Title: Author: Owner: Purchasing Standard Snr Manager Global Standards and Development Snr Manager Global Standards and Development Printed copies are uncontrolled. Number: 13-29.401.GWS GLB Effective Date: 01 September 2015 Revision: 4.0 PURPOSE This document provides guidance around the requirements relating to the source, selection and purchase of Materials, Goods and or Services either for CBRE or on behalf of a Customer or Client of CBRE and refers to any supplementary tools which will facilitate or enable compliance with the intent of this standard SCOPE North America Latin America Europe & Africa Asia Middle East Compliance expected as written GWS X X X X X X Can be tailored to local needs Specific Applicability / Variance / Exceptions RESPONSIBILITY 3.1 The GWS Global Sourcing Director ensures that this Standard is maintained and deployed. GUIDELINES 4.1 Nine Steps to Successful Sourcing Page 1 of 7
STEP One Identify the Requirement(s) PURPOSE OF THE STEP Opportunity to question the business need (e.g. is it part of our contractual obligations with our client) Client input. Where global, regional or local process requires engage GWS Sourcing and Supply Chain TYPICAL DELIVERABLES/OUTCOME Qualified & Quantified Requirement(s) Client authorisation GWS Sourcing and Supply Chain support and guidance or approval to proceed without further support and or guidance. Two Identify the most cost effective and Reduced transactional costs & risk Choose the Right Sourcing Method Three Identify Suitable Supplier(s) Four Request for Price, Quote of Invitation to Tender Five Evaluate Response(s) Six Negotiate & Clarify Response(s) Seven Award Contract on agreed CBRE s Terms and Conditions efficient sourcing method Opportunity to ensure that the supplier(s) has/have: the requisite technical ability and capacity. Use of the local/regionally approved sourcing methods Opportunity to mitigate of risk Opportunity to ensure the supplier(s) response meets the requirements (e.g. technical specification, timescale for delivery and or completion, client specific requirements) Opportunity to identify, acknowledge and address any gaps between the requirement(s) and the response(s). Contract awarded on CBRE terms and conditions Overall best value & practice Maximisation of preferred suppliers Minimisation of new supplier requests Fair and equitable sourcing Best overall value Fair and equitable sourcing Best overall value Formal record Subject to contract establish an agreement between CBRE and the supplier(s) as to what the requirement(s) are and what the best and final price will be and any performance obligations. Signed Contract Purchase Order Eight Manage the Contract Nine Measure Supplier(s) Performance Opportunity to ensure the signed contract reflects reality and that the supplier(s) are working to the signed contract and that any changes to the signed contract are acknowledged and formally documented. Opportunity to ensure that the supplier(s) continue to meet the expectations/obligations as set out in the signed contract. Current plans & schedules, proactive management and measurement against agreed service levels, compliance to planned preventative maintenance/replacement schedule(s) Continual improvement of service delivery Record of measurements Page 2 of 7
4.2 GWS Supplier Classification GWS adopts a multi-layer approach: Preferred, Qualified & Approved. GWS pro-actively seeks to work with suppliers who represent expertise at a local, regional or global level and who consistently offer the greatest overall value to CBRE and its customers through the application of the most relevant delivery, resources, technologies, best business practice and innovation. 4.2.1. Preferred Suppliers are promoted via an on line "Global Preferred Supplier List" divided by (i) Category/Sub-Category/Commodity, (ii) GWS Customer Market Unit, (iii) Region and (iv) Country. These Preferred suppliers will typically have a Master Services Agreement in force plus contemporary and competitive rates negotiated (where applicable). Preferred suppliers will be actively promoted by the Strategic Sourcing & Supply Chain team for use in Single Source, Tender and New Business Development scenarios, additionally Preferred suppliers will also benefit from a program of Strategic Supplier Development Initiatives in direct correlation to GWS's broader Category and Commodity strategies and 'Go To Market' product offerings. 4.2.2. Qualified Suppliers are often promoted where there is no available Preferred Supplier as they either have a proven track record in being able to meet specifications or in the process of achieving Preferred Supplier status. 4.2.3. Approved Suppliers are those who meet CBRE minimum criteria in order that they can be added to the appropriate vendor master file. Qualified Supplier 4.3. Sourcing Criteria 4.3.1. Quotation/Bid process 4.3.1.1. An in-force and signed Non Disclosure Agreement (NDA) must be on file where CBRE s or its clients intellectual property will be shared between CBRE and a supplier or third party. 4.3.1.2. CBRE employees shall only issue requests for information, requests for quotations or invitations to tender to suppliers who are active on the relevant vendor master file. By exception and with the written approval of GWS Sourcing and Supply Chain, prospective or potentially new suppliers to CBRE may be approached. 4.3.1.2.1. Engagement of Suppliers who are active on the Do Not Use/ Do Not Pay list is not permitted. 4.3.1.3. Single or Sole Sourcing will only be permitted in limited circumstances where the required supporting documentation and a completed GWS Global Single Source Justification Form 13-29.600.GWS.GLB and supporting evidence is attached to the purchase requisition, those limited circumstances are as follows: 4.3.1.3.1. Unique capability, proprietary products or other intellectual property rights (must provide detail of such on the Single Source Justification Form). 4.3.1.3.2. Insufficient time to obtain three written quotes (must provide detail of such on the Single Source Justification Form). 4.3.1.3.3. Security reasons restricts the number of suppliers selected to quote (must provide detail of such on the Single Source Justification Form). 4.3.1.3.4. Client or customer independently directs in writing to CBRE (email will suffice) the use of a specific supplier or suppliers (email must be attached to the Single Source Justification Form and outline the reasons for the direction). 4.3.1.3.5. Materials required must be compatible with installed or existing equipment (must provide detail of such on the Single Source Justification Form). Page 3 of 7
4.3.1.3.6. Supplementary or additional sourcing activity associated with previously competitively (within last 6 mths) sourced requirement (must provide detail of such on the Single Source Justification Form). 4.3.1.3.7. Use of a GWS Sourcing and Supply Chain defined Qualified or Preferred Supplier with a signed contract and schedule of rates is in force (must provide detail of such on the Single Source Justification Form). 4.3.1.3.8. For purchases of less than $1k (applies to GWS Latin America Only) 4.3.1.4. All suppliers must be treated equitably during the sourcing process and be provided with the same opportunities with respect to access to available information, schedule/time frame, confidentiality, evaluation and assessment of quotes/bids/tenders. Award of business should be made to the supplier offering the best overall value, where this is not the case a written final recommendation outlining the reasoning behind the sourcing decision should be made available upon request. 4.4. Purchase Placement Process 4.4.1. Purchase Orders are the preferred method and CBRE employees shall use the established methods (relevant to the country of origin) tools and programs that facilitate the execution of a purchase order. 4.4.2. Emergency Purchase Orders are only permitted in accordance with the terms of the appropriate process - (refer to the Emergency Purchase Order Process 13-29.205.GWS.GLB and 1329.202.GWS.Asia Emergency Request to Buy Goods and or Services Covered Under a PreAgreed Customer Contract, India) 4.4.3. Purchases should not be broken down into multiple smaller Purchase Orders to circumvent the approval process - (refer to 14-00.500A.GWS GWS Delegation of Authority Matrix) 4.4.3.1. Purchase Orders are not required in the following limited circumstances: 4.4.3.1.1. When using a CBRE Procurement Card or Travel and Expenses Card (refer to Global Purchasing Card Policy 13-29-101.GWS.GLB) 4.4.3.1.2. When the purchase is under USD $100 and can be executed via check request, petty cash or employee advance - (refer to the Global Payment Policy BOS 14-00.204B.BEHQ & Petty Cash Policy BOS 14-11.011.BEHQ) 4.4.3.1.3. Approved Non-PO Supplier types (refer to Non-PO Supplier Policy BOS 13-29- 102.GWS.GLB) 4.5. Forms of Contract and Agreements 4.5.1. The most appropriate Form of Contract or Agreement should be utilized and this will be determined in collaboration with GWS Sourcing and Supply Chain and GWS Group Counsel as appropriate. 4.5.2. All forms of Contract and Agreements must: 4.5.2.1. Refer to the CBRE GWS Terms and Conditions of Purchase and the CBRE Ethics Policy. 4.5.2.2. Maintain a provision to prevent violation of the Foreign Corrupt Practices Act (FCPA). 4.5.2.3. Maintain a provision whereby CBRE or Independent Third Party acting on behalf of CBRE can conduct Audits. 4.5.2.4. Maintain a provision whereby CBRE can terminate for breach and or convenience. 4.5.2.5. Maintain a provision whereby CBRE can request evidence of any requisite insurance coverage being in force. 4.5.2.6. Where the form of contract or agreement is a purchase order, and the supplier s quotation includes their own terms and conditions the quotation number should not be referenced on the CBRE Purchase Order in an attempt to ensure that the CBRE GWS Terms and Conditions prevail. If the content of the supplier s quotation is required it is recommended that the supplier be requested to remove the reference to their own Page 4 of 7
terms and conditions and resubmit the quotation in order that it can be appended to or referenced in the purchase order. 4.5.2.7. Where the form of contract or agreement is a Purchase Order and the issuing system permits, the appropriate standard commodity code classification should be quoted. 4.5.2.8. Must meet the approval and separation of duties requirements the GWS Delegation of Authority matrix (BOS 14-00-500A.GWS). 4.5.2.9. Lease, Rental, Hire Purchase Agreements involving any financial commitment on behalf of CBRE must be reviewed by Global WorkPlace Sourcing and Supply Chain and the Regional Finance Director (e.g. Buildings, Portable Air Conditioners, Vending Machines, Franking Machines, Multi Functional Devices such as Photocopiers/Scanners etc.) 4.6. Records Retention 4.6.1. Per Corporate Accounting and Financial Procedure Record Retention Policy BOS 20-80 RECORDS: RETENTION PERIODS Description of Record Held by HQ/ Account/ Both Retention Period On Site/ Off site Statutory/ Commercial Hard Copy/ Soft Copy/ Both i. Purchase Orders i. HQ (system) Commercial Both ii. Both, depend 6 Years Total On site on origin ii. Supplier Agreements From end of For 1 years Commercial Hardcopy contract Off site 5 iii. Both, depend Years iii. Specification to Suppliers on origin Commercial Both iv. Request For Price/Quote iv. Both, depend on origin As above As above Commercial Hardcopy v. Single Source Justifications v. HQ As above As above Commercial Hardcopy vi. Supplier Add/Change Records v. HQ As above As above Commercial Either vii. Supplier Performance Reports vii. Account As above As above Commercial Either viii. Supplier s Employers Liability Certificate *should it have been formally requested viii. HQ 6 years from end of contract On site For 1 years Off site 5 Years Commercial Hardcopy Page 5 of 7
4.7. Open Purchase Order Review and Closure 4.7.1. Changes to Open Purchase Orders should follow the GWS Delegation of Authority matrix (BOS 14-00-500A.GWS) 4.7.2. Open Purchase Orders should be closed when: 4.7.2.1. There are not pending transactions on purchase order and one or more of following is fulfilled: 4.7.2.1.1. The purchase order has no remaining value (all invoices have been fully matched and paid). 4.7.2.1.2. Purchase orders for projects/contracts that have been closed. 4.7.2.1.3. Open purchase orders with no activity within the last twelve months without invoices pending to be paid or with a discrepancy. 4.7.2.2. Purchase orders for suppliers that have been placed on the Do Not Use/Do Not Pay list. 4.7.2.3. As requested by purchase order requester or by branch personnel on behalf of the requester. 4.7.3. Where prescribed (e.g. as part of local Sarbannes Oxley controls) open purchase orders should be reviewed quarterly, otherwise no less frequently than annually. REFERENCES/ASSOCIATED DOCUMENTS 14-00-500A.GWS GWS Delegation of Authority Matrix 13-29.207.GWS.GLB Vendor and Third Party Process 13-29-101.GWS.GLB Global Purchasing Card Policy 14-00.204B.BEHQ Global Payment Policy 14-11.011.BEHQ Petty Cash Policy 13-29-102.GWS.GLB Non-PO Supplier Policy 20-80 Retention Policy 13-29.203.GWS.Asia Request to Buy Goods and or Services Covered Under a Pre-Agreed Customer Contract (India) 13-29.202.GWS.Asia Emergency Request to Buy Goods and or Services Covered Under a Pre-Agreed Customer Contract (India) 13-00.201.GWS-SHQ Sourcing Route Process (Spain) 13.02.01 Nine Steps to Successful Sourcing (Northern Europe & South Africa) 13.02.03 Choosing The Right Sourcing Route (Northern Europe & South Africa) 13.02.05 Sourcing Materials and or Services up to the value of $50,000 or R20000 (Northern Europe & South Africa) 13.02.08 Sourcing Materials and or Services in excess of $150,000 or R750000 (Northern Europe & South Africa) 13.02.06 Sourcing Materials and or Services between $50,000 & $150,000 or R20000 and R750000 (Northern Europe & South Africa) 13-29.205.GWS.GLB Emergency Purchase Order Process 13-29.202.GWS.Asia Emergency Request to Buy Goods and or Services Covered Under a Pre-Agreed Customer Contract, India 13-29.600.GWS.GLB GWS Global Single Source Justification Form SUMMARY OF CHANGES 22.1.2013 Revision of Single Source Justification section 4.3.1.3, now includes reference to corresponding form 13-29.600.GWS.GLB GWS Global Single Source Justification Form Page 6 of 7
07.03.13 Changed document to Standard from Guidelines, and number to 13-29.401.GWS.GLB Page 7 of 7