AN OVERVIEW OF THE UNIVERSITY PROCUREMENT STRATEGY

Keith Mason

Deputy Director of Estate Management (Purchasing)

Agenda

• Current procurement strategy and plan

• How to identify suppliers, products and pricing for goods and services

• University Purchasing Regulations

• How to buy goods and services

• Role of Central Purchasing

• Questions

New procurement strategy and plan (1)

Strategy and plan based on 5 key objectives: • Opportunities owing to the implementation of a new FMS

• Introduce consistency throughout the procurement process

• To take account of the environment in the procurement decision making process

• Target of £3m cashable and non-cashable savings during 2008 – 2011

• Development of electronic systems (eTendering and ePurchasing

New procurement strategy and plan (2)

• Roll out the Agresso purchasing module throughout all departments and sections

• Competitive quotations to be obtained by staff with procurement skills

• Implementation of a stock profile that facilitates the maintenance of the campuses via the Agresso module

• Locations for the receipt of non-stock goods

How to identify suppliers, products and pricing for goods and services

• CPU website

• National, regional or local contracts

• Hardcopy catalogue/price list and online catalogue/pricing

• Email/telephone contact

CPU website

University Purchasing Regulations

• The University Purchasing Regulations should be considered in the purchasing process

Value Approach

£1 - £499 Price List/Telephone

£500 - £1,999 Single written quotation

£2,000 - £24,999 2-3 written quotations

£25,000 + 3-4 tenders

£130,000 + 3-4 tenders + EU

How to buy goods and services (1)• Purchase orders must be raised on the Agresso system for goods and services

Permitted exceptions:• Books and publications ordered by the Library

• Internal suppliers e.g. catering, hospitality, printing and reprographics

How to buy goods and services (2)

Permitted exceptions:

• Utilities, telecoms, postal and mail services

• Low value petty cash purchases

• Travel and subsistence reimbursed via expense claims

• Goods and services procured by use of a purchasing card

How to buy goods and services (3)

Purchasing cards should be used in accordance with the purchasing procedures:

• Travel – air/rail/road

• Hotels and accommodation

• Books and periodicals

• Office stationery

How to buy goods and services (4) Procedure for purchasing stationery

Previous• Hard copy requisitions• Stock and non-stock routes of supply• Stock management

Current• Non-stock supply via Agresso• Frequent deliveries• Invoiced following each delivery

Next Stage• Purchase stationery on-line• Utilise purchasing card (monthly statement)• 3 deliveries per week-desk-top service available

Authorisation structure for requisitions

Order Value Description

<£10,000 Self approval or Departmental Administrator/Purchaser for approval

£10,000 - £100,000

Departmental Administrator/Purchaser plus HOD for approval (further bands within this range can be decided by Departments separately)

>£100,000 Departmental Administrator/Purchaser plus HOD plus PVC for approval

Role of Central Purchasing Unit• Develop procurement strategy

• Monitor Procurement Plan

• Compile procurement procedures

• Manage Purchasing Regulations

• Report annually to USG on procurement activity

• Manage the tender process (£25k) in collaboration with users

• Offer help and advice to staff including:

OJEU advertising

Development of tender documentation, including contract award criteria

Evaluation of bids

Award of contracts

Contracting Procedure

Key Considerations• CPU website

• Purchasing Regulations

• National/Regional contracts

• Environmental

• Savings

• Purchase orders

• Purchasing cards

• Authorisation structure

• Contracting procedure

• Advice and support

Areas To Be Addressed• Responsibility for management of the Supplier Master File

• Responsibility for the regular analysis of management information from Agresso to determine where greater value can be achieved

• Introduction of Purchasing Cards throughout the University

• Further development of processes (eTendering and eProcurement)

• Resources within CPU

• Cross section working-CPU/Finance