1 Policy Statement

As mandated by the Queensland State Government, the University is bound by all the relevant clauses of the State Procurement Policy (2010).The University, as a statutory body as defined under the Financial Accountability Act 2009, is an ‘agency’ and/or an ‘affected agency’, for the purposes of the State Procurement Policy (2010).

The University will seek to maximise the benefits that can be delivered through effective and efficient procurement of all Goods and Services.

The University shall conduct all its procurement activities ethically, honestly and with fairness to all parties.

2 Principles

The University will use its best endeavours to:

• advance Queensland State Government priorities;

• achieve value for money;

• be accountable for procurement outcomes and maintain transparent decision making processes;

• ensure that, where available, competitive local suppliers, that comply with relevant legislation, are given a full, fair and reasonable opportunity to supply to the University;

• integrate the practice of sustainability into the procurement of Goods and Services;

• ensure staff involved in procurement, possess and demonstrate at all times, highly developed professional ethics and standards of personal integrity; and

• develop and maintain procurement procedures that are consistent with the State Procurement Policy (2010).

Non-compliance with the terms of this Policy may lead to disciplinary action.

3 Procedures

3.1 Managing the Procurement Function

The Vice-Chancellor, as the Accountable Officer as defined under the Financial Accountability Act 2009, has nominated the Chief Financial Officer (CFO), an executive member of the University, responsible for the overall University procurement operations.

The CFO is responsible for:

• establishing and maintaining the “Agency Purchasing Procedures” consistent with the State Procurement Policy (2010). This Procurement and Purchasing Policy constitutes the University’s Agency Purchasing Procedures;

• establishing a University wide procurement structure that supports both the traditional administrative purchasing function and the strategic procurement function; and

• appointing suitably qualified and skilled officers and delegating appropriate purchasing delegation accordingly.

All University staff, managers and executives involved in a purchasing or procurement process or transaction, on behalf of the University, are responsible for:

• maintaining an up-to-date knowledge of this Procurement and Purchasing Policy;

• complying with this Procurement and Purchasing Policy;

• ensuring expenditure is in accordance within their Purchasing Delegations or Financial Delegations, where applicable;

• ensuring expenditure is in accordance with approved funding allocations (i.e. approved budget);

• ensuring that sufficient funds exist for the planned purchase; and

• ensuring they are familiar with and comply with the objectives of the State Procurement Policy (2010).

3.1.1 Budget Limitations

Managers are responsible for the overall management of their Faculty, Department or Project so as to result in the achievement of their section objectives and the University’s objectives.

This responsibility includes:

• being accountable for the resources consumed in delivering its operations and activities;

• being responsible for delivering programs and activities in a cost effective manner, as well as ensuring resources are utilised to their optimal potential;

• ensuring expenditures are incurred in accordance with the Code of Practice (Section 3.3 of this Policy); and

• adhering to the University Council approved budget .

3.1.2 Alignment with the University’s Strategic Plan

The University Corporate Procurement Plan will align with the University’s Strategic Plan and be developed and updated, to assist in delivering these positive social, environmental and economic dividends.

(Refer to Explanatory Schedule 7.1 of this Policy)

3.1.3 Procurement Staffing and Structure

The Chief Financial Officer has appointed the Strategic Procurement Administrator as the nominated head of the procurement function of the University.

The Strategic Procurement Administrator is responsible for the development of the Corporate Procurement Plan, analysing the University’s spend and future purchasing requirements, and with the support of the Chief Financial Officer, for maintaining sufficient capability to properly manage the University’s procurement operations, including training and appointing appropriate staff.

The procurement function of the University will be supported by a skilled and trained team of Procurement Officers, reporting centrally to Financial and Business Services. Additionally Finance Officers will also be trained in purchasing at lower levels to assist with volume purchases.

3.2 The Objectives of the State Procurement Policy (2010)

The University purchasing and procurement functions shall comply with the three objectives of the State Procurement Policy (2010):

• to advance Government priorities;

• to achieve value for money; and

• to ensure probity and accountability for outcomes.

(Refer to Explanatory Schedule 7.2 of this Policy)

3.3 Code of Practice

All University staff involved in procurement and/or a purchasing process must possess and demonstrate at all times a highly developed sense of professional ethics and standard of personal integrity, and consistently apply the University’s procurement thresholds, supporting standard processes and documentation, to all procurement and/or purchase of Goods and Services.

All University staff, managers and executive shall ensure procurement and purchasing activities are carried out in accordance with this Policy and the obligations contained in the:

• Queensland Government’s “Ethics, Probity and Accountability in Procurement” Queensland Purchasing Better Purchasing Guide.

• Financial Accountability Act 2009

• Public Sector Ethics Act 1994

• Crime and Misconduct Act 2001(Section 15)

• The University’s Policy on Code of Conduct

Procurement activities undertaken in accordance with this Policy, by Procurement Officers and Finance Officers, are deemed to have met these obligations.

University staff who contravene this policy will accept liability for the costs incurred and may be subject to the University’s disciplinary action under the University’s Policy on DisciplinaryAction for Misconduct or Serious Misconduct.

3.4 Procurement Planning

Planning for procurement provides the University with a greater opportunity to integrate sustainability, supplier performance monitoring, formal risk evaluation, obtain value-for-money, ensure accountability and transparency, and assist the University to achieve the mandatory requirements of the State Procurement Policy (2010) in its procurement function.

To maximise the benefits of procurement planning it is important that University staff understand the nature of what they actually buy and what they plan to buy. This includes annual and ongoing analysis of the University’s expenditure to establish purchasing patterns and supply markets, the Capital Equipment Registers, Minor Works Plan, Capital Asset Management Plan, ICT Triennial Capital Plan and individual faculty and/or departmental budgets.

To facilitate this structured and considered approach to purchasing, the University will:

• develop a procurement profile (including regular Spend Analysis);

• categorise goods and services by relative expenditure and difficulty of supply;

• develop an understanding of demand and priorities of stakeholders and their requirements;

• develop an understanding of supply markets, including alternate or substitute products;

• assess the University’s impact on key supply markets, including opportunities for alliances with other buyers;

• assess the procurement function capability, location and specialist skills against actual needs;

• assist the procurement objectives by supporting compliance with this Policy and these procedures; and

• provide effective information systems that support an e-commerce approach to purchasing and embrace technical enhancements.

Under the State Procurement Policy (2010) it is mandatory for the University to prepare a Corporate Procurement Plan (strategic) and Significant Procurement Plan for individual procurements (operational).

3.5 Corporate Procurement Plan

Annually the Strategic Procurement Administrator will prepare a Corporate Procurement Plan, incorporating a Forward Procurement Plan which includes a list of significant procurement purchases, for review by the Chief Financial Officer.

The University will adopt the current Queensland Government Chief Procurement Office (QGCPO) methodology and template as the basis for the preparation of its Corporate Procurement Plan.

The Corporate Procurement Plan details:

• the purpose of the procurement function, including organisational procurement objectives;

• a review of past performance;

• the targeted future procurement performance, including spend analysis and the development of a Forward Procurement Plan;

• the capability of the procurement function, focusing on people and process; and

• the procurement activity schedule, including actions, outcomes and performance measures.

(Refer to Explanatory Schedule 7.3 of this Policy)

Further information is available from the Queensland Government’s “Corporate Procurement Planning” – QGCPO.

3.6 Significant Procurement Plan

Purchases identified in the University’s Corporate Procurement Plan as being of high expenditure, and/or for which there is a high a degree of business risk, will be highlighted in the detailed Forward Procurement Plan as requiring the development of a Significant Procurement Plan.

Significant procurements:

• represent a major financial commitment in the University’s budget;

• are generally complex in terms of their demand and / or supply characteristics; and

• can individually have a significant impact on the University’s operations.

(Refer Explanatory Schedule 7.4 of this Policy)

Further information is available from the Queensland Government’s “Planning for Significant Procurement” QGCPO – Procurement Guidance.

3.7 Spend Analysis

At least quarterly, the University will use a spend analysis tool to capture past expenditure data details including:

• Vendor name and /or vendor ID

• Vendor address (regional analysis)

• Total vendor spend per period/year

• Total number of transactions (invoices/orders)

• Purchase method (credit card/order/transactional)

• General ledger codes

• Faculty / department usage/spend.

• Procurement Officer and Finance Officer activity

This information will assist the University to:

• analyse the University’s non-salary expenditure;

• analyse changes in spend patterns;

• identify potential Standing Offer Arrangements(SOAs);

• provide feedback to faculties and departments on their spend profile;

• develop detailed profiling of specific commodities e.g. electricity, fuel, travel;

• profile the University’s vendors;

• profile the spend patterns of Procurement Officers and Finance Officers and provide feedback to these officers; and

• identify future procurement staffing and training requirements

Spend Analysis will assist in procurement measurement and will also assist in reporting on Policy compliance is some instances, such as purchasing limits, credit card limits and confirming orders.

3.8 University Buying Strategies and Practices

The State Procurement Policy (2010) requires the University to understand the nature of its procurement to help identify opportunities to advance the three Government objectives.

The University will develop a range of procurement strategies and subsequent purchasing practices based on achieving these objectives within the profile of the Universities total expenditures, volumes of purchases, types of purchases, supply markets and associated risks.

Two major factors influence the nature of the University’s procurement:

1. The “degree of business risk” of Goods and Services, which means:

   • the degree to which the Goods and Services present risks or are critical to the University; and

   • the extent to which a competitive supply market for the Goods and Services exists.

2. The level of expenditure for the Goods and Services.

(Refer to Explanatory Schedule 7.5 of this Policy)

The University has developed a number of procurement practices to support the acquisition of the diverse range of Goods and Services required by the University. These include, purchasing thresholds, levels of approval, standard and specialist documentation, standard and specialist processes, procurement training and procurement/purchasing staffing requirements.

3.9 Purchasing Thresholds and Delegations

Purchasing Thresholds provide a standard strategy for applying the objectives of value for money, probity and accountability whilst advancing Queensland Government priorities.

Purchasing thresholds are based on the estimated total cost of acquisition. A procurement or purchasing process shall not be split into parts or separate transactions simply to achieve a lower threshold.

The University has established six (6) purchasing threshold levels and supporting documentation for the procurement of its goods, services and projects. Refer table below.

Purchasing Thresholds and Supporting Documentation

3.9.1 Financial Delegations vs Purchasing Delegations

The procurement process of the University has two distinct delegations:

• Financial Delegation

• Purchasing Delegation

These delegations are not to be substituted for each other under any circumstances and officers of the University will not normally hold both delegations.

3.9.1.1 Financial Delegation

Financial delegations enable a manager to authorise the commitment of University funds for the payment of expenditures incurred by the University.

On recommendation by the Chief Financial Officer, Financial Delegations are approved by the Finance and Facilities Standing Committee of the University Council.

3.9.1.2 Purchasing Delegation

Purchasing Delegations enable a Finance Officer or Procurement Officer to undertake procurement activities on behalf of the University. These officers exercise their purchasing delegation in compliance with the State Procurement Policy (2010) and associated purchasing guides, and this Policy and procedures.

With the exception of Petty Cash transactions, University staff without a Purchasing Delegation must not undertake purchasing activities.

On recommendation by the Strategic Procurement Administrator, Procurement Delegations are approved by the Chief Financial Officer. Purchasing Delegations will only be granted to Finance Officers and Procurement Officers of the University who hold the appropriate qualifications and skills, and where a need has been identified as part of their evaluated position description.

The University has established seven (7) levels of Purchasing Delegations:

All University officers who hold a Purchasing Delegation are responsible for:

• maintaining an up-to-date knowledge of this Procurement and Purchasing Policy;

• maintaining an up-to-date knowledge of the Corporate Credit Card Policy;

• complying with this Procurement and Purchasing Policy and the Corporate Credit Card Policy;

• ensuring expenditure is in accordance within their Purchasing Delegation;

• ensuring expenditure is in accordance with approved funding allocations (i.e. approved budget);

• ensuring that sufficient funds exist for the planned purchase; and

• ensuring they are familiar with and comply with the objectives of the State Procurement Policy (2010).

3.10 Risk and Quality Assurance

Procurement Officers and Finance Officers will assess the risk for all purchases, although for some low value purchases this may only be notional.

For University purchases:

• valued between $10,000 and $50,000, a Procurement Officer will determine if a formal risk assessment process is warranted. If warranted, the formal risk assessment process will be documented using the Procurement Risk Assessment Form.

• valued over $50,000, a Procurement Officer will conduct a formal risk assessment process and formal analysis, and this will be documented through the use of the Procurement Risk Assessment Form.

The risk assessment process will consider the consequences of identified risks against the probability of the risk occurring. The outcome will be twofold, and will:-

• provide guidance on procurement planning considerations such as referral to specialist assistance, for example, consultation with the University Legal Office or the Manager, Audit and Risk; and

• indicate the level of quality assurance risk associated with the procurement.

The three risk levels of Quality Assurance are:-

• Low – no quality assurance requirements are specified.

• Medium – Elements of a quality system or elements of an industry accreditation are specified as a contractual condition.

• High – Certified quality system or certified industry accreditation is specified as a contractual condition.

Further information is available from the Queensland Government’s “Quality Assurance” QGCPO – Procurement Guidance

3.11 Tender Review Committee

The Chief Financial Officer will establish a Tender Review Committee for procurements in excess of $500,000 for the purpose of providing expert input, including:

• Compliance check against policy and procedures

• Probity review of the procurement process

• Legal review of offeror’s terms & conditions

• Financial review of proposed recommendation

The Chief Financial Officer may, on advice from the Strategic Procurement Administrator, convene a Tender Review Committee to review procurements less than $500,000 where expert input will add value to the procurement process.

The Tender Review Committee will review the stages of final draft documentation and final review of the completed tender process, including an assessment of the recommendations in relation to the evaluation. Tender Review Committee members will also be available for consultation throughout the procurement process.

The University Tender Review Committee will comprise the following members:

• Chief Financial Officer (or their nominee)

• University Lawyer (or their nominee)

• Strategic Procurement Administrator (or their nominee)

3.12 Contract disclosure over $10,000

Under the State Procurement Policy (2010), clause 9.2, it is mandatory for the University, as an “affected agency” to:

• publish basic details of all awarded contracts and standing offer arrangements of $10,000 and over; and

• publish additional details of contracts and standing offer arrangements of $10 million and over.

The following contract details must be published within 60 days of the contract date, on the Queensland Government Chief Procurement Office (QGCPO) eTender website.

Contracts and standing offer arrangements (SOAs), established for purpose of securing Goods and Services include:

• contracts under seal (also known as deeds)

• simple contracts (can be oral, written, or a combination of both)

Examples of reportable contracts include:

• purchase / procurement of general goods and services

• purchase / procurement of contractor and consultancy services

• procurement of capital works (including buildings and infrastructure)

• establishment of SOAs and panel arrangements

• contracts made under SOAs (e.g. by way of a purchase order issued under the SOA)

• corporate card transactions (excluding payments to corporate card providers, e.g. administrative fees)

The reportable contract value will:

• not be split or divided into multiple parts;

• include GST, any premiums, fees, commissions, interest or other amounts payable to the supplier under the contract;

• include the grossed-up value of any trade-in;

• include variations over $10,000, singularly or cumulatively, over the life of the contract; and

• if a multi-year contract, be reported for the full value against the term of the contract.

The QGCPO e Tender website must be updated where there is a variation to the contract that represents a material change to the original contract. Examples include:

• extensions

• significant changes in agreed deliverables

• change in supplier details

• suppliers added to or removed from an SOA

Procurement Officers will ensure that conditions of offer and conditions of contract clearly specify that certain information will be collected and published on the QGCPO eTender website pursuant to clause 9.2 of the State Procurement Policy (2010).

Further information is available from the Queensland Government’s “Contract Disclosure Guidelines” QGCPO – Procurement Guidelines.

3.13 Sustainable Procurement

Sustainable procurement is the process whereby the University meets their needs for Goods and Services in a way that achieves value for money on a whole-of-life basis in terms of generating benefits not only to the University, but also to society and the economy, whilst minimising damage to the environment.

The procurement function will assist the University to achieve this objective by integrating sustainability into the procurement of its Goods and Services (including capital projects), as required under the State Procurement Policy (2010).

All procurement evaluation will contain a specific criteria to reflect the environmental impacts of Goods and Services being purchased. This weighted criteria will be not be less than 5% of the overall evaluation score.

Where possible, sustainability will be incorporated into every stage of procurement.

• In the planning phase, by including stakeholder engagement and considering whole-of-life impacts, the University will consider:

  • avoiding or reducing consumption

  • sourcing alternative products or services

  • the availability of alternative suppliers

  • rethinking and revising specifications

  • recycling, reusing, refurbishing or repairing existing resources/equipment

  • recycling, composting or reusing consumables after initial use

• In the specification phase, the University will consider impacts on:

  • climate change and greenhouse gases

  • efficient energy use and use of renewable energy

  • efficient water use and recycling of water

  • waste disposal volume, reduction and methods

  • hazardous waste disposal including toxicity and longevity

  • volume, source, type and renewability of raw materials

  • landuse, critical habitat and virgin natural resources

  • human health, fair working conditions and local communities

• In the offer evaluation phase, the University will consider:

  • the supplier’s impacts described above plus the supplier’s:

sustainability performance history

certified environmental management practices (where applicable)

ability to respond to sustainability requests

ability to be innovative in terms of progressing sustainability in their performance

• including a minimum sustainability rating not less than 5% on the suppier’s performance and practices, on contracts valued at $100,000 or more

• In the contract management phase, the University’s Contract Manager will monitor the supplier’s:

  • performance against sustainability related KPIs, including annual carbon emissions data applicable to the contract (where relevant)

  • ability to provide enhanced sustainability related outcomes

Where appropriate, the University will advise potential suppliers that environmental management and performance considerations may influence purchasing decisions.

As part of the University’s commitment to continuous improvement, the procurement function will seek stakeholder cooperation to progressively increase the portion of University spend on Goods and Services that demonstrate improved sustainability outcomes. As part of any Significant Procurement Plan sustainable options will be identified and considered at each stage of the plan’s development, and where appropriate, sustainable targets will be set. These targets will be measured and reported in the Corporate Procurement Plan. Details of lost opportunities to improve sustainability outcomes will also be reported.

Further information is available from the Queensland Government’s “Integrating Sustainability into the Procurement Process” QGCPO – Procurement Guidance.

Further information on sustainability is available in the University’s Sustainability Awareness Module.

3.14 Standing Offer Arrangements (SOA) and /or Panel Supply Arrangements

As part of its planned approach to procurement, the University may develop Standing Offer Arrangements, or avail itself of the opportunity to join whole-of government, or whole-of-agency or third party grouped (e.g. multi-university) arrangements.

A SOA is where the University is party to, or has access to, an agreement with one or more suppliers for the provision of an undefined volume Goods and Services under agreed pricing conditions over a set period of time.

A Standing Offer Arrangement is not a contract:

• It is a standing quotation that the supplier may withdraw at any time before the offer is accepted.

• The buyer has no obligation to place an order.

• The contract is formed when a purchase order is placed / Corporate Card Purchase Request Form is issued.

The Strategic Procurement Administrator will maintain a list of current University SOAs on the Financial and Business Services (Procurement) webpage.

3.14.1 University Established SOAs

Financial and Business Services (Procurement) will review the University’s spend profile to identify opportunities to implement SOAs, based on frequently purchased common products.

The advantages of University established SOAs may include:

• establishing firm competitive prices based on purchasing power.

• reducing the cost of obtaining quotes and/or additional procurement supporting documentation.

• streamlining the purchasing process.

• cost savings from monthly invoicing and / or online ordering.

• enhanced reporting capability as a result of consolidated purchases.

Standing Offer Arrangements (SOAs) established by the University are mandatory for all purchases of Goods and Services covered by that arrangement.

For internally established SOAs, where renewal is required, the University will go back to the open market to ensure the supply source remains competitive and to give new market players an opportunity to participate.

3.14.2 Externally Established SOAs

The University may also avail itself of ‘externally established’ whole-of-government, whole-of-agency or third party grouped arrangements.

Before accessing these externally established SOAs the University must ensure the SOA offer process met the requirements of the State Procurement Policy (2010) and the terms and conditions of the SOA provide for the University to receive all the commercial benefits in the SOA terms and conditions and that the standard products and support services are complimentary to the University environment.

Additional advantages of these SOAs may include:

• increased purchasing power due to the greatly expanded demand market.

• reduced or no procurement costs in establishing/accessing the SOA for use by University.

• price benefits obtained where University demand alone, is low.

Standing Offer Arrangements accessed by the University (but externally established) may be classified by the Chief Financial Officer, on advice from the Strategic Procurement Administrator, as either mandatory or non-mandatory arrangements for purchases of Goods and Services covered by that arrangement.

3.14.3 Review of Standing Offer Arrangements

The effectiveness of a Standing Offer Arrangement will be reviewed annually by the Strategic Procurement Administrator.

3.15 ICT Purchasing (including Government Information Technology Contracting (GITC) Framework

Under the State Procurement Policy (2010), it is mandatory for the University, as an “agency”, to use the Government Information Technology Contracting Framework as the basis of all contracts when procuring information and communication technology goods and services (ICT).

In addition the University has adopted the use of the standard Queensland Government Chief Procurement Office (QGCPO) contracts documents for all ICT related offer documents to ensure terms and conditions are consistent with the GITC Framework.

For the purposes of the GITC Framework, ICT products and services generally cover all types of technology (data, voice, video etc) and associated resources, which relate to the capture, storage, retrieval, transfer, communication or dissemination of information through the use of electronic media. All resources required for the implementation of ICT are encompassed, namely equipment, software, facilities, services and human resources, including telecommunications products and services that carry voice and/or data.

It should be noted that the GITC Framework requirements are additional to the University procurement procedures for each level of purchase.

If the required Goods and Services are not available from a supplier who is an “Accredited Supplier” in the GITC Framework, the Procurement Officer or Finance Officer shall arrange for negotiations to commence between the proposed supplier and GITC Services for a GITC agreement to be signed. This agreement must be completed prior to the ordering of the Goods and Services.

The Procurement Officer or Finance Officer responsible for the planned acquisition of ICT Goods and Services shall ensure the Official University Purchase Order or USQ Purchasing Card Authorisation, incorporates as a minimum:

• the supplier’s GITC Agreement Number;

• the following statement “This order is placed in accordance with the terms and conditions of GITC Agreement Number Q – ”; and

• where applicable, additional information as listed in the GITC Framework, Schedule C1 –General Order and associated Customer Contract Modules.

The University does not include software (including software packaged as part of an equipment purchase) valued at less than $5,000 that is a single user licence and used for academic and/or research purposes, in the above conditions.

Where the Goods and Services are sourced outside Australia (from a supplier without an Australian distributor) the GITC Framework does not apply and the requirement for the supplier to enter into a GITC agreement does not apply. All other standard University procurement procedures for each level of purchase will still apply.

Where the University is required to sign a licencing agreement, the agreement must be forwarded to the University Legal Office as per the standard Contract Management Frameworkrequirements.

All requests for the purchase of ICT goods and services must be directed to the ICT Self Service – Online USQ Purchase Requisition, or enquires can be directed to ICT.Procurement@usq.edu.au or contact Financial and Business Services (Procurement).

Further information is available from the Queensland Government’s “Government Information Technology Contracting Framework – GITC Version 5” QGCPO.

3.16 Contractors and Consultancies

Contractors and Consultants who provide Goods and Services to the University are subject to the requirements of this Policy and the Professional Services Policy.

Before proceeding with the procurement of a contractor, consultant or a professional services provider please refer to the Professional Services Flowchart to ensure the final engagement is the most effective method and meets all legislative and legal requirements.

3.17 Motor Vehicles

In accordance with the University’s Campus Services Motor Vehicle Policy the Executive Director, Campus Services is the authorising officer for the purchase of University fleet vehicles (non-packaged executive vehicles) and the Chief Operating Officer is the authorising officer for the purchase of all packaged executive vehicles.

All University motor vehicles are purchased by Financial and Business Services (Procurement).

Under the Financial Accountability Act 2009 the Accountable Officer is responsible for the disposal of surplus assets (including motor vehicles). For motor vehicles, this responsibility has been delegated to the Executive Director, Campus Services who will ensure all University motor vehicles are sold in accordance with QGCPO – Disposal of surplus government assets. Under the provisions of the Financial Accountability Handbook any other method of disposal will require not only the authorisation of the Executive Director, Campus Services but the financial arrangement approval of the Chief Financial Officer.

3.18 Intangible Assets (including Intellectual Property) in Purchasing

Intangible Assets can be bought like any other type of property, however these are not physical items, although they may be bundled into the purchase of a physical item or service. Examples of these purchases may include software, software development, teaching resources or manuals, a consultant’s report, engaging someone to provide services and/or delivery of training programs.

IAS 38 of the Australian Accounting Standards defines Intangible Assets, as “an identifiable non-monetary asset without physical substance”. The Intangible Asset must:

• be separable, i.e. capable of being bought and/or sold, transferred, licensed etc; or

• arise from a contractual or other legal rights

Examples of Intangible Assets include, intellectual property, such as copyright, trademarks, patents, designs, plant breeders rights, research and development and confidential information.

Procurement Officers and Finances Officers must be aware of both aspects of such a purchase, the item and the ultimate rights in the item and ensure the person or organisation selling or granting the right actually has the legal right to do so. Furthermore, the procurement negotiations and purchase contract must deal clearly with this issue of ownership or license to use, the Intellectual Property.

Procurement Officers and Finance Officers requiring further information or advice on Intellectual Property should seek advice from the University Legal Office.

Further information is also available from the Queensland Government’s “Intellectual Property in Purchasing” – Queensland Purchasing Better Purchasing Guide.

3.19 Travel

The University has established the Corporate Travel Office to purchase and manage the costs and travel arrangements and transactions, for all persons travelling on Directed Travel or Conference and Other Assisted Travel.

Finance Officers will only arrange 1 day travel for staff where the costs do not include airfares and accommodation.

To provide an efficient and cost effective travel service, Financial and Business Services (Procurement) and the Corporate Travel Office will identify and implement Standing Offer Arrangements for travel and travel related services

3.20 Internal Purchasing

There is a restricted and limited range of Goods and Services provided by sources internal to the University.

Before sourcing any Goods or Services externally, a Procurement Officer or Finance Officer will, in the first instance, investigate if the supply can be met from internal University sources. Examples of these internal sources include:

• USQ Printing Services – e.g. printing, stationery, business cards, copy paper

• USQ Transport Services – e.g. pool car

• Media Services – e.g. photography, graphics, video/audio production

• IT Training Services – e.g. excel, word

Further information on internal suppliers can be found in the User Charging, Consultancy and Income Policy.

3.21 Reverse Auctions

The University may consider a Reverse Auction as a part of a procurement process where it can be demonstrated the possible advantages outweigh the possible disadvantages.

Typically off-the-shelf good and services, required in high volume but considered to be routine (and low risk), with clearly defined specifications, quantity, quality and delivery and related terms and conditions, and where there is a high margin structure, may be suitable for a Reverse Auction.

Benefits of a Reverse Auction may include:

• Achieving a competitive market price.

• Gaining better knowledge of the supply market.

• Allowing bidders multiple opportunities to offer a price.

• Providing transparency and fairness as participants have knowledge of the bids.

Disadvantages and /or risks of a Reverse Auction may include:

• No opportunity to ‘value-add’.

• Price is the final determinant in the selection process.

• Difficulty to compare and evaluate offers if there are innovative or more sustainable solutions.

• Smaller regional suppliers are disadvantaged due to infrastructure requirements.

• Submission of unsustainable loss leading bids.

• Cost and resources required for contingency plans if there is a technical failure during the bid process.

• Additional cost of purchasing suitable software or the commission payable to an external auction house.

A cost-benefit analysis comparing a Reverse Auction with traditional procurement processes will be prepared for review, and will be evaluated by the Strategic Procurement Administrator, before proceeding with this option.

Further information is available from the Queensland Government’s “Reverse Auctions” – QGCPO – Procurement Guidance.

3.22 Special Purchasing Arrangements and Considerations

3.22.1 Leasing vs Buying Proposals

When making decisions about the acquisition of an item or asset, the University must satisfy itself that the best cost alternative is used. An acquisition should represent the best return and performance for the University, and for the money spent from a “total costs of ownership” or “whole of life costs” perspective.

Leasing arrangements must not be used as a way to alleviate the impact of pressure on budget allocations. There is no justification for entering into a leasing arrangement that increases the overall cost of an acquisition to the University.

Managers considering leasing an asset will, in the first instance, as part of the procurement planning, refer the matter to their Management Accountant. The Management Accountant will provide input into the procurement process, as part of the evaluation team. The Management Accountant will prepare a full “Lease vs Buy” analysis in accordance with the University’s Leasing Policy.

3.22.2 Deposits for Goods and Services

The University does not normally pay deposits for Goods and Services.

Where the vendor requires the payment of a deposit under the conditions of supply, a University Purchase Order will be raised for the full contract price.

The USQ Purchasing Card must not be used for the payment of deposits (as Tax Invoices are not available).

3.22.3 Trade-ins

Where a procurement process involves the trade-in of University property (including but not limited to Assets and Portable & Attractive Items) the University Purchase Order/Corporate Credit Card Transaction will be raised for the full value of the new item, noting in the comments section the details of the trade-in.

The Procurement Officer or Finance Officer will raise an Assessment Notice for the value of the Trade-in and ensure that a Disposal Form for either an Asset or a Portable & Attractive Item, where applicable.

It is practice that the University disposes of motor vehicles by auction, not by trade-in.

3.22.4 Australian and New Zealand Government Procurement Agreement (ANZGPA)

When conducting a procurement process including developing the specifications, inviting offers and evaluating offers, Procurement Officers will ensure there is no discrimination or bias against Australian and/or New Zealand suppliers of Goods and Services.

3.22.5 Hazardous Substances, Licensable Materials and Dangerous Goods

University Procurement Officers and Finances Officers must be aware there may be Work Health & Safety (WH & S) considerations when procuring Goods and Services and they are responsible for requesting a current Material Safety Data Sheet (MSDS) at the time of purchase.

Managers of faculties or departments requesting the ordering of hazardous substances are responsible for complying with all University WH & S requirements including the retention of the MSDS.

When ordering Licensable Materials, Managers are responsible for meeting legislative requirements and ensuring the correct licenses are held within the area.

Australian suppliers must comply with Australian design standards such as electrical, structural and technical standards. Where goods are sourced overseas the Procurement Officer or Finance Officer will request confirmation that the item meets Australian design standards. In exceptional circumstances, where the item doesn’t meet Australian design standards, this will be brought to the attention of the Manager before purchase and documented accordingly.

Procurement Officers and Finance Officers will include applicable WH & S clauses in all written documentation, for example USQ Purchasing Card Authorisations and invitations to quote.

3.22.6 Second Hand Goods

The University may procure second hand goods where it is demonstrated they meet the required specifications and a new verses second hand analysis indicates the goods:

• provide value for money based on a whole-of-life analysis

• are not encumbered

• carry an acceptable warranty

A request to purchase second hand goods, addressing the above points, will be made to Procurement and Contracts Supervisor.

3.22.7 Assets or Portable and Attractive Items

Where the University procurement or purchase process results in the acquisition of an Asset or a Portable and Attractive Item, the Procurement Officer and /or Finance Officer must identify and record those purchases in accordance with the Assets and Intangible Assets Policy or Portable and Attractive Items Policy, as appropriate.

3.23 Managing and Monitoring Supplier Performance

The University will manage and monitor supplier performance where there is high relative expenditure and/or difficulty in securing supply or where the supply is part of a SOA.

By managing and monitoring supplier performance the University will aim to:

• Reduce transaction costs and vendor volume.

• Contribute to effective risk management by compiling a risk profile of vendors.

• Build cooperative relationships with suppliers and therefore improve supplier and purchaser performance.

• Assist in developing supplier capability e.g. software development/specialisation for a University environment.

Before establishing a contract the University will:

• Develop a robust specification that properly analyses its needs and clearly defines the outcomes desired for the purchase including any necessary milestones.

• Identify the Contract Manager.

• Establish Key Performance Indicators (KPIs) for the purchase, where required.

• Refer to past supplier performance records.

• Develop a contract, seeking input from the successful offeror, where appropriate, on periodic contract reviews, monitoring procedures and measurement of performance against appropriate KPIs.

During the period of the contract, the University’s responsible Contract Manager will:

• Regularly check the supplier’s progress to ensure that contractual obligations are being met, and provide feedback as required.

• Keep adequate, written records of all dealings with the supplier and of the administration of the contract.

• Provide necessary feedback to the supplier regarding contract performance.

When a contract has been completed the responsible Procurement Officer will initiate and if required, assist the Contract Manager to:

• Evaluate of supplier performance against outcomes, KPIs and/or milestones.

• Provide feedback to the supplier on performance, if requested.

• Update records of supplier performance for future reference.

Managing and monitoring supplier performance will usually form part of a Significant Procurement Plan.

Further information, and performance measurement tools, are available from the Queensland Government’s “Managing and Monitoring Suppliers’ Performance” – Queensland Purchasing Better Purchasing Guide.

3.24 Complaints about Procurement Activities

The University will maintain a fair, equitable and non-discriminatory procedure for addressing complaints and concerns raised by staff, suppliers or members of the community about the conduct of the University’s procurement activities.

Complaints originating via a telephone call to a Procurement Officer or Finance Officer will be, where possible, resolved by the receiver, by providing more information on the University procurement process and practices. Procurement Officers and Finance Officers will maintain signed and dated file notes of these telephone conversations.

If the complainant wishes to pursue the matter further, they will be advised to:-

• put their concerns in writing, addressed to the Strategic Procurement Administrator;

• give sufficient details of the complaint to clearly identify the subject, such as the transaction date, process or offer; and

• give sufficient details regarding the nature of the complaint, for example about the conduct of the procurement activities.

The Strategic Procurement Administrator will:

• within three (3) working days, acknowledge the receipt of the complaint in writing, advising of the process and timelines that will follow;

• investigate the complaint and respond in writing within 21 days addressing the issues raised;

• where there is a prolonged investigation (longer than 21 days) provide regular feedback to the complainant; and

• maintain a record of complaints including:

  • Date

  • Complainant

  • Brief description of the Complaint

  • Action

  • Outcome

Where the Strategic Procurement Administrator is of the opinion that the matter may involve misconduct or serious misconduct the matter will be referred to Chief Financial Officer. The Chief Financial Officer will investigate the reason for non-compliance with this Policy and recommend action under the University’s Policy on Disciplinary Action for Misconduct or Serious Misconduct.

Where the Strategic Procurement Administrator is of the opinion that the matter does not involve misconduct or serious misconduct, but is of an administrative nature, the Strategic Procurement Administrator will instigate a training program for the Procurement Officer and/or Finance Officer, or member of staff to ensure all future procurement activities are conducted in accordance with this Policy and Procedures.

Further information is available from the Queensland Government’s “Complaints Management” – QGCPO – Procurement Guidance.

3.25 Partial Exemption from Applying these Approved Procurement and Purchasing Procedures

The State Procurement Policy (2010) requires the University to use its best endeavours to ensure that all procurement transactions follow a standard transparent competitive process that provides value for money and to ensure the University’s procurement outcomes are defensible.

Therefore exemptions from these procurement and purchasing procedures will be granted in only limited circumstances and as detailed below:

3.25.1 Sole or Limited Supply Request

• The request will be in writing and will detail the steps undertaken to support/verify there is a genuine sole or limited supply.

• The request will be forwarded to the Delegated Procurement Officer (where required), prior to the Procurement Officer obtaining quotes.

  Estimated Total of Acquisition	Delegated Procurement Officer
  $5,000 to less than $10,000	Procurement Officer performing the purchase (including self regulation)
  $10,000 to less than $100,000	Procurement and Contracts Supervisor
  Over $100,000	Strategic Procurement Administrator

The Delegated Procurement Officer will respond in writing either to:

• Accept the request.

• Request additional information.

• Reject the request, providing reasons for the rejection.

• If approved, the standard format of the invitation remains unchanged.

3.25.2 Brand or Manufacturer Specific Supply Request

• The request will be in writing and will detail the steps undertaken to support/verify there is a genuine brand/manufacturer specific supply requirement.

• Prior to obtaining quotations, the request will be forwarded to the Delegated Procurement Officer (where required)

  Estimated Total of Acquisition	Delegated Procurement Officer
  $5,000 to less than $10,000	Procurement Officer performing the purchase (including self regulation)
  $10,000 to less than $100,000	Procurement and Contracts Supervisor
  Over $100,000	Strategic Procurement Administrator

• The Delegated Procurement Officer will respond in writing to either to:

  • Accept the request

  • Request additional information

  • Reject the request, providing reasons for the rejection

• If approved, the standard format of the invitation remains unchanged.

3.25.3 A situation of Genuine Emergency

• The request will be in writing and detail the circumstances of the genuine emergency. Note: Lack of planning does not constitute a genuine emergency.

• Extreme emergency situations may be approved after the event.

• The request will be forwarded to the Delegated Procurement Officer.

  Estimated Total of Acquisition	Delegated Procurement Officer
  Under $100,000	Procurement and Contracts Supervisor
  Over $100,000	Strategic Procurement Administrator

3.26 Payments and Accounts Payable

3.26.1 Payment Methods

Efficient procurement and/or purchasing processes require the support of a number of different payment methods. The University systems currently support the following methods:

• Petty Cash – for goods less than $75 (excludes GST)

• USQ Purchasing Cards – for goods or services less than $5,000 (includes GST)

• Electronic Funds Transfers (EFT) including limited direct debts

• University Cheques

• International Wires (Telegraphic Transfers)

• International Bank Drafts

Note: For payment methods using a Corporate Credit Card refer to the Corporate Credit Card Policy for further information.

3.26.2 Accounts Payable Transaction Types

The University supports and will only make payment against the following transaction types:

• Official University Purchase Orders:

  • Issued by Financial and Business Services

  • System generated numbers

  • PeopleSoft Workflow approved

• Transactional Payments, examples include, but are not limited to:

  • Utilities, memberships etc

  • Exam payments

  • Library Vouchers

  • Commissions

• External Payment Requests:

  • Staff reimbursements

  • Relocation and Interview expenses

  • Home Stay Payments

• Corporate Credit Card Purchases, as detailed for cardholder type in the Corporate Credit Card Policy:

  • USQ Executive Cards

  • USQ Purchasing Cards

  • USQ Frequent Traveller Cards

  • USQ Travel Expense Cards

3.26.3 Vendor Creation and Maintenance

The University will only accept vendors with a valid ABN or who provide a valid “Statement by Supplier”.

New Vendor Forms will be completed in full, forwarded to Financial and Business Services (Procurement) and be accompanied by:

• an extract from the ATO ABN website; or

• “Statement by Supplier”.

Note: The standard University payment terms are 30 days, from date of invoice. A vendor may apply to reduce these payment terms in exceptional circumstances.

When using an existing vendor Procurement Officers and Finance Officers will ensure vendor details are still current or submit a Change in Vendor Form where necessary.

3.26.4 Vendor Supplied Credit Applications

Where a vendor requires the University to complete a Credit Application Form, these will be forwarded to the Treasury and Trade Receivables Officer for completion and referral to the Director, Financial Operations. If the Terms and Conditions are considered to form a contract, then the Credit Application will be referred to the University’s Legal Office.

3.26.5 Credit Notes

For USQ Purchasing Card transactions:

• Where a credit note has been issued by a supplier for items on an unpaid invoice, the credit note may be matched against the invoice and a ‘net’ payment made to the supplier using a USQ Purchasing Card

• Where a credit note has been issued by a supplier for items on a paid invoice, Procurement Officers and Finance Officers will request the supplier process the credit note as a credit transaction against the original credit card number.

All other credit notes will be forwarded to Financial and Business Services (Accounts Payable) for recovery against the vendor in the PeopleSoft Finance System.

3.26.6 Payments Returned and/or Cancelled

Financial and Business Services (Accounts Payable) will investigate and document the reason for each returned payment, and prepare a recommendation for review by a financial delegate. Where possible the payment will be reissued. Where the payment is no longer required the funds will be returned to the originating department and account coding.

Cheques or International Bank Drafts that are not presented in a timely manner, will be investigated by the Finance and Payables Supervisor, and prior to becoming stale, a recommendation will be made to a financial delegate.

Where the payment cannot be reissued the monies will be forfeited to the University under the University’s Excess Payments Policy.

3.27 Record Keeping and Supporting Documentation

Procurement Officers and Finance Officers must retain all supporting documentation relating to a procurement process for 7 years from the date of the transaction in accordance with the Public Records Act 2002, Financial Management section of the General Retention and Disposal Schedule for Administrative Records (GRDS), and for Audit purposes.

3.28 Continuous Improvement in Procurement and Purchasing Activities

The University’s Continuous Improvement Framework is inclusive of staff at all levels and is formed by the following principles:

• Delivers measurable improvement in critical end-to-end business processes.

• Improvements in services are focused on customer needs.

• Empowering frontline staff to develop solutions to problems and, in so doing, begins to change the culture.

• Involves multi-level, multi-functional teams of staff, thus breaking down barriers, developing relationships and allowing a share of best practice.

• Contributes significantly to the creation of a strong culture of learning and encourages creativity and risk-taking whilst stimulating challenge, innovation and change.

• Improvements are sustainable because they become embedded in operational procedures.

• Cost effective – solutions depend on creativity, not capital investment.

The Chief Financial Officer will adopt the ADRI cycle (Approach, Deploy, Results, Improve) of continuous improvement in the Procurement and Purchasing activities of the University.

The Chief Financial Officer will encourage Procurement Officers and Finance Officers, and all staff involved in a procurement and purchasing process, to:

• develop methods to prioritise procurement activities, including regular meetings with stakeholders.

• provide feedback on the outcomes of a procurement activity and their level of satisfaction.

• provide suggestions on how processes may be streamlined.

• be involved in workshops to discuss topics such as processes, paperwork and workflow.

• be involved in workshops that will share knowledge and provide background information on the framework in which the University manages its Procurement and Purchasing activities.

The Chief Financial Officer will incorporate agreed outcomes from this continuous improvement initiative in the KPIs within the annual Corporate Procurement Plan.

4 References

Australian Accounting Standards

Australia New Zealand Government Procurement Agreement (ANZGPA)

Competition and Consumer Act 2010

Crime and Misconduct Act 2001(Section 15)

Financial Accountability Act 2009

Financial and Performance Management Standard 2009

Financial Accountability Handbook

National Competition Policy

Public Sector Ethics Act 1994

Public Records Act 2002, (Financial Management section of the General Retention and Disposal Schedule for Administrative Records (GRDS: QDAN No 249 v.5)).

QGCPO Procurement Guidance and Guidelines (Various documents)

Queensland Government State Procurement Policy (2010)

5 Definitions

6 Other Policy Information

7 Explanatory Schedules

7.1 Alignment with the University’s Strategic Plan

The University’s Strategic Plan 2009-2013 includes USQ’s Mission, Vision and Core Values supported by Corporate Objectives listed under nine (9) Key Organisational Goals.

In particular Goal 9: Enterprise, is

“To deliver positive social, environmental and economic dividends.

The operating environment for higher education has become increasingly deregulated and competitive over the past decade. The optimisation of efficiency, effectiveness and capacity building have become major issues underpinning institutional financial sustainability.

Enterprise Objectives:

Objective 1: Quality corporate services that improve USQ’s overall performance and contribute to sustainable development.

Objective 2: Comprehensive information to support business decision making.

Objective 3: A carbon neutral operation across all three campuses by 2020.”

7.2 The Objectives of the State Procurement Policy (2010)

7.2.1 To Advance Government Priorities

The University recognises and embraces its responsibility to advance Government priorities. In pursuing this objective the University will, by promoting economic, social and environmental outcomes, assist the Government in the State’s procurement outcomes such as:

helping develop Queensland’s regions and competitive local suppliers.

contributing to a sustainable future.

supporting fairness in employee conditions.

contributing to improved workforce skills and training among Queensland Government procurement practitioners.

For example, by analysing the University’s procurement patterns, suppliers and supply markets the University can identify opportunities to engage local firms to supply Goods and Services to the University.

Additionally the University can provide leadership to business, industry and the community by promoting environmentally friendly buying strategies and practices that are energy efficient, minimise waste, contain recycled materials and conserve resources.

7.2.2 To Achieve Value for Money

The University shall seek to obtain value for money when purchasing goods, services and capital projects.

The value for money assessment is not restricted to purchase price alone but must include consideration for the:

contribution to the advancement of Government priorities;

cost related factors such as whole-of-life costs and transactional costs associated with, acquisition, alteration/refurbishment, use, holding, maintenance, support and disposal; and

non-cost factors such as fitness for purpose, quality, service and support, compliance with specifications, reliability, supplier capability.

Value for money is often achieved when purchasing from suppliers who consistently meet the needs of the University. It is therefore important that Financial and Business Services (Procurement) develop an intimate knowledge of their key supply markets and maintain a history of supplier’s performance.

In pursuing the objective of value for money the University, through this Policy, and associated procedures, guidelines, documentation and forms will promote an efficient and effective procurement service commensurate for the money being spent.

Further information on this objective can be found in the Queensland Government’s “Value for Money” Queensland Purchasing Better Purchasing Guide”.

7.2.3 To Ensure Probity and Accountability for Outcomes

The University shall conduct all its procurement and/or purchasing activities ethically, honestly and with fairness to all parties.

All University staff involved in any aspect of procurement and/or a purchasing activity will act with fairness and impartiality, ensure the process is open and transparent, ensure confidentiality and security of information for all parties concerned and, act with integrity and professionalism throughout the activity, and the management of any subsequent procurement contract.

In performing their duties the staff member will advance the interests of the University in all transactions whilst ensuring that the University’s standing is uncompromised and the integrity of its procurement and/or purchasing activities is not jeopardised.

All staff are required to disclose any conflicts of interest and undertake their purchasing responsibilities uninfluenced by the receipt or prospect of threats, reprimands or rewards, and will not accept or seek gifts or other favours in the performance of their duties.

All University procurement and/or purchasing activities will comply with this Policy and the standard procedures and documentation set for that level of purchasing, to ensure the University can meet the fundamental requirements of accountability and transparency, and that the outcomes of procurement and/or purchasing transactions are documented and defensible.

Further information on this objective can be found in the Queensland Government’s “Ethics, Probity and Accountability in Procurement” Queensland Purchasing Better Purchasing Guide.

7.3 Corporate Procurement Plan

The University’s Corporate Plan includes:

7.3.1 Forward Procurement Plan

The University’s Forward Procurement Plan will be compiled from the Capital Equipment Registers, Minor Works Plan, Capital Asset Management Plan, ICT Triennial Capital Plan and faculty / department major purchases required in the next twelve months.

In addition, the Forward Procurement Plan will include Standing Offer Arrangements (SOAs) due for renewal and any opportunities for new SOAs, based on the current spend analysis.

The Forward Procurement Plan details will include:

Description of the purchase.

Faculty / Department funding the purchase and the relevant Management Accountant.

Faculty / Department contact point.

Procurement Timelines (expected quarter).

Estimated costs.

Procurement strategy.

Anticipated resources and staffing.

The University will use the QGCPO e-Tender website to publish all procurements identified in the Forward Procurement Plan with an estimated value greater than $100,000.

7.3.2 Procurement Measurement

Under the State Procurement Policy (2010) it is mandatory for the University to ensure that a framework for procurement measurement and reporting is in place.

The Corporate Procurement Plan will include a section on Procurement Measurement and this will detail procurement measures and targets and an annual comparison of actual results against targets.

The University will adopt the current QGCPO methodology and template as a guide for the preparation of procurement measurement reporting.

7.3.3 Procurement Assessment

As part of the University’s commitment to continuous improvement it will periodically assess its procurement capability and performance. The State Procurement Policy (2010) recommends the University consider conducting such an internal review at least every three years, with the option of a periodic independent review.

The Corporate Procurement Plan will include a section on the assessment of the procurement function.

The University will adopt the current QGCPO methodology and template as a guide for the preparation of the procurement assessment reporting and conduct an internal review at least every three years.

7.4 Significant Procurement Plan

Significant Procurement Plans will:

analyse internal demand for the procurement;

establish the status of the supply market relevant to the area of procurement and the likely impact the procurement will have on the market;

establish the objectives of the procurement;

specify how the procurement supports the achievement of the University’s procurement objectives;

identify staffing resources;

evaluate potential buying strategies and identify the preferred strategy to be followed; and

specify measures for evaluation of the implementation of the supply strategy.

The main factors that will influence the level of detail in a University Significant Procurement Plan, will relate to the size, scope, and risk of the procurement, together with the complexity of the supply market and the timeframe needed to achieve a successful outcome.

The Strategic Procurement Administrator will manage and /or coordinate the development of each Significant Procurement Plan, identifying the applicable detail / elements based on an assessment of the requirement. Each plan will be developed using a Significant Procurement Plan Template and Guidelines.

7.5 University Buying Strategies and Practices

The total expenditure of the University on Goods and Services can be segmented into four categories:

These categories will influence the University’s procurement strategy and procurement practices.

A summary of strategies and opportunities are outlined in the table below.