Procurement Policy

Application

1. This policy applies to all staff of the University of Waikato.

Purpose

2. The purpose of this policy is to:
   1. set out the principles and processes that apply with respect to procurement by the University
   2. ensure that the University's procurement function is carried out within a clearly defined and transparent internal control framework
   3. ensure that the University's procurement processes comply with relevant legislation and accounting practices
   4. ensure that procurement and purchasing processes are conducted in a manner that ensures the University maintains a reputation for being fair and unbiased when dealing with suppliers.

Scope

3. This policy applies to all procurement and purchasing activities using funds held or managed by the University of Waikato, regardless of their source and including Research Trust funds.

Definitions

4. In this policy:
   1. preferred supplier means an individual or organisation that has been awarded preferred status for the supply of specified goods or services to the University, following a competitive process which has resulted in a procurement contract
   2. approved supplier means a supplier approved by the Financial Services Division (FSD) Procurement Manager to supply goods or services to the University
   3. gift means a good, service, voucher or hospitality, which is free of financial charge or a prize from an external party, and which would not ordinarily be a legitimate expectation associated with the staff member's employment with the University
   4. fixed asset means an item that has a useful life that is estimated by the Chief Financial Officer to be in excess of one year and a purchase value that satisfies the capitalisation thresholds set by the FSD
   5. ICT means desktop computers, laptops, servers, monitors, printers, audio-visual (AV) equipment, software and network equipment, but excludes basic office IT printer consumables such as laser or ink printer cartridges that can be ordered through the UniMarket system
   6. procurement means the strategic approach to sourcing and purchasing goods and services, including the identification and selection of suppliers following a competitive process, the negotiation of contracts and the management of contracts
   7. procurement contract means a legal contract for the purchase of goods or services from a supplier
   8. purchase order means a legal sale and purchase agreement between the University and a supplier
   9. purchasing means the transactional process involved in obtaining goods and services, and includes raising purchase orders, authorisation and receipting
   10. tender period means the period beginning at the time the University has notified a person or organisation of the intention to go to market with a tender - this may be earlier than the publishing of the tender - and concluding when a procurement contract is signed by the University and the successful respondent and the unsuccessful respondents have been notified
   11. 'whole of life cost' means the total cost, including purchase cost, maintenance costs and residual value (where applicable).

Related documents

5. The following University policies must be read in conjunction with this policy:
   • Financial Ethics Policy
   • Financial Authority Policy
   • Discretionary Expenditure Policy
   • PCard Policy
6. The following documents also set out further information relevant to this policy:
   • Merchandise Policy
   • Contractor Health and Safety Policy
   • Environmental Policy
   • ICT Equipment and Procurement Policy
   • Independent Contractor Policy
   • Koha and Donations Policy
   • Rental Vehicle Policy
   • Travel and Accommodation Policy

Principles

7. Staff must not approve purchase orders that they themselves have raised.
8. Staff must raise purchase orders prior to goods or services being supplied.
9. Unless negotiated otherwise, all procurement contracts and purchasing agreements must include a reference to, and comply with, the University's Standard Terms and Conditions of Purchase.
10. Where a preferred supplier contract is in place, the supplier(s) specified in that contract must be used for the purchase of the relevant goods or services.
11. When purchasing other than through a preferred supplier contract, staff must satisfy themselves that the purchase offers the most cost-effective 'whole of life cost' for the University.
12. Deans, Directors and equivalents are responsible for ensuring that all purchases of fixed assets within their area of responsibility are recorded on the University's Fixed Asset Register, by notifying the FSD Fixed Asset Officer.
13. Staff who purchase goods or services must adhere to the principle that if all relevant factors are equal, the University prefers to favour New Zealand and Australian suppliers, in that order of priority.
14. Staff who purchase goods or services must adhere to the principle that if all relevant factors are equal, the University prefers to select those that are less environmentally harmful.
15. Before considering the purchase of a new item, staff must consider the option of re-using an existing item; information about re-using existing items is set out in the Purchasing Process Manual (link to be advised).
16. The Chief Financial Officer, the Vice-Chancellor and the relevant approving authority (as set out in the Financial Authority Policy) have the authority to disallow any expenditure that they consider, at their discretion, to be unreasonable.

Purchases up to and including $50,000

17. Where a preferred supplier contract is not in place for the relevant goods or services, staff who wish to purchase goods or services whose 'whole of life cost' is up to and including $50,000 must:
    1. use an approved supplier where one is in place, or
    2. follow the process set out in the Purchasing Process Guidelines.

Purchases over $50,000

18. Where a preferred supplier contract is not in place for the relevant goods or services, staff who wish to purchase goods or services whose 'whole of life cost' exceeds $50,000 must, before proceeding, consult the FSD Procurement Manager about the procurement process that is to apply.
19. If the FSD Procurement Manager advises under section 18 above that a tender process is to apply, the University's tender processes set out in the Tender Process Manual (link to be advised) must be followed.
20. The FSD Procurement Manager is responsible for maintaining a Central Tender Register for all current tender processes.
21. As an outcome of any procurement process advised under section 18 above, a contract will be negotiated, and is subject to approval by the Chief Financial Officer or Vice-Chancellor.
22. The relevant Dean, Director or equivalent is responsible for assigning staff to manage a contract negotiated and approved under section 21 above.
23. Staff assigned to manage contracts under section 22 above are responsible for:
    1. providing the FSD Procurement Manager with a copy of the contract signed by both parties, in an electronic format
    2. ensuring that the University receives the relevant goods or services at the agreed price and service levels
    3. managing associated risks as set out in the Supplier Contract Management Guidelines
    4. ensuring that the FSD Procurement Manager is notified not less than 3 months prior to the end date of the contract, so that he or she can review the contract and provide any advice about its re-negotiation if appropriate.
24. The FSD Procurement Manager is responsible for:
    1. supporting the contract management function
    2. ensuring that negotiated contracts are recorded in the Central Contracts Register.

Authorised purchasing systems

25. Staff who wish to purchase goods or services must do so through one of the following authorised purchasing systems, and in the following order of preference:
    1. with a purchase order generated through the UniMarket system
    2. with a University PCard (refer to PCard Policy)
26. Staff who raise purchase orders under section 25 a and b above must do so prior to the goods or services being supplied.

Online staff claims

27. Staff will not be permitted to use on-line staff claims to circumvent the authorised purchase systems set out in section 25 above.

Receipt of goods and services

28. Staff who have purchased goods or services must ensure that before receipting them through the UniMarket purchasing system, they are as ordered and are of an acceptable quality.
29. Goods and services must be receipted through the UniMarket purchasing system within five working days from their delivery.

Responsibilities of line managers

30. Line managers must ensure that staff, independent contractors and consultants working in their area of responsibility comply with this policy.
31. Line managers must ensure that appropriate documentation is maintained for all procurement decisions and procedures undertaken within their area of responsibility.

Conflicts of interest

31. Staff who have a conflict of interest, actual or perceived, that may affect their impartiality when conducting procurement activities on behalf of the University must submit to the FSD Procurement Manager a signed Conflicts of Interest Declaration.

Confidentiality

33. Staff involved in procurement activities on behalf of the University must ensure that the details are kept confidential to those directly involved in the relevant negotiations and activities.

Preferred Suppliers

34. The FSD Procurement Manager is responsible for ensuring that appropriate consultation is undertaken when preferred supplier contracts are being negotiated or reviewed.
35. Authority to approve preferred supplier contracts rests with the Chief Financial Officer and the Vice-Chancellor.
36. Where there is a choice of preferred suppliers for particular goods or services, staff may choose which one to use.
37. Where a purchaser considers that there is a compelling reason not to use a preferred supplier, a case justifying the use of an alternative supplier must be made in writing to the FSD Procurement Manager and is subject to approval by the Chief Financial Officer; approval must be obtained before the purchase is made.

Internal requisition through specialised purchasing units

38. Staff who wish to purchase the following types of goods must do so in consultation with the internal suppliers shown:
    • hard copy or online books and serials: the University Library
    • ICT: Campus Computers (the procurement of ICT is subject to the ICT Equipment and Procurement Policy).

Gifts

39. In their capacity as staff, staff must not accept cash as a gift under any circumstances.
40. During the relevant tender period, staff must not accept a gift of any type from a supplier of goods or services where those goods or services are the same as, or similar to, goods or services that are currently the subject of a tender process; information about current tenders is set out in the Central Tenders Register.
41. A staff member who is offered a gift, and wishes to accept it, must disclose the details of the offer to his or her line manager; the relevant line manager has authority to determine whether the gift may be accepted and if so, whether it must be shared with other relevant staff.
42. Each Dean, Director or equivalent is responsible for ensuring that staff within his or her area of responsibility record any gifts received, which meet the criteria set out under section 43 below, on the University Gift Register in iWaikato.
43. Where the value of a gift accepted under section 41 is estimated by the relevant line manager to exceed $100, the details of the gift must be recorded in the University Gift Register in iWaikato; where several gifts have been made by the same external party to several staff at one time, they must be treated as one gift and the collective value calculated accordingly.
44. The FSD Procurement Manager is responsible for conducting regular reviews of the University Gift Register.
45. Staff must not allow the receipt of gifts to influence their business decisions on behalf of the University.

Loyalty programmes

46. Staff must not allow membership of any loyalty programme to influence their business decisions on behalf of the University.

Responsibility for monitoring compliance

47. The Chief Financial Officer is responsible for monitoring compliance with the policy and reporting any breaches to the Vice-Chancellor.
48. Breaches of this policy may result in disciplinary action under the Staff Code of Conduct.

Authority to waive provisions of this policy

49. The Vice-Chancellor has authority to waive or vary the provisions of this policy in individual cases.