Procurement Services will assist the cardholder in determining if another procurement method is more appropriate. 4. effective procurement processes and for overseeing the procurement of all goods, services and works. The objective of the SOP is to describe the complete process for procuring goods and services in the company, starting from the indenting stage to the receipt of the material/service, till … Parent Policy: Procurement Policy . Inventory carrying costs – interest charges on financial investment in inventory, insurance premiums for covering your inventory, storage costs, deterioration of items in inventory The university is committed to providing business opportunities to suppliers who help the university honor these values. Requisitioning – Process of communicating a need for supplies or services. Is the meeting of business needs for materials, goods, utilities and services in an environmentally-friendly, responsible and ethical way. Probity should be integrated into all procurement planning and should not be a separate consideration. The university is not bound by and does not recognize as binding any promise or obligation made by an unauthorized person. Requesting a “blanket” order. If the goods are damaged, save all materials and the shipper should be contacted to come and inspect the items. Approval Date: June 6, 2016 . Emergencies 2. Request the Manager, Procurement to appoint a probity specialist when required. The Procurement Services  website contains a variety of resources, including a restricted commodities table and reporting form for unauthorized purchases. The first step in the purchasing process is to determine the need. Completion of this form does not guarantee that Procurement Services will approve the request. It is standard process for suppliers to send invoices directly to Accounts Payable. If the request is procurement-related, the employee should notify Procurement Services of the request. An official University corporate credit card available to University Staff members with a Financial Delegation. Splitting a transaction into smaller dollar amounts, delaying, staggering purchases, and using multiple staff members to purchase the same or related items to avoid the competitive bid process are serious policy violations. 5.1 An Annual Procurement Plan shall set out the procuring entity’s procurement plans for the year including the types of goods, services or works that the procuring entity shall require. If the term is unspecified then a nominal term of three years is to be used for calculating the Threshold Value. Financial delegation in accordance with the. 5.2 Annual Procurement Plan is valid for a period of not more than 12 months from the date on which it was submitted to the Community Contact Point for publication on the Notice Board. All requests for procuring supplies, equipment and services shall be submitted to the Procurement Section with a requisition using the Court’s ERP System SAP. Must not accept any inducement, gift or hospitality from a tenderer that might compromise the integrity of the selection process. Procurement internal controls focus on ordering, approving, receiving, and reconciling. University units have a number of responsibilities related to receiving goods and services. use an alternative to an Contracted Supplier or a Panel of Contracted Suppliers, use an alternative to the Threshold Value requirements, use a Sole Supplier (Exceptions may exist when an Individual/Sole Trader is engaged), the Contracted Supplier or Panel of Contracted Suppliers cannot supply the goods and/or services required, demonstrated unique technical requirements with only one Sole Supplier in the market, standardisation of existing goods or services, time-critical events that have been caused by unforeseen circumstances, other exceptional circumstances based on business necessity as assessed by Procurement, third-party payments that the University novates the procurement to another entity under contract. As a result, Procurement Services is responsible for assisting university units in the procurement process and for overseeing all procurement activities. Must hold information received as part of a tenderer’s response in the strictest confidence and not release this information outside of the Tender Evaluation Panel. An open and competitive purchasing environment requires that information related to the bidding process be kept confidential; university employees must conduct themselves ethically, as described above, at all times. Ensure an accurate record is kept of the Tender Evaluation Panel's deliberations for audit purposes. The University of Michigan is also a member of the Council on Government Relations (COGR), an association of large research universities in the United States. These items should be generic in nature to allow for sufficient competition in meeting them; they should neither reference nor be written specific to a particular brand, model or company. The university requires special approval for and/or prohibits the purchase of certain goods and services. A Tender Evaluation Panel is nominated in the Procurement Plan. Finance check carried out but no contracts are in place between the University and Supplier due to no competitive selection process being carried out. Procurement's involvement in the solicitation process ensures responsive, reasonable, and fair offers. Procurement is responsible for coordinating all procurement activity across the University, setting procurement policy and procedures and providing strategic sourcing support advice and tools to the University. It establishes the directions that must be implemented relating to the procurement of goods and services by the University. University employees must promptly disclose in writing all actual or potential conflicts to a designated university official as actual or potential conflicts arise or are identified. Sources for the goods or services should be considered in the following order: An Internal Service Provider is a university unit that provides goods and/or services to another university unit. The minimum competitive requirements for expenditure are set out in a series of Procurement Procedure Notices. The chair of the Tender Panel produces a Procurement Report that is submitted to the relevant authorised delegate for approval as per per Delegations Bands – Value Limit table. Detail a set of requirements for the goods or services. Unsuccessful tenderers are notified in writing that their response was unsuccessful. Article IX, Section 18 of the Michigan Constitution has been interpreted as strictly limiting the donation of university resources to any person or entity. Where agreed pricing from a Contracted Supplier reasonably covers the specific requirements of a procurement process, it is not necessary to seek/obtain Quotations. Commercial compliance criteria will generally be assessed as comply / does not comply / partially comply and then generally taken into consideration during the determination of value for money. requisition A formal request to a buyer for the procurement of goods and/or services. for high-value and/or high-risk procurements). Victorian Government Purchasing Board Website, The COO/CFO (as the Approval Authority) is responsible for monitoring the implementation, outcomes and scheduled review of this procedure, The Manager, Procurement (as the Policy Sponsor) is responsible for maintaining the content of this procedure as delegated by the (title above). Contract Relationship Management activities include: Please note when engaging an Independent Contractor, further advice must be sought prior to engaging. The State of Michigan and federal government, our granting agencies and other stakeholders, expect the university to make purchases in an open and competitive environment to ensure that the university receives fair and reasonable pricing. Segregation of duties refers to the clear and distinct roles of each staff member in a procurement process. Any supplier that doesn't meet these must be disqualified. Specific guidelines for travel and hosting reimbursements are in SPG 507.10-1 Travel and Business Hosting Expense Policy. Where a Contracted Supplier(s) is unable to supply the specified goods or services as and when required an exemption must be sought and approved in accordance with the Procurement of Goods and Services Policy and this procedure prior to engaging the broader market. The traditional competitive procurement process allows all interested parties to submit a bid for a job, complete with all required documentation to compete fairly for jobs. University units must reconcile their Statements of Activity and PCard statements on a timely basis to: As part of this process, the statement should be matched to the Purchase Order and packing slip or other documentation that documents the transaction. This procedure applies to the acquisition of all goods and services by University staff, students or contractors either purchased or leased from vendors, for and on behalf of the University (including University controlled entities). Procurement decisions are to be made in a transparent manner, which allows them to be understood and justified subsequently, and ensure that it is conducted in a transparent, honest, fair and competitive manner. For strategic projects, a business case must also be developed and approved by the relevant authorised delegate. Procurement Services must pre-approve all communications with outside parties regarding potential or anticipated procurement-affiliated relationships. Regental approval must be obtained before proceeding with the transaction. Purchasing: $50,000 and over 3. As part of their stewardship responsibilities, departmental end users are encouraged to compare prices between suppliers even when the purchase amount does not require a formal bidding procedure. It is university practice to have suppliers’ direct shipments to either the location of the departmental end user or to an appropriate receiving point. Risk management of probity in the procurement process requires a higher level of control and mitigation over the procurement process where there is a higher likelihood of exposure to claims about the process. Office of the Comptroller – Accounts Payable Division of Finance and Administration Page 3 … The Procurement Plan will specify if an open or closed/select Request for Tender will be utilised. Mandatory Criteria: these are pass/fail criteria. In cases where you will not select the lowest tender you will need to give full reasons. For those non-competitive transactions, a report is developed for quarterly submission to the Board of Regents. Bid limits, where applicable, are stated on the webpages for specific University Contracts. VFM may take into account the Total Cost of Ownership and a mix of quality, costs and resources, as well as fitness for purpose, timelines and risk. A university purchasing card or PCard is a credit card, granted to authorized users, that the university issues through a banking institution and that the university pays directly. Cardholders or their delegates must expense PCard transactions monthly in Concur and secure the appropriate university unit approval(s). For transactions less than $10,000, units may request Procurement Services to conduct a competitive bid process. All University procurement activities must be based upon these principles throughout all stages of the procurement process: Any perceived, potential or actual conflict of interest in the purchase of goods or services must be acknowledged and managed in accordance with the University's Conflict of Interest Procedure and/or the University's Gifts, Benefits, Hospitality, Food and Beverages Policy. Public Procurement in Ireland operates within a framework of legally binding European Directives and national regulations, policies and guidelines. Ensure proper reporting of payments to suppliers. University employees who are unsure whether a conflict exists are encouraged to contact Procurement Services for help in determining whether disclosure is appropriate. The Purchase Order is the mechanism that places the order with the supplier and provides a method for payment of the invoice; goods and services should not be obtained prior to the supplier receiving the Purchase Order. Units with questions about a particular situation should contact Procurement Services. The purpose of this SOP is to describe the process for approval of an external vendor/manufacturer supplying products into Site. Units must not create or attempt to create sole source situations through delay or other manipulation of the procurement process. Purchases using federal sponsored funds must be made in accordance with Uniform Guidance (2CFR 200): The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. A probity advisor and/or auditor may be appointed to advise on or review the procurement activity. Units should purchase from responsible sources possessing the ability to perform successfully under the terms and conditions of the university with consideration given to such matters as supplier integrity, compliance with public policy, record of past performance, and financial and technical resources. It may also be used in limited circumstances with prior approval from Procurement Services for payments when a supplier will not accept a Purchase Order or PCard. When there is only one possible supplier for the required goods and/or services. In the event that consensus cannot be reached, a majority decision can be accepted and further advice can be sought from the Manager, Procurement if needed. University employees with questions about a particular situation should contact the Tax Department. All transactions found to be in violation of the university’s competitive bid process will be reported to the Regents as unauthorized purchases. University units may not place an order with a supplier until a supplier record is created by the Supplier Maintenance team. The university requires and encourages competition among suppliers in providing goods and services to the university. Effective internal control procedures must be implemented and maintained by the University to ensure all procurement activities of the University are authorised in accordance with the delegated authorities and business requirements within a documented procurement framework. Leveraging its expertise in contract negotiations and supplier management to advantage the university. The specifications, performance standards and/or scope of work should be outlined. It helps ensure that the university receives goods and services of the best value while also satisfying federal, state and university requirements. The university continually strives to improve its practices to ensure the integrity and effectiveness of its procurement processes. Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.. Procurement generally involves making buying decisions under conditions of scarcity. Involves all costs associated with ownership and is based on the whole of lifecycle analysis. Because Purchase Orders offer the university the best legal and financial protections, they are the preferred method for ordering goods and services. Document retention will assist in ensuring conformity to processes, accountability, preserving confidence in Federation University processes, and will improve defensibility of procurement decisions. Additional purchasing requirements needed to comply with the Uniform Guidance can be found on the Procurement Services website. A check request is not appropriate. A formal statement or offer made in response to an invitation to supply specified goods or services, and which contains an estimated cost for the goods or service. Purchasing activities include obligations for proper transaction documentation, fiscal responsibility, ethical behavior, adherence to federal and state government regulations, and compliance with university by-laws and policies. University units must outline and submit to Procurement Services the detailed specifications, performance standards and/or scope of work of the goods or services needed. For information about how to request a Purchase Order, visit the Procurement Services website. The Tender Evaluation Panel members must have adequate technical and operational knowledge and background about the goods and/or services required such that they are capable of providing meaningful input to the Tender process. An offer made in writing in response to a Request for Tender. Per Board of Regents Bylaws 3.07 (2)(d), the Regents have delegated procurement responsibility to the Executive Vice President and Chief Financial Officer, who in turn has delegated this function to Procurement Services. Below is an outline of the appropriate steps to take each time a purchase is made. Those signing external agreements or attempting to bind the university by any other means without authority may be subject to legal and disciplinary action up to and including termination. Ensuring that purchases are made in accordance with all applicable university bylaws, laws, regulations, codes and ordinances. University staff engaging in any procurement activities are required to comply with this procedure and associated local business process. University employees should neither solicit nor accept money, loans, credits, entertainment, favors, services or gifts from current or prospective suppliers. Contracts are to be managed over the life of the agreement. Purchasing: $49,999 and under 2. Conflict of Interest forms must be signed off by the nominated Tender Evaluation Panel as per the approved Procurement Plan. Procurement maintain access to, and provide assistance in the use of the eTendering portal. Each procurement should be assessed according to risk and complexity in determining evaluation criteria and the respective weightings. and procedures for the procurement of goods and services. However, it is the responsibility of the university unit to: Additional details on a university unit’s responsibilities are available on the Procurement Services website. Understand and uphold the university’s obligations under the agreement. The PCard should be used when a supplier does not accept a Purchase Order and when buying goods or services not available through Internal Service Providers or University Contracts. Competition provides the greatest opportunity for the university to procure goods and services at the best value. Such gratuities, even if of seemingly low value, can give rise to a conflict of interest or the appearance of a conflict of interest. Procurement Services provides support to the university community in the selection, acquisition, use and disposal of goods and services by: The procurement of goods and services is the responsibility of the Regents. These are not elimination criteria. For purchases under $10,000, department end users should obtain pricing from the supplier before creating a Purchase Order. The procurement of Goods and Services, which are available on Government-e-Market (GeM) has been made mandatory through GeM as per Rule Purchasing goods and services from an outside vendor. As a guide, the following factors should be considered at a minimum: Evaluation criteria and the respective weightings for use in a Tender Process are required to be approved in a Procurement Plan. Appropriate justification must be defined in the sourcing strategy. 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