For access to all Procurement Forms please visit the Enterprise Procurement website.

Procedures

Procurement - Procedure

Printer-friendly version
Body

1.0   Purpose and Scope

This Procedure outlines the process for undertaking procurement at The University of Queensland (UQ) and should be read in conjunction with the Procurement Policy and the Probity and Integrity in Procurement Procedure which make up the UQ Procurement Framework. Other UQ policies and procedures relevant to the UQ Procurement Framework are listed in the appendix (refer section 7.3).

This Procedure applies to all acquisitions of goods and services by UQ (including its controlled entities) from the market or from third parties, including capital works and all procurement activities that use research grant funding to purchase goods and services.

This Procedure does not apply to transactions between UQ organisational units or between UQ and its controlled entities. Also, it does not apply to the payment of payroll expenses, financing expenses including interest on debt, taxes and all regulatory payments.

All stakeholders (including staff, students and contractors) who can affect or are affected by procurement decisions at UQ (UQ Procurement Stakeholders) are required to comply with this Procedure.

2.0   Process and Key Controls

The following diagram provides an overview of the process and key controls of the UQ Procurement Procedure.

(Click to enlarge)

2.1   Application of the Procurement Procedure

The following provisions apply to the application of this Procedure:

  • The Procedure sets out the minimum requirements for procurement at UQ, subject to any approved exemption. Each procurement activity should be assessed in relation to risk, complexity and impact (financial and operational) to determine if a more robust process should be used. If in doubt, seek guidance from the Category Owner and Enterprise Procurement as to the most appropriate approach.
  • Reference to the risk and impact profile of a procurement, includes consideration of its complexity, criticality, sustainability and impact (organisational and financial).
  • The value thresholds referred to in this Procedure are to be applied on the anticipated total expenditure, over the total term of the contract, are in Australian Dollars and are exclusive of GST.
  • Splitting a procurement or purchase transaction to avoid or weaken controls, such as delegation limits, is not permitted and identified cases will be referred to UQs Integrity and Investigations Unit for investigation.
  • Risk Management is an integral part of all procurement decision making. Refer to UQ’s Enterprise Risk Management Framework’ (ERMF)  for details.
  • Compliance with UQ’s Probity and Integrity in Procurement Procedure is mandatory for all procurement regardless of value.
  • Where procurement is for goods or services covered by a managed category, the requirements of this Procedure are to be read in conjunction with the category specific conditions, if any.
  • There may be circumstances where an exemption to the Procurement Policy or Procedures is justified. Refer to Section 3.7 for the process to be followed in seeking a Procurement Process Exemption.
  • Any assignment of roles and responsibilities to an organisational unit is an assignment of roles and responsibilities to the Head of that organisational unit, who may be assisted in the execution of the relevant responsibility by appropriate UQ Procurement Stakeholders.

3.0   Key Requirements

3.1   Enterprise Procurement

Enterprise Procurement provides overall leadership and governance of the procurement function and processes across UQ. Enterprise Procurement’s level of involvement in a given procurement activity will vary based on the value, risk and impact profile of the procurement activity.

For procurements below the $1 Million value threshold, Enterprise Procurement will:

  • Review transactions (generally after the fact) based on their risk and impact profile and identify, analyse and address any trends or patterns of concern.

For procurements between $1 Million and $5 Million value thresholds, Enterprise Procurement will:

  • Review and endorse the associated Procurement Plan before its implementation.
  • Review and endorse the Procurement Recommendation Report and proposed contract terms, before any supplier offers are accepted or contracts signed to provide assurance that the procurement process and recommendation conform to the UQ Procurement Framework requirements and the approved Procurement Plan and Evaluation Plan.
  • Throughout the procurement process, and in consultation with the Category Owners, undertake additional reviews of the procurement activity and underlying processes as necessary, with regard to the risk and impact profile. 

For procurements above the $5 Million value threshold, Enterprise Procurement must be engaged in the early procurement planning stages and will:

  • Provide advice in relation to the procurement planning process in consultation with the Category Owners, which may include reviewing and endorsing the procurement objectives and strategy, the planning process, including key planning activities, milestones and evaluation criteria, and proposed contract conditions.
  • Review and endorse the Procurement Plan before its implementation.
  • Monitor the implementation of the approved Procurement Plan, including by undertaking reviews to assess and provide assurance that the nature and strength of controls applied to the procurement activity are commensurate with the risk and impact profile of the procurement.
  • Review and endorse the following, before any supplier offers are accepted or contracts signed:
  • Procurement Recommendation Report.
  • Contract terms including any significant departures from UQ’s preferred terms and conditions.
  • Certification from the Contract Delegate confirming the extent to which the procurement activity and recommendations comply with the UQ Procurement Framework.

Advice, guidance, forms and templates relevant to each phase of the procurement process are available from Enterprise Procurement via the Current Staff website.

3.2   Planning

3.2.1   Procurement Planning Documentation and Approvals

Procurement planning documentation is prepared before approaching the market to record the business need for the good or service and plan the approach to market.

  • The primary procurement planning document for the engagement of Contractors (including consultants and contractors for professional services, see definition for details)  is the Contractor Procurement Plan.
  • The primary procurement planning document for goods and services other than engagement of Contractors is the Procurement Plan.

The table below sets out the planning documentation required at different value thresholds and the endorsement and approval required before the market is approached.

(Click to enlarge)

 

Where the procurement is part of a project governed by a steering committee, the terms of reference for the steering committee may require the steering committee's endorsement of Procurement Plans.

3.3   Sourcing

3.3.1   Sourcing Documentation

Sourcing documentation sets out UQ’s objectives and requirements, and the goods or services required, and invites suppliers to provide a quote / offer to meet UQ’s needs.

The primary sourcing documents are:

  • Informal request for quote (phone or email)
  • eQuotes (UQeMarket)
  • Request for Quote (RFQ)
  • Expression of Interest (EOI)
  • Invitation to Offer (ITO)

The table below shows the sourcing documentation and supplier selection requirements at different value thresholds.

(Click to enlarge)

3.3.2   QTenders

UQ uses the Queensland Government’s QTenders service to publish sourcing documents to potential suppliers and enable suppliers to submit quotes / offers. Enterprise Procurement maintain access to, and provide assistance in the use of the QTenders portal.

Use of QTenders is recommended for procurements that exceed $50,000 and is required for procurements that exceed $200,000, unless Enterprise Procurement advises otherwise.

Where use of QTenders is not required, the Procurement Coordinator may distribute sourcing documents via email and will be responsible for maintaining records of communications with suppliers, ensuring fair treatment of suppliers, and ensuring probity is maintained at all times.

3.3.3   Evaluation Documentation and Approvals

Evaluation documentation captures and records the outcome of UQ’s evaluation of supplier quotes / offers and the recommendation of the preferred supplier and products and services.

The primary evaluation documents are:

  • Procurement Brief
  • Procurement Recommendation Report

The table below shows the evaluation documentation required at different value thresholds and the required endorsement / approval before negotiations commence or the transaction is progressed.

(Click to enlarge)

3.3.4   Sourcing Requirements Exceptions

In the following circumstances, the specified sourcing documentation and supplier selection method are not required and a Procurement Brief will satisfy the Procurement Planning and Evaluation Documentation requirements for all value thresholds above $10,000.

  • The procurement is for the supply of preventative maintenance, service and/or repair of equipment where the original equipment manufacturer (OEM) (or their appointed service agent) is the only supplier authorised to undertake the relevant services.
  • There is an existing contractual obligation to use a specified supplier to provide the goods or services, e.g. equipment under warranty and use of an alternative supplier would void that warranty.
  • An ongoing service provision by the supplier which was contemplated and approved in the original procurement documentation for the goods or services.
  • An annual (or other periodic) payment under an existing contract, where the original approved procurement documentation contemplated the payment.
  • The procurement is for the supply of a membership that has been approved in accordance with UQ Special Payments Procedure.
  • An emergency requirement exists and expedited procurement has been approved by Enterprise Procurement or in accordance with the process set out in the relevant Category Management Plan. 

Appropriate evidence to support the presence of one of more of the above conditions (e.g. executed contract, warranty provisions), must be attached to the UniFi requisition to support the Purchase Order.

Some sourcing requirement exceptions may also apply where:

  • The procurement uses an Approved Supply Arrangement (see section 3.3.5).
  • The procurement has been made through UQeMarket (see section 3.3.6).

3.3.5   Approved Supply Arrangements

Enterprise Procurement maintains a list of Approved Supply Arrangements along with the conditions of use for each. These may include supply arrangements established by UQ and other supply arrangements that UQ is entitled to use, such as those established by the Queensland Government.

Where Approved Supply Arrangements have been established, UQ Procurement Stakeholders must purchase through those supply arrangements (subject to arrangement conditions of use) unless there is a genuine and documented business requirement to do otherwise.

Where an Approved Supply Arrangement is used, the UQ Procurement Stakeholders remain responsible for comparing selected products and services with alternatives available through the relevant arrangement and making procurement decisions that deliver best value for money for UQ.

Approved Supply Arrangement Sourcing Requirements Exceptions

The table below shows exceptions to sourcing requirements that apply to use of Approved Supply Arrangements.

(Click to enlarge)

3.3.6   UQeMarket

UQeMarket is an electronic marketplace that is integrated with UQ’s finance system. Through UQeMarket, UQ Procurement Stakeholders can purchase a wide range of commodity items from the digital catalogues of a number of approved suppliers.

UQeMarket Sourcing Requirements Exceptions

For purchases under the $200,000 value threshold made through UQeMarket for catalogue items:

  • a written quote or RFQ is not required
  • the requirement to obtain multiple quotes is satisfied 
  • justification for the procurement can be provided in the UniFi requisition instead of a Procurement Brief.

Subject to category specific conditions, these exceptions do not apply to UQeMarket purchases that are not for catalogue items or where the catalogue item is listed as ‘Price on application’ (POA).

3.3.7   Contract Terms

The Procurement Coordinator is responsible for reviewing the terms and conditions that apply to their procurement and ensuring that the terms of the purchase accurately reflect the commercial arrangement and do not contain any unacceptable legal risks, seeking legal advice if necessary. The Delegate may require a brief outlining this information before accepting the terms for UQ and progressing the purchase.

UQ Standard Agreements must be used in accordance with their accompanying guidelines and where:

  • there are no category or supply arrangement specific contract templates that are required to be used
  • use is appropriate given the nature of the procurement
  • the risk profile of the procurement is low
  • the supplier does not need to maintain significant or special licences, registrations, insurance or certifications that are not covered by the UQ Standard Agreement.

Where there is no suitable UQ Standard Agreement in a given circumstance, UQ Procurement Stakeholders may request that Legal Services prepare a bespoke agreement or review supplier terms.

For Contractor engagements, an executed contract is required for purchases of $10,000 and over. For other goods and services, an executed contract is required for all purchases above $200,000.

3.3.8   Contract Execution and Recording

Contracts to procure goods and services on behalf of UQ must only be executed in accordance with UQ’s Financial and Contract Delegations and Sub-delegations Procedures and the associated Schedules.

UQ has obligations under the Queensland Procurement Policy (QPP) to report on Procurement Contracts that are entered into. All executed Procurement Contracts (including any variations and extensions) must be recorded in UQ’s electronic document and records management system (‘eDRMS’, known internally as TRIM) and marked as a ‘Procurement Contract’, or otherwise provided to Enterprise Procurement (procurementcontracts@uq.edu.au). Contracts, including any variations / extensions, must be recorded within two weeks of their execution.

3.4   Managing

3.4.1   Purchase / Transaction

The purchasing method is dependent upon the nature of the acquisition and its value, risk and complexity. Available methods:

  • Requisitions/ Purchase orders raised via UQeMarket catalogue order.
  • Requisitions/ Purchase orders raised via UQeMarket free format order.
  • Requisitions/ Purchase orders raised via UniFi Special Request / Fixed Cost Service in accordance with the contract, if any.
  • UQ Corporate Credit Card (subject to UQ Corporate Credit Card Procedure).

3.4.2   Contract and Supplier Management

All executed contracts must have a nominated Contract Manager to oversee the life of the contract. The Contract Manager may be the Contract Delegate, the Procurement Coordinator or another appropriate nominated staff member.

Contract Managers must actively monitor the supplier’s performance throughout the contract and ensure that any failures by the supplier to comply with the terms and conditions of the contract are promptly addressed and appropriate measures put in place to ensure they are not repeated.

3.4.3   Contract and Supplier Management Documentation

For procurements that exceed $1 Million, the contract and supplier management approach should be documented in a Contract Management Plan and outcomes should be periodically documented in a Contract Performance Report. For engagements of Contractors that exceed $50,000 outcomes should be documented in a Contractor Performance Report.

3.4.4   Monitoring and Benefits Realisation

For procurements that exceed $5 Million, a Benefits Management Plan should be documented and outcomes tracked and reported in a Benefits Realisation Report.

Prior to the renewal of any existing procurement arrangement, the Contract Manager should assess whether expected benefits were realised under the current arrangement.

Contract Managers must also perform appropriate contract closure activities when a contract comes to an end, including ensuring the return of UQ data and property, revoking supplier privileges on UQ systems, closing open purchase orders, reviewing benefits realisation and advising stakeholders.

3.5   Procurement under Research Grants

The UQ Procurement Framework specifically includes procurement activities that use research grant funding to purchase goods and services. UQ Procurement Stakeholders procuring goods and services on behalf of UQ using research grant funding must be aware that:

  • approval of a grant submission by a UQ delegate is not a procurement approval;
  • obtaining quotes for a research grant application may not be a substitute for the procurement process once the grant application is successful and is being implemented.

Grant funded projects expend funds through UQ and therefore are required to follow UQ’s Procurement Policy and associated Procedures. Quotes obtained for a research grant application may not satisfy the requirements of the UQ Procurement Framework as they will often have been obtained for indicative budgetary purposes only and not through an appropriate procurement process. In some cases the quotes provided during a grant application process may be out of date by the time the purchase is organised.

The grant body may require UQ to utilise the services of a particular supplier and/or purchase a specific piece of equipment or may prohibit some forms of expenditure as a condition of the funding provided. In these cases, if the grant body conditions are in conflict with the UQ Procurement Framework, an application for Procurement Process Exemption can be submitted to Enterprise Procurement.

When obtaining quotes for a research grant application, UQ Procurement Stakeholders should clearly inform suppliers that:

  • there is no intention to award a contract unless the grant application is successful; and
  • the UQ Procurement Procedure would apply to any potential acquisitions.

3.6   Procurement in Collaboration with External Parties

When a third party is conducting procurement activities on behalf of UQ or with UQ’s funds under an overarching governing agreement, the University’s relevant Delegates or representatives must satisfy themselves that the third party has sound procurement policies, procedures and practices in place that meet or exceed requirements under the UQ Procurement Framework.

3.7   Procurement Process Exemptions

Where full compliance with the Procurement Policy and/or Procurement Procedure is not feasible or not in UQ’s best interests, a written application for exemption may be submitted by the Procurement Coordinator to Enterprise Procurement for consideration. Such application will be in the form prescribed by Enterprise Procurement which includes the Procurement Exemption Form or the exemption section of the Procurement Plan or Contractor Procurement Plan.

An application for exemption must adequately demonstrate the business need for the exemption and be based on appropriate reasons, including but not limited to, genuine urgency, criticality, recency and security / confidentiality (refer to the Appendix 2 for definitions) and demonstrate how the proposed approach is able to meet UQ’s Procurement Objectives. Where appropriate, the relevant Category Owner will be consulted in relation to the assessment of the application for exemption.

Enterprise Procurement will send quarterly reports to Category Owners with respect to Procurement Process Exemptions approved under their managed category.

4.0   Roles, Responsibilities and Accountabilities

(Click to enlarge)

5.0   Monitoring, Review and Assurance

Enterprise Procurement will review and provide annual assurance on the adequacy, efficiency and effectiveness of this Procedure. Managers and supervisors including Budget holders, Delegates and Category Owners will ensure all procurement activities in their areas of responsibility are undertaken in accordance with this Procedure. Staff must report actual or suspected breaches of this Procedure to Enterprise Procurement.

5.1   Complaints

UQ takes complaints about procurement activities seriously. Staff who have a complaint about a procurement activity or receive a complaint from a supplier, potential supplier or a member of the public, must refer the complaint to the Investigations and Integrity Unit  who will determine the appropriate course of action.

6.0   Recording and Reporting

6.1   Records

Enterprise Procurement will:

  • Retain records of UQ procurement activities as prescribed in the Procurement Policy, including all executed Procurement Contracts (and any extensions or variations to these).
  • Maintain the UQ Procurement Contracts Register described in the Procurement Policy.

6.2   Reports

Enterprise Procurement will:

  • Provide contract disclosure reporting to the Queensland Government as required under the QPP.
  • Report quarterly to the University Senior Management Group, with input from Category Owners and other UQ Procurement Stakeholders, on the following measures:
    • Total spend by category and budget holder (at USMG level).
    • Total spend by category for major suppliers.
    • Benefits realised against benefit management plans for procurement initiatives greater than $5M.

7.0   Appendix

7.1   Appendix 1 - Procurement Categories, Category Owners and Special Conditions

(Click to enlarge)

 

7.2   Appendix 2 - Definitions

In addition to the definitions provided in the Procurement Policy, the following definitions apply to this Procedure:

Approved Supply Arrangement means an ongoing arrangement established with successful supplier/s designated by Enterprise Procurement for use by UQ (including without limitation a standing offer arrangement, a register of pre-qualified suppliers, panel arrangement or preferred supplier arrangement).

Benefits Management Plan means a document outlining the objective/s and roadmap for benefits realisation and activities necessary for achieving the planned benefits from a procurement activity including the timelines and the tools and resources necessary to ensure the benefits are fully realised over time.

Benefits Realisation Report means a document detailing the definition, planning, structuring and actual realisation of the benefits of a procurement activity. This report may be produced when all planned benefits are realised or progressively when specified benefit milestones are achieved.

Contract Management Plan means a document that contains all the key information about how a contract will be managed including establishing systems and processes to ensure that the contractor complies with the terms and conditions during the performance of the contract.

Contract Performance Report means a progressive document prepared during the contract term as a means of documenting performance of the contractor for UQ’s internal use or as justification for the extension or termination of the contract, if identified issues are unable to be resolved.

Contractor means an individual or organisation engaged under a contract (other than as an employee) to provide services to UQ. Contractors can be classified as follows:

  • Consultants (engaged to provide recommendations and specialist or professional advice to assist or influence University decision making)
  • Contractors for non-professional services
  • Contractors for professional services
  • Contingent labour

Helpful guidance can be found here

For the purposes of this Procedure (excluding Appendix 1), the term ‘Contractor’ does not include contractors for non-professional services.

Contractor Performance Report means a written report that evaluates the Contractor’s performance which should be completed before final payment to the Contractor to ensure that all elements of the specification have been met. This Report can be used when considering the Contractor for future work or for similar projects.

Criticality means where securing the goods or services from a nominated proven supplier is critical to ensure uninterrupted provision of UQ and/or a partner organisation’s services. Under this scenario, the engagement of an alternative supplier would present significant risk and additional cost to delivering business outcomes.

Delegate means Financial and/or Contract Delegate or Sub-delegate as per UQs Delegations Policy and Procedures.

Evaluation Panel means the UQ representatives nominated to evaluate supplier quotes / offers against defined evaluation criteria and determine a preferred supplier for a given procurement need.

Evaluation Plan means a documented approach for conducting the evaluation of offers received in response to either an Invitation to Offer or a Request for Quotation mainly outlining the conditions of participation, evaluation criteria, process, methodology and evaluation panel member identities, roles and responsibilities.

Genuine Urgency means where circumstances dictate that the purchase could not have been reasonably foreseen or planned and there is insufficient time to complete the required procurement process.

Procurement Contract means a document detailing the legally binding agreement between a supplier of goods/services and UQ. The term ‘Contract’ is defined in the Schedule of Contract Delegations and Sub-Delegations.

Recency means where a purchase for the same or very similar goods or services has been previously undertaken with the same supplier as the result of a full procurement process within the previous twelve (12) months. 

Security / Confidentiality means where the procurement involves a high level of sensitivity and there are risks associated with divulging the requirement to multiple suppliers. Procurements falling within this category will require potential suppliers to complete a Confidentiality Agreement prior to the release of any Request for Quote or Invitation to Offer.

Value Threshold means the procurement spend level at which specified requirements, process or exceptions apply. The relevant value is the anticipated total expenditure in Australian Dollars, accumulated over the total term of the Procurement Contract, exclusive of GST.

7.3   Associated policies and procedures

  • Procurement Policy.
  • Probity and Integrity in Procurement Procedures.
  • Research Contracts and Grants Procedures.
  • Purchasing Procedures.
  • Delegations Policy.
  • Financial and Contract Sub-delegations Procedures.
  • Suppliers Procedures.
  • Special Payments procedure.
Custodians
Chief Financial Officer Mr Andrew Flannery

Forms

Printer-friendly version

Procurement - Forms

Procurement - Forms

Printer-friendly version
Body
Description: 

Forms relating to this policy are currently under review and in consultation.  New pilot forms and existing templates are available from:

https://staff.uq.edu.au/information-and-services/finance/procurement/pro....

Custodians
Chief Financial Officer Mr Andrew Flannery
Custodians
Chief Financial Officer Mr Andrew Flannery
Custodians
Chief Financial Officer Mr Andrew Flannery