA) should always be considered when awarding a service contract. This should be
tailored to suit the needs of the contract and will be a direct output from the tender specification and should be a
core part of our ongoing evaluation of the performance of the University’s suppliers.
Supplier reviews should take place for all contracted suppliers on a regular basis. The procurement team will identify
a detailed schedule for this.
4.9
Receiving Goods
All goods will need to be “goods receipted” within 24 hours, on SRM/SAP before an invoice payment can be made.
It is important when signing for goods that a check is made to ensure the correct goods are received and they are of
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sufficient quality. It is also important that electrical goods are tested as soon as possible to see if they are working
correctly so any issues can be communicated to a supplier as soon as possible.
4.10 Retention of Documents
Tender or quote documents from a successful supplier are required to be kept for the full period of the contract
plus six years as a minimum. Unsuccessful tender or quote documents should be retained for six months by the
Faculty or Service who initiated the tender or quote documents.
Full details can be found in the Financial Record Retention Schedule (Appendix E)
5
SUSTAINABLE PROCUREMENT
Along with Value for Money, procuring sustainably helps organisations to manage carbon, reduce waste, to
support efficient utilities usage and support social needs.
The purpose of the Sustainable Procurement section of the Policy is to set out the principles, policies and
procedures on which procurement activity within the University must be based.
The University’s commercial Procurement Service aims to minimise our environmental impact and deliver
community benefits through better selection and improved usage of products and services.
In order to achieve this, we will


Encourage and support suppliers to adopt innovative, sustainable approaches in their production of goods
and services and within their own supply chains.
Ask sustainability questions as a matter of routine for any tender process and undertake whole life costing
taking into account purchase cost, operational and maintenance costs, utilities usage and disposal options.;

Consider suppliers environmental and social credentials such as environmental management systems
(ISO14001) or labour rights standards as well as recognised labelling schemes including FSC, MSC or EU Eco
label.;

Where relevant look to procure through suppliers that adhere to International Labour Standards

Monitor and review the response to sustainable questions within tender documents and seek to use the
more appropriate ones within future tendering documents;

Monitor environmental and social issues within tender documents and through contract management.

Address barriers to entry so that SMEs and local suppliers are encouraged to bid for appropriate contracts by
hosting supplier engagement events and ensuring tenders are advertised widely; Look to minimise the use
of energy and water in all processes and evaluate whole life cost thus reducing emissions and utilities waste,
in line with University carbon reduction targets;

Help in the development of sustainable products where our supply chain can deliver benefits;

Promote the use of fairly traded products where appropriate and be an active member of the university’s
Fairtrade Steering Group in order to support the university in retaining its Fairtrade University status

Minimise waste by implementing process efficiencies and utilising reuse opportunities including Warp It.
Ensure goods are disposed of in an environmentally responsible way and in line with the waste hierarchy
(prevention, reuse, recycling, recovery, disposal);
https://www.northumbria.ac.uk/sd/central/campus/enviro/waste_recyc/?view=Standard
17

Ensure that items with a high recycled content are used where there is little difference in cost;

Promote graduate employment opportunities by including, when relevant, scored questions in the tender
process concerning the availability of graduate recruitment schemes.

Identify procurement categories with the largest scope for environmental impact and identify means by
which this impact could be improved e.g. stationery, printing, travel, IT and construction. (To be completed
by July 2016).

Attain Level 4 of the Flexible Framework by July 2020 and participate in networks within the sector to gain
and share best practice in the area of sustainable procurement.

Engage with staff and students to raise awareness of the benefits of sustainable procurement and to draw
attention to specific initiatives undertaken by the Commercial Procurement Service.

Support
the
University’s
Corporate
Strategy
and
other
relevant
sustainability
policies:
https://www.northumbria.ac.uk/sd/central/campus/enviro/envpol/?view=Standard
Deliver training to all procurement staff in relation to sustainable procurement by July 2016.
5.1
Disposal of redundant equipment
It is important that we prevent the production of waste wherever possible. If an unwanted furniture and stationary
item is suitable for reuse, it should first be listed on Northumbria University’s Warp It site (www.warpit.co.uk/NorthumbriaUni). Please note that there are some restrictions on which items can be reused and these are
detailed on the Warp It site.
Where reuse is not possible or suitable, we should always look to sell on equipment after it has reached the end of
its use. It may be that the best value could be achieved by selling back to the original supplier, or to the supplier we
are buying new equipment from, if a replacement is being sought, they will often accept redundant equipment as a
trade in against a new purchase.
When selling on electrical equipment, we have obligations to ensure the safety of anyone we sell equipment to, so
we MUST first of all carry out full electrical testing and give certificates with the delivery note to any purchaser.
We also have obligations under the WEEE Directives on electrical waste disposal; this means that as a seller of this
equipment, we are ultimately liable for its disposal when it reaches the end of its life, unless we are selling on to
someone who has their own waste disposal certificate.
When disposing of IT equipment we also have obligations under the Data Protection Act 1998 to remove all
information contained concerning individuals; we are also required to remove all operating software.
All requests for disposal irrespective of the value must be approved by the Executive Dean or Director of Service.
5.2
Charitable donations and staff sales of redundant equipment
Because of the above mentioned legal constraints, the charitable donation or selling of equipment to staff of
redundant IT equipment is not considered suitable without significant cost and logistical issues which need to be
factored into any decision.
Staff sales or charitable donations of any university-owned item should not be undertaken without the express
approval of the Commercial Director in consultation with Legal Services to ensure our legal obligations are met and
all costs are factored in.
5.3
Student experience
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Where possible within any procurement activity, consideration should be made as to how the student experience
can be enhanced. This could take the form of:





5.4
Job vacancies - Graduate jobs, part-time (no more than 16hrs), seasonal, paid internships
Placements 6-12 month undergraduate and postgraduate industrial/commercial placements, work
experience, projects for students
Sponsorship of events, prizes
Employer forums, guest lectures
Research dissemination
Regional SME considerations
Where possible, within procurement activities, we should look to forge links with the local community to encourage
positive participation and address barriers to entry to encourage local, regional, SME and ethnic minority suppliers
to bid for University contracts. This can be achieved by utilising SME and Regional scoring criteria in tender
evaluations where appropriate and practicable.
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6
PROCUREMENT ETHICS
You should refer to the Governance Services area of the University intranet site for detailed information on ethics. In
particular, you should refer to the Disclosure and Conflicts of Interest Policy at the link below:
https://www.northumbria.ac.uk/static/5007/uso/disclosure.pdf
The Head of Governance maintains the Staff Register of interests through which staff have professional or personal
interests to disclose, which may include shares or other interests in companies from which the University procures
suppliers or services, staff submit interests through an online survey tool on the University intranet.
If a member of staff becomes aware of potential conflicts of interests that have not been declared by purchasing
Approvers, it is encouraged that this raised with a member of the Senior Management Team and if not satisfied
then they may wish to follow the Public Interest Disclosure (Whistleblowing) Policy set out on the Governance
Services pages of the University intranet.
https://www.northumbria.ac.uk/about-us/leadership-governance/vice-chancellorsoffice/governance-services/university-policies-and-procedures/university-public-interest-policyand-procedure/
6.1
Equal treatment of suppliers
It is a legal requirement that all suppliers are treated equally in any competitive process, either above the EU tender
levels, or below. They should have the same availability of access to specifications, plans, University staff time,
facilities etc. Evaluation criteria should be decided in advance and where possible be made available to suppliers to
show they will be treated fairly.
All suppliers are also entitled to be debriefed at the end of a process and informed of the winning bidder. It is a
time consuming and costly process submitting detailed quotes and tenders and if we want an unsuccessful supplier
to consider bidding next time we run a competition, we need to treat them in a fair and professional manner.
Any discussions and or correspondence prior to the conclusion of procurements should be on a “without
commitment” basis and this phrase should be clearly stated on any such correspondence. The contract offer or
purchase order should be the only point at which commitment is made.
6.2
The Bribery Act 2010
All staff should also be aware of The Bribery Act 2010, which came into force in April 2011. The University, its
employees and contractors/bidders are all covered by the Act. To meet our obligations under the Act, Northumbria
University has a Fraud and Bribery Policy which can be found here:
https://www.northumbria.ac.uk/static/5007/uso/fraudpolicy.PDF
The four principle points to note in relation to offences under the Act are:

The Act extends the crime of bribery to cover all private and public sector transactions (previously bribery
offences were confined to transactions involving public officials and agents). These offences cover all legal
persons (which includes companies and individuals);

The Act creates a new offence of failing to prevent bribery which applies to commercial organisations;

The scope of the Act is extensive - the offences are very broadly defined and it has significant extraterritorial reach; and
20

The offences contained in the Act carry criminal penalties for individuals and organisations. For individuals,
a maximum prison sentence of ten years and/or an unlimited fine can be imposed; for companies, an
unlimited fine can be imposed.
6.3
Acceptance of gifts or hospitality
It is normal business practice for suppliers to provide items of low intrinsic value (pens, notepads, mugs, calendars,
diaries and so on), incorporating their name and logo, for their customers. It is acceptable for members of staff to
receive these gifts. If in doubt, other than gifts of this kind all other gifts should be declined. Unsolicited gifts which
are received by members of staff should be returned with a polite note explaining it is University policy not to
accept gifts of this kind.
Where hospitality in the form of a meal or refreshments is offered in connection with meeting or event organised
with an outside party, this can be accepted provided the hospitality offered is reasonable in relation to the event.
Where the hospitality offered takes the form of an invitation to a social or sporting event the member of staff
concerned should consult their Executive Dean or Director of Service before accepting. In considering whether or
not to accept the invitation, particular care should be taken to ensure that questions of actual or alleged improper
influence have been fully considered. All other offers of hospitality should normally be refused. In particular:

substantial offers of invitations to social functions;

travel costs;

provision of accommodation; or

any inducements to either do or not do something which could affect the contractual position between the
University and a potential supplier of goods and/or services.
In this last case any such approach by a potential or current supplier should be reported immediately to the
Commercial Director
Any personal interest which may affect or be seen by others to affect an employee's impartiality in any matter
relevant to his or her duties should be declared.
The University’s Gifts and Hospitality policy in respect of can be found at:
https://www.northumbria.ac.uk/static/5007/uso/giftspolicy.pdf
6.4
Confidentiality
The Freedom of Information Act 2000 (FOIA) gives public access rights to certain information which would
previously have been deemed confidential. External requests for information relating to the University's purchasing
activities, including information about the University's suppliers, must be referred to the Commercial Director in the
first instance. If they are formal requests under the Freedom of Information they should be directed to Legal
Services immediately.
The confidentiality of information received in the course of duty must be respected and should never be used for
personal gain.
21
7
MONITORING AND AUDIT
Procurement will carry out checks on a regular basis of who the University is paying to ensure that Value for Money
is achieved, existing contracts are utilised and legal obligations are met (in consultation with Legal Services).
As an organisation in receipt of public funds the University is subject to scrutiny by HEFCE, the Research Councils
and the National Audit Office, as well as regular reviews by our internal auditors. These bodies require the
Commercial Procurement Policy to be carried out effectively.
A return is made to HEFCE annually detailing savings made through procurement activity and a separate return
made annually showing how many full EU tender exercises are carried out.
It is the responsibility of Procurement to show that adequate policies, procedures and checks are in place to enable
this and to demonstrate its effectiveness
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APPENDIX
Appendix A
https://www.northumbria.ac.uk/sd/central/finance/stafflist/procurementservices/staffinfo/proc_team/proc_g
uide/tender_procure/?view=Standard
Appendix B
https://www.northumbria.ac.uk/sd/central/finance/stafflist/procurementservices/staffinfo/proc_team/proc_g
uide/rfq_/?view=Standard
Appendix C
Procurement post
OJEU.pptx
General Conditions
of Contract for University of Northumbria.pdf
Appendix D
50K Top Line Tender
Process Map.vsd
Appendix E
https://www.northumbria.ac.uk/about-us/leadership-governance/vice-chancellors-office/legal-servicesteam/records-management/records-retention-schedule/
23