Procurement Manual
Procurement Manual
Glasgow Caledonian University - Procurement
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Procurement Manual
Contents Page
1. Introduction
Page 3
2. Structure of the Procurement Organisation
Page 3
3. Sustainable Procurement Policy
Page 3
4. Procurement Journey
Page 5
5. Purchasing Goods and Services
Page 8
6. Assets
Page 9
7. Ethical Code of Conduct
Page 10
8. Procurement Training
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1. Introduction
1.1. The purpose of this Manual is to provide detailed guidance and best practice to
University staff on managing individual procurements. The contents of this Manual
apply to the purchase of all goods, services and works for the University. This
Manual is the key document for implementing the University Procurement
Strategy and ensuring compliance with the University Financial Procedures and
Regulations. All these documents can be found either on the GCYOU Finance
Office website or within this document.
1.2. The Manual is subject to ongoing review to ensure it remains relevant and
appropriate for the users and stakeholders. Amendments to the Sustainable
Procurement Policy and Procedures will be issued by Procurement when required
and these will be brought to the attention of users and stakeholders.
2. Structure of the Procurement Organisation
2.1. The University’s Procurement Strategy is owned by the Head of Procurement.
The Head of Procurement is responsible for the delivery of an effective process
for the procurement of goods, services and works, together with providing related
guidance, advice and support. The Head of Procurement also acts as a focal
point for general procurement issues and the escalation of specific procurement
problems. The Chief Financial Officer, or his designate is the final arbiter on all
matters relating to procurement at the University.
2.2. Procurement has regular dialogue with all of its key stakeholders.
The
Procurement Stakeholder - Communications Strategy documents Procurements
relationships with all of its stakeholders.
3. Sustainable Procurement Policy
3.1. Sustainable Procurement is defined as the use of procurement to support wider
social, economic and environmental objectives that deliver benefits to the
organisation, society and the economy whilst minimising damage to the
environment.
3.2. The University Sustainable Procurement Policy supports and helps deliver the
University’s Environmental Policy http://www.gcu.ac.uk/sustainability/ourcommitments/environmentalpolicy/
3.3. The University will strive to deliver Sustainable Procurement through:
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Ensuring that all procurement decisions are taken in the spirit of the University
Environmental Policy and that associated carbon savings are included within
the Carbon Management Plan.
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In accordance with the University environmental management system, assess
the impact of on-going spend relating to environmental aspects.
Ensuring procurement decisions include whole-life cost, energy consumption
and disposal considerations, wherever practicable.
Ensure that, where appropriate, environmental criteria are used in the award
of contracts.
Following “reduce, re-use and re-cycle” best practice.
Address barriers to entry so that SMEs and local suppliers are encouraged to
bid for appropriate work.
Work with suppliers to help them understand the University sustainability
objectives and find lower impact alternatives where applicable.
Work with key suppliers to bring about changes and thereby spread
sustainability improvements throughout the supply chain.
Complying with all relevant procurement, environmental and other legislation.
Investigating the University’s non-pay spend in order to identify high
sustainability-impact suppliers and, where possible, reducing these impacts.
Assessing and monitoring suppliers’ sustainability performance before, during
and after contract award.
3.4. Purchasing within the University must be carried out in accordance with the
Procurement Strategy and the Policies, Procedures and Guidelines set down in
the Procurement Manual and the University's Financial Regulations and Financial
Procedures.
3.5. As a public institution, we are accountable and must ensure that our procedures
withstand the scrutiny of internal and external audit.
3.6. Procurement activities must also be aligned to the Scottish Procurement Policy
Handbook, the Scottish Procurement – Procurement Journey.
3.7. All University staff who are authorised to purchase for Glasgow Caledonian
University are required to demonstrate value for money and obtain supplies,
equipment, services and works at the lowest possible cost consistent with quality
and delivery requirements, and in accordance with sound business practice,
taking due account of relevant ethical and environmental standards.
3.8. Purchasing decisions must always take account of the technical requirements of
the user, whole life costing, the management of commercial risks, compatibility
with existing infrastructures and investments and environmental considerations.
3.9. Executive, Deans of School, Heads of Departments and Budget Holders are
responsible for ensuring that all purchasing activities within their areas operate in
accordance with the University's Sustainable Procurement Policy and Procedures,
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the University Financial Procedures and Regulations and are compliant with all
applicable legal requirements.
4. Procurement Journey
4.1. Threshold levels
The following threshold levels should be applied to all procurement actvities
unless you are procuring through an existing collaborative agreement or the
exception of the Sole Source Justification Process. These values should be
calculated to take into account of the total expenditure for the goods and services
over a four year period.
Value of Purchase
(over a 4 year period)
Under £10,000 - goods and services
Under £100,000 - works/construction
Between £10,000 and £50,000 - goods
and services
Between £100,000 and £2M – works /
construction
Over £50,000 and below £170,000 goods and services
Over £2M and below £4.3M works /
construction
Over £170,000 - goods and services
Over £4.3M - works/construction
Action required
Ensure value for money has been
obtained, normally with a minimum of 2
quotations, and retain evidence to
support the decision
Follow
GCU Procurement Journey Route 1
Consult Procurement for GCU
Procurement Journey Route 2
Consult Procurement for GCU
Procurement Journey Route 3
More detailed information on the Procurement Journey can be found on the
Procurement GCYOU pages.
4.1.1. Route 1
This route should be followed for procurements of a relatively low value, risk
and a non-repetitive nature.
The step by step guide guidance for this route can be found on the
Procurement website.
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4.1.2. Route 2
This route should be followed for the procurement of goods and services
classed as moderate value and risk. Procurement processes under this
route should only be undertaken under the guidance of trained Procurement
Officers.
4.1.3. Route 3
This Route should be followed for the procurement of goods and services
classed as high value/high risk/strategic procurements. Procurement
processes under this route should only be undertaken under the guidance
of trained Procurement Officers.
4.2. Specification Guidance
To assist departments with the procurement of goods and services, there is
guidance on the development of specifications for procurement exercises. This
guidance links to the Finance Office Business Case guidance.
4.3. Evaluation Guidance
Where you are involved in the evaluation of tenders for the procurement of goods
and services, there is guidance on the do’s and don’ts of evaluating tender
responses.
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4.4. Use of Collaborative and Institutional Contracts
The University has a number of institutional contracts in place which have been
awarded to suppliers or service providers, following a tender process. The
University will also seek, together with other Higher and Further Education
Institutions, sector and national centres of procurement expertise and other public
sector bodies, to utilise collaborative arrangements to obtain optimal terms for the
purchase of goods and services where such collaboration provides demonstrable
benefit to the University. These collaborative agreements that have been
negotiated on our behalf by Procurement consortia or other Scottish Public Sector
bodies.
Prior to commencing any Procurement Process, you should contact Procurement
to check whether your goods or services are covered by an existing agreement.
Where agreements exist, Procurement may have to ensure that the use of such
frameworks is in compliance with the strategic approach of the University and any
appropriate legislation. Details of existing agreements can be viewed at
Procurement Sharepoint. You may not have access to view all available
agreements, so it is always advisable to contact Procurement before proceeding.
4.5. Exceptions – Sole Source Justification Process
The majority of purchases of goods and services should be based on the above
competitive bids processes. Where the supply of a good or service can only be
purchased from one supplier because of its specialised or unique characteristics,
this should be justified through the ‘Sole Source Justification Form’.
This method of acquisition should not be used to avoid competition or where
decisions to procure have been postponed and insufficient timelines to procure
through the Routes above exists. A ‘Sole Source’ procurement means that only
one supplier (source) exists, to the best of the requester's knowledge and belief,
based upon thorough research, (i.e. conducting a market survey), capable of
delivering the required product or service. Similar types of goods and services
may exist, but only one supplier, for reasons of expertise, and / or standardisation,
quality, compatibility with existing equipment, specifications, or availability, is the
only source that is acceptable to meet a specific need.
The ‘Sole Source Justification Form’ sets out the reasoning behind the sole
supplier claim and can be downloaded from the Procurement section of the
Finance Office portal. Sole source justifications are open to challenge by the
Head of Procurement and copies of all documentation should be attached to any
order which is placed, as evidence of appropriate value for money checks.
Where the value of the purchase exceeds £10k, the completed Sole Source
Justification Form must be sent to the Head of Procurement for approval and
authorisation.
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This form is available on the Finance Webpage under ‘Forms’.
4.6. Document Retention Policy
Copies of all quotations and tenders and any subsequent correspondence
relevant to the suppliers’ offer, the tender opening record, the tender analysis, any
scoring matrix and the written justification of the decision (as may be required
below) must be kept until 12 months after the end of the financial year of
purchase. After that, all unsuccessful quotations/tenders may be destroyed using
confidential means. The successful quotation/tender must be kept until 12
months after the end of the contract (which is normally the date of acceptance of
the goods or services for one-off contracts, or the end of any guarantee or
warranty period or the final date following any applied extension period for term
agreements).
5. Purchasing Goods and Services
5.1. Authority to Procure
All Procurement is subject to the approval processes and limits set out in the
Scheme of Delegated Authority which forms part of the University Financial
Procedures.
As part of the budgetary control process, it is the Cost Centre Managers'
responsibility to control departmental expenditure. The Cost Centre Manager may
choose to delegate authority for procurement related matters to nominated
buyers. This does not absolve the Cost Centre Manager from the ultimate
responsibility and accountability for the proper execution of the purchasing
process.
The extent to which nominated buyers are accountable should be clearly defined
and documented by the completion of the ‘Scheme of Delegation Form’. These
forms are available on the Finance Office page of GCYOU under ‘Forms’.
5.2. Purchase Orders
An official Purchase Order (PO) must be raised for goods and services to be
purchased by departments on behalf of the University using the automated order
system, PECOS. The only exceptions are those items which have approval from
Finance. (e.g. Utilities, periodicals, etc.)
University Financial Procedures must be applied when an order is placed using
the PECOS system (i.e. there must be a segregation of duties between the
originator of the order, the requisitioner and the approver or authorisation of the
order). This forms part of the business rules built into PECOS at organisational
level.
5.3. PECOS
The University uses PECOS purchase-to-pay (P2P) eProcurement system for the
electronic ordering of all goods and services.
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More detailed operational procedures can be found on the Procurement web
pages.
5.4. New Suppliers
Wherever possible the addition of new suppliers must be kept to a minimum.
Existing suppliers must be given full consideration to ensure best value and to
prevent the unnecessary administration costs of adding suppliers to the PECOS
system and Oracle Financials Database.
All Credit Account Application forms from potential new suppliers must be
completed by the department and sent to the Operational Services - Accounts
Payable Section of the Finance Office for approval.
Prior to the award of any high value contracts, it is standard procurement practice
to carry out a credit check into the financial background of a potential or new
supplier.
5.5. Payment of Invoices
University policy is that invoices will only be paid if the receipt of goods or services
is in accordance with the University Terms and Conditions of Purchase. The
PECOS system allows 3 way matching using purchase order, receipt and
compliant invoice to streamline the process to authorise payment.
Where authorisation of invoices for payment is outwith the PECOS system it must
be in compliance with the Scheme of Delegated Authority and clear segregation of
duties is required for payment authorisation.
5.6. Vat and Vat Exemption
In the majority of cases, VAT will have to be paid at the appropriate standard rate.
This therefore, should be taken into account when carrying out any price
comparisons and it should be the total cost, which is indicated on the purchase
order. In certain areas (e.g. Medical Research, advertising of charity activities)
goods or services may be exempt provided that appropriate vat exemption
certification documentation is included with the purchase order.
The Finance Office will advise on areas where VAT Exemption may be applicable
and the implications of any changes in VAT legislation. Finance Office should be
contacted to assist in any instances of doubt.
6. Assets
6.1. General
The University has a responsibility to ensure that its assets are used, maintained,
and where and when necessary, replaced.
Cost Centre Managers are
responsible for the financial administration of the funds within their approved
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budgets. In exercising their responsibilities, Cost Centre Managers must have
regard to security measures to safeguard University funds and other assets under
their control against misuse or misappropriation. Guidance on the University
Asset Register is on the Finance Office webpages.
7. Ethical Code of Conduct
7.1. Ethics
The University has a commitment to observe the highest standards of probity
and integrity in all its business transactions. Any member of University staff
responsible for purchasing or involved in a procurement or tender process must
promote this commitment by:
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being fair, efficient, firm and courteous;
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maintaining the highest possible standard of integrity in all business
relationships;
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acquiring and maintaining current technical knowledge;
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achieving appropriate professional standards in the management of contracts;
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fostering appropriate standards of professional competence amongst those for
whom they are responsible;
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complying with the law, guidance on professional practice and contractual
obligations;
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declaring any personal interest which may affect or be seen by others to affect
impartiality;
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respecting the confidentiality of information received in the course of duty and
ensuring that information given in the course of duty is honest and clear; and
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responding promptly, courteously and efficiently to suggestions or enquiries,
including handling Freedom of Information obligations according to
organisational policies.
7.2. Disclosure of Interest
Where a member of staff considers that there is an actual or potential conflict of
interest arising from existing or prospective commitments or involvement, he or
she should seek advice from the Head of Department and should formally
declare any source of potentially conflicting interest as instructed in the Financial
Procedures and Financial Regulations.
Potential conflicts of interest shall include:
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the member of staff or their immediate relative acting as a director or employee
or providing services for reward to any organisation with whom the University
has a business relationship.
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the member of staff or their immediate relative investing substantially in, or
receiving benefits directly or indirectly from any organisation actually or
potentially engaged in the supply of goods or services to the University.
Where a member of staff has made such a disclosure they will not be permitted
to take any part in the decision making process for a related tender or be
involved in issuing a purchase order to the company in question.
7.3. Confidentiality and Accuracy of Information
Information received during a member of staff's University duties in the course of
business relations should be treated as strictly confidential and should not be
revealed to other sources, nor should it be used for personal gain. Information
supplied must be accurate, objective and must not be designed to mislead a
supplier.
7.4. Gifts
No member of staff may accept business gifts or other personal rewards of other
than token or nominal value (e.g. diaries, pens, calendars). Any gift intended to
influence business transactions with the University ought to be politely declined.
If gifts cannot be returned, they should be donated to charity and the supplier
informed of this decision.
The University is required to ensure that is in compliance with the Bribery Act
2010. It is a corporate offence to fail to prevent bribery.
Full guidance and information on the procedures are available within the AntiBribery Policy.
7.5. Hospitality
Modest hospitality may be accepted as a courtesy, provided that it is reasonably
related to the proper conduct of business.
Hospitality of a kind calculated to subject the recipient to illicit obligations should
always be refused. The recipient of the hospitality should carefully consider the
perceptions of third parties as to whether this is likely to have influenced
decisions.
The frequency and scale of hospitality accepted should not be significantly
greater than the University would be likely or able to provide in return.
It is recommended that each school or department maintain a hospitality register
to record offers of hospitality from suppliers or service providers. Members of
staff with purchasing responsibilities are required to report such offers to their
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line manager. Further information is available in the Financial Procedures and
Financial Regulations.
7.6. Use of University Contracted Suppliers or Service Providers for Personal
Works
With the exception of those suppliers or contractors who offer discounted terms
for staff and students for personal purchases, the use of contractors for personal
works must be reported to line managers. An annual declaration of such use may
be appropriate and may be referred to Internal Audit.
7.7. Financial Misconduct
Suspected fraud, misappropriations or any criminal offences, in respect of the
use of University funds should be reported as instructed in the Financial
Procedures and Financial Regulations and the Financial Misconduct Policy
available on the Policies and Guidelines section of the Finance Office website.
7.8. CIPS
The professional body representing the procurement community, The Chartered
Institute of Purchasing and Supply’s (CIPS), Code of Conduct should be
regarded as mandatory for all staff with purchasing responsibilities.
7.9. Complaints
The University has established a formal process to ensure that any complaints
from all parties are dealt with in a professional, objective and timely manner.
Further details are available on the University’s Complaints Handling Procedure
can be found here.
A Single Point of Enquiry (SPOE) has been established by the Scottish
Government to which suppliers can address concerns about public procurement
practices. The SPOE works with the Centres of Expertise (including APUC) and
Contracting Authorities to review issues raised by suppliers and to work towards
improvements in public procurement practices in Scotland.
In all cases, suppliers should be encouraged to seek to resolve issues with the
University before submitting an enquiry to the SPOE.
8. Procument Training
Procurement staff are qualified and experienced personnel who attend training on a
regular basis as part of their continuous professional development (CPD).
Procurement recognises that, at a departmental level, the procurement of goods or
services forms only part of the individual's workload and responsibility. This does not,
however, remove the need for appropriate staff to develop their knowledge of proper
procurement techniques and procedures.
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In conjunction with the People Passport Programme run by People Services,
Procurement will undertake a number of training events to make staff aware of the
procurement processes required and the support available to staff to carry out this
activity.
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