Manual of Policies and Procedures

G/5.3 Procurement

Contact Officer

Director, Finance Operations

Approval Date

27/06/2019

Approval Authority

Chief Financial Officer

Date of Next Review

30/06/2020

5.3.1 Purpose
5.3.2 Application
5.3.3 Roles and responsibilities
5.3.4 Procurement principles
5.3.5 Procurement approach
5.3.6 Delegations and purchasing thresholds
5.3.7 Definitions
5.3.8 Delegations
Related Documents
Modification History

5.3.1 Purpose

The purpose of this policy is to provide a framework for the delivery of best value procurement in a consistent and transparent manner, embracing the principles of the Queensland Procurement Policy.

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5.3.2 Application

This policy applies to the acquisition and supply of all goods and services to QUT, including contractors and consultants, regardless of the source of funding.

It applies to all staff members, contractors and consultants working for, or on behalf of, QUT, that may undertake procurement and / or purchasing activities.

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5.3.3 Roles and responsibilities

Position
Responsibility

All staff undertaking procurement activities at QUT

  • ensures all purchasing and procurement activities are conducted in line with QUT’s procurement policy and procedures
  • ensures funds are available and appropriate approval is obtained from the relevant financial delegate before entering into financial commitments

Heads of organisational areas

  • ensures compliance of their organisational area with QUT’s procurement procedures and processes
  • ensures staff undertaking procurement activities have adequate training on relevant financial procedures
  • provides information on significant procurement activities for QUT Strategic Procurement Plan
Procurement Delivery Board
  • provides oversight of QUT’s Strategic Procurement Program
Director, Finance Operations
  • develops, implements and administers QUT’s procurement processes, procedures, systems and reporting
  • monitors compliance with QUT’s procurement policy, procedures and processes
  • prepares and reviews QUT's Strategic Procurement Plan
Associate Director, Strategic Procurement
  • co-ordinates suitable training for staff undertaking procurement activities to assist them in understanding their responsibilities under this policy

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5.3.4 Procurement principles

QUT will ensure its procurement activities (including contract management) contribute to achieving sound commercial outcomes and enable efficient delivery of goods and services in line with the priorities outlined in the QUT Blueprint. Procurement will be conducted in an ethical, transparent and responsible manner, with a focus on value for money, improved sustainability, service and quality.

QUT’s procurement principles align to the Queensland Procurement Policy, while ensuring a focus on QUT’s strategic direction and core business of teaching, learning, and research.

QUT is committed to:

Making sound commercial decisions

QUT will deliver value-for-money solutions, taking into account total, whole-of-life costs, aligned to QUT’s strategic direction, where risks are effectively managed, while ensuring safe and sustainable outcomes. Decisions will not be made on lowest cost alone.

Advancing local, socially responsible, Indigenous, environmental and sustainable outcomes

QUT will conduct business with ethically, environmentally and socially responsible suppliers (including Indigenous and social enterprises), and provide a fair and reasonable opportunity for Queensland suppliers, including local suppliers and small and medium enterprises. QUT will pursue these objectives in its procurement decision making, both holistically and in individual procurement activities. QUT will actively seek to improve sustainable development by engaging businesses and industries that demonstrate sustainability.

Acting with integrity

QUT will conduct procurement activities in a transparent manner, ensuring that the procurement process is appropriately documented and defensible and undertaken in accordance with the probity and accountability standards set out in the Finance Manual.

QUT will manage any conflicts of interests in accordance with the Conflict of Interest policy (B/8.7). QUT will handle complaints effectively, manage confidentiality matters appropriately and behave fairly, impartially, lawfully, ethically and responsibly.

Effectively govern, plan and manage contracts

QUT will plan in advance and manage risk through effective oversight, accountability and appropriate internal controls. Its approach to governance facilitates consultation and value for money outcomes.

QUT will take the size, complexity, risk, criticality and value of what is being procured into account when buying goods and services in order to manage the procurement and contract management process in an effective manner.

QUT sets clear performance measures and effectively monitors and manages contracts to ensure high quality delivery, commercial benefits and consider opportunities for improvement.

Innovate and engage with stakeholders

While seeking the best value, QUT will look for opportunities to innovate, do things differently and build our procurement capability. QUT continually improves its procurement practices and provides visibility internally and externally to ensure an enterprise-wide view to procurement. QUT communicates and engages with stakeholders, as early as possible, in an open and effective manner.

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5.3.5 Procurement approach

QUT will use a consistent, five-stage procurement process to assist in achieving its procurement principles:

Stage
Purpose

1. Identify need

Identify the need, including assessing the size, value, complexity and risk of the procurement activity for QUT.

2. Plan

Plan the procurement and the essential elements needed. Based on the value and risk, develop the strategy (including analysis and research) to ensure best commercial outcomes, and develop the relevant market and contract documentation.

3. Evaluation and negotiate

Execute the procurement strategy including evaluation in an open, transparent manner. Negotiate to ensure the best outcomes for QUT.

4. Execute and transition

Approval and award of contract/s, transition and communication to key stakeholders.

5. Manage (contracts and suppliers)

Effectively manage contracts over their life cycle including optimising value, ensuring objectives are realised and delivered, performance is managed and supplier relationships are maximised and continuous improvement embedded.

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5.3.6 Delegations and purchasing thresholds

QUT’s expenditure and contract signing delegations (Appendix 3 – Schedule of Authorities and Delegations) set out dollar thresholds and mandate the correct oversight, contractual protection and ensure risks are managed appropriately. Approval for procurement activities must be in line with this schedule.

Staff with an expenditure delegation must ensure:

  • Value within delegation – the total accumulated value of the procurement activity does not exceed a delegate’s specified financial limit. This total value includes total cost of ownership, all significant costs, total aggregate value (if the contract has multiple year options), whole of life costs and transactions costs. Wherever possible, requirements of a similar nature should be aggregated to achieve best value for money.
  • No disaggregation – the value of a procurement activity is not disaggregated or split to reduce the expenditure to within a delegate’s financial limit, or to avoid a specific process.
  • Within budget – the availability of existing funds within an approved budget, or source of funds, are identified and / or established prior to the commencement of any procurement activity.

Variations – any variation or change to a procurement activity that has an impact on the procurement value (including an existing procurement activity) must be approved by the original financial delegate. Where a variation or change to a procurement activity results in an increase of the total procurement value that exceeds the original authorised financial delegate’s delegation amount, approval must be escalated to the next highest authorised financial delegate.

The value of the procurement activity dictates the procurement method required to ensure the best commercial outcome is achieved for QUT. QUT has set quotation thresholds that apply to the procurement process to ensure the principles of this policy are met. Further information is available in QUT’s Finance Manual, Chapter 4.1 Procurement and purchasing (QUT staff only).

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5.3.7 Definitions

Commercial decisions/outcomes means getting the best result that meets QUT’s business needs. Commercial outcomes are achieved by taking into account a range of factors including (but not limited to):

  • value for money (cost and non-costs factors including advancing social, environmental and local outcomes)
  • alignment to QUT’s vision and strategic direction (as outlined in the QUT Blueprint)
  • knowledge of supply markets and supply chains including the risks associated with these
  • understanding the effects of cost reductions, pricing models and exchange rate fluctuations
  • understanding regulatory requirements and the impact for QUT if changes occur
  • creating outcomes that are suitable for QUT, as well as the suppliers
  • ensuring all of QUT’s procurement principles are taken into account.

Procurement encompasses the whole process of obtaining goods and services. Beginning with the identification of needs, procurement can include the functions of planning, design, standards determination, specification writing, selection of suppliers, financing, contract management, disposals and other related functions. Procurement does not include grants.

Significant procurement includes goods and services identified by QUT as being high expenditure and/or for which there is a high degree of business risk. Value for money means more than the lowest price, including:

  • cost-related factors (such as up-front price, whole-of-life costs and transaction costs associated with acquisition, holding, maintenance and disposal)
  • non-cost factors (such as fitness for purpose, quality, delivery, service and support)
  • local benefits/outcomes that may be achieved through procurement
  • advancing social, environmental, sustainable and economic outcomes.

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5.3.8 Delegations

Refer to Appendix 3 Schedule of Authorities and Delegations (VC042, VC043, VC044, VC045, VC046, VC047 ,VC048, VC049).

Related Documents

MOPP A/1.2 Delegations

MOPP A/2.5 Risk Management

MOPP B/8.3 Public interest disclosure management

MOPP B/8.6 Corruption and fraud control

MOPP B/8.7 Conflict of Interest

MOPP G/5.2 Personal and Private Expenditure

Finance Manual Chapter 4.1 Procurement and Purchasing (QUT staff access only)

Financial and Performance Management Standard 2009

Financial Accountability Handbook

Queensland Procurement Policy 2018

Financial Accountability Act 2009

Public Sector Ethics Act 1994

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Modification History

Date

Sections

Source

Details

27.06.19 All Vice-President (Resources) and Chief Financial Officer Revised policy to align with Queensland Procurement Policy 2018 and renamed to Procurement
09.10.18 G/5.3.6, G/5.3.7 Vice-President (Resources) and Chief Financial Officer Policy revised to include changes to align with Queensland Procurement Policy and to reference the management of variations to procurement activities
10.07.18 All Vice-Chancellor and President Revised policy to include department name change from Corporate Finance to Finance Resource Management
25.02.16 G/5.3.7 Director, Governance and Legal Services Policy revised to include amended purchase values in the procurement approach

11.11.10

All

Director, Corporate Finance

Policy revised to incorporate sustainable procurement principles; new corporate procurement planning procedures; new financial threshold; and Health and Safety considerations.

12.07.10

G/5.3.3

Executive Director, Finance and Resource Planning

Revised changes in accordance with changes to Chemical management policy (A/9.8)

19.06.08

All

Acting Executive Director, Finance and Resource Planning

Policy reviewed - no change required

17.06.08

All

Director, Corporate Finance

Updated in accordance with revised legislation (State Purchasing Policy 2000 replaced by State Procurement Policy 2008)

24.07.06

G/5.3.5

Executive Director, Finance and Resource Planning

New policy relating to software acquisition (endorsed by Information Technology Advisory Committee 13.09.05)

06.09.05

G/5.3, G/5.3.1, G/5.3.2

Executive Director, Finance and Resource Planning

Revised policy

14.10.03

G/5.3.4

Acting Director, Financial Services

New policy to ensure compliance with relevant Queensland Government legislation and best practice.

06.06.03

G/5.3.3

Acting Director, Financial Services

New policy to regulate acquisition of chemicals (in line with chemical management policy A/9.8)

03.02.03

G/5.3.1

Acting Director, Financial Services

Revised policy to reflect new purchasing arrangements effective from 20.12.02

21.06.02

G/5.3.1

Director, Accounting Services

Revised policy to reflect increase in Corporate Credit Card limit

14.06.01

G/5.3 G/5.3.1

Director, Accounting Services

Updated to reflect new State Purchasing Policy

08.05.00

G/5.3.1 G/5.3.2

Accounting and Business Services Director

Revised policy (in accordance with GST substantiation requirements)

24.05.99

G/5.3

Finance Manager

Updated

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