GOVERNING POLICY

This procedure is made under the Procurement Policy.

SCOPE

This procedure applies to all staff at the University involved in the purchase of goods and services and building works expected to cost more than $150,000 (inclusive of GST).

PROCEDURE

1. Tender process

1.1    In accordance with the Procurement Policy, a tender process is to be followed for:

  • the purchase of either goods or services which cost more than $150,000
  • building projects which are expected to cost more than $150,000 from contractors, consultants and suppliers.

1.2    Purchase of non-building related goods and services between 150,000 - $400,000:

  • Faculties and departments may undertake a tender process to obtain three independent written quotations.
  • The Guidelines on Tendering are to be followed to ensure compliance with the probity framework.
  • The Minor Goods and Services Tender Board must review the quotations, accompanying paperwork (refer to forms listed under Related Documents) and a recommendation of the preferred supplier prior to a supplier being appointed.
  • Following the approval by Minor Tender Board, a purchase order may be raised by the department or faculty and sent to the Director, Finance who is authorised to approve the required purchase orders up to $400,000.

1.3    Staff are required to consult with Strategic Procurement, Legal Services and the Tender Board Secretary prior to submitting documentation to the Major Goods and Services Tender Board to:

  • ensure tender documents comply with the probity framework
  • ensure the correct Agreement is used for the procurement
  • schedule a meeting with the Board
  • provide the tender documents to the Board for review and guidance.

1.4    For building projects, staff are required to consult with the Director Asset Services or Director Project Delivery, or their delegate, as appropriate prior to documentation being released for tender.

2. Function and structure of the Tender Boards

2.1    The role of the Goods and Services Tender Boards prior to going to tender is to:

  • review the tender documentation to ensure compliance with the probity framework
  • ensure funding is adequate
  • evaluate the proposed assessment criteria, ranking, evaluation panel and methodology for proposals to purchase goods or services on both technical and financial grounds
  • review the contract prepared by Legal Services
  • provide advice to tender document preparers.

2.2    The role of the tender boards during the tender process is to:

  • preside over the opening of responses to tenders
  • ensure Conflict of Interest Declaration forms are completed by evaluation panel members and that any perceived or actual conflicts identified are appropriately managed.

2.3    The role of the tender boards post the department or faculty tender evaluation process is to:

  • evaluate the tender procedure
  • evaluate the recommendation of the tender evaluation panel and
  • recommend the acceptance of the preferred tenderer and tender pricing, to the appropriate delegates for approval.

2.4    The structure of the Major Goods and Services Tender Board is:

  • Chief Financial Officer or authorised delegate (chair)
  • Director Finance or authorised delegate
  • at least one senior manager of the Finance and Planning group
  • head of the budget division or authorised delegate
  • authorised delegate as secretary
  • others nominated by the chair or authorised delegate, to provide expert advice.

2.5    The structure of the Minor Goods and Services Tender Board is:

  • Director Finance or authorised delegate (chair)
  • at least one senior manager of the Finance and Planning group
  • head of the budget division which will make the purchase or authorised delegate
  • others nominated by the chair or authorised delegate, to provide expert advice.

2.6    The structure of the Major Buildings Tender Board is:

  • a Deputy Vice-Chancellor, the Senior Vice-Principal or Chief Financial Officer (chair)
  • any two of Executive Director (Property and Campus Services), Director Project Delivery, Director, Campus Planning, Director, Asset Services, Director, Campus Operations, Director, Corporate Support, Director Space Management or Director Finance.

2.7    The structure of the Minor Buildings Tender Board is:

  • the Executive Director (Property and Campus Services) or Director Project Delivery (chair)
  • any two of the Director Campus Planning, Director Asset Services, Director Campus Operations, Director Corporate Support, Director Space Management or a construction manager.

3. Lodgement of tenders

3.1    A tender box must be provided for the placement of tender submissions.

3.2    For non-building related tenders the tender box location will be clearly specified within the tender documentation for goods and services.

3.3    For building projects, the tender box will be located in the offices of Property and Campus Services at 625-631 Swanston Street, Carlton.

4. Responsibilities of tender evaluation panel

4.1    Determine the relevant evaluation criteria and the review process to be undertaken to evaluate tenders and submit for approval of the relevant tender board.

4.2    Record the results of the tender evaluation process and summary of prices received on the Tender Summary Sheet for all building projects or the Application for Purchase of Goods or Application for Purchase of Services forms for non-building related tenders and submit to the relevant tender board.

4.3    Include the Tender Summary Sheet in the buildings request (BR) file for all building projects.

4.4    Ensure a tender register will be maintained by the Tender Board Secretary.

5. Conflict of interest declaration

5.1    Staff members involved in the tender process must disclose any interests or dealings which could be construed as potentially influencing their independent judgment in carrying out their assigned duties.

5.2    Staff are prohibited from:

  • dealing with
  • calling tenders from
  • obtaining prices from
  • having any involvement with

a member of their family related by blood or marriage or any other firm or individual with whom they might have a direct pecuniary interest for investment purposes. 

(NOTE: such interest does not include the holding of shares purchased through normal Stock Exchange dealings.)

The above is not intended to limit the extent of disclosure.

5.3    A Conflict of Interest Declaration form is required to be completed as part of the documentation submitted to tender boards.

6. Exemptions from Tender Board requirements

6.1    The following are exempted from Tender Board requirements:

  • transfers within the University
  • acquisitions to the University’s library collections and art gallery’s collections
  • purchase of property.

6.2    In certain situations related to the delivery of professional or other consultancy services it is not feasible to follow Tender Board requirements:

  • where there are standing relationships in place, or
  • the cost of certain professional or consultancy services extends beyond $150,000 on particular matters (for example litigation).

In these cases, if approved by the Senior Vice-Principal, the Tender Board is to be kept informed on all such matters to such extent as may be required by the Tender Board, including directions, guidance on the ongoing management of such relationships or matters, as the case may be.

RELATED DOCUMENTS

DEFINITIONS

Major Buildings Tender Board

Board established to review all proposals to purchase buildings works costing over $400,000 (including GST).

Major Goods and Services Tender Board

Board established to review all non-building related proposals to purchase goods and services over $400,000 (including GST).

Minor Buildings Tender Board

Board established to review all proposals to purchase building works costing between $150,000 - $400,000 (including GST).

Minor Goods and Services Tender Board

Board established to review all quotations for non-building related purchases of goods and services costing between $150,000 and $400,000 (including GST).

Purchase

A single decision to follow a course of action, regardless of how many individual purchases are involved.

Tender Evaluation Panel

Established to evaluate tenders received and to recommend the acceptance of a preferred tenderer, and pricing to the relevant tender board.

RESPONSIBLE OFFICER

The Chief Financial Officer is responsible for the development, compliance monitoring and review of this procedure and any associated guidelines.

IMPLEMENTATION OFFICER

The Director, Finance and Executive Director, Property and Campus Services are responsible for the promulgation and implementation of this procedure in accordance with the scope outlined above. Enquiries about interpretation of this procedure should be directed to the Implementation Officer.

REVIEW

This procedure is to be reviewed by 30 November 2014.

VERSION HISTORY

Version

Authorised by

Approval Date

Effective Date

Sections modified

1

Senior Vice Principal

24 August 2012

24 August 2012

New version arising from the Policy Simplification Project. Loaded into MPL as Version 1.

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