FMPM711 Procurement Procedure
The Procurement Procedure outlines the procurement processes at James Cook University (JCU) in order to:
- achieve value for money and continuous improvement in the provision of goods and services (including construction) for JCU, recognising that value for money is more than the price paid;
- focus on a category management approach with a strong governance framework and integrated planning;
- ensure compliance with legislative requirements;
- ensure procurement is undertaken with integrity, that probity is appropriately managed, and that accountability for outcomes is maintained; and
- minimise the cost of submitting quotations and offers for potential Suppliers.
JCU has an obligation to ensure procurement processes, activities and documentation demonstrate accountability and compliance with the current Queensland Procurement Policy as updated from time to time.
This procedure applies to all JCU staff (including adjuncts) and students (full-time, part-time, temporary and casual) when conducting business on behalf of JCU. It also applies to Contractors or Consultants who are procuring goods and services on behalf of JCU.
This procedure does not extend to the provision or securing of grants, engagement of staff members on the JCU payroll, or acquisition, disposal of Real Property interests and market-led proposals and projects which are covered by the Queensland Government Project Analysis Framework.
Compliance with this procedure is mandatory. It is expected that every effort will be made to ensure standards of conduct outlined in this document are respected in all procurement activities conducted for and on behalf of JCU. Failure to comply with this procedure may result in disciplinary action.
Acquisition - any procurement of any kind in the form of ‘supply’ including goods and services, and the receipt of advice or information.
Blanket Order or Standing Order – a purchase order for the regular, ongoing supply of goods or services that negates the need to raise new purchase orders each time a new supply with the same Supplier is required.
Closed Offer – an offer process where Requests for Offer are issued to pre-selected Suppliers only.
Conflict of Interests – a conflict of interest arises for a member of JCU staff when there is a conflict between the staff member acting for the benefit of the University and the staff member’s own private interest, e.g. a staff member has a financial interest in a company which has offered for the provision of goods and services to the University. Conflict of interests can involve financial or non-financial interests of the staff member and the interests of a business partner or associate, family member, friend or person in a close personal relationship with the staff member. A conflicts of interest can be reasonably perceived, potential or actual conflict of interests. See Section D.
Consultant and/or Consultancy – A consultant provides advice and preliminary guidance in accordance with JCU needs, often in regards to a specific project.
Contract or Agreement – a legally enforceable promise to which all parties agree, which creates a mutual set of obligations to do certain things that the parties are bound, at law, to carry out.
Contractors – are engaged to complete a certain service or perform tasks delegated to them. They usually retain more control over their tasks and methods in completing a job. Contractors can help complete tasks that require specialised skills.
Contract Manager – the person nominated by JCU to manage the day-to-day matters of the contract. See also Superintendent.
Contract Owner – the head of organisational unit who initiates a Request for Offer (RFO). The Contract Owner may also be responsible for the management of any subsequent contract.
Corporate Procurement Plan – the plan that sets out the JCU objectives to be achieved through procurement activities consistent with the objectives of the Queensland Procurement Policy 2018, how JCU will meet its specified objectives, and mechanisms through which the achievement of JCU’s procurement objectives will be measured.
Delegate/Financial Delegate – refers to JCU staff authorised by a valid instrument delegating the authority of the University Council to sign a contract or document within a financial limit on behalf of JCU as set out in the JCU Delegations Policy and JCU Financial Sub-delegations Register.
Evaluation Criteria – the criteria used to evaluate the compliance and/or relative ranking of offer responses.
Expression of Interest (EOI) – a request for information used to shortlist potential Suppliers before seeking offers. Usually, the information is high-level and specific and is used to identify potential Suppliers interested in, and capable of, delivering the required goods or services.
FinanceOne – JCU’s corporate financial transaction and management system.
Goods – a commodity, or a physical, tangible item that satisfies some human want or need, or something that people find useful or desirable and make an effort to acquire it.
Individual Contractors/Sole Traders – is a person trading as the individual legally responsible for all aspects of the business. This includes any debts and losses, which cannot be shared with others.
Mex Work Order – An official JCU document issued by the Estate Directorate that authorises a purchase transaction. When accepted by the supplier, it becomes a contract binding on both parties. A Mex Work Order sets out the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific supplier.
Modern Slavery - includes human trafficking, slavery and slavery like practices such as servitude, forced labour, forced or servile marriage, debt bondage and he worst forms of child labour.
Procure to Pay (P2P) – the Strategic Procure to Pay Unit within the Directorate Financial & Business Services.
Pre-Qualified Suppliers – a number of specialist Suppliers in a field or industry who have been pre-qualified through an open offer process.
Preferred Suppliers – parties with whom JCU enters into a Preferred Supplier Agreement (PSA), Standing Offer Arrangement (SOA) or other form of contractual arrangement with JCU.
Preferred Supplier Agreement (PSA) – an agreement between JCU and a Supplier which defines the nature of the goods or services to be provided to JCU by the Supplier, the financial limit and duration of the PSA and may include a schedule of rates or charges that apply during the life of the PSA.
Preferred Supplier Panels – a number of specialist Suppliers in a field or industry who have been assessed through an open offer process and have entered into a Preferred Supplier Agreement with JCU.
Probity Advisor – a person or company which provides advice and assistance before and during the course of the procurement process, as a basis for improving the procurement outcome and addressing probity issues that arise.
Procurement – the act of obtaining or buying goods and services. This process includes planning, preparation and processing of a demand as well as the end receipt and approval of payment.
Purchase – a form of ‘supply’ including goods and services, and the receipt of advice or information, in exchange for money or value; also called buy.
Purchase Order – An official JCU FinanceOne document issued by the P2P team that authorises a purchase transaction. When accepted by the supplier, it becomes a contract binding on both parties. A Purchase Order sets out the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific supplier.
Purchaser – a staff member, student, contractor or work unit making a purchase acting on behalf of JCU.
Property – Includes goods, plant and equipment, buildings and infrastructure of all kinds.
QTender - Queensland Government website used by JCU to advertise all open Requests for Offer.
Real Property – Includes land interests of all types including freehold and leasehold.
Request for Offer (RFO) or Invitation to Offer (ITO) – initiating a competitive process, such as a RFQ, RFP or RFT, in which suppliers are invited to submit an offer for the supply of goods and services.
Request For Proposal (RFP) – a procedure used to request or encourage Suppliers to propose solutions to achieve a desired outcome or resolve a specific problem, especially for larger and more complex requirements.
Request for Quotation (RFQ) – a request for an estimated total cost of a procurement from a Supplier for a specific goods or service.
Request For Tender (RFT) – a request for offers that includes a set of defined requirements, where tenderers are advised of all requirements involved, including the conditions of tendering and proposed contract conditions. This process can entail multiple stages for more complex requirements and is the most viable and transparent procurement method.
Single Contracted Supplier – where JCU has established a contract with one Supplier to provide a specific type of good or service.
Single Source Supplier – a Supplier selected by JCU without the completion of a competitive process in a market where there is more than one Supplier.
Sole Source Supplier – a Supplier selected by JCU where there is only one Supplier capable of supplying the goods or services in the market.
Standing Offer Arrangements (SOA) – refers to Queensland Government and other approved forms of Standing Offer Arrangements.
Statement of Requirements (SOR), (also referred to as Specification or Scope of Work) – a detailed description of the of the Goods/ Services to be provided by the successful tenderer/s including technical specification, service levels and performance framework.
Superintendent – a person appointed by JCU to manage the interaction between the contractor and JCU and who has specific roles as determined by the Contract. The Superintendent independently performs all valuations, assessments and certifications required by the Contract reasonably and in good faith.
Superintendent’s Representative – a person appointed by the Superintendent to exercise the functions delegated by the Superintendent.
Supplier – supplies goods or service to JCU, includes a Contractor or Consultant.
Social Procurement – the process involves JCU meeting a need for goods and services in a way that achieves value for money and generates benefits not only to JCU, but also to society and the economy, while minimising damage to the environment; by using best endeavours to do business with ethically, environmentally and socially responsible suppliers..
University or JCU – Refers to James Cook University ABN 46 253 211 955 a body corporate constituted under the James Cook University Act 1997 (Qld) and where the context permits, includes persons and companies to whom this procedure applies.
University Procurement Hub (UPH) – is an innovative way of delivering core procurement services by aggregating purchasing power across participating universities.
Value for Money – extends to considerations such as whole-of-life and opportunity costs, as well as non-cost factors such as fitness for purpose, quality, service and support, reliability and sustainability considerations. Value for money involves the concept of maximising the available benefits from every dollar spent. Value for money has several dimensions which require that:
- objectives are carefully considered and prioritised on a cost-benefit basis
- competing objectives are assessed and prioritised so that only those with high benefits are funded
- the most cost-effective options are selected to achieve objectives
- explicit evaluation is made as to whether the government or other potential providers are best placed to provide the services
- all activities, both recurrent and capital are subjected to the same rigorous analysis
- implementation is closely monitored to ensure adherence to budgets
- programs, activities and projects are continuously reviewed and evaluated to ensure outcomes are consistent with stated objectives, and benefits are realised.
Weighted Decision Matrix – a tool that can be used to identify the best value for money proposal taking into account both qualitative and financial criteria.
Table of Contents
Section A: Procedure
Section C: Additional Information
Section A: Procedure
JCU has an obligation to ensure documentation and processes demonstrate accountability and can be used to assure compliance with the Queensland Procurement Policy. The procurement flowchart outlines the procurement cycle and how purchasing activities are to be conducted at JCU. If in doubt, visit the ServiceNow knowledge base.
1. Procurement Planning
Procurement planning is required for every purchase. The extent of planning should be commensurate with the value and risk associated with the activity undertaken. The level of planning involved is relative to the risk and value of the procurement and the type of goods or services being considered.
1.1 The objectives of the planning phase of the procurement cycle are to:
- ensure the goods or services under consideration for purchase meet JCU’s needs;
- ensure both the legislative requirements and JCU policies and procedures are followed and a value for money outcome is achieved;
- ensure that the objectives of the JCU Social Procurement Guideline are taken into account; and
- manage the risks associated with the procurement.
Commensurate with the value and risk, all intending purchasers are responsible for identifying and planning their procurement processes. Planning may involve taking into account the following considerations as applicable to each purchase:
- Consideration be given to other forms of procurement other than purchasing including leasing or borrowing equipment or resources. The preferred option is the most cost-effective and sustainable option;
- identifying and preparing the evaluation criteria, and criteria quantitative weightings in the case of an evaluation panel being required;
- identifying whether or not the procurement requires advisors such as legal, probity or technical and developing a strategy for engaging their assistance;
- researching supplier and product options;
- researching social and sustainable procurement options that can be achieved;
- determining the intended lifespan of the goods/service and preparing a whole-of-life costing for the intended term of ownership;
- determining if insurance considerations are required and contacting the JCU Insurance personnel for advice if required;
- determining the budget and ensuring that funds are available (i.e. ensure that funding grants are fully signed etc.);
- determining the best procurement method according to category and threshold of spend;
- preparing a Statement of Requirements (SOR), detailing the Goods/Services to be provided by the successful tenderer/s including technical specification, service levels and performance framework. ;
- preparing an indicative timetable to set realistic timeframes and goals;
- identifying potential risks associated throughout the procurement process including work health and safety (WH&S), social, environmental or economic impacts that may cause delays in delivery; and
- seeking approvals from all relevant and accountable Financial Delegates.
1.2 The planning phase must ensure that sufficient knowledge, expertise, time and market engagement is applied to ensure both the legislative requirements and JCU policies and procedures are followed throughout the procurement.
Where contractual or probity arrangements are necessitated, the purchaser must involve the P2P unit at the beginning of the procurement stage in order to ensure procurement risks are managed and to reduce the risk of delays through rework or remediation of procedure non-compliance. JCU uses the following procurement plans:
- Significant Procurement Plans, for purchases >$500k and/or where there is high risk; and
- JCU Corporate Procurement Plan, for managing the University’s strategic procurement planning objectives and strategies.
1.3 Align the proposed purchases with the University’s strategic objectives.
Procurement plans should be seen as a ‘business case’ from a strategic procurement perspective for obtaining approval to approach the market. All purchasers are to consult with the P2P unit prior to preparing their procurement plans.
1.4 Significant Procurement Plans
Significant Procurement Plans must be prepared when procuring all goods and services that have been identified as being high expenditure and/or for which there is a high degree of business risk.
P2P is responsible for managing the Procurement activity for all procurements greater than $200k.
Working groups should be formed as a Procurement Planning team in appropriate cases, involving JCU stakeholders.
A Significant Procurement Plan should include, but is not limited to:
- the involvement of specialist advice or assistance where necessary;
- the incorporation of mandated probity processes and a probity plan;
- analysis and evaluation of internal demand for the procurement;
- analysis and evaluation of Supplier market;
- Competition and Consumer Act 2010 (Cth) considerations;
- establishing objectives to be achieved from the procurement and specifying how the procurement support’s JCU’s objectives, including those objectives outlined in the JCU Social Procurement Guidelines;
- developing and evaluating potential buying strategies and identifying the preferred strategy to follow;
- specifying measures for the evaluation of the implementation of the supply strategy; and
- developing a contract implementation plan.
Significant Procurement Plans, irrespective of value or risk, are to be signed by the evaluation team, and approved by the Manager, Strategic Procure to Pay prior to any engagement with Suppliers or the commencement of a request for offer process.
When preparing the procurement plan you must include meaningful evaluation criteria. Evaluation criteria will influence the content of the offer response schedules and offerers will be requested to provide responses to specific criteria.
1.5 JCU Corporate Procurement Plan
JCU is required to prepare a Corporate Procurement Plan which links JCU’s procurement to its Strategic Plan and covers the same period as JCU’s Strategic Plan. This plan is prepared by the Manager, Strategic Procure to Pay and must be approved by the Deputy Vice Chancellor, Services and Resources. It will be reviewed annually.
The Corporate Procurement Plan provides a directional statement for better procurement operations within the University. The P2P unit is required to assess whether the requirements described by this procedure have been met for high risk or high value purchases. This is to ensure alignment with the University’s Corporate Procurement Plan.
2. Quotation Requirements and Supplier Evaluation
Summary of quotation requirements noting all are GST exclusive:
2.1 Purchases from Preferred Suppliers
2.2 Purchases less than $1,000
2.3 Purchases less than $10,000
2.4 Purchases between $10,000 and $50,000
2.5 Purchases between $50,000 and $200,000
2.6 Purchases of more than $200,000
2.7 Purchases of Drugs or Poisons
Further information is available via Service Now
Note: One quote only is required for purchases up to $25,000 by JCU Legal and Assurance for the engagement of law firms for the purpose of providing legal advice.
2.1 Purchases from Preferred Suppliers; JCU’s P2P unit has negotiated agreements (under a JCU Contract or an approved Standing Offer Arrangement (SOA)) with a number of preferred Suppliers. Goods and/or services can be purchased from JCU’s Preferred Suppliers:
- Through the JCU store or online catalogue in My Requisitions, no quotes required
- By obtaining a single quote from the Preferred Supplier only, if the goods/services are not available from the JCU store or online catalogue
- No formal quotes required from other Suppliers
Items purchased under a JCU Contract or approved Standing Offer Arrangement (SOA) do not require formal quotes to be sought from other Suppliers. Purchasers can confirm the requirements related to specific purchases by contacting the P2P unit.
Where practical, purchases less than $1,000 may be made using a Corporate Credit Card. Note: Payments to sole traders, preferred or contracted suppliers and catalogue items are not permitted to be made via a Corporate Credit Card without the written approval of the Manager, Strategic Procure to Pay. Purchase orders should be raised for regular on-going requirements.
2.2 Purchases of less than $10,000 (GST exclusive) require a written confirmation of the full costs of supply from the selected supplier. Where quotes have been obtained they must be attached to the purchase requisition. Where quotes are not attached Procurement staff may contact the supplier to obtain the relevant information prior to releasing a purchase order to ensure the accuracy and completeness of charges.
2.3 Purchases between $10,000 and less than $50,000 (GST exclusive) require a minimum of two written quotes to be attached to the Purchase Requisition.
2.4 Purchases between $50,000 and up to $200,000 (GST exclusive) require a minimum of three written quotes to be attached to the Purchase Requisition.
2.5 Purchases over $200,000 (GST exclusive) will be the subject of a formal procurement activity managed by P2P as follows:
- Between $200,000 and $500,000, a formal quotation managed by P2P, a Significant Procurement Plan is not required
- Greater than $500,000, a formal request for offer process managed by P2P, a Significant Procurement Plan is required.
- Unless:the purchase is under an existing JCU contract or approved Standing Offer Arrangement;
- the Supplier has been pre-qualified in a process authorised by the P2P unit;
- the Manager, Strategic Procure to Pay certifies that a genuine emergency exists; or
- a decision has been taken to procure second-hand goods or equipment and has been approved by the Manager, Strategic Procure to Pay.
Purchasers involved in projects valued at $2.5million or more, or that are of regional or strategic significance, must comply with the Charter for Local Content.
2.6 Purchase of Scheduled Drugs and Poisons must follow the same quotation and evaluation procedures as noted above according to the value of the purchase. In addition to procurement procedures, additional approval and delegation requirements apply to ensure the University adheres to national and state regulation and classification guidelines. Please refer to HSE PRO 011 Drugs and Poisons Procedure. See Section B1 for further information.
2.7 Purchase of gift cards etc for staff/student awards and prizes or gifts to external parties are subject to approval under Section 1.07 of the Financial Sub-delegations Register. Where the value of the award to an individual staff member is greater than $300 it will be subject to Fringe Benefits Tax and the award must be notified to email@example.com .
2.8 When requesting a quotation, the Purchaser should include the following information for potential Suppliers:
- a description of the goods or services sought;
- contact details for the requesting staff member;
- delivery time or other requirements; and
- point of delivery or performance, as applicable.
The same principles of equity and fairness that apply to an offer process also apply to the quotation process.
A copy of all received quotes is to be attached to the purchase requisition. Where the lowest priced offer is not accepted, a justification for the selection is also required to be attached.
2.9 Formal written quotations must be obtained for purchases over $10,000 and up to $200,000 (GST exclusive). When obtaining and recommending written quotations, the purchaser should ensure that:
- all prices have been obtained from a fair selection of potential Suppliers on the same basis and no particular Supplier has been given an unfair advantage;
- all prices display both the GST inclusive and GST exclusive amount;
- the quote details the total cost of the purchase including items such as freight, handling, delivery, administration, taxes and duties;
- all Suppliers receive the request at about the same time;
- all Suppliers are given the same time to respond;
- ensure that at least one local and one Queensland supplier is invited to submit an offer;
- the same specification or description of the goods or services has been provided to all potential Suppliers; and
- the requirements have been defined in such a way as to not limit the ability of a Supplier to provide a quotation.
2.10 Where a formal request for quotation process is undertaken for offers over $10,000 and up to $200,000 (GST exclusive) an evaluation process is required to be undertaken, this includes:
- an evaluation summary must be attached to all purchase requisitions for purchases above $10,000;
- upon sending out Request for Quotations, the purchaser should also be identifying and preparing for the evaluation process;
- the evaluation process should provide a fair comparison between the responses using the principle of best value for money while also taking into account the objectives of the JCU Social Procurement Guidelines; and
- depending on the purchase, there are different methods of evaluation including:
- an informal ‘memorandum’ style summary to explain the method and reasoning behind the final selection;
- standard JCU evaluation form; or
- a formal (weighted) evaluation.
3. Engaging Individuals as Service Providers
JCU frequently engages third party individuals to carry out a range of services across the University.
There are legislative requirements that must be considered before engaging an individual third party to carry out services for JCU to ensure that JCU is compliant with all its obligations to the State and Federal Government as well as to the Service Providers. Wrongly classifying an individual Service Provider as an Independent Contractor where that person is really an Employee, is a legislative breach and may result in JCU paying significant fines and penalties. The law determines whether a Service Provider is an Independent Contractor or an Employee, FMPM 712 Engaging Individuals as Service Provides Procedure should be read and complied with prior to engaging with these individuals.
4. Preferred Supplier Arrangements
Suppliers may be identified as Preferred Suppliers. Where Preferred Suppliers are selected from a competitive process a Preferred Supplier Agreement (PSA) will be implemented. Where purchases are made under a Standing Offer Arrangement, quotations will not be required or in the event of a panel will only be required to be sourced from panel members. Contact the P2P unit on 07 4781 4583 or e-mail firstname.lastname@example.org for further information on accessing or establishing preferred supplier arrangements.
4.1 It is the responsibility of the Manager, Strategic Procure to Pay to ensure Standing Offer Arrangements are established:
- where the requirement is identified in the Corporate Procurement Plan;
- to ensure efficient and effective procurement practices are followed; and
- to ensure local Suppliers are given a fair and reasonable opportunity to provide goods and/or services to JCU.
4.2 The establishment of an Standing Offer Arrangement should follow the following process:
- clearly document the goods/services proposed;
- document the expected ‘spend’ during the full term of the agreement;
- identify the key selection criteria and performance indicators;
- prepare a procurement plan to document the strategy to be followed to identify the preferred Supplier/s including:
- consideration of the supply market;
- posting of advertisement/invitations to offer;
- details of the evaluation team; and
- opening of offers and the selection process.
- prepare standard University agreement documents;
- evaluation team to independently review responses;
- conduct further analysis, including referee checks as required;
- select the preferred Supplier;
- execute Standing Offer Arrangement agreement; and
- manage and review the arrangement.
4.3 A register of Preferred Supplier Agreements (PSA) will be maintained by the P2P unit and published on the Procurement website.
4.4 Purchases under an Standing Offer Arrangements are to be made via a JCU Purchase Order.
4.5 All Standing Offer Arrangements are reviewed periodically to ensure that they are meeting customer requirements and delivering value for money.
4.6 A Standing Offer Arrangement sets out the terms and conditions of any contract that may be entered into and include the following types of Standing Offer Arrangements:
a) Single Contracted Supplier
JCU has established a Contract with one Supplier to provide a specific type of good or service. Purchasers can order these goods or services at agreed rates, without the need to obtain further quotes.
b) Preferred Supplier Panels
- Preferred Supplier panels generally consist of a number of specialist Suppliers in a field or industry who have been assessed through an open offer process. These panels are reviewed periodically to ensure they are meeting customer requirements and delivering value for money.
- Predominantly, a panel is sought where there is a large number of Suppliers in a particular market and where JCU is seeking to maintain a shortlist of Suppliers that have met the core quality, sustainability, value for money, fitness for purpose, capability, and experience criteria.
- Preferred Supplier Panels are similar to Single Contracted Supplier agreements. However, a Supplier panel represents a selection of Suppliers from which Purchasers can order scheduled goods or services at agreed rates, usually based on price and availability.
c) Pre-Qualified Suppliers
- Pre-qualified Suppliers generally consist of a number of specialist Suppliers in a field or industry who have been pre-qualified through an open EOI process. These panels are reviewed periodically to ensure they are meeting customer requirements.
- A pre-qualified Supplier panel allows purchasers to select Suppliers to respond to a closed offer/quote process rather than simply engaging them to provide goods or services.
4.7 Purchasers who regularly purchase specific or specialised goods/services are required to contact the P2P unit to determine whether establishing an Standing Offer Arrangement will provide savings by:
- Consolidating expenditure with fewer Suppliers to take advantage of JCU’s purchasing power and achieve savings based on the volume of purchases;
- Streamlining the purchasing process and saving the administration costs involved in obtaining and comparing quotes for each individual purchase; and
- Establishing relationships with Suppliers to provide the timely provision of goods or services.
4.8 As JCU is a Queensland Government Statutory Body and a member of the Australian Universities Procurement Network (AUPN) and the University Procurement Hub (UPH), it is entitled to utilise current Supplier arrangements established by these entities. Standing Offer Arrangements may be utilised subject to the approval of the Manager, Strategic Procure to Pay. Use of single supplier arrangements under Queensland State Government, AUPN and UPH are NOT considered a departure from Quote and Tendering Procedures and therefore approvals in Section C Schedule 5 do not apply in those circumstances. Where a panel arrangement is in place obtaining quotes may still be required.
Where these Standing Offer Arrangements and Preferred Supplier Agreements are mandated for use by JCU staff, these arrangements will be published on the P2P website.
5. Intragovernmental Procurement
JCU may directly engage with other Queensland Government agencies to provide goods and/or services but is required to satisfy the obligations of the Queensland Procurement Policy. This includes demonstrating that value for money has been achieved and that any decision taken is transparent and defensible.
In acknowledgement of the above policies, JCU is not obliged to competitively tender for goods and services where value for money in procuring from another Government agency (including a commercialised business unit) can be assessed by alternative means, such as the direct cost and non-cost factors, along with other things such as operational efficiency and reduction in process duplication.
Where a JCU employee wishes to engage a Queensland Government Agency to provide goods and/or services a quotation must be obtained from the agency and a business case prepared that demonstrates value for money has been achieved. The request exemption from obtaining quotes form must be prepared and approved in accordance with the requirements for Departures from Procurement Policy in Section C Part 5 below, and a Purchase Order and/or Contract established prior to any work commencing.
6. Inviting Offers
Inviting offers is the process where JCU informs suppliers of its procurement requirements by ‘inviting’ suppliers to advise whether they are able to meet those requirements. Once JCU has received responses from suppliers that have been invited to offer, the successful offeror can then be determined. There are also different terms for the word offer. These include proposal, tender, quote/quotation and bid. Whatever the term used, the process of ‘inviting offers’ is an important step in the procurement of goods and services and must be performed in accordance with the principles of the Queensland Procurement Policy.
All open Requests for Offer must be advertised on QTenders unless an alternate means is approved by the Manager, Strategic Procure to Pay.
7. Evaluation, Negotiation and Award
Evaluating offers is a complex activity requiring consideration of legal, safety and ethical implications as well as pricing.
7.1 Offers must be evaluated by a minimum of two (2) JCU employees plus any subject matter experts required to ensure a fit for purpose outcome. Persons performing evaluations should ensure that they are fully conversant with all applicable legislative policy, standard documents and relevant JCU reference documents, including the JCU Social Procurement Guidelines.
7.2 All members of an Evaluation Team must notify the Probity Advisor or Manager of the Procurement process of any Conflicts of Interests and consideration will need to be given by the Probity Advisor or the Manager of the Procurement process as to how best to manage the Conflict of Interests – which may include removing the conflicted person from the procurement process.
7.3 Members of the Evaluation Team are prohibited from discussing any confidential information with persons outside the Evaluation Team or in public places and environments where such discussions may be overheard. However, in the event a Probity Advisor is involved in the offer process disclosure of confidential information to that person is permitted.
7.4 An initial assessment of offer submissions must be carried out by the evaluation team to ensure conformance. The following are key considerations that apply to offer conformance:
- all mandatory offer documentation has been completed and returned;
- calculations are correct;
- figures in words match numerical amounts;
- all issued notice to offerer-addenda have been included in offer documentation;
- all Departures are noticed in the relevant section of the offer pack.
7.5 A non-conforming offer should not necessarily be immediately excluded from consideration and must be referred to the Manager, Strategic Procure to Pay to ensure appropriate risk mitigation strategies are applied. For matters concerning the technical and operational non- conformance of an offer, the Contract Owner may refer the matter to their Supervisor for advice and determination.
7.6 All offers must be evaluated in a consistent manner against the evaluation criteria stated in the RFQ, RFT or RFP and Procurement Plan with the use of a weighted matrix analysis. Note, the evaluation criteria and weightings cannot be changed after the offer is released.
7.7 Offers offering an alternative solution that meets the performance and functional requirements should be considered on their merits subject to a fully conforming offer also having been offered.
7.8 Where shortlisted offerers are required to present to the evaluation team, this must be reflected in the Procurement Plan. Presentations by short-listed offerers should be undertaken consistently and fairly.
7.9 Offer presentations that form part of the evaluation process must be evaluated against the specific criteria and weightings stated in the Procurement Plan. Prior to the presentations the evaluation panel must prepare questions to ask the offerers which reflect specific evaluation criteria in a manner that allows offerers performance in the presentations to be scored.
7.10 Offerers must be asked substantially the same questions for the purpose of evaluation, however other questions may be asked for the purpose of clarifying an offer. JCU staff or other parties who are not part of the evaluation panel may be invited to attend presentations and provide feedback to panel members (stakeholders and subject matter experts). It is the role of the panel members to determine scoring, unless the stakeholders and subject matter experts have been identified as being part of the evaluation process in the procurement plan.
7.11 The decision to negotiate with shortlisted offerers will be made by the evaluation team in consultation with the Probity Advisor, if any. A Best and Final negotiation process should be undertaken to differentiate offers to achieve the best possible outcome for JCU.
7.12 Successful negotiations should result in a cost-effective agreement that is fair, durable, meets the legitimate needs of both parties and improves the relationship between parties.
7.13 During negotiations with offerers all contractual risks that have been identified previously must be considered. The primary objectives of negotiation should be to:
- test the understanding and assumption made by the offerers in determining their costs
- take the opportunity to clarify and rectify any false assumptions by either party;
- achieve operational refinements/enhancements that may in turn result in cost reductions rather than focusing on achieving cost reductions as a bottom line;
- put into place performance indicators to monitor ongoing contractual performance; and
- to ensure all parties are aware of their obligations in regards to safety by involving a designated safety subject matter expert to assist with negotiations with respect to issues related to safety.
7.14 Where possible, negotiations should take place in person. Negotiations must not alter the scope or intent of the offer or be conducted in such a way that has the potential to make the offer process void.
Note: Any change of scope must be referred to the Manager, Strategic Procure to Pay who will consult with the Chief Financial Officer for determination before the negotiation process continues.
7.15 At the end of successful negotiations, all parties should have the same expectations as to their respective obligations and how the contract will subsequently operate.
7.16 An evaluation report is to be prepared on the evaluation of offers received. This will form part of the recommendation and approval process and should include:
- details of the procurement process;
- a list of all offers received and respective offer prices;
- details of any late offers;
- any issues identified in relation to WH&S, environment and risk management;
- offers excluded from consideration and reason for the exclusion;
- where an offer fails to comply with offer documents, state where there is failure to comply;
- a spreadsheet showing a comparison of the scoring for each of the evaluation criteria;
- a report on negotiations with offerers (if any) post offer lodgement; and
- basis for the final recommendation.
7.17 Any decision to repeat the offer process should be made only in compelling and unavoidable circumstances. In particular, recalling offers to obtain a better price should be avoided. Any decision to recall offers needs to consider value for money and project budget.
7.18 On completion of the evaluation and best and final process (if any), it is necessary to document the selection using a formal written recommendation report to be submitted to the relevant Financial Delegate for approval.
7.19 Approval of supplier selection: All Financial Delegates approving the contract to be awarded must be provided with sufficient information to understand the evaluation process and the reasoning behind the decision, which will enable an informed judgment on the offer process and validity of the selection of the preferred offerer.
7.20 On completion of the evaluation, a member of the P2P unit will prepare or assist the Contract Owner the recommendation for awarding a contract which should include:
- recommendation summary;
- evaluation summary report;
- any issues;
- options (if any);
- financial impact;
- legal implications;
- safety report on issues, risks, hazards and mitigation strategies;
- environmental implications;
- staff implications; and
- external approvals required.
7.21 The P2P unit is responsible for arranging the award of the contract, the preparation or review of the contract documentation and advice to unsuccessful offerers after review by the Legal and Assurance Office. Contract acceptance may take the form of a letter of acceptance or a formal contract document.
7.22 Post-offer briefings will be conducted only at the request of an offerer. The debrief should not be used to justify decisions or as a forum to debate the evaluation process. This must be clearly communicated to the offerer prior to the debriefing session. A well-conducted and well-documented session run by the Evaluation Team lead and the P2P unit will reduce the likelihood of complaints being lodged. An effective debriefing session should ensure that:
- areas of improvement by the unsuccessful offerer and areas of non-compliance are identified;
- feedback is given in terms of the unsuccessful offerers capacity to meet specified requirements; and
- there is no breach of confidentiality in respect to other offerers.
7.23 If formal complaints (complaints in writing) associated with the outcome of an offer or quotation process are received they should be referred to the Chief Financial Officer for facilitation and resolution. The Manager, Strategic Procure to Pay will keep a record of procurement complaints and all related processes and documentation.
8. Purchase Requisitions, Approvals and Purchase Order
The Financial & Performance Management Standard 2009 (Qld) requires JCU to establish a governance and financial framework for expense management.
8.1 The JCU Delegations Policy prescribes the framework and management of delegations and delegation of authority to JCU staff members. The policy is supported by the JCU Financial Sub-delegations Register which details the delegations, the respective limits and positions authorised to act in a financial capacity on behalf of JCU.
8.2 A purchase requisition is an internal JCU ‘request to purchase’.
8.3 A University staff member or student with access to My Requisitions may raise a purchase requisition. When raising a purchase requisition any quotes and supporting documentation, including contracts, must be attached to the requisition. Appropriate procurement planning should be undertaken. The type of purchase requisition required is determined by the value and the type of goods/services being requested. Refer to the P2P knowledge base for guidance on how to raise purchase requisitions.
8.4 All Purchase Requisitions are to be approved by a Financial Delegate in My Requisitions. Financial Delegates confirm the business need for the purchase, that it is for University purposes and that funds are available to make the purchase.
8.5 Once a requisition or contract is approved by an authorised delegate, a purchase order will be raised and sent to the Supplier.
8.6 Purchase orders:
- are an official JCU document used to authorise and record the purchase of goods or services by JCU;
- are the major document confirming the contract between JCU and its Supplier, i.e. the formal authority for a Supplier to provide goods or services to JCU;
- provide a documented means of advising a Supplier of the specific goods or services JCU requires; the price; delivery date and location; the person who ordered the goods; and the terms and conditions associated with the purchase;
- provide assurance the Supplier will be paid for the goods or services they provide;
- allow for commitment costing and so assist JCU staff to manage budgets; and
- expedite the payment process.
Note: Unless a specific exemption applies, an official JCU purchase order must be in place prior to any commitment being made to a Supplier. Where purchase orders are sent to Suppliers the complete document including all Terms and Conditions must be provided.
8.7 Financial Services Officers in the Strategic Procurement Group:
- ensure that the Purchase Requisition has been duly authorised by a Financial Delegate;
- ensure that all relevant purchasing policies and procedures have been complied with (including the need for quotes);
- conduct a check on the information contained on the Purchase Requisition to ensure accuracy of information, account and use codes and like matters;
- review the procurement process; and
- raise a Purchase Order and place the order with the Supplier.
Financial Services Officers in the Strategic Procurement Group may recommend raising Blanket Orders to negate the need to raise new purchase orders each time a new supply is required from the same Supplier.
8.8 It is the responsibility of the P2P unit to monitor all outstanding purchase orders on a regular basis and follow up with relevant JCU staff as required.
8.9 Certain costs are incurred without requiring purchase requisitions or purchase orders. Payments made to contractors and suppliers via the Mex Work Order system are exempt from the requirement to raise a requisition and purchase order. The Mex Work Order must be approved by a Financial Delegate prior to any work being undertaken. A full list of excluded items is available on the Strategic Procure to Pay website. In these cases, the invoice must be approved by a Financial Delegate with an account code (also referred to as an OPFU) provided.
8.10 Staff issued with a JCU Corporate Credit Card may only use the card for the purposes and within the limits notified to the card holder and in accordance with FMPM 421 – Corporate Credit Cards.
9. Contract Arrangements
The Contracts and Agreements knowledge basein Service Now outlines the contract cycle and how purchasing activities are to be conducted at JCU. If in doubt call the P2P unit on 07 4781 4583 or e-mail email@example.com.
9.1 The P2P unit, in consultation with JCU’s Legal Office, is responsible for:
- procurement contracts and consultancy agreements; including service agreements, contractor contracts and letters of acceptance;
- offers and procurement advice;
- probity and conflict of interest advice; and
- advice on transactions with Suppliers and customers.
9.2 For a contract to be formed, all parties must have legal capacity to enter into a contract and there must be:
- an intention to enter into legal relations;
- offer and acceptance; and
- valuable consideration passing between the parties (not a requirement in the case of a deed).
Note: A Consultancy agreement must be established by the P2P unit for all Consultancy engagements known or reasonably expected to be greater than $10,000 (GST Exc).
9.3 Where a party trades under a business name, the Contract must be entered into with the party using its full legal name and ABN/ACN (where applicable).
9.4 The authority to sign on behalf of the University is determined in accordance with the JCU Delegations Policy and the JCU Financial Sub-delegations Register which sets out the various classes of contracts and the relevant delegates.
9.5 All contracts are to be reviewed and signed by an authorised delegate in accordance with the JCU Financial Sub-delegations Register.
9.6 All JCU Contracts should have a Contract Manager with the Procurement Category Specialists available to assist contract managers to ensure the correct processes and procedures are followed when managing contracts. Contract items that need to be managed include:
- negotiating contract issues as they arise;
- managing the day to day operation of the contract;
- ensuring the goods or services are delivered in accordance with the contract terms;
- maintaining records of critical dates and auctioning as required;
- negotiating price reviews; and
- performance monitoring and management.
9.7 JCU is required by the Queensland Procurement Policy to publish details of all awarded contracts with a value of greater than $10,000 and additional contract details for awarded contracts valued at greater than $10m. It is important that Contract Managers raise the purchase requisition as soon as possible to ensure JCU can comply with this requirement.
9.8 JCU utilises the FinanceOne contract module to manage all procurement related contract details. It is the responsibility of all Contract Managers to ensure that all awarded contracts are sent to the P2P unit for uploading into FinanceOne.
9.9 A distinction between an employee and an independent contractor is required for the University to fulfil its obligations with regards to legal liability, taxation, superannuation and workplace health and safety. When it is desired to treat a party as an independent contractor, it will assist if they are a separately incorporated entity, as opposed to being an individual sole trader. All contractors must have an Australian Business Number (ABN). Whether a party is an employee or an independent contractor must be assessed having regard to the entire relationship.
9.10 Provisions to allow and regulate contract variations should be a standard feature of all contracts.
9.11 The ability to vary a contract will be directed or controlled by the Contract Manager subject to advice from P2P and should only occur in circumstances defined in the contract provisions. All variations are to be administered in writing only and at no time should amendments be agreed to, orally, or in any other informal fashion.
9.12 Significant disputes, claims or circumstances which could give rise to a claim should be referred to the Chief Financial Officer in the first instance.
9.13 Any proposed variations will be assessed by the Contract Manager to ensure that they do not breach University policy or procedures. Variations must be undertaken strictly in accordance with procedures provided in contract documentation. The reasons for the variation must be clearly documented by the Contract Manager. Variations must not be used to mask poor performance or serious underlying problems. The effect on original timeframes, deliverables and value for money should be assessed. In the case of major contractual issues, these need to be reported by the Contract Manager to their supervisor and carefully managed.
Contract Managers also need to ensure that the contract variations are not of such a level that they significantly change the contract requirements and/or substantial parts of the original transaction. If the nature of a variation is such as to fundamentally change the character of the contract, there is a danger that an entire new contract may be formed. This affects both the legal relationship and procurement considerations.
9.14 Total variations in excess of 25% of the contract value may be an indication the Statement of Requirements (SOR) are not clearly defined and suggests the need for caution.
9.15 Variations can only be approved by a JCU staff member with the appropriate level of Financial Delegation. When a Financial Delegate wishes to approve a contract variation, one of the things they must consider is the total value of the contract in relation to the value of their financial delegation. That is, the value of the original contract plus the value of any previous variation(s), together with the value of the variation under consideration. Where the cumulative value of the contract will exceed the value of their financial delegation, the Financial Delegate must forward the variation to a Financial Delegate with sufficient financial delegation to approve the new total contract cost, not just the variation amount. P2P must be notified of all variations and Contracts amended accordingly. To avoid the need to obtain financial delegate approval for each variation as they occur, it is strongly recommended that a contingency sum to cover expected variations be included in the recommendation and approval at the time of contract award.
A copy of the approved variation must be held on the contract file in FinanceOne.
Key issues to consider in managing contract variations include:
- following the procedures required by the contract;
- assessing the reasons for the proposed variation;
- assessing whether or not the variation indicates an emerging or actual performance problem;
- assessing the impact of the proposed variation on the contract deliverables;
- determining the effect the proposed amendment will have on contract price;
- considering the authority for making the variation;
- properly documenting details of the variation and its impact;
- ensuring details of the variation are entered into the FinanceOne contract register; and
- completing a JCU Purchase Order Amendment/Cancellation Form which has been signed by a Financial Delegate that has authority for the full total of the project (i.e. initial cost as per purchase requisition plus variation/s costs).
In considering a proposed Contract variation P2P may consult with the Chief Financial Officer or seek legal advice.
10. Delivery of Goods or Services
10.1 Where goods or services received are not of the quality required, are damaged, incomplete or not as originally ordered, it is the responsibility of the purchaser to notify the Supplier and arrange return of the goods or repair/completion of the services. Where an approved invoice has already been sent to Accounts Payable, the purchaser must immediately alert Accounts Payable to the dispute (to halt payment until further notice).
10.2 Accounts payable staff will goods receipt all invoices less than $10,000 (GST exc) in My Requisitions against the relevant Purchase Order and process payments without any further approvals. Invoices greater than $10,000 (GST exc) will be receipted by Accounts Payable staff against the relevant Purchase Order and the requisition requestor will receive a system generated email notification and be required to approve the receipt of goods or services.
10.3 Where a dispute or claim arises in relation to the supply of goods or services the Purchaser must notify P2P who will (if required) confer with the Manager Strategic Procure to Pay and/or University General Counsel.
11. Invoices and Payment Methods
11.1 All invoices must be sent to firstname.lastname@example.org, invoices sent to any other address may result in delays in payment of suppliers.
11.2 All contract invoices are also required to be sent to email@example.com. Any claims for payment made under the Building Industry Fairness (Security of Payment) Act 2017 will be referred to the relevant Superintendent or Project Manager immediately on receipt.
11.3 Payment methods within the University are:
- Via electronic funds transfer by Accounts Payable; and
- Use of a University Corporate Credit Card. University Corporate Credit Cards issued to staff are predominately for incurring travel related expenses only. All University Corporate Credit Card transactions are managed by the University Expense Management System and are subject to internal and external audits and reviews. All expenditure incurred on the University Corporate Credit Card must be acquitted within twenty one (21) days of the transaction being posted onto the cardholder’s statement.
Note: Cardholders who are NOT Financial Delegates are not permitted to make any non-travel related purchases greater than $1,000 with their credit card.
11.4 Payment of Supplier invoices is undertaken by the Financial and Business Services Accounts Payable unit.
Pre-requisites to making any invoice payment are:
a) The Purchase Requisition has been raised, checked and approved by the appropriate Financial Delegate, and a commitment of funds has been allocated within FinanceOne;
b) a Purchase Order has been raised by P2P; and
c) the goods/services have been collected/delivered in a satisfactory condition and according to the specifications of the Purchase Order.
a) Suppliers must send their invoices to firstname.lastname@example.org as indicated on the Purchase Order. The Purchase Order number must be quoted on the invoice. Suppliers must also include their Australian Business Number (ABN) on the Tax Invoice or withholding tax will apply.
b) Invoices that do not include a Purchase Order reference will be returned to the Supplier with a request for the purchase order number to be added to the invoice prior to Accounts Payable making payment to the supplier.
c) Foreign currency payments can be raised against Purchase Orders and are treated in the same way as Domestic General Creditors. This process may take an additional six (6) weeks due to the requirements of the country and bank concerned.
d) The Supplier invoice is matched to the Purchase Order to confirm the value of the invoice and the authorised expenditure. For operational expediency where small errors or omissions of up to the lesser of $5,000 or 10% of Purchase Order value have been made causing a discrepancy between the Purchase Order and Invoice, the invoice will be paid without the need to amend the Purchase Order.
e) Where there is a discrepancy between the Purchase Order and Invoice(s) that exceed the lesser of $5,000 or 10% of Purchase Order value invoices must be returned to the Purchaser and a JCU Purchase Order Amendment/Cancellation is to be completed.
11.5 If an expense has been incurred personally (i.e. an out of pocket expense) on behalf of the University and requires reimbursement, the reimbursement must be claimed through the Expense Management System.
11.6 It is mandatory that all supporting documentation (e.g. tax invoice, receipt, expenditure certification) is scanned and attached to the corporate credit card transaction in the expense management system, with original documentation being retained in accordance with the FMPM930 Document Retention Policy.
12. Supplier Complaints
12.1 Complaints of an operational nature including the level of service supplied, cost of service or quality and timing of goods received from a particular Supplier, and goods not received should be referred to the Contract Owner. This will enable concerns to be actioned immediately and directly with the Supplier. It will also enable similar complaints that may have been received from other areas of the University to be compiled and addressed in formal Contract reviews held with the Supplier. The Contract Owner may seek assistance from the Manager, Strategic Procure to Pay if required.
13. Ethics, Probity and Accountability in Procurement
13.1 Ethics are the moral principles or values that guide JCU employees and students in all aspects of their work. Ethical behaviour encompasses the concepts of honesty, integrity, probity, diligence, fairness, trust and respect. Ethical behaviour includes avoiding conflicts of interest, and not making improper use of an individual’s position.
13.3 Probity requires that procurement activities are conducted ethically, honestly and with fairness to all participants.
13.4 Accountability for outcomes requires that the University and its purchasing staff be able to explain or provide a defensible and documented account for how the procurement decisions have been reached and serve to assist in achieving desired outcomes.
13.5 The key principles of probity and accountability in procurement are:
- conducting a fair and impartial process:
- treating all offerers and conducting the process fairly and equitably, consistent with the rules of natural justice and procedural fairness, including ensuring that all offerers are provided with access to the same information in order to prepare their offers;
- ensuring any conflicts of interests are disclosed and effectively managed;
- ensuring that the need to avoid inherent bias in the procurement process is taken into account when making decisions which may impact on the process, including decisions as to how to advertise and market the process and timeframes;
- ensuring that the process is conducted in accordance with the process terms and conditions provided to offerers; and
- ensuring offerers do not engage in collusive or anti-competitive conduct when preparing offer responses.
- ensuring that the process is open and transparent:
- establishing, promoting and monitoring compliance with all guidelines with respect to probity issues including conflicts of interest, confidentiality and fair dealing; and
- disclosing to offerers the methodology to be adopted for the evaluation of offers, including all evaluation criteria.
- taking action to minimise potential liability that might otherwise arise out of the conduct of the offer process:
- ensuring effective contract risk management arrangements are in place.
- maintaining a clear audit trail:
- at the commencement of the process, clearly allocating responsibilities to parties engaged in the conduct of the process including chairing reporting and recording obligations;
- ensuring the process is fully documented; and
- ensuring all process and probity issues and actions taken to resolve such matters are fully documented.
13.6 JCU’s approach to mandated Probity Advisors for procurement processes is designed to ensure compliance with the Queensland Procurement Policy.
13.7 As a component of the mandated Procurement Plan, all high risk or offered expenditures require a Probity Plan which provides for the appointment of a probity adviser.
13.8 The chart below illustrates the process for determining the requirement for Probity Advisors based on dollar thresholds. However, the presence of dollar thresholds does not prevent the engagement of Probity Advisors for expenditures below these thresholds if considered necessary. This would include, for example, where the procurement is assessed as high risk, but is less than the relevant threshold and/or where, the Manager, Strategic Procure to Pay and Chief Financial Officer determine after due consideration that this course of action is appropriate.
JCU Procurement Probity Requirements
Goods, Services ICT and Consultancies
(or high risk, irrespective of value)
>$200k to $10mill
(P2P representative may also, by arrangement be a member of the tender evaluation panel)
(P2P representative may also, by arrangement, be a member of the tender evaluation panel)
(or high risk, irrespective of value)
>$200k to $50mill
(P2P representative may also, by arrangement be a member of the tender evaluation panel)
(P2P representative may also, by arrangement be a member of the tender evaluation panel)
* Decision by the Manager of the Process in consultation with the Manager, Strategic Procure to Pay.
** Where an External Probity Advisor is required, they will be appointed by the Manager, Strategic Procure to Pay in consultation with the Chief Financial Officer.
13.9 The results and opinion of any Probity Advisors report as to whether the probity requirements have been met must be documented in a probity report, which includes any significant issues that have been identified and that impact upon the opinion that the Probity Advisor provides.
13.10 In the course of providing probity advice, the probity advisor may become aware of real, perceived or potential breaches of probity. In these cases, the probity advisor is required to report these in a timely and informed manner to the appropriate level of JCU management. This would, however, be incidental to the primary function of probity advice.
14. Social Procurement
14.1 JCU has developed Social Procurement Guidelines to assist Purchasers engage with ethical, inclusive and sustainable suppliers and embed social procurement principles within JCU's standard procurement practices. Purchasers should refer to the Social Procurement Guidelines for all procurement activities.
14.2 JCU will use best endeavours to do business with ethically, environmentally and socially responsible suppliers, and will seek to influence the supply chain in this regard.
14.3 As part of this commitment, JCU will not procure dumped goods or engage suppliers suspended as a result of accruing demerit points under the Ethical Supplier Mandate and Threshold.
14.4 As a Queensland Government Statutory Body JCU expects suppliers to comply with the Ethical Supplier Mandate and Threshold.
14.5 JCU tendering documents and contracts address the Ethical Supplier Threshold.
14.6 The Australian Modern Slavery Act 2018 requires JCU to report annually on the risks of modern slavery in our operations and supply chains, the actions taken to address those risks and the effectiveness of those actions.
This report will be approved by the University Council and publicly available and has the potential to affect JCU's standing in the competitive university sector.
The Act requires JCU to demonstrate actions being taken to address the risks of modern slavery in our supply chains.
By setting explicit standards and expectations of suppliers and educating and working with suppliers to address risks in their business, JCU is demonstrating a commitment to equality and sustainability at the foundational level and establishing our position as a leader in this field.
14.7 JCU will ensure that capable and competitive local suppliers, including Queensland suppliers and small businesses, are given a full, fair and reasonable opportunity to supply to JCU. JCU must:
- conduct a local benefits test for all significant procurement where a weighting of up to 30 per cent may be applied
- ensure that at least one regional and one Queensland supplier, where possible, is invited to submit a tender or quote for a procurement.
Section B: Schedule
1. Procurement of Drugs and Poisons
1.1 The purchase of drugs and poisons is controlled through a national classification scheme. Purchasers must seek advice from a Health, Safety and Environment staff member and adhere to the relevant University policies and delegations that apply to the type of drug or poison they wish to purchase.
1.2 Controlled drugs and poisons must only be obtained on a purchase order under the specific guidelines of HSE-PRO-004 Drugs and Poisons Procedure-.
1.3 Under NO circumstance are the purchase of the above drugs and poisons to be made using a JCU Corporate Credit Card.
1.4 Reference should be made to the Queensland Health (Drugs & Poisons) Regulation 1996 (Qld) and the Workplace Health & Safety Regulations 2011 (Cwlth).
Section C: Additional Information
1. Conflicts of Interest
1.1 A conflict of interest refers to a situation where a conflict arises for an individual between two competing interests. These are often, but not exclusively, interests of public duty versus private interests. This refers to a reasonably perceived, potential or actual conflict of interest. Conflicts of interest can involve financial or non-financial interests of the staff member and the interests of a business partner or associate, family member, friend or person in a close personal relationship with the staff member.
1.2 Activities that present a conflict of interest and must be avoided include:
a) where a staff member raises a requisition and/or approves the purchase of goods or services from a business that they or a business partner or associate, family member, friend or person in a close personal relationship with the staff member has a financial interest;
b) where a staff member has a financial/personal interest in an enterprise with which the University does business and could be perceived to be in a position to influence relevant business decisions;
c) situations where the time or creative energy that a staff member devotes to activities additional to their University commitment appears substantial enough to compromise the amount or quality of their University activities;
d) activities for which employees are personally remunerated from an external source/party (e.g. research projects, conferences, teaching programs, remunerative consulting agreements) that involve, or might reasonably be perceived to involve, the University's name, facilities, equipment and staff;
e) holding positions, (e.g. Chief Scientific Officer), in companies sponsoring and conducting research at the University while simultaneously being a staff member;
f) negotiations by a staff member of the terms under which any intellectual property, or other property of the University, is to be sold, licensed or transferred to an external entity in which the staff member has a financial interest;
g) a staff member taking part in the assessment of an offer application where they have, or have had, a close personal or financial relationship with a person or organisation submitting an offer application;
h) a staff member asking a designated selection officer for information relating to the admission of someone with whom the staff member has a close personal relationship.
2. Supplier Complaints
2.1 Complaints of an operational nature including the level of service supplied, cost of service or quality and timing of goods received from a particular Supplier and goods not received should be made in writing to the Manager, Strategic Procure to Pay. This will enable concerns to be actioned immediately and directly with the Supplier. It will also enable any similar complaints that may have been received from other areas in the University to be compiled and addressed in formal quarterly contract reviews held with the Supplier.
2.2 Complaints regarding the University’s procurement practices including how the University selects preferred Suppliers and contract terms with Suppliers should be submitted in writing to the Chief Financial Officer. All complaints will be investigated and the complainant will be provided with a response.
2.3 Complainants should be made aware that unless there has been a breach of the contract between the University and the successfully contracted party, the contract cannot be overturned, as it is a legally binding contract.
2.4 The P2P unit will ensure that their dealings with complainants are clearly documented. This includes maintaining signed and dated file notes of telephone conversations.
3. Breaches of the Procurement Procedure
3.1 All suspected breaches of University policy and procedures in relation to procurement should, in the first instance, be reported to the Manager, Strategic Procure to Pay. The Manager, Strategic Procure to Pay will immediately notify the Chief Financial Officer in the first instance. For suspected breaches of a serious nature, the matter will be referred to the University General Counsel. All reports received will be treated with appropriate concern for the law, privacy and confidentiality. Should staff identify or suspect breaches by a Procure to Pay staff member the matter should be reported directly to the Chief of Staff.
3.2 Breaches of the University policy and procedures in relation to procurement will be dealt with in accordance with either the Enterprise Agreement or Student Code of Conduct as applicable.
3.3 Conduct which may constitute ‘official misconduct’ under the Crime and Corruption Act 2001 (Qld), must be reported to the Chief of Staff.
3.4 Where instances of fraud and corruption are suspected they must be reported immediately to the Chief of Staff. Please refer to the Fraud and Corruption Procedure for examples of corrupt and fraudulent conduct.
3.5 Matters that contravene the Competition and Consumer Act (Cwlth) 2010, constitute conflicts of interest or are otherwise considered serious matters will be immediately referred to the Director, Human Resources.
3.6 For all other non-compliance matters the Manager, Strategic Procure to Pay will provide a non-compliance summary report at the end of each quarter to each Head of Organisational Unit.
In the first instance of reported non-compliance the Head of Organisational Unit is required to:
- Raise the non-compliance matter/s with the employee/s concerned;
- Require the employee/s to undertake procurement compliance training; and
- Require the employee to put in place effective measures to ensure compliance in future.
3.7 In the second instance of identified non-compliance, their access to FinanceOne and/or Corporate Credit Card or other privileges appropriate for the circumstances will be removed for a minimum period of 3 months.
3.8 Any further non-compliance will be referred to the Director, Human Resources for consideration and action under the misconduct/serious misconduct provisions of the JCU Enterprise Agreement (as amended or replaced from time to time).
4. Procurement Process Complaints
4.1 Complaints regarding JCU’s procurement practices including how the University selects Preferred Suppliers and Contract terms with Suppliers should be submitted in writing to the Chief Financial Officer. All complaints will be investigated, and the complainant will be provided with a response.
4.2 Complainants should be made aware that unless there has been a breach of the Contract between JCU and the successful respondent, a Contract cannot be overturned as it is legally binding.
4.3 The Chief Financial Officer will ensure that their dealings with complainants are clearly documented. This includes maintaining signed and dated file notes.
5. Departure from the Quote and Tender Process
Departure from the Quote and Tender Process can be approved in circumstances such as emergencies, uncontrollable third party related demands and any other external influence that does not reasonably enable JCU to complete the prescribed procurement process in alignment with the current Queensland Procurement Policy, FMPM 710 Procurement Policy and FMPM 711 Procurement Procedure.
Procedures in this section do not apply when accessing single provider supplier arrangements established by the Queensland Government, the Australian Universities Procurement Network (AUPN) and the University Procurement Hub (refer to Section 4.8). Accessing these supplier contract in accordance with the requirements of the arrangements complies with the Queensland Procurement Policy.
A departure from policy will normally be reliant on proof of a material event that was not reasonably foreseeable in relation to property, third party demands, the environment, safety, or that a sole supply situation exists. The outcome of internal poor planning and/or convenience to bypass the procurement procedure should not be not considered satisfactory reasons to depart from the policy or procedure.
It should be noted that approval to depart from FMPM 710 Procurement Policy and FMPM 711 Procurement Procedure does not in any way relieve JCU from external criticism, complaint or potential litigation. Additionally, it should be noted that such departures may in most cases not provide JCU with the ability to properly demonstrate “value for money” procurement. On this basis, it is essential that JCU limit departures from its policy and procedure to retain satisfactory overall compliance with the Queensland Procurement Policy.
5.1 Request for Sole Supplier
Care should be taken when claiming that a supplier is a sole supplier, Purchasers should not select suppliers based on personal preference to avoid preparing a Statement of Requirements that would allow a competitive and fair quotation process. Sole Source Purchase requests must be submitted on a Request exemption from obtaining quotes form via ServiceNow and approved by the Manager, Strategic Procure to Pay.
5.2 Request for Single Source Supplier
Single sourcing of suppliers is not highly regarded and will require consultation and approval prior to any purchase order being raised or communication or commitment being made to a Supplier. Single Source Purchase requests must be submitted on a Request exemption from obtaining quotes form via ServiceNow and approved by the Manager, Strategic Procure to Pay.
Request for Single or Sole Source Greater than $200,000:
Single or sole sourcing of purchases greater than $200,000 is not highly regarded and will require a business case and approval from the relevant Deputy Vice Chancellor or Vice Chancellor prior to any commitment being made to a Supplier.
5.3 Request for Closed Offer
Requests for Closed Offers will require consultation with and approval from the Manager, Strategic Procure to Pay prior to any communication or commitment being made to any Suppliers. Justification must be provided in writing. The Manager, Strategic Procure to Pay may confer with the Chief Financial Officer for advice.
6. Emergency Procurement Procedure
6.1 Procurement undertaken in response to an emergency situation or a critical incident (as defined in the Critical Incident Policy) should, to the maximum extent possible, having regard to the surrounding circumstances, comply with normal JCU procurement procedures.
6.2 All emergency procurement that does not comply with the JCU Procurement Policy and this Procedure is to be justified, documented and reported in writing to the Manager, Strategic Procure to Pay.
6.3 The lack of proper planning or an unforeseen and urgent need to secure goods or services for a project does not constitute an emergency.
7. Workplace Health and Safety
The Purchaser is responsible for assessing if the proposed goods or services to be purchased will pose a risk to health and safety. The carrying out of a risk analysis is required for the acquisition of goods and or services that have been determined to pose a hazard or health risk to JCU staff. The WH&S risk analysis must be done before approaching the market.
Further information can be obtained at http://www.jcu.edu.au/whs/
8. ACCC Cartel Deterrence and Detection
JCU’s procurement system relies on firms competing for business so that prices are truly determined by the market. Competition rewards those firms that innovate and strive to deliver the best value for money. Conversely, firms that are less efficient and fail to respond to the needs of customers will not prosper. Market economies need strong regulations to counter the temptation for inefficient suppliers to collude and undermine the competitive process.
A cartel exists when businesses agree to act together instead of competing against one another. This agreement is designed to drive up the profits of cartel members while maintaining the illusion of competition.
Cartels have been discovered working in a wide range of industries. Large well-known corporations and small local businesses have been involved. The products vary from petrol, concrete and air conditioning to cardboard boxes, freight and fire protection systems.
Further information regarding cartel deterrence and detection can be found at https://www.accc.gov.au/publications/cartels-deterrence-detection-a-guide-for-government-procurement-officers
JCU Policies, Procedures, Guidelines
Legislation and Government Instruments
|Policy Domain||Financial Management|
Date for next Major review
Amended to include:
|Manager, Strategic Procure to Pay|
Additional section added regarding social procurement, administrative amendments
Manager, Strategic Procure to Pay
Amendment to clarify processes regarding:
Manager, Strategic Procure to Pay
Administrative amendments to update links to Qld Procurement Policy
Manager, Strategic Procure to Pay
Amendments to clarify delegations and reflect headline structure.
Manager, Strategic Procure to Pay
Changes made to reflect headline restructure 30/04/2018
Quality, Standards and Policy Unit
Amended to align with Queensland Procurement Policy 2017 and adopt internal audit findings from 2017.
Manager, Strategic Procure to Pay
Reviewed to further streamline efficiencies and to ensure continuing compliance with the Queensland Procurement Policy and JCU policies and procedures.
Manager, Strategic Procure to Pay
Manager, Strategic Procure to Pay
Procurement; Strategic Procurement; Significant Procurement Plans; Offer, Quotation, Queensland Procurement Policy