PPRROOCCUURREEMMEENNTT PPOOLLIICCYY:: … Purchasing and Tendering procedures Jan... · The purpose of this document is to establish a framework for a common approach to ... To ensure

1

PPRROOCCUURREEMMEENNTT PPOOLLIICCYY::

PPUURRCCHHAASSIINNGG

&&

TTEENNDDEERRIINNGG

PPRROOCCEEDDUURREESS

2

Introduction Part A - General LIT Procurement Policy Part B - Purchasing Procedures Part C - Tendering Procedures

3

PART A: GENERAL LIT PROCUREMENT POLICY

1.1 Introduction……………………………………………………………….4. 1.2 Definition of Procurement at LIT…………………………………..4. 1.3 Roles/Responsibilities…………………………………………………4. 1.4 Scope of the Policy………………………………………………………5. 1.5 Objectives………………………………………………………………….5. 1.6 Procurement Support…………………………………………………..6. 1.7 Procurement Principles………………………………………………..6. 1.8 Approval Process…………………………………………………………8.

4

The purpose of this document is to establish a framework for a common approach to purchasing in Limerick Institute Technology (LIT) and to document the objectives and principles of procurement.

Arrangements for the procurement of goods and services are conducted in accordance with national procedures as amended and as outlined in: the procurement guidelines “Public Procurement Guidelines 2004” as amended by EU Directives, the Department of Finance Guidelines for Engagement of Consultants in the Civil Service March 1999 and the Guidelines for the Appraisal and Management of Capital Expenditure Proposals in the Public Sector, January 2005 and Department of Finance circulars. These documents, together with the most recent updates, are available for downloading from the e-tenders website: http://www.etenders.gov.ie/guides/guides_list.aspx?Type=2

An efficient procurement strategy can contribute significantly to the business of the institute and experience to date has shown that the implementation of a good procurement policy can lead to significant savings for schools, departments and central service areas.

„Procurement‟ is the term used by LIT to describe the function which supports purchasers in each school/department or central service area and which examines overall expenditure on services and supplies, to ensure that value for money is being obtained throughout the Institute.

Purchasing and compliance with the policy and procedures laid down remains the direct responsibility of each school/department and central service budget holder. The development and monitoring of the policies and procedures is the responsibility of the Finance Department and the Secretary Financial Controllers Office. Coordinated purchasing will occur where there is a cost saving or advantage to the Institute. In certain cases this will also apply to the purchasing of capital equipment where the actual processing of the purchase orders is completed within the Finance Office. The secretary Financial Controllers Office has responsibility in relation to management of tenders. The Shannon Consortium Procurement Network (SCPN), financed by the Strategic Innovation Fund, has been set up between UL, Mary I, Tralee IT and LIT to draw on collaborative procurement opportunities. The SCPN is now broadened to 9 of the Institutes of Technology. They will be implementing a progressive series of sector tenders aimed at delivering further savings for LIT.

1.1 INTRODUCTION

1.2 DEFINITION OF PROCUREMENT AT LIT

1.3 ROLES/RESPONSIBILITIES

http://www.etenders.gov.ie/guides/guides_list.aspx?Type=2

5

This policy covers all non-pay expenditure under the management of the

Institute irrespective of funding source. The guidelines for achieving value for money in public expenditure as outlined by the Minister of finance are being followed.

It acknowledges the organisational structure of the Institute whereby

management responsibility is devolved to members of the Executive and Management Group and budget holders.

It is essential that all LIT employees who are responsible for spending

Institute, Central Government and/or EU funds are familiar with this document along with the procedures for tendering for services and supplies.

LIT is committed to applying the Guidelines for the Appraisal and Management of Capital Expenditure Proposals in the Public Sector, as issued by the Department of Finance in February 2005

To ensure that value for money is achieved in all purchasing activity.

To ensure that the Institute‟s procurement policies and procedures comply

with Irish and EU public procurement regulations and to ensure that staff members are familiar with and observe all public procurement guidelines and regulations as applicable to their role.

To ensure that the Institute‟s procurement policies and procedures comply

with all statutory requirements.

To streamline, consolidate and, where possible, improve on purchasing practices.

To provide support across the Institute and to improve training and skills in

the purchasing area.

To compare pricing and methodologies with other institutions and or public sector bodies to ensure, where possible, that value for money is being obtained.

To ensure that stocks are kept to a workable minimum.

To ensure that staff members utilise the contracts put in place by the Institute

to obtain value for money and better quality and service. This should also lead to a reduction in the number of suppliers to the Institute, thereby making savings in administrative time and costs.

To enable the Finance Office to match invoices against orders and deliveries

and therefore to streamline the invoice matching.

1.4 SCOPE OF THE POLICY

1.5 OBJECTIVES OF THE POLICY

6

In realisation of the benefits to be gained from effective and efficient purchasing strategies and objectives, the Finance Office and Secretary Financial Controllers Office has overall responsibility for procurement in the Institute.

The Finance Office and the Secretary Financial Controllers Office will provide support to staff involved in purchasing to achieve value for money in respect of all services and supplies, without diminishing the quality and service levels presently enjoyed. This will include support from the Shannon Consortium Procurement Network. This support includes:

Development and updating of procurement & purchasing policies & procedures.

Negotiating and agreeing organisation-wide contracts while ensuring compliance with Institute procedures and Irish and EU regulations.

Ongoing supplier and contract management Assistance with Tendering process where relevant Advice on specific contract negotiations

Following the integration of TI, LIT now has a dedicated Procurement Officer. Contact details are as follows. Ms. Jacintha Burns, Procurement Officer, LIT Tipperary, Nenagh Road, Thurles, Co. Tipperary. Phone: 0504 28020. Email: [email protected]. Please note that the Procurement Officer is available Monday, Tuesday and Wednesday only. For large expenditures, it is advisable to involve the Finance Office and Secretary/Financial Controllers Office at an early stage. Advice and assistance can be provided at any time on any purchase regardless of value.

The purchasing activities will continue to be devolved to individual schools/departments and central service areas.

All financial matters involved in the purchasing of goods and services are governed by the financial policies and procedures of the Institute and all relevant statutory requirements.

Purchasers should ensure that purchase orders are fully authorised before

being placed (see „Purchasing Procedures‟).

All staff members should be aware that the auditors of the Institute and the

staff of the Comptroller and Auditor Generals office have full, free and unrestricted access to all procurement records within the Institute. Members of the Executive and Senior Management Group should ensure that complete records are maintained in their area of responsibility and that they are available for inspection at all times.

The ultimate responsibility for spending allocated within budgets lies with the

budget holders within the budgetary constraint that may exist and institute

1.6 PROCUREMENT SUPPORT

1.7 PROCUREMENT PRINCIPLES

mailto:[email protected]

7

policies and procedures.

All schools/departments and Central service areas, and budget holders are required to comply with Irish & EU legislation. Non-adherence to regulations can result in serious legal and financial sanctions for the Institute and the potential for expensive litigation. Purchasers should be aware that legislation and regulations change from time to time and it is the most recent legislative framework that applies. Purchasers should regularly update themselves on the e-tenders website www.etenders.irlgov.ie. Advice regarding regulations and procedures can be provided by the Finance office and the Secretary Financial Controllers Office.

Where the Institute has put contracts/preferred supplier lists in place, all

purchasers are obliged to utilise them. The Finance Office and Secretary/Financial Controller are also available to

examine tender documents and contracts prior to issuing, to ensure that they comply with relevant policies and procedures. Adequate time must be built into the project plan to allow for review and revisions to tender documents.

The standard payment term for the Institute is 30 days net. The Institute is

required to comply with the Late Payments in Commercial Transactions Regulations 2002.

The procurement of goods electronically (i.e., via the internet) is encouraged

but must comply strictly with the Institute‟s procurement procedures, including tax clearance requirements.

The Institute‟s purchased materials should be reviewed for opportunities for

recycling, reusing, reducing consumption, reducing packaging of products or in purchasing alternative products that have less environmental impact. Purchasers should ensure that suppliers comply with their requirements for recycling, particularly packaging and electrical items (WEEE Regulations- Waste Electrical & Electronic Equipment Directive 2002/96/EC).

Employees may not subscribe to electronic services or other contracts on

behalf of LIT unless they have the express authority to do so. Authority for subscriptions including electronic subscriptions such as these rests with the Finance office or the Secretary/Financial Controller and no other LIT employee has the authority to enter into any binding commitment on behalf of the LIT via email or the internet.

Employees may not subscribe to continuous supply contracts such as utility

supplies or enter into credit contracts. These must be approved by the Finance office or the Secretary/Financial Controller.

All goods and services purchased by or supplied on behalf of LIT are required

to be fully accessible by persons with disabilities. Where this is not practicable or justifiable on cost grounds or would result in an unreasonable delay to the purchase or the delivery of the service, a detailed explanation must be placed on the purchase file. This explanation must also contain details of any steps that need to be taken to overcome the difficulty in supply and the means by which LIT or the supplier will ensure that persons with a disability can avail of the service.

8

All approved limits/process are subject to annual budgets approved by Governing Body and to the annual allocated budget made to the Institute by HEA. The budget limits for each budget holder are set in the Agresso Financial system and managed through the Agresso approval process.

Please refer to the threshold limits outlined in Parts B and C of the document for information on how goods and services are to be procured.

1.8 APPROVAL PROCESS

9

Part B-PURCHASING PROCEDURES

2.1 Purchase File…………………………………………………………....10. 2.2 Student Maintenance Grants……………………………………….10. 2.3 Purchase Orders…………………………..……………………………10. 2.4 Types of Orders & Related Issues………………………………..11. 2.5 Thresholds of Application……………………………………………13. 2.6 Public Sector Collaboration…………………………………………15. 2.7 Award Criteria…………………………………………………………..16. 2.8 Evaluation of Offers…………………………………………………..16. 2.9 Conditions of Purchase………………………………………………16. 2.10 Delivery………………………………………………………………….17. 2.11 Invoicing…………………………………………………………….....17. 2.12 ProForma Invoices…………………………………………………..17. 2.13 Tenders and Quotations……………………………………………17. 2.14 Suppliers Issues A General……………………………………………………………………….18. B Nationality………………………………………………..…………………18. C Fairness………………………………………………………………………18. D Confidentiality……………………………………………………………..18. E Freedom of Information………………………………………………..18. F Competition Authority…………………………………………………..19. G New Suppliers………..………………………………………..………….19. H Tax Compliance…..………………………………………………….……19. I Insurances………..…………………………………………..…………….20. J Code of Ethics………………………..…………………………………….20. 2.15 Definitions…………………..………………………………………….22. 2.16 Standard Terms and Conditions…………………………………24.

10

2.0 Purchasing Procedures

Each School/Department and Central Service areas will maintain a “Purchasing File”. This file will contain details of all purchases made by the school or functional area. This file must be made available for inspection by the Finance Office, the internal auditors and the staff of the Comptroller and Auditor General on request.

All records on the purchase file must be kept for 10 years for EU Projects and 7 years for all others from the end of the financial year in which the record is created or in which the purchasing transaction is completed whichever is the later.

Payment of student maintenance grants are a special category of purchase and do not require a purchase order. However, the following must apply:

i. An approved grants process must be in place. ii. All payments must comply with the grant process. iii. Payments must be through the Banner system.

A purchase order must be raised on Agresso for all services and supplies and for all types of purchases in advance of the order being placed except in the case of:

a) Travel and subsistence expenditure Travel and subsistence claims are made using the Core System. It should be noted that the Travel and Subsistence claim system should not be used to make purchases. b) Purchases using petty cash A limited Petty cash system operates in LIT. The Petty cash system is used for ad-hoc small value purchases where the issuing of a purchase order and cheque is more expensive and cumbersome than cash. This system is to be used on a limited basis and prior approval must be received from both the budget holder and the Finance office before the expenditure is incurred. c) Continuous purchases for utility services on the Estates Office and ICT

Office budgets Continuous purchases for utility services on the Estates Office and ICT Office budgets must have Purchase Orders raised on receipt of invoice. d) License Fees Purchase Orders must be raised for the initial purchase of all Electronic Subscriptions, Professional Affiliations, Licenses, Software Licenses, Databases and Maintenance Contracts in advance of the purchase. Purchase Orders for the renewal of existing Subscriptions, Licenses, Software Licenses, Databases and Maintenance Contracts or service calls must be raised on receipt of a renewal notice or invoice.

2.1 PURCHASE FILE

2.2 STUDENT MAINTAINANCE GRANTS

2.3 PURCHASE ORDERS

11

A purchase order number must be quoted on all orders for services and/or supplies. All orders must be submitted to the supplier in writing (by letter, email or fax). One copy of the purchase order must be kept on file by the purchaser to match with goods received/delivery notices and invoices.

The order must clearly indicate the nature and quantity of the services or supplies required and contract, conditions of use, quotation or agreed price. If exact pricing is not possible, then estimated costs must be indicated unless there are good reasons for not doing so (the reasons for which must be recorded, approved by the appropriate member of the Executive and Senior Management Group and retained on the Purchasing File).

A tax clearance certificate is required from all suppliers or contractors providing goods or services in excess of €10,000(including VAT) in the course of 12 month period. The purchaser must establish that there is a current valid tax clearance certificate for the supplier or contractor on file with the Finance Office before placing any order. If there is no certificate on file, a copy of the tax clearance certificate must be obtained before placing the order. See Section on Relationships with Suppliers for information in relation to appointing new suppliers and tax clearance certificates.

Orders placed without purchase orders No order may be placed without a written purchase order number except in the following case: Emergency orders Emergency orders should normally be placed only outside normal working hours or when away from the office and unable to access the Agresso System to raise a purchase order. Where emergency orders are necessarily placed without an official order number, a purchase order number must be raised as soon as possible afterwards and a written explanation placed on the purchase file outlining the reasons for the emergency order being placed. In absolute emergencies, there may not be time to seek competitive bids and the Institute would, therefore, be invoking derogation from competition.

If any of the foregoing occurs, the purchaser should make a full written justification for approval by the relevant Member of the Executive and Senior Management Group for the decision not to seek competitive bids. This decision must also be approved by the Finance Office or the Secretary/Financial Controller

Electronic / internet orders Orders placed electronically or via the internet must follow the normal procurement procedure and must not be placed without a written purchase order. All usage of the internet to place orders must comply with the LIT Acceptable/Appropriate Use of ICT Policy. In certain situations staff members may use their own credit card to purchase small value items, this expenditure will then be reimbursed through the Finance System. This type of purchase may only take place with prior approval of the budget holder and the finance office and on the condition that tax clearance and other Procurement policies & procedures are complied with.

2.4 TYPES OF ORDERS AND RELATED ISSUES

12

Legal and external consultancy contracts and services These must be approved in advance by the Finance Office and the Secretary/Financial Controller.

Financial or leasing contracts These must be approved in advance by the Secretary/Financial Controller.

Purchase of all Electronic Subscriptions, Professional Affiliations, Licenses, Software Licenses, Databases and Maintenance Contracts

These must be approved in advance by the Secretary/Financial Controller. This applies to the initial purchase only. Renewal of any of the above is a matter for the relevant budget holder.

Sole Supplier On rare occasions, there may be only one supplier of a particular item and no alternative is available (“sole source”), the onus is on the Institute to prove that there is only one source available. From time to time, there will be a requirement that an item or items must be purchased from a particular supplier, usually to ensure compatibility with existing goods or servicing arrangements (“single source”). Justification for this must be based on a technical/risk assessment of not awarding the contract to the existing provider and written evidence must be placed on the Purchase File.

Insufficient Suppliers Where there are insufficient suppliers available or willing to submit quotations or tenders in respect of a request and the number of quotes available is less than the required number a note to that effect, establishing the number of available suppliers and copying any correspondence must be placed on the Purchase File.

Authorisation of orders Each budget holder is ultimately responsible for purchase orders made on his/her budget. It is the responsibility of the budget holder to ensure that all purchasing in the relevant area complies with LIT policies and procedures. While purchase orders may be requested by any employee of the Institute, the purchase must be authorised by the relevant budget holder before a purchase order is placed (see 2.15, „Definitions‟). Staff members in each school and functional area have been trained in the use of the Agresso System. All purchase orders will be printed and signed in the finance office. A valid purchase order must be signed by an appropriate member of the finance department as well as having the approval of the budget holder.

13

The following thresholds are mandatory and represent minimum requirements. These are applicable until 31st December 2013. The threshold relates to the total purchase value of all items on the purchase order. In circumstances where the contract is for a period of more than one year, the value is the total value over the lifetime of the contract. It should be noted that the threshold are VAT inclusive. For purchases of high specification equipment, it may be appropriate to use formal tendering to ensure greater competition and improved value for money. Advice on particular purchases may be sought from the Finance office or the Secretary/Financial Controller. Under no circumstances should requirements be split to bring purchases below a particular threshold.

THRESHOLDS FOR QUOTES AND TENDERS In order to decide the appropriate methodology for awarding various contracts, LIT uses the following thresholds:

Values Excluding VAT

Process Timelines

SUPPLIES & SERVICES TENDERS

Up to €1000 For contracts of purchases of supplies and services up to €1000 the price must be confirmed with the supplier prior to issuing a purchase order

Between €1000 and €5000

For contracts or purchases of supplies and services between €1000 and €5000 at least one written quotation must be obtained prior to issuing a purchase order. Depending on the nature of the requirement, it may be appropriate to seek more quotations. All quotations received must be retained on the purchase file


For contracts and purchases between €5000 and €25,000 three written quotations must be obtained from known suppliers or service providers These quotations must be retained on the purchase file

Excess of €25,000 but below €125,000

All goods and services in excess of €25,000 but below €125,000 must go to formal tender (See section on tenders) via national advertisement on the Irish government website www.etenders.irlgov.ie using the open procedure only. The Financial Controllers Office and the Finance Office must be consulted and all documents/specifications must be approved by the finance office/secretary/financial controller‟s office. In all cases only approved users of the etenders system can submit tenders to the site on behalf of the Institute.

21-28 days Tender Notice

Between €125,000 but below €200,000

All goods and services in excess of €125,000 but below €200,000 must go to formal tender (See section on tenders) via national advertisement on the Irish government website www.etenders.irlgov.ie using the open or restricted procedure. The Financial Controllers Office and the Finance Office must be consulted and all documents/specifications must be approved by the finance office/secretary/financial controller‟s office. In all cases only approved users of the

Open:21-28 days Tender Notice Restricted: 14 Days for EOI 14 Days for Tender

2.5 THRESHOLDS OF APPLICATION

http://www.etenders.irlgov.ie/


14

etenders system can submit tenders to the site on behalf of the Institute.

Excess of €200,000 Excess of €200,000-1st January 2012 to 31st December 2013.Must be advertised at European Level and awarded fully in compliance with the public supplies and the public services directives. The Secretary/Financial Controllers Office and Finance Office must be consulted in all stages of the process

OPEN procedure;52 Days, Reduction Available: 45 days if documents sent electronically-no pin 40 days if documents downloadable online Restricted Procedure; 37 Days for Expressions of Interest and 40 Days for receipt of Tenders Reduction Available: 30 Days +35 Days if sent electronically-no pin and if documents downloadable online.

WORKS TENDERS

Works contracts in excess of €50,000 but less than €250,000

All works and related services in excess of €50,000 but less than €250,000 must go to formal tender using the Open Procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (e.g. project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)

Open Procedure Only: 21-28 days Tender Notice

Works contracts in excess of €250,000 but less than €5,000,000

All works and related services in excess of €250,000 but less than €5,000,000 must go to formal tender using the Open Procedure or Restricted procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (e.g. project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)

Open or Restricted Procedure Open : 21-28 days Tender Notice Restricted: 14 Days for Suitability Assessment Questionnaire 14 Days for Tender Notice

Works >€5,000,000 1st January 2012 to 31st December 2013. Must be advertised at European Level and awarded fully in compliance with the Works Directives. The Secretary/Financial Controllers Office and Finance Office must be involved in all stages of the process.


The above thresholds are mandatory and represent minimum requirements. For particular purchases, it may be appropriate to use stricter limits where this would lead to improved value for money (for example, to seek tenders rather than quotations for high specification equipment). Advice on individual purchases may be sought from the Secretary/Financial Controller

15

Discounts or other favorable contract terms may be available through the public sector. Wherever possible, purchasing contracts made available by public sector collaboration should be supported, provided always that value for money can be demonstrated. These include arrangements made by government departments and/or agency contracts. The Institute must be satisfied that the original contracts were awarded in compliance with the appropriate regulations.

Individual school/department or central services area purchasing arrangements should be made available for the use of all schools/departments and central service areas in the Institute. Where the Institute has put contracts/preferred supplier lists in place, all purchasers are obliged to utilise them. Collaborative contracts and framework agreements are currently in place with the SCPN and LIT is obliged to use them. Framework agreements are also in place with the NPS https://www.procurement.ie/user For information on conducting mini tenders from established framework agreements, please contact the Secretary/Financial Controllers Office. Please refer to Part C of this document for further information re Panels and Framework Agreements The National Procurement Service (NPS) is also established to provide procurement services to all public bodies. http://www.procurement.ie/ The Shannon Consortium Procurement Network ( SCPN) (A) The Shannon Consortium Procurement Network The Shannon Consortium Procurement Network is a collaborative framework, between UL, LIT, MIC and ITT. The SCPN is now broadened to 9 of the Institutes of Technology. They will be implementing a progressive series of sector tenders aimed at delivering further savings for LIT. It will create a regional strategic alliance for procuring goods and services. The shared service network will have responsibility for compiling and analysing data across the Consortium to identify cost saving opportunities. The network will employ best practice procurement tools to assist the Consortium in maximising the value for money on expenditure in an efficient and environmentally sustainable way.

The development of procurement standards across the Consortium will enable collaboration between the institutions in other financial areas. This proposal will be the first financial shared services model to be implemented within the Irish HE sector and as such its success on implementation can serve as a model for other HE institutions. Collaborative tenders currently in place among the SCPN members include;

Stationary

Cleaning

Lab supplies Gas supplies Electricity External Print Framework

http://staffportal.lit.ie/Services/ComputerServices/PrintingPhotocopying/Framewo

rk/default.aspx PC‟s, Mobile Phones, Print Media

Purchasers of the Institute are obliged to use collaborative tenders in place.

2.6 PUBLIC SECTOR COLLABORATION

https://www.procurement.ie/user

http://www.procurement.ie/

http://staffportal.lit.ie/Services/ComputerServices/PrintingPhotocopying/Framework/default.aspx


16

The list is not exhaustive and purchasers should contact the SCPN, Finance or the Secretary/Financial Controllers Office if unsure of collaborations that exist and advice on its use.

All quotations and tenders must refer to the award criteria, i.e., the basis on which the decision to award the purchase/contract will be made (See also PART C Tendering for Goods and Services). There are two options available, irrespective of budget or threshold:

1. Lowest tender price or

2. Most Economically Advantageous Tender (MEAT) in terms of pre-stated criteria (e.g., cost, delivery, quality of resources, technical merit, etc.).

It‟s also possible to apply environmental or social criteria in the evaluation process (i.e., energy usage, end of life environmental value, employment of non typical work force, protection of minors, etc.). These should be included as part of the evaluation criteria. Where these are considered as part of the evaluation process, suppliers and tenderers must be notified in advance.

The award criteria including scoring and marking schemes must be established in advance of reviewing any tender submission and recorded in the relevant Budget Holder Signoff Form.(See Part C Appendix 1) Evaluation of offers, based on the scoring mechanism, must take account of all relevant costs relating to operational needs, acquisition, servicing, performance and disposal. While there is no obligation to accept the lowest quotation, rationale for this decision must be put in writing and recorded on the Purchase File. Evaluation of offers must be made by a competent team assembled for the purpose. The Institute‟s Standard Terms & Conditions of purchase (see 2.16) stipulate that payment should not normally be made prior to the receipt of services or supplies. Should payment be requested by a supplier prior to receipt of services or supplies and that request is supported by the purchaser, written authorisation must be obtained from the Finance Manager and Secretary/Financial Controller.

Wherever possible, purchasers should strive for standardisation of products/services. Fragmentation of ordering among a wide range of suppliers for similar services or supplies usually reduces the scope for competitive negotiations and for improving product quality and availability.

Where services or supplies are used by more than one school or functional area, the supply should be coordinated by a designated purchaser (to be agreed on each occasion).

Unless other arrangements are made with the Finance office or the Secretary/Financial Controller, all purchase orders must be placed on the basis of the Institute‟s standard conditions of purchase. Purchasers must advise suppliers that

2.7 AWARD CRITERIA

2.8 EVALUATION OF OFFERS

2.9 CONDITIONS OF PURCHASE

17

these conditions take precedence. Purchasers must also carefully examine a supplier‟s conditions of sale and, where these are in conflict with the Institute‟s conditions of purchase, advice must be sought from the Finance office or Secretary/Financial Controller. Financial leasing agreements, etc. are a special category of purchasing and must be discussed with the Secretary/Financial Controller. The normal place of delivery for all services or supplies must be one of the Institutes locations at Moylish Park, Limerick, Clare St Campus, Limerick, Thurles Campus, Tipperary and Clonmel Campus, Tipperary. Alternative delivery addresses must be agreed in advance of delivery with the Finance office or the Secretary/Financial Controller. All delivery dockets must be retained on the purchase file and entered onto the Agresso system. Budget Holders should ensure that the relevant GRN is raised on Agresso following receipt of goods/services. All invoices must quote an official purchase order number. Invoices without an official purchase order number will be referred to the supplier for rectification. When an invoice is received without an official order number, the purchaser will be required to explain or justify the circumstances of the purchase. All Invoices must be sent directly to the Finance Office.

Some suppliers use "Pro-Forma" invoices to enable customers to make payments on a draft invoice. LIT does not prohibit the use of such invoicing. Payments on such invoices are subject to the approval of the Finance Office. The primary basis for providing evidence of value for money is to be able to show that what was offered by the selected supplier provided better value for money than offered from any other potential supplier. This can only be reasonably achieved by inviting competitive tenders (for high value or unique specification equipment) or quotations (for low value or standard “off the shelf” specifications). It is rarely the case that there is only one possible supplier.

Tender and quotation processes take time to complete and in the case of tender processes there are legally imposed time scales. In order to ensure that LIT avoids costly and unnecessary litigation, the procurement process should not be rushed or truncated. Proper planning will ensure that procurement is carried out in sufficient time to meet the Institute‟s needs. The e-tenders website www.etenders.irlgov.ie contains details of the legal time requirements. Any derogation from this must be approved by the Secretary/Financial Controller.

Tender documents must be kept for at least ten years after the end of the financial year in which the contract is finally completed. All action taken during the course of tendering negotiations must be recorded and documented by the person responsible for the purchase. See also PART C of this document for tendering for Services and Supplies

2.10 DELIVERY

2.11 INVOICING

2.12 PRO-FORMA INVOICES

2.13 TENDERS AND QUOTATIONS

18

A General The selection of suppliers will be based on sound business principles which recognise, amongst other factors, the quality of the services and supplies offered, relevant experience and reputation, financial stability and the ability to perform the contract in a timely and efficient manner.

B Nationality Purchasers must consider any source, regardless of origin.

C Fairness All dealings with suppliers should be handled in a prompt and courteous manner. Every effort should be made to treat suppliers fairly and equally and, in tender situations, to furnish all with the same adequate information. Reasonable efforts should be made to ensure that tender lists only comprise those suppliers who are financially sound and who have a realistic chance of winning the business. Suppliers should not be discriminated against on the basis of their recent entry to the market. The EU and national procurement processes specifically encourage purchasers to actively consider small and emerging suppliers.

D Confidentiality Tenders and quotations should be solicited on the basis that they will remain confidential both before and after the business is placed (See also section 9.5 Freedom of Information). Equally, suppliers are obliged to ensure that any privileged information regarding the operations of the Institute is kept strictly confidential and divulged only on a need-to-know basis. Suppliers and their employees, agents and sub-contractors should sign a confidentiality agreement.

E Freedom of Information

LIT are bound by the Freedom of Information Act; LIT is committed to open government and meeting its legal responsibilities under the FOIA. Accordingly, any information created by or submitted to LIT (including, but not limited to, the information contained in the tender documents, clarification questions and responses, and the minutes of meetings between all or any of the Tenderers).The data may need to be disclosed by LIT in response to a request for information. Any persons may make a request for information at any time before or after Contract signature. LIT may also decide to include certain information in the relevant publication proposal maintained under the FOIA.

In making a submission, each Tenderer (and each Relevant Organisation) therefore acknowledges and accepts that the information contained therein may be disclosed under the FOIA, either without consulting the Tenderer or following consultation with the Tenderer and having considered its views.

Tenderers must clearly identify any information supplied in response to this tender, which they consider to be confidential or commercially sensitive and attach a brief

2.14. SUPPLIER ISSUES

19

statement of the reasons why, including details of the harm which may result from disclosure and the time period applicable to the sensitivity.

Where it is considered that disclosing that information in response to an FOIA could cause a risk to the procurement process or prejudice the commercial interest of any tenderer, LIT may wish to withhold such information under the FOIA exemption.

However, Tenderers should be aware that even where a Tenderer has indicated that information is commercially sensitive, LIT is responsible for determining at its absolute discretion whether such information is exempt from disclosure under the FOIA or whether or not it must be disclosed.

Tenderers should therefore note that the receipt by LIT of any information marked “confidential” or equivalent does not mean that LIT accepts any duty of confidence by virtue of that marking, and that LIT has the final decision regarding the disclosure of any such information in response to a request for information.

F Competition Authority

The Institute is obliged to report any suspicious of collusion or anti-competitive practices to the Competition Authority. The Institute will co-operate with Competition Authority in any investigation. Any communication with or from the Competition Authority should be channeled through the office of the Secretary/Financial Controller.

G New Suppliers

The Finance Office will respond to all requests to establish new suppliers. Purchasers may request that a new supplier be established using the Supplier Set up Form in Appendix 3. All of the details requested in the Supplier Set-up Form must be completed prior to any order being placed. Purchasers should note that it can take up to two weeks to establish a new supplier. The Finance Office will process all applications for new suppliers as speedily as possible.

H Tax Compliance LIT is committed to ensuring compliance with all Irish Tax Legislation. Purchasers should ensure that all suppliers, particularly new suppliers are aware of the tax obligations and policy of LIT. The following are the current requirements:

Tax Clearance Certificates All suppliers in receipt of more than €10,000 including VAT are required to be in possession of a valid Tax Clearance Certificate. Suppliers are obliged to apply for these from the Revenue Commissioners on www.ros.ie. All new suppliers should be notified by the purchaser of this requirement prior to any purchase being made. Professional Service Withholding Tax Professional Services suppliers are subject to a withholding tax of 20% on relevant services. This tax will be deducted by LIT and the relevant payment receipt issued to the Revenue Commissioners. VAT VAT is payable on all purchases. There are a range of rates applicable and these are amended from time to time. Two rates “exempt” and “zero” incur a nil vat cost. Others incur a cost relating to the relevant VAT percentage. VAT is also payable on foreign purchases. The Finance Office should be consulted in advance

20

of placing any orders with foreign suppliers to establish the appropriate VAT treatment. All Purchase orders must include the cost of VAT. LIT is registered for VAT and is required to submit a VAT return to the Revenue Commissioners. Relevant Contracts Tax LIT is required to operate RCT for all construction contracts. The Revenue Commissioners must be notified of any construction contracts in advance and the applicable RCT rate will then be advised. Individual payments in connection with the contract must subsequently be recorded on the Revenue Commissioners online system. Purchasers must inform suppliers of this requirement. The Finance Office should be contacted for full details of this requirement.

I Insurances All suppliers and service providers are required to carry insurances relevant to their business or profession. These insurances include but are not limited to: Contractors All Risks, Employers Liability, Public Liability, Professional Indemnity. Purchasers must ensure that they obtain proof of insurance from suppliers prior to placing an order.

J Code of ethics

As a public body, the highest standards of ethical behavior and integrity in the conduct of business are expected of all staff involved in purchasing in LIT.

i. Any personal interest which may impinge or might reasonably be

deemed by others to impinge upon impartiality in any matter relevant to purchasing duties should be declared to the Secretary/Financial Controller for recording and approval before conducting the business.

ii. The confidentiality of information received in the course of duty should

be respected and specific details of suppliers‟ offers must not be divulged to competitors.

iii. Information given in the course of duty should be true and fair, and

never designed to mislead and should never be used for personal gain.

iv. While bearing in mind the advantages to the Institute of maintaining a continuing relationship with a supplier, any arrangement which might, in the long term, prevent the effective operation of fair competition should be avoided. See Section 9.6 above.

v. Gifts, other than items of very small intrinsic value, such as business

diaries, calendars, telephone pads, etc., should not be accepted. Items for personal use should be declined. Modest hospitality is an accepted courtesy of a business relationship in Ireland. However, the recipients should not allow a position to be reached whereby they might be or might be deemed by others to have been influenced in making a business decision as a consequence of accepting such hospitality. The frequency and scale of hospitality should not be significantly greater than the Institute would be likely to provide in return. Staff members should be aware that such business hospitality may not be regarded as standard in other cultures.

vi. When it is not easy to decide between what is and is not acceptable in

terms of gifts and hospitality, advice must be sought from the

21

Secretary/Financial Controller and acceptance of the offer must be approved by the Director.

vii. Personal inducements in any form from suppliers of goods and services

to employees are forbidden. Any instances of such inducements must be advised immediately to the Secretary/Financial Controller.

viii. It may occur that the Institute conducts business in which a family

member or close associate of an employee of the Institute is involved. While such business arrangements are not disallowed, it is important that there is no impropriety or perception of impropriety in such an arrangement. Where such a situation arises or may potentially arise, the Secretary/Financial Controller must be notified and, where possible, the Institute employee must withdraw from the process. Clarification of what constitutes a family member or close associate may be obtained from the Secretary/Financial Controller at any time.

ix. It may occur that an employee of the Institute may wish to make a

personal purchase from an approved supplier of the Institute, availing of discounts or other arrangements which have been negotiated by the Institute with that supplier. While such a transaction is not disallowed, this is a private arrangement between the employee and the supplier for which the Institute takes no responsibility. The employee must (a) make it clear to the supplier that this is a private transaction between himself/herself and that supplier, (b) negotiate privately with the supplier as to whether he/she may utilise the Institute discounts, etc., (c) arrange for delivery and (d) pay for all goods/services and/or delivery costs directly to the supplier. The Institute must not be invoiced for these goods/services and/or delivery costs.

x. Suppliers who attempt to provide inducements over above that which

would be considered acceptable will be removed from all future tender lists.

22

Agresso The financial management software used by the Institute. Authoriser Staff members of the Institute who have been assigned access to the Agresso System to approve the purchase of goods or services subject to the limits set out in this policy. Budget holders Members of the Executive and Management Group who have responsibility for particular budget within the overall Institute budget. The ultimate responsibility for the budget lies with the Secretary/Financial Controller and the President Capital items Capital items or assets are those items of equipment that are expected to provide useful benefit to the Institute for more than one financial year. Capital items must have a minimum value of €1,200 inclusive of VAT when purchased. Capital items must be registered on the Institute‟s Fixed Asset Register. Procurement „Procurement‟ is the term used by LIT to describe the process by which expenditure is made by the Institute. The procurement process commences with an identification of a need. This could be a shortage of stationery to ensure the functioning of an office environment, it could be the replacement of a redundant piece of equipment, it could be an annual need to notify prospective students of our classes (the prospectus) or it could be a need for additional space. Once the need has been identified a specification or project plan needs to be developed to meet the need. A range of supply options needs to be identified and a process put in place to source the services or supplies. There needs to be checks against the available budgets for the project. There must be a tender or quotation process put in place. The purchase must be placed and the services or supplies received, checked and accounted for and the payment must then be authorized. Procurement is the term used for the entire process, purchasing is one element of the process. Purchaser Staff members of the Institute who have been assigned access to the Agresso System to order goods or services subject to the limits set out in this policy. Purchasing Purchasing is one part of the procurement process. Purchasing is that element that commences with a request for tenders or quotations and is completed with the recording of the service or supply being received by the Institute. Services Services relates to the provision of more than a simple product, although the provision of a product or supply may be included in a service contract. Services are usually provided over a period of time or for a specified output. For LIT these usually relate to the provision of advice or consultancy or maintenance contracts. The category includes architectural, engineering and other professional services and also sewage, refuse disposal, sanitation and other similar services.

2.15. DEFINITIONS

23

Supplies Contracts for supply usually relate to the purchase of products or specific items. These can be regular purchases such as stationery or one off purchases such as the purchase of capital items. A contract for supply can be financed by way of direct purchase, lease, rental or hire purchase. Contracts for supply include any delivery, installation and operation costs along with the actual supply cost. There may be circumstances where there is both a supply and service element to a contract such as equipment with a maintenance contract or supplies associated with a service contract. Determining whether a contract is a supply or service contract can be made by reference to the relative value of costs for each element of the contract or by reference to the relative importance of one element to the other. Advice on this can be obtained from the Secretary/Financial Controller. Value for money Value for money, as specified in the Comptroller and Auditor General (Amendment) Act, 1993, encompasses (a) economy, i.e. providing suitable resources for a task at the lowest cost having regard to quality and (b) efficiency which relates the cost of resources to the outputs achieved. Value for money also encompasses effectiveness. This is defined in terms of the systems, procedures and practices used by government departments and other public sector bodies for the purpose of evaluating the effectiveness of their operations. Works Works contracts cover the full range of building and civil engineering contracts including the supplies and services necessary to carry them out.

24

In these Terms and Conditions, the expression “LIT” shall mean the Limerick Institute of Technology, “the contractor” shall mean the person, firm or corporate body whose tender shall be accepted by LIT and “the supplies” shall mean the supplies, goods or services described in the specification. 1. General terms

1.1 The contractor undertakes to perform all work contracted by him/her on behalf of LIT to the highest professional standards at all times.

1.2 The contractor undertakes at all times, now and in the future to

respect in full the confidentiality of all information, knowledge or documentation brought to his attention as a result of the contract and not to disclose any such confidential information to any third party.

1.3 The contractor shall accept sole responsibility for acquiring any permits

or licences necessary for the performance of the contract.

1.4 LIT shall not be responsible under any circumstances for any loss or damage suffered by the contractor or his servants or agents in the performance of the contract on behalf of LIT, nor entertain any claim relating to such damage.

1.5 All intellectual property, copyright or patents arising from the

performance of the contract by the contractor on behalf of LIT shall become and remain the property of LIT.

1.6 Copyright and any other rights of ownership in respect of all

manuscripts or parts thereof created on behalf of LIT shall belong exclusively to LIT on a permanent basis.

1.7 The contractor shall inform LIT of existing copyright(s), if any,

attaching to any documentation etc. to be used as part of the contract and to obtain all the necessary permits or licences for the ultimate holders of such rights and to indemnify LIT against any claims or litigation in respect of same.

2. Warranties

2.1 The contractor warrants to LIT and it is a condition of the contract that

the Supplies: 2.1.1Will be of merchantable quality and fit for any purpose held out

by the supplier or made known to the supplier in writing at the time the order is placed and for use by LIT in the ordinary course of its business; 2.1.2 Will be free from defects; 2.1.3 Will correspond in all respects with the specifications and/or any

sample or as otherwise agreed in writing;

2.16. STANDARD TERMS AND CONDITIONS

25

2.1.4 Will comply with all statutory requirements and regulations relating to the materials, design, manufacture, packaging, packing, distribution, sale and purchase of the supplies.

2.2 In the event that any supplies do not conform with any of the

warranties in condition 2.1, and without prejudice to any other remedy that LIT may have, LIT shall be entitled at any time during the period of two years following the date of delivery and at its sole discretion to require the supplier, at the supplier‟s expense, to repair or replace within fourteen days or such other period as is specified by LIT any such supplies and to reimburse LIT with all costs incurred in recovering and returning such supplies.

2.3 If the contractor fails to repair or replace any supplies within fourteen

days (or such other period as is specified by LIT) in accordance with condition 2.2 LIT shall have the right to purchase replacement supplies from another source and any money paid by LIT to the supplier in respect of the supplies together with any additional expenditure over and above the price reasonably incurred by LIT in obtaining replacement supplies shall be paid by the supplier to LIT.

2.4 The warranties and remedies provided for in condition 2 shall be in

addition to those implied by or available at law or in equity and shall continue in force notwithstanding acceptance by LIT of all or part of the supplies in respect of such warranties and remedies.

3. Ordering and delivery of supplies

3.1 The supplies may be supplied only following issue of a written official purchase order to the contractor.

3.2 The supplies shall be delivered to the satisfaction of e LIT in strict

conformity with specification, except as may otherwise be agreed by LIT.

3.3 Delivery shall be to the place named on the official order.

3.4 Contractor to indemnify the purchaser against any damage or injury

occasioned in the course of delivery to the extent that any such damage or injury is attributable to any act or omission of the contractor or any of his sub-contractors.

3.5 The contractor shall be in a position to deliver the supplies within a

four week time limit from date of order or within an extended time period to the mutual agreement of the contractor and LIT. Contractors must include minimum delivery times applicable to each item offered for supply.

4. The supplies

4.1 To the reasonable satisfaction of the purchaser in conformance with the contract, the Supplies shall conform to all applicable legislation.

26

4.2 Supplies may be inspected by the purchaser‟s representative at the

contractors‟ premises or after delivery. Any supplies found defective or inferior in quality or differing from specified requirements may be rejected. Supplies so rejected will not be considered as having been delivered under the contract and the contractor shall at his own expense replace them with the correct supplies in accordance with the contract.

4.3 The contractor shall not make any alteration in the supplies requested

except such as may be authorised or directed in writing by LIT. Suggestions for change in specification or model to be supplied must be notified in writing to LIT and authorisation sought to make amendments.

5. Damage in transit

5.1 An advice note specifying the means of transport, place/date of dispatch, number of packages and their weight and volume.

5.2 If damaged in transit, then the contractor shall either replace or repair

as required by the purchaser, such of the supplies as may be undelivered or damaged in transit.

5.3 Notice of damage by purchaser to be made within 30 days of delivery.

5.4 Notice of non-delivery within reasonable time of notification.

6. Infringement of rights

6.1 As a condition of the contract between the purchaser and the contractor, the supplies supplied may not infringe any patent, trademark, registered design, copyright or other right of any third party and the contractor shall indemnify the purchaser against all actions, claims, suits, demands, losses, costs or expenses incurred or likely to be incurred by the purchaser under this heading.

7. Indemnity and insurance

7.1 The contractor shall indemnify the purchaser against all claims including all legal costs and expenses incurred by the purchaser for loss arising as a result of damage to any property whatsoever where due to any negligence or default of the contractor or his agents or sub-contractors or as a result of injury or death of any person which may occur in the course of or arising from or in any way connected with the performance of this contract.

7.2 Where the contractor or any sub-contractor fails to insure any risk as

required by the purchaser, in accordance with the contract, the purchaser may insure the risk in question and deduct the amount of the premiums from any monies due to the supplier.

27

8. Copyright and other rights

8.1 All specifications, products or documents supplied by LIT or produced by the contractor in connection with the contract together with all intellectual property rights, design rights or copyright connected therewith shall become and remain the property of LIT.

9. Acceptance of goods and services

9.1 Acceptance by LIT of all goods and services under the contract shall be subject to examination and inspection for compliance and conformity with specification. Goods and services which do not so conform shall neither be accepted by nor paid for by LIT.

10. Notice of rejection

10.1 LIT shall give notice within 10 days of delivery of rejection of goods or

services which fail to comply with or conform to its specification or order whether in terms of quality, quantity or otherwise. Rejected goods will not be considered as having been developed under the contract.

11. Law of contract

11.1 The contract shall be subject and interpreted in accordance with Irish law and shall be subject to the jurisdiction of the courts of the Republic of Ireland, unless otherwise agreed in writing between the parties.

12. Delivery time

12.1 The goods and services shall be delivered at the times and dates agreed under the contract or as stated on LIT‟s official orders or in particular instances.

13. Packing

13.1 All goods shall be packed and secured in such a manner to reach their destination in good condition.

14. Settlement

14.1 LIT shall be at liberty in settling and valuing the amount due to the contractor to take into consideration any deficiency in the quality of the supplies or in the quality of the materials and labour employed in the manufacture thereof, and to make, on account of the said deficiency, such reduction in price or prices as it may consider reasonable.

28

15. Insolvency 15.1 LIT shall be at liberty, upon breach of any of the conditions of contract,

or upon the contractor becoming bankrupt or insolvent, or making any assignment for the benefit of creditors forthwith, to rescind the contract altogether and to withhold from the contractor as absolutely forfeited all monies which the contractor might otherwise have claimed under the conditions of contract and to do all things that he shall consider proper for having the contract completed and also to recover from the contractor, or deduct from any monies of the contractor in his hands, the extra expense occasioned thereby.

29

PART C- TENDERING PROCEDURES 3.1 Guiding Rules and Regulations………………………………………………..30. 3.2 Compliance with legislations…………………………..………………………30. 3.3 Principles………….………………………………………………………………….30. 3.4 Spending………………………………………………………………………………31. 3.5 Thresholds…………….………………………………………………………………32. 3.6 Tender Planning…………………..………………………………………………..34. 3.7 Tender Support and Public Sector Collaboration………………………..34. 3.8 Contracts/Preferred Suppliers………………………………… ……….......36. 3.9 Summary outline of tender process at LIT…………………………….....37. 3.10 Detailed information for Budget Holders…………………………………..38. 3.11 Identifying requirements, funding, value and period…………..……..38. 3.12 Flowchart of tender procedures and timescales……………..………….39. 3.13 Procurement Office compiles RFT…………………………………………….42. 3.14 Tender Deadline…..........................................................................43. 3.15 Tender notice on etenders…..........................................................43. 3.16 Response to tender queries……………………………………………….......46. 3.17 Receipt and opening of tenders………………………………………….……46. 3.18 Evaluation of tenders……………………………………………………………..47. 3.19 Clarification of tenders…………………………………………………………..48. 3.20 Notifying Tenderers………………………………………………………….......49. 3.21 Award of contract…………………………………………………………….......49. 3.22 Debriefing…………………………………………………………………………….50. 3.23 Signing of Contract……………………………………………………..……......50. 3.24 Supplier set up, TCC and raising the PO……………………………………51. 3.25 Maintenance of records for inspection………………………………….....52. 3.26 Types of procedures……………………………………………………………….52. 3.27 Supplier panels and framework agreements……………………………..56. 3.28 Tendering for works contracts…………………………………………………59. 3.29 Evaluation and Award Criteria…………………………………………………61. 3.30 Corporate Procurement Plan…………………………………………………..62. 3.31 Additional Information…………………………………………………………..63. Appendix 1-Tender Approval Forms………………………………………………..66. Appendix 2-Checklist Tender Procedures for LIT Budget holders………..81. Appendix 3-Supplier set up form…………………………………………………….84. Appendix 4-Sample Tender Opening Sheet………………………………………90. Appendix 5 -Sample tender evaluation form…………………………..………..92. Appendix 6- Pre Qualification Questionnaire…………………………………….97.

30

LIT is obliged to comply with the principles of competitive tendering in expenditure for supplies, works and service contracts.

3.1 GUIDING RULES AND REGULATIONS In addition to internal regulations, LIT is subject to the following:

The Department of Finance Guidelines on Competitive Tendering The European Public Procurement Directives and the Irish Regulations The European Treaties Department of Finance Circulars

These documents together with the most recent updates are available for downloading from the e-tenders website. http://www.etenders.gov.ie/guides/guides_list.aspx?Type=2

All schools/departments and Central service areas, and budget holders are required to comply with Irish & EU legislation. Non-adherence to regulations can result in serious legal and financial sanctions for the Institute and the potential for expensive litigation. Purchasers should be aware that legislation and regulations change from time to time and it is the most recent legislative framework that applies. Purchasers should regularly update themselves on the e-tenders website http://www.etenders.gov.ie/guides/guides_list.aspx?Type=2 Advice regarding regulations and procedures can be provided by the Finance office and the Secretary Financial Controllers Office.

3.3 PRINCIPLES European Court & Treaty of Rome All procurement is subject to a set of principles deriving from the judgements of the European Court and based upon the Treaty of Rome. They are:

Transparency in relation to all activities of the procurement process. Equal treatment of all interested parties. Mutual recognition of qualifications, standards and specifications offered by

tenderers. Proportionality in relation to requirements requested of parties to the process,

in as much that they must be relevant and proportionate to the contract in question.

In addition to the principles outlined above, all procurement should be carried out with the objective of achieving a quality product/service and value for money.

3.2 COMPLIANCE WITH LEGISLATION



31

The ultimate responsibility for spending allocated within budgets lies with the budget holders. This spending is subject to both budgetary constraints that may exist and institute policies and procedures. LIT is committed to applying the Guidelines for the Appraisal and Management of Capital Expenditure Proposals in the Public Sector, as issued by the Department of Finance in February 2005

3.4 SPENDING

32

3.5 THRESHOLDS FOR QUOTES AND TENDERS In order to decide the appropriate methodology for awarding various contracts, LIT uses the following thresholds:


Process Timelines











All goods and services in excess of €125,000 but below €200,000 must go to formal tender (See section on tenders) via national advertisement on the Irish government website www.etenders.irlgov.ie using the open or restricted procedure. The Financial Controllers Office and the Finance Office must be consulted and all documents/specifications must be approved by the finance office/secretary/financial controller‟s office. In all cases only approved users of the etenders system can submit tenders to the site on behalf of the Institute.






33

WORKS TENDERS


All works and related services in excess of €50,000 but less than €250,000 must go to formal tender using the Open Procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (e.g. project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)



All works and related services in excess of €250,000 but less than €5,000,000 must go to formal tender using the Open Procedure or Restricted procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (e.g. project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)





34

3.6 TENDER PLANNING The primary basis for providing evidence of value for money is to be able to show that what was offered by the selected supplier provided better value for money than offered from any other potential supplier. This can only be reasonably achieved by inviting competitive tenders for high value or unique specification equipment. It is rarely the case that there is only one possible supplier.

Tender processes take time to complete and are subject to legally imposed time scales. In order to ensure that LIT avoids costly and unnecessary litigation, the procurement process should not be rushed or truncated. Proper planning will ensure that procurement is carried out in sufficient time to meet the Institute‟s needs. The e-tenders website www.etenders.irlgov.iecontains details of the legal time requirements. Any derogation from this must be approved by the Secretary/Financial Controller.

Tender documents must be kept for at least ten years after the end of the financial year in which the

contract is finally completed. All action taken during the course of tendering negotiations must be

recorded and documented by the person responsible for the purchase.

3.7 TENDERING SUPPORT Tendering support is available from

The Procurement Office The Finance Office The Secretary/Financial Controllers Office The Shannon Consortium Procurement Office

The Finance Office and Secretary/Financial Controller must coordinate tender documents and contracts prior to issuing, to ensure that they comply with relevant policies and procedures. Adequate time must be built into the project plan to allow for review and revisions to tender documents. Following the integration of TI, LIT now has a dedicated Procurement Officer. Contact details are as follows. Ms. Jacintha Burns, Procurement Officer, LIT Tipperary, Nenagh Road, Thurles, Co. Tipperary. Phone: 0504 28020. Email: [email protected] Please note that the Procurement Officer is available on Monday, Tuesday and Wednesday only. (B) Finance Office and Secretary/Financial controllers office In realisation of the benefits to be gained from effective and efficient purchasing strategies and objectives, the Finance Office and Secretary Financial Controller‟s Office has overall responsibility for procurement in the Institute.

The Finance Office /Secretary Financial Controllers Office will provide support to staff involved in purchasing to achieve value for money in respect of all services and supplies, without diminishing the quality and service levels presently enjoyed. This will include support from the Shannon Consortium Procurement Network1. Tendering support includes:

Development and updating of procurement & purchasing policies &


mailto:[email protected]

35

procedures.

Negotiating and agreeing organisation-wide contracts while ensuring compliance with Institute procedures and Irish and EU regulations.

Ongoing supplier and contract management Assistance with the tendering process where relevant Advice on specific contract negotiations

For large expenditures, it is advisable to involve the Finance Office and Secretary/Financial Controllers Office at an early stage. Advice and assistance can be provided at any time on any purchase regardless of value.

The purchasing activities will continue to be devolved to individual schools/departments and central service areas. (C) The Shannon Consortium Procurement Network (SCPN) The Shannon Consortium Procurement Network is a collaborative framework, between UL, LIT, MIC and ITT. The SCPN is now broadened to 9 of the Institutes of Technology. They will be implementing a progressive series of sector tenders aimed at delivering further savings for LIT. It will create a regional strategic alliance for procuring goods and services. The shared service network will have responsibility for compiling and analysing data across the Consortium to identify cost saving opportunities. The network will employ best practice procurement tools to assist the Consortium in maximising the value for money on expenditure in an efficient and environmentally sustainable way.

The development of procurement standards across the Consortium will enable collaboration between the institutions in other financial areas. This proposal will be first financial shared services model to be implemented within the Irish HE sector and as such its success on implementation can serve as a model for other HE institutions. Collaborative tenders currently in place among SCPN members include;

Stationary

Cleaning

Lab supplies Gas supplies Electricity External Print Framework

http://staffportal.lit.ie/Services/ComputerServices/PrintingPhotocopying/Framewo

rk/default.aspx PC‟s, Mobile Phones, Print Media

Purchasers of the Institute are obliged to use collaborative tenders in place. The list is not exhaustive and purchasers should contact the SCPN if unsure of collaborations that exist and advice on its use.



36

Discounts or other favourable contract terms may be available through the public sector. Wherever possible, purchasing contracts made available by public sector collaboration should be supported, provided always that value for money can be demonstrated. These include arrangements made by government departments and/or agency contracts. The Institute must be satisfied that the original contracts were awarded in compliance with the appropriate regulations.

Individual school/department or central services area purchasing arrangements should be made available for the use of all schools/departments and central service areas in the Institute.

Where the Institute has put contracts/preferred supplier lists in place, all purchasers are obliged to utilise them. Collaborative contracts and framework agreements are currently in place with the SCPN and LIT is obliged to use them. Framework agreements are also in place with the NPS https://www.procurement.ie/user For information on conducting mini tenders from established framework agreements, please contact the Secretary/Financial Controllers Office. Please refer to Section 3.27 of this document for further information re Panels and Framework Agreements The National Procurement Service (NPS) is also established to provide procurement services to all public bodies. http://www.procurement.ie/

3.7 PUBLIC SECTOR COLLABORATION

3.8 CONTRACTS /PREFERRED SUPPLIER LISTS/FRAMEWORKS

https://www.procurement.ie/user

http://www.procurement.ie/

37

3.9 SUMMARY OUTLINE OF TENDER PROCESS AT LIT

1. Budget Holder Identifies: A Requirement B Funding source C Value of Contract D Contract Period

Ref P.38

2. Budget Holder identifies Tender Procedure that must be used and Timescales required completing the Tender Process Ref: P.39

3. Budget Holder obtains Approval from Finance Office Ref: P. 40 & App. 1

4. Budget Holder obtains approval from Sec/FC Office to commence tender process Ref: P. 40 & App.1

5. Sec/FC Office compiles RFT Ref: P.42

6. Tender Deadline is agreed Ref: P.43

7. Tender Notice is Drafted & Published by Sec/FC Office on www.etenders.gov.ie Ref P.43

9. Receipt & Opening of Tenders Ref P.46 & App. 4

10. Evaluation of Tenders Ref P.47, Section 4 & App. 5

13. Award of Contract Ref P. 49 & App 1

8. Budget Holder responds to Tender Queries in conjunction with Sec/FC Office Ref P.46

11. Clarification of Tenders Ref P.48

12. Notifying Tenderers Ref P.49

14. Debriefing of Unsuccessful Tenderers Ref P.50

15. Arrange Signing of Contract Ref P.50

16. Supplier Set-Up & Raising of P.O. Ref P.51 & App. 3

17. Maintenance of Records. Ref P. 52

http://www.etenders.gov.ie/

38

93.9 .93 3.10.3.10 9

1. BUDGET HOLDER IDENTIFIES REQUIREMENT, FUNDING SOURCE,

VALUE OF CONTRACT & CONTRACT PERIOD

A. IDENTIFY THE NEED Before starting any procurement process, it is important to establish whether it is essential to purchase.

Is there a clear business need for the product or service?

The procurement should be essential for the conduct of normal business or to improve performance. Stating that the need for the procurement „is a good idea‟ is not a sufficient business case. Justification must be provided by the relevant Budget Holder.

B. SECURING APPROVALS AND FUNDING

Once a realistic estimate of cost is available the Finance Manager should be requested to approve the expenditure. This must be done by obtaining the relevant signature on the Pre-Tender Form (See Appendix1) C. ESTIMATING VALUE OF CONTRACT (i) A realistic estimate of all phases of the service or product is essential as this will influence the procurement procedure to be followed and is important for budgeting purposes.

(ii) Prepare a realistic estimate of all phases of the service or product.

(iii)Exclude VAT

(iv)Take the total value over the period of the contract, i.e. a 3-year contract is the annual value x 3.

(v)Contracts/purchases should not be split to avoid the rules and similar purchases should be aggregated together to consider total value over a given period

(vi)Determine whether the estimate (exclusive of VAT) is over the relevant EU

procurement threshold.

D. CONTRACT PERIOD Contracts at LIT are normally of one-year duration or for a specific purpose. However, longer contracts may be appropriate for regular, ongoing requirements. Re-tendering should commence in sufficient time to ensure that a new contract is in place when required. Re-tendering of suppliers must be done annually unless otherwise authorized. A contract may be awarded for say 1 year with the option of extending it for up to 2 further years. The Request for Tender will indicate the length of the contract.

3.10 Detailed Information for Budget Holders 3.11 Identifying requirement, funding, value and period

39

3.12 FLOWCHART OUTLINING SUMMARY OF NORMAL TENDER PROCEDURES & TIMESCALES REQUIRED

>

€5000K

What is the Value of

Contract?

OJEU Tender

€25K-

€200K

OJEU Tender

>€200K

National Tender

National Tender

Is this a contract for Services/Supplies or a

Works Contract?

Works Contract Services or Supply Contract

What is the Value of

Contract?

€50K-

€5000K

Open Procedure

Open or Restricted Procedure


Open Procedure



What is the Period of

Contract?

What is the

Timescale for this

Contract?

OJEU Open Timescales

52 Days or 45 days if documents sent electronically 40 if documents downloadable

€25K

to

€125K

€125K

to

€200K

Greater

than

€200K

€50K

to

€250K

€250K

to

€5000K

Greater

than

€5000K

OJEU Restricted Timescales

1. Expressions of Interest 37 Days for (Reduction to 30 days if published online) 2. Receipt of Tenders 40 Days (Reduction to 35 Days if documents downloadable online)

National Open

Timescales 21 to 28 Days

National Restricted Timescales

1. Expressions of Interest 21 Days 2. Receipt of Tenders 21 to 28 Days

40

OBTAINING APPROVAL FROM FINANCE The Budget Holder must complete the Pre-Tender section of the Budget Holder Sign-Off Form. See Appendix 1 of this document.

OBTAINING APPROVAL FROM SECRETARY/FINANCIAL CONTROLLER‟S OFFICE TO COMMENCE THE TENDER PROCESS INFORMATION REQUIRED TO FACILITATE COMPLETION OF „PRE TENDER FORM‟

(Appendix 1) (REF: APPENDIX 1: BUDGET HOLDER SIGNOFF FORM):

A. Scope of Project: The scope of the project, the objectives to be achieved together with a general outline of the specification, including tasks to be performed, skills required, expected time scales, etc.

B. Specification: Once the need for, and what is needed from, a supplier or service provider has been established, the specification of requirements needs to be developed by the relevant budget holder.

Challenge any previous specification written and assess if

the same result could be achievable in a better or more cost effective way.

Base the specifications on the needs identified in the business case.

Ensure that the specifications are clear and comprehensive but not discriminatory (use generic technical specification and avoid proprietary brand names). If it is essential to quote brand names etc, the words “or equivalent” must be included with the reference. Specifications should be drawn up where possible in terms of performance and functional characteristics.

Ensure that the specifications present the optimum combination of whole-life-costs and/or price, where appropriate, and quality (or fitness for purpose) to meet our requirements.

C. Selection Criteria: The purpose of selection criteria is to assess an organisation‟s competency

41

and capability for being considered for a tender process, i.e. in the Open procedure, whether to consider their tender and in the Restricted procedure, whether they are competent to be included on a tender list. Please refer to P. 52-53 of this document for further details.

D. Lots: Number of proposed lots that apply to the contract, if applicable.

E. Tender Contact Details: A contact name, number and e-mail address at the Institute must be supplied in case of queries. Responses to all queries should be issued simultaneously to all known tenderers or interested parties and copied to the Secretary/Financial Controller‟s Office.

F. Award criteria , Sub-Criteria, Related Rules and relevant

weightings: These criteria will provide the basis on which the Cross functional evaluation Team for the tender in question will allocate points and award the contract. Any rules that apply to these criteria must also be provided: (eg. Tenders must achieve a minimum of 60 % under suitability for purpose) To ensure transparency and objectivity, all the criteria: both Selection Criteria and Award Criteria against which each tender will be assessed should be listed in the „Invitation to Tender‟ Document. The weightings to be applied to the Award Criteria must also be listed. Please note that that Selection Criteria and Award Criteria must be completely separate and definable lists within the tender and under no circumstances can selection criteria be duplicated in the award criteria.

G. Note re Budget Available for the Tender Sometimes it will be necessary to give an indication of the budget available for a project. If this is the case, it is recommended that a budget range is provided. In other cases, better value for money may be obtained if no indication of budget is given on the „Invitation to Tender Document‟. The decision whether to indicate the budget on the „Invitation to Tender Document‟ will be made in consultation with the Finance office and the Secretary/Financial Controller.

Where the budget for a project is specified on the „Invitation to Tender Document‟, only submissions which are within the budget figure will be eligible to be assessed under the MEAT system. Cost will be one of the criteria used in MEAT in all instances.

42

5. SECRETARY/FINANCIAL CONTROLLER‟S OFFICE APPROVES COMMENCEMENT OF TENDER AND COMPILES REQUEST FOR TENDER

A. Approve Commencement of Tender Process by signing Pre-Tender Section of Budget Holder Sign-Off Form Approval for commencement of Tender Process must be given by the Secretary/Financial Controller once Budget Sign-Off Form (Appendix 1) has been completely satisfactorily, signed and returned by the Budget Holder. Note: all information required on relevant pages of the Budget Holder Sign-Off Form must be provided by the budget holder before approval can take place

B. Drafting of RFT (Request For Tender) Documents. All requests for tender documents should cover the following minimal requirements:

Introduction about the organisation proposing to award the contract. Specification of key requirement including details of procurement, after-sales,

maintenance, etc, where relevant. Delivery period or duration of contract Closing date for receipt of tender Instructions to tenderers re:

Clarification Requests and to whom they should be addressed Number of copies of tender required Tender Submission Requirements: via hardcopy or electronic postbox Site Visits Opening & Evaluation of Tenders Award of Contract Conditions Applying to Tender to include:

Invoicing and Payment terms Insurance requirements, if any Freedom of Information

Declaration of Clearance ie that suppliers have not been convicted of a number of offences- Template held in Sec/FC Office)

Form of Tender ie TCC and that prices shall not increase et-template held in sec/fc office)

Tender Return Label (Where Applicable). This will not be required if the post-box facility available at www.etenders.irlgov.ie is the only option being used.

Any relevant appendices Please refer to Section 3.28 for details regarding Tender Documents for Works Contracts

3.13 Procurement Office Compiles RFT


43

6. TENDER DEADLINE IS AGREED Tender Deadline: The Sec/FC Office and the Budget Holder agree a final date and time for receipt of tenders ensuring the necessary timelines have been complied with.

7. TENDER NOTICE IS DRAFTED & PUBLISHED BY SEC/FC OFFICE ON WWW.ETENDERS.IRLGOV.IE

PROCEDURE FOR CREATING A NOTICE FOR A NATIONAL TENDER ON ETENDERS WEBSITE: WWW.ETENDERS.IRLGOV.IE

A. Working Title of Tender. Under Document type click website Notice option

(Non OJEU Notice.

B. Choose Invitation to Tender.

C. Choose type of Contract- Service, Supply or Works.

D. Choose Procedure Type- Open or Restricted.

E. Confirm the Notice.

F. Enter Contracting Authorities Address.

G. Enter Address and contact from which documents can be obtained.

H. Enter Address and contact from which documents can be returned.

I. Enter Contract title and reference number if applicable.

J. Enter County (s) where goods or services will be delivered.

K. Enter Commodity Coding- (Min 1) that refer to goods /services being

procured.

L. Enter description of contract.

M. Enter scope of contract.

N. Enter deadline for receipt of tenders.

O. Enter submission language that you require tenders to be received.

3.14 TENDER DEADLINE

3.15 TENDER NOTICES ON E-TENDERS


44

P. Enter conditions of participation or advise refer to rft document attached to

notice

Q. Enter additional information.

R. Enter logos.

S. Click yes or no re construction reform question.

T. Click Noted Interest list.

U. Click if using post-box, or Q & A function.

V. Click if additional documents are being uploaded. Upload document with name

and attach to notice.

W. Click which e-tenders users will have access to noted interests.

X. Preview the notice and make any amendments. You can leave in workspace

and publish later if you wish.

Please note that e-tenders regularly update their website to include new steps or add variations to existing ones.

PROCEDURE FOR CREATING A NOTICE FOR AN OJEU TENDER ON ETENDERS WEBSITE: WWW.ETENDERS.IRLGOV.IE

A. Working Title of Tender. Under Document type click official journal notice.

B. Choose type of notice from list ie Contract notice will allow you to choose from

services, supply or works.

C. Choose Procedure Type- Open, restricted, negotiated competitive dialogue or

award.

D. Flow chart timescales indicate length of time you must publish notice.

E. Confirm the Notice.

F. Enter Contracting Authorities Name Address.

G. Enter Address and contact for additional information.

H. Enter Address and contact from which documents can be obtained.

I. Enter address and contact for return documents.

J. Enter type of contracting authority.

K. Indicate if purchasing on behalf of others.

L. Enter Type of contract.

M. Enter county and country of delivery location.


45

N. Enter Contract title and reference number if applicable.

O. Enter if Framework Agreement, a dynamic purchasing contract or a public

contract.

P. Enter CPV that refer to goods /services being procured.

Q. Enter Commodity Coding- (Min 1) that refer to goods /services being procured.

R. Click yes or no if covered by GPA.

S. Click yes or no if divided into lots.

T. Click Yes or no if variants are accepted.

U. Enter scope of contract.

V. Enter if options will be used. - Yes or no.

W. Enter deadline for receipt of tenders.

X. Enter anticipated award date.

Y. Terms and payment- not mandatory to complete at present on E-tenders

Z. Date and location for opening of tenders-not mandatory to complete at present

on e-tenders.

AA. Person authorised to be present at the opening of the tender- not

mandatory to complete at present on e-tenders.

BB. Enter if electronics options used.

CC. Enter if previous publications refer to this tender.

DD. Enter if finance terms or a legal form to be taken.

EE. Enter conditions of participation or advise refer to rft attached to notice.

FF. Enter personal situations of economic operators or advise refer to rft attached

to notice.

GG. Enter economic and financial capacity or advise refer to rft attached to

notice.

HH. Enter technical capacity or advise refer to rft attached to notice.

II. Click yes or no if reserved contracts.

JJ. Click yes or no if reserved for a specific profession.

KK. Advise if Tenderers are required to state names and qualifications.

LL. Click yes or no for recurrent procurement or timing.

MM. Click yes or no if EU financed project.

46

NN. Additional info section.

OO. Appeals procedure –not mandatory to complete at present on e-tenders.

PP. Construction Procurement reform .Click Yes or NO.

QQ. Click Noted Interest list.

RR. Click if using post-box, or Q & A function.

SS. Click if additional documents are being uploaded. Upload document with

name and attach to notice.

TT. Click which e-tenders users will have access to noted interests.

UU. Preview the notice and make any amendments. You can leave in workspace

and publish later.

Please note that e-tenders regularly update their website to include new steps or add variations to existing ones.

8. BUDGET HOLDER RESPONDS TO TENDER QUERIES IN CONJUNCTION

WITH SEC/FC OFFICE

It is the responsibility of the Budget Holder to nominate a contact for tender queries. This name and contact details of the relevant person will be included in the tender notice at www.etenders.irlgov.ie. It is essential that the Secretary/Financial Controller‟s Office is made aware of all questions posed and answers given as all tenderers must be given the same information. The nominated person must arrange for all responses to queries to be posted on e-tenders so that all tenderers receive the same information.

9. RECEIPT & OPENING OF TENDERS

The Secretary/Financial Controller‟s Office will be the contact given for the return of all Expressions of Interest &/or Tenders prior to the allocated Tender submission deadline. All tenders should be held in a secure area and opened together as soon as possible after the closing date. Instructions to Tenderers for tender distribution and closing dates are published with each tender document. Where the option of a hardcopy of the tender is accepted, the tender should be dated and timed upon arrival to the Institute. Alternative electronic arrangements ie etenders postbox may be in place also.

The following Procedures must be strictly adhered to and apply to both hardcopy tender submissions and tenders submitted via electronic postbox :

A. Any tenders received after the closing time for receipt of tenders will not be

accepted

3.16 RESPONSE TO TENDER QUERIES

3.17 RECEIPT AND OPENING OF TENDERS

47

B. The Caretakers office and Reception should be notified of the expectation of receipt of tenders in advance of the “Tender Due Date” and of the process to be followed.

C. All tenders should be opened together as soon as possible after the designated time and date set for receipt of tenders.

D. Tender documents are dated and initialled when received and left unopened until the tender due date.

E. Tenders are opened together on or after the tender due date in the presence of at least two staff members, one of whom should be a member of the Executive and Management Group. The tender opening must be documented on the Tender Opening Record sheet and signed by those in attendance. See Appendix 4 for sample tender Opening Record Sheet. This documentation must be retained in the Secretary/Financial Controllers Office.

F. The envelope must remain on file with the tender documents.

G. One person, who is unconnected with a tender, must be involved in the tender opening process.

H. No tenders should be opened in advance, nor should information in relation to any tender be passed onto others.

I. In the case of electronic post-box submissions: the post-box is unlocked, submissions are downloaded and printed off in the presence of at least one other member of the cross functional evaluation team and held securely in the Secretary/Financial Controllers Office until opening takes place.

10. EVALUATION OF TENDERS EVALUATION TEAM/CROSS FUNCTIONAL TEAM AND EVALUATION PROCEDURE

A. When tenders have been received they should be evaluated by the members

of the Evaluation Team on the basis of the specification issued and the award criteria denoted in the Instructions to Tenderers. It is always recommended to have at least 4 people involved in the larger contracts.

B. The award criteria stated in the tender document must be used. The best tender emerging from the process is the successful tender.

C. Any negotiation with tenderers which is likely to distort competition and

particularly on price shall be ruled out.

D. A Cross Functional Team must be set up for each Tender undertaken. This team should consist of at least 1 member of Executive/ management Team, the Procurement Officer, at least one evaluator competent in the discipline under question and one person unconnected to the tendering process.

E. Tenders are evaluated based on the award criteria and a successful tender is

3.18 EVALUATION OF TENDERS

48

identified. As indicated in the policy the evaluation criteria and weighting must be agreed prior to advertising the tender and subsequently adhered to in the evaluation process.

F. Evaluation of offers, based on the scoring mechanism, must take account of all relevant costs relating to operational needs, acquisition, servicing, performance and disposal. While there is no obligation to accept the lowest quotation, rationale for this decision must be put in writing and recorded on the Purchase File. Evaluation of offers must be made by a competent team assembled for the purpose.

G. A system of evaluation must be in place, i.e. documented in writing and retained on the tender file, before tenders are opened and considered. This system must list all the criteria upon which the tenders will be assessed (as already listed in the „Invitation to Tender Document‟). The percentage allocated to each individual criterion must also be clearly set out.

H. A completed evaluation scoring must be completed and signed during the evaluation process. The original scoring sheets must be returned to the Secretary Financial Controllers Office.

I. In assessing tenders, where the cost is deemed unreasonable in the context of the available budget, a tender may be eliminated from the competition following consultation with the Secretary/Financial Controller. Only tenders which are considered reasonable from a cost perspective will be MEAT assessed.

J. A Tender Evaluation Form completed and signed should be presented with the tender documents and the MEAT analysis to the Secretary/Financial Controller for approval. The Secretary/Financial Controller or his/her nominee must sign off on all tenders prior to awarding the contract.

K. See Appendix 5 Sample tender evaluation sheet and some guidelines. Any terms published in the RFT must be adhered to.

11. CLARIFICATION OF TENDERS

Additional information may be sought from tenderers in clarifying submitted tenders.In doing so LIT must ensure that any clarification of tenders does not result in substantive alterations to bids after the deadline for submission has passed. LIT must also ensure copies of any clarifications received are placed on relevant file. Any additional information requested and given to one tenderer must be provided to all tenderers.

3.19 CLARIFICATION OF TENDERS

49

12. NOTIFYING TENDERERS

Once the evaluation documentation is approved & signed by the Secretary/Financial Controller for approval, letter(s) of intent and regret letters are issued. A Letter of Intent to Award a Contract is then issued by the Secretary/Financial Controllers Office or the Procurement Officer to the successful tenderer outlining the terms of appointment and any information requested as per the terms and conditions of the tender.

The Secretary Financial Controller Office or the Procurement Officer issues Regret letters to all unsuccessful Tenderers. If unsuccessful companies seek information on why their tender was not successful they should be offered information on where their tender fell down in relation to the award criteria and the relative merits of the winning tender. When the contract is of a European value, there is a requirement to issue the regret letters and a letter of intent to award a contract (in 16 days) on the same day. You cannot conclude agreement on a contract with the successful tenderer(s) until the 16 days have elapsed. (Refer also to Section 3.21

Details of the successful tenderer, issue dates of success & regret letters and Contract Commencement date (where applicable) are signed off by the Secretary Financial controller or Procurement Officer.

13. AWARD OF CONTRACT

National Procedures In national procedures, when the winner is chosen a letter of award must be sent to the successful tenderer and regret letters sent to the unsuccessful tenderers.

European Procedures In European procedures, the standstill period begins on the day after the day on which each tenderer and candidate concerned is sent a notice, of the outcome of his or her tender or application. The duration of the standstill period must be at least: Standstill Periods as per RemediesDirectivehttp://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:335:0031:01:EN:HTML The standstill period applies to framework agreements also.

(a) 14 calendar days, if the notice is sent by fax or electronic means, or (b) 16 calendar days if a notice is sent by any other means

It is LIT‟s policy to issue the letter of intent to the successful tenderer and the letter of regret to the unsuccessful tenderer on the same day.

3.20 NOTIFYING TENDERS

3.21 AWARD OF CONTRACT

http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:335:0031:01:EN:HTML


50

Notices to unsuccessful Tenderers and candidates For EU Value Tenders (to include Framework agreements) the Remedies Directive outlines information that must be supplied in letters to unsuccessful Tenderers including the name of the winning Tenderers or those admitted to a framework. A copy of the Remedies directive is available from the Secretary/Financial Controllers Office. See also link below Remedies directive http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:335:0031:01:EN:HTML

Care must be taken that Tenderers are given as much information permissible in the letter under the Remedies Directive and prompt responses are given to debriefing requests

Award Notices Award notices are only required for European value contracts. For contracts above the EU thresholds, we are required to publish certain information in the OJEU on contracts awarded within 48 days of the award on www.etenders.gov.ie. For contracts below EU thresholds, we are encouraged to publish a notice on the etenders website, to aid the transparency of the procurement process (and, possibly, reduce or eliminate enquiries from non-participants about the award of a contract) and to facilitate the compilation of statistical information required by the EU Commission. This notice informs the market about the name of the winning tender, the number of tenders, etc.

14. DEBRIEFING OF UNSUCCESSFUL TENDERERS LIT offers unsuccessful tenderers debriefing in the regret letters issued. In the debriefing, LIT provide an objective assessment of the comparative strengths and weaknesses of the unsuccessful tender. In doing so LIT gives due regard to commercial sensitivity and the need to avoid compromising the rights or competitive situation of other tenderers. Remedies Directive

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:335:0031:01:EN:HTML


15. ARRANGE SIGNING OF CONTRACT THE CONTRACT DOCUMENT The contract should be awarded to the supplier or service provider that is best able to fulfil our requirements (selected in accordance with the award criteria), Drafting of any contracts must be done in conjunction with the Secretary/Financial Controllers Office. Managing contracts Once a contract or purchase order has been issued, it is incumbent on the relevant functional manager of LIT to ensure that the supplies, works or service

3.22 DEBRIEFING

3.23 SIGNING OF CONTRACT





51

are delivered in accordance with the terms of the tender and the prices quoted. This will be subject to regular review by the finance department. If companies fail to meet the requirements they should be contacted immediately and a process of improvement put in place, together with the maintenance of a full written record of all correspondence with/from the supplier.

Extending Contracts Extending contracts outside the scope of that originally advertised is not permitted. However, from time to time, due to delays in renewing contracts there may be no choice but to afford a brief extension, which should be approved by the Secretary/Financial Controller. The terms of any extension should be agreed prior to its commencement.

Additional Notes on Contracts

A. Notification to retain withholding tax must be given to the Finance Office if the service is of a professional nature.

B. Notification to account for VAT must be given to the Finance Office for foreign

purchases.

C. Notification to account for RCT must be given to the Finance Office for works contracts.

D. Acceptance/ non-acceptance must be confirmed in writing and copies of

letters, proposals, and analysis kept on the tender file.

E. Contracts are normally of one-year duration or for a specific purpose. However, longer contracts may be appropriate for regular, ongoing requirements. Re-tendering should commence in sufficient time to ensure that a new contract is in place when required. Re-tendering of suppliers must be done annually unless otherwise authorized.

16. SUPPLIER SET-UP , TAX CLEARANCE CERTIFICATES & RAISING OF P.O. Once the current Tax Clearance Certificate and completed supplier form have been received, the Budget Holder signs the POST TENDER EVALUATION STAGE FORM. This must be completed by the budget holder and returned it to the Secretary Financial Controllers Office/ Procurement Officer.

All contracts awarded through the tender process at LIT are subject to the provision of a current tax Clearance Certificate. For purchases below the tender threshold, a current Tax Clearance Certificate must be provided to LIT on submission of an invoice, where annual value of supplies/services provided exceed €10,000.00. It is the suppliers responsibility to renew the certificate each year.

RAISING THE PURCHASE ORDER The Budget holder must ensure all outstanding information is passed to the Secretary/Financial Controller Office for the tender file. Only, once all information is collected, can a Purchase Order be raised. The Budget Holder must liaise with the Sec/Fc Office during this stage also to ensure that full compliance of terms of the tender are adhered to.

3.24 SUPPLIER SET UP, TCC AND PURCHASE ORDER

52

17. MAINTENANCE OF RECORDS

All staff members should be aware that the auditors of the Institute and the staff of the Comptroller and Auditor General‟s office have full, free and unrestricted access to all procurement records within the Institute. Members of the Executive and Senior Management Group should ensure that complete records are maintained in their area of responsibility and that they are available for inspection at all times.

3.26 TYPES OF TENDERING PROCEDURES & RELATED TIMESCALES The decision on what Tender Procedure to be used should be made by the Budget Holder in conjunction with the Secretary/Financial Controller‟s Office. There are four procedures available. In all cases full records must be retained for management and audit purposes.

(i) OPEN PROCEDURE

Under Circular 10/10: Facilitating SME Participation in Public Procurement it is stated that new arrangements are being introduced whereby advertised contracts below a threshold of €125k for supplies & general services and contracts below €250k for works & related services must be awarded under an open procedure. This is a single stage approach where tender documents are made available to anyone who wishes to apply for them. Tender documents must be available at time of publishing the notice on www.eTenders.irlgov.ie and can be made available on that website or on request from the Institute. The Request for Tender must contain a list of Selection Criteria: minimum financial and technical capacity requirements particularly previous experience, as well as a separate list of Award criteria and related weightings. Only those tenderers meeting the minimum financial and technical requirements are entitled to pass the selection stage and have their tender evaluated under the stated award criteria.

Note: Any criteria that is used as a selection criteria cannot be used again as an award criteria.

Selection Criteria (also known as Financial and Technical Capacity)

Circular 10/10 issued by the Department of Finance outlines general rules and guidance in relation to selection criteria http://www.etenders.gov.ie/guides/Guide_Download.aspx?id=2964 The purpose of selection criteria is to assess an organisation‟s competency and capability for being considered for a tender process, i.e. in the Open procedure, whether to consider their tender and in the Restricted procedure, whether they are competent to be included on a tender list. LIT are required to outline the rules associated with the selection criteria. It is up to

3.25 MAINTENANCE OF RECORDS

http://www.etenders.gov.ie/guides/Guide_Download.aspx?id=2964

53

the LIT Budget Holder in conjunction with the Secretary/Financial Controller‟s Office to set the selection criteria and rules relevant to the contract in question. Any capacity levels that are set by LIT must be relevant and proportionate to the circumstances of the contract. To the fullest possible extent LIT should allow tenderers, particularly in relation to contracts below the EU Threshold, at the time of tendering only to DECLARE that they have relevant and proportionate capacity to provide the required supplies or to carry out the required services. In such cases, LIT should only seek verification or evidence of such capacity in the event of a tenderer being shortlisted or coming under consideration for the award of the contract. LIT should be flexible in the type of proof of financial capacity it accepts from potential tenderers particularly when looking at submissions from small and startup companies eg. accepting guarantees from parent companies or third parties. If using the Open Procedure the tender document should address the company‟s financial and technical competence to be considered for the contract. LIT may seek information on all, any or none of the following (depending on the complexity of the contract), in addition to anything specific to the contract in question:

Evidence of turnover for the past 3 years o Example of Rule: Must demonstrate a turnover in excess of € (usually

½ to 3 times annualised value of contract).

Details of relevant insurance (i.e. professional indemnity for consultants, and if applicable, employers and public liability).

o Example of Rule: Tenderers must declare that they can obtain such cover but should not be required to have it in place at the time of tendering

Details of organisation including manpower, skills, experience and summary

CVs of key personnel (if applicable); o Example of Rule: Must demonstrate a certain level of manpower / skills

– (please state numbers or skills required)

Details of previous contracts of a similar nature including details of client, description of contract, approx. value, delivery dates, etc.

o Example of Rule: Must demonstrate previous experience of similar contracts of a value exceeding €

Details of technical resources available.

o Example of Rule: Must demonstrate X machines, etc.

Details of health and safety policy and record. o Example of Rule: Must demonstrate a good track record in health &

safety

Details of quality assurance systems in place, if any. o Example of Rule: Must demonstrate an understanding of quality

requirements or compliance with a recognised quality standard

54

Open Procedure Timescales

Below Threshold For below EU tenders the normal timescale should be 21-28 days from posting tender document to receiving tender response. European Threshold and Above For a European tender the normal timescale should be 52 days (45 days if sent via “e” sender or 40 days if tender documents available via www.etenders.gov.ie or simap.eu.int) from date of despatch of the call for competition to the OJEU to receiving tender response. Note re Reduction of Timescales If the notice is sent electronically the timescale can be shortened by 7 days. If the tender documents are made available via the Internet a further 5 days can be taken off the timescales, i.e. a reduction of a total of 12 days in the OPEN procedure.

(ii) RESTRICTED PROCEDURE

This is a two-stage approach, where applications are invited (expressions of interest) from companies asking them to provide details of financial and technical capacity, or asking them to complete a pre-qualification questionnaire. The responses are evaluated and a tender list of at least 5 (if there are 5 suitable applicants) is selected and tender documents are issued to the 5 companies. 3 to 4 weeks needs to be allowed for the tenderer to return the documentation once it has been issued (Depending on how complex the contract is) This timescale may be reduced in urgent cases only to 10 Days provided appropriate approval is sought from the Director of Corporate Affairs. Any short-listing procedure must be on the basis of objective and non-discriminatory criteria or rules made known to candidates. We cannot simply select on the basis of those with highest qualification levels. One possibility is to use random selection (such as drawing lots) publicised in advance to ensure equal treatment. The range of candidates to be called must be identified in the notice, tendering request letters and the RFT issued.

Restricted Procedure Timescales

Below threshold For a national tender the normal timescale for receiving applications should be 21 days, plus 21-28 days for receipt of tenders. European threshold and above For a European tender the normal timescale should be 37 days (30 days if sent via “e” sender) for receipt of expressions of interest following despatch of call for competition to the OJEU and 40 days (35 days if tender documents available via Internet) for receipt of tenders petition to the OJEU to receiving tender response. Note re Reduction of Timescales If the notice is sent electronically the timescale can be shortened by 7 days. If the tender documents are made available via the Internet a further 5 days can be taken off the timescales, i.e. a reduction of a total of 12 days in the Restricted procedure.

Restricted Tender Process If using the Restricted Procedure the financial and technical information outlined under the Open Procedure and appropriate rules would be requested in either: (A) The PreQualification Questionnaire attached to the notice published in the media

http://www.etenders.gov.ie/

http://www.simap.eu.int/

55

and/or the Official Journal of the European Union. Applications (expressions of interest) are evaluated in a fair and objective manner and a tender list drawn up of at least 5 companies (if there are 5) and these invited to tender. It should be emphasised that companies failing to meet the minimum criteria for selection should not be included on a tender list. Nor should any company that has not responded to an expression of interest unless the quota for the required no. of suppliers is not met Successful and unsuccessful candidates must be notified once results of the first stage of the process are known. The Request For Tender will include the specification of requirements and address the award criteria and related weightings to be used.

(III) NEGOTIATED PROCEDURE This is an exceptional procedure, which may be used only in the limited circumstances. This procedure should only be entered into following the approval of the Secretary/Financial Controller. LIT must ensure that the precise circumstances justifying negotiation, as set out in the public sector Directive, exist before deciding on the use of this procedure. It should be noted that definitions of „exceptions‟ and „urgency‟ are strictly interpreted by the Commission and the Courts. Factors giving rise to urgency must be unforeseeable and outside the control of the contracting authority. Where one of these exemptions is invoked, the contracting authority must be able to justify the use of the exemption.

A Negotiated Procedure will normally consist of the following steps:

1. Select qualified suppliers

2. Notice dispatched to OJEC for Publication

3. Notice published in OJEC

4. Negotiate with qualified suppliers

5. Contract Awarded

6. Dispatch Contract Award notice to OJEC for publication.

The following timescales must be adhered to:

a. There must be no less than 37 days between step 1 and step 3.

b. There must be no more than 48 days between step 5 and step 6.

(IV) COMPETITIVE DIALOGUE This is a procedure designed to provide more flexibility in the tendering process for more complex contracts where requirements cannot be clearly defined. LIT must advertise its requirements and enter dialogue with interested parties, (pre – qualified on the same basis as for restricted procedure described). Through the process of dialogue with a range of candidates, LIT may identify arrangements or solutions which meet its requirements.

56

Provided its intention is indicated in the contract notice or in descriptive documents supplied to candidates, LIT may provide for the procedure to take place in successive stages in order to reduce the number of solutions or proposals being discussed. The reduction must be achieved by reference to the award criteria for the contract. In conducting the dialogue, LIT must ensure equality of treatment and respect for the intellectual property rights of all candidates. When satisfied about the best means of meeting its requirements, the contracting authority must specify them and invite at least three candidates to submit tenders.

Competitive Dialogue Timescales Timescale is as per Restricted Procedure

SHORTENING TIMESCALES

URGENT PROCUREMENTS From time to time organisations will have urgent procurements. However, these should be rare if proper planning is undertaken, particularly at budget preparation time. If they arise, depending on the value of the contract, appropriate approval should be sought to derogate from using the normal tendering procedures. In the European context, an accelerated procedure is available which allows for receipt of expressions of interest in 15 days and receipt of tenders within 10 days.

PIN NOTICES In both National and European process LIT may opt to publish a PIN (Prior Information Notice) which is an advance warning to the market place of forthcoming contracts. In the European process: if the PIN notice is published 52 days prior to the call for competition, then LIT may avail of shortened timescales in the tender process. A PIN Notice is a voluntary notice but under Cicular 10/10: Facilitating SME participation in Public Procurement LIT are strongly encouraged to communicate longterm purchasing plans to the market as early as possible by publishing PINs. In the EU process this is not required unless we want to avail of shortened timescales for receipt of tenders.

3.27 SUPPLIER PANELS AND FRAMEWORK AGREEMENTS

SUPPLIER PANEL Currently under review –not implemented at LIT at Present This is a form of restricted tendering, whereby contract areas are identified which may require multiple tender processes and would benefit from establishing a panel of qualified tenderers. Not to be used where a single contract could be put in place for multiple requirements, only suitable where requirements are different and not capable of being clearly identified. This Panel can be used for Contracts valued at more than €25,000 ex vat But

57

less than EU Thresholds: €200,000

PANELS

DEFINITION For use by public bodies for ongoing requirements

NUMBERS No limit on number to be admitted

VALUE OF CONTRACTS National value contracts only. Below EU threshold

ADVERTISING Advertised on a yearly basis

HOW SUPPLIEERS GAIN ACCESS

Suppliers apply to get on to panel by supplying financial/technical capacity information ( ie questionnaire/selection criteria)

SUPPLIES/SERVICES/WORKS AREAS

Generic areas ie, training

TIMESCALES No closing date

AWARDING CONTRACTS Tenderers sought from at least 5 on the panel( or relevant number according to value of contract) –tenderers slected by (a) application of specific criteria (B) rotation ( C ) random selection ( D) Combination of all three.

NOTIFICATION Must inform all those admitted to panel and all those unsuccessful

DOCUMENTATION Must document everything

A Supplier Panel is established annually for goods and services likely to be tendered for during the forthcoming year (ie likely to exceed €25,000 ex vat over the period of the contract but which do not exceed EU Thresholds) This Panel is established as a result of an annual advertisement via: (A) www.e-tenders.gov.ie and (B) Local & national newspapers An access database is compiled following receipt from interested parties of completed detailed Application Forms The Rules of this Panel are as follows: This Panel is for Supplies/Supply Install or Services where the value exceeds €25,000 ex vat but does not exceed the EU thresholds This Panel must be updated annually following compilation of a list of likely

tenders in the following 12 months by placing advertisements in the papers & on www.etenders.gov.ie.

> A detailed analysis of the categories required must be completed.

> When advertising our Panel on e-tenders, an ordinary site notice will suffice for

categories under the EU Thresholds.

Suppliers who apply in an adhoc way to be included on our Panel during the year need to complete the same application forms etc. in order to be included on the Panel

Using this Panel, we should invite tenders from the appropriate no. of suppliers depending on the value.

At the Tendering stage any suppliers who have not been chosen must be advised that, on this occasion, they have not been successful in getting on our Tender list.

The methods which can be used to determine which candidates are

chosen are as follows: > Applying specific criteria based on information already available or by

requesting further information from those on the panel > Rotation > Random Selection

http://www.e-tenders.gov.ie/

58

> Combination of the above

FRAMEWORK AGREEMENTS

Under this procedure, the traditional system of contract-by-contract tendering can be replaced with an umbrella agreement between LIT, a group of authorities or central purchasing body, and one or more suppliers. The agreement can be in place for up to four years.



DEFINITION For use by public bodies to enable the award of contracts to firm(s) admitted to the framework

NUMBERS Can be limited to one firm only or at least 3 if multiple framework

VALUE OF CONTRACTS Can be used for national and European thresholds

ADVERTISING Up to 4 years-OJEU notice if value over 4 years exceeds EU thresholds

HOW SUPPLIERS GAIN ACCESS

Suppliers admitted to framework under open or restricted procedure.

SUPPLIES/SERVICES/WORKS AREAS

Must define nature of contracts that could be awarded

TIMESCALES As per open and restricted procedure. Once framework established, no additional firms can be considered. For mini tender competitions held among framework members, no rules on timescales for receipt of tenders.

AWARDING CONTRACTS Contracts awarded either on the basis of original tenders submitted or on foot of mini tender competitions between all those admitted to framework

NOTIFICATION Must notify all those admitted to the framework and publish an award notice in the OJEU 16 Day standstill period

DOCUMENTATION Must document everything

At the outset, LIT would place a tender notice on e-tenders website making it clear that a framework agreement is being awarded. The notice should state: - Whether the agreement is with a single supplier or multiple suppliers - The duration of the agreement - The estimated total value and frequency of purchases under the agreement. Suppliers then go through a pre-qualification process. If successful, they are admitted to LIT‟s Framework for the particular supply and/or service.

Where the framework agreement involves multiple suppliers, there are two options. Option 1) If the terms of the framework agreement adequately deal with a specific contract, it can simply be awarded to the supplier who offers the best value. Option 2) If the framework agreement is not sufficiently precise to cater for a specific project, a 'mini-competition' must be held to identify which supplier is most suited to the particular project. All suppliers within the framework agreement who have the relevant expertise are eligible to participate. The terms and conditions of the framework agreement cannot be redefined or

59

substantially modified. A mini-competition can only supplement or refine the terms of the agreement.

LIT will try to ensure that the terms of any framework facilitate the inclusion of smaller enterprises if these can meet requirements or compete for particular lots.

DEPARTMENT OF FINANCE FRAMEWORK AGREEMENTS The Department of Finance currently has Framework Agreements in place for PCs, Notebooks, Colour Laser Printers and Monochrome Printers. The evaluation and award of any contracts arising are the responsibility of the contracting authorities following the holding of a mini-competition with all members of the relevant framework

NATIONAL PROCUREMENT SERVICE FRAMEWORK AGREEMENTS

NPS also have a number of Framework Agreements in place which include Advertising, Printing, Office Requisites, Clothing & Footwear, Uniforms, Janitorial Supplies, and Motor Vehicles & Fuels. www.nps.ie

The evaluation and award of any contracts arising are the responsibility of the contracting authorities following the holding of a mini-competition with all members of the relevant framework

The Department of Finance is responsible for implementing national policy on public

procurement, particularly in relation to construction procurement. The Department’s

website: www.constructionprocurement.gov.ie has been specifically developed to

implement the key outputs of the Government Decision of May 2004 in relation to the

reform of public sector construction procurement.

The main objectives of this reform initiative are:

Cost certainty at tender award stage

Better value for money (VFM), and

More efficient delivery of public works projects

The reform is one of a number of key value for money measures announced by the Minister on 20 October 2005 and has been put in place to help address concerns about the extent of cost overruns (i.e. the increase in project costs between the accepted tender price and the final outturn costs) on public works and construction consultancy contracts, and to eliminate such cost overruns through better planning and greater use of the works contracts and conditions of engagement by means of optimal risk transfer to contractors and consultants who are best placed to manage and control such risks.

The website consists of a Capital Works Management Framework which contains an integrated set of contractual provisions, guidance material, technical templates and procedures which cover all aspects of the delivery process of a public works project from inception to final project delivery and review. The structure of this strategic framework is closely aligned and compliments the Capital Appraisal Guidelines issued by the Department of Finance.

The Capital Works Management Framework is for the use by contracting authorities involved in the expenditure of public funds on construction projects and related

3.28 TENDERING FOR WORKS CONTRACTS

http://www.nps.ie/

60

consultancy services. The use of the framework should result in a more cost effective delivery of public works projects because of the more systematic and detailed approach to, among other things, planning (both initial and detailed), capital budgeting as well as design and construction cost control.

Contact email address : [email protected]

Construction Procurement Reform Circulars

Circular 10/10 - Facilitating SME Participation in Public Procurement

Circular 10/10: The Department of Finance Circular 10/10, issued on 13

August 2010, sets out positive measures that contracting authorities are

required to take to promote SME involvement in a manner that is consistent

with the principles and rules of the existing public procurement regulatory

regime.

Circular 07/10 - Construction Contracts and Conditions of Engagement

Approval

Circular 07/10: The Department of Finance Circular 7/10, issued on 3 June

2010, should be read in conjunction with the Department‟s Circulars 40/02,

33/06, 04/08 & 06/10. Circular 7/10 deals with the approval of construction

contracts and conditions of engagement for publicly funded projects which

are not one of the standard forms included in the Capital Works Management

Framework.

Circular 06/10 - The New Capital Works Management Framework

Circular 06/10: The Department of Finance Circular 06/10, issued on 5 May

2010, in relation to the CWMF should be read in conjunction with the

Department‟s Circulars 33/06 & 04/08. Circular 06/10 relates to the

introduction of further Government Reform Measures in connection with

Public Sector Construction Procurement.

Circular 04/08 - Construction Procurement Reform

Circular 04/08: Additional measures to the revised of Arrangements for the

procurement of public works projects and for the engagement and payment

of construction consultants


Circular 33/06: Revision of Arrangements for the procurement of public

works projects and for the engagement and payment of construction

consultants

mailto:[email protected]?Subject=Construction%20Procurement%20Query

http://www.constructionprocurement.gov.ie/CWMFDocs/Circulars/Circ1010.pdf






61


Circular 40/02: Sets out revised reporting procedures in relation to Public

Sector contracts and the role of the GCC which is separated into 2 distinct

entities, 1) dealing with construction procurement and 2) dealing with non-

construction supplies and services procurement.

Capital Works Management Framework The Capital Works Management Framework (CWMF) is a structure that has been developed to deliver the Government‟s objectives in relation to public sector construction procurement reform. It consists of a suite of best practice guidance, standard contracts and generic template documents that form the four pillars that support the Framework, as shown below.

Note: Access to the four Pillars illustrated below is by way of links in the navigation tool on the left hand side of screen at http://www.constructionprocurement.gov.ie/CWMF.aspx

1 Capital Works Management Framework

3.29 EVALUATION & AWARD CRITERIA All contracts irrespective of value must indicate a set of award criteria. The choice is either lowest price or most economically advantageous tender (MEAT) in terms of specified criteria. If using MEAT the criteria will include cost and other relevant factors. In European tendering the weighting and scoring mechanism for award criteria must be advised to the market in advance.

An example of these criteria is:

Delivery time or period for completion; X%

Reliability and continuity of supply; X%

Quality of product or service offered; X%

Methodology of approach; X%

Quality and level of resources offered; X%

Ultimate cost; X%

Pillar 1

Public Works

Contracts

Pillar 2

Standard

Terms of

Engagement

Pillar 3

Cost

Planning &

Control/Suit

ability

Assessment

Pillar 4

Guidance

Notes &

Glossary


http://www.constructionprocurement.gov.ie/CWMF.aspx

62

It is up to LIT to select the appropriate weighting for each criterion. LIT also give appropriate weightings to Award Criteria for National Tendering. The rule is that any criterion relevant to the contract in question may be chosen provided that tenderers have been informed in advance of the criteria. No new criteria can be introduced once the tenders have been received. Any criteria listed as selection criteria must not be used as award criteria. Prior to the issue of the RFT, LIT should ensure that it requests all relevant information from tenderers to facilitate evaluation of actual tenders received in terms of all of the award criteria listed. It‟s also possible to apply environmental or social criteria in the evaluation process (i.e., energy usage, end of life environmental value, employment of non typical work force, protection of minors, etc.). These should be included as part of the evaluation criteria. Where these are considered as part of the evaluation process, suppliers and tenderers must be notified in advance.

MEAT MEAT stands for Most Economically Advantageous Tender and is a system of evaluation of tenders, which is objective and transparent. MEAT is recommended as a method of evaluating tenders under paragraph 5.14 of Public Procurement - 1994 edition. It is also strongly recommended in the circular letter issued by the Department of Finance on 31 March 1999, pursuant to the Report on value for Money Examination of Consultancies in the Civil Service carried out by the Comptroller and Auditor General. Application of M.E.A.T. involves the conversion of qualitative criteria to economic terms. Qualitative criteria selected must always be relevant and proportionate to the contract in question. Criteria under MEAT could include: delivery; period for completion; after sales service; technical merit; ultimate cost; running costs; etc. Value for Money Value for money must be the overriding factor in assessing and awarding tender contracts. The price or cost should therefore always have a significant weighting. Listing Award Criteria for the purpose of identifying the most economically advantageous valid tenders. allows the selection of the bid that represents the best Value for Money (VfM), rather than lowest price alone. The best VfM Bid will be that which is judged to offer the optimum combination of service capability, quality and bid price, within affordability parameters.

3.30 CORPORATE PROCUREMENT PLAN

Currently under review –not implemented at LIT at Present As part of the National Public Procurement Policy Unit (NPPPU‟s) overall aim of reforming procurement policy under the National Procurement Policy Framework, LIT which is subject to this policy are expected to: (A) include procurement management reform as one of the key strategic priorities

and aims as part of their Statements of Strategy or other key strategic documents;

(B) develop an appropriate corporate procurement plan based on the procurement management reform objectives; and

63

(C) arising from the annual corporate procurement plan develop a plan (s) for significant purchase(s).

Aim Of Corporate Procurement Plan The corporate procurement plan addresses the policy and practical approach to be adopted by LIT. The annual plan should set objectives that seek to improve the way the organisation acquires and pays for goods and services. As a first step the plan should examine past purchasing activities and procedures and develop ways of improving performance in the year ahead. The plan needs to set targets for improvements in the purchase of goods and services to measure if appropriate changes in process and procedures have been achieved. The plan also needs to examine the potential for procurement aggregation of commonly used goods and services. There are a number of steps which need to be adopted to facilitate the development of the corporate plan. Further details together with a Template Corporate Procurement Plan are available at http://www.fpp.ie/fppmedia/docs/NATIONAL_PUBLIC_PROCUREMENT_POLICY_FRAMEWORK_V1.pdf It is anticipated that that the Shannon Consortium will assist LIT in the compilation of the Corporate Procurement Plan.

All procurements of a capital nature requires completion of the relevant form before any tender process can commence.

SOLE SUPPLIERS Where it is considered that there is only one supplier capable of providing a product or service, LIT must be capable of justifying not going to competitive tender. If such a case is justifiable it is recommended that the organisation negotiate the terms of a contract with the company in order to ensure value for money. Again, a full written record of such occurrences should be maintained.

SUBCONTRACTING LIT should encourage new businesses particularly to tender for smaller public contracts so that they can establish a track record which will help them progress to competing in time for larger contracts. Encouraging subcontracting is an important aspect of securing the best solution for LIT. The standard payment term for the Institute is 30 days net. The Institute is required to comply with the Late Payments in Commercial Transactions Regulations 2002.

The procurement of goods electronically (i.e., via the internet) is encouraged but must comply strictly with the Institute‟s procurement procedures, including tax clearance requirements.

CAPITAL EXPENDITURE

3.31 ADDITIONAL INFORMATION

INTERNET PURCHASING TRANSACTIONS

http://www.fpp.ie/fppmedia/docs/NATIONAL_PUBLIC_PROCUREMENT_POLICY_FRAMEWORK_V1.pdf

http://www.fpp.ie/fppmedia/docs/NATIONAL_PUBLIC_PROCUREMENT_POLICY_FRAMEWORK_V1.pdf

64

The Institute‟s purchased materials should be reviewed for opportunities for recycling, reusing, reducing consumption, reducing packaging of products or in purchasing alternative products that have less environmental impact. Purchasers should ensure that suppliers comply with their requirements for recycling, particularly packaging and electrical items (WEEE Regulations2).

Employees may not subscribe to electronic services or other contracts on behalf of LIT unless they have the express authority to do so. Authority for subscriptions including electronic subscriptions such as these rests with the Finance office or the Secretary/Financial Controller and no other LIT employee has the authority to enter into any binding commitment on behalf of the LIT via email or the internet.

Employees may not subscribe to continuous supply contracts such as utility supplies or enter into credit contracts. These must be approved by the Finance office or the Secretary/Financial Controller.

All goods and services purchased by or supplied on behalf of LIT are required to be fully accessible by persons with disabilities. Where this is not practicable or justifiable on cost grounds or would result in an unreasonable delay to the purchase or the delivery of the service, a detailed explanation must be placed on the purchase file. This explanation must also contain details of any steps that need to be taken to overcome the difficulty in supply and the means by which LIT or the supplier will ensure that persons with a disability can avail of the service.

APPRAISAL AND MANAGEMENT OF CAPITAL EXPENDITURE PROPOSALS IN THE PUBLIC SECTOR LIT is committed to applying the Guidelines for the Appraisal and Management of Capital Expenditure Proposals in the Public Sector, as issued by the Department of Finance in February 2005. http://www.finance.gov.ie/viewdoc.asp?DocID=1216&UserLang=GA&StartDate=1+January+2011

2 Waste Electrical & Electronic Equipment Directive 2002/96/EC

OPPORTUNITIES FOR RECYCLING & REDUCED PACKAGING

ELECTRONIC SUBSCRIPTIONS

CONTINUOUS SUPPLY CONTRACTS

ACCESSIBILITY OF GOODS & SERVICES TO DISABLED PERSONS

65

FREEDOM OF INFORMATION ACT

LIT are bound by the Freedom of Information Act; LIT is committed to open government and meeting its legal responsibilities under the FOIA. Accordingly, any information created by or submitted to LIT (including, but not limited to, the information contained in the tender documents, clarification questions and responses, and the minutes of meetings between all or any of the Tenderers).The data may need to be disclosed by LIT in response to a request for information. Any persons may make a request for information at any time before or after Contract signature. LIT may also decide to include certain information in the relevant publication proposal maintained under the FOIA.

In making a submission, each Tenderer (and each Relevant Organisation) therefore acknowledges and accepts that the information contained therein may be disclosed under the FOIA, either without consulting the Tenderer or following consultation with the Tenderer and having considered its views.

Tenderers must clearly identify any information supplied in response to this tender, which they consider to be confidential or commercially sensitive and attach a brief statement of the reasons why, including details of the harm which may result from disclosure and the time period applicable to the sensitivity.

Where it is considered that disclosing that information in response to an FOIA could cause a risk to the procurement process or prejudice the commercial interest of any tenderer, LIT may wish to withhold such information under the FOIA exemption.

However, Tenderers should be aware that even where a Tenderer has indicated that information is commercially sensitive, LIT is responsible for determining at its absolute discretion whether such information is exempt from disclosure under the FOIA or whether or not it must be disclosed.

Tenderers should therefore note that the receipt by LIT of any information marked “confidential” or equivalent does not mean that LIT accepts any duty of confidence by virtue of that marking, and that LIT has the final decision regarding the disclosure of any such information in response to a request for information.

The standard payment term for the Institute is 30 days net. The Institute is required to comply with the Late Payments in Commercial Transactions Regulations 2002.

PAYMENT TERMS

66

Appendix 1

Budget Holder Sign Off Forms for Tenders

67

Budget Holder Sign Off Forms for Tenders

68

Flow Chart-Steps in the tendering Process for Budget Holders........69 Thresholds and Timelines for Tenders.............................................70 Sign Off Form Prior to Commencement of Tender............................73 Sign Off Form after Evaluation of a tender.......................................79

69

OUTLINE OF TENDER PROCESS RESPONSIBILITIES FOR BUDGET HOLDERS UNDER THE OPEN TENDER PROCEDURE

Identify the Need

Complete Pre Tender Form with Budget approval, specification of tender, selection criteria,

award criteria sub criteria and Weightings and any additional information

Seek Approval from Secretary/Financial Controller

Allow Sufficient time for preparation of tender documents and tender submissions. See Timelines

Is the tendering Process Necessary?

Challenge any previous specification

Identify Budget and Funding Source

Identify the Estimated Cost (Excluding Vat) of the required Service/Supply over the

relevant period of the Contract

Deal with tender queries during the tendering process ensuring Sec/FC office is notified of all queries and related responses so same can be sent via e-tenders to

all noted interests. Note: All tenderers must be given same information

At least 1 member of Executive/Management Team to be present. All opening and evaluation documents to be documented and signed by Evaluation team.

Budget Holder Sign-Off Form Post Tender Evaluation Stage to be signed by Secretary/Financial Controller

All tender documents to be returned to Sec/Fc office. Complete Post tender Form

Is the tender above EU Thresholds? See Thresholds

70

Thresholds and Timelines for Tenders Thresholds (exclusive of VAT) above which advertising of contracts in the Official Journal of the EU is obligatory, applicable from 1 January 2012 to 31 December 20133:

Revised public procurement Directives simplify the threshold provisions by abolishing the two

tier system that existed under the former Directives and the Government Procurement

Agreement (GPA) of the World Trade Organisation and by rounding the threshold values.

The main advertising thresholds with effect from 1 January 2012 to 31 December 2013 are as

follows:

Works

Contract Notice €5,000,000 Threshold applies to Government Departments and Offices, Local and Regional Authorities and other public bodies.

Supplies and Services

Contract Notice €200,000 Threshold applies to Local and Regional Authorities and public bodies outside the Utilities sector.

3 Thresholds are revised every two years. Full and up to date thresholds can be checked on the EU public procurement

website http://simap.eu.int .

http://simap.eu.int/

71

Thresholds and Timelines for Tenders (Continued) In order to decide the appropriate methodology for awarding various contracts, LIT uses the following thresholds:


Process Timelines











All goods and services in excess of €125,000 but below €200,000 must go to formal tender (See section on tenders) via national advertisement on the Irish government website www.etenders.irlgov.ie using the open or restricted procedure. The Financial Controllers Office and the Finance Office must be consulted and all documents/specifications must be approved by the finance office/secretary/financial controller‟s office. In all cases only approved users of the etenders system can submit tenders to the site on behalf of the Institute.



OPEN procedure;52 Days, Reduction Available: 45 days if documents sent electronically-no pin 40 days if documents downloadable online Restricted Procedure; 37 Days for Expressions of Interest and 40 Days for receipt of Tenders Reduction Available: 30 Days +35 Days if sent



72

electronically-no pin and if documents downloadable online.

WORKS TENDERS


All works and related services in excess of €50,000 but less than €250,000 must go to formal tender using the Open Procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (eg project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)



All works and related services in excess of €250,000 but less than €5,000,000 must go to formal tender using the Open Procedure or Restricted procedure on the etenders website : www.etenders.irlgov.ie This means contracts for works, contracts for work contractors (eg project supervisor for consultation stage) and contracts for works-related professional services(Professional construction design services)





73

Sign Off Form Prior to Commencement of tender for

Name of Tender /Month Year/Tender Reference

74

Tender Name: _______________________________________________

Tender Reference: ______________________________

Pre Tender Form

Reason for Request for Tender

Signed Budget holder/Head of Function

_________________________________________

_________________________________________

Estimated Contract Value

Contract Period

Budget Available

Funding Source

Approved & Signed by Finance Office

_________________________________________

Tender Information Required

Specification Attached

Yes

List of Selection Criteria Attached Yes

Additional info required Attached Yes

List of Award Criteria, Sub Criteria and Weightings Attached

Yes

Approved & Signed by Budget Holder/Head of Function

______________________________

Approval for commencement of tender Process by Secretary Financial Controller

Signed Secretary/Financial Controller

_______________________________

Date _______________________________

75

Tender Specification

Expand as necessary

Additional Information Required: Please tick appropriate box This tender is required to be advertised as a : Basic Contract Framework Agreement (Ref LIT Purchasing & Tendering Procedures P58/59

Does this tender need to be divided into Lots Y/N If Yes please specify breakdown of Lots

Lot No. Description of Lot This could be any identifiable logical split required to ensure the supply/service is acquired in the most economically advantageous way, ensuring VFM for LIT e.g. By location)

76

Selection Criteria

Examples of possible Technical requirements are outlined below. Budget Holders must outline the technical requirements they feel are necessary for the provision of this supply/and or service. Where there exist criteria that are a prerequisite to the service/supply provision these should be marked as Pass/Fail Criteria. Please note that selection criteria may not be assessed again as award criteria.

Expand as necessary

Technical Requirements Pass/Fail Basis Yes/No

Examples of Technical Requirements - Details of Organization, year of establishment and range of services provided

with particular reference to the subject matter. - Comprehensive information on previous work of a similar nature and scale to

this procurement over the past 3 years. - Information on manpower and skills within your organisation - Details of Key management Personnel - Turnover Levels etc. - Specific Qualifications Required

Additional Information

Additional Information that must be requested as follows:

- Declaration of TCC to be produced by Successful tender within 10 days of a request to do so.

- Declaration of Insurances to be produced by successful tender within 10 days of a request to do so

- Declaration of clearance - Bankers Reference-signed checklist form that will produce within 10 days if

successful

Budget Holders must outline any additional information requirements they feel are necessary to assess the tenderer‟s submission at the selection stage of the process for the provision of this supply/and or service. Some examples are outlined below. Expand as necessary

Examples of Additional Information - Tenderers to advise if sub contracting will apply - Summary Health & Safety Statements - Summary Risk Assessments - Summary Method Statements

77

Award Criteria, Sub Criteria & Weightings In deciding what Award Criteria should apply to the evaluation of this service and/or supply Budget Holders should ensure that any selection criteria already used are not used here again. For each of the Award Criteria agreed, sub criteria where relevant must be identified and noted for each criterion in the schedule below. A schedule outlining the information required must be attached as an appendix to the Request For Tender to facilitate easy evaluation of tender submissions. This will be done by the Secretary/Financial Controllers Office. The weightings for each criterion must also be inserted in the schedule below together with the available points which must total 10000.

Award Criteria

Sub-Criteria Weighting

Available Points

Criteria 1 Sub Criteria 1A

Sub Criteria 1B

Sub Criteria 1C

Criteria 2 (If Required)

Sub Criteria 2A

Sub Criteria 2B

Sub Criteria 2C


Sub Criteria 3A

Sub Criteria 3B

Sub Criteria 3C


Sub Criteria 4A

Sub Criteria 4B

Sub Criteria 4C

Total Points Available

100% 10,000

78

Cross Functional Evaluation Team

The Cross Functional Team responsible for Opening and Evaluation of tenders must consist of at least one member of the Executive Management Team and/or Management Team. A Minimum of two LIT staff members must be present. It is recommended to have at least 4 people involved in the larger contracts. At least one evaluator must be competent in the discipline under question. Also one person unconnected with the tender must be involved in the opening and evaluation of tenders. LIT‟s procurement officer should be involved in the process.

Name of Cross Functional Team Member

Title

79

LIT Tender for Name of Tender

Sign Off Form Post Tender Evaluation Stage

80

For Tender: Name of Tender/Month Year/Tender Reference

Post Tender Evaluation Stage Form

Name of winning Tenderer(s)

Names of Evaluation team

____________________ ____________________

____________________

Evaluation Report Completed and Signed by all Evaluation Team

Signed & Approved Secretary/Financial Controller

Date:

Yes

_________________

Standstill Period adhered to

where relevant

Yes

Offer and Regret Letters Issued by Secretary/ Financial Controller’s office

Yes

Contract Signed where relevant

Yes

Contract Commencement Date

TCC Received Yes

Insurance Details received Yes

Bankers Reference received Yes

Supplier Set Up Form Received and set up on Agresso

Yes

Agresso Code to be used

Purchase Order Issued Yes

Purchase Order Number/s

Signed: Budget Holder

Signed: Sec/Financial Controller or Procurement Officer

_________________ Date:_________

______________________ Date:_________

81

Appendix 2

CHECKLIST: TENDER PROCEDURES FOR LIT BUDGET HOLDERS

82

CHECKLIST: TENDER PROCEDURES FOR LIT BUDGET HOLDERS

Identify the Need

Procedure Steps Procedure Reference ( Where Applicable)

Please Tick when Complete

Identify the need for the service/supply

3.10 & 3.11

Ascertain whether the tendering process is necessary

3.10 & 3.11

If a Tender Process is necessary: commence this process allowing sufficient time for preparation of Tender Documents and Tender Submissions taking the relevant timelines into consideration

3.10 & 3.11

Challenge any previous specification

3.12

Identify Budget & Funding Source

3.10 & 3.11

Identify Contract Period and any possible extensions

3.10 & 3.11

Identify the Contract Value: the estimated cost (excluding vat) of the required service/supply over the relevant period of the contract

3.10 & 3.11

Ascertain whether Tender is above EU Thresholds

3.12

Complete Pre-Tender Form Appendix 1

Seek approval from Finance Office

3.12

Complete all sections relating to Tender Information Required

3.12

Seek approval for Commencement of Tender Process from Secretary/Financial Controller‟s Office

3.12 & 3.13

Provide Sec/FC Office with any details requested to facilitate the Publication of the relevant Tender Notice

Appendix 1, 3.14, 3.15

Deal with Tender Queries during the tender process ensuring Sec/FC Office is notified of all queries & related responses

3.16

83

Procedure Steps (Continued)

Procedure Reference ( Where Applicable)

Please Tick when Complete

Attendance at the Opening of Expressions of Interest (Restricted Procedure only) & or Tenders

3.17

Membership of the Cross Functional Evaluation Team

3.18

Assistance with Evaluation of EOIs (Restricted Procedure only) & or Tenders

3.18

Assist with Clarifications to Tender Submissions

3.19

Sign off of Evaluation Document 3.18

Ensure all Tender Documents are returned to Sec/FCs Office

3.18

Assist with debriefing requests from unsuccessful tenderers

3.22

Assist with compilation of Contract to be issued to successful tenderer

3.23

Ensuring TCC, Insurance Details, Bank Reference & any other relevant outstanding information is received from the Successful Tenderer prior to the issue of the Purchase Order.

3.24 & Appendix 1

Completion & Signature of Post Tender Evaluation section of Budget Sign Off Form.

Appendix 1

Maintain and update Register of Contracts & Expiry Dates with details of the awarded tender to facilitate a timely re-tendering process.

3.25

84

Appendix 3

SUPPLIER SET-UP FORM

85

LIT SUPPLIER SET-UP FORM

COMPANY’S FULL TITLE: ____________________________________________________________

POSTAL ADDRESS: ___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

TELEPHONE NO.:

ACCOUNTS: _________________________ CONTACT NAME: __________________

ACCOUNT’S FAX NO: __________________________________________________________________

EMAIL ADDRESS:

ACCOUNTS: ____________________________________________________________________

DESCRIPTION OF PRODUCT/SERVICE SUPPLIED: __________________________________

COMPANY V.A.T. REGISTRATION NUMBER: _______________________________________

C2 NUMBER (RCT): __________________________________________________________________

SERIAL NO.: _________________________ EXPIRY DATE: ________________________

TAX CLEARANCE CERT NO: ___________________ EXPIRY DATE: ____________________

COMPANY’S INSURANCE LIABILITY NUMBER: ____________________________________

EXPIRY DATE OF INSURANCE CERT: ______________________________________________

Please complete for Payment through Electronic Banking:

BANK ACCOUNT NUMBER: ________________________________________________________

COMPANY’S BANK ACCOUNT NAME: _____________________________________________

SORT CODE: ___________________________ BANK NAME: _____________________________

BANK ADDRESS: ______________________________________________________________________

______________________________________________________________________

BIC/SWIFT CODE: ______________________ IBAN NO.: ________________________________

I hereby authorise the payment of invoices to the above bank account through electronic bank transfer.

Signed: _______________________________

Position Held: _________________________

Date: _________________________________

86

LIT SUPPLIER SET-UP FORM (CONTINUED)

Please complete below if postal address for Purchase Orders is different from remittance

address:

POSTAL ADDRESS: ________________________________________________________________

(For purchase orders)

________________________________________________________________

________________________________________________________________

TELEPHONE NO.:

SALES: _______________________ CONTACT NAME: ______________

SALES FAX NO: _______________________________________________________________

EMAIL ADDRESS:

SALES: ___________________________________________________________

PLEASE STATE CURRENCY IN WHICH YOU WISH TO BE PAID IN: _______________

Important:-

Please note that all Invoices must be sent into the Finance Department

quoting an Official LIT Purchase Order Number in order to be paid.

Any Invoices received without an Official LIT Purchase Order

number will not be processed for payment.

87

LIT Terms and Conditions

1. DEFINITION

“Buyer” means Limerick Institute of Technology

“Seller” means the person or company to whom the order is addressed

2. ORDER ACCEPTANCE

Acceptance of the order by the Seller constitutes a contract for delivery of the stipulated goods to the Buyer shown and under the terms specified. These conditions shall have effect for all orders placed by the buyer and acceptance of such orders by Seller, irrespective of any conditions of sale of such Seller, shall constitute complete acceptance of the conditions hereon in all cases.

3. TAX CLEARANCE PROCEDURES

a) Limerick Institute of Technology will operate relevant tax clearance procedures

4. VALIDITY

Buyer shall not be liable for any orders other than those issued with a relevant purchase order number or confirmed on official printed order forms duly signed on behalf of Buyer

5. DELIVERY

a) The goods properly packed and secured in such a manner as to reach their destination in good conditions of transport, shall be delivered by the Seller at, or dispatched for delivery to the place or places and in the manner specified on the Order or as subsequently specified.

b) When acknowledging the order, Seller must confirm that the required delivery dates will be met or he must indicate clearly in all cases where Buyer’s delivery requirements cannot be met.

c) Under no circumstances must Seller offer the goods for delivery without proper Advice Notes and clear packing Specifications.

6. PACKING

a) Buyer will accept no charges for packing materials unless clearly indicated originally on Seller’s quotation. Such charges will then be shown on the face of the order.

7. SUB-CONTRACT

The Seller shall not, without the prior consent in writing of Buyer, sub-let the contract or any part thereof other than to a Company which is member of the group to which the Seller belongs. Any such consent shall not relieve the Seller of any of his obligations under the contract. In such circumstances no responsibility will be accepted by the Buyer.

8. SHIPPING MARKS and NUMBERS

Buyer’s shipping marks and numbers, as shown on the order, must be clearly shown on all packing cases or crates and on all documents relating to delivery. The “ship to” and “ship via” instructions should be complied with explicitly.

9. CONFIDENTIALITY

The order and the subject matter thereof, shall be treated as confidential between Seller and buyer, and shall not be disclosed by the Seller or any sub-contractor to the Seller to any third party, or used by the Seller or any sub-contractor for advertisement display, or publication without prior consent in writing by the Buyer.

10. DRAWINGS, PATTERNS, SPECIFICATIONS, Etc.

a) All drawings, patterns, specifications, moulds, or other tooling supplied by the Buyer, or prepared by the Seller for, and at the sole cost of the Buyer, shall be and remain the property of the Buyer.

b) The Seller shall not use such items, nor shall he authorise or permit them to be used by anyone else for or in connection with any purpose other than the supply of the goods to the Buyer unless such use is expressly authorised in writing by the Buyer.

c) The Seller shall maintain such items in good order and condition and on completion of the contract or as otherwise directed by the Buyer, shall return them to the Buyer in good order and condition.

11. PRICES

a) Seller’s price shall not be higher than last quoted or charged to Buyer or its affiliates unless otherwise agreed in writing. Invoices must be rendered for each shipment under this Order on date of shipment. If not received promptly, Invoices may be returned for redating. If before completing performance hereunder Seller shall sell any goods or provide any services of the kinds and specifications covered by this Order to any other customer at a price that is lower for the same or lesser quantity of goods or for comparable services than the price then in effect hereunder, then the price shall be reduced to such lower price.

88

b) This Order must not be filled in greater quantities or at prices higher than shown without written approval of an authorised representative of Buyer. If price is not shown on Order, it is agreed that Seller will furnish at no higher prices than last purchased unless expressly authorise in writing by Buyer.

In the event this Order is not filled in each particular detail as specified the Buyer reserves the right to do any one of the following:-

To cancel this Order.

To recover all loss, damage and expenses caused by such failure.

To require delivery by any means. Seller to pay any increased transportation expenses.

c) CURRENCY – This contract will be deemed to be in Euro unless otherwise clearly stated in writing in words and figures on the Order.

d) The Buyer Reserves the right to withhold Retention.

12. CANCELLATION

Buyer reserves the right to cancel this order or any part of it, and in the event Buyer will be entitled to deduct from the agreed price any expense incurred by reason that

a) The material or goods to be supplied are not received, or the work to be carried out is not completed, by the date specified, or

b) The material or goods supplied or the work carried out, does not comply strictly with the description, specification and drawings relating thereto, or

c) The material or workmanship is not sound in every respect or does not reach the standard specified or does not pass such inspection as may be required by Buyer or Buyer’s customers.

13. DAMAGE or LOSS IN TRANSIT

The Seller will repair or replace, free of charge, goods damaged or lost in transit provided the Buyer shall give the Seller written notification of such damage or loss within such time as will enable the Seller to comply with the carrier’s conditions of carriage as affecting loss or damage in transit or when deliver is made by the Seller’s own transport, within a reasonable time.

14 INSPECTION DURING MANUFACTURE

a) The Buyer or his representative (both in this clause 13 referred as “the Buyer”) shall have free entry at all reasonable times to all parts of the Sellers (or its sub-contractor’s) premises for the purpose of inspecting and testing the goods during manufacture, processing or storage to see if the goods are being furnished in accordance with the terms of the order. Any such inspections and tests will be conducted so as not to interfere unnecessarily with the operation of the Seller’s manufacture, process or storage of the goods.

b) If as a result of any inspection or test under sub-clause (a) above the Buyer is of the reasonable opinion that the goods do not or will not comply with the terms of the Order, he shall inform the Seller accordingly in writing and the Seller shall take such steps as may be necessary to ensure such compliance.

c) Any inspection by the Buyer shall not relieve the Seller from complying with any and all expressed or implied specifications, agreements or guarantees.

d) Failure by the Buyer to inspect under the provisions of this Clause shall not be deemed to constitute a waiver of the Buyer’s right to inspect at any subsequent time or other place.

15. REJECTION

a) The Buyer may, by notice in writing to the Seller, reject the goods if Seller fails to comply with the order in regard to quality, quantity and description as specified on the order. Such written rejection would be made by Buyer within 14 days of delivery unless another period has been agreed between the parties.

b) The Buyer shall, when giving notice of rejection, specify the reasons therefore and shall return the rejected goods to the Seller at the Seller’s risk and expense. In such case the Seller shall within a reasonable time replace such rejected goods with goods which are in all respects in accordance with the contract.

c) Any money paid by the Buyer to the Seller in respect of any rejected goods not replaced by the Seller within a reasonable time, together with any additional expenditure over and above the Contract Price reasonably incurred by the Buyer in obtaining other goods in replacement shall be paid by the Seller to the Buyer.

16. ACCOUNTING

a) All invoices should be address to Accounts Payable and reach the section within three (3) working days of any delivery or of any service having been supplied. Our Purchase Order Number, your Advice Number, and your V.A.T. Registration Number must be clearly indicated on each invoice.

b) A monthly statement of account should be rendered by the 15th of each month.

c) Goods purchased outside the state must have commodity code number quoted on each invoice.

d) A monthly statement of account should be rendered by the 15th of each month.

e) Goods purchased outside the state must have commodity code number quoted on invoices.

89

17. ARBITRATION

All disputes, differences or questions at any time arising between the parties as to the construction of the Contract or as to any matter or thing arising out of the Contract or in any way connected therewith shall be referred to the arbitration of a single arbitrator who shall be agreed between the parties or who, failing such agreement, shall be appointed at the request of either party by the Director of Limerick Institute of Technology.

18. LAW OF THE CONTRACT

The order between the Buyer and Seller must be construed and the relationship between the parties shall be determined in accordance with the laws of the Republic of Ireland and shall be subject to the jurisdiction of the Irish Courts.

19. NOTICE TO SUB CONTRACTORS

Sub-Contractors must present Tax Clearance Documents at the beginning of each new Financial year or at the Award of a contract. Failure to do so will result in the Buyer deducting Tax at the appropriate rate.

20. INSURANCE & INDEMINITY

Where any work or services are to be undertaken or supplied by the supplier otherwise than at the Supplier’s Premises, the supplier shall adequately insure against all Employers Liability and Third Party Risks, including Third Party Fire risks arising out of or in connection with the execution of such work and/or the performance of such services and shall produce to the Buyer the policies of such insurances together with the receipts for premiums if requested. In the event of the Supplier failing to affect such insurances the Buyer shall be at liberty to insure on behalf of the Supplier and to deduct the amount of any premium so paid by the Buyer from any amounts due to the Supplier under the Contract. In addition, the Supplier shall also indemnify and adequately insure the Buyer against all claims and all costs in respect of any injury or damage to person or property caused by the work or services carried out or performed by the Supplier or by the execution thereof or by its work men. It is a condition of the Contract that the suppliers’ employees’ servants and agents become acquainted and comply with the fire precautions and regulations in existence on any site where any work is carried out or services performed.

90

Appendix 4

Sample Tender Opening Record Sheet

91

TENDER OPENING RECORD SHEET

OPENING OF TENDERS FOR:

Name of Tender

Date Notice Published:

Closing Date & Time:

LIST OF TENDER SUBMISSIONS RECEIVED

Name of Tenderer Date & Time Received Comments

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Persons Present

Print Name Official Capacity On Decision

Making

Committee Y/N

Signature Date of

Opening

92

Appendix 5

SAMPLE TENDER EVALUATION FORMS

93

TENDER EVALUATIONS

1. SELECTION CRITERIA (Economic/ Financial Technical criteria set out

in the RFT) to assess Tenderers ability to progress to the evaluation stage, must also be documented.

All tenders are assessed firstly on the basis of the Selection Criteria as set out in the RFT. The evaluation breakdown advertised in the RFT must be strictly adhered to in the evaluation process.

2. AWARD CRITERIA

Ultimate Cost/Price criteria from Tenderers is usually evaluated on

the lowest cost tender received.

In assessing tender prices and applying scores to the various tender prices

received, the following process should be applied;

The lowest cost tender assessed and which also meets all the minimum

requirements of the qualitative award criteria will receive the maximum score

under this criterion. The scores for ultimate cost of the other valid tenders

will be calculated by using the following formula;

Tender score for Cost: Maximum Score Available x Lowest Valid Tender Price

Tenderer‟s Price in question

Calculation of price must be clearly documented in the evaluation process.

Allocation of Points to Qualitative Criteria (all evaluation criteria

other than price)

All qualitative criteria calculations must be clearly documented in the

evaluation documentation.

For this part of the evaluation multiplier options could be used.

For Example

Multiplier options

Using 0-5 0= No response

1= Poor

2=Mediocre

3=Good

4=Very Good

5=Excellent

Using 0-2 0= no response

1=acceptable

2=good

94

Please see sample tender evaluation scoring sheet (tenderers who

have progressed from selection stage)

Sample Tender Evaluations SAMPLE 1 Tenderers

Fee Ultimate Cost Qualitative

Criteria 1 Qualitative Criteria 2 Qualitative Criteria 3 Total

Score Weighting % % % % 100% Max Score x lowest

tendered price divided by Tenderers price= score for price

0= No Response 1=Poor 2=Mediocre 3=Good 4=Very Good 5=Excellent



Lowest Tendered Price

€00000

Multipliers Nor applicable for price see above

0,1,2,3,4,5 0,1,2,3,4,5 0,1,2,3,4,5

Rule As above Must score >60% Must score >60% Must score >60% Tenderer Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Company 10 Names and Signatures of Evaluation Team 1. 2. 3. 4. 5.

95

SAMPLE 2 Qualitative Criteria: Must score greater than 60% Ultimate Cost: Calculated against lowest tender received

All scoring must be clearly documented and additional supporting information (calculations etc) must be kept on file with the evaluation sheet

and returned to the Secretary/Financial Controllers Office.

DECISION OF EVALUATION COMMITTEE RE Name of Tender /Tender

Reference

It has been agreed by the Evaluation Committee that the following

Tenderer/s be awarded the contract for Name of Tender/Tender Reference

Tenderer Name Lot Awarded

Signed:

Cross Functional Team Member 1. Title

_____________________________________


_____________________________________


_____________________________________

Date:

______________________________

No Tenderer Ultimate Cost Qualitative

Criteria 1

Qualitative

Criteria 2

Qualitative

Criteria 3

Total

96

Appendix 6

PRE-QUALIFICATION QUESTIONNAIRE

97

Note: ONLY APPLIES TO RESTRICTED

TENDERING PROCEDURE)

TENDER NAME & REFERENCE:

LIMERICK INSTITUTE OF

TECHNOLOGY

Prequalification Questionnaire

(PQQ)

98

This PQQ forms the first part of this tender process. Prospective Tenderers will be selected following evaluation of the all completed PQQ‟s received in writing prior to the allocated deadline for Expressions of Interest in this contract. Evaluation will be based on the following selection criteria. SELECTION CRITERIA WEIGHTING Organisation and Resources X% Legal Standing X% Financial Information X% Insurances X% Standards and Policies X% Capability and Previous Experience X% Respondents must adhere to the format of this PQQ when answering the questions. Where questions cannot be fully answered, please provide relevant explanation and details. Where additional space is required, please use the same format as the relevant section in this PQQ. Successful candidates will be issued with a full set of Tender Documents to be completed prior to an allocated deadline.

I, the undersigned, confirm that the information contained in this PQQ response is correct at the time of completion. Any changes relevant to this requirement will be notified to LIT without delay.

Signed

Date

Print Name Position

On Behalf of Company Name

The Prequalification Process

Company Declaration

99

1. Company Name 1.1 Full Company Name

1.2 Previous Company Name (How long since name change?)

2. Address

Registered Address

2.1 Street/Building/PO Box

2.2 Town/City

2.3 Postal Code

2.4 County/Region

2.5 Country

2.6 Telephone

2.7 Fax

2.8 General Email Address

2.9 www address

Order/tender address ( if different from above)

2.10 Street Building/PO Box

2.11 Town/City

2.12 Postal Code

2.13 County/Region

2.14 Country

2.15 Telephone

2.16 Fax

2.17 Order/Tender Email Address

Invoice Address ( if different from 2.10)

2.18 Street /Building/PO Box

2.19 Town/City

2.20 Postal Code

2.21 County/Region

2.22 Country

2.23 Telephone

2.24 Fax

2.25 Invoice Email Address

100

3. Company Registration 3.1 Company Type ( eg

limited, plc etc

3.2 Country of Registration

3.3 Registration Number

3.4 Registration Year

Company Owners

List of National Owners

Company Name Shareholding

3.5

3.6

3.7

3.8

3.9

List Of International Owners

Company Name Shareholding

3.10

3.11

3.12

3.13

3.14

Associate Companies

Company Name Relationship

3.15

3.16

3.17

3.18

3.19

4. Organisation and Resources Executive Personnel

Name Position ( Directors/partners etc)

4.1

4.2

4.3

4.4

4.5

Contact Persons

Name Job Title

4.6

4.7

4.8

4.9

4.10

Employees/Contractors

Year No Of Employees No Of Agency Staff

4.11

4.12

4.13

101

5. Legal Standing Please provide us with the following information in relation to your legal standing

5.1 (1) (1) A certificate, declaration under oath, or solemn declaration providing proof That the bidder is enrolled on the professional or trade registers of his country of establishment, or where no such register exists a declaration under oath or solemn declaration that he exercises the particular profession or trade.

5.2 (2) A certificate issued by the competent authority in the Member State concerned, or a declaration on oath or by a solemn declaration made before a competent authority, a notary or a competent professional or trade body, to the effect that the bidder has fulfilled its obligations relating to the payment of taxes and social security contributions in accordance with the legal provisions of the country in which the bidder is established.

5.3 (3) An extract from the judicial record or equivalent issued by the legal or administrative authority of the country of origin, by a declaration on oath or by a solemn declaration made before a competent judicial or administrative authority, a notary or a competent professional or trade body, demonstrating that the bidder: a) is not bankrupt or being wound up, its affairs are not being administered by the court, it has not entered into an arrangement with creditors, it has not suspended business activities or is not in any analogous situation arising from a similar procedure under national laws and regulations; (b) is not the subject of proceedings for a declaration of bankruptcy, or for an order for compulsory winding up or administration by the court or for an arrangement with creditors or of any other similar proceedings under national laws and regulations; (c) has not been convicted of an offence concerning his professional conduct by a judgment which has the force of res judicata (i.e. a matter which has already been conclusively decided by a court).

6 Financial Information Financial Information

6.1 Financial Year Ending ( day month

6.2 Currency used in accounts

6.3 % of Annual Turnover to local economy

6.4 Local economic region

Accounts as registered Latest Accounting Year

Previous Accounting Year

6.5 Accounting Year

6.6 Annual Turnover

6.7 Pre-Tax Profit

6.8 Total Assets

6.9 Current Assets

6.10 Total short term liabilities

6.11 Total net assets

6.12 Issued (share Capital(if applicable)

Reference

6.13 Reference from bidders/bankers to be included with this section

7.Insurance Standard/Insurance Public

Liability Employers Liability

Professional Indemnity

102

7.1 Year

7.2 Value per Incident

7.3 Total Cumulative value

7.4 Professional Indemnity Coverage

7.5 Expiry Date

7. Standards and Policies

8.1 Quality Assurance (QA)

8.2 QA Policy Statement (limited to 100 words setting out your company‟s general policy on QA)

8.3 Safety Standard

8.4 List here for past year the number of -Lost time accidents -Fatalities -Non Reportable incidents -Outstanding Prosecutions -Previous Prosecutions ( Last 5 years)

8.5 Environmental standard

8.6 Environmental policy statement ( limited to 100 words setting out your company‟s general environmental policy)

8.7 Licensed Waste Carrier Yes/No

8.8 Licence Number Valid to

8.9 Licensed Asbestos Contractor ( If applicable)

Yes/No

8.10 Licence Number Valid to

103

9.Capabilities and Previous Experience 9.1 Please provide details of your company‟s experience of similar sized

contracts over the past 3 years

Client Name

Contract Value

Description of Services

Delivery Date

Role in the Contract

9.2 Please provide details of your company's organisation and management hierarchy in the form of an organogram (or wiring diagram)

9.3 Please provide details of your company‟s experience of similar sized contracts over the past 3 years

Client name

Contract Value

Description of Service

Delivery Date

Role in the Contract

9.4 Please provide details of the service provided and how this relates to your capabilities to compete for this tender

9.5 Please provide a staff profile showing the total number of permanent staff employed, their grades, trade and professional qualifications

104

8. Capabilities and previous experience (Continued) 9.6 Please provide details of the qualifications experience and awards

achieved by key personnel within the company

9.7 Please indicate which professional or trade bodies your company belongs to

9.8 Please provide details of any mergers and acquisitions in the last 3 years, which have resulted in a significant change in the nature of the company‟s business

9.9 Please provide details of your company‟s e-business experience and capability.

Company

Office City/Town PQQ Completed Date