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					                                                 Paper 169(b)




Purchasing Processes (Procedures and Guidance)
                                                                                    Paper 169(b)

Section 4       PURCHASING PROCESS (PROCEDURES AND GUIDANCE)

   For ease of reference the University of Bath’s Purchasing Procedures are shown in a comprehensive
   set of Process or Flow charts accompanied by brief guidance notes.

   If you have any queries or concerns or require assistance please contact the Purchasing Services
   Team – Ext 6070 or email purchasing-services@bath.ac.uk


   University of Bath Purchasing Processes are:

   1   Sourcing

   2   Tendering

   3   Supplier Allocation

   4   Raising a Purchase Order

   5   Goods received

   6   Payment

   7   Returns / Credit

   8   Supplier Development

   9   unused

   10 Disposals
Paper 169(b)
Paper 169(b)
                                                                                       Paper 169(b)
Process 1 Sourcing Procedure and Guidance Notes

1.1 The need for Product or Service identified, confirmed and specified

The initiation of any purchase on behalf of The University of Bath must be the result of identification of
a bona fide requirement for the product or service. Once identified the requirement should be confirmed
with the budget holder. For complex, technical or high value (greater than £10k) requirements a more
formal statement of requirements (SOR) should be drawn up.

An example (template format) for an SOR is available at:
      http://www.bath.ac.uk/purchasing-services/staff.bho/forms

 For further information / assistance contact Purchasing Services ext 6070
or email: purchasing-services@bath.ac.uk

1.2    Authority to Incur Expenditure confirmed

Before any purchase can be made the requestor must obtain the relevant Authority to Incur Expenditure

Note: Failure to obtain relevant authority (and budget) in advance of a purchase will result in the
requisition being rejected (i.e. not receiving approval) in the University of Bath Finance
system.Commitment(s) to purchase outside of the University of Bath Finance system (other than for
goods/services detailed on the Purchasing Services “exempt” list, or made by approved use of the
University of Bath Corporate credit card may result in the purchaser being personally liable for the
expenditure and/or in disciplinary action being taken


1.3 Does Internal Provider or Contracted supplier exist?

The University of Bath Finance system holds catalogues for a number of the University’s key suppliers.
Available products and services can be easily searched within the system.

A list of contracted suppliers (CONTRACT, SUPPLIER AND PRODUCT FINDER) is also maintained
on the Purchasing Services website: http://www.bath.ac.uk/purchasing-services/staff.bho/services
Here you will be able to see if a contract exists for the purchase of similar product(s) or service(s).
These pages also give details of contacts for the provision of services from Internal Service Providers
(ISP’s) within the University. These services must be used in preference to external suppliers (per
Financial Regulation E 4.4) please see end of section for a list of current ISP’s.

Yes - an Internal Provider or Contracted supplier exists - go to Process 4 RAISING A PURCHASE
ORDER

No - an Internal Provider or Contracted supplier does not exist
1.3.1 Purchasing services to confirm if there is a suitable existing collaborative purchasing
arrangement available

Purchasing Services will help to determine if there is a suitable existing collaborative purchasing
arrangement available e.g. SUPC / OGC /REAG/ DCSA, which may enhance VfM, and a supplier can
then be allocated without the need to tender further.
                                                                                          Paper 169(b)
Process 1 Sourcing Procedure & Guidance Notes cont.

1.3.2 Identify appropriate number of suppliers to provide tenders

Identify the required number of suppliers to provide tenders per process 2 TENDERING. Contact the
Purchasing Services Team for assistance in identifying further appropriate suppliers for tender as
necessary. Purchasing Services will check reference sources for suitable Suppliers e.g. other University
users, the Web, Supplier Search Organisations, trade shows etc.
Purchasing Services can also advertise on behalf of department if appropriate.
http://www.bath.ac.uk/purchasing-services/staff.bho/contact

1.3.3 Only one supplier identified

If despite the above only 1 supplier who can satisfy the requirement can be identified i.e.
   •   Goods/Service are only available from this supplier (monopoly/oligopoly)
   •   Technical Reasons /specialisation of goods/service
   •   Suppliers Design Capabilities / capacity

You will need to complete a Single Action Waiver (SAW) Form
http://www.bath.ac.uk/purchasing-services/staff.bho/forms/Saw_Form.pdf and submit for approval by the Head of
Purchasing Services before making your purchase.
                                                                                Paper 169(b)

University of Bath Internal Service Providers (ISP’s)

ITP – Information Technology Purchasing & Computer Supplies (previously BUSH shop)
http://www.bath.ac.uk/bucs/services/itpurchasing

AV Unit - Audio Visual Equipment http://www.bath.ac.uk/bucs/services/audiovisual

Image, Design and Printing Services (IDPS formerly the Print Unit) – Reprographics, Graphics
and Printing http://www.bath.ac.uk/marketing/idps/

Photographic Unit – Photography http://www.bath.ac.uk/marketing/photography

Catering and Hospitality Services http://www.haatbath.co.uk/hospitality/hospitality

Accommodation Services http://www.haatbath.co.uk/

Property Services - Minor works http://www.bath.ac.uk/estates

Estates (Central) Stores – for various miscellaneous items such as nuts, bolts, electrical items
etc. http://www.bath.ac.uk/internal/central-stores

Telephony (incl. Mobiles) – Email: C.A.Holley@bath.ac.uk

If in doubt contact Purchasing Services for assistance Ext 6070 or Email: Purchasing-
services@bath.ac.uk
Paper 169(b)
                                                                                       Paper 169(b)

Process 2 Tendering Procedure and Guidance Notes
For the purpose of estimation of Contract value the following definition applies:

Definition: Value of Contract includes all costs involved in the purchase including carriage,
delivery, postage, packing, maintenance, guarantee/warrantee, and VAT. One or more purchases
placed (or to be placed) by a department with the same contractor count as one contract, i.e.
where the works or supply are of a continuing, repeated or recurring nature the value is to be the
amount payable in one financial year. (Where the value is unknown a genuine estimate of annual
expenditure must be made).

This process commences from the point at which it has been confirmed that there is no pre-existing
Internal Provision or Contract for supply of the required goods or service. If in doubt please contact
Purchasing Services for assistance.

2.1    Is value of contract likely to be less than £500?

Obtain a minimum of 2 separate supplier quotations these can be verbal (in person / by phone). A dated
file note / written record of the conversations and prices quoted must be maintained within the
department for audit purposes. Where the lowest price quoted is not to be accepted this must be noted
or the reason for an alternate choice clearly noted e.g. earliest delivery.

A Summary of Purchase Quotations template is available for this purpose from the Purchasing Services
website “Forms” pages

2.2    Is value of contract likely to be between £500 and £9999?

Obtain a minimum of 3 separate written supplier quotations, these can be faxes. A dated file note and
copies of all quotations must be maintained within the department for audit purposes. Where the lowest
price quoted is not to be accepted this must be noted or the reason for an alternate choice clearly noted.
e.g. earliest delivery.

A Summary of Purchase Quotations template is available for this purpose from the Purchasing Services
website “Forms” pages

2.3    Is value of contract (purchase) likely to be between £10,000 and £24,999?

Obtain a minimum of 3 separate written supplier quotations and complete a Bid Evaluation Document
(BED) and submit to Purchasing Services.

Bid Evaluation Document / Form available from:
http://www.bath.ac.uk/purchasing-services/staff.bho/forms
                                                                                          Paper 169(b)

Process 2 Tendering Procedure and Guidance Notes cont.
2.3.1 Complete a Bid Evaluation Document:

      a) Requestor completes a Bid Evaluation Document (BED) and submits to Purchasing Services.
         Purchasing Services will assist with completion of the BED.
      b) Purchasing Services review the BED to ensure that an appropriate level of competition has been
         applied, and that the justification for supplier selection is satisfactory. Purchasing Services also
         perform a credit check on the proposed supplier, and will attempt to mitigate any requested
         prepayment.
      c) Purchasing Services confirm approval to requestor
      d) Requestor requests new supplier (if necessary) and then raises requisition in Agresso.
      e) Purchasing Services reference BED and approve requisition in Agresso (Technical
         concurrence), scanning in BED as supporting document to requisition.
      f) Requisition is workflowed in Agresso for further Technical concurrence(s) (e.g. IT) and
         Financial approvals, as appropriate.
      g) Requisition is converted to a Purchase Order.


2.4      Is value of contract (purchase) likely to be between £25,000 and £100,000?

Refer to Purchasing Services as Tender will need to be conducted under University of Bath Official
Tender procedure.

Details of this procedure are available at: http://www.bath.ac.uk/purchasing-services/staff.bho/policies

AND

2.3.1 above – Complete and submit Bid Evaluation Document, prior to requesting new supplier
number or raising requisition.



2.5      Is value of contract (purchase) likely to be > £100,000?

Refer to Purchasing Services as requirement MUST be advertised in the Official Journal of The
European Union (OJEU), by Purchasing Services, and appropriate European Procurement procedure
followed. Please be aware prescriptive timescales apply.

Details of these procedures are available at: http://www.bath.ac.uk/purchasing-
services/staff.bho/policies

AND

2.3.1 above – Complete and submit Bid Evaluation Document, prior to requesting new supplier
number or raising requisition.
                                                                                       Paper 169(b)




Process 3 Supplier Allocation Procedure and Guidance Notes

This process commences from the point at which an appropriate supplier has been identified from the
tendering process, and at which it has also been identified that no supplier record currently exists for
that supplier within the Finance system (per Process 2 TENDERING).

3.1 Requestor completes New Supplier Request form

The requestor completes a New Supplier Request form available from
http://www.bath.ac.uk/purchasing-services/staff.bho/forms/SUPPLIER-REQUEST.doc and submits it
via email to vendor-information-team@bath.ac.uk.
The requestor then directs the supplier to http://www.bath.ac.uk/purchasing-services/suppliers to
complete a Vendor Application.
                                                                                         Paper 169(b)




Process 3 Supplier Allocation Procedure and Guidance Notes cont.

3.2 Supplier completes University of Bath Supplier Application

    The supplier goes to http://www.bath.ac.uk/purchasing-services/suppliers downloads and completes a
    University of Bath Vendor Application and submits to vendor-information-team@bath.ac.uk


3.3 Is proposed spend > £10K?

If spend is likely to be greater than £10k supplier is credit checked. If the credit check is unsatisfactory
Purchasing Services will decline the Supplier and an alternate supplier will need to be found. In
exceptional circumstances a supplier may be added despite an unsatisfactory credit reference on
provision on request by Purchasing Services of a Bank Guarantee or other appropriate guarantee /
assurance.

Purchasing Services will not install a New Supplier for purchases greater than £10,000 unless in receipt
of a Bid Evaluation Document which has been fully approved.

3.4 Is proposed spend < £10K?

If spend is below £10k or above £10k with a satisfactory credit reference, Purchasing Services will
install the supplier on the Finance system (within 2 working days of receipt from the Supplier of an
appropriately completed Vendor Application) and notify the Supplier number to the requestor.

If there is already a contracted supplier or Internal Service Provider for the products/services required a
New Supplier request may be refused.

No commitment to Purchase must be made to the supplier prior to the installation of the Supplier on the
finance system and receipt by the requestor of the Supplier number.

3.5 Are Supplier details incorrect?

If an existing Supplier’s details are incorrect Purchasing Services will modify the incorrect detail once
correct details have been provided by the Supplier on a revised Vendor Application or the Supplier has
provided details of required change on Supplier letter headed paper.

.
                                                                                 Paper 169(b)




Process 4 Raising a Purchase Order Procedure and Guidance Notes

For detailed guidance on Raising a Purchase Order please refer to “AGRESSO Purchase to Pay (P2P):
Requisitioning and Goods Receiving” at Appendix 1.
Paper 169(b)
                                                                                       Paper 169(b)

Process 5 Goods Received Procedure and Guidance Notes
This process begins when goods or services are delivered by the supplier.

5.1 Does delivery conform to Purchase Order?

Goods should be physically examined by the requestor who is required to confirm that goods conform
to specification, and are of the correct quantity and quality. For services the requestor should confirm
that all parts of the service have been carried out satisfactorily.

If YES

5.2 Produce Goods Received Note

The requestor provides confirmation in the form of a signed Goods Received Note (GRN) which is
given to the Departmental or Financial administrator (DA/FA).
Where no GRN is supplied a written confirmation of receipt and acceptance must be provided to the
DA/FA in a timely manner.

The DA/FA receipts the goods or services in the finance system

For detailed guidance on Goods Receiving please refer to “AGRESSO – Purchase to Pay (P2P):
Requisitioning and Goods Receiving” at Appendix 1.

If NO

5.1.1    Raise issue with supplier

Raise the issue with supplier and request replacement or fulfilment of whole order etc, agreeing a
timescale for completion.

5.1.2    Receive replacement or fulfilment of order

Receive replacement or fulfilment of order within agreed timescale – receipt PO and proceed to 5.2
(above).

5.1.3    Expedite order fulfilment with supplier

If you do not receive fulfilment within agreed timescale contact the supplier and agree a revised
timescale

If you receive PO fulfilment within agreed revised timescale – receipt PO and proceed to 5.2. (above)

5.1.5    Supplier unable to complete Purchase Order

5.1.5 If supplier is unable to complete PO within required timescale amend PO Goods received to
reflect satisfactory items received.
                                                                            Paper 169(b)




Process 6 Payment Procedure and Guidance Notes
For an overview of Supplier Payment process please refer to “AGRESSO Purchase to Pay (P2P):
Requisitioning and Goods Receiving” at Appendix 1.

More detailed information is available from the Finance web pages at
http://www.bath.ac.uk/finance/procedures/payingsuppliers/payment
                                                                        Paper 169(b)




Process 7 Returns/Credit Procedure and Guidance Notes
More detailed information is available from the Finance web pages at;
http://www.bath.ac.uk/finance/procedures/payingsuppliers/creditnote
Paper 169(b)
                                                                                   Paper 169(b)

Process 8 Supplier Development Procedure and Guidance Notes
The University of Bath’s suppliers will be appraised and developed based on measurements taken in the
following ways:

       1. Quantitative aspect based on:

                       (i)     Total spend with supplier by product and delivery point
                       (ii)    On time delivery ( Elapse time measurement of the process of PO +
                               lead time + delivery date + invoice receipt date)
                       (iii)   No of exceptions by type

       2.     Qualitative aspect based on:
                       (iv)    Feedback received from Users/Departments in the normal course of
                               business.
                       (v)     a periodic “Customer Supplier Satisfaction Survey”




Process 9 Unused




Process 10 Disposals Process, Procedure and Guidance

Please refer to:
http://www.bath.ac.uk/finance/procedures/equipment/disposals

				
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