Purchasing and Procurement Policy and Procedures

Transcription

1 Purchasing and Procurement Policy and Procedures Adopted by the Boa Adopted by the Board of Laois and Offaly ETB on Adopted by the Board of Laois 4 April 2016 and Offaly ETB on rd of Laois 11 December and Offaly 2017 ETB on 4 April 2016 Adopted by the Board of Laois and Offaly ETB on 4 April

2 CONTENTS Section Page No LOETB General Purchasing and Procurement Procedures 1. Procurement Definition 3 2. Objective of Procurement Procedure 3 3. Tax Requirements 3 4. Key Principles 4 5. Purchasing Limits 4/5/6 6. Exceptional Circumstances 6 7. Quotation Procedures 7 8. Tendering Procedures 8/9 9. Conduct 10/ Misappropriation etc. 11 LOETB Training Function Procedures 11. Procurement and Approval Levels Appendices Appendix 1 Appendix 2 Appendix 3 Thresholds (exclusive of VAT) above which advertising of contracts in the Official Journal of the EU is obligatory, applicable from 1 January 2014 Advertising Requirements Register of Tenders Appendix 4 Approval for Purchase of goods with a value of 10,000 or greater but less than 50,000 Appendix 5 Appendix 6 Declaration of Bona Fide Statutory Obligations Declaration 2

3 LOETB General Purchasing and Procurement Procedures 1. Procurement Definition The acquisition, whether under formal contract or not, of works, supplies, and services by LOETB. It ranges from the purchase of routine supplies to major contracts. 2. Objective of Procurement Procedure To ensure: a. Availability of authorised requirements when needed. b. Best value for money is achieved. c. Maximum advantage is taken of LOETB s purchasing power. d. Total transparency and accountability. e. Equality of access to qualified suppliers by providing a sound basis for the selection of suppliers. f. Compliance with government and EU legislation, regulations and directives. g. Adherence to the highest ethical standards. h. Co-operation between offices/schools/centres to maximize their purchasing power. 3. Tax Requirements a. Suppliers receiving in excess of 10,000 in a year from LOETB shall be required to submit a Tax Clearance Certificate in accordance with CL 43/2006 from the Department of Finance. b. Contractors engaged in construction contracts are required to submit a Tax Clearance Certificate for any amounts being paid and are required to be registered with Revenue. Contracts are to be inputted on c. Suppliers/individuals providing services of a professional nature are advised that professional services withholding tax will be deducted from payments (exclusive of VAT). d. Documentation requesting quotations/tenders shall clearly outline tax requirements. e. VAT law provides for equal treatment in the supply of goods and services, therefore no competitive advantage or disadvantage should arise from the correct application of VAT rules. 3

4 4. Key Principles a. Office/Principal/Centre Manager approval needed for all purchases. b. All documents submitted to Head Office must have the original signature of the Office/Principal/Centre Manager, as appropriate. c. A representative from LOETB may visit the Office/School/Centre to ensure that guidelin are being adhered to. d. Purchases by a staff member using a Credit Card/Laser Card/Master Card or any type o Credit Card is not an accepted practice. Should an exceptional situation arise, prior approval must be sought in writing or from the Chief Executive/Head of Finance. 5 Purchasing Limits 5. Purchasing Limits 5.1 Goods/Services ( 0-500) Ex. VAT Proceed with Purchase Order 5.2 Goods/Services ( 500-5,000) Ex. VAT Minimum of one (1) quotation or more competitive quotation(s) must be sought if verbal, please document same. Best practice can continue to get value for money but one written quotation/ is acceptable for audit compliance. 5.3 Goods/Services ( 5,000-15,000) Ex. VAT a. At least three competitive quotations/tenders are sought in writing. b. A closing date is provided. c. Quotations/tenders are signed and dated by or on behalf of the supplier and clearly state whether prices are inclusive or exclusive of VAT. d. An evaluation should be completed and approved by the APO/Principal/Centre Manager. The evaluation plus quotations/tenders must be submitted to the Creditors Department with the Invoice. Please also refer to quotation/tendering procedures. 4

5 5.4 Goods/Services ( 15,000-25,000) Ex. VAT a. At least five competitive quotations/tenders are sought in writing having supplied a written specification to potential suppliers. b. A closing date is provided (normally quotations/tenders to be submitted within a minimum of 2 weeks or 10 working days). c. Quotations/tenders are signed and dated by or on behalf of the supplier and clearly state whether prices are inclusive or exclusive of VAT. d. Having evaluated the quotations/tenders, an approval form for goods/services > 10,000 should be completed and signed by the APO/Principal/Centre Manager/IT Manager and submitted to the Chief Executive for approval. Please also refer to quotation/tendering procedures 5.5 Goods/Services ( 25,000) Ex. VAT or greater but less than the EU threshold - See Appendix 1 Prior approval from the Chief Executive should be sought. ALL SUCH ORDERS/CONTRACTS MUST BE COMPLETED IN CONJUNCTION WITH THE PROCUREMENT SECTION. a. All orders/contracts of 25,000 or over must be advertised on the etenders.gov.ie website. If newspaper or other media advertising is considered necessary, an abbreviated notice shall be published referring to full details on the etenders website. b. Tenders of 25,000 or greater but less than the EU threshold are approved by the Chief Executive. See also Appendix 4. Please also refer to quotation/tendering procedures 5.6 Goods/Services - Purchases equal to or in excess of EU limits Contracts for Goods and Services over 207,000 must be advertised on etenders.gov.ie website and the OJEU Journal. If newspaper or other media advertising is considered necessary, an abbreviated notice shall be published referring to full details on the etenders website. Please also refer to quotation/tendering procedures. 5

6 5.7 Works - Purchases equal to or in excess of EU limits ( 5, ) When a contract for works is greater than 50k but less than 5,186,000 it must be advertised on the etenders.gov.ie website. When a contract for Works exceeds 5,186,000, it must be advertised on the etenders.gov.ie website and the OJEU Journal. If newspaper or other media advertising is considered necessary, an abbreviated notice shall be published referring to full details on the etenders website. See also Construction procurement.gov.ie/p4 Guidance notes for Works. Please also refer to quotation/tendering procedures. 6 Exceptional Circumstances In exceptional circumstances, as authorised in writing by the Chief Executive/Head of Finance, derogation from normal procedures (other than EU procurement directives) may apply, including as follows: Urgency: In cases of extreme urgency an immediate purchase may be made in order to avoid significant risk to persons/property or significant loss to LOETB. Proprietary Materials: The supplies or services being purchased are of a proprietary nature or spare parts for existing plant and equipment and are only available from a single source. Additional Deliveries: For additional deliveries where a previous contract was awarded under a competitive tender process and a change of supplier would result in incompatibility or disproportionate technical difficulties in operation or maintenance. Statutory - Type Purchase: There are items of repeated expenditure that arise for essential services where only one possible service provider exists e.g. local authority - motor tax, water; membership subscriptions to professional associations, purchase cards. Timeframe A period of less than 2 weeks in a tendering process (10 working days) may be specified in exceptional circumstances. 6

7 7 Quotation Procedures 7.1 As a basic principle, a competitive process should always be used. Orders should not be split to avoid limits for tenders/quotations. 7.2 Specification of goods/services required and other relevant information should be issued in standard form to all potential suppliers. Documentation/specifications should be expressed clearly and not give rise to ambiguity. 7.3 Documentation/Specifications should be issued to firms/suppliers capable of supplying the goods/services and of good professional standing. 7.4 Suppliers should be required to have a current Tax Clearance Certificate. Such requirement should be included in invitation documentation and advertisements. 7.5 A date for receipt of quotes should be specified. Quotes received after the approved time should not be considered. 7.6 Quotes should be evaluated and assessed by the Principal/Centre Manager/Delegated Person. External assistance should only be sought with the approval of the Chief Executive. 7.7 Prices should be evaluated exclusive of VAT. The award may be on the basis of: (i) The lowest priced quote or (ii) The most economically advantageous quote* (specifying in addition to price various other criteria including running costs, servicing costs, level of after sale service, technical assistances, environmental characteristics, time frame etc.) 7.8 The evaluation and, if in excess of 10,000, the approval form together with quotes should be forwarded with Invoice to LOETB staff for payment. 7.9 Unsuccessful suppliers shall be notified accordingly without delay. When requested, all unsuccessful suppliers should be informed as to why they were unsuccessful Successful suppliers shall where appropriate be required to submit insurance policies with an indemnity provided to LOETB Suppliers should be required to comply with relevant statutory provisions before being awarded a contract. Authorised officers should ensure that suppliers have regard to provisions relating to health and safety issues Open ended contracts should not be entered into. The contract should have a commencement date and a termination date A mechanism must exist to terminate contracts in the event of non-compliance / performance Proper records and files should be maintained in respect of all procurement activities In line with procurement directives, candidates may be required to complete a Bona Fide declaration stating that they have not been convicted of or been involved in organised crime/fraud/corruption or money laundering All records should be held for 7 years after the goods/services have been received or the contract has been completed. In the case of ESF funded projects, original records should be retained until after the EU Structural rounds process is concluded. Currently this period is years. 7

8 8 Tendering Procedures 8.1 As a basic principle, competitive tendering should always be used. Orders should not be split to avoid limits for tenders/quotations. 8.2 Specification of goods/services required and other relevant information should be issued in standard form to all potential suppliers. Documentation/specifications should be expressed clearly and not give rise to ambiguity. 8.3 Tenders should be issued to firms/suppliers capable of supplying the goods/services and of good professional standing. Responses to requests for information from suppliers, tender documents and other supporting documentation (if not made available electronically) must be issued without delay and in any event within a maximum of 6 days of the request. Additional information, requested in good time must be issued at least 6 days before the latest date for receipt of tenders. 8.4 A date for receipt of tenders must be prescribed and a minimum of 2 weeks (i.e. 10 working days) reference time should be allowed. 8.5 Suppliers should be required to have a current Tax Clearance Certificate. Such requirement should be included in tender documentation and advertisements 8.6 Tender documentation and advertisements shall specify that tenders are to be sent in sealed envelopes marked "Tenders for ". The sealed envelope should be date stamped on receipt. 8.7 Where an omission has occurred in the tender documentation it should be amended and all participants expressing an interest in the tendering process informed. Where the position significantly alters the nature of the tender process the tender may have to be re-advertised. 8.8 Tenders should not be opened and/or assessed in advance of the closing date. 8.9 Arrangements should be made to check post boxes at the closing time for receipt of tenders Tenders received after the approved time for receipt of tender should not be considered. Late tenderers should be advised accordingly at the earliest possible date Extension of time for receipt of tenders shall only be authorized with the prior written approval of the Chief Executive. Approval will only be granted in exceptional circumstances Tenders for works contracts/consultants should be opened as soon as possible after the closing date by three people including the Chief Executive or his representative, Principal/Authorised Officer and a Board Member. All tenders received by the closing date should be opened together Tenders for goods/services contracts should be opened as soon as possible after the closing date by two people including an Authorised Officer and another Staff Member. All tenders received by the closing date should be opened together A register of tenders received shall be maintained in which particulars of tenders received shall be entered after they are: a. Date stamped b. Numbered e.g. if five tenders are received, the first should be numbered 1/5, the second should be numbered 2/5, etc. c. Initialled The register should be signed by those responsible for opening the tenders and dated Evaluation Prices should be evaluated exclusive of VAT. The award may be on the basis of: (i) The lowest price tender or (ii) The most economically advantageous tender (specifying in addition to price various other criteria including running costs, service costs, level of after sale 8

9 service, technical assistances, environmental characteristics, time frame etc.) When a contract is being awarded on the most economically advantageous basis, the invitation to tender must state all the criteria being applied in the award process, giving the relevant weightings for each criteria. The evaluation process must be demonstrably objective and transparent and based solely on the specified criteria. An evaluation/scoring sheet should be prepared to support the evaluation process. External assistance should only be sought with the approval of the Chief Executive. In the case of building contracts, mechanical and electrical service contracts, the tenders are referred to the Architect or Consulting Engineer for examination and recommendation. All building Consultant contracts are to be awarded in accordance with Department of Education & Skills School Building & Design Guidance Regulations. Specific conditions set out in tenders should be carefully examined to ensure they are not inconsistent or inappropriate The evaluation process together with tenders should be retained for audit Unsuccessful tenderers shall be notified accordingly without delay. When requested all unsuccessful tenderers should be informed as to why they were unsuccessful Provisions prescribed by the Department of Education and Skills and European Union regulations/directives must be complied with Disaggregating or contract splitting to avoid these procedures or the E.U. tendering process is strictly prohibited. It should not be considered in any event The need for a bond should be considered and pursued where appropriate Successful tenderers shall where appropriate be required to submit insurance policies with an indemnity provided to LOETB Suppliers should be required to comply with relevant statutory provisions before awarding a contract. Authorised officers should ensure that suppliers have regard to provisions relating to minimum pay, legally binding industrial or sectoral arrangements and relevant health and safety issues. See Appendix Open ended contracts should not be entered into. The contract should have a commencement date and a termination date A mechanism must exist in contracts to terminate in the event of noncompliance/performance All records should be held for 7 years after the goods/services have been received or the contract has been completed. In the case of ESF funded projects, original records should be retained until after the EU Structural rounds process is concluded. Currently this period is years. 9

10 9 Conduct 9.1 Ethical Behaviour Officials involved in the procurement process shall maintain the high reputation for ethical behaviour expected of them as officers/employees of LOETB. In this regard official orders shall not be placed for goods/services or other items for which offers of gifts have been received by way of inducement. Without prejudice to this, unsolicited gifts of low or nominal intrinsic value i.e. diary, box of chocolates, bottle of spirits etc., may be offered and accepted. These gifts are raffled or shared between staff. Visits at supplier's expense to inspect goods for purchase must not be undertaken without the prior written approval of the Chief Executive or delegated officer. 9.2 Conflict of Interest Authorised officers should be aware of potential conflicts of interest in the procurement process and should take appropriate action to avoid them. Persons operating within the purchasing/supply chain must refrain from using either their personal position or the organisations resources for personal gain. Disclosure of interest forms are completed annually by administrative staff on a salary of Grade VII or higher and by Principals/Deputy Principals and Heads of Centres. 9.3 Confidentiality All supplier and tender information relating to the tender process must be treated in strictest confidence, at least up to the time of contract award. Disclosure of such information, and in particular to another interested party, is strictly prohibited. Adherence to this principle is fundamental to the participation of all parties to the procurement process. After the award of contract, information may be provided in accordance with freedom of information (FOI) legislation or the provisions of EU procurement directives. All confidential information must be properly safeguarded. 9.4 Anti-Competitive Behaviour Suppliers and purchasers must not engage in any practice, which distorts or is likely to distort fair and open competition. 9.5 Breaches of Ethics 10

11 Any member of staff discovering or suspecting anti-competitive behaviour, overpayment, or unfounded payment should notify his/her head of department/line manager, who should forward a report with the relevant details to the Chief Executive. Where appropriate the Chief Executive should be notified directly. Infringements or breach of this policy will be treated seriously and will be subject to disciplinary action up to and including dismissal. 10 Misappropriation etc. Each member of staff discovering or suspecting any of the following: a. Any incident of actual or suspected fraud, theft or other misappropriation b. Overpayment or Underpayment c. Irregular or unfunded payment shall immediately inform his/her head of department/line manager who shall immediately notify the Chief Executive accordingly. If necessary the Chief Executive should be notified directly. A full report on the occurrence shall be prepared and submitted to the Chief Executive showing: a. Amount involved b. Reasons for occurrence c. Persons involved d. Action taken in this case e. Action taken to prevent re-occurrence f. Where appropriate the Board shall be notified 11

12 LOETB Training Function Procedures - Procurement and Approval Levels 11 Procurement and Approval Levels General Practices & Procedures SOLAS Financial Authority Levels and Procurement document as set out in Table 1 (Page 13) Normal Progress Payments/Cycle Expenditure to be approved in line with thresholds detailed in Table 1 (Page 13) Contracted Training Tenders refer to National Contracted Training Procedures Manual Sole/Tied Supplier procedure refer to Contracted Training Procedures Approved by Training Manager Existing ETB Procurement Practices to continue for quotations/tenders for SAP payments as set out in Table 2 (Page 14/15) LOETB Capital and Procurement Section to be consulted in advance of commencement of e-tenders competition Table 2 (page 15) National Procurement Framework/Approved Suppliers Lists to be utilised where available Valid ETax Clearance details must be verified on SAP prior to processing of purchase orders. This will ensure compliance with overall ETB aggregation of Tax Clearance requirements 12

13 Table 1: LOETB Financial Authority Levels Operational Contracts Contracted Training/CTC/LTI/NLN/Apprenticeship Contract Fee Value Approval Level Over 120,000 CE / Director of FET Up to 120,000 Training Manager The thresholds quoted in this table relate to each individual contract and aggregation does not apply to these threshold levels Progress Payments/Cycle Expenditure Up to 15,000 Training Officer Up to 120,000 Training Manager CE / Director of FET Over 120,000 Above relates to Invoices & Claims where contracts are already in place. Up to 15,000 Up to 120,000 Over to 120,000 Approval of Accounts for Payments Training Officer Training Manager CE / Director of FET Authority to write off Bad Debts/Irrecoverable Overpayments/Capital Write - Offs Any one Item/Debt CE / Director of OSD / APO Finance 13

14 Table 2: Procedures to be followed for Quotations/Tenders for SAP Payments Quotation Thresholds Exclusive of VAT Threshold Type of Contract 0-3, Supplies or Services 3, < 9, Supplies or Services Procedure Normally, no quotations are required. However, if when placing an order, it is not known whether the 3,000 limit will be exceeded, a quotation is sought to ensure that the price is not greater than 3,000. a. At least three competitive quotations/tenders are sought in writing. b. A closing date is provided. c. Quotations/tenders are signed and dated by or on behalf of the supplier and clearly state whether prices are inclusive or exclusive of VAT. d. An evaluation should be completed and approved by the APO/Principal/Centre Manager. The evaluation plus quotations/tenders must be submitted to the Creditors Department with the Invoice. 10,000 < 24, ,000 ex Vat or greater but less than the EU threshold See Table 2 (Page 15) Supplies or Services Supplies or Services a. At least five competitive quotations/tenders are sought in writing having supplied a written specification to potential suppliers. b. A closing date is provided normally a minimum of 2 weeks (i.e. 10 working days). c. Quotations/tenders are signed and dated by or on behalf of the supplier and clearly state whether prices are inclusive or exclusive of VAT. d. Having evaluated the quotations/tenders, an approval form for goods/services > 10,000 should be completed and signed by the APO/Principal/Centre Manager/IT Manager and submitted to the Chief Executive for approval. a. All orders/contracts of 25,000 or over must be advertised on the etenders.gov.ie website. If newspaper or other media advertising is considered necessary, an abbreviated notice shall be published referring to full details on the e-tenders website. Tenders of 25,000 or greater but less than the EU threshold are approved by the Chief Executive. 14

15 Table 2: Procedures to be followed for Quotations/Tenders for SAP Payments Tenders Below EU Thresholds Exclusive of VAT 25, ,000 Supplies or Services e-tenders Open Procedure (single stage no prequalification) 125, ,000 Supplies or Services e-tenders Choice of Procedure (e.g. open, restricted, competitive dialogue) 50,000-2,500,000 Works e-tenders Open procedure 2,500,000-5,225,000 Works e-tenders Large/ complex projects: Restricted Procedure. Smaller/ straight forward projects: Open Procedure ICT PROCUREMENT < 10,000 ICT PROCUREMENT > 10,000 ICT ICT Tenders above EU Thresholds Exclusive of VAT DES PMO / OGCIO liaison required e-tenders DES PMO / OGCIO liaison required Supplies & Services Works Procedure 209,000 5,225,000 OJEU 15

16 Appendix 1 Thresholds (exclusive of VAT) above which advertising of contracts in the Official Journal of the EU is obligatory, applicable from 1 January 2014 The main advertising thresholds with effect from 1 January 2014 are as follows: Works Contract Notice 5,186,000 Threshold applies to Government Departments and Offices, Local and Regional Authorities and public bodies Goods and Services Contract Notice 134,000 Threshold applies to Government Departments and Offices Contract Notice 207,000 Threshold applies to Local and Regional Authorities and public bodies outside the Utilities sector Utilities Works Contracts/Prior 5,186,000 For entities in Utilities sector covered by GPA Indicative Notices Supplies and Services 414,000 For entities in Utilities sector covered by GPA 16

17 Appendix 2 Advertising Requirements The following requirements apply: a. When the aggregated estimated value (total fees) of all consultancy appointments for a project is greater than 50,000 incl. VAT. (In general, this category of project is where the grant allocation is between 550,000 and 1,000,000) the tender opportunity must be advertised on b. When the aggregated estimated value (total fees) of all consultancy appointments for a project is below 50,000 (incl. VAT) the consultancy appointments do not have to be advertised on and the school authority can seek 5 quotations. c. If there is the possibility of cross border interest you must place an advertisement in even if the aggregated estimated value (total fees) is below 50,000 (incl. VAT). As per Department of Education Guidelines - Guidance on Procuring Consultants for Small Works, projects with capital value of 1,000,000 or less, 2 nd Edition March

18 Appendix 3 REGISTER OF TENDERS Date Stamped No of Tenders 1 of Name of Company Initial 1 Initial 2 Initial 3 2 of 3 of 4 of 5 of Tenders opened together on by:- Signed: Signed: Signed: Date: 18

19 APPROVAL FOR PURCHASE OF GOODS WITH A VALUE OF 10,000 OR GREATER BUT LESS THAN EU THRESHOLD Appendix 4 School/Centre: Item/s to be purchased: Quotations/Tenders Received NAME AMT (EXCL OF VAT) AMT (INCL OF VAT) (Copies of each Quotation/Tender to be attached) Successful Quotation/Tender: Reasons why: Signed: Date: I approve the purchase as outlined above. Signed: Chief Executive Date: 19

20 DECLARATION OF BONA FIDE Appendix 5 DECLARATION (please also see Article 45 of Directive 2004/18/EC). This Declaration, Duly Completed, Must Be Submitted By All Tenderers Name of Tenderer: Address: Country: Please tick Yes or No as appropriate to the following statements relating to the current status of your organisation. (1) The Tenderer is bankrupt or is being wound up or its affairs are being administered by the court or has entered into an arrangement with creditors or has suspended business activities or is in any analogous situation arising from a similar procedure under national laws and regulations. Yes [ ] No [ ] (2) The Tenderer is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or for an arrangement with creditors or of any other similar proceedings under national laws and regulations. Yes [ ] No [ ] (3) The Tenderer, a Director or Partner, has been convicted of an offence concerning his professional conduct by a judgement which has the force of res judicata or been guilty of grave professional misconduct in the course of their business. Yes [ ] No [ ] (4) The Tenderer has not fulfilled its obligations relating to the payment of taxes or social security contributions in Ireland or any other State in which the tenderer is located. Yes [ ] No [ ] (5) The Tenderer, a Director or Partner has been found guilty of fraud. Yes [ ] No [ ] 20

21 (6) The Tenderer, a Director or Partner has been found guilty of money laundering. Yes [ ] No [ ] (7) The Tenderer, a Director or Partner has been found guilty of corruption. Yes [ ] No [ ] (8) The Tenderer, a Director or Partner has been convicted of being a member of a criminal organisation. Yes [ ] No [ ] (9) The Tenderer has been guilty of serious misrepresentation in providing information to a public buying agency. Yes [ ] No [ ] (10) The Tenderer has contrived to misrepresent its Health and Safety information, Quality Assurance information, or any other information relevant to this application. Yes [ ] No [ ] THIS FORM MUST BE COMPLETED AND SIGNED BY A DULY AUTHORISED OFFICER OF THE TENDERER S ORGANISATION I certify that the information provided above is accurate and complete to the best of my knowledge and belief. I understand that the provision of inaccurate or misleading information in this declaration may lead to my organisation being excluded from participation in this and future tenders. SIGNATURE: DATE: NAME: TEL: POSITION: FAX: 21

22 STATUTORY OBLIGATIONS DECLARATION Appendix 6 To: Laois and Offaly ETB Tender for: We, confirm that: We are fully compliant with the minimum terms and conditions of the Employment Regulation Order of the Irish Labour Court, with the Working Time Directive and with all other relevant employment legislation, as well as all relevant Health and Safety Regulations. AND a) We have procedures in place to ensure that our subcontractors, if any are used for this contract, apply the same standards. I certify that the information provided above is accurate and complete to the best of my knowledge and belief. I understand that the provision of inaccurate or misleading information in this declaration may lead to my organisation being excluded from participation in future Tenders. Signed: Print Name: Company Name: Address: Phone No: Date: 22