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Fundamentals of Procurement

Fundamentals of Procurement. Kathy Hill, Finance Services 8 November 2006. Scope. Context Procurement Tools University Suppliers Quotations and Tenders Procurement Planning Why Use Contracts? More Information. 1. Context Spend Analysis 05/06. £62,647,674 (non-pay items)

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Fundamentals of Procurement

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  1. Fundamentals of Procurement Kathy Hill, Finance Services 8 November 2006

  2. Scope Context Procurement Tools University Suppliers Quotations and Tenders Procurement Planning Why Use Contracts? More Information

  3. 1. ContextSpend Analysis 05/06 £62,647,674 (non-pay items) 7073 firms received payments 73794 invoices settled 15289 purchase orders issued 4,000 NatWest card transactions

  4. Legal Framework EU Procurement Directive EU & UK Legislation e.g. waste & sustainability impacting on specifications

  5. Regulatory Framework Financial Regulations go to: www.admin.ex.ac.uk/finance/regulations/exeterregs.htm Financial Handbook go to: www.admin.ex.ac.uk/finance/handbook/index.htm (Purchase Orders) Consortia Audit (incl. document retention)

  6. Meet Our Customers! Staff (all levels of seniority) of the University of Exeter, University College Falmouth, Tremough Campus Services, other HEIs Tenderers & Suppliers HEFCE/other Funding Councils Other Public Sector Bodies e.g. Devon County Council

  7. Meet the Team……….. Kathy Hill, Purchasing Coordinator (tel. 3104) Mike Pearce, Procurement Contracts Officer (tel. 3672) Offices at The Old Library, Streatham Campus

  8. 2. Procurement Tools Contracts/Framework Agreements – CuPiD go to: http://www.cupid.ac.uk/Application/Home.aspx Aptos Purchase Orders NatWest Purchasing Cards Online Ordering From Contract Suppliers

  9. Procurement Tools – New, or in Development EMM Tool NatWest Cards Online E-procurement E-tendering

  10. 3. University Suppliers Contract suppliers Preferred suppliers/approved lists The ‘Great Unwashed’!

  11. 4. Quotations & Tenders All financial thresholds are calculated on an ‘EX VAT’ basis and equal theaggregated spendon the commodity by person, school, service, or institution Table of Financial Thresholds at which the Regulations apply

  12. Financial Thresholds

  13. Quotations Minimum 3 written quotes Must be for ‘LIKE’ commodities ‘Best Value’ offer wins Order refers to Quote Ref. No. Quotes kept with purchase order Register kept of all quote action

  14. Tenders Items 1 – 4 for quotes apply Other assurances sought e.g. account management, customer service, financial stability, sub-contractors Tenders, ‘Register of Interests’ & ‘Tender Opening Record’ kept with purchase order/specific file

  15. EU Tenders (1) Procedure governed by EU legislation – Procurement will advise Timetable for completion: 3 months minimum depending on route used & staff resource availability Contract value – single purchase or 48 x mthly spend or 4 x yearly spend

  16. EU Tenders (2) Tenders must state the contract award criteria & weightings Financial appraisal & customer references Mandatory standstill period

  17. 5. Procurement Planning Seek advice early when planning the delivery of projects/major purchases to ensure the procurement process does not impede achievement of project deadlines & goals Planning facilitates Procurement to timetable resource to support delivery of your project objectives. Properly planned procurement minimizes the risk of non-compliance with legal (penalties – legal redress) & regulatory frameworks (penalties – Audit Committee)

  18. 6. Why Use Contracts? University View (1) Awarded after tender procedure & user consultation. Comply with legal & regulatory frameworks, minimizes reputational risk, specifications will be fit for purpose Maximizes benefit from leverage. Discounts achieved based upon the required specification incl. Quality standard (BS14000, BS5852), delivery service (next day/3 wks), account management, stage payments, maintenance contract & transfer of title/risk in goods.

  19. Why Use Contracts?University View (2) Quality management information available to procurement on spend with firm/contract. Facilitates on-going contract management including negotiation of enhancements e.g. specification, service delivery & price stability

  20. Why Use Contracts?Advantages for Users User directed contracts incl. Consultation re specifications, tender procedure, timetable, award criteria, contract award Suppliers who understand your needs e.g. account management Support from Procurement to resolve problems Risk reduction – duty of care e.g. sustainability legislation No need to obtain quotes, or tenders. JUST ORDER

  21. 7. More Information? http://www.admin.ex.ac.uk/finance/procurement http://www.admin.ex.ac.uk/finance/ http://www.cips.org (Chartered Institute of Purchasing & Supply) http://www.proc-he.ac.uk/ (Proc-HE)

  22. Thank you for listening

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