CORK CITY COUNCIL. Procurement Approval Policy & Procedure VERSION 1 EFFECTIVE FROM

Transcription

1 CORK CITY COUNCIL Procurement Approval Policy & Procedure VERSION 1 EFFECTIVE FROM 1 st May 2015

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3 Pre Procurement Policy and Procedure 1.0 Purpose The purpose of this policy and procedure is to introduce cental oversight into the devolved procurement structure operated by the Council. This will facilitate a greater level of compliance, coordination and reporting of procurement activity within the City Council and enable interaction with outside organisations such as the Office of Government Procurement (OGP). 2.0 Scope This policy and procedure covers the procurement of all recurring and once off goods and services requirements over 25,000. It also covers works and works related consultancy services which are recurring in nature and charged to the Revenue Account over 25,000. The policy and procedure does not cover the actual procurement process itself which is subject to the Corporate Procurement Policy. Capital contracts are also outside the scope of this policy and procedure as they continue to be subject to the Corporate Standard Operating Procedures for the Appraisal and Management of Capital Projects. 3.0 Responsibility This policy and procedure applies to all Cork City Council staff that purchase goods, services and / or works. 4.1 Policy 4.2 Pre Procurement Approval In planning a procurement exercise within the scope outlined above the prior approval of the Procurement Unit is required i.e. contracts must not be advertised until approval has been granted. In applying this policy it should be noted that: Contracts must not be divided into lots to be less than the threshold for pre approval. Cork City Council s own requirements will be aggregated under a single procurement process and where available must utilise sectoral and national contracts where these meet the needs of the Council. This is to ensure that local resources are minimised and public sector buying power is leveraged. To comply with aggregation requirements it is not just the immediate requirements which must be included but also potential future requirements 3 P a g e

4 4.3 Post Award On awarding a contract under the scope of this policy, the details as set out in (Appendix 1) must be submitted to the Procurement Unit, Finance Dept. 4.4 Procurement Planning & Reporting Each Directorate / Department must prepare an Annual Procurement Plan at the beginning of each year and submit quarterly progress reports to the Procurement Unit. Ad hoc reporting needs including external requests for information must also be provided when required. 5.1 Procedure 5.2 Pre Procurement Approval As part of the planning phase of a procurement competition the Pre Procurement Approval Request Form set out in Appendix 1 must be completed in full, signed and submitted electronically to the Procurement Unit. Each section is expandable and forms should be typed, with signed scanned copies being ed to the Procurement Unit: procurementcorkcity@corkcity.ie Sufficient time should be allowed in planning each procedure to allow for approval to be received. A decision will be made by the Procurement Unit once all the necessary information is received and communicated back to the signee. In the case of genuine emergencies, short term contractual needs can be met without pre approval however the Pre Procurement Approval Request Form must be completed at the earliest opportunity and the action taken justified. Emergencies must be as a result of factors outside the control of the Council and do not include situations arising due to inaction. The procurement of supplies and services is subject, in all cases, to the availability of financial resources. The cost code holder for the Business Unit to which the expenditure will be charged must sign to certify that an approved budget exists and is available for the procurement covering the estimated expenditure being procured. It is the policy of Cork City Council to aggregate its own requirements under a single procurement process and to utilise sectoral and national contracts where these meet the needs of the Council to reduce the level local resources required for procurement and to leverage the public sector buying power. Where it is proposed that another Council contract or national solution is not to be utilised then this will need the sign off of the Director of Service / Dept Head and the Head of Finance. 4 P a g e

5 When planning procurement procedures it is not just the immediate need that should be considered but future requirements. Casual or once-off purchases should be minimised by designing tenders to allow for potential future requirements where possible which will reduce procurement administration and obtain improved value for money In cases where the planned procurement approach does not comply with the Council s Procurement Policy then a detailed justification for not applying the policy must be provided. Purchase to Pay Process; when submitting payments to the Accounts Payable of the Finance Department, the Pre Procurement Approval Form showing evidence of approval must also accompany the payment documentation currently required. Failure to provide this authorisation will result in the payment request being returned to the originating section for the Form to be attached. 5.3 Post Award Details of contracts awarded on foot of procurement competitions which fall within the scope of this policy must be provided to the Procurement Unit. The information which will form the basis of a corporate contract register should include the name of the successful tenderer and the beginning and expiry dates of all contracts included details of any extensions required. This information should be provided to the Unit as soon as the contract is entered into. It should be noted that all contracts advertised on e-tenders require a Contract Award Notice. This is the responsibility of the person running the tender competition on e-tenders. 5.4 Procurement Planning & Reporting Each Directorate / Department will produce an Annual Procurement Plan which should at a minimum set out the action which will be taken to procure new requirements, contracts which expire during the year and any other recurring purchases which are not compliant. The report should set out who is responsible and the planned timelines for executing each procurement procedure and contract award. The requirements under this policy should be built into the planned timelines. Plans to target areas to achieve savings, improve value for money or to get administration efficiencies in procurement should be set out. The current OGP or local government pipeline of planned procurement should be used as an input in the planning process. These Plans should be submitted to the Procurement Unit prior to the beginning of each year to enable a Corporate Annual Procurement Plan be prepared. Quarterly Procurement Reports which include details of progress against objectives set out in the Annual Procurement Plans are to be submitted to the Procurement Unit at the end of each quarter as per the table below. This report will be compiled by the Procurement Unit and submitted to the Head of Finance and will summarise progress against Corporate and Directorate specific objectives. 5 P a g e

6 Based on the Quarterly Report, the Head of Finance will provide a written report to Senior Management Team (SMT) in advance of quarterly meetings where procurement is included on the Agenda. Ad hoc reporting needs must also be met when required by each Directorate / Department. The OGP will be required to regularly report on procurement activity and savings and additional reporting my also be required by the Local Government Strategic Procurement Centre (LGSPC) from time to time. Directorate / Departments are required to be produced the following information to be submitted to the Procurement Unit by the due date indicated below: Report / Plan Pre Procurement Approval Request Form (Appendix 1) Annual Procurement Plan Quarterly Update on Planned Progress Versus Plan Ad hoc reports such as Savings as Required by LGSPC Ad Hoc Reporting Requirements as required by the Office of Government Procurement Due Date Prior to initiation of Tender Process 15 th December prior year Month End following Quarter End Deadline as notified by Procurement Unit As required 6 P a g e

7 Name of Contract: Directorate/Dept: Business Unit(s): Procurement Approval Procedure Pre Procurement Approval Form Part 1 Section A - General Details Person Responsible for Procurement Process: Contract Manager: OGP Category Description: Section B - Short Description of the Goods / Services / Works to be Procured: Estimated Value: VAT Rate: % Section C Please outline the Planned Procurement approach Advertised on e-tenders? If no please explain Which procedure is planned? Open / Restricted / Other Is it proposed to put in place a Contract or a Framework Agreement? Please specify why? 10 P a g e

8 Section D - Proposed Timeframes Target Date to Advertise Tender: Target Closing Date for Submissions: Target Date of Award: Section E Tender Reference Tender Reference No: (This reference will be assigned by the Procurement Section and must be used when publishing on e-tenders) Section F - Approvals Role Print Name Signature: Date Prepared by person carrying out Procurement: Approved by Cost Code Holder 1 Approved by Procurement Unit 2 : 1 The Cost Code Holder is confirming that the estimate in Section 2 is covered by an Available Revenue Budget/Capital Allocation 2 Send to procurementcorkcity@corkcity.ie 10 P a g e

9 Part 2: Post Procurement Contract Details Section E - Contract Details (on completion of procurement process) Summary of Procurement Decision: Contracted Supplier Name: Contracted Supplier Vat Number: Commencement Date of Contract: Expiry Date of Contract: (including details of options to extend) 10 P a g e

10 Appendix 2: Frequently Asked Questions Frequently Asked Questions for the requirement to submit a Pre Procurement Approval Form to the Procurement Unit When is a form required? A form is required for all purchases of goods, services and works made under contracts whose value exceeds 25,000 other than major works contracts which fall under the Standard Operating Procedures for the Appraisal and Management of Capital Projects. For all works contracts over 25,000 either a Pre Procurement Approval Form or a Capital Appraisal Form under the Standard Operating Procedures for the Appraisal and Management of Capital Projects must be completed. In areas where quotation processes are run every year consideration should be given to put a longer contract in place to achieve efficiency by reducing the annual workload of running such a process. What payments will require the Procurement approval form to accompany the payment documentation? Payments for contracts described under the previous question will require a Pre Procurement Approval Form. Who is responsible for submitting the Form? The person responsible for carrying out the procurement process must submit the form. This may be the same person as the person managing the contract but does not necessarily have to be. Who should sign the form? The person submitting the form should sign the form. See previous question for person responsible for submitting the form. How do I estimate the value of the contract? The value of the contract is the amount expected to be paid to the supplier(s) over the full contract term including contract extension options. What costs should I take into account in estimating the value of the contract? In estimating the value of the requirement the whole-life-costs of the purchase must be taken into account. For example if buying goods that will need ongoing maintenance then the maintenance costs must be taken into account and should be included in the tender. If applicable any decommissioning or disposal costs should be factored in by including that service in the tender. The cost code holder must approve the estimate to be included. What is meant by the Planned Timeframe? The proposed timeframe is the best estimate at the time of planning the tender. 10 P a g e

11 Who is the Contract Manager? The Contract manager is the person who will manage the contract for Cork City Council. It will typically be an employee of the Council but may not necessarily be. Planned Procurement approach In planning the procurement approach, Cork City Council s procurement policy which reflects all current regulations should be complied with. As a first step the Procurement Unit should be contracted to established if the goods/services are already available under an existing Cork City contract or if there a national contract / framework covering the requirement. In the latter case this could be a contract put in place for local government by Kerry County Council or centrally by the Office of Government Procurement. It is the policy of Cork City Council to use these contracts to reduce the level local resources required for procurement and to leverage the public sector buying power. Where it is proposed that another Council contract or national solution is not to be utilised then this will need the sign off of the Director of Service / Dept Head and the Head of Finance. Are thresholds inclusive or exclusive of Vat? It should be noted that all thresholds including EU are exclusive of Vat and apply to all cumulative purchases under a contract. What are the Office of Government Procurement Categories? All public sector expenditure has been grouped into 16 high level categories and procurement will be strategically managed on this basis. The categories are split into two separate groups, the first is being led by the OGP itself and the second group is led by individual sectors on behalf of the wider public sector. Group 1: The OGP led categories Professional Services Facilities Management and Maintenance Utilities ICT and Office Equipment Marketing, Print and Stationery Travel and HR Services Fleet and Plant Managed Services Group 2: Sector Led Categories Local Government o Minor Building Works & Civils o Plant Hire 11 P a g e

12 Health o Medical Professional Services o Medical and Diagnostic Equipment and Supplies o Medical, Surgical and Pharmaceutical Supplies Defence o Defence and Security Education o Veterinary and Agriculture o Laboratory, Diagnostics and Equipment What should the Annual Procurement Plan required to be submitted to the Procurement Unit include? Each Directorate plan their own procurement activity to meet their specific service delivery requirements, and their operational / capital programme objectives in a manner that takes into account the need, to comply with Public Procurement Regulations, to achieve value for money and optimise efficiency. Therefore Annual Procurement Plans will vary across different Directorates / Department of the organisation and rather than being prescriptive the following is a list of what would be expected across all Procurement Plans. List of tender activity planned during the next year. For 2015 the format of and information included in Data Return 55 would be a good starting point.. Identify those who are responsible for planned tenders and contracts that are currently in place List of any requirements / contracts that are currently not compliant and that are not included in the tender activity list for this year. Provide details of when it is planned to tender these requirements. List of all contracts currently in place with expiry dates 12 P a g e