Procurement Office
Frequently Asked Questions
1. Where do I start or what process should I follow?
• Estimated value >£3,000 (excl VAT)- regulated purchasing (see below)
• Estimated value <£3,000 (excl VAT)- non-regulated purchasing (devolved purchasing). The requisition is processed to purchase order normally without query
Regulated Purchasing
• £3,000 - £24,999 – Market Testing Exercise (4 quotes sought by Senior Buyer based on generic specification )
• £25,000 - £156,442 – Public tender exercise via eTendering system based on generic specification
• £156,442 + - European Tender exercise (eTendering and electronic submission of OJEU Notices)
2. Why can't I get the quotations myself?
The mechanics of obtaining a quotation from a company is not difficult, however, the mechanics of demonstrating equality and transparency of processes is significantly more complex. This incorporates being able to prove that suppliers received the same specification for the same amount of time; that responses were received and treated in the same way; that nothing was altered or a haggling situation did not ensue and that responses were assessed fairly and decisions properly documented.
For every transaction exceeding £3,000(excl VAT) the Procurement Office has to be able to demonstrate all these aspects in writing. End users/requesters do not satisfy these regulations when they act on their own as they fail to understand the more complex obligations behind the scenes.
3. Doesn't the Procurement Office oblige me to accept the cheapest price?
No . The objective of any given project is paramount and scientific and technical reasons will form an important part of the evaluation criteria. Where a more expensive whole life cost option is recommended the reasons for the decision will need to be recorded and the choice justified. The final decision on selection of the successful supplier is for the requisitioner and his or her evaluation team. Procurement Office staff will of course offer advice and guidance if necessary but the final decision rests with the user.
4. Doesn't the involvement of the Procurement Office slow the whole process down?
Possibly, but by taking more time over the details at the outset many of the potential causes for later delays may actually be avoided. Procurement Office staff appreciate the desire to get a project started when funds are available, but hasty decisions seldom lead to the best possible outcome and are increasingly becoming the cause of legal challenges.
5. How can the Procurement Office staff contribute if they do not fully understand the scientific aspects of the equipment?
Procurement Office staff will, with the requisitioners help, seek to understand the function of the equipment and can help with the drafting of wider aspects of the specification (such as whole life costs). However, their biggest contribution will be on the tendering, legal, contractual and procedural side of the process.
6. What if there is only one supplier for my equipment?
In the National Audit Office report of 1999 it states:
“The main argument for not adopting competitive tendering was that there was only one supplier. We believe, however, that this is rarely the case" (Paragraph 2.10).
This is not to say that there will not be genuine instances of "single source" situations. In such cases the Procurement Office will advise the applicant of the options open to him or her. Such situations are however exceptional and the requisitioner will be in breach of the law and may be challenged through the European Courts if an alternative Supplier complains. The requisitioner will be required to justify this route in writing and this may need to be confirmed in writing by the Dean/HOD. Moreover, In many high value single source situations it is still advisable to tender, both to be safe from legal challenge and to ensure that a robust contract is agreed. A highly visible and open approach to market testing is the best defense of all.
7. What if there is more than one supplier but we want to use a particular supplier for reasons of technical compatibility or continuity?
This is a variation on the exception arrangements described above. In most cases it will be advisable to tender to ensure that other suppliers cannot meet the technical requirements. It is one thing to express the opinion that no other supplier is able to satisfy the technical needs and quite another to demonstrate that in spite of our best efforts we failed to find to find an alternative source. The approach is then no longer subjective and easier to defend.
8. What if we already have a good discount or a good all round deal, including extra equipment, on the table?
Suppliers will often make attractive offers at the estimating stage. However, we all know that we get nothing for nothing. If the offer is genuine and if the supplier wants the business they should at least repeat the offer at the tendering stage. Sometimes suppliers threaten to withdraw an offer if the work is put to tender. If the amount is over the EU threshold we have no choice but to put the work out to tender. If it is below the threshold the applicant and the Procurement Office will need to discuss the options. If the supplier is offering extra equipment the funding body may not be prepared to pay for it unless it was a part of the original application.
9. What if my funding comes from a non-public source?
As the University is a contracting authority the rules will apply if the award is channelled through university accounts. The conditions of grant of the awarding body will need to be studied; however it is unlikely that any award making body will object to the conducting of tender exercises which might make their money go further.