AN OVERVIEW OF THE UNIVERSITY PROCUREMENT STRATEGY Keith Mason Deputy Director of Estate Management (Purchasing)

Agenda Current procurement strategy and plan How to identify suppliers, products and pricing for goods and services University Purchasing Regulations How to buy goods and services Role of Central Purchasing Questions

New procurement strategy and plan (1) Strategy and plan based on 5 key objectives: Opportunities owing to the implementation of a new FMS Introduce consistency throughout the procurement process To take account of the environment in the procurement decision making process Target of £3m cashable and non-cashable savings during 2008 – 2011 Development of electronic systems (eTendering and ePurchasing

New procurement strategy and plan (2) Roll out the Agresso purchasing module throughout all departments and sections Competitive quotations to be obtained by staff with procurement skills Implementation of a stock profile that facilitates the maintenance of the campuses via the Agresso module Locations for the receipt of non-stock goods

How to identify suppliers, products and pricing for goods and services CPU website National, regional or local contracts Hardcopy catalogue/price list and online catalogue/pricing /telephone contact

CPU website

University Purchasing Regulations The University Purchasing Regulations should be considered in the purchasing process Value Approach £1 - £499Price List/Telephone £500 - £1,999Single written quotation £2,000 - £24, written quotations £25, tenders £130, tenders + EU

How to buy goods and services (1) Purchase orders must be raised on the Agresso system for goods and services Permitted exceptions: Books and publications ordered by the Library Internal suppliers e.g. catering, hospitality, printing and reprographics

How to buy goods and services (2 ) Permitted exceptions: Utilities, telecoms, postal and mail services Low value petty cash purchases Travel and subsistence reimbursed via expense claims Goods and services procured by use of a purchasing card

How to buy goods and services (3) Purchasing cards should be used in accordance with the purchasing procedures: Travel – air/rail/road Hotels and accommodation Books and periodicals Office stationery

How to buy goods and services (4) Procedure for purchasing stationery Previous Hard copy requisitions Stock and non-stock routes of supply Stock management Current Non-stock supply via Agresso Frequent deliveries Invoiced following each delivery Next Stage Purchase stationery on-line Utilise purchasing card (monthly statement) 3 deliveries per week-desk-top service available

Authorisation structure for requisitions Order Value Description <£10,000 Self approval or Departmental Administrator/Purchaser for approval £10,000 - £100,000 Departmental Administrator/Purchaser plus HOD for approval (further bands within this range can be decided by Departments separately) >£100,000 Departmental Administrator/Purchaser plus HOD plus PVC for approval

Role of Central Purchasing Unit Develop procurement strategy Monitor Procurement Plan Compile procurement procedures Manage Purchasing Regulations Report annually to USG on procurement activity Manage the tender process (£25k) in collaboration with users Offer help and advice to staff including: OJEU advertising Development of tender documentation, including contract award criteria Evaluation of bids Award of contracts

Contracting Procedure

Key Considerations CPU website Purchasing Regulations National/Regional contracts Environmental Savings Purchase orders Purchasing cards Authorisation structure Contracting procedure Advice and support

Areas To Be Addressed Responsibility for management of the Supplier Master File Responsibility for the regular analysis of management information from Agresso to determine where greater value can be achieved Introduction of Purchasing Cards throughout the University Further development of processes (eTendering and eProcurement ) Resources within CPU Cross section working-CPU/Finance