Download Report

PRI PROCUREMENT POLICY AND AUTHORISATION LIMITS
(DRAFT)
POLICY INTENT
The policy provides the basis for the PRI to provide best value to its signatories, stakeholders and
the wider community in the manner in which it carries out its duties, functions, responsibilities and
obligations in the purchasing and provision of goods and services.
This document sets out the PRI’s policy with respect to tendering, contracting and procurement
including:

Contracting in of services;

Purchasing; and

Competitive tendering and the use of other measures to ensure that goods are acquired and
services are delivered cost effectively.
The PRI is committed to ensuring a fair, transparent and accountable process, in the provision of
services and the purchasing of goods and services.
RELEVANT ARTICLES
Article 7: Conflicts of Interests
7.4 A conflict of interests may only be authorised under Article 7.4 if:
7.4.1
the unconflicted Directors consider it is in the interests of the Company to do so in
the circumstances applying;
7.4.2
the procedures of Article 7.1 are followed in respect of the Authorised Conflict;
and
7.4.3
the terms of the Procurement Policy are complied with in respect of any direct or
indirect benefit to the conflicted Director which may arise from the Authorised
Conflict.
Article 12: Powers and duties of the PRI Association Board Directors (the Directors)
12.5 The Directors must comply with the Procurement Policy.
Article 19: Rules and Policies
19.1 The Directors must devise and publish on the Company’s website:
19.1.3 a policy for procuring the supply of goods and services to the Company (the
Procurement Policy).
PROCURMENT POLICY
Objectives
1. This policy provides direction to PRI staff in relation to the Tendering, Contracting and
Procurement function of the PRI and aims to establish a framework that will:
1.1. Deliver best value for money in the acquisition of goods and the delivery of services to
the PRI’s community;
1.2. Ensure the efficient, effective and responsible use of resources;
1.3. Ensure accountability and transparency;
1.4. Ensure that PRI’s purchasing activities are in accordance with its legislative and common
law responsibilities;
1.5. Encourage competition;
1.6. Embrace environmentally and socially sustainable procurement; and
1.7. Appropriately manage risk.
Procurement Methods and Monetary Limits
2. PRI may purchase goods and services in the following manner:
2.1. Direct sourcing and purchasing from a particular supplier;
2.2. Obtaining quotations, either written or verbal from suppliers to select a supplier;
2.3. Requesting tenders from a selected range of suppliers; and
2.4. Calling for open tenders.
3. The method chosen will be based on what is appropriate in the circumstances and the size of
the procurement.
4. The method of purchasing to be adopted by the PRI will depend on a consideration of the
circumstances in a particular case, including the following factors:
4.1. The estimated cost of the goods or services to be purchased and their required quality;
4.2. Available budget and other resources;
4.3. The number of known suppliers of the goods or services;
4.4. Capacity of suppliers to provide goods and services in a timely manner;
4.5. The frequency of use, urgency and the convenience of the goods or services required;
4.6. Previous experience with the same suppliers; and
4.7. Compliance with statutory obligations.
Purchasing guidelines
5. PRI staff in the conduct of their procurement activities should as far as reasonably practicable
in the circumstances, adhere to the following guidelines:
5.1. Staff engaged in purchasing should at all times undertake their duties in a professional,
ethical and impartial manner, act responsibly and exercise sound judgement, ensuring:
5.1.1.there is a genuine operational need for the purchase,
5.1.2.all cost effective opportunities for products to be shared, upgraded, refurbished, or
delivered as a service have been exploited,
5.1.3.The product will be used efficiently, minimising waste.
5.2. All processes relating to PRI purchases will be open, fair and transparent.
5.3. Staff must ensure that appropriate records are kept e.g. emails, quotes, tender
documents.
5.4. Staff should not disclose information that confers unfair advantage or financial benefit or
detriment on a supplier or potential supplier.
5.5. Staff should not engage in any activity that would create a conflict of interest.
2
5.6. No goods or services are to be purchased by an officer unless they have been approved
in the Annual Budget of the PRI or a subsequent Budget Review, or have been
specifically approved by the Board.
5.7. All expenditure must be approved by an Officer with delegated financial authority (see
below monetary limits). The PRI shall appoint and review annually, authorised officers
and their financial limitations for the purpose of purchasing goods and services as
included in the current budget and relevant to the officer’s position.
Monetary Limits:
6. Department Heads, and above, are authorised to spend within the budget approved by the
Board.
7. Budgeted expenditure may be exceeded in a particular expense category subject to savings
being found in other expense categories, i.e. budgeted expenditure may be swapped or
exchanged, such that overall budgeted expenditure is not exceeded.
8. This swap of expenditure needs to be approved by the relevant departmental director.
9. Where this swap is in excess of £5,000 it must be communicated to the Director of Operations
& Finance so that he may incorporate this in future forecasts.
10. Where overall expenditure is expected to be in excess of the budget it must be approved by
the Board.
Monetary Thresholds
11. If a monetary amount in relation to procurement is referred to in this policy, the amount
referred to is in relation to the entirety of the procurement, including any options, extensions
or variations to the initial procurement.
Minor Procurement [less than £10,000]
12. Where goods/services are required which are estimated to cost less than £10,000, a
reputable supplier/s who has/have had a reputation of cost effective work for the PRI, may be
asked to quote for and undertake the work.
13. Where the minor procurement could be fulfilled by a signatory organisation (current or
potential), minor procurements will be posted on the PRI website and elapse time of 15 days
allowed. Where applicable the PRI Principles to which the procurement relates should be
stated in the procurement specification. All prices are to be submitted in writing and awarded
on merit by the relevant departmental director.
14. As a general rule purchasing Officers should compare the market to ensure PRI is maximising
its purchasing power.
Major Procurement [In excess of £10,000]
15. Where goods/services are required which are estimated to cost more than £10,000 a
competitive pricing process is to be used. When practical, major procurements will be posted
on the PRI website and an elapse time of 15 days allowed. Where applicable the PRI
Principles to which the procurement relates should be stated in the procurement specification.
All prices are to be submitted in writing and awarded on merit by the relevant departmental
director.
16. All invitations to tender must specify a closing date and time, which may only be extended by
the relevant departmental director.
3
17. The PRI will post on its website the names of organisations that are awarded major
procurement projects.
Consideration of Tenders
18. All bids received shall be presented in summary form to the relevant departmental director for
consideration with the following details:
18.1.
details of any advertising placed for the tender (if any);
18.2.
18.3.
closing date of the tender;
the approved budget allocation for the tendered goods or services;
18.4.
18.5.
A recommendation as to the preferred supplier.
A copy of this document together with the final award must be filed with the
Director of Operations & Finance.
19. Tender documents should be retained for a period of not less than 6 years.
Risk Management
20. The Board will ensure that appropriate risk management practices and procedures are in
place for tendering, contracting and procurement activities including risk identification,
assessment and implementation of controls.
21. Officers will be responsible for ensuring appropriate practices and procedures for internal
control and risk management are adhered to during its tendering, contracting and
procurement activities.
Review and Evaluation
22. The effectiveness of this Policy will be reviewed and evaluated annually. The Director of
Operations & Finance will report to the Board on the outcome of the evaluation, and make
recommendations for amendments, alteration or substitution of a new Policy, if relevant.
4