Procurement Awareness
Contents
Introduction Procurement Strategy Procurement Team Background Information Terminology Regulations and Policies Procurement Policy - Tendering Levels Procurement Policy - Contract Signing Authority
Procurement Function Types of Procurement Roles and Responsibilities Timeframes for Tendering Guidance Steps and Templates Ordering Goods/Services/Works Contracts Contracts - Signing Procedure Payments Insurance Setting Up a New Supplier Supplier Set up Request Checklist Feedback
Procurement Awareness training
Procurement Purpose To ensure that we select and manage our supply chain to deliver value for money goods and services to our colleagues and customers. Procurement Vision To be the best in class Procurement Team delivering lowest total cost goods and services to our customers. Introduction
Objectives • To give an overview of the Procurement Policy. • To understand the tender requirements. • Templates and Forms to use.
Procurement Strategy 1 Category Management 3 Process Management 7 core elements
2 Supplier Relationship Management 5 Knowledge Management i
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4 Performance Management
6 People Management
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7 Stakeholder Engagement
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Procurement Team Accountable for good Procurement practice . Accountable for management of critical suppliers . Ensuring value for money with suppliers. Responsible for specific categories. Facilities: Gardening, Cleaning, Catering, Waste collection Property: Responsive repairs, Asset Investment, Compliance Business Services: IT, HR, Marketing, Insurance Categories are on Procurement pages of The Bridge . Go to The Bridge >
Background Information Anchor spends £250m PA
3,500+ suppliers used each year
Think: Save 1% of spend = £2.5m to reinvest for the benefit of our customers
Requirement to be compliant. Regulations and policies
We have an approved list of existing suppliers
Business Plan Map DOWNLOAD PDF
Supported by formal business policies
Terminology REI Request for Information.
RFQ Request for Quotation.
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RFx - the process for selecting a supplier.
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ITT Invitation to Tender.
RFP Request for Proposal.
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PCR TUPE
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Regulations and Policies
We have two main policies which govern our Procurement approach:
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• Accounting Manual • Procurement Policy
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In addition, there are also some legal requirements for us to consider when we are undertaking a Procurement activity, which include: • Public Contracts Regulations • Section 20 • GDPR • Modern Slavery > > >
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Procurement Policy
Tendering Levels Value of contract Procurement Requirements
Responsibility
Up to £1,000
Ensure the cost is value for money
Cost centre owner
£1,000 to £10,000 Two quotations
Cost centre owner
£10,001 to £25,000 £25,001 to £189,329
Three quotations Cost centre owner
Formal tender process
Procurement
Procurement
£189,330 and above
Goods and service - OJEU process applies
£4,733,252 and above
Works - OJEU process applies
Procurement
Procurement Policy Contract Signing Authority Who can sign a contract with a supplier? Signing Authority Board
Contract Value Above £10m Utilitities (Gas & Electricity) £10,000,000 £5,000,000
Chief Executive Officer Chief Executive Officer Chief Financial Officer Director of Procurement Senior Category Manager Category Manager
£500,000 £100,000 Up to £25,000 All agreements with any supplier.
Procurement Function
Helping you get the best out of your tender process and achieve value for money
Providing a platform for cost effective and transparent tenders
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Guidelines
Setting guidlines and rules to ensure that law and best practice are followed
Creating the tools to assist with your tenders and contract management
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Types of Procurement
GOODS
SERVICES
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WORKS i
Roles and Responsibilities
The procurement team are responsible for ensuring we get the best deals on everything we need to buy, from expensive software licences to multi-packs of cleaning sponges. Our purpose is: • To operate as efficiently and effectively as we can. • To buy smartly save money and provide value for Anchor and our residents. • To manage our contracts well so we can get the quality and performance we need. • To work smarter and spend less time on sorting our problems. • To demonstrate probity and transparency. For details on all of our suppliers please use the Supplier Directory link below. Supplier Directory >
Central Support roles and responsibilities
Procurement roles and responsibilities
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Finance roles and responsibilities
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The Procurement Support Team is available for contact between 8am and 4pm Mon-Fri and are the first point of contact to support the business for all its Procurement needs:
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Timeframes for Tendering Contract Value Procurement Method
Estimated Timescales 1-3 weeks
£0 - £25,000
Purchase Order with the correct quotes obtained in line with the Procurement Policy Invitation to Tender/Request to Quote - formal tender completed with the Procurement Team
£25,000 to £189,330
4-16 weeks
£189,330+ Regulation with Public Contract Regulations
Minimum 16 weeks
Generally most suppliers will be expected to have a contract which will be supported by a Purchase Order in Agresso or Works order (Property). Timing is subject to S20, availability of specifications, knowledge of supplier market etc.
Supplier Directory >
Guidance Steps and Templates Procurement has a suite of temblates available on the Procurement pages on The Bridge including: Quote & Tender Help > Supplier Set Up Forms > Contract Templates > Procurement Policy >
Ordering Goods/ Services/Works Is there an existing contract to cover the requirement? 1 4
Identify and document the specification you expect suppliers to price along with any additional information which would affect bids. (e.g. frequency for services etc Request pricing against the specification from the desired number of suppliers. Score and select the winning supplier. Obtain a signed contract - before setting the supplier up. Follow the Supplier set up process if necessary for Agresso .
• Check if the goods/services/ works are already covered by a central contract. • Use the Supplier Directory on The Bridge . • Contact Procurement for guidance if required. Follow the appropriate requirements as outlined in the Tendering Limits of the Procurement Policy . If the requirement is above £25k in value you must contact Procurement for assistance. 2
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Consider if Section 20 or TUPE is applicable to the procurement activity. If so contact Procurement for guidance.
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Contracts All supplier spend must be on an Anchor contract . Advice on the appropriate contract will be provided by the Procurement Team. Set expectations of quality with the supplier. Formalise the business relationship with the supplier and set commercials (payment terms etc). Protect Anchor from any dispute that may arise with the supplier depending on value. Note: Don’t sign up to a supplier’s terms and conditions.
Contracts are only authorised to be signed by either a member of the Procurement Team , the Director of Procurement, the Chief Financial Officer or the Board.
Contracts Signing Procedure
All Contracts must be signed by the Contractor / Supplier first. The Contract should then be scanned and emailed to procurement at: procurement@anchor.org.uk . You will receive a counter signed copy of the contract via email that you will need to provide to the Contractor / Supplier.
Please be aware that this signature process can take up to 5 working days . All signed contracts are held by Procurement on a central contracts register . It is also recommended that a copy of the contract be kept for your reference . Contact Procurement >
Payments Standard pavment terms are 30 davs from end of month (EOM). We cannot pay on a number of days e.g. 28 days as we only have 2 payment runs per month (5th and 19th of the month). Suppliers should be instructed to deliver goods/services/works by either an official Purchase Order or Works Order prior to delivery. Goods/services/works must be receipted (GRN'd) on Agresso promptly once received or completed. Suppliers should send a valid invoice referencing the purchase/works order number. This will match if receipted and the invoice paid to the agreed payment terms with the supplier.
Where it is not a one off purchase, payments to suppliers must be staged (e.g. monthly payments). On completion of satisfactory works they have done . Payments in advance must not be made. Orders should not be split up to avoid the spend limits. Procurement can advise on risk options. Issues with supplier payment should be taken up with the Purchase Ledger Team .
Insurance Minimum Insurance Limits for suppliers are: • Public Liability £5 million • Employers Liability £10 million. • Professional Indemnity. • (if appropriate) £2 million. It is becoming a more and more litigious environment and Anchor need to ensure we are protecting both ourselves and our residents.
Setting Up a New Supplier If the Company is new to Anchor , they will need to be set up.
Completed submissions will then be authorised to be set up on the required systems.
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Setting a supplier, learn more...
Procurement will contact the requestor with the supplier code to raised orders against.
All suppliers should follow the Supplier Set Up process.
Supplier set up FAQs
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Set up a supplier use ask Procurement to request set up a new supplier
Supplier Set up Request Checklist Before you submit a request please confirm the following: 1. I have read and understood the Anchor Supplier Set Up Guidance Notes . 2. I have followed the correct quotation/tender process as per the Procurement Policy. 3. I have completed a Anchor Pre Approval request form for my chosen supplier. 4. I have submitted the correct evidence of value for money in line with the Procurement Polic, or I have completed a Procurement Policy Exemption Request . 5. I have read and understood the Conflict
of Interest Policy and declared any conflict as part of the application. 6. I understand that Procurement will assess the application, and may reject and provide further guidance if necessary.
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Set up a supplier use ask Procurement to request set up a new supplier
Feedback Procurement is always looking for any feedback on
the policies, procedures, templates and this training session. Please let a member of the procurement have any feedback. Contact Procurement >
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