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Purchasing Procedures December 2011

PURCHASING PROCEDURES

INTRODUCTION

PURCHASING PHILOSOPHY

PURCHASING POLICY

PROCEDURES Last reviewed – December 2011

1. - Services

2. - Primary Budget Holder

3. - Authority to Order

4. - Request to Purchase

5. - Selection of Potential Suppliers

6. - Invitations to Tender/Quote

7. - EU Procurement Legislation

8. - Use of Purchase Orders

9. - Dealing with Suppliers

10. - Use of Specifications

11. - Contracts

12. - Purchasing Consortium

13. - Buyers Guide

14. - Lead Purchasers‟ Group

15. - Financial Health Checks

16. - Supplier Appraisal

17. - Approved Suppliers

18. - Purchasing Cards

19. - Corporate Cards

20.- Negotiation Briefing Notes

21.- Purchasing Guidance Notes

(when bidding for funds)

22.- Consultancy

23.- Purchasing Flowchart

FINANCIAL SERVICES

PURCHASING OFFICE

DECEMBER 2011


INTRODUCTION

The purpose of these procedures is to advise and assist those staff within the

University who undertake purchasing duties as part of their overall responsibilities.

The Purchasing Office is part of Financial Services and its primary purposes are to

formulate Purchasing Policy, co-ordinate purchasing activities within the University

and to provide professional purchasing advice and assistance to all parts of the

University Group. A more detailed description of the role of the Purchasing Office

can be found under the Service Standards section of these procedures.

All purchasing procedures are derived from the Purchasing Policy of the University

and the Policy Statement now forms part of the Financial Regulations of the

University Group.

To assist with the location of Purchasing Policies within the regulations of the

University Group the following details are supplied:

Financial Regulations

The Financial Regulations of the University Group establishes approved practices

governing the purchasing process (see paragraphs 701-719 of the Regulations). The

Purchasing Procedures cover the operational detail and standard documentation which

implement the Financial Regulations.

Purchasing Policy

Appendix A-5 of the Financial Regulations sets out the University's approved

Purchasing Policy.

Tendering Procedure

Appendix A-8 of the Financial Regulations sets out the University's procedures for

purchases valued in excess of £50,000.


PURCHASING PHILOSOPHY

The University aims to establish an effective and efficient organisational structure for all its

purchasing activities to ensure the promotion and achievement of value for money.

The established organisational structure seeks to secure the management advantage of devolved

budgets and decentralised purchasing with arrangements to secure best price, to promulgate good

practice in purchasing and ensure co-ordination of all buying activity across departments.

To achieve these aims, the University has developed a central Purchasing Office responsible for the

development of a purchasing strategy, the implementation of good purchasing practice, and the

provision of professional purchasing advice across the University.

Within each School and Service, the University has implemented the role of 'Lead Purchasers' to

focus the purchasing activities and to develop a common approach to purchasing. Lead Purchasers

are assisted by the central Purchasing Office in areas such as contract compliance, purchasing

procedures, the formulation of a Buyers Guide and the negotiation of standard item goods/services

for use across all faculties and services.

Senior management of the University is concerned with the achievement of a comprehensive and

consistent overview of the University's purchasing and supply policies and activities, including

training and the application of professional purchasing skills to achieve value for money.

The purchasing philosophy underpins the purchasing policy of the University, and the

implementation of the policy is detailed in the following procedure notes.


PURCHASING POLICY

The University's Views on Purchasing

The University seeks to ensure that its operational activities are consistent with, and supportive of,

the Mission Statement and its associated values and aims, and are consistent with the policy stances

taken by the institution on equal opportunities, regional affairs and environmental issues. The

University, therefore, wishes to ensure that the process of the purchasing of goods for the

University is sensitive to environmental factors, that it shows commitment to the region by,

wherever possible, procuring goods from local firms, and that it facilitates equality of opportunity

through contract compliance measures. These principles of purchasing will only be adopted,

however, where value for money can be achieved.

Policy Statement on Purchasing

The University's Purchasing Policy is derived from the Mission Statement and associated values

and aims. The Purchasing Policy will also operate within the wider framework of the Financial

Regulations and legislative requirements.

The Purchasing Policy is as follows: -

1. The University will seek to achieve value for money in all purchases.

2. Environmentally friendlier products will be purchased, wherever possible.

3. Wherever possible, the University will not deal with companies who are known to operate

discriminatory practices. All University contracts will include a clause upon which contract

compliance will be sought.

4. Subject to European directives, products will normally be purchased within the North West

of England and, wherever possible, in Lancashire and Cumbria.

5. Goods and Services will be purchased from within approved contracts and ranges where

available.

6. Purchasing will be on the basis of "just-in-time" to prevent unnecessarily large levels of

stock being maintained.

Principles of Implementation

All contracts for standard items and environmentally friendlier products (as defined in the

purchasing procedures) will be negotiated by the Head of Purchasing. Major items and group

purchases (as defined in the purchasing procedures) will be technically specified by the specialist

staff, and the Head of Purchasing will undertake all contract negotiations.


PURCHASING PROCEDURES

1: SERVICES

The role of the Purchasing Office within the University is to formulate Purchasing Policy, co-

ordinate purchasing activities within the University, provide professional purchasing and insurance

advice and assistance to all parts of the University Group.

In general, the Purchasing Office shall be responsible for the following on behalf of the University

Group:

Central Role - The Purchasing Office has a responsibility for all major purchases of

non-pay expenditure, including Capital.

Contract Development - Commodity Research; Contract Strategy; Supplier Appraisal; Contract

Reviews; Supplier Management.

Tender Process - Production and issue of documents; Supplier Appraisal; Commercial Evaluation;

Contract Award.

Operational Issues - Professional Purchasing advice and guidance relating to: acquisition of goods

and services; assistance with compilation of Specifications; obtaining quotations; commercial

negotiations; sourcing of Suppliers and commodities.

For further information about the services provided by the Purchasing Office and specific detail

relating to standards and time scales, please refer to the Service Standards for Purchasing Office on

the Purchasing Office web site Purchasing service standards.

Environmentally friendlier products are those products and services, which are generally

recognised as providing a positive environmental performance and contribute to achievement of the

University‟s Sustainable Development Strategy. In recommending the adoption of these products

or services to the University's Environment and Sustainable Development Steering Group, the

Purchasing Office will ensure that value for money issues are addressed. Following approval, the

products will appear in the Buyers Guide.

http://www.uclan.ac.uk/information/services/finance/purchasing/purchasing_service_standards.php


2: PRIMARY BUDGET HOLDER

The Financial Regulations of the University Group (see paragraphs 501 - 516) detail budget policy

and budgetary control.

Primary Budget Holders are defined as persons to whom budget responsibility has been delegated

by the University Board or by the Vice-Chancellor.

Primary Budget Holders are authorised to approve expenditure, ensuring:

- the goods and/or services are necessary and the expenditure which will be incurred can

be contained within that part of the budget for which they are responsible;

- established contracts or supply arrangements as contained in the Buyers Guide are

utilised wherever possible;

- where alternatives are available, the purchase represents economy (using the whole life

costing method) and operational efficiency, and the advice of the Purchasing Office has

been sought where necessary;

- action is taken on incorrect or poor quality deliveries and/or services, and that the

Purchasing Office is advised of such instances;

- the correct purchasing route has been taken in accordance with the specified purchasing

limits, (see paragraph 702 of Financial Regulations).

Secondary Budget Holders are defined as persons to whom budget responsibility has been delegated

by a Primary Budget Holder.


3: AUTHORITY TO ORDER

The responsibilities and authority of Primary and Secondary Budget Holders are defined in

Financial Regulations.

Purchase Orders to be issued for any goods or services necessary may be authorised by a Budget

Holder with the following exceptions:

- The Supplier attempts to impose terms and conditions which conflict

with the University's Standard Conditions (especially payment

terms); only the Head of Purchasing, as nominee of the Group

Executive Director of Finance, may vary the Standard Conditions

under which the University trades;

- The single or cumulative value is in excess of £5,000 and three

quotations have not been obtained;

- The single or cumulative value is in excess of £50,000 and has not

been subject to the Tendering procedure;

- The purchase is for IT equipment: this necessitates additional

authorisation by the Head of LIS

If there are any doubts or concerns with regard to the authority necessary to make a particular

purchase, please do not hesitate to contact the Purchasing Office for advice and assistance.

Summary of Purchasing Limits

Financial Regulations establish a Purchasing Limit of £5,001 - £50,000 where the requirement is for

3 written quotations (i.e. formal offers with fixed pricing). Purchasing Office involvement may be

sought within this limit to assist in this process.


Value of Order/Contract

(Exclusive of VAT)

Purchasing requirements

Up to and including £1,000 Estimated price

£1,001 - £5,000 Estimated price subject to competition

£5,001 - £50,000 Minimum of 3 written quotations

£50,001 - £173,000 Minimum of 4 Tenders

More than £173,000 EU Tender procedure

Design and Build Contracts Maximum of 4 Tenders

Low Value Orders

The process of issuing Purchase Orders has a significant administrative resource cost (time spent in

raising order, actioning copies, processing invoice, processing cheque, impact on finance system,

etc.). Therefore, for low value purchases, the University purchasing card should normally be

utilised.


4: REQUEST TO PURCHASE

The Buyers Guide details all supply arrangements currently in force and will be regularly updated

by the Purchasing Office. Where goods/services are required which are not referred to in the Guide

and have a value (singly or cumulatively) of between £5,000 and £50,000 (exclusive of VAT), then

the Purchasing Office can assist in the acquisition process. A Purchasing Request Form may be

completed and sent to the Purchasing Office for action to facilitate this. The Purchasing Request is

purely an internal document and must not be transmitted to Suppliers as an intention to purchase.

Alternatively, an email request may be sent containing all information detailed below.

When completing a Purchasing Request Form (available on the Purchasing Office web site) or

submitting an email request, the following details must be provided:

- Quantity and description of the goods/services required, including any technical

specifications or recognised Standards;

- Potential and/or preferred Suppliers;

- Estimated and/or maximum (budget) cost;

- Details (or attached copies) of any informal quotations obtained;

- Full delivery requirements - date (or period)/location/recipient;

- Authorised Budget Holder's signature.

From receipt of a fully completed Purchase Request Form / email, the Purchasing Office will

(within the time scales defined in Service Standards):

- Advise whether a supply arrangement already exists;

- Aggregate the request with requests from other Departments and Services as

appropriate;

- Source quotations/information from Suppliers and make recommendations for purchase

to the budget holder;

- If unable to locate minimum number of Suppliers, advise the budget holder to submit a

waiver request to the Head of Purchasing


5: SELECTION OF POTENTIAL SUPPLIERS

In line with good purchasing practice, the University needs constantly to monitor and limit its

established Supplier base in order to minimise administration resource costs and maximise bulk

purchasing power.

Details of existing supply agreements are listed on the Purchasing Office website under the Buyers

Guide. This is constantly updated as contracts are renewed and new contracts are established.

All suppliers must be set up on Agresso before purchases can be made (see section 18) unless the

University Purchasing Card is being used to place the order.

During Quotation or Tender exercises, user Departments may recommend Suppliers to the

Purchasing Office for technical reasons. There is no guarantee that such Suppliers will be successful

or acceptable once the Purchasing Office has undertaken a commercial evaluation. Where strong

technical recommendations prove commercially unsound, the Purchasing Office will liaise with the

User Department to reach an acceptable solution.

The Head of Purchasing will evaluate the level of input for the University necessary to balance the

costs of obtaining further quotations against the likely benefits or value for money issues. The

Head of Purchasing will make recommendations, where necessary, to the Group Executive Director

of Finance.


6: INVITATIONS TO TENDER/QUOTE

The University will seek to achieve value for money in all purchases.

Tenders

Any single or cumulative (over any 12 month period) purchase likely to be in excess of £50,000

(excluding VAT) may be subject to the University's formal Tendering Procedure. The Head of

Purchasing will make recommendations to the Group Executive Director of Finance regarding any

necessary Contract Strategy.

A copy of the Tendering Procedure may be obtained from the Purchasing Office website

In order to commence the Tendering process, a standard Tender Request Form should be completed

and forwarded (with Specification etc.) to the Purchasing Office. A copy of the Form may be

obtained from the Purchasing Office.

Quotations

It is recognised that for most purchases of goods or services below £5,000 (excluding VAT), it is

unlikely that the purchaser within the department will require specialist or professional purchasing

input. Quotations for these purchases are still likely to generate savings for the purchaser.

Standard Conditions have been developed (please refer to the website - Terms and conditions)

which will apply to all purchases made by the University, thereby reducing commercial risk in the

procurement process.

Where it is intended to make a purchase from a Supplier not set up on Agresso, the procedure

outlined in Approved Suppliers must be followed before issuing a Purchase Order.

For purchases, which are greater than £5,000 in value (over any 12 month period ) but below the

Tendering threshold, a Purchasing Request Form or email detailing requirements should be created

if the Purchasing Office is to be involved in obtaining quotations. Quotations may be obtained by

departments but must then be forwarded to the Purchasing Office for confirmation / clarification.

A standard request for Quote form is available from the Purchasing Office website to ensure that

suppliers are complying with the University‟s standard terms and conditions. This form must be

used for all quotations regardless of value to ensure suppliers comply with the University‟s standard

terms and conditions.

https://staff.uclan.ac.uk/11898.htm




7: EU PROCUREMENT LEGISLATION

INTRODUCTION

The primary function of the European public procurement legislation is to open each Member

States‟s public sector purchasing to intra-community competition. The legislation is founded on

two main principles of non-discrimination (i.e. that a potential, or actual, tenderer is not

discriminated against because of their nationality) and transparency (i.e. that the contract awarded

is openly advertised and awarded using objective procedures that will withstand scrutiny. These

principles are fully compatible with the UK government‟s policy which is that the public sector‟s

purchasing decisions should be based on value for money achieved through open competition.

The legislation which impacts upon the purchasing practices of UK public sector bodies was

originally enacted via three distinct Statutory Instruments in the early- to mid-1990s, but all three

have now been superseded by a „consolidated‟ European Directive which was introduced into UK

law on 31 January 2006 (Public Contracts Regulations 2006, Statutory Instrument No.5).

The 1990s Regulations placed a responsibility on public sector contracting authorities (which

includes universities) to advertise certain types of contract above pre-determined values in the

Official Journal of the European Union (OJEU), and thereafter deal with the tendering and award of

such contracts using a pre-determined set of procedures and practices. The 2006 legislation

incorporates and refines most of the principles and practices described in the earlier Regulations,

whilst broadening the scope of the legislation to cover novel or hitherto less-regulated areas of

public procurement, in particular environmental issues, electronic tendering, electronic auctions and

framework agreements.

The Head of Purchasing is responsible for guidance in ensuring that the University complies with

its legal obligations concerning EU Procurement legislation. All departments and sections of the

University are required to co-operate fully by notifying the Head of Purchasing of any purchases

likely to exceed the appropriate threshold under any of the above Directives. All purchases under

the Works Directives must be notified to the Director of Facilities Management.

1 DEFINITIONS

1.1 Public Supply Contracts

A public supply contract is one for the purchase, lease, rental or hire purchase, with or

without option to buy, of products. It includes siting and installation of the products where

these are part of the main purchase.

1.2 Public Services Contracts


A public service contract is one where the purchaser engages a contractor (the service

provider) to provide services. There are two categories of services - Part A (to which the

Services Regulations apply in full) and Part B (where the tender is only subject to some of

the requirements in the Regulations, namely rules regarding technical specifications and the

publication of contract award notices). Parts A and B appear as lists in annexes to the

Directive. If a contract includes both products and services, the element which has the

highest value determines whether it is to be treated as a public supply contract or public

service contract.

1.3 Design contests

Design contests are procedures for obtaining plans or designs which are intended to lead to

the award of a public service contract, often including the offer of a prize or payment to the

participants. The value of the contest for the purposes of assessing whether it exceeds the

threshold is the value of the resultant public services contract plus the value of the prize.

1.4 Public Works Contracts

A public works contract is one for the execution, or design and execution, of civil

engineering or building works. A list of these works appears as an annex to the legislation.

The list is surprisingly wide-ranging; including such activities as demolition work, test

drilling, plumbing, wiring, installation of fixtures and fittings, painting and wallpapering and

renting of construction or demolition equipment with an operator. Where the contract

involves supplies and/or services as well as works, it should be classified according to its

predominant purpose.

A public works concession is a contract where the consideration (payment) for the works is

wholly or partly the granting of a right to exploit the works.

Subsidised works contracts are works contracts to which public authorities (which includes

universities) contribute more than 50% of the cost. Even though the contract might be

awarded by a private sector body, the public authority must ensure that the Regulations are

complied with. Note that the threshold value applies to the total contract value, not the

value of the subsidy.

1.5 Framework Agreements

A framework agreement can be made with one or more than two suppliers. Its purpose is

to establish the terms governing multiple purchases to be made over a particular period.

Special rules apply to the formation and operation of framework agreements; these are

described in more detail below.

1.6 An electronic auction can be used after full evaluation of initial tenders, where final bids are

ranked automatically, usually on the basis of price. The process is unsuitable for many

services and works contracts. Specialised software is required to undertake electronic

auctions, and there are special EU rules governing their conduct which are outside the scope

of these procedures.


2 VALUATION OF A CONTRACT

The proposed tender will fall within the Regulations if its estimated value is greater than the

prescribed thresholds. These have been summarised in Table 1 below.

The Regulations provide guidance on how to estimate the value of proposed tenders. If,

after calculation, the value of the contract exceeds the appropriate thresholds, it will fall

within the scope of the Regulations. The method of calculation used depends upon the type

of purchase to be undertaken.

Regulations Threshold

European Threshold

Equivalent UK*

Supply Contracts 200,000 Euros

£173,934

Service Contracts 200,000 Euros

£173,934

Works Contracts

inc. Subsidised Works

Contracts

5,000,000 Euros

£4,348,350

* Calculated 1 January 2012, revised every 2 years

Table 1: Relevant Thresholds for Public Procurement Regulations

(VAT and Insurance Premium Tax are excluded)


2.1 Public Supply and Public Service Contracts

2.1.1 If the contract is for a “one-off” purchase, estimate the total value including all component

parts, transport costs, installation and commissioning.

2.1.2 The value of a series of contracts, or repeat orders, for the same or similar products, should

be estimated over a reasonable period (e.g. expected length of requirement.) This can be

either historically or in the future. Note, however, that requirements cannot be

disaggregated in order to avoid the Regulations.

2.1.3 Fixed term contracts for services or for the lease, rental or hire purchase of products should

be estimated for the duration of the contract. Where the contract is part of a series, the

whole series should be estimated over a 12 month period or longer, if appropriate. If a

contract is for a fixed period, say one year, but has an option to extend for up to two

additional years, then regardless of whether or not there is uncertainty about exercising the

extension option, the duration has to be taken as 3 years (the maximum duration in this

example) when estimating its value.

2.1.4 If a contract, or series of contracts, for services is for an indefinite or uncertain period, or the

total price is not known but the contract period exceeds 48 months, then its total value

should be calculated by multiplying the estimated monthly value by 48.

Note: Where the proposed contract includes more than one of the above elements, the

value must be determined by calculating the highest possible value.

2.2 Specific types of Public Service Contract

For the following types of services, the values to taken as a basis for calculating the

estimated contract values are:

- insurance services: the premium payable and other forms of remuneration;

- banking and other financial services: the fees, commissions, interest and other forms

of remuneration;

- design contracts: fees, commission payable and other forms of remuneration.

2.3 Public Works Contracts

2.3.1 Estimate the value of the whole works contract.

2.3.2 Where the contract is part of a series necessary to carry out a project, it is the total value of

the aggregated contracts, which will determine if the contract falls within the scope of the

Regulations.


2.4 Waivers for „Small Lots‟

For Public Supply, Service and Works purchases where the contracts are awarded at the

same time in the form of separate lots, it is the aggregated value of the lots which will

determine whether the Regulations apply. However, application of the threshold can be

waived in respect of lots below the Small Lots thresholds identified in the above table,

provided that the aggregate value of those lots does not exceed 20% of the value of the

overall aggregate value of the lots as a whole.

Example: Public supply contracts for a particular commodity will be let in five lots: three of

an estimated £20,000 each and two of £130,000 each. Thus the aggregate value of the

contracts is £320,000 which clearly exceeds the EU threshold. However, each of the three

small contracts falls below the Small Lots threshold. In aggregate, they comprise slightly

less than 20% of the overall value of the five lots (18.75% to be precise). Therefore the

three small contracts are not subject to the EU tendering process. The two larger lots still

collectively exceed the threshold, and must therefore be subjected to an EU tendering

process.

Note: Where the proposed contract includes more than one of the above elements,

the value must be determined by calculating the highest possible value.

3 SPECIFIC EXCLUSIONS

Contracts for the following types of purchase are excluded from the procedures:

a) Land, existing buildings or other immovable property or rights thereon. However,

financial services associated with the acquisition are subject to the procedures.

b) Programme material for broadcast, and contracts for broadcasting time.

c) Arbitration and conciliation services.

d) Transactions relating to securities or other financial instruments (particularly where

these are to raise capital), and central bank services.

e) Employment contracts.

f) Research and development services, providing the service is wholly paid for by UCLan.

However, where the benefits accrue exclusively to UCLan for use in its own affairs,

the EU procedures do apply.


4 TENDERING PROCEDURES

Tenders may be sought by one of four procedures: Open, Restricted, Negotiated or

Competitive Dialogue. Open and Restricted are by far the most commonly-used procedures.

4.1 Open Procedure

A notice is published in the OJEU stating that tenders will be sought under the Open

Procedure. All potential suppliers requesting tender documentation by the deadline stated in

the notice must be sent the documentation within 6 days of their request. Alternatively the

documentation can be made available to all interested suppliers on the internet. The

advantage of the Open Procedure over the Restricted Procedure is that minimum timescales

are shorter. However, if there are a large number of potential suppliers in the marketplace,

use of the Open Procedure can result in a large number of tender submissions, which in turn

increases the assessment workload. One way of attempting to control the number of tenders

is to stipulate minimum levels of economic and financial standing or technical/professional

ability in the contract notice. Care must be taken to ensure that the minimum levels are

related to and proportionate to the subject matter of the contract, and that the levels used do

not exclude smaller companies unreasonably.

4.2 Restricted Procedure

A notice is published in the OJEU stating that tenders will be sought under the Restricted

Procedure. Firms communicate, in response to the notice, their interest in tendering for the

contract. The contracting authority, using criteria stated in the notice (e.g. legality to

operate, financial and economic standing, and technical/professional ability) which must be

drawn from a list provided in the legislation, selects firms who will be invited to submit a

tender.

It is permitted to state the number of firms the contracting authority intends to invite to

tender, sometimes expressed as a range. This is the main advantage of the Restricted

Procedure over the Open Procedure, since it restricts the number of tenders and

consequently reduces the amount of effort required to evaluate them. The range must be

stated in the contract notice and in any event the minimum number permissible is 5. If the

number of eligible respondents falls below 5, the process may continue, providing there is

still genuine competition. However no “new” candidates can be introduced at this stage and

the selection criteria cannot be artificially relaxed to allow more firms to pass to the tender

submission stage.

The criteria stated in the notice cannot deviate from those set out in the legislation. Thus it

can often be very difficult to differentiate suppliers so that enough of them can be eliminated

at the first (often called the „prequalification‟) stage even after minimum levels of economic

and financial standing or technical/professional ability have been stipulated. Any exclusion

of a supplier at this point must be fully justifiable in terms of its failure to match the

selection criteria stated in the original contract notice.

If there is likely to be a large number of applications from interested firms, great care must

be taken to develop a prequalification questionnaire that has the desired effect of being able

to be used effectively and fairly to differentiate the firms‟ capabilities, so that only the

required number of firms passes through to the tendering stage.


4.3 Negotiated Procedure

Under the Negotiated Procedure the terms of the contract are negotiated directly with one or

more suppliers. However, the procedure can only be used in the specific instances described

below. Moreover, the Office of Government Commerce advises that use of the Negotiated

procedure is likely to decline as the Competitive Dialogue procedure becomes more widely

accepted.

It is NOT mandatory to advertise the Negotiated tender in the OJEU unless specifically

stated to the contrary below. It is permissible for the Negotiated Procedure to take place

in successive stages to gradually reduce the number of tenders, providing the contract notice

or specification states that this is the intention.

4.3.1 For public works, public supplies and public service contracts:

a) Tenders received under a previous competitive exercise held under the Open, Restricted

or Competitive Dialogue procedures have been irregular, or unacceptable. The

proposed terms of the contract must be substantially unaltered from those originally

used. The resultant tender must be advertised in the OJEU, giving the reasons for use

of the Negotiated Procedure.

Note: If all of the participants in the Open or Restricted exercise are invited to

negotiate then there is no need to advertise the use of the Negotiated procedure.

However, if one or more of the participants from the earlier tender exercise who

submitted tenders is rejected, then the use of the Negotiated procedure must be

advertised in the OJEU. In both instances, the terms of the Negotiated tender must be

substantially unchanged from the original exercise undertaken under the Open or

Restricted procedure.

b) A competitive exercise held under the Open or Restricted procedure has resulted in no

applications or tenders, or unsuitable tenders.

c) There is only one supplier available for technical or artistic reasons or on account of

exclusive rights.

d) Extreme urgency exists for reasons that are unforeseeable and are not attributable to

the contracting authority.

e) In exceptional cases where the nature of the works, supplies or services or the risks do

not permit overall pricing, the Negotiated tender must be advertised in the OJEU.

4.3.2 For public supply contracts:

a) The goods covered by the contract are to be manufactured purely for the purpose of

research, experiment, study and development; but not when the goods are to be

purchased or hired to establish their commercial viability or to recover their research

and development costs.

b) The goods covered by the contract are partial replacements for, or additional to, existing

goods or an installation, or when obtaining the goods from another source would cause


problems of incompatibility or disproportionate technical difficulties. Such extensions

may not, as a general rule, be for more than three years.

c) The goods are purchased on a commodity market.

d) The goods are being purchased on particularly advantageous terms because the supplier

is being wound up, is bankrupt or in receivership.

4.3.3 For public service contracts:

a) Where the contract follows a design contest and there is more than one successful

candidate. (Note that the Negotiated procedure cannot be used for a Works contract in

this manner.)

b) For insurance, banking and investment contracts, and intellectual services such as the

design of works, but only if the activities cannot be defined well enough for the Open

or Restricted Procedures to be used. The tender must be advertised in the OJEU.

4.3.4 For public works contracts:

Where the works are to be carried out solely for the purposes of research, testing or

development and not with the aim of ensuring profitability or recovering research and

development costs. The tender must be advertised in the OJEU.

4.3.5 For public works and public service contracts:

a) Additional works or services not included in the original contract where the need has

arisen through unforeseen circumstances, and where they cannot be technically or

economically separated from the original contract without major inconvenience to the

contracting authority, or where they are necessary for completion of the contract.

However, the Negotiated procedure cannot be used where the aggregate value of the

additional works or services exceeds 50% of the value of the original contract.

b) Where new works and services which repeat the initial contract are being carried out

by the same supplier, providing the original contract was awarded through the Open or

Restricted Procedure, and the original advertisement mentioned the possibility of

additional requirements. However this procedure may only be used during the three

years following the end of the original contract.

Note: A contract award notice must be published for every case where the Negotiated Procedure is

used regardless of whether the tender exercise was advertised or not. It is advisable to hold a report

on file should information be requested by HM Treasury on behalf of the European Commission.

4.4 Competitive Dialogue Procedure

This procedure is suitable only for particularly complex contracts, for example Public

Private Partnership (Private Finance Initiative) contracts where the contracting authority is

unable to specify its requirements at the outset without entering into detailed discussions

with potential suppliers. The aim of the discussions is to identify and compare possible

solutions before requesting final tenders.


A contract notice must be published in the OJEU setting out the needs and requirements of

the contracting authority. A dialogue may then commence between the contracting

authority and suitable candidates in which all aspects of the contract can be discussed. Care

must be taken to ensure that all candidates are treated equally. From a practical point of

view, this can best be demonstrated by keeping a detailed record written record of all

discussions which is then signed off by both the Supplier and the University.

When the contracting authority has identified a suitable solution or solutions, it declares that

the dialogue is concluded and requests that tenders be submitted. It is important that the

request and the resultant tenders are as comprehensive as possible because the scope for

post-tender negotiation is even more limited than in the Open and Restricted procedures

(such negotiations having already taken place in the dialogue phase).

4.5 Choice of Procedure

Under the Regulations, universities have a free choice between the Open and Restricted

procedures.

Use of the Negotiated or Competitive Dialogue procedure is unusual, and is more likely to

invite the scrutiny of the European Commission than the other procedures. Where it is

agreed that the Negotiated or Competitive Dialogue procedure can be used, the contracting

authority must justify its choice and take great care to ensure that the reasons are properly

documented.

5 FRAMEWORK AGREEMENTS

Framework agreements set out the terms and conditions under which specific purchases

(„call-offs‟) are made over a pre-determined period of time. They are particularly useful for

creating a panel of several approved suppliers who then compete with each other for each

„call-off‟.

Framework agreements can be made either with one supplier or with a panel of at least three

suppliers, and must not exceed four years‟ duration unless there are exceptional

circumstances. The suppliers are appointed through a tendering process, usually following

the Open or Restricted procedure.

Where there is one supplier, the contracting authority should ask the supplier to provide

specific prices or terms for „call-off‟ orders within the parameters set out in the original

Framework agreement.

It is more usual for Framework agreements to have a panel of three or more suppliers. In

some cases it is a straightforward task to determine which of the suppliers should win the

„call-off‟; for example, where all of the suppliers on the panel have fixed price lists or there

is pre-agreed mechanism for calculating prices for comparable items. Here, the contracting

authority would simply compare the prices and select the lowest without re-opening

competition. In cases where the task is not so clear-cut, a process of „mini-competition‟ is

undertaken whereby the contracting authority issues a statement of requirements to all of the

suppliers on the panel capable of undertaking the task. These proposals are then evaluated

in accordance with the criteria set out in the original Framework tender.


6 TIMESCALES

In each of the procedures, there are timescales laid down regarding publication of notices,

invitations to tender, receipt of tender submissions etc. These timescales vary with the

procedure used and are summarised in Table 2 below.

The publication of a Prior Information Notice (PIN) enables the time periods for the Open

and Restricted procedures to be shortened. The PIN is intended to give potential suppliers a

brief overview of the forthcoming tender requirement. The PIN is only permissible as a

means of shortening timescales if it is sent for publication between 52 days and 12 months

before the date the actual contract notice is sent.

In cases of extreme urgency it is possible to use accelerated Restricted or Negotiated

procedures. The circumstances under which the shortened time periods can be used are

strictly defined and must be justifiable. The cause of the „extreme urgency‟ must be outside

the contracting authority‟s control. For example, having to spend funds before a specific

date would not be considered an appropriate reason.

Where a contract is voluntarily advertised, i.e. where it is not expressly covered by the

requirements of the Directives or Regulations, then the timescale requirements are not

binding in relation to the tender procedures. Thus, it may be beneficial for a contracting

authority to give wider exposure to its requirements by choosing to use the European forum

even where not absolutely necessary.

Table 2: Summary of prescribed time periods

Procedure

Phase

Days

Open Minimum time for receipt of tenders from

date contract notice sent

45

Reduced when PIN published to, generally

But never less than

36

22

Restricted Minimum time for receipt of requests to

participate from date contract notice sent

( reduced by 7 days for electronic system)

30

Minimum time for receipt of tenders from the

date invitation sent

( reduced by 5 days for electronic system)

35

Reduced when PIN published to, generally

But never less than

36

22

Restricted

Accelerated

Minimum time for requests to participate

from date contract notice sent

15

Minimum time for receipt of tenders from the 10


date invitation sent

Competitive

Dialogue and

Negotiated

Minimum time for receipt of requests to


37

Negotiated

Accelerated

Minimum time for receipt of requests to


15

Notes:

a) The time period starts on the day the notice is despatched to the OJEU, not the date

when it is actually published. If the last day is a Saturday, Sunday or public holiday

then the receipt or closing date will be the first ordinary working day thereafter.

b) PIN = Prior Information Notice.

7 CONTRACT DOCUMENTATION

Once the contracting authority has established that the proposed contract falls within the

remit of one of the Regulations, and has selected which procedure to use, the contract must

be advertised and documentation prepared, paying special attention to the technical

specification and selection criteria.

7.1 Advertising Requirements

The Open, Restricted and, where applicable, Negotiated procedures require that the

contracting authority places a notice in the OJEU, stating its intention to seek offers in

respect of the perceived need. The notice must take into account the timescales detailed in

Table 2 above.

It is important that the maximum anticipated duration of the contract is stated in the notice.

For example, if the expected duration is 3 years but there is a possibility that it could be

extended to 5 years, then state “up to 5 years” in the notice. The circumstances under which

a contract extension might be granted can then be described with more precision in the

invitation to tender document.

The contracting authority cannot advertise the contract in its local or national press

before the notice has been despatched to the OJEU. The advertisement must not contain any

more information than is contained in the OJEU notice.

7.2 Technical Specifications

When preparing the documentation it is necessary to ensure that the specifications for the

product are non-discriminatory. In particular, the specification must not be based upon the

specification of an existing product from one supplier. This would be in breach of the

regulations and is likely to invite challenges from other suppliers. If the requirement can

only be expressed by reference to a brand or proprietary name, then the name must be

accompanied by the words “or equivalent”.


The technical specification should be defined by reference to European specifications where

they exist, in the following order of preference:

a. National standards incorporating European standards

b. European technical approvals

c. Common technical specifications, e.g. Electromagnetic Compatibility

d. International standards

e. Other technical reference systems established by the European standardization

bodies

Only where none of the above standards exist is it appropriate to refer to national standards.

All references must be accompanied by the words “or equivalent”.

There are, however, instances where it is permissible to derogate from the prescribed

hierarchy of specifications. Again, like other exceptions, these are clearly defined in the

Regulations, for example, where there exists a statutory duty in relation to health and safety;

technical reasons of conformance; incompatibility or disproportionate technical differences

or disproportionate costs; or innovative reasons.

Technical specifications may define environmental characteristics, e.g. production method

and/or environmental impact. Methods of defining environmental impact must be drawn up

using scientific criteria that are accessible and understandable to all parties. For works and

services, information about the supplier‟s technical ability with regard to environmental

management measures may be requested, but only if is appropriate. The standards indicated

in the tender documentation must always be EU standards or equivalent.

8 SUPPLIER SELECTION CRITERIA

Potential tenderers may be excluded from tendering if they do not meet prescribed criteria,

which should be designed to determine their economic and financial standing and their

capability of fulfilling the requirements of the contract. These criteria must be stated in the

notice published in the OJEU and/or in the contract documentation.

A firm may be ineligible if, for example, it is found to be in financial difficulty, or guilty of

misconduct. It may be asked to provide details of its financial standing, and its technical

capacity. The contracting authority may select which criteria it considers appropriate in

relation to economic and financial standing or technical capacity.

If a company marginally fails to meet one or more of the criteria, then a second opinion may

be sought from a third party credit-referencing agency. If the rating given by the agency

defines the company as low to medium risk, then a decision can be made to let the company

proceed to the next phase of the tender process. If however the rating is high risk then the

company should not proceed any further.

Standards may be waived by the Group Executive Director of Finance (or nominee).

Any selection/shortlisting exercises must be even-handed, consistent with stated criteria and

must not discriminate on grounds of nationality or geographical location.


9 CONTRACT AWARD

9.1 Award Criteria

Having ascertained the suitability of the tenderers, the contracting authority must award the

contract to the submission which:

offers the lowest price, or

is most economically advantageous to the contracting authority – in addition to price, this

includes factors like quality, technical merit, aesthetic and functional characteristics,

environmental characteristics, running costs, cost-effectiveness, after-sales service and

technical assistance, delivery date and delivery period or period of completion.

In most cases it would be extremely unwise to award the contract on the basis of price alone

without giving any consideration to other factors.

The award criteria must be listed in the contract notice and/or in the invitation to tender

document. The relative weighting given to each criterion must also be stated. This can be

expressed in terms of a range with an appropriate maximum spread. These criteria and

weightings must be used in the tender evaluation; they cannot be altered after publication.

9.2 Abnormally Low Tenders

Tenders may be rejected if they are abnormally low but only after the tenderer has been

given an opportunity to justify/confirm or withdraw the offer submitted.

10 NOTIFICATION OF CONTRACT AWARD

10.1 Contract Award Notice

The contracting authority must publish a contract award notice in the OJEU within 48 days

of the contract award or establishment of a framework agreement. This requirement also

applies to categories of public service contracts covered by Part B (see section 1.2 above). It

is important to observe the mandatory standstill period (see section 10.3 below).

10.2 De-briefing Unsuccessful Tenderers

Under the Regulations, after an award decision has been made, the unsuccessful tenderers

may request a de-briefing to ascertain why their bid was unsuccessful. This de-briefing, if

requested, should take place within 15 days of the request. A tenderer can request an

accelerated debrief within 2 working days of the date of dispatch of the decision notification.

The contracting authority must then provide a debrief within 3 working days of the end of

the standstill period. If the tenderer requests a debrief outside the 2 working days limit, then

the debrief must be provided within the normal 15 day period.

Great care must be taken during de-briefing to avoid giving the tenderer information which

is confidential to other tenderers. Where practicable, the overall score obtained by the

winner of the tender and the tenderer being de-briefed should be given; avoid giving further

details of other tenderers‟ bids. A poorly-handled de-briefing can result in resentment and,


at worst, a legal challenge to the selection decision from an aggrieved supplier. The

Purchasing Office must be present at any debriefing sessions.

10.3 Mandatory standstill period

As soon as a decision has been made to award a contract or conclude a framework

agreement, the contracting authority must inform all bidders (preferably by fax or email).

They should be provided with details of the award criteria; their own score and that of the

winner (where practicable); the name of the successful tenderer; the reasons for the decision

including the characteristics and relative advantages of the successful tender and reasons (if

any) why they did not meet the technical specification. The award notice must contain a

statement of either when the standstill period is expected to end or the date before which the

contracting authority will not enter into a contact. The contracting authority must then wait

10 days before actually entering into the contract or concluding the framework agreement.

10.4 Reporting Requirements

Contracting authorities are required to report, for each public supply and services contract,

details of the value, procedure, type of goods and the nationality of the successful tenderer to

H.M. Treasury. Purchasing Office will collect this information annually and issue a report

on behalf of the University.

11 DISPUTES AND REMEDIES

Failure to adhere to the Regulations may cause a legal challenge by an aggrieved supplier, or

investigation by the European Commission. This can result in a contract being suspended or

even completely set aside and/or compensation being paid to tenderers. Purchasing Office

must be contacted immediately if there is any indication that a tenderer is unhappy with

the conduct of a tender or the final result, even if the complaint appears petty or without

foundation, so that action can be taken to avoid escalation.


8: USE OF PURCHASE ORDERS

Purchase Orders are formal University documents which, when issued to an external party, commit

the University to expenditure and form a legally binding Contract with the external party. An order

must be raised prior to the ordering of any goods or services (unless the University Purchasing card

is being used.) Failure to do so will result in a breach of Financial Regulations (see paragraphs 705-

706.)

Purchase Orders are individually numbered and are obtained through Agresso.

In order to reduce the commercial risk in the use of such documentation, Purchase Orders

must always be approved by the Budget Holder and any over £5,000 are approved by the

Purchasing Office. The University‟s Terms and Conditions are available on the Internet as stated

on the Order Form. Only the Head of Purchasing, as nominee of the Group Executive Director

of Finance, may vary the Standard Conditions under which the University trades.

Where Suppliers issue an 'order acknowledgement', then User Departments should check quantity,

price and delivery details against the original Order and discrepancies taken up with the Supplier

immediately. Of particular importance is the need to check whether the acknowledgement

attempts to enforce the Suppliers Conditions of Sale. If so, this must be challenged by fax or

letter before receipt of goods or services: please contact the Purchasing Office for assistance, if

necessary.

Once a Purchase Order has been issued, a check to determine progress on the delivery of the

products or services may be required (either before or after the specified date). The responsibility

for progress chasing (expediting) rests with the Budget Holder/User Department issuing the

Purchase Order.

Any unreasonable delays or erroneous deliveries from a Supplier who is listed in the Buyers Guide

must be made known to the Purchasing Office so that appropriate action can be taken.

Required delivery dates must be stated when raising Purchase Orders so that progress can be

checked against such dates. The use of 'Urgent' or 'ASAP' are not acceptable terms for

delivery dates.


9: DEALING WITH SUPPLIERS

All dealings with Suppliers must preserve the highest standards of honesty, integrity, impartiality

and objectivity, while remaining fair, efficient, firm and courteous.

Most transactions between the University and external Suppliers - although forming a legally-

binding contract - usually operate and conclude with relatively few incidents or disputes.

The following guidance points will help to ensure consistency of commercial activity, raise

awareness of contractual issues, and thereby lessen the risk of potential disputes.

1. Please ensure familiarity and compliance with the following:

- Selection of Potential Suppliers (section 5)

- Buyers Guide (section 14)

- Standard Conditions of Contract ( Policies and conditions)

- Code of Conduct (Code of Conduct)

2. It is not a policy of the University to pay for goods/services in advance: please refer to

paragraph 805 of Financial Regulations or contact the Purchasing Office for advice.

3. When requesting quotations careful consideration should be given to the following areas:

- Specification or Operational Requirements

- Usage figures

- Quality standards

- Specified terms/conditions

- Delivery requirements

The UCLan standard quote form should be used to avoid any conflicting terms.

4. All Supplier agreements requiring the signature of a University representative (e.g.

service/rental/maintenance contracts) must be authorised by the Head of Purchasing.

5. In the event of any legal, contract, or general supply dispute arising or likely to arise, advice

from the Purchasing Office should be sought at the earliest opportunity. At all times, a

careful record must be kept of communication with Suppliers, particularly those by

telephone.


http://www.uclan.ac.uk/information/services/finance/purchasing/purchasing_procedures.php




10: USE OF SPECIFICATIONS

In general, a Specification is a description of the product or service required. An effective

Specification should enable Suppliers to tender or quote to the University on an equal basis and

must not show bias towards any one product, brand or Supplier.

Specifications are more likely to be used where the purchase is of significant value (e.g. during the

tender process), but can be utilised in the procurement of complex or specialised low value

commodities.

Guidance for the preparation of Specifications is detailed below:

Drafting checklist

use simple language, avoid using jargon;

define terms, symbols and acronyms;

do not expect the specification to be read by experts; write it so that a layman will understand;

use a logical structure;

be as concise as possible, but keep the meaning clear;

plan and analyse your needs;

arrange the components of the requirement into a logical form matching the evaluation model;

(a good way of doing this is to set out a skeleton structure with the main headings and then add

in sub-headings as necessary;)

do not embed requirements in background information - suppliers may miss them - keep

requirements in their own sections;

list the most important elements of the requirement first and work through to the least

important; and

discuss the requirement with colleagues, other users and procurement staff. During this

process you may also identify other topics you need to include.

endeavour to reduce costs, and increase effectiveness and efficiency to contribute to VFM

endeavour to improve our carbon footprint by considering more environmentally friendly

methods of production/servicing etc.

Review checklist

A good specification should:

state the requirement specification completely, clearly, concisely, logically and

unambiguously;

focus on outputs not how they are to be met;

contain enough information for potential suppliers to decide and cost the goods or services

they will offer, or in the case of negotiated route arrive at realistic budgetary costs;

permit offered goods or services to be evaluated against defined criteria by examination, trial,


test or documentation;

state the criteria for acceptance by examination, trial, test or documentation;

contain only the essential features or characteristics of the requirement;

provide equal opportunity for all potential suppliers to offer a product or service which

satisfies the needs of the user and which may incorporate alternative technical solutions; and

comply with any legal obligations e.g. under UK law, the EEC Treaty, an EC Directive or the

GATT Agreement on Government procurement.

A good specification should not:

over-specify requirements;

contain features that directly or indirectly discriminate in favour of, or against, any supplier,

product, process or source. Discrimination on grounds of nationality is illegal in the EC,

contrary to the GATT Agreement, where applicable, and may not achieve value for money.

Leading Edge Technology

Where equipment is specified at or near the leading edge of technology, it is common for the

specification to be developed in conjunction with one or more suppliers. It is important that

this process does not result in a specification which is so detailed as to eliminate any

effective competition. The focus should be on what the department or research project needs

rather than specifying what the supplier can supply. The approach should be to specify

performance rather than technical details. In the latter case, there is the risk that the final

product will be technically superb but does not do what is required.

In discussing specifications with suppliers it is essential that no commitment is entered into

prior to seeking tenders and quotations.

Include “Extras”

Consider specifying what is wanted on the basis that everything is negotiable. The specification

could include:

provision for on-site tests, and pre-negotiation trials if these are desirable;

a price which is fixed and firm, irrespective of inflation or exchange rate fluctuations;

free delivery, installation and commissioning;

maintenance cover for however long the department needs it;

escrow agreement for software purchases

the price of consumables;

details of spare parts availability for the life of the equipment, together with contractual

notification before the supplier ceases manufacture of spare parts;

handbooks with full maintenance instructions, including circuit diagrams;

training.


11: CONTRACTS

All formal contracts must be authorised by the Group Executive Director of Finance, usually by the

signing of Supplier documentation or Contract Award Forms.

Contracts will often take the form of 'standing offers', i.e. a firm price quotation which remains open

for a specified period (usually 12 months), so that Purchase Orders can be placed against the

standing offer as need arises. The Suppliers' prices are usually based on the University's 'best

estimate' of usage.

Once a contract or standing offer is in place, User Departments must ensure that those goods

or services are not purchased elsewhere, since the University will normally have entered into a

legal agreement for exclusive business with the contracted Supplier.

Minor or temporary price advantages are occasionally offered to User Departments from other

Suppliers. These should be advised to the Purchasing Office but not taken advantage of, since they

would normally jeopardise greater advantages from the established Supplier.

Contracts or standing offers should be placed for a period appropriate to the value and effort

involved in their award process. The Purchasing Office can give advice regarding this issue.

Contracts/supply arrangements should be subject to regular review and a note of the review retained

on the contract file held in the Purchasing Office.


12: PURCHASING CONSORTIUM

The University of Central Lancashire is a member of the North Western Universities Purchasing

Consortium (NWUPC).

The Consortium consists of a number of commodity/service based user groups, representing most

University or Higher Education institutions in the North West of England and North Wales.

The Commodity Groups are:

Admin & Professional Services

Laboratory Supplies

Estates

Computer Supplies/Equipment

Catering

Domestic Supplies & Services

Stationery & Office Equipment

Furniture & Soft Furnishings

Audio-Visual Equipment

Telecommunications

Advantages of membership of the Consortium are:

- increased value for money because of bulk purchasing power;

- consistency of supply arrangements within the sector;

- 'networking' of best practices within user Departments;

- administration resource savings due to unnecessary tender or quotation exercises.

The Head of Purchasing shall make recommendations to the Group Executive Director of Finance

for purchases in excess of £50,000 where a Consortium supply arrangement exists, in order to

maximise value for money.

Details of Consortium contracts or supply arrangements are included in the Purchasing Buyers

Guide.

As a member, UCLan will encourage the consortium to incorporate issues detailed in the

University‟s Sustainable Development Procurement Procedure in future contracts.

Further information relating to the Consortium appears on the website at North Western

Universities Purchasing Consortium

http://www.nwupc.ac.uk/

http://www.nwupc.ac.uk/


13: BUYERS GUIDE

The Purchasing Office has a Buyers Guide on the Purchasing Web site with a listing of all current

contracts or supply arrangements ( Buyers guide)

The Guide covers a large proportion of goods and services purchased by the University. Where any

necessary or regular items are purchased but not contained within the Guide, please advise the

Purchasing Office.

Standard Items and Contracts

As defined in the Buyers Guide (and detailed in Financial Regulations paragraph 701). These are

items normally used and purchased by all user Departments although some items are ordered via

Facilities Management.

The Purchasing Office will update the web page (additions, new contract details, etc.) to ensure that

the Guide remains current.



14: LEAD PURCHASERS' GROUP

An informal Group - established by the Group Executive Director of Finance - seeks to include all

those staff who have departmental purchasing responsibilities.

The Group meets on a regular basis, and the role of the Group is to:

- maintain compliance with all aspects of the University's Purchasing

Policy, Strategy, and Procedures;

- identify and address operational issues relating to the purchasing process;

- discuss and measure Suppliers performance;

- help identify areas for standardisation or new contracts;

- discuss and measure Purchasing Office's performance;

- maintain a fully informed and consistent approach to purchasing activity

within the University.

Purchasing Office staff are members of the Group, and provide Departmental Lead Purchasers with

any necessary guidance and assistance in areas such as contract compliance and purchasing

procedures.

The University has established a Purchasing Strategy, and the Lead Purchasers Group is a focus

point for the implementation of any actions/procedures deemed necessary by the strategy.


15: FINANCIAL HEALTH CHECKS

The Purchasing Office has the responsibility of carrying our financial appraisals on new and

existing suppliers.

Financial appraisals will take the form of a credit report and / or can be extracted from the Suppliers

audited accounts.

Purchasing together with Financial Services will then provide interpretations and advise to the user

department/requester.

Although credit reports and audited accounts provide a good indication of Suppliers financial status

or „health‟, care must always be taken as the information can be up to 12 months out of date.

Due to the diversity and volume of University business it is not appropriate to carry out financial

appraisals on all Suppliers – this will depend on the contract value but is mandatory for all new

purchases / contracts that have been through the tender process.


16: SUPPLIER APPRAISAL

It is an objective of the University to continually improve the quality of goods and services

delivered into the University by external suppliers.

Any problems arising with the supply of goods and services should always be notified to the

Purchasing Office immediately to ensure they are dealt with promptly and are not allowed to

escalate. Staff in the Purchasing office are skilled in dealing with suppliers and should always be

involved in any discussions that take place.

Supplier performance on University contracts are regularly reviewed through the Contract

Monitoring process. Where appropriate, contracted suppliers will attend regular review meetings

throughout the life of the contract. The timings of the meetings will depend on the type of contract,

frequency of issues etc and will be decided between the Purchasing Office, the user department and

the Supplier. Meetings may include discussions regarding the supplier‟s performance and adherence

to the service Level Agreement / contract terms.

Purchasing procedures December 2011 O

17: APPROVED SUPPLIERS

1. Approved Suppliers

An approved supplier is one who has been authorised by the Head of Purchasing to supply

goods and/or services in accordance with Purchasing Procedures; Selection of Potential

Suppliers (section 5) and Dealing with Suppliers (section 9).

University personnel are required to utilise the existing Supplier base for the supply of goods

and services. In considering a variation of supply a user must indicate their intention before

placing an order by completion of New supplier form. The Purchasing Office will then

consider the requirements of the user, evaluate the supplier and will confirm their decision

within TWO working days. The Purchasing Office will then inform the Creditors Office

within Financial Services of their decision by authorising the Application.

Purchase Orders must not be placed with Suppliers until approved by the Purchasing

Office. If the user has already placed an order they must be considered in breach of

Financial Regulations.

Where invoice documents have been processed directly to the Creditors office they will

verify if the supplier exists as an Approved Supplier. If the Supplier does not exist the

document will be returned to the budget holder. As the user will be considered in breach of

Financial Regulations the Head of Purchasing will consider any further action to be taken.

User concerns/problems should be directed in the first instance to the Purchasing Office. The

Purchasing Office will be responsible for maintaining the Supplier database on Agresso.

The payment of Approved Suppliers shall be in accordance with the Creditor Payment

Business Rules. The Purchasing Office can negotiate special terms subject to the cash flow

requirements of the University Group Treasury office to ensure the availability of funds.

Special payment terms must then be communicated to the Creditors office before the invoice

is received.

https://staff.uclan.ac.uk/files/newsupplierform.xls


18: PURCHASING CARDS

1. Overview

2. Procedures and Regulations

Requesting a Purchasing Card

Card transaction limits and limitations

Ordering of goods/services by Purchasing Card

Receiving goods

Payment of goods

Disputes and queries

Security

Contacts

APPENDICES

A. Flowcharts: -

A.1. Purchasing goods via a Purchasing Card

A.2. Problems with the supply of goods.

A.3. Dealing with the Purchasing Card statement

A.4. Dealing with the Transaction Log (optional)

A.5. Checking of VAT invoices.

B. Quick Reference Guide for Internet Transactions

C. Purchase Card Transaction Log (optional)


1. Overview

The introduction of the Purchasing Card is to utilise an alternative method of ordering and

payment of goods/services that are of relatively low value and not in regular repeat demand

but, nevertheless, create a high volume of transaction requirements.

Added value projections will be determined by speeding up the acquisition process without

diluting management and budgetary control and should reduce invoice processing and

creditor activity.

The Purchasing Card looks like any normal credit card but embossed on the card will be: -

the University‟s name,

the cardholder‟s name,

the expiry date,

the card number – on reverse of card a 3-digit security number

(also an individual pin number will be supplied)

When the approval to issue a Purchasing Card is granted, the Purchasing Office will retain

the card and the cardholder will be advised of its number and expiry date but not the pin

number. The pin numbers will be kept sealed, in the safe of the Cashiers Office.

On those occasions when the cards are required for „point of sale‟ transactions, they will have

to be collected from, and returned to The Purchasing Office. The pin number will be given to

the card holder which they must then memorize as the Purchasing Office has no

responsibility for this once the number has been given to the card holder.

Procedures and regulations for the use of the Purchasing Card and its limitations are

contained in the following procedure and guidance notes.

The Purchasing Office will provide the details of all cardholders to SMT on a quarterly

basis. All cardholders will be subject to Financial Regulations of the University of

Central Lancashire and the following procedures and regulations will form part of

these Financial Regulations. Failure to adhere to these regulations may result in

disciplinary action and cancellation of the card.



2.1 Requesting a Purchasing Card

All applications for use and ownership of a Purchasing Card will be requested by

the completion of the Authorised Signatory / Budget Access Form and authorised by

the Head of Purchasing and Group Executive Director of Finance.

Cardholders will be staff responsible for ordering goods and services for their

department. If they are not also the budget holder, this person must approve the

application.

The Head of Purchasing will arrange for the completion of the Organisation‟s

application form

Card holders will -

Complete the Cardholder section of the application form.

Provide to the Head of Purchasing a nominated project code for the creation

and setting up of the account in the Financial Services department.

Not disclose the card number and expiry date and pin number to any other

person (other than the budget holder)

Agree and abide by the limits and limitations applicable.

Not use the card for personal use.

Agree to the completion and timely input of transactions onto Agresso

(optional Purchase Card Transaction Log – see Appendix C) and the

retention of all related receipts for a period of 7 years after the date of

purchase.

Inform the Purchasing Office immediately if they are due to leave the

University or move to another role.

2.2 Card Transaction Limits and Limitations.

Each cardholder will have a standard transaction limit of £1000 (inclusive of VAT)

and a monthly credit limit of £5000 (inclusive of VAT). In certain circumstances this

can be increased by application to the Head of Purchasing and it can be set at a lower

level if required by the budget holder.

This limit should match the authorised signatory limit for the applicant. If this is not

the case, the authorised limit should be amended prior to proceeding with the credit

card application.

.


Cards cannot be used for obtaining cash or acting as cheque guarantee cards to

personal cheques.

Cardholders must only use the Purchase Card when incurring expenses in the pursuit

of University business. Any misappropriation of University funds will be treated as

gross misconduct.

Any unauthorised or fraudulent use of the card will result in disciplinary action being

taken.

2.3 Ordering of Goods by Card

Ensure the proposed transaction complies with the Purchasing Card usage criteria

and the seller will accept the card.

Confirm credit available by checking current transaction log or account 6504 on

Agresso. If there is insufficient credit left on the card and the purchase cannot wait

until the following month, contact the Purchasing Office to request a temporary

increase

When approved by the budget holder, place order by telephone/e-mail/fax quoting

card number and expiry date. Confirm costs/prices and delivery date.

Request that a VAT receipt is sent with the transaction voucher and goods advice

note.

Enter transaction details onto Agresso (credit entry to 6504) and also complete the

Purchase Card Transaction Log (optional) immediately following completion of

purchase. Completing a Purchasing Card Transaction Log is now optional.

If completing the log, identify the account code per transaction.

2.4 Receipt of Goods

Check satisfactory receipt of goods ordered.

Ensure VAT receipt is enclosed with the transaction voucher and that the price

details are correct.

Enter receipt details on Purchase Card Transaction Log (Optional).

File the VAT receipt, awaiting Purchasing Card statement.


2.5 Payment of Goods/Services ordered by Purchasing Card.

Financial Services to post Purchase Card Statement balances to nominated project

code on account code 6504 each month when statements are received.

Check statement received with Agresso by running an enquiry on your nominated

project code and account code 6504. If you have completed a Purchase Card

Transaction Log you can also use the log to help check your statement.

Ensure VAT receipts are available and are correct.

Ensure project code and account code for each transaction is correct.

If the Purchase Card Transaction Log has been completed, obtain authorisation by

the Line Manager (authorising manager) for the project code detailed. Or you can

ask for the statement to be authorized.

Reconcile the entries on the card statement to Agresso- making any amendments as

necessary

Attach relevant VAT receipts and statement to back of Purchase Card Transaction

Log or the Statement and file in month order.

Retain all documentation and store in a secure location: the Purchase Card Log,

Statement and back up documentation are prime documents and must be retained for

a period of seven years.

Financial Services to check the nominal ledger on a monthly basis to ensure all

cardholder‟s accounts are being cleared regularly.

In addition Financial Services to conduct ad-hoc audits to review transactions and

check that all required back up documentation has been retained and filed in

monthly order.

2.6. Disputes and Queries

Initially disputes and queries should be taken up with the seller (supplier) by the

cardholder, who should keep a record of the details of the dispute/query and contacts

made with the seller.

When credits are due, the seller should be asked to raise refund vouchers together

with VAT credit receipts if applicable and the cardholder should ensure that these

credits appear on subsequent statements.


In the event of non-settled disputes and queries the Purchasing Card company will

intervene.

When this situation arises, contact The Purchasing Office who will advise on

contacts and procedure.

2.7 Security

Cardholders only will be notified of the card number and expiry date and when

necessary the pin number, and will not disclose this to any other person other

than the budget holder.

The Purchasing Office will retain signed cards.

Pin numbers will be kept in the safe in the Cashiers Office.

For „point of sale‟ requirements, cards will have to be collected from, and returned

to, the Purchasing Office by the cardholder.

In the event of cards becoming lost or stolen (when out for „point of sale purchases),

or suspected and reported fraudulent use, the matter must be advised immediately to

the Purchasing Office who will arrange for the account to be „suspended‟.

If the card holder no longer requires the card, has obtained a replacement or will be

leaving the University employment, the card must be destroyed and Purchasing

Office informed immediately. If the card is lost/stolen the cardholder should contact

Barclaycard directly to arrange for the card to be deactivated and contact the

Purchasing Office for a replacement to be issued.

To prevent card details being accessed by unauthorized persons, card transaction

receipt details should be retained in a secure place at all times.

When destroying back up transactions details care must be taken to ensure papers are

shredded or put in confidential waste bins.

2.8 Best Practice Purchasing over the Internet

“Company Barclaycard guarantee against unauthorised transactions”


When you buy online with Company Barclaycard you are not liable for unauthorised

transactions. In the unusual event that unauthorised transactions do occur on your account,

they will immediately suspend and investigate them for you. Whatever happens, you won‟t

have to pay for transactions you didn‟t make.

2.8.1 Take care of your card details online

Secure sites will start with https, not http. Secure sites have an added encrypted

transaction layer. Other security systems include Secure Socket Layer (SSL), Secure

Electronic Transaction (SET) and HyperText Protocol Secure (HTTPS). Use these

whenever possible. Refer to section 2.8.6 for how to check if a website is secure.

2.8.2 Get to know a company before you buy

If you're not familiar with a supplier, it's a good idea to contact them first and ask for

some company background before you buy. Are the company‟s registered details

displayed on the home page? Is there some form of accreditation which can be

verified, eg Which? If you are unsure don‟t buy!

Contact the Internet Fraud Watch (www.fraud.org) to check out merchants first

2.8.3 Be aware of private sellers

Members of the public often use classified ads and auctions to sell online. Most

people are perfectly honest. However, if you do have any problems, your legal rights

may not be the same as they would be if you were dealing with a business. So always

make sure you know who you're buying from - then you can make an informed

choice.

2.8.4 Keep your passwords secret

If you register with a particular site, you'll be asked to enter a user name and

password. Keep your passwords completely secret - the same way, as you would look

after your personal debit / credit card PIN number.

2.8.5 Read the delivery and returns policy before you buy

Read the delivery and return policies on the merchant‟s home page before completing

an on-line transaction. Check you can return any unsatisfactory items and whether

you will get a refund or a merchant credit. The website ideally should also cover

delivery methods, delivery cost, currency accepted, taxes applied, return and refund

policy, and a contact telephone number or e-mail address.


2.8.6 Check for a secure connection before you enter your Company Barclaycard

details

First, make sure that you're using a secure browser

Your browser is the piece of software that enables your computer to access the World Wide

Web. (You probably know that already, but not everyone does!)

A secure browser such as Microsoft Internet Explorer version 4.0 or later will show you

whether or not the web site you are visiting is secure. Internet Explorer uses the padlock

symbols below.

A broken padlock = unprotected

An intact padlock = secure

These browsers also scramble your personal data before sending it, so no one else can read it.

Next, check the web site address

A secure site will often have https:// at the beginning instead of http:// (The 's' stands for

secure). Never send your card details by e-mail i.e. if the address starts mailto.

Secure

Unsecure

Again, if the web site gives you the option of using a secure checkout - say yes!

Ensure that a single browser window is open when submitting the data.

2.8.7 Save a record of your transactions

Just as you save till receipts in case you need to return or exchange something, you need to

keep a record of all online transactions too.

Print and save a copy of your completed order form and your order confirmation. Most

reputable suppliers will e-mail you with an order confirmation within 24 hours. Always keep

a record of the website address.


Remember to update your transaction log and refer to your company procedures.

2.8.8 Inspect your goods carefully

When you take delivery of goods you buy online, be sure to check that they're exactly

what you ordered. If you're unhappy with the quality, or have any other problem, first

contact the supplier direct. If you have any difficulty resolving the query with the

supplier, then contact your card administrator for guidance. If, in the unlikely event

you are in dispute with your supplier, please contact Company Barclaycard Customer

Service 08448 222 100.

2.8.9 Check your statement

Check the items on your monthly statement as soon as you receive it against your

saved receipts and Purchase Card Transaction Log (which is now optional). If there

are items on your statement that you don't recognise call Company Barclaycard

Customer Service 08448 222 100.

2.9 Online access

All cardholders have the facility to access their accounts online and the Purchasing

Office encourages this as it helps to reduce fraud and enables cardholders to view

their statements, transactions and remaining credit. Statements can be printed from the

website and this assists in reconciling accounts – vital at year end. Registration details

available from the Purchasing Office and details are on the Purchasing Office website.

2.10 Contacts

Name Department Telephone

Number

Leanne Horton

Head of Purchasing

2220

Alison Thomas

Ana Maria Pinon

Purchasing Office

2221

2223

Customer Services

Company Barclaycard

08448 222 150


APPENDIX A (Flow Charts)

A.1 Purchasing Goods via Purchasing Card

Cardholder identifies purchasing requirement

Purchase authorised by budget holder

Transaction log or account 6504 checked to confirm credit available

(if not and purchase urgent, limit may be increased temporarily by

Purchasing Office)

Proceed to order goods from supplier by phone/fax / web quoting all

relevant numbers and confirming with the supplier the amount of the

transaction. The transaction voucher is sent with the VAT receipt

and the goods advice note, which is dispatched with the goods.

Both item to be addressed to the cardholder and marked “Paid by

Purchasing Card”

Input details onto Agresso and (optional) update Purchase Card

Transaction Log with all purchase details.

Posting a Purchase Card Transaction

Goods/service received - including VAT receipt

Goods/service checked and reconciled to requirements

Receive and verify monthly Purchasing Card statement

(follow procedure A.3)


A.2. Problems with Supply of Goods

Responsibility of the Cardholder

Immediately contact supplier requesting a refund voucher be put through the

Purchasing Card Company and a VAT credit note

Does the supplier agree to issue a credit?

YES NO

Detail on the Statement or (optional)

Purchase Card Transaction Log and

await receipt of credit.

Pursue with supplier until agreement is

reached or

Contact Barclaycard with

complaint/problem

On receipt of statement check

credit has been included and update account on Agresso

If credit has not been received, contact supplier to find out when the refund voucher

was processed

NOTE: If you experience difficulty in obtaining a credit after following

these procedures please contact the Head of Purchasing.

Online access is now available for all cardholders – contact

Purchasing for details


A.3. Dealing with the Purchasing Card Statement

Responsibility of the Cardholder On receipt of the statement, do you have all the VAT invoices?

YES NO

Check the details on the statement are the

same as invoice details and the entries

made on Agresso and (Optional)

Purchase Card Transaction Log sheet

Contact the supplier

and request a copy

invoice

Await copy invoice

Do the entries on Agresso and (optional) Purchase Card

Transaction Log correspond to the statement?

YES NO

If discrepancy due to dates, carry

forward the outstanding

transactions to the following

month

If credit required, contact

supplier or Purchasing Office

Are the Purchasing Card company statement details correct?

YES NO

Raise query with Barclaycard

and advise Purchasing Office.

Proceed with next step when

queries resolved

Obtain authorization from budget holder to sign and date the

Statement and (Optional) the Purchase Card Transaction Log

Attach all invoices and (Optional) copy of the Purchase Card

Transaction Log or Agresso printout of 6504 to statement


A.4. Dealing with the Purchase Card Transaction Log (now Optional)


On the face of your log sheet, enter the following:

Name - Staff Number

Department and Location

Phone Number

Enter each individual transaction detail onto the log as soon

as purchase completed and has been entered on Agresso

Make sure you get a receipt/invoice for each transaction

review weekly - chase suppliers for invoices not received

Check invoice details against log details

Put receipt/invoice into the log envelope and await receipt of

monthly statement

Update the Purchase Card Transaction Log with outstanding

details, process paperwork as outlined in A.1.

Return any invoices that do not appear on the statement to the

log file and await the next statement

Further information re posting the Purchase Card Transaction

Log details onto Agresso can be found at: Posting a Purchase Card Transaction


A.5 Checking of the VAT Invoice


On receipt of the invoice - is the following correct?

Items

Quantity

Price

YES NO

Attach invoice to, and update, (Optional)

the

Purchase Card Transaction Log.

Immediately

contact supplier

requesting a

refund voucher be put through

the Purchasing

Card company

AND a VAT

credit note


APPENDIX B

Quick Reference Guide for Internet Transactions

Cardholder checks to

make sure supplier

has a secure site and

purchases

goods/services over

the Internet. Enter

the transaction onto

Agresso and

(Optional)

Transaction log

updated with details

Supplier may

acknowledge via e-

mail that he has

goods/services.

Supplier then

delivers

goods/services with a

receipt.

Supplier processes

transaction through

Visa network

Cardholder receives

goods/services and

(Optional)updates

Transaction Log.

Cardholder receives

and checks monthly

statement against

(Optional) log and

receipts

Statement, (Optional)

Transaction Log and

receipts are signed

off by line manager .



they will immediately suspend and investigate them for you. Whatever happens, you‟ll never

have to pay for transactions you did not make.


APPENDIX C

Purchasing Card Transaction Log


19. CORPORATE CARD PROCEDURES

1. Overview


2.1 Requesting a Corporate Card

2.2 Card transaction limits and limitations

2.3 Ordering of goods/services by Corporate Card

VAT Guidelines

2.4 Receipt of goods

2.5 Payment of goods/services ordered by Corporate Card

2.6 Disputes and queries

2.7 Security

Password protection

Lost/stolen cards

Cards no longer required

2.8 Best practice purchasing over the internet

2.9 Miscellaneous questions

2.10 Contacts

APPENDICES

A. Flowcharts: -

A.1. Purchasing goods via a Corporate Card

A.2. Problems with the supply of goods.

A.3. Dealing with Corporate Card statement

A.4. Dealing with UCLAN Transaction Log

A.5. Checking of VAT invoices.

B. Quick Reference Guide for Internet Transactions

C. Corporate Card Transaction Log (optional)


1. Overview

The Corporate Card was introduced to enable frequent travellers to pay for expenses incurred

whilst on University business expenses such as travel arrangements (where the Travel Office

are unable to arrange credit for hotels or other expenses), entertaining guests and purchasing

fuel.

The University currently uses a Corporate Card issued by Company Barclaycard, which is a

VISA credit card. Cards are embossed with:

the University‟s name

the cardholder‟s name

the expiry date

the card number

(also supplied is an individual pin number)

The Corporate Card reduces the need to request either cheque or cash advances, saving time

and money and easing cash flow. It should also mean less frequent need for reimbursement

via the Cashiers Office for University business expenditure. A further benefit is that the

University does not have to pay immediately for the transactions undertaken and can obtain

up to 33 days of interest free credit.

Security is improved due to the reduction in cash handling and the fact that guarantee card

payment reduces financial risk.

The Card is accepted in over 400,000 UK outlets, 10 million world-wide.

Cardholders benefit from free travel accident insurance where the card is used as the method

of payment.

Procedures and regulations for the use of the Corporate Card and its limitations are contained

in the following procedure and guidance notes.

The Purchasing Office will provide the details of all cardholders to SMT on a quarterly

basis. All cardholders will be subject to Financial Regulations of the University of

Central Lancashire and the following procedures and regulations will form part of

these Financial Regulations. Failure to adhere to these regulations may result in

disciplinary action and cancellation of the card.



2.1 Requesting a Corporate Card

The Corporate Card is currently available to the Directorate, Senior Management Team

members and frequent travellers, subject to approval from the Group Executive Director of

Finance.

Requests for a Corporate Card should be made directly to the Purchasing Office,

accompanied by an authorisation form signed by the Line Manager/Budget Holder (available

from the purchasing office). Requests should detail the card limit you require (refer to

section 2.2 for guidance). The Group Executive Director of Finance will authorise all

qualifying requests. Cards usually take 14 days from the date of the card issuer receiving a

correctly completed application form.

The monthly limit is stipulated at the time of issue of the card but may be adjusted according

to need, on the authority of the Group Executive Director of Finance.

Corporate Cards are valid for two years and on expiry the Group Executive Director of

Finance will review the renewal.

There are two card options:

Gold Cards will be issued to Directorate and Deans.

Silver Cards will be issued to all other parties

Cardholders will -

Complete the Cardholder application form.

Complete an authorisation memo signed by the budget holder.

Provide to the Head of Purchasing a nominated project code for the creation and

setting up of the account in Financial Services.

Ensure that the card is kept in a safe place and is used solely by themselves.

Not disclose the card number and pin number and expiry date to any other person

(other than when charging an expense to the card).

Agree and abide by the limits and limitations applicable.

Obtain an itemised invoice / receipt for each transaction, containing VAT details

where applicable.

Agree to the completion and timely input of transactions onto Agresso (optional

Corporate Card Transaction Log see Appendix C.)


Ensure that the Transaction Log (if used) and all related receipts are retained for a

period of 7 years after the date of purchase.

2.2 Card Transaction Limits and Limitations.

The initial limit for each card is a maximum of £5000. This limit should be sufficient to

cover the expenses of a two-month period. Card limits may be increased either permanently

or temporarily via a written request to the Head of Purchasing. Requests should state start and

end dates, required limit and the justification for the increase.

In exceptional circumstances it may be necessary for members of SMT to include personal

expenditure on their corporate card. In such instances;

the personal expenditure should be highlighted on the statement,

the amount owed should be paid into Cashiers as soon as practicable,

the cardholder or their nominee should keep a copy of all records on file for audit

purposes.

2.3 Ordering of Goods / Services by Corporate Card

Goods or services can be charged to the account either in person by presenting the card, or by

phone quoting all the relevant card details such as your Name, Card Expiry Date, Card

Number and sometimes your security code.

Care should be taken only to quote card details to someone known to the cardholder or who

can reasonably expect to be honestly engaged in business on the cardholder‟s behalf (i.e.

Travel Office staff). Ensure that the right amount is charged to the account and remember

that the monthly card limit must not be exceeded.

The cardholder has personal responsibility to account for the use of their card. Cardholders

must therefore:

Ensure the proposed transaction complies with the Corporate Card procedure and

the seller will accept the card.

If necessary, obtain authorization from the project budget holder (if you have access

to more than one project.)

Order goods/service either in person, or by telephone/fax quoting card number and

expiry date. Confirm costs/prices and delivery date.

Ensure that you obtain an itemised invoice/receipt (including VAT details where

applicable). If ordering goods this should be sent with the transaction voucher and

goods advice note.

Enter the transaction details onto Agresso (credit entry to 6516) and also complete

the Corporate Card Transaction Log if required, immediately following completion

of purchase. Completing a Corporate Card Transaction Log is now optional.


2.3.1 VAT Guidelines

Some expenses charged to the Corporate Card may be vatable. When charging something to

the card, ask whether VAT is applicable, at what rate it is applicable, and ask for the total

VAT amount and a VAT receipt. Not everything that the cardholder charges to the corporate

card will be subject to VAT.

Some suppliers are able to provide VAT details to VISA, who in turn provides official

evidence of VAT paid. If a # (hash) appears against the transaction then VAT has been

captured electronically. If a # does not appear on the statement, the supplier should have

provided a VAT invoice. If not, the cardholder must ask the supplier to supply a VAT

invoice.

Please retain all sales vouchers. Both sales vouchers and VAT receipts must be kept to

substantiate any transactions made. The VAT receipts will also be used to reclaim VAT

where applicable.

2.4 Receipt of Goods

Check satisfactory receipt of goods ordered.

Ensure that an itemised invoice / VAT receipt is enclosed with the transaction

voucher and that the price details are correct.

Enter the transaction details on the Corporate Card Transaction Log (optional.)

File the itemised invoice / VAT receipt, awaiting the Corporate Card statement.

2.5 Payment of Goods/Services ordered by Corporate Card.

Financial Services will post the total of each cardholder‟s Corporate Card Statement balance

to a nominated project code on account code 6516 each month when statements are received.

Cardholders are required to:

Check the statement received with Agresso by running an enquiry on your

nominated project code and account code 6516. If you have completed a Corporate

Card Transaction Log you can also use the log to help check your statement.

Ensure that an itemised invoice/VAT receipt has been obtained for each transaction.


Ensure the correct project code, account code, resource number and any other

appropriate details have been entered on the Corporate Card Transaction Log (if

completed.)

If completed, ensure that the Corporate Card Transaction Log is authorised by the

line manager for the project code detailed, which should in all cases be a person

different to the cardholder themselves, and ensure that the Log is input onto Agresso

within 7 days of receipt/date of statement.

Reconcile the entries on the card statement to Agresso – making any amendments as

necessary

Attach itemised invoices/VAT receipts (for each transaction) and statement to the

back of the Corporate Card Transaction Log or Statement and file in month order.

Retain all documentation and store in a secure location; the Corporate Card Log,

Statement and back up documentation are prime documents and must be retained

for a period of seven years.

Financial Services will check the accounting system on a monthly basis to ensure

that all cardholder‟s transactions are being input.

Financial Services will conduct regular audits to ensure that Corporate Card

Transaction Logs have been correctly completed and that all required back up

documentation has been obtained and filed.

2.6. Disputes and Queries

Initially disputes and queries should be taken up with the seller (supplier) by the

cardholder, who should keep a record of the details of the dispute/query and contacts

made with the seller.

When a credit is due, the seller should be asked to raise a refund voucher together

with a VAT credit receipt if applicable and the cardholder should ensure that these

credits appear on subsequent statements. The credit should also be detailed on the

Corporate Card Transaction Log in order for the Log to reconcile exactly with the

value of the statement.

In the event of non-settled disputes and queries the Corporate Card company will

intervene (see 2.10 Contacts). If you receive an inadequate response contact the

Purchasing Office. However, please do not cross out any of the transactions

concerned on the queried statement; the University must pay promptly to avoid

interest charges and, therefore, payment cannot be delayed pending any such credits

or dispute resolution.

It is the cardholder‟s responsibility to ensure that their statements are correct.


2.7 Security

Company Barclaycard will only issue cards after they receive an application form authorised

by relevant University personnel, including the cardholder. The Head of Purchasing is the

authorised signatory for the card agreement. Where an application requires two signatures,

i.e. for a limit >£5000, then a member of Financial Services who is named on the bank

mandate (Head of Purchasing or Group Executive Director of Finance) will also sign.

Corporate Cards are posted to the Purchasing Office who will then contact the cardholder to

advise them that the card is available for collection.

On collection of the card, the cardholder must sign to confirm receipt and sign their card in

front of the Purchasing Office member of staff issuing the card and be supplied with their pin

number.

2.7.1 Password Protection

Whilst making a transaction a security number may be required, this is on the reverse of the

card. A password will also have been entered on the application form and as such will only

be viewed by the cardholder, the Group Executive Director of Finance, the Purchasing Office

and Company Barclaycard employees.

2.7.2 Lost / Stolen Cards

In the event of cards becoming lost or stolen, or suspected and reported fraudulent use, the

cardholder should contact Company Barclaycard immediately to arrange for the card to be

deactivated and for a replacement to be issued. The cardholder should then advise the

Purchasing Office.

2.7.3 Cards No Longer Required

If the card holder no longer requires the card, has obtained a replacement or will be leaving

the University employment, the card must be cut into four pieces and returned to the

Purchasing Office immediately with an explanatory note.

2.7.4 Transaction Receipts

To prevent card details being accessed by unauthorized persons, card transaction receipt

details should be retained in a secure place at all times.

When destroying back up transactions details care must be taken to ensure papers are

shredded or put in confidential waste bins.


2.8 Best Practice Purchasing over the Internet

„Company Barclaycard guarantees against unauthorised transactions.‟



they will immediately suspend and investigate them for you. Whatever happens, you won‟t

have to pay for transactions you didn‟t make.

2.8.1 Take care of your card details online

Secure sites will start with https, not http. Secure sites have an added encrypted transaction

layer. Other security systems include Secure Socket Layer (SSL), Secure Electronic

Transaction (SET) and HyperText Protocol Secure (HTTPS). Use these whenever possible.

Refer to section 2.8.6 for how to check if a website is secure.

2.8.2 Get to know a company before you buy

If you're not familiar with a supplier, it's a good idea to contact them first and ask for some

company background before you buy. Are the company‟s registered details displayed on the

home page? Is there some form of accreditation which can be verified, eg Which? If you are

unsure don‟t buy!

Contact the Internet Fraud Watch (www.fraud.org) to check out merchants first

2.8.3 Be aware of private sellers

Members of the public often use classified ads and auctions to sell online. Most people are

perfectly honest. However, if you do have any problems, your legal rights may not be the

same as they would be if you were dealing with a business. So always make sure you know

who you're buying from - then you can make an informed choice.

2.8.4 Keep your passwords secret

If you register with a particular site, you'll be asked to enter a user name and password. Keep

your passwords completely secret - the same way, as you would look after your personal card

cash machine PIN number.

2.8.5 Read the delivery and returns policy before you buy

Read the delivery and return policies on the merchant‟s home page before completing an on-

line transaction. Check you can return any unsatisfactory items and whether you will get a

refund or a merchant credit. The website ideally should also cover delivery methods, delivery

cost, currency accepted, taxes applied, return and refund policy, and a contact telephone

number or e-mail address.


2.8.6 Check for a secure connection before you enter your

Company Barclaycard details

First, make sure that you're using a secure browser

Your browser is the piece of software that enables your computer to access the World Wide

Web. (You probably know that already, but not everyone does!)

A secure browser such as Netscape Navigator version 4.0 or later, or Microsoft Internet

Explorer version 4.0 or later will show you whether or not the web site you are visiting is

secure. Internet Explorer uses the padlock symbols below while Netscape uses keys.

A broken key or padlock = unprotected

An intact key or padlock = secure

These browsers also scramble your personal data before sending it, so no one else can read it.

Next, check the web site address

A secure site will often have https:// at the beginning instead of http:// (The 's' stands for

secure). Never send your card details by e-mail i.e. if the address starts mailto.

Secure

Unsecure

Again, if the web site gives you the option of using a secure checkout - say yes!

Ensure that a single browser window is open when submitting the data.

2.8.7 Save a record of your transactions

Just as you save till receipts in case you need to return or exchange something, you need to

keep a record of all online transactions too.

Print and save a copy of your completed order form and your order confirmation. Most

reputable suppliers will e-mail you with an order confirmation within 24 hours. Always keep

a record of the website address.

2.8.8 Inspect your goods carefully

When you take delivery of goods you buy online, be sure to check that they're exactly what

you ordered. If you're unhappy with the quality, or have any other problem, first contact the

supplier direct. If you have any difficulty resolving the query with the supplier, then contact


your card administrator for guidance. If in the unlikely event you are in dispute with your

supplier please contact Company Barclaycard Customer Service 08448 222 150

2.8.9 Check your statement

Check the items on your monthly statement as soon as you receive it against your saved

receipts and Corporate Card Transaction Log. If there are items on your statement that you

don't recognise call Company Barclaycard Customer Service 08448 222 150

2.9 Online access

All cardholders have the facility to access their accounts online and the Purchasing Office

encourages this as it helps to reduce fraud and enables cardholders to view their statements,

transactions and remaining credit. Statements can be printed from the website and this assists

in reconciling accounts – vital at year end. Registration details available from the Purchasing

Office and details are on the Purchasing Office website.

2.10 Contacts

NAME TITLE TELEPHONE

Head of

Purchasing

Leanne Horton

AB133 Adelphi Building

Email: [email protected]

2220

Purchasing

Officers

Purchasing Office

AB 135 Adelphi Building

2221/2223/2225

Customer

Services*

Company Barclaycard

www.companybarclaycard.co.uk

08448 222 150

+44 1642 663 663 (from

abroad)

Lost/Stolen Cards/

24 hour

customer

service

Company Barclaycard 01642 230 230

+44 1642 230 230 (from

abroad)

* Quote card number, name, transaction query, date and amount.


APPENDIX A (Flow Charts)

A.1 Purchasing Goods via Corporate Card

Cardholder identifies purchasing requirement

Purchase authorized by budget holder

Transaction log or account 6516 checked to confirm credit available

(if not and purchase urgent, limit may be increased temporarily by

Purchasing Office)

Proceed to order goods from supplier by phone/fax / web quoting all

relevant numbers and confirming with the supplier the amount of the

transaction. The transaction voucher is sent with the VAT receipt

and the goods advice note, which is dispatched with the goods.

Both item to be addressed to the cardholder and marked “Paid by

Corporate Card”

Input details onto Agresso and (optional) update Corporate Card

Transaction Log with all purchase details.

PostingCardTransaction

Goods/service received - including VAT receipt

Goods/service checked and reconciled to requirements

Receive and verify monthly Corporate Card statement

(follow procedure A.3)


A.2. Problems with Supply of Goods


Immediately contact supplier requesting a refund voucher be put through the

Corporate Card Company and a VAT credit note

Does the supplier agree to issue a credit?

YES NO

Detail on the Statement or (optional)

Corporate Card Transaction Log and

await receipt of credit.

Pursue with supplier until agreement is

reached or

contact Barclaycard with complaint/problem

On receipt of statement check credit has been included and update account on

Agressso

If credit has not been received, contact supplier to find out when the refund voucher

was processed

NOTE: If you experience difficulty in obtaining a credit after following

these procedures please contact the Head of Purchasing.

Online access is now available for all cardholders – contact

Purchasing for details


A.3. Dealing with the Corporate Card Statement

Responsibility of the Cardholder On receipt of the statement, do you have all the VAT invoices?

YES NO

Check the details on the statement are the

same as invoice details and the entries

made on Agresso and (Optional)

Corporate Card Transaction Log sheet

Contact the supplier

and request a copy

invoice

Await copy invoice

Do the entries on Agresso and (optional) Corporate Card

Transaction Log correspond to the statement?

YES NO

If discrepancy due to dates, carry

forward the outstanding

transactions to the following

month

If credit required, contact

supplier or Purchasing Office

Are the Corporate Card company statement details correct?

YES NO

Raise query with Barclaycard

and advise Purchasing Office.

Proceed with next step when

queries resolved

Obtain authorization from budget holder to sign and date the

Statement and (Optional) the Corporate Card Transaction Log

Attach all invoices and (Optional) copy of the Corporate Card

Transaction Log or Agresso printout of 6516 to statement


A.4. Dealing with the Corporate Card Transaction Log (now optional)


On the face of your log sheet, enter the following:

Name and staff number

Department and Location

Phone Number

Enter each individual transaction detail onto the log as soon

as purchase completed and has been entered on Agresso

Make sure you get an itemised invoice/VAT receipt for each

transaction; review weekly - chase suppliers for invoices not

received

Check invoice details against log details

Put receipt/invoice into the log envelope and await receipt of

monthly statement

Update Corporate Card Transaction Log with outstanding

details, process paperwork as outlined in A.1.

Return any invoices that do not appear on the statement to the

log file and await the next statement

Further information re posting the Corporate Card

Transaction Log details onto Agresso can be found at: CardLogEntry


A.5 Checking of the VAT Invoice


On receipt of the invoice - is the following correct?

Items

Quantity

Price

YES NO

Attach invoice to, and update, the

Corporate Card Transaction Log

Immediately

contact supplier

requesting a

refund voucher be put through

the Corporate

Card company

AND a VAT

credit note


APPENDIX B

Quick Reference Guide for Internet Transactions

Cardholder checks to

make sure supplier

has a secure site and

purchases

goods/services over

the Internet. Enter

the transaction onto

Agresso and

(Optional)

Transaction log

updated with details

Supplier may

acknowledge via e-

mail that he has

goods/services.

Supplier then

delivers

goods/services with a

receipt.

Supplier processes

transaction through

Visa network

Cardholder receives

goods/services and

updates transaction

log (optional)

Cardholder receives

and checks monthly

statement against log

(optional) and

receipts

Statement,

transaction log and

receipts are signed

off by line manager

and sent to accounts.



they will immediately suspend and investigate them for you. Whatever happens, you‟ll never

have to pay for transactions you did not make.


APPENDIX C

Corporate card log

https://staff.uclan.ac.uk/files/corporatecardlog.xls


20: NEGOTIATION BRIEFING NOTES

Why negotiate

As we are spending taxpayers money, we are publicly accountable and must ensure

that value for money is obtained. Negotiation is one method of achieving this. Also

savings made enable budget holders to gain more from typically decreasing budgets.

When conducted with integrity and professionalism negotiation is a perfectly logical

step in the procurement process. It must be carefully planned and managed so that

confidence and trust in the purchaser (which in the longer term translates into better

value for money) are always retained. Suppliers who realise that their customer always

wishes to negotiate will invariably add a little on to their price to compensate.

Conducting a basic negotiation

A negotiation strategy should be developed prior to the negotiations taking place.

Analysing information, identifying objectives, formulating a strategy and ensuring that

you are authorised to conduct the proposed negotiations will help you to negotiate

from a position of strength and achieve an effective result. Ensure you differentiate

from facts and assumptions.

1. Pre-Meeting Strategy Development When creating your strategy consider all potential items for negotiation and ways

in which the University‟s needs may be met. Consider also the current market

trends and the suppliers current and future business situation e.g. seasonal

variations, current financial standing and market strategies. Analyse the faults of

suppliers products, even if they are unimportant to the purchaser, getting the

supplier to identify / confirm weaknesses can put the balance of power on your

side. Considering many options will allow you to change tack during negotiations if

necessary.

1a. What to negotiate

Price (except in EU contracts)

supply and cost of spare parts

earlier delivery/completion dates

warranties/guarantees/maintenance/repair/after sales service

compensation for failure to meet specified requirements.

quantity/educational discounts. This list is not exhaustive, it is a concept of

purchasing that “everything is negotiable”.

2. Meeting - Introduction

Home „turf‟ is always useful, familiarity with environment and information to hand

offers a position of strength from which to conduct proceedings. The meeting

should commence with an introduction, giving background information and gently

leading up to points to discuss. Allow suppliers time to talk, you can pick up useful

information prior to negotiating.


3. Meeting - Discussion

Commencing the process of discussion, start with items you will find easy to agree

on to build a relationship. Suggest a break if things become difficult or

deadlocked.

4. Tactics

Ask suppliers what you could do to improve your dealings with them, there may be

something important to them which involves little effort on your part. Such

concessions can dramatically improve a supplier‟s impression of the University as a

customer.

Salespeople are highly trained and motivated to fend off their competitors and win

your custom so be on your guard.

Avoid situations where a supplier knows they will get an order. This can occur

when they have the best product to meet our needs, deadline date or because an end

user has advised them!

When undertaking team negotiations ensure that all members are aware of their

role in the negotiations and the tactics to be deployed.

Ask for cost breakdowns to include the profit margin, labour and various product

components. This enables comparison between suppliers, which you can then use

to query any anomalies.

Recognise suppliers strengths and weaknesses in relation to your requirements.

Ensure that your weaknesses are played down, put in a positive light, or not

disclosed at all. Make more of the suppliers weaknesses and less of their strengths.

Make more of your strengths. Think not of how little your concessions mean to you

but of how much they may mean to the supplier.

Reserve your position until you see the full scope of the proposed deal. Never agree

point by point. Using conditional language e.g. if... then perhaps ... can assist you in

this. Try not to concede without gaining a concession from the supplier, always

SOMETHING FOR SOMETHING! Observe how the supplier negotiates and

adjust your tactics accordingly, or choose to take the lead.

5. Meeting - Close

Once agreement has been made summarise the points and method of

implementation. Make an effort to leave the supplier with some satisfaction at the

completion of a negotiation. Such satisfaction may be nothing more than

understanding why it has been necessary for him to make concessions. Aim for a

„win win‟ situation.


6. Ethics

Contracts for the supply of goods and services do not have to be in writing to be

legally enforceable and so great care must be taken during any negotiations to avoid

entering contracts orally.

Negotiation should not be conducted in ways, which put suppliers at a

disadvantage, distort competition or adversely affect trust in the procurement

process. Avoid Dutch auctions and empty threats and ensure suppliers are treated in

an honest, fair and ethical manner whilst retaining confidentiality of their bids.

Exercise of control on all types of information, only partially revealing or choosing

only that which is suitable for your purpose, is a perfectly legitimate tactic. Care

should be taken however to avoid leaving bidders with a misleading impression,

otherwise the failure to supply the information may be held to be a

misrepresentation by omission.

If discussions regarding bid clarification result in an exchange of further

information to one or more of the suppliers it is imperative that the same

information is given to all bidders.

Negotiations must be fully documented so that a clear audit trail is left.

Those suppliers who have been unsuccessful should be given constructive feedback

to assist them in becoming more competitive for future requirements in the interest

of market forces.

For negotiation to be effective both parties must foster a relationship that is based

on trust, fair dealing and respect for each others viewpoint.

7. Post Tender Negotiation

Post Tender Negotiation must only be undertaken with a member of the Purchasing Office.


Below are a number of „key‟ points that will have to be considered and acted upon when

University staff are bidding for funds to purchase equipment and services. It is important for

„bidders‟ to recognise any mandatory requirements as they could affect the timeframe and

procurement process if the bid were to be successful.

University Financial Regulations

All purchases for equipment and services are subject to the University‟s Financial

Regulations.

Headline Regulations are,

Purchases up to £5k – estimated price

Purchases £5k to £50k – a minimum of three written quotations

Purchases £50k to £100k – a minimum of four tenders – allow a minimum of four

months for this process

Purchases £100k to £156k – a minimum of six tenders

Purchases greater than £156k, subject to EU Procurement (tender) Regulations (see

below). – allow a minimum of six months for this process

Statutory Requirements

All purchases for equipment and services over the value of £156k that could be aggregated

or purchased from a single supplier will be subject to EU Procurement Regulations.

What does this mean?

Each procurement is subject to statutory regulations and timetables.

For an „open‟ tender all applicants must receive a tender pack. The tender timeframe

is a minimum of 52 days.

The specification must be generic and must not include any artificial „lock out‟

barriers to competition within the specification i.e. quoting any „brand names‟.

Every supplier must be treated equally and fairly.

If the EU Tender Regulations are NOT followed precisely then the University may be

challenged in a court of law and if found guilty could be fined up to the value of the potential

contract.

External Requirement and Good Practice Purchasing

Most external funding agencies now impose procedures on bidding institution. These will be

a combination of strict procedures or good practices. Organisations such as HEFCE, the

Research Councils and the Wellcome Trust all insist the proper tender regulations are

observed and „whole life costings‟ are included within the bid and procurement process.

Most agencies now insist the institution Purchasing Office is included within the process and

sign off the bid/procurement documentation. Failure to do so may result in the bid not being

accepted or funds being denied.

21: PURCHASING GUIDANCE NOTES WHEN BIDDING FOR FUNDS


What is „whole life costing’?

Whole life costing asks that the purchase of equipment or a service be costed through to the

end of the expected life of the equipment or project. This will include but not limited to,

Initial purchase cost

Delivery and implementation costs

Consultancy, manuals and Training

Annual maintenance and licensing costs,

Consumables and spares

Upgrades

Insurance

Resale or trade in value

It is important that the Purchasing Office is included early on in the bid process as they can

advise in more depth, the various requirements involved in a „high value‟ purchase. The

Purchasing Office has an extensive website which includes guidance notes on most topics

involved with purchasing equipment (goods) and services.

This can be found at - Purchasing Office

or alternatively contact the Purchasing Office on extension 2220.

http://www.uclan.ac.uk/information/services/finance/purchasing/index.php


22. CONSULTANCY

GUIDANCE FOR THE PROCUREMENT OF CONSULTANCY

CONTENTS

1. FOREWORD

2. PRINCIPLES

3. FINANCIAL REGULATIONS

4. THE PROCESS

5. GUIDELINES

6. METHODS OF PAYMENT

APPENDIX 1: CONSULTANTS TRAVEL EXPENSES

APPENDIX 2: ADVICE ON DIFFERENTIATION BETWEEN EMPLOYEE

AND SELF-EMPLOYED STATUS


1. Foreword

The purpose of this document is to provide guidance to those members of staff involved in

the difficult task of hiring external consultants to undertake work on behalf of the University.

The following check lists, procedures and principles will provide complete assurance in the

safety of the placement of a consultancy contract (legal contract “Standard Contract for the

Purchase of Consultancy” available from

www.uclan.ac.uk/information/services/finance/purchasing/terms_and_conditions.php. Do

please note that travel expenses listed under Appendix 1 are intended as a guideline only and

should be checked for any revisions.

Please remember the Purchasing Office are always available to assist and contact should be

made with the Head of Purchasing on ext. 2220 in the first instance if any member of staff

wishes to take advantage of their expertise in this matter.

The aim of this document is to improve the quality of consultants‟ reports as a management

tool by laying out the University‟s expectations, highlighting best practice and documenting

the risks associated with consultant reports and presentations.

In general terms, as part of a broader management framework, consultant reports, like all

other elements of such a framework, must be subject to and demonstrate value for money,

risk awareness, audit ability and a connectedness to corporate planning and strategic

priorities.

In specific terms the outputs of such consultant contributions should demonstrate objectivity,

rigour, validity, reliability, coherence and focus.

These general and specific considerations are directly related. A consultant‟s report which

lacks validity will lack value for money. Similarly a review which lacks objectivity is

unlikely to contribute satisfactorily to risk assessment or mitigation processes.

The cost of ineffective or flawed consultancy is potentially not just the fee paid for the

consultancy work but the business cost of poor decisions made on the basis of such

consultancy.

All consultants‟ reports are different and the commissioning conditions and briefs can vary

significantly. There is no single correct way to carry out effective consultancy. However, the

University is committed to maximising the quality of decision making generally and is

focused therefore on establishing best practice in relation to those reports it commissions.

The following set of principles indicates a set of expectations to which all consultants and

commissioning mangers should adhere. Promotion of these principles and raising awareness

of the issues they address, both internally and to potential consultants, is designed to raise

standards of consultancy reports and improve decision making.

http://www.uclan.ac.uk/information/services/finance/purchasing/terms_and_conditions.php


POLICY

2.0 Principles

2.1 All consultancies will be expected to adhere to a professional Code of Practice

This will be either the MCA (Management Consultancies Association) Code of

Professional Conduct or equivalent1. Additionally all consultancies shall adhere to

the University‟s policies on diversity and equal opportunities in all work and not just

such work which has diversity as an explicit element of the brief.

2.2 All consultancies will be appropriately commissioned.

This means that all commissions will be consistent with the University‟s Financial

Regulations and will normally incorporate the model contract for consultants issued

by Financial Services.

2.3 All consultancies will have a clear brief

This means that all consultancies will have as a minimum a written statement of

The scope of the work with relevant terms appropriately defined

The methodologies and instruments to be used (e.g. survey, interview, focus group

etc)

In the case of survey work the population from which the sample will be drawn and

the sampling frame.

A stated link to University Strategy (e.g. Corporate Plan, Risk Register, VFM

schedule or equivalent), and previous relevant documents and research work where

known.

Who is commissioning the consultancy and to whom the outputs should be delivered

in the first instance

The nature of the outputs (reports, presentations etc)

The time frame for final report and any intermediate drafts to be delivered

Utilising the Standard Contract for the Purchase of Consultancy will cover all of the

above requirements.

2.4 All quantitative surveys will be reliable, valid and appropriately executed and

reported.

This means that

Survey questions will adhere to social science good practice and questions or items

should be both reliable and valid.

Appropriate confidentiality and informed consent must be exercised.

Statistical analysis should be decided prior to data collection.

1 http://www.mca.org.uk/MCA/AboutUs/CodeOfConduct.aspx


Samples used in surveys should be representative of the population defined in the

brief. Large samples can still be unrepresentative. The sampling method should be

clearly defined and will normally be randomly determined (involving stratification

where appropriate). Where there is weighting of samples by key population variables

to yield better population estimates, this should be clearly documented and justified.

Where appropriate and feasible, new or bespoke question sets should be piloted prior

to full survey.

2.5 All statistical results reported in surveys should be accurate, comprehensible to

the intelligent lay reader and should not be misleading or overstated.

This means that statistical findings should be presented clearly and rooted in the

actual data. Comparative statistical judgments should reflect normal standards

associated with inferential statistics. Survey response rates and any significant issues

in validity arising from unsatisfactorily low response rates or potentially skewed

response rates must be foregrounded.

Specifically this means that:

Where comparisons are the focus of a sample survey, differences should normally

only be highlighted where they are statistically significant (normally at 5% level of

significance but there will be exceptions).

Tables which report means across groups (with or without claims of statistically

significant differences) should also report measures of dispersion such as standard

deviation.

Nonparametric statistics should be used where more appropriate than parametric

statistics. Parametric statistics should not be used where normal parametric

assumptions are violated, with particular care and attention to Likert study data.

Sub sample analyses should be reported with caution particularly where sub sample

sizes are small.

Statements which are only true of a sub sample should not be presented as being true

of the sample as a whole. Equally, statements which are true of the sample as a whole

should not be presented as true only of a sub sample.

2.6 All surveys should be auditable and reproducible

This means that raw data, appropriately anonymised, should be available for any other

party nominated by the commissioning manager to check statistical assumptions,

calculations and inferential assessments as appropriate. The University will normally

carry out an „evidence trail‟ for a small number of selected specific conclusions in

each final report (see below).


2.7 All qualitative surveys and associated reports will be clearly identified as such

and conclusions presented appropriately.

Focus groups, interviews and desk (document) reviews can make a significant

contribution to policy or organizational development and review. They are able to

identify emerging themes, patterns, perceptions and narratives. Appropriately

designed and executed they can provide thought-provoking suggestions and

possibilities which other methods fail to identify. However, such methods by their

very nature are open to the dangers of subjective interpretations, incomplete

summation and „spin‟. There is no reason in principle why these difficulties

cannot be overcome. Research suggests that such methods are least useful when the

consultant is unfamiliar with the vocabulary, cultures and practices of the target

population. This presents a particular challenge to consultants who can in principle

add value through externality and disinterest. In practical terms such methods present

further difficulties since (i) confidentiality and an ethical treatment of the participant‟s

contribution are paramount (ii) participants are not anonymous to the consultant, (iii)

the elicitation of the participant‟s views is conversational, (iv) in the case of focus

groups, the participants‟ contribution can reflect peer pressure and (v) in some

settings more vocal and more confident participants can generate more content and be

more influential. In some settings this can lead to some views from minority or less

powerful respondents being excluded and undervalued. Consultants should

demonstrate awareness of these limitations and put conclusions and recommendations

in an appropriate context. Presentation of results of qualitative research is an area of

particular difficulty due to the role of subjectivity, individuality, and particular

circumstances in which the views of participants are solicited. Normally, the

University will expect such methods at the early stages of a review to identify the

areas meriting further structured assessment through surveys or other methods.

Qualitative methods can support a wide range of activities and can add value on

topics during periods of change or which are subject to multiple stakeholder

perspectives.

This means that

Data from interviews and focus groups should not be presented as though they had

been collected via a quantitative survey.

Summaries, conclusions and recommendations based wholly or principally on

qualitative methods should normally indicate areas or issues for further systematic

structured work or robust analysis rather than be offered as definitive statements of

stakeholders‟ views in general.

Consultant research involving qualitative methods should indicate how they have

sought to ensure that issues around anonymity, „conversationalism‟, peer pressure and

inclusion have been addressed. It is acknowledged that these issues can never be

entirely eliminated but conclusions should reflect that fact.

Conclusions in qualitative research should be derived from the data as systematically

as with quantitative research. Clear contemporaneous notes should be made at the


point of elicitation of participants‟ views such that they can normally be distinguished

from any subsequent interpretative work done on such notes.

It is good practice particularly in interview methods to allow the participant to check

that the interviewer has correctly recorded the views expressed. This can be done by

presenting a brief summary of main points.

Consultants should be able to demonstrate how conclusions and recommendations

follow from the data. The University will normally carry out an „evidence trail‟ for a

small number of selected specific conclusions in each final report while respecting the

confidentiality of the data.

Vague or casual statements such as „The view was expressed that X” or “Some

respondents did not wish to comment on topic Y” add little value and should be

avoided. Ideally the percentage of respondents in interviews indicating a specific view

should be highlighted where a precise question is asked and answer given. However,

this should not be used to give the impression of quantitative rigour where this is not

valid. Clear statements of “small minority”, “large minority” [i.e. less than half],

“majority”, “large majority”, “almost all” or “all” should be used. If other

conventions are used they should be clearly flagged up. Whatever conventions are

used they should be used consistently.

Reporting specific quotes from participants can be a good way a highlighting a key

issue in a manner which captures attention and help the reader relate to a perspective

other than their own. However there is a danger that these can skew perceptions

inappropriately. „Illustrative‟ quotes should be used sparingly and should be

representative. Report writers should avoid the temptation to foreground dramatic,

extreme, witty or pithy comments when they are not representative of majority

opinion2.

Statements which are only true of a sub sample should not be presented as being true

of the sample as a whole. Equally, statements which are true of the sample as a whole

should not be presented as true only of a sub sample.

2.8 All consultancies will be evaluated and subject to audit

As part of a commitment to continuous improvement, the University will assess the

extent to which a consultancy brief has been met through a report from the

commissioning manager normally to the commissioning managers own manger.

2 Highlighting an unrepresentative but memorable quote early in a report but then presenting information that

indicates the view expressed is not necessarily representative - to cover the author - is particularly poor practice


POLICY

3.0 Financial Regulations

3.1 The Financial Regulations of the University apply to all consultancy contracts let by

the University. Particularly important are those regulations pertaining to competition

and proof of value for money specifically:

(a) Contracts over £5000 are let following at least three quotations being

obtained.

(b) Contracts over £50,000 are subject to a formal tendering process involving a

minimum of four suppliers and the Group Executive Director of Finance‟

approval

(c) Contracts over £173,000 are subject to an EU tendering process and the

University‟s approved authorisation levels.

Where such conditions apply that compliance with a) or b) is not possible or

impracticable then the approval of the Group Executive Director of Finance, via the

Head of Purchasing must be obtained prior to the placing of any purchase order or

contract (see 3.5). EU tenders are a legal requirement and as such the requirement

cannot be waived.

3.2 Contract signatures

The University part of any resultant contract can be signed by the Faculty/Service

approved signatory. For contracts greater than £5000, these can only be signed by the

Group Executive Director of Finance. Contracts for signature should be forwarded in

the first instance through the Head of Purchasing.

3.3 Teaching Services, and Contracts Involving Members of Staff

If it is proposed that existing staff members undertake additional duties outside their

job description, then advice should be sought, in the first instance, via Human

Resources, given that it is not University policy to engage existing staff on

consultancy contracts.

3.4 Standard Contract

The‟ Standard Contract for the Purchase of Consultancy‟ must be used for all

consultancy contracts over £1,000 in total value (repeat contracts where the sum of

the parts is over £1000 also require use of the contract). Requests for assistance with

variations or prospective alternative contracts should be addressed initially through

the Head of Purchasing.


3.5 Single Source Tenders or Quotations

The Financial Regulations require that all contracts let between £5,000 and £50,000

are subject to the three-quotation rule. In the unlikely event of only one quotation

being obtained, a full written explanation stating the reasons for this should be sent to

the Head of Purchasing prior to any contract or order placement. The Head of

Purchasing will approve such contracts upon receipt of valid explanations.

3.6 Relationship with Prospective Suppliers

All members of staff are reminded of the University requirement for full disclosure of

any personal relationships with prospective suppliers at the earliest possible juncture.


As part of a commitment to continuous improvement, the University will assess the extent to which a

consultancy brief has been met through a report from the commissioning manager, normally to the

commissioning managers own manager.

Prepare

Specification

Check if internal

resources are available

OVER

£50,000?

Receive and Assess

Responses

Meet with successful

candidate to discuss

aspects of contract

Prepare contract and

send to Head of Purchasing

if over £5k

Send signed contract to

consultant for signature

Once returned raise

PURCHASE ORDER ON

AGRESSO

Monitor contract against

deliverables, cost and timescales

Yes No

Send specification to prospective

consultants requesting quotation

(minimum of 3 written quotes

required)

Contact Purchasing Office to

Arrange formal tender

4.0 The Process: Hiring of Consultants


GUIDELINES

5.1 Introduction

The process of hiring external consultants can be difficult and resultant success of the

consultancy can hinge on the strength, accuracy and arrangement of detail in the

contract and contracting process.

5.2 Specification

The specification is a crucial part of any consultancy contract. This should contain:

1. A full brief for the prospective consultants outlining the University‟s

problem/needs/requirements.

2. Detail of the scope and type of advice required from the prospective

consultants.

3. Detail of any constraints which the University wishes to place on the

preferred solutions.

4. Lists of tasks which must be performed by both University and prospective

consultants.

5. Timescales for the consultancy contract including expected start and

completion dates.

6. A list of expected tangible deliverables from the prospective consultancy

(see points 4.7.1 and 4.9.1 for further details)

7. References where appropriate.

5.3 Internal Resources

Once the specification document is complete, it is very important to consider the

possibility of internal University resources providing solutions to the consultancy

requirement.

5.4 Preparation for Invitation to Quote/Tender

5.4.1. The Financial Regulations of the University dictate the route that should be

followed as the next step. Requirements where expected expenditure will be

less than £50,000 can be covered by an invitation to quote. Requirements

above this figure are subject to a formal tendering requirement.

5.4.2. Invitation to quote will normally be instigated by letter. A copy of the

specification and a copy of the standard consultancy agreement should always

be sent with the letter. (See Standard Contract for the Purchase of

Consultancy)

The letter should also contain the following statement:


“Any contract for consultancy resulting from this invitation will be covered

only by the terms and conditions attached. Other terms and conditions will

not be accepted.”

This has the effect of imposing the University contract at the earliest possible

stage and responses can then only be sent subject to our terms and conditions.

5.4.3. The letter should also formally request that the prospective consultant sets out

in full all charges for undertaking the work including:

1. A basis for the quoted fees.

2. A statement of total fees

3. Expenses: wherever possible all expenses should be an inclusive item

of the total fees. Wherever this is not possible, see note 4.11.1 for

further advice.

5.4.4 When engaging with an external consultant it is important to establish whether

he/she is VAT registered. If the consultant is VAT registered, VAT at the

current rate will be incurred on the services supplied to the University, in most

circumstances. In most cases the VAT will be a cost to the University (as the

University cannot recover all of the VAT it incurs), and therefore this needs to

be considered when determining the cost of a project. It is important to check

the service contract with the consultant to determine whether the fees charged

are VAT inclusive or exclusive. Where the consultant is not VAT registered,

no VAT will be charged on their services to the University.

5.4.5. Formal tenders are dealt with exclusively by the Purchasing Office and the

Head of Purchasing will have responsibility for ensuring the contract is sound

and complete i.e. minimising risk whilst ensuring expected benefits are

delivered. Contact should be made at the earliest possible opportunity

(extension 2220) to commence the tendering process, which can take up to 6

months.

5.5 The Tendering Process

There are several advantages and some misconceptions regarding the tendering

process where some clarification is beneficial:

1. The actual tendering process need not be a long process, and indeed can be faster

in some cases than a quotation exercise.

2. After the production of the specification, the Purchasing Office will undertake all

the work up to the point of assessing tender responses.

3. The formal tendering process can be used for any value of contract over £50,000

and can in certain instances be used for values below this amount.


4. There is greater security and safety in the tendering process in that it forces

suppliers to be very exact in their response.

Please consult with the Head of Purchasing who can advise upon the Tendering Procedures

(which can be found on the Purchasing Offices web site) for further information and assistance.

5.6 Assessment of Responses

5.6.1. Assessment of responses to either a tender or quotation exercise should be

carried out against standard value for money criteria or technical merit as

detailed within the specification.

5.6.2. It may be necessary and in some cases advisable to request the potential

supplier to undertake a verbal presentation regarding their submission, in order

for both parties to clarify points and aspects of the intended contract. This is

however entirely up to the individual or working party overseeing the

assessment part of the process.

5.7 Making a contract

Prior to award of contract, it will be necessary to undertake some final negotiation

with the prospective consultant. Points which require address could include:

1. Method of authorisation for any additional work above the billing (invoicing)

agreed for the original contract (if necessary).

2. Method of payment and billing.

3. Agree firm deliverables with the prospective consultant against which the success

of the consultancy can be measured (see Schedule A of the Consultancy

Agreement).

4. Confirm timescales (see Schedule A of the Consultancy Agreement)

5. Do you require the consultant to be exclusive to the University or to prevent them

from supplying similar services elsewhere? If so contact the Purchasing Office

who will obtain legal advice on your behalf.

5.8 Contract and Signature

5.8.1. Once both parties have agreed to all aspects of the consultancy and prior to

raising a purchase order, a consultancy agreement should be completed and

sent to the Head of Purchasing (See Standard Contract for the Purchase of

Consultancy) who will arrange Group Executive Director of Finance signature

(refer to „Authorisation Levels‟).

5.8.2. Once signed the contract should then be sent to the supplier for signature and

following return a purchase order can be raised and issued.


5.9 Monitoring of Consultancy

It is important at stages of consultancies (particularly those of length in time) to assess

progress against deliverables, timescales and costs. It must be remembered that the

consultant has contracted to provide a timely and full service and any payment for

service rests and should be linked to your satisfaction with the results. A timely

warning if it is felt that targets are not being achieved may well rescue a situation,

turning a poor result into something more acceptable. Critical but constructive

honesty should be welcomed by most consultants. Therefore, monitoring or contract

review meetings should always form part of the contract.

5.10 Contract extension

Any contract extension will necessarily change the terms and/or circumstances of the

original contract. The change could be in respect of payment, fees, agreed delivery

time, agreed deliverables, reporting mechanisms etc. The safest way of dealing with

this on a contractual basis is to agree and raise a new contract stating the new

arrangement. Any contract extensions shall be in compliance with the University‟s

Financial Regulations and EU Tender Regulations.

5.11 Travel expenses

Travel expenses should always be negotiated into the contract sum agreed to be paid

to the Consultant. On rare occasions this is not possible and it will be necessary to

agree to pay daily travel and subsistence expenses on top of the contract sum. Staff

are advised to use the current University travel expense allowances for staff as a

guideline to what can be considered a reasonable basis for negotiations (Appendix 1

for current rates), noting that expenses are revised annually. It is also important to

constantly monitor all Consultant expense claims insisting that receipts are rendered

with each invoiced claim

5.12 Assistance

Every form of assistance with any and all aspects of this contracting process is always

available from any member of the Purchasing Office.

6.0 Methods of payment

There are only two methods which should be used to facilitate payment to suppliers,

these being an Agresso purchase order / invoice or Procurement Card. When

contracting with Consultants the preferred method of processing a payment will be

through the Agresso Purchasing/Finance system, by the receipt of an invoice from the

Consultant.


Appendix 1 (see point 5.11)

Current University staff rates are available on the Travel Office web site and are

revised annually

Travel Subsistence Rates

Please note that consultant‟s travel expenses should be negotiated as part of the

overall price package offered for the contract offered. Use of the above as an extra to

a consultancy contract should only be considered as a “special” or where extra work

is to be undertaken outside the contract. The above rates are presented as a guideline

only, any rates agreed should be “gross” and inclusive of VAT.



Appendix 2

Advice on Differentiation Between Employee and Self-Employed Status

Firstly, it must be emphasised that the distinction between a contract of employment and a

contract for services is very important. It affects whether a person is liable to pay income tax

under PAYE, the level of National insurance contributions paid, whether a person is entitled

to Statutory sick pay and whether the person has the employment protection and other rights

of an employee. The difficulty for employers in making this distinction is that even when

both parties explicitly agree that the contractual relationship between them is to have the

status of a contract for services rather than be governed by a contract of employment, this

agreement could be challenged by HMRC. Such a challenge could involve HMRC imposing

expensive financial penalties. In some purported self-employment cases the HMRC has

claimed arrears of PAYE from the employer on the grounds that the reality of the relationship

was that of employer and employee under a contract of employment. The University wishes

to minimise the risk of this situation arising and, accordingly, wishes to ensure that the

contractual arrangements entered into correctly reflect the status of that relationship as either

one of employment or self-employment.

This issue is not merely of hypothetical interest. In a recent case a University had to defend

itself at an Industrial Tribunal case brought by a person formerly engaged by that University

on a self-employed basis who claimed that in reality he was an employee of the University

and should, therefore, enjoy specific employment rights and protections. Correspondence was

also issued to the same University from the HMRC querying the self-employed status of

another individual paid by the University on a consultancy basis.

Unfortunately, there is no simple checklist of factors which allow the distinction between the

two categories of contractual relationships to be safely made. The courts have made

judgements on individual cases based on an overall assessment of all the relevant factors in a

particular case, accepting that not all the relevant factors are of equal weight or importance in

any given situation.

Being employed or self employed in one job does not mean that a person will have the same

status in another job. A consultant could be employed and self employed at the same time. It

is the responsibility of those engaging consultants to ascertain the correct status.

The HMRC do have a useful online tool to try;

https://esi2calculator.hmrc.gov.uk/esi/external-cod.html which provides a series of questions

for you to answer, and then provides a guide to the consultants status.

Employed or self-employed?

A consultant answering „Yes‟ to all of the following questions may indicate employee status.

1. Do you have to do the work yourself?

2. Can someone tell you at any time what to do, where to carry out the work or when and

how to do it?

3. Do you work a set amount of hours?

https://esi2calculator.hmrc.gov.uk/esi/external-cod.html


4. Can someone move you from task to task?

5. Are you paid by the hour, week or month?

6. Can you get overtime pay or bonus payment?

A consultant answering „Yes‟ to all of the following questions may indicate self-employed

status.

1. Can you hire someone to do the work for you or engage helpers at your own expense?

2. Do you risk your own money?

3. Do you provide the main items of equipment you need to do your job, not just the small

tools many employees provide for themselves?

4. Do you agree to do a job for a fixed price regardless of how long the job may take?

5. Can you decide what work to do, how and when to do the work and where to provide the

services?

6. Do you regularly work for a number of different people?

7. Do you have to correct unsatisfactory work in your own time and at your own expense?

The general advice is that wherever there is an element of ambiguity about the status of a

proposed contractual relationship the University should commission the work under a

contract of employment so as to eliminate vulnerability to subsequent challenge by either the

HMRC or the DSS in respect of PAYE contributions or National Insurance contributions

respectively. Please do not hesitate to contact Margaret Good, the Payroll Manager (x 2213 /

[email protected]) whenever you are in need of advice as to the appropriate nature of

any proposed contractual relationship.

Finally,

All formal offers of employment and contracts of employment may only be issued by Human

Resources (with the authority of the Head of Service).

and

When you propose to enter into a contract for services you must first send a new supplier

account request to the Purchasing Office.

Raise new

supplier request

form

Raise purchase

order and pay

by invoice

method


23: PURCHASING FLOWCHART

Does a contract exist for the goods/services you wish to purchase?

Purchasing Card Agresso

Typically used for

stationery, mobile

phones and any “low

value, one-off”

purchases. Generally

limited to £1000 per

transaction and £5000

per month

Ensure supplier set up on Agresso before ordering. To set a supplier

up complete form1 and email to purchasing.

Your order should contain:

Price

Delivery date

Delivery charge if any

Delivery address

Detail your name and tel no for queries

Anything the supplier wishes you to quote on your order eg

ref no‟s.

Ensure that you only trade on the University‟s terms and conditions.

If a supplier wishes you to accept their conditions contact

Purchasing.

Up to £30 £31 - £5,000 £5,001 - £50,000 £50,001

upwards

Petty cash

or the

Purchasing

Card

should be

used.

Obtain an

estimated price

from the supplier

or contact

Purchasing to

obtain prices on

your behalf

Obtain 3 written

quotations on the

UCLan quote

form or complete

Purchasing

request form and

Purchasing will

obtain on your

behalf

Tender

procedure

contact

Purchasing

Office

as soon as

possible for

advice

Yes Don‟t know No

Place your order by

Purchasing Card or on

Agresso

Check on the Purchasing Office website

buyers guide

Buyers Guide

or call 2223/5 for advice

How much are you

spending singly or

cumulatively

excluding VAT?

http://www.uclan.ac.uk/information/services/finance/purchasing/buyers_guide.php

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