Procurement Manual

Glasgow Caledonian University - Procurement Page 1 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 Page 12

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:

 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.  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, 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 Action required (over a 4 year period) Ensure value for money has been Under £10,000 - goods and services obtained, normally with a minimum of 2 Under £100,000 - works/construction quotations, and retain evidence to support the decision

Between £10,000 and £50,000 - goods and services Follow Between £100,000 and £2M – works / GCU Procurement Journey Route 1 construction

Over £50,000 and below £170,000 - goods and services Consult Procurement for GCU Over £2M and below £4.3M works / Procurement Journey Route 2 construction

Over £170,000 - goods and services Consult Procurement for GCU Over £4.3M - works/construction 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.

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.

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.

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.

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 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: being fair, efficient, firm and courteous; maintaining the highest possible standard of integrity in all business relationships; acquiring and maintaining current technical knowledge; achieving appropriate professional standards in the management of contracts; fostering appropriate standards of professional competence amongst those for whom they are responsible; complying with the law, guidance on professional practice and contractual obligations; declaring any personal interest which may affect or be seen by others to affect impartiality; 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 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: 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. 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 Anti- Bribery 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 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.

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.

Glasgow Caledonian University - Procurement Page 13