Corporate Procurement Plan

Transcription

1 Corporate Procurement Plan

2 1. Policy Validity Statement 1.1 If this document has passed its review date (as shown above), this document may be invalid. The user must ensure that they are using the most current version of the document before relying on the contents of this document. 2. Purpose 2.1 The purpose of this policy is to ensure the QLS complies with the requirements of the State Procurement Policy and advancing the objectives contained therein. 3. Scope 3.1 The scope contains sections relating to: Purchasing objectives Environment Strategies for meeting purchasing objectives Performance measures The CEO is responsible for compliance with the State Procurement Policy and the elements of this procurement plan. Compliance is monitored by the QAO as part of their annual audit program. Procurement is managed via the Administration department which reports to the Director of Operations. This plan is prepared in conjunction with the strategic plan and covers a period of 4 years. The corporate procurement plan assists with the annual budget which ensures the strategic goals relating to financial performance are achievable. In particular, good procurement plans will assist in reducing costs which aids in minimizing membership fees and/or allows funds to be utilised to deliver greater member services. This policy applies to all QLS staff who are involved in the procurement of goods or services. 4. Policy 4.1 Objectives 4.2 The objectives of the procurement policy are based around: Achieving value for money Ensuring probity and accountability for outcomes Purchasing appropriate goods and services to satisfy QLS s requirements in the current year and the future To integrate (where possible) sustainability principles and practices into procurement processes In achieving these objectives, the QLS is committed to: Ensuring that competitive local business and industry is given a full, fair and reasonable opportunity to supply QLS To deal with suppliers which treat their employees fairly QLS will maximize the benefits of procurements based on an understanding of what we actually buy and what we plan to buy. Further analysis of our expenditure is contained in the Attachments Achieving value for money Value for money is not restricted to price alone; other factors to consider include: Fitness for purpose, quality, service and support, and sustainability considerations Cost related factors including whole of life costs and transactions costs associated with acquisition, use holding, maintenance and disposal Ensuring probity and accountability The QLS will conduct its business in a transparent manner which demonstrates probity and accountability. Procurement will be carried out giving consideration to other obligations as contained in relevant legislation from time to time (ie Financial Accountability Act 2009, Financial and Performance Management Standard 2009, and Financial Accountability Regulation 2009)

3 5. Operation and Risk 5.1 Procurement planning The QLS will perform an analysis of the purchasing patterns and supply markets. Planning will be performed at a corporate level and in relation to significant individual procurement projects. When analyzing procurement, two major factors influence any decision: The degree of business risk : how critical the goods or service is to the business or the extent to which a competitive supply market exists The expenditure for the goods or service The State Procurement Policy categorises purchases based on value and risk as follows: 1. Routine Low degree of business risk and low expenditure 2. Volume Low degree of business risk and high expenditure (either one off or in aggregate) 3. Specialised High degree of business risk and low expenditure 4. Critical High degree of business risk and high expenditure Procurement of goods and services in categories 2, 3 and 4 are significant purchases. To be classified above category 1, GLS have determined the following characteristics: Individual spend amount in excess of $50,000 Accumulation of spend (where multiple purchases) in excess of $100,000 Not related to salary & wages or on costs Not a statutory or council charge (ie rates) Not of a specialized nature As a result, the vast majority of QLS s expenditure has been classified as routine. 5.2 Each year an analysis of spend for the prior year will be completed in accordance with the above matrix. Items classified as 2, 3 or 4 should be covered by a significant procurement plan which must include (as a minimum): objectives to be achieved from the procurement how the procurement supports the business objectives analysis of internal demand for the procurement status of the supply market evaluate potential buying strategies measurements for evaluation of the implementation of the supply strategy 5.3 Are 3 quotes still required? There is no formal requirement in the State Procurement Policy to obtain quotes nor are there threshold values. Knowledge of the market may indicate that, for particular purchases, 1 or more quotes would be appropriate. The number (if greater than 1) of quotes is determined by how the purchase satisfies the objectives listed above.

4 6. Environment 6.1 Given the nature of purchases, the vast majority of expenditure is sourced from Queensland suppliers, which is consistent with the policy to use local suppliers provided the quality and price of the goods or services are consistent. 6.2 Purchases in the following categories are made by staff in the corporate services department: Printing and stationery Postage and courier Telephone There is a separate policy on travel and accommodation. Only authorized users may book travel and the use of our corporate travel agent is preferred where possible (refer to the travel & accommodation policy for further information). As many purchases are for specific departments, these departments are responsible for their own purchasing. The most significant purchases include: 6.3 Facilities All purchases in relation to building and maintenance costs Catering and functions 6.4 Office of General Counsel The purchase of legal advice where required 6.5 Finance The purchase of professional services where required (taxation, audit) 6.6 Human Resources The provision of recruitment services Training costs 6.7 Information Systems The provision of IT infrastructure, software, maintenance and consultancy services when required 6.8 CLE/Event Management Costs in relation to the running of events and seminars In the majority of these cases, the purchase requires specialist knowledge, making it impractical to centralise the process into the corporate services function. Departments may make other purchases where it is within their delegation limits as contained in the Financial Delegations Manual. 6.9 Purchases may be made by: Cash Credit Card Purchase order/invoice processing Provided the purchase falls within the Petty Cash guidelines Provided the purchase falls within guidelines contained in the Credit Card acceptable use policy Payment requisitions should be presented to finance along with purchase orders and invoices to allow for payments to be made. All requisitions are to be authorised in accordance with the Financial Delegations Manual.

5 Purchase approvals The authority to approve purchases has been made pursuant to council resolutions. Approved operating and capital purchases is in accordance with the Financial Delegations Manual. 7. Strategies and performance measures 7.1 Achieving value for money Strategy: Consider value for money from a whole of Government perspective Ensure that purchasing staff take into account both cost (whole of life and transaction costs) and non-cost related factors (quality, fitness for purpose etc) when assessing value for money Ensure purchasing staff are appropriately skilled in negotiating all aspects of a purchasing agreement Action Plan Assess purchasing staff skills and provide additional training and support if required. Ensure business cases include both cost and noncost factors where relevant. Seek opportunities for further integrating Reduce purchase costs by providing enhanced cost/usage information to divisional users (e.g. on the cost of travel, taxis, telephones, couriers etc) and negotiating improved volume discounts with suppliers Outcomes QLS s purchasing activities deliver the best return for the amount expended. Instructions to purchasing staff reflect the strategies outlined in this Plan and provide for continuous improvement in the purchasing function. Sound working relationships are established with suppliers in which both parties recognise the value in reducing the costs of supply and actively work towards this goal Performance Measures Level of experience and/or qualifications held by purchasing staff maintained or increased. Business cases for significant non-routine purchases include both cost and non-cost factors in their analyses. Price reductions achieved and/or price increases curtailed in real terms across the major categories of purchases. Cost centre managers provided with cost/usage reports for all relevant purchase categories. 7.2 ensuring probity and accountability for outcomes Strategy Develop and maintain an environment of professionalism in the purchasing function with recognition and support at a senior level. Promote an ethical, honest and fair dealing culture within QLS, particularly among staff involved in the purchasing function. Ensure that purchasing staff maintain an actual and perceived independence from suppliers at all times so as not to compromise the objectivity of purchase decisions Action Plan Ensure QLS s code of conduct addresses honest and ethical behaviour in purchasing. Train purchasing staff in appropriate purchasing practices including complaints handling procedures. Ensure all relevant review processes and approval delegations are clear and unambiguous. Develop a complaints handling process for the purchasing function Outcomes QLS s procurement processes reflect probity and accountability. Dealings with suppliers are fair, honest and open.

6 Purchasing staff understand and accept their responsibility to protect QLS s reputation. Training and instructions to purchasing staff provide them with sufficient support to conduct their duties appropriately Performance Measures All purchasing staff acknowledges their understanding and acceptance of QLS s code of conduct annually (or as determined appropriate). No formal complaints are recorded on purchasing actions. 7.3 Purchasing appropriate goods and services to satisfy QLS s requirements in the current year and the future Strategy Ensure that all purchasing staff maintains an up-to-date knowledge of current industry advances with respect to the goods and services they are purchasing. Build relationships with suppliers to enable them to assist QLS in the choice of appropriate goods and services while still maintaining arms length objectivity in supplier selection and monitoring processes. Ensure that buying strategies provide an opportunity for suppliers to suggest alternative options by which QLS s requirements may be met Action Plan Provide opportunities for purchasing staff to receive product information, attend new product releases, seminars etc in which industry advances are showcased. Frame requests to suppliers in terms of QLS s requirements to allow scope for innovative products and services to be tendered. Ensure that supplier selection and monitoring processes are objective and transparent. Require business cases to be prepared for significant non-routine purchases showing a consideration of available options and their appropriateness to meet current and expected future requirements Outcomes Purchases of goods and services satisfy QLS s requirements and maximise the benefits received for the monies spent. Current purchases take account of both QLS s short and longer term requirements. Mutually beneficial relationships are established with suppliers such that purchasing staff develop a better understanding of supply markets and suppliers have a sound knowledge of QLS s objectives and operating environment. Objective performance measures are established for supply agreements and used in regularly evaluating supplier performance Performance Measures Continued attendance by purchasing staff at seminars, road shows and demonstrations to showcase new products and industry advances. Existence of business cases to support significant non-routine purchases with estimated value >$25,000. Staff and suppliers satisfied with the specification documents written for major purchases (as measured during post implementation reviews). Existence of objective performance measures for evaluating ongoing supplier performance. Staff satisfied with the tools/resources given to them to perform their duties. 7.4 To integrate (where possible) sustainability principles and practices into procurement processes.

7 7.4.1 Strategy To protect the environment by doing business with ethical and socially responsible suppliers, and integrate sustainability into procurement of goods and services. To integrate the principles and practices of sustainability into the procurement of goods and services. To seek to improve the level of sustainable procurement within QLS. To set, measure and report on sustainable procurement targets that are aligned with the strategic and operational procurement objectives Action Plan Ensure that QLS purchasing staff are aware of current sustainable procurement practices. Set sustainability targets which align with the Corporate Procurement Plan and other sustainability requirements imposed both internally and externally Measure and report annually on the sustainability targets set Outcomes: A reasonable level of sustainable procurement is undertaken. QLS purchasing staff actively seek to procure sustainable goods and services Performance Measures: Set targets are achieved. Sustainable procurement is common practice for the procurement of goods and services. 8. Risk 8.1 Risk has been assessed above in section 2a by considering the overall business risk and expenditure. Items contained outside category 1 are subject to greater levels of control to minimise potential risks. 8.2 Internal Controls Expenditures are monitored on a monthly basis against budgets Significant expenditures require a significant procurement plan Regular purchases are subject to contractual arrangements 9. Procedure The procurement plan is to be reviewed in conjunction with the 4 year strategic plan. An annual review is to be performed to ensure compliance to the plan including monitoring and measurement of strategies. 10. Endorsement QLS is committed to this policy and its equitable implementation. For further information, please contact the Director of Operations.