Group procurement policy

Intent

This policy outlines the principles and governance framework that will guide the purchasing and disposal of all goods and services, either purchased or leased from suppliers external to the RMIT University Group.

Scope

The policy applies to all University activities (regardless of source of funds) including those undertaken by Foundations, Centres, Controlled Entities (as defined by the University’s Controlled entities policy), and any other entity, which has entered into an agreement with the University, requiring compliance with the University’s policy and associated procedures.

Exclusions

1. RMIT Student Union spending RMIT donated funds.

2. Services of authorised persons undertaking audits for the Victorian Auditor-General’s office

3. Works of Art

4. Engagement of barristers by the Legal Services Group

Objectives

The RMIT Group Procurement policy will ensure that the acquisition of goods and services across the University complies with a minimum set of governance standards whilst delivering fair value for money in a competitive environment that meets the following standards:

1. Compliance with all regulatory requirements;

2. Adherence to leading probity through equitable opportunity in a transparent process;

3. Ethical behaviour in dealing with the vendor community;

4. Effective management of financial, physical and reputational risk;

5. Sustainable supply chains for goods and services that meets environment, social and commercial outcomes valued by the organisation.

Policy provisions

Principles

The principles that govern procurement are:

1. Value for money, being the functional and commercial benefits compared to the Total Cost of Ownership (TCO) including environmental, social and sustainable considerations;

2. Open, fair and effective competition

3. Accountability to ethical behaviour and fair dealing

4. Probity and transparency

5. Risk management

Governance & Control

The Procurement Review Board (PRB) is responsible for ensuring that the University’s Procurement Policy is observed. The PRB will review procurement practices periodically and recommend steps to the VCE and the Audit and Risk Committee to ensure appropriate governance is maintained over University Procurement activities.

The University has a Strategic Sourcing & Procurement (SS&P) function, which is responsible for ensuring adherence to the policy.

The procurement policy framework shown in Figure 1 consists of the following procedures that will ensure the policy objectives are achieved.

Policy Framework

Figure 1: Procurement policy framework

Figure 1

  • Tenders and Quotations (which are all to be conducted by SS&P) should be provided in accordance with the Tender and Quotation Procedure. Tender waivers are only granted by SS&P in accordance with the procedure;

Goods and services

Where the amount to be expended is estimated to be:

Minimum quotation/tender requirement unless exemption granted

$2,500 or less

One verbal or written quotation.

Between $2,500 and $25,000

One written quotation.

Between $25,000 and $150,000

Three written quotations.

More than $150,000

1. Quotations must be received from at least three pre-qualified vendors where a vendor panel is installed.

2. Tenders must be called by public advertisement.

Building, infrastructure and equipment

Where the amount to be expended is estimated to be:

Minimum quotation/tender requirement unless exemption granted

$25,000 or less

One written tender / proposal which is consistent with current market prices.

Between $25,000 and $200,000

Three written tenders / proposals for price quotations against the scope of works.

More than $200,000

1. Quotations must be received from at least three pre-qualified vendors where a vendor panel is installed.

2. Tenders must be called by public advertisement.

  • Vendors are formally engaged in a strategic and commercial framework as described in the Strategic Sourcing Procedure to provide goods and services;
  • Contracts are maintained and vendors managed via the Vendor Performance Management Procedure that monitors the delivery and compliance of commercial and functional outcomes;
  • Monitoring and driving the use of contracted or approved vendors through the correct purchasing channels as described in the Procure to Pay Procedures. University Purchase Orders are to be issued for all purchases above $5,000 (excluding GST).
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