Procurement Policy. Approved on: 17 November 2012 Senior Management Team

Transcription

1 Procurement Policy Approved on: 17 November 2012 Senior Management Team BIELD HOUSING & CARE. Registered Office: 79 Hopetoun Street. Edinburgh. EH7 4QF Tel: Fax: Scottish Charity SC006878

2 BIELD PROCUREMENT POLICY Introduction The Procurement Policy sets out the fundamental rules, behaviours and standards applicable to procurement activity within Bield. It seeks to provide straightforward and comprehensive guidance about the procurement process for staff to follow. The Policy should be read in conjunction with the linked procedures as well as any relevant departmental procedures; and Bield s Financial Regulations and Authorisation Levels & Approval Procedures. Scope Procurement can be defined as the acquisition, whether under formal contract or otherwise, of goods, services and works from third parties. Bield s current procurement spend is around 15m per annum. The scope of procurement ranges from the purchase of routine supplies and services; to formal tendering and placing of contracts; to more complex works contracts for building and refurbishments. This Policy outlines the principles that should be applied to all procurement. For the purposes of this Policy procurement does not include contracts for the acquisition of land or buildings or for any interest in land these are covered in Bield s Acquisition Policy. Legal Framework For the purposes of procurement, Bield is considered to be a body governed by public law and as such is subject to the EC Procurement Directives, which set out detailed procedural rules for procuring goods, services and works. These Directives are given effect in Scots law by The Public Contracts (Scotland) Regulations Guiding Principles The overarching aim of procurement activity is to achieve value for money for Bield s customers and service users. Value for money is defined as the optimum combination of whole-life cost and quality (fitness for purpose) to meet the user s requirement. All procurement activity will adhere to the following principles: transparency; equal treatment and non-discrimination; and proportionality Accountability Ultimate accountability for any procurement decisions rests with the Board. This is delegated as detailed within the organisation s Financial Regulations and Authorisation Levels & Approval Procedures. Bield Procurement Policy - 2 -

3 The Role of Procurement Operational from January 2011, the Procurement function sits within the department of Finance and ICT and reports directly into the Director of Finance and ICT. The function is responsible for delivery of the Procurement Strategy and associated activity. This includes: Development of procurement strategy, policy and related guidance Identification and coordination of procurement activity for key spend areas Provision of ad-hoc assistance and advice in relation to non-key spend Coordination of national initiatives Raising awareness and profile of procurement within the organisation Supplier development General procurement advice and communications Staff Responsibilities In all dealings with suppliers and potential suppliers, Bield staff must preserve the highest standards of honesty, integrity, impartiality and objectivity. In particular all staff are required to: ensure that all relevant policies, regulatory and statutory obligations are complied with; make all procurement decisions in the best interests of the organisation, not the individual; seek value for money in all procurement activity; be fair, efficient, firm and courteous; maintain the highest possible standard of integrity in all business relationships; declare any personal interest which may affect or be seen by others to affect impartiality respect the confidentiality of information received in the course of duty and ensure that information given in the course of duty is honest and clear; and respond promptly, courteously and efficiently to suggestions and enquiries Business Case All procurement of a day-to-day or recurring nature will be included within the annually approved revenue budget. The justification for such spend should be self-evident and therefore does not require the development of a business case. Where expenditure is unplanned, one-off in nature or relates to a capital project (whether for development or otherwise) it will require preparation of a business case or strategic brief. This will typically be required when the estimated contract value is in excess of 30,000. In the case of Development projects, a more detailed Project Brief will also be prepared to sit alongside the Strategic Brief. In all cases, a Business Case or Strategic Brief will require relevant approval from Senior Management Team before it can progress to the procurement stage. Bield Procurement Policy - 3 -

4 Sustainable Procurement Bield recognises the impact of its procurement activities in furthering sustainable development and in reducing environmental impacts. Sustainability, environmental and social issues will be incorporated into all procurement processes through a balanced consideration of social, environmental and economic impacts. The Procurement Manager will act as the Sustainable Procurement Champion for Bield and will be responsible for promoting and coordinating sustainable procurement activities and initiatives within the organisation. Equality & Diversity All procurement activity will be fair, transparent and proportionate and will not allow for discrimination of any type, in adherence with the organisation s Equal Opportunities Policy. Health and Safety The degree to which health and safety requirements are specified will vary depending on the goods, services or works being purchased. The potential health and safety risks arising from a contract or purchase should be assessed on a case by case basis, and any relevant health and safety legislation, policy and good practice will be adhered to. Training and Communication Bield aims to improve procurement skills among its staff and to raise the profile of procurement and its role within Bield. Bield will ensure that the Procurement Strategy, Policy and Procedures and effectively communicated to, and understood by, all relevant stakeholders. Bield will ensure that appropriate staff are equipped in terms of skill s and resources to make procurement decisions that support and promote the Procurement Strategy and Procurement Policy. Filing and Document Retention Documents should be retained retention policy and schedules. Review The Procurement Policy will be reviewed in a 5 year cycle, however initially will be reviewed after 12 months. Procurement Process Before undertaking any procurement process, staff must first check if there is an existing contract that can be used. If there is then they must use it and the rules below will not apply, as these contracts will already have been competitively awarded. Bield Procurement Policy - 4 -

5 Where there is no existing contract, all procurement activity must follow the processes detailed below and the linked Procurement Procedures where these apply. The basic requirements regarding advertising, competition, tender opening and award authorisation are as follows: Value Competition Tender Opening Award Authorisation Verbal quotation from one supplier on the basis of a verbal invitation to quote followed up by a confirmation N/A Procedures 2,000-10,000 10,00-30,000 30,000 EU EU Threshold and above* Written quotation from one supplier on the basis of a written invitation to quote Written quotation from three suppliers based on a written invitation to quote, using Quick Quote system Full tender process including advertising on the Public Contracts Scotland website. Full EU tender process including advertising in the Official Journal of the European Union (OJEU). Current EU Procurement Thresholds issued invitation to quote issued invitation to quote using Quick Quote system issued Invitation to Tender, witnessed by Lead Director or Assistant Director issued Invitation to Tender, witnessed by Lead Director or Assistant Director plus one other Director or Assistant Director or the Chief Executive Procedures Procedures Procedures. Where tender price exceeds the budget or annual budget authorisation to award the contract is required from the Lead Director. Procedures. Where tender price exceeds the budget or annual budget authorisation to award the contract is required from the Senior Management Team. * For the purposes of Works contracts the approval limits for goods and services will apply. Bield Procurement Policy - 5 -

6 Procurement Decision Tree Before commencing any purchase or procurement process, it is important that staff consider the following questions. Depending on the outcome, links are provided to the relevant procedure note. Any Bield employee can obtain quotations, however the Authorisation Levels & Approval procedures must be adhered to before any commitment to spend is made. Where there is a genuine and justified reason for bypassing the procedures above this should be referred to Procurement for advice, and final authorisation sought from the Senior Management Team. Please note that this does not include requirements above EU Threshold, as compliance with these is a regulatory requirement. Any authorised requests to bypass Bield s Procurement Procedures will be reported to the Board. Bield Procurement Policy - 6 -