SCIENCE FOUNDATION IRELAND PROCUREMENT POLICY AND PROCEDURES

Transcription

1 SCIENCE FOUNDATION IRELAND AND PROCEDURES

2 POLICIES AND PROCEDURES INDEX SECTION PAGE Sectin 1 - Intrductin 2 Sectin 2 - Authrisatin & Tender Threshld Levels 3 Sectin 3 - General Prcurement Cnsideratins 6 Sectin 4 - Prcurement Prcess 8 Sectin 5 - Tender Prcess 10 Sectin 6 - Tender Evaluatin 11 Sectin 7 - Awarding the Cntract 12 Sectin 8 - Pst Award 13 1

3 1. INTRODUCTION This dcument summarises SFI s prcurement plicies and prcedures which must be cmplied with prir t cntracting fr the purchase f gds r services. The prcedures are drawn up t ensure cmpliance with: The State guidelines n cmpetitive tendering, which can be fund n the Office f Gvernment Prcurement (OGP) website at This site prvides valuable infrmatin n Gvernment Prcurement prcedures including e-tenders. EU Prcurement directives The prcedures are set ut t prmte gd crprate gvernance in relatin t prcurement, t safeguard against imprper r unethical practices and ensure that tendering prcesses are pen and transparent. Public prcurement rules permit departures frm the nrmal prcess f cmpetitive tendering. Hwever, such departures shuld nly ccur n an exceptinal basis. Prcurement prcedures shuld state the general circumstances in which a departure frm the nrmal standards wuld be apprpriate (e.g. urgent needs, etc.). The reasns fr the departure shuld be dcumented in advance and the departure frm the nrm shuld be apprved at Tier 1 /Bard level as apprpriate. See Sectin 3.5 Emergency Purchases. If any staff member has any query in relatin t these prcedures he/she shuld cntact the SFI Finance Department. 2

4 2 AUTHORISATION & TENDER THRESHOLD LEVELS 2.1 OVERVIEW The purchase f supplies and services shuld be in accrdance with the fllwing Prcurement guidelines; Befre entering int a cmmitment t purchase gds r services it is imprtant t ensure that: The gds r services are necessary; The prpsed cst represents gd value; There are budget resurces available against which the cst can be charged Cmpetitive tendering prcedures (State Guidelines and EU Regulatins) are fllwed, where apprpriate Threshlds fr bth the apprval f expenditure and fr Tender Prcedures as set ut in 2.2 and 2.3 are cmplied with. Apprpriate audit trail supprting dcumentatin is maintained fr each prcurement transactin. The transactin fr the gds r services has nt been split up int a number f transactins fr the purpses f circumventing the tender threshld levels. 2.2 SFI COMMITMENT TO EXPENDITURE AUTHORISATION LEVELS SFI Tiers Authrisatin Level Tier 1 Tier 2 Tier 3 Executive Cmmittee Executive Directrs Departmental Managers 3

5 Expenditure (Exclusive f VAT) Authrisatin Level up t 10,000 Tier 3 Frm 10,001 t 50,000 Tier 2 frm 50,001 t 250,000 Tier 1 Greater than 250,000* Bard * An item that brings apprvals, fr a cnsultant r cmpany, t an aggregate f 250,000 (exclusive f VAT) within the same calendar year requires Bard apprval. The relevant staff member seeking apprval t cmmit the expenditure n Gds and Services shuld prepare a written request fr apprval as fllws; Fr expenditure up t 5,000 a written request t the Tier 3 Member fr apprval by the relevant Tier member. Fr expenditure abve 5,000 a Business Case shuld be prepared fr apprval by the relevant Tier 1 member setting ut in detail the purpse f the expenditure, the scpe, the deliverables, skills required and the estimated cst f the prpsed gds r service. 2.3 SUPPLIES AND SERVICES TENDER THRESHOLDS The fllwing expenditure threshlds apply fr tendering fr gds and services in line with EU and Natinal Prcurement guidelines. EXPENDITURE (EXCLUSIVE OF VAT) Up t 5,000 Frm 5,000-24,999 TENDER REQUIRED Verbal qutatins frm ne r mre cmpetitive suppliers Written 3 r mre based n specificatins. Tender Evaluatin, Criteria & Weighting may be applicable Frm 25, ,999 Written - etenders (Any exceptins t using etenders must be apprved by Tier 1 ) r Gv. Framewrk Agreements if in place 207,000 r greater Written - Official Jurnal f the Eurpean Unin. (OJEU) 4

6 Details f all Tenders abve 5,000 (exc. VAT) shuld be updated in the SFI Central Cntracts Register. Respnsibility fr updating the register lies with the Tier 3 member. The link t the Central Cntracts register is S:\SFI\Finance & Operatins\Central Register fr SFI Tenders. 2.4 EXEMPT PURCHASES There are a number f items which frm a significant part f SFI s csts that, due t their nature, are exempted frm these Prcurement Plicies and Prcedures Prgramme Management csts including the fllwing: Hnraria rates set by SFI Executive; Subsistence - Department f Finance rates fllwed; Flight csts determined by Travel Services Office wh surce the mst ecnmically advantageus rates; Htel csts with agreed rates fr a range f htels arund the cuntry. Restaurant Csts (in certain designated restaurants) Accmmdatin Charges incrprating: Rent; Rates; Service Charge; Light & Heat; Catering; Equipment, statinery and ther sundry charges. These csts are brne by IDA as landlrd fr the agencies within Wiltn Park Huse and recharged at cst t the agencies n a pre-agreed percentage based n use, flr space r head cunt as apprpriate. SFI participates where apprpriate in the Grup Tendering Prcesses Insurances Insurance csts are negtiated under the Cmbined Agencies Insurances Grup (CAIG) which cmprises representatives f SFI, IDA, EI and a number f ther agencies. A public tender is issued in respect f these charges every 3 5 years. Insurance csts are billed direct t the agency cncerned. 5

7 3 GENERAL CONSIDERATIONS 3.1 RESPONSIBILITIES FOR STAFF PROCURING GOODS AND SERVICES: Ensure adherence t the prcurement plicies and prcedures in place. Obtain the apprpriate Tier level apprval as per the Table set ut in 2.2. If the estimated expenditure ges frm belw 50,000 t abve 50,000 apprval is required at Tier 1 level. 3.2 ADHERANCE TO PROMPT PAYMENTS ACT and the PROMPT PAYMENT CODE OF CONDUCT PROMPT PAYMENT ACT The Statutry perid f payment f invices is 30 days, hwever, fllwing a Gvernment Decisin, SFI adheres t: payment f invices within 15 days f receipt in s far as these are nt disputed and n later than 30 days. disputed Invices queried with suppliers within 5 days f receipt. payment f amended Invices within 10 days f receipt. interest Rate - Latest Applicable Reference rate fr main refinancing peratins as set ut by the EU plus statutry late payment interest f 8%. There are tw perids annually, 1 January t 30 June and 1 July t 31 December. details f Late Payments being included in the Annual Reprt. PROMPT PAYMENT CODE OF CONDUCT As a Gvernment Agency, SFI has signed up t the Prmpt Payment Cde f Cnduct and as such agrees t: Pay suppliers n time: within the terms agreed at the utset f the cntract, r 15 days, in accrdance with Cde f Cnduct withut attempting t change payment terms retrspectively withut changing practice n length f payment fr smaller cmpanies n unreasnable grunds 6

8 Give clear guidance t suppliers prviding suppliers with clear and easily accessible guidance n payment prcedures, i.e. all invices shuld be issued t invices@sfi.ie. ensuring there is a system fr dealing with cmplaints and disputes which is cmmunicated t suppliers. advising them prmptly if there is any reasn why an invice will nt be paid n the agreed terms. 3.3 TAX CLEARANCE PROCEDURES Suppliers are bliged t prduce a valid Tax Clearance Certificate where gds/services supplied exceed r are likely t exceed 10,000 (inclusive f VAT) during any 12 mnth perid. Hwever, t ensure full cmpliance with this requirement, it is SFI plicy t request a valid tax clearance certificate fr all new suppliers, irrespective f the estimated value f the Gds / Services t be supplied. Suppliers shuld be advised that befre a cntract is awarded the successful tenderer must prduce a valid Tax Clearance Certificate frm the Revenue Cmmissiners. 3.4 VALUE ADDED TAX (VAT) Tender prices shuld be expressed exclusive f VAT and the VAT rate applicable specified. 3.5 EMERGENCY PURCHASES These are purchases which due t the urgency f their acquisitin are acquired withut ging thrugh the nrmal Prcurement prcedures. Such Purchases are rare, must be unfreseen and nt have arisen due t any actin r inactin n the part f the cntracting authrity. In these cases full details f the purchase, its cst and the reasns why it is required t be purchased shuld be set ut and apprved at Tier 1 Level. 7

9 4. PROCESS 4.1 REQUEST FOR TENDER (RFT) DOCUMENT Once apprval has been btained by the relevant Tier level 1 member fr the expenditure as per the authrisatin levels at 2.2, a Request fr Tender (RFT) dcument shuld be prepared fr all purchases greater than 5,000 (threshld fr written qutatins frm suppliers). The RFT dcument, shuld set ut, as apprpriate, the scpe f the purchases/service required, the evaluatin criteria and weightings and details f SFI s terms and cnditins. The RFT shuld include a request fr the ttal hurs and a breakdwn f the estimated ttal csts requested t deliver the cntract, which shuld take int accunt the impact f the fllwing: Optins - Where a prpsed cntract prvides fr ptins, the basis fr calculating the cntract value shall be the maximum ttal pssible assuming that all the ptins will be exercised. Duratins & Rllvers - the value f the cntract shuld be calculated ver its full duratin, including any extensins r pssible Rllvers. Fr example, if there is a pssibility that a secnd cntract may be awarded t an existing cntractr because f prir subject knwledge then such extensin must be added t calculate the verall final cntract cst estimate. Where the e-tenders website is required t be used (fr tenders ver 25,000) SFI is required t submit an estimate f the value f the cntract n the website. The estimated value f the prpsed cntract shuld take int accunt a cmparisn t similar cntracts undertaken, external benchmarking f cmparable csts and the impact f Optins, Duratin & Rllvers as set ut abve. The RFT shuld state clearly that SFI is under n bligatin t award a cntract t the highest ranked tenderer r t any tenderer. A standard RFT Template has been develped fr use and is lcated at X:\Tender fr Services.dc 8

10 4.3 OFFICE OF GOVERNMENT (OGP) The Office f Gvernment Prcurement (OPG) cmmenced peratins in 2014 and will, tgether with fur key sectrs (Health, Defence, Educatin and Lcal Gvernment), take respnsibility fr surcing all gds and services n behalf f the Public Service. In additin, the OGP will als take full respnsibility fr prcurement plicy and prcedures. The OGP are in the prcess f putting in place cntracts fr 16 categries f cmmn gds and services fr all public bdies. The categries f relevance t SFI include: Prfessinal Services Marketing, Print and Statinery HR services ICT Expenditure and Office Equipment Full details are prvided in the 2015 Target schedule f Cntract and Framewrks, which is intended t prvide an indicatin, by quarter, f when the OGP expects t have particular cntracts and framewrks in place fr public sectr bdies. All OGP prcurement activity will be cnducted thrugh the etenders platfrm. The current Cntracts/Framewrk Agreements f relevance t SFI are available at: S:\SFI\Finance & Operatins\Prcurement\OGP Cntracts & Framewrk Agreements As mre infrmatin is prvided by the OGP n the timescale fr putting in place cmmn cntracts fr the abve areas, staff will be infrmed and the Prcurement Plicy will be updated t reflect the revised prcedures t be fllwed. If any staff member wh wishes t prcure any f the abve items shuld cntact the Finance Department fr guidance. Fr the mment, the existing tender prcess shuld cntinue t be fllwed as set ut belw. 9

11 5. TENDER PROCESS 5.1 TENDERING TECHNIQUES Cntracts shuld either be awarded n the basis f the lwest price r the mst ecnmically advantageus tender (MEAT). When using the MEAT methd, the criteria t be applied when evaluating the tenders must be listed in the RFT. The current list f Gvernment Framewrk Agreements shuld be reviewed and shuld be used if pssible, where applicable, t prcure gds r services. Weightings fr the criteria selected must be clearly stated in the RFT and a minimum weighting f 20% must be applied t Cst. If the criteria and predefined weightings fr evaluating tenders are nt clearly defined in the RFT, the cntract must be awarded t the lwest price. Fr all tenders belw 25,000, three written qutes shuld be btained fr the gds/ service required in accrdance with Table 2.3 (a) and (b) fr Nn-IT and IT expenditure tender threshlds. Fr all tenders abve 25,000, the RFT shuld be upladed t the e-tenders website by the staff member managing the prject. Any staff member wh wishes t use e-tenders website fr the first time shuld cntact the Finance Department t becme a valid user n e-tenders and t btain a valid user ID. Where it is necessary t deal with a sle supplier, service prvider r cntractr, arrangements which prvide best value fr mney shuld be negtiated nce Tier 1 / Bard apprval has been btained in advance f the tender prcess, as apprpriate. 10

12 6. TENDER EVALUATION 6.1 GENERAL GUIDELINES The tender delivery instructins must be clear t all prspective tenderers at the invitatin t tender stage and the tender receipt arrangements shuld be made as fail-safe as pssible. The prcess f receiving, pening and recrding tenders must be cnducted in a manner that ensures the integrity f the tendering prcess Evaluatin f tenders must be carried ut by a suitably cmpetent team. Fr all tenders fr expenditure belw 25,000 a three persn Evaluatin Cmmittee, including ne Finance member shuld be put in place t evaluate all tenders received. Fr all tenders fr expenditure abve 25,000, a fur persn Evaluatin Cmmittee shuld be put in place t evaluate all tenders received. The cmmittee shuld include ne persn frm the Finance Department and ne persn wh is independent f the department prcuring the gds r service, and wh may be external t SFI. All supplier queries pre-clsing date must be submitted in writing and all ptential tenders advised f any issues raised and respnded t. 6.2 RECORDING THE TENDERS - UP TO THE CLOSING DATE The date and time f the tenders received by pst shuld be marked n each tender envelpe. Late tenders will nt be accepted and this shuld be made clear t tenderers at invitatin t tender stage. The unpened tender and accmpanying materials, if any, shuld be stred securely. When using e-tenders, the e-tenders Pst Bx can be used. If this ptin is chsen it shuld be stated clearly in the RFT. 6.3 OPENING THE TENDERS - AFTER THE CLOSING DATE A frmal pening f tenders received by pst shuld take place with at least ne member f the Evaluatin Cmmittee and anther member f staff. Tenders shuld be pened, date stamped, recrded and signed as sn as pssible after the clsing date. Full details f any tenders received by , including time and date submitted shuld als be frmally recrded 11

13 All tenders shuld be checked fr any missing material and checked t ensure that all dcuments that were stated that were submitted were actually submitted. A nte f the utcme f the tender pening shuld be signed by the fficials carrying ut the pening and sent t the members f the Evaluatin Cmmittee. 6.4 SCORING OF TENDERS All tenders shuld be scred against the criteria and weightings included in the RFT, t identify the mst ecnmically advantageus tender: The cmmn criteria used in RFTs include Quality f supplies r services Ttal cst f prpsal Capacity and capability f service prvider Prfessinal standing and cnduct Prfessinal and technical expertise Financial r ecnmic standing It may be apprpriate t invite tenderers t present t the Evaluatin Cmmittee, particularly where such a presentatin may clarify infrmatin cntained in the tender. A full recrd f the scring system used shuld be maintained fr audit trail purpses and held n file alng with the dcumentatin fr the tender. 7. AWARDING THE CONTRACT Cntracts shuld be awarded nly t suppliers wh can demnstrate the necessary qualificatins, capabilities, and experience t prvide the required supplies, wrks r services. Evidence f insurance cver, where relevant, shuld be prvided, fr emplyers liability, public liability and prfessinal indemnity insurance befre a cntract is awarded. Current Tax Clearance Certificates must be btained in advance f awarding any cntract. 12

14 8. POST AWARD 8.1 DEBRIEFING UNSUCCESSFUL TENDERERS SFI shuld infrm tenderers, in writing, f the decisin taken n the award f the cntract withut delay. Where a tenderer requests the reasns fr rejectin f its tender, SFI shuld, within 15 days, prvide sufficient reasns t enable the tenderer t understand why they were unsuccessful. The reply shuld address the supplier s ffer against the evaluatin criteria fcusing n the relevant strengths and weaknesses f the tender withut explicit cmparisn between the suppliers ffer and any ther ffer AUDIT DOCUMENTATION A fully dcumented audit trail must be maintained fr each cntract awarded abve 5,000. This shuld include infrmatin relating t:- Evidence f apprval t incur expenditure. Outline f tender prcess used RFT dcument Details f any pre-tender crrespndence. Register f tenders received Cpies f all tenders received Summary f final ranking after tender evaluatin, where applicable including recmmendatin f successful tenderer. Regret ntificatins t unsuccessful tenderers Cpy f signed cntract r ntificatin t successful tenderer. 8.3 FINANCE & OPERATIONS NOTIFICATION The Central Cntracts register shuld be updated fr all cntracts awarded greater than 5,000 exc. VAT. Respnsibility fr updating the register lies with the Tier 3 member respnsible fr the Tender. All Tenders, Qutes and supprting dcumentatin shuld be held by the persn respnsible fr the Tender and readily accessible t Finance & Operatins staff and any Internal r External Auditr. 13

15 Such dcumentatin shuld nt be archived until at least 6 mnths after the end f the year in which the prject is cmpleted. e.g. prject starts in 2013 & finishes in Dcuments shuld nt be archived until the end June 2015 at earliest. This is t facilitate access t tender dcumentatin fr audit purpses. 8.4 FOI CONSIDERATIONS Under the prvisins f the FOI Acts (1997 and 2003) all dcumentatin relating t the prcurement prcess may be requested, including any ntes taken by an interview panel. Members f the Interview panel shuld be aware f this at all times. 14