Purchasing procedures - University of Central Lancashire

University of Central Lancashire
Purchasing procedures
Financial Services
Purchasing office – December 2011

Table of Contents
INTRODUCTON ........................................................................................ 2
PURCHASING PHILOSOPY .................................................................... 3
PURCHASING POLICY ........................................................................... 4
1 SERVICES ............................................................................................... 5
2 PRIMARY BUDGET HOLDER ............................................................. 6
3 AUTHORITY TO ORDER ..................................................................... 7
4 REQUEST TO PURCHASE ................................................................... 9
5 SELECTION OF POTENTIAL SUPPLIERS ....................................... 10
6 INVITATIONS TO TENDER / QUOTE .............................................. 11
7 EU PROCUREMENT LEGISLATION ................................................ 12
8 USE OF PURCHASE ORDERS ........................................................... 26
9 DEALING WITH SUPPLIERS ............................................................ 27
10 USE OF SPECIFICATIONS ............................................................... 28
11 CONTRACTS ...................................................................................... 30
12 PURCHASING CONSORTIUM ........................................................ 31
13 BUYERS GUIDE ................................................................................ 32
14 LEAD PURCHASER‟S GROUP ........................................................ 33
15 FINANCIAL HEALTH CHECKS ...................................................... 34
16 SUPPLIER APPRAISAL .................................................................... 35
17 APPROVED SUPPLIERS ................................................................... 36
18 PURCHASING CARDS ...................................................................... 37
19 CORPORATE CARDS ....................................................................... 53
20 NEGOTIATION BRIEFING NOTES ................................................. 70
21 PURCHASING GUIDANCE NOTES (when bidding for funds) ....... 73
22 CONSULTANCY ................................................................................ 75
23 PURCHASING FLOW CART ............................................................ 92
FINANCIAL SERVICES
PURCHASING OFFICE
DECEMBER 2011
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INTRODUCTON
The purpose of these procedures is to advise and assist those staff within the
University who undertake purchasing duties as part of their overall responsibilities.
The Purchasing Office is part of Financial Services and its primary purposes are to
formulate Purchasing Policy, co-ordinate purchasing activities within the University
and to provide professional purchasing advice and assistance to all parts of the
University Group. A more detailed description of the role of the Purchasing Office
can be found under the Service Standards section of these procedures.
All purchasing procedures are derived from the Purchasing Policy of the University
and the Policy Statement now forms part of the Financial Regulations of the
University Group.
To assist with the location of Purchasing Policies within the regulations of the
University Group the following details are supplied:
Financial Regulations
The Financial Regulations of the University Group establishes approved practices
governing the purchasing process (see paragraphs 701-719 of the Regulations). The
Purchasing Procedures cover the operational detail and standard documentation which
implement the Financial Regulations.
Purchasing Policy
Appendix A-5 of the Financial Regulations sets out the University's approved
Purchasing Policy.
Tendering Procedure
Appendix A-8 of the Financial Regulations sets out the University's procedures for
purchases valued in excess of £50,000.
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PURCHASING PHILOSOPY
The University aims to establish an effective and efficient organisational structure for all its
purchasing activities to ensure the promotion and achievement of value for money.
The established organisational structure seeks to secure the management advantage of devolved
budgets and decentralised purchasing with arrangements to secure best price, to promulgate good
practice in purchasing and ensure co-ordination of all buying activity across departments.
To achieve these aims, the University has developed a central Purchasing Office responsible for the
development of a purchasing strategy, the implementation of good purchasing practice, and the
provision of professional purchasing advice across the University.
Within each School and Service, the University has implemented the role of 'Lead Purchasers' to
focus the purchasing activities and to develop a common approach to purchasing. Lead Purchasers
are assisted by the central Purchasing Office in areas such as contract compliance, purchasing
procedures, the formulation of a Buyer‟s Guide and the negotiation of standard item goods/services
for use across all faculties and services.
Senior management of the University is concerned with the achievement of a comprehensive and
consistent overview of the University's purchasing and supply policies and activities, including
training and the application of professional purchasing skills to achieve value for money.
The purchasing philosophy underpins the purchasing policy of the University, and the
implementation of the policy is detailed in the following procedure notes.
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PURCHASING POLICY
The University's Views on Purchasing
The University seeks to ensure that its operational activities are consistent with, and supportive of,
the Mission Statement and its associated values and aims, and are consistent with the policy stances
taken by the institution on equal opportunities, regional affairs and environmental issues. The
University, therefore, wishes to ensure that the process of the purchasing of goods for the
University is sensitive to environmental factors, that it shows commitment to the region by,
wherever possible, procuring goods from local firms, and that it facilitates equality of opportunity
through contract compliance measures. These principles of purchasing will only be adopted,
however, where value for money can be achieved.
Policy Statement on Purchasing
The University's Purchasing Policy is derived from the Mission Statement and associated values
and aims. The Purchasing Policy will also operate within the wider framework of the Financial
Regulations and legislative requirements.
The Purchasing Policy is as follows: -
1. The University will seek to achieve value for money in all purchases.
2. Environmentally friendlier products will be purchased, wherever possible.
3. Wherever possible, the University will not deal with companies who are known to operate
discriminatory practices. All University contracts will include a clause upon which contract
compliance will be sought.
4. Subject to European directives, products will normally be purchased within the North West
of England and, wherever possible, in Lancashire and Cumbria.
5. Goods and Services will be purchased from within approved contracts and ranges where
available.
6. Purchasing will be on the basis of "just-in-time" to prevent unnecessarily large levels of
stock being maintained.
Principles of Implementation
All contracts for standard items and environmentally friendlier products (as defined in the
purchasing procedures) will be negotiated by the Head of Purchasing. Major items and group
purchases (as defined in the purchasing procedures) will be technically specified by the specialist
staff, and the Head of Purchasing will undertake all contract negotiations.
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PURCHASING PROCEDURES
1 SERVICES
The role of the Purchasing Office within the University is to formulate Purchasing Policy, coordinate
purchasing activities within the University, provide professional purchasing and insurance
advice and assistance to all parts of the University Group.
In general, the Purchasing Office shall be responsible for the following on behalf of the University
Group:
Central Role - The Purchasing Office has a responsibility for all major purchases of
non-pay expenditure, including Capital.
Contract Development - Commodity Research; Contract Strategy; Supplier Appraisal; Contract
Reviews; Supplier Management.
Tender Process - Production and issue of documents; Supplier Appraisal; Commercial Evaluation;
Contract Award.
Operational Issues - Professional Purchasing advice and guidance relating to: acquisition of goods
and services; assistance with compilation of Specifications; obtaining quotations; commercial
negotiations; sourcing of Suppliers and commodities.
For further information about the services provided by the Purchasing Office and specific detail
relating to standards and time scales, please refer to the Service Standards for Purchasing Office on
the Purchasing Office web site Purchasing service standards.
Environmentally friendlier products are those products and services, which are generally
recognised as providing a positive environmental performance and contribute to achievement of the
University‟s Sustainable Development Strategy. In recommending the adoption of these products
or services to the University's Environment and Sustainable Development Steering Group, the
Purchasing Office will ensure that value for money issues are addressed. Following approval, the
products will appear in the Buyers Guide.
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2 PRIMARY BUDGET HOLDER
PURCHASING PROCEDURES
The Financial Regulations of the University Group (see paragraphs 501 - 516) detail budget policy
and budgetary control.
Primary Budget Holders are defined as persons to whom budget responsibility has been delegated
by the University Board or by the Vice-Chancellor.
Primary Budget Holders are authorised to approve expenditure, ensuring:
- the goods and/or services are necessary and the expenditure which will be incurred can
be contained within that part of the budget for which they are responsible;
- established contracts or supply arrangements as contained in the Buyers Guide are
utilised wherever possible;
- where alternatives are available, the purchase represents economy (using the whole life
costing method) and operational efficiency, and the advice of the Purchasing Office has
been sought where necessary;
- action is taken on incorrect or poor quality deliveries and/or services, and that the
Purchasing Office is advised of such instances;
- the correct purchasing route has been taken in accordance with the specified purchasing
limits, (see paragraph 702 of Financial Regulations).
Secondary Budget Holders are defined as persons to whom budget responsibility has been delegated
by a Primary Budget Holder.
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3 AUTHORITY TO ORDER
PURCHASING PROCEDURES
The responsibilities and authority of Primary and Secondary Budget Holders are defined in
Financial Regulations.
Purchase Orders to be issued for any goods or services necessary may be authorised by a Budget
Holder with the following exceptions:
- The Supplier attempts to impose terms and conditions which conflict
with the University's Standard Conditions (especially payment
terms); only the Head of Purchasing, as nominee of the Group
Executive Director of Finance, may vary the Standard Conditions
under which the University trades;
- The single or cumulative value is in excess of £5,000 and three
quotations have not been obtained;
- The single or cumulative value is in excess of £50,000 and has not
been subject to the Tendering procedure;
- The purchase is for IT equipment: this necessitates additional
authorisation by the Head of LIS
If there are any doubts or concerns with regard to the authority necessary to make a particular
purchase, please do not hesitate to contact the Purchasing Office for advice and assistance.
Summary of Purchasing Limits
Financial Regulations establish a Purchasing Limit of £5,001 - £50,000 where the requirement is for
3 written quotations (i.e. formal offers with fixed pricing). Purchasing Office involvement may be
sought within this limit to assist in this process.
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Value of Order/Contract
(Exclusive of VAT)
Purchasing requirements
Up to and including£5,000
Where possible, written quotation,
otherwise estimated price (can include
published or catalogue pricing)
£5,001 - £50,000 Minimum of 3 written quotations
£50,001 - £173,000 Minimum of 4 Tenders
More than £173,000 EU Tender procedure
Design and Build Contracts
Maximum of 4 Tenders
Low Value Orders
The process of issuing Purchase Orders has a significant administrative resource cost (time spent in
raising order, actioning copies, processing invoice, processing cheque, impact on finance system,
etc.). Therefore, for low value purchases, the University purchasing card should normally be
utilised.
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4 REQUEST TO PURCHASE
PURCHASING PROCEDURES
The Buyers Guide details all supply arrangements currently in force and will be regularly updated
by the Purchasing Office. Where goods/services are required which are not referred to in the Guide
and have a value (singly or cumulatively) of between £5,000 and £50,000 (exclusive of VAT), then
the Purchasing Office can assist in the acquisition process. A Purchasing Request Form may be
completed and sent to the Purchasing Office for action to facilitate this. The Purchasing Request is
purely an internal document and must not be transmitted to Suppliers as an intention to purchase.
Alternatively, an email request may be sent containing all information detailed below.
When completing a Purchasing Request Form (available on the Purchasing Office web site) or
submitting an email request, the following details must be provided:
- Quantity and description of the goods/services required, including any technical
specifications or recognised Standards;
- Potential and/or preferred Suppliers;
- Estimated and/or maximum (budget) cost;
- Details (or attached copies) of any informal quotations obtained;
- Full delivery requirements - date (or period)/location/recipient;
- Authorised Budget Holder's signature.
From receipt of a fully completed Purchase Request Form / email, the Purchasing Office will
(within the time scales defined in Service Standards):
- Advise whether a supply arrangement already exists;
- Aggregate the request with requests from other Departments and Services as
appropriate;
- Source quotations/information from Suppliers and make recommendations for purchase
to the budget holder;
- If unable to locate minimum number of Suppliers, advise the budget holder to submit a
waiver request to the Head of Purchasing
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PURCHASING PROCEDURES
5 SELECTION OF POTENTIAL SUPPLIERS
In line with good purchasing practice, the University needs constantly to monitor and limit its
established Supplier base in order to minimise administration resource costs and maximise bulk
purchasing power.
Details of existing supply agreements are listed on the Purchasing Office website under the Buyers
Guide. This is constantly updated as contracts are renewed and new contracts are established.
All suppliers must be set up on Agresso before purchases can be made (see section 18) unless the
University Purchasing Card is being used to place the order.
During Quotation or Tender exercises, user Departments may recommend Suppliers to the
Purchasing Office for technical reasons. There is no guarantee that such Suppliers will be successful
or acceptable once the Purchasing Office has undertaken a commercial evaluation. Where strong
technical recommendations prove commercially unsound, the Purchasing Office will liaise with the
User Department to reach an acceptable solution.
The Head of Purchasing will evaluate the level of input for the University necessary to balance the
costs of obtaining further quotations against the likely benefits or value for money issues. The
Head of Purchasing will make recommendations, where necessary, to the Group Executive Director
of Finance.
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PURCHASING PROCEDURES
6 INVITATIONS TO TENDER / QUOTE
The University will seek to achieve value for money in all purchases.
Tenders
Any single or cumulative (over any 12 month period) purchase likely to be in excess of £50,000
(excluding VAT) may be subject to the University's formal Tendering Procedure. The Head of
Purchasing will make recommendations to the Group Executive Director of Finance regarding any
necessary Contract Strategy.
A copy of the Tendering Procedure may be obtained from the Purchasing Office website
In order to commence the Tendering process, a standard Tender Request Form should be completed
and forwarded (with Specification etc.) to the Purchasing Office. A copy of the Form may be
obtained from the Purchasing Office.
Quotations
It is recognised that for most purchases of goods or services below £5,000 (excluding VAT), it is
unlikely that the purchaser within the department will require specialist or professional purchasing
input. Quotations for these purchases are still likely to generate savings for the purchaser.
Standard Conditions have been developed (please refer to the website - Terms and conditions)
which will apply to all purchases made by the University, thereby reducing commercial risk in the
procurement process.
Where it is intended to make a purchase from a Supplier not set up on Agresso, the procedure
outlined in Approved Suppliers must be followed before issuing a Purchase Order.
For purchases, which are greater than £5,000 in value (over any 12 month period ) but below the
Tendering threshold, a Purchasing Request Form or email detailing requirements should be created
if the Purchasing Office is to be involved in obtaining quotations. Quotations may be obtained by
departments but must then be forwarded to the Purchasing Office for confirmation / clarification.
A standard request for Quote form is available from the Purchasing Office website to ensure that
suppliers are complying with the University‟s standard terms and conditions. This form must be
used for all quotations regardless of value to ensure suppliers comply with the University‟s standard
terms and conditions.
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PURCHASING PROCEDURES
7 EU PROCUREMENT LEGISLATION
INTRODUCTION
The primary function of the European public procurement legislation is to open each Member
States‟s public sector purchasing to intra-community competition. The legislation is founded on
two main principles of non-discrimination (i.e. that a potential, or actual, tenderer is not
discriminated against because of their nationality) and transparency (i.e. that the contract awarded
is openly advertised and awarded using objective procedures that will withstand scrutiny. These
principles are fully compatible with the UK government‟s policy which is that the public sector‟s
purchasing decisions should be based on value for money achieved through open competition.
The legislation which impacts upon the purchasing practices of UK public sector bodies was
originally enacted via three distinct Statutory Instruments in the early- to mid-1990s, but all three
have now been superseded by a „consolidated‟ European Directive which was introduced into UK
law on 31 January 2006 (Public Contracts Regulations 2006, Statutory Instrument No.5).
The 1990s Regulations placed a responsibility on public sector contracting authorities (which
includes universities) to advertise certain types of contract above pre-determined values in the
Official Journal of the European Union (OJEU), and thereafter deal with the tendering and award of
such contracts using a pre-determined set of procedures and practices. The 2006 legislation
incorporates and refines most of the principles and practices described in the earlier Regulations,
whilst broadening the scope of the legislation to cover novel or hitherto less-regulated areas of
public procurement, in particular environmental issues, electronic tendering, electronic auctions and
framework agreements.
The Head of Purchasing is responsible for guidance in ensuring that the University complies with
its legal obligations concerning EU Procurement legislation. All departments and sections of the
University are required to co-operate fully by notifying the Head of Purchasing of any purchases
likely to exceed the appropriate threshold under any of the above Directives. All purchases under
the Works Directives must be notified to the Director of Facilities Management.
1 DEFINITIONS
1.1 Public Supply Contracts
A public supply contract is one for the purchase, lease, rental or hire purchase, with or
without option to buy, of products. It includes siting and installation of the products where
these are part of the main purchase.
1.2 Public Services Contracts
A public service contract is one where the purchaser engages a contractor (the service
provider) to provide services. There are two categories of services - Part A (to which the
Services Regulations apply in full) and Part B (where the tender is only subject to some of
the requirements in the Regulations, namely rules regarding technical specifications and the
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publication of contract award notices). Parts A and B appear as lists in annexes to the
Directive. If a contract includes both products and services, the element which has the
highest value determines whether it is to be treated as a public supply contract or public
service contract.
1.3 Design contests
Design contests are procedures for obtaining plans or designs which are intended to lead to
the award of a public service contract, often including the offer of a prize or payment to the
participants. The value of the contest for the purposes of assessing whether it exceeds the
threshold is the value of the resultant public services contract plus the value of the prize.
1.4 Public Works Contracts
A public works contract is one for the execution, or design and execution, of civil
engineering or building works. A list of these works appears as an annex to the legislation.
The list is surprisingly wide-ranging; including such activities as demolition work, test
drilling, plumbing, wiring, installation of fixtures and fittings, painting and wallpapering and
renting of construction or demolition equipment with an operator. Where the contract
involves supplies and/or services as well as works, it should be classified according to its
predominant purpose.
A public works concession is a contract where the consideration (payment) for the works is
wholly or partly the granting of a right to exploit the works.
Subsidised works contracts are works contracts to which public authorities (which includes
universities) contribute more than 50% of the cost. Even though the contract might be
awarded by a private sector body, the public authority must ensure that the Regulations are
complied with. Note that the threshold value applies to the total contract value, not the
value of the subsidy.
1.5 Framework Agreements
A framework agreement can be made with one or more than two suppliers. Its purpose is
to establish the terms governing multiple purchases to be made over a particular period.
Special rules apply to the formation and operation of framework agreements; these are
described in more detail below.
1.6 An electronic auction can be used after full evaluation of initial tenders, where final bids are
ranked automatically, usually on the basis of price. The process is unsuitable for many
services and works contracts. Specialised software is required to undertake electronic
auctions, and there are special EU rules governing their conduct which are outside the scope
of these procedures.
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2 VALUATION OF A CONTRACT
The proposed tender will fall within the Regulations if its estimated value is greater than the
prescribed thresholds. These have been summarised in Table 1 below.
The Regulations provide guidance on how to estimate the value of proposed tenders. If,
after calculation, the value of the contract exceeds the appropriate thresholds, it will fall
within the scope of the Regulations. The method of calculation used depends upon the type
of purchase to be undertaken.
Regulations Threshold European Threshold Equivalent UK *
Supply Contracts 200,000 Euros £173,934
Service Contracts 200,000 Euros £173,934
Works Contracts
Inc. Subsidised Works
Contracts
5,000,000 Euros £4,348,350
* Calculated 1 January 2012, revised every 2 years
Table 1:
Relevant Thresholds for Public Procurement Regulations
(VAT and Insurance Premium Tax are excluded)
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2.1 Public Supply and Public Service Contracts
2.1.1 If the contract is for a “one-off” purchase, estimate the total value including all component
parts, transport costs, installation and commissioning.
2.1.2 The value of a series of contracts, or repeat orders, for the same or similar products, should
be estimated over a reasonable period (e.g. expected length of requirement.) This can be
either historically or in the future. Note, however, that requirements cannot be
disaggregated in order to avoid the Regulations.
2.1.3 Fixed term contracts for services or for the lease, rental or hire purchase of products should
be estimated for the duration of the contract. Where the contract is part of a series, the
whole series should be estimated over a 12 month period or longer, if appropriate. If a
contract is for a fixed period, say one year, but has an option to extend for up to two
additional years, then regardless of whether or not there is uncertainty about exercising the
extension option, the duration has to be taken as 3 years (the maximum duration in this
example) when estimating its value.
2.1.4 If a contract, or series of contracts, for services is for an indefinite or uncertain period, or the
total price is not known but the contract period exceeds 48 months, then its total value
should be calculated by multiplying the estimated monthly value by 48.
Note: Where the proposed contract includes more than one of the above elements, the
value must be determined by calculating the highest possible value.
2.2 Specific types of Public Service Contract
For the following types of services, the values to taken as a basis for calculating the
estimated contract values are:
- insurance services: the premium payable and other forms of remuneration;
- banking and other financial services: the fees, commissions, interest and other forms
of remuneration;
- design contracts: fees, commission payable and other forms of remuneration.
2.3 Public Works Contracts
2.3.1 Estimate the value of the whole works contract.
2.3.2 Where the contract is part of a series necessary to carry out a project, it is the total value of
the aggregated contracts, which will determine if the contract falls within the scope of the
Regulations.
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2.4 Waivers for „Small Lots‟
For Public Supply, Service and Works purchases where the contracts are awarded at the
same time in the form of separate lots, it is the aggregated value of the lots which will
determine whether the Regulations apply. However, application of the threshold can be
waived in respect of lots below the Small Lots thresholds identified in the above table,
provided that the aggregate value of those lots does not exceed 20% of the value of the
overall aggregate value of the lots as a whole.
Example: Public supply contracts for a particular commodity will be let in five lots: three of
an estimated £20,000 each and two of £130,000 each. Thus the aggregate value of the
contracts is £320,000 which clearly exceeds the EU threshold. However, each of the three
small contracts falls below the Small Lots threshold. In aggregate, they comprise slightly
less than 20% of the overall value of the five lots (18.75% to be precise). Therefore the
three small contracts are not subject to the EU tendering process. The two larger lots still
collectively exceed the threshold, and must therefore be subjected to an EU tendering
process.
Note: Where the proposed contract includes more than one of the above elements,
the value must be determined by calculating the highest possible value.
3 SPECIFIC EXCLUSIONS
Contracts for the following types of purchase are excluded from the procedures:
a) Land, existing buildings or other immovable property or rights thereon. However,
financial services associated with the acquisition are subject to the procedures.
b) Programme material for broadcast, and contracts for broadcasting time.
c) Arbitration and conciliation services.
d) Transactions relating to securities or other financial instruments (particularly where
these are to raise capital), and central bank services.
e) Employment contracts.
f) Research and development services, providing the service is wholly paid for by UCLan.
However, where the benefits accrue exclusively to UCLan for use in its own affairs,
the EU procedures do apply.
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4 TENDERING PROCEDURES
Tenders may be sought by one of four procedures: Open, Restricted, Negotiated or
Competitive Dialogue. Open and Restricted are by far the most commonly-used procedures.
4.1 Open Procedure
A notice is published in the OJEU stating that tenders will be sought under the Open
Procedure. All potential suppliers requesting tender documentation by the deadline stated in
the notice must be sent the documentation within 6 days of their request. Alternatively the
documentation can be made available to all interested suppliers on the internet. The
advantage of the Open Procedure over the Restricted Procedure is that minimum timescales
are shorter. However, if there are a large number of potential suppliers in the marketplace,
use of the Open Procedure can result in a large number of tender submissions, which in turn
increases the assessment workload. One way of attempting to control the number of tenders
is to stipulate minimum levels of economic and financial standing or technical/professional
ability in the contract notice. Care must be taken to ensure that the minimum levels are
related to and proportionate to the subject matter of the contract, and that the levels used do
not exclude smaller companies unreasonably.
4.2 Restricted Procedure
A notice is published in the OJEU stating that tenders will be sought under the Restricted
Procedure. Firms communicate, in response to the notice, their interest in tendering for the
contract. The contracting authority, using criteria stated in the notice (e.g. legality to
operate, financial and economic standing, and technical/professional ability) which must be
drawn from a list provided in the legislation, selects firms who will be invited to submit a
tender.
It is permitted to state the number of firms the contracting authority intends to invite to
tender, sometimes expressed as a range. This is the main advantage of the Restricted
Procedure over the Open Procedure, since it restricts the number of tenders and
consequently reduces the amount of effort required to evaluate them. The range must be
stated in the contract notice and in any event the minimum number permissible is 5. If the
number of eligible respondents falls below 5, the process may continue, providing there is
still genuine competition. However no “new” candidates can be introduced at this stage and
the selection criteria cannot be artificially relaxed to allow more firms to pass to the tender
submission stage.
The criteria stated in the notice cannot deviate from those set out in the legislation. Thus it
can often be very difficult to differentiate suppliers so that enough of them can be eliminated
at the first (often called the „prequalification‟) stage even after minimum levels of economic
and financial standing or technical/professional ability have been stipulated. Any exclusion
of a supplier at this point must be fully justifiable in terms of its failure to match the
selection criteria stated in the original contract notice.
If there is likely to be a large number of applications from interested firms, great care must
be taken to develop a prequalification questionnaire that has the desired effect of being able
to be used effectively and fairly to differentiate the firms‟ capabilities, so that only the
required number of firms passes through to the tendering stage.
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4.3 Negotiated Procedure
Under the Negotiated Procedure the terms of the contract are negotiated directly with one or
more suppliers. However, the procedure can only be used in the specific instances described
below. Moreover, the Office of Government Commerce advises that use of the Negotiated
procedure is likely to decline as the Competitive Dialogue procedure becomes more widely
accepted.
It is NOT mandatory to advertise the Negotiated tender in the OJEU unless specifically
stated to the contrary below. It is permissible for the Negotiated Procedure to take place
in successive stages to gradually reduce the number of tenders, providing the contract notice
or specification states that this is the intention.
4.3.1 For public works, public supplies and public service contracts:
a) Tenders received under a previous competitive exercise held under the Open, Restricted
or Competitive Dialogue procedures have been irregular, or unacceptable. The
proposed terms of the contract must be substantially unaltered from those originally
used. The resultant tender must be advertised in the OJEU, giving the reasons for use
of the Negotiated Procedure.
Note: If all of the participants in the Open or Restricted exercise are invited to
negotiate then there is no need to advertise the use of the Negotiated procedure.
However, if one or more of the participants from the earlier tender exercise who
submitted tenders is rejected, then the use of the Negotiated procedure must be
advertised in the OJEU. In both instances, the terms of the Negotiated tender must be
substantially unchanged from the original exercise undertaken under the Open or
Restricted procedure.
b) A competitive exercise held under the Open or Restricted procedure has resulted in no
applications or tenders, or unsuitable tenders.
c) There is only one supplier available for technical or artistic reasons or on account of
exclusive rights.
d) Extreme urgency exists for reasons that are unforeseeable and are not attributable to
the contracting authority.
e) In exceptional cases where the nature of the works, supplies or services or the risks do
not permit overall pricing, the Negotiated tender must be advertised in the OJEU.
4.3.2 For public supply contracts:
a) The goods covered by the contract are to be manufactured purely for the purpose of
research, experiment, study and development; but not when the goods are to be
purchased or hired to establish their commercial viability or to recover their research
and development costs.
b) The goods covered by the contract are partial replacements for, or additional to, existing
goods or an installation, or when obtaining the goods from another source would cause
problems of incompatibility or disproportionate technical difficulties. Such extensions
may not, as a general rule, be for more than three years.
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c) The goods are purchased on a commodity market.
d) The goods are being purchased on particularly advantageous terms because the supplier
is being wound up, is bankrupt or in receivership.
4.3.3 For public service contracts:
a) Where the contract follows a design contest and there is more than one successful
candidate. (Note that the Negotiated procedure cannot be used for a Works contract in
this manner.)
b) For insurance, banking and investment contracts, and intellectual services such as the
design of works, but only if the activities cannot be defined well enough for the Open
or Restricted Procedures to be used. The tender must be advertised in the OJEU.
4.3.4 For public works contracts:
Where the works are to be carried out solely for the purposes of research, testing or
development and not with the aim of ensuring profitability or recovering research and
development costs. The tender must be advertised in the OJEU.
4.3.5 For public works and public service contracts:
a) Additional works or services not included in the original contract where the need has
arisen through unforeseen circumstances, and where they cannot be technically or
economically separated from the original contract without major inconvenience to the
contracting authority, or where they are necessary for completion of the contract.
However, the Negotiated procedure cannot be used where the aggregate value of the
additional works or services exceeds 50% of the value of the original contract.
b) Where new works and services which repeat the initial contract are being carried out
by the same supplier, providing the original contract was awarded through the Open or
Restricted Procedure, and the original advertisement mentioned the possibility of
additional requirements. However this procedure may only be used during the three
years following the end of the original contract.
Note: A contract award notice must be published for every case where the Negotiated Procedure is
used regardless of whether the tender exercise was advertised or not. It is advisable to hold a report
on file should information be requested by HM Treasury on behalf of the European Commission.
4.4 Competitive Dialogue Procedure
This procedure is suitable only for particularly complex contracts, for example Public
Private Partnership (Private Finance Initiative) contracts where the contracting authority is
unable to specify its requirements at the outset without entering into detailed discussions
with potential suppliers. The aim of the discussions is to identify and compare possible
solutions before requesting final tenders.
A contract notice must be published in the OJEU setting out the needs and requirements of
the contracting authority. A dialogue may then commence between the contracting
19 | 9 2

authority and suitable candidates in which all aspects of the contract can be discussed. Care
must be taken to ensure that all candidates are treated equally. From a practical point of
view, this can best be demonstrated by keeping a detailed record written record of all
discussions which is then signed off by both the Supplier and the University.
When the contracting authority has identified a suitable solution or solutions, it declares that
the dialogue is concluded and requests that tenders be submitted. It is important that the
request and the resultant tenders are as comprehensive as possible because the scope for
post-tender negotiation is even more limited than in the Open and Restricted procedures
(such negotiations having already taken place in the dialogue phase).
4.5 Choice of Procedure
Under the Regulations, universities have a free choice between the Open and Restricted
procedures.
Use of the Negotiated or Competitive Dialogue procedure is unusual, and is more likely to
invite the scrutiny of the European Commission than the other procedures. Where it is
agreed that the Negotiated or Competitive Dialogue procedure can be used, the contracting
authority must justify its choice and take great care to ensure that the reasons are properly
documented.
5 FRAMEWORK AGREEMENTS
Framework agreements set out the terms and conditions under which specific purchases
(„call-offs‟) are made over a pre-determined period of time. They are particularly useful for
creating a panel of several approved suppliers who then compete with each other for each
„call-off‟.
Framework agreements can be made either with one supplier or with a panel of at least three
suppliers, and must not exceed four years‟ duration unless there are exceptional
circumstances. The suppliers are appointed through a tendering process, usually following
the Open or Restricted procedure.
Where there is one supplier, the contracting authority should ask the supplier to provide
specific prices or terms for „call-off‟ orders within the parameters set out in the original
Framework agreement.
It is more usual for Framework agreements to have a panel of three or more suppliers. In
some cases it is a straightforward task to determine which of the suppliers should win the
„call-off‟; for example, where all of the suppliers on the panel have fixed price lists or there
is pre-agreed mechanism for calculating prices for comparable items. Here, the contracting
authority would simply compare the prices and select the lowest without re-opening
competition. In cases where the task is not so clear-cut, a process of „mini-competition‟ is
undertaken whereby the contracting authority issues a statement of requirements to all of the
suppliers on the panel capable of undertaking the task. These proposals are then evaluated
in accordance with the criteria set out in the original Framework tender.
20 | 9 2

6 TIMESCALES
In each of the procedures, there are timescales laid down regarding publication of notices,
invitations to tender, receipt of tender submissions etc. These timescales vary with the
procedure used and are summarised in Table 2 below.
The publication of a Prior Information Notice (PIN) enables the time periods for the Open
and Restricted procedures to be shortened. The PIN is intended to give potential suppliers a
brief overview of the forthcoming tender requirement. The PIN is only permissible as a
means of shortening timescales if it is sent for publication between 52 days and 12 months
before the date the actual contract notice is sent.
In cases of extreme urgency it is possible to use accelerated Restricted or Negotiated
procedures. The circumstances under which the shortened time periods can be used are
strictly defined and must be justifiable. The cause of the „extreme urgency‟ must be outside
the contracting authority‟s control. For example, having to spend funds before a specific
date would not be considered an appropriate reason.
Where a contract is voluntarily advertised, i.e. where it is not expressly covered by the
requirements of the Directives or Regulations, then the timescale requirements are not
binding in relation to the tender procedures. Thus, it may be beneficial for a contracting
authority to give wider exposure to its requirements by choosing to use the European forum
even where not absolutely necessary.
Table 2:
Summary of prescribed time periods
Procedure Phase Days
Open
Restricted
Restricted
Accelerated
Competitive
Dialogue and
Negotiated
Minimum time for receipt of tenders from
date contract notice sent
Reduced when PIN published to, generally
But never less than
Minimum time for receipt of requests to
participate from date contract notice sent
( reduced by 7 days for electronic system)
Minimum time for receipt of tenders from the
date invitation sent
( reduced by 5 days for electronic system)
Reduced when PIN published to, generally
But never less than
Minimum time for requests to participate
from date contract notice sent
Minimum time for receipt of tenders from the
date invitation sent
Minimum time for receipt of requests to
participate from date contract notice sent
Negotiated Minimum time for receipt of requests to 15
45
36
22
30
35
36
22
15
10
37
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Accelerated
participate from date contract notice sent
Notes:
a) The time period starts on the day the notice is despatched to the OJEU, not the date
when it is actually published. If the last day is a Saturday, Sunday or public holiday
then the receipt or closing date will be the first ordinary working day thereafter.
b) PIN = Prior Information Notice.
7 CONTRACT DOCUMENTATION
Once the contracting authority has established that the proposed contract falls within the
remit of one of the Regulations, and has selected which procedure to use, the contract must
be advertised and documentation prepared, paying special attention to the technical
specification and selection criteria.
7.1 Advertising Requirements
The Open, Restricted and, where applicable, Negotiated procedures require that the
contracting authority places a notice in the OJEU, stating its intention to seek offers in
respect of the perceived need. The notice must take into account the timescales detailed in
Table 2 above.
It is important that the maximum anticipated duration of the contract is stated in the notice.
For example, if the expected duration is 3 years but there is a possibility that it could be
extended to 5 years, then state “up to 5 years” in the notice. The circumstances under which
a contract extension might be granted can then be described with more precision in the
invitation to tender document.
The contracting authority cannot advertise the contract in its local or national press
before the notice has been despatched to the OJEU. The advertisement must not contain any
more information than is contained in the OJEU notice.
7.2 Technical Specifications
When preparing the documentation it is necessary to ensure that the specifications for the
product are non-discriminatory. In particular, the specification must not be based upon the
specification of an existing product from one supplier. This would be in breach of the
regulations and is likely to invite challenges from other suppliers. If the requirement can
only be expressed by reference to a brand or proprietary name, then the name must be
accompanied by the words “or equivalent”.
The technical specification should be defined by reference to European specifications where
they exist, in the following order of preference:
a. National standards incorporating European standards
b. European technical approvals
c. Common technical specifications, e.g. Electromagnetic Compatibility
d. International standards
22 | 9 2

e. Other technical reference systems established by the European standardization
bodies
Only where none of the above standards exist is it appropriate to refer to national standards.
All references must be accompanied by the words “or equivalent”.
There are, however, instances where it is permissible to derogate from the prescribed
hierarchy of specifications. Again, like other exceptions, these are clearly defined in the
Regulations, for example, where there exists a statutory duty in relation to health and safety;
technical reasons of conformance; incompatibility or disproportionate technical differences
or disproportionate costs; or innovative reasons.
Technical specifications may define environmental characteristics, e.g. production method
and/or environmental impact. Methods of defining environmental impact must be drawn up
using scientific criteria that are accessible and understandable to all parties. For works and
services, information about the supplier‟s technical ability with regard to environmental
management measures may be requested, but only if is appropriate. The standards indicated
in the tender documentation must always be EU standards or equivalent.
8 SUPPLIER SELECTION CRITERIA
Potential tenderers may be excluded from tendering if they do not meet prescribed criteria,
which should be designed to determine their economic and financial standing and their
capability of fulfilling the requirements of the contract. These criteria must be stated in the
notice published in the OJEU and/or in the contract documentation.
A firm may be ineligible if, for example, it is found to be in financial difficulty, or guilty of
misconduct. It may be asked to provide details of its financial standing, and its technical
capacity. The contracting authority may select which criteria it considers appropriate in
relation to economic and financial standing or technical capacity.
If a company marginally fails to meet one or more of the criteria, then a second opinion may
be sought from a third party credit-referencing agency. If the rating given by the agency
defines the company as low to medium risk, then a decision can be made to let the company
proceed to the next phase of the tender process. If however the rating is high risk then the
company should not proceed any further.
Standards may be waived by the Group Executive Director of Finance (or nominee).
Any selection/shortlisting exercises must be even-handed, consistent with stated criteria and
must not discriminate on grounds of nationality or geographical location.
9 CONTRACT AWARD
9.1 Award Criteria
Having ascertained the suitability of the tenderers, the contracting authority must award the
contract to the submission which:
offers the lowest price, or
23 | 9 2

is most economically advantageous to the contracting authority – in addition to price, this
includes factors like quality, technical merit, aesthetic and functional characteristics,
environmental characteristics, running costs, cost-effectiveness, after-sales service and
technical assistance, delivery date and delivery period or period of completion.
In most cases it would be extremely unwise to award the contract on the basis of price alone
without giving any consideration to other factors.
The award criteria must be listed in the contract notice and/or in the invitation to tender
document. The relative weighting given to each criterion must also be stated. This can be
expressed in terms of a range with an appropriate maximum spread. These criteria and
weightings must be used in the tender evaluation; they cannot be altered after publication.
9.2 Abnormally Low Tenders
Tenders may be rejected if they are abnormally low but only after the tenderer has been
given an opportunity to justify/confirm or withdraw the offer submitted.
10 NOTIFICATION OF CONTRACT AWARD
10.1 Contract Award Notice
The contracting authority must publish a contract award notice in the OJEU within 48 days
of the contract award or establishment of a framework agreement. This requirement also
applies to categories of public service contracts covered by Part B (see section 1.2 above). It
is important to observe the mandatory standstill period (see section 10.3 below).
10.2 De-briefing Unsuccessful Tenderers
Under the Regulations, after an award decision has been made, the unsuccessful tenderers
may request a de-briefing to ascertain why their bid was unsuccessful. This de-briefing, if
requested, should take place within 15 days of the request. A tenderer can request an
accelerated debrief within 2 working days of the date of dispatch of the decision notification.
The contracting authority must then provide a debrief within 3 working days of the end of
the standstill period. If the tenderer requests a debrief outside the 2 working days limit, then
the debrief must be provided within the normal 15 day period.
Great care must be taken during de-briefing to avoid giving the tenderer information which
is confidential to other tenderers. Where practicable, the overall score obtained by the
winner of the tender and the tenderer being de-briefed should be given; avoid giving further
details of other tenderers‟ bids. A poorly-handled de-briefing can result in resentment and,
at worst, a legal challenge to the selection decision from an aggrieved supplier. The
Purchasing Office must be present at any debriefing sessions.
10.3 Mandatory standstill period
As soon as a decision has been made to award a contract or conclude a framework
agreement, the contracting authority must inform all bidders (preferably by fax or email).
They should be provided with details of the award criteria; their own score and that of the
winner (where practicable); the name of the successful tenderer; the reasons for the decision
24 | 9 2

including the characteristics and relative advantages of the successful tender and reasons (if
any) why they did not meet the technical specification. The award notice must contain a
statement of either when the standstill period is expected to end or the date before which the
contracting authority will not enter into a contact. The contracting authority must then wait
10 days before actually entering into the contract or concluding the framework agreement.
10.4 Reporting Requirements
Contracting authorities are required to report, for each public supply and services contract,
details of the value, procedure, type of goods and the nationality of the successful tenderer to
H.M. Treasury. Purchasing Office will collect this information annually and issue a report
on behalf of the University.
11 DISPUTES AND REMEDIES
Failure to adhere to the Regulations may cause a legal challenge by an aggrieved supplier, or
investigation by the European Commission. This can result in a contract being suspended or
even completely set aside and/or compensation being paid to tenderers. Purchasing Office
must be contacted immediately if there is any indication that a tenderer is unhappy with
the conduct of a tender or the final result, even if the complaint appears petty or without
foundation, so that action can be taken to avoid escalation.
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8 USE OF PURCHASE ORDERS
PURCHASING PROCEDURES
Purchase Orders are formal University documents which, when issued to an external party, commit
the University to expenditure and form a legally binding Contract with the external party. An order
must be raised prior to the ordering of any goods or services (unless the University Purchasing card
is being used.) Failure to do so will result in a breach of Financial Regulations (see paragraphs 705-
706.)
Purchase Orders are individually numbered and are obtained through Agresso.
In order to reduce the commercial risk in the use of such documentation, Purchase Orders
must always be approved by the Budget Holder and any over £5,000 are approved by the
Purchasing Office. The University‟s Terms and Conditions are available on the Internet as stated
on the Order Form. Only the Head of Purchasing, as nominee of the Group Executive Director
of Finance, may vary the Standard Conditions under which the University trades.
Where Suppliers issue an 'order acknowledgement', then User Departments should check quantity,
price and delivery details against the original Order and discrepancies taken up with the Supplier
immediately. Of particular importance is the need to check whether the acknowledgement
attempts to enforce the Suppliers Conditions of Sale. If so, this must be challenged by fax or
letter before receipt of goods or services: please contact the Purchasing Office for assistance, if
necessary.
Once a Purchase Order has been issued, a check to determine progress on the delivery of the
products or services may be required (either before or after the specified date). The responsibility
for progress chasing (expediting) rests with the Budget Holder/User Department issuing the
Purchase Order.
Any unreasonable delays or erroneous deliveries from a Supplier who is listed in the Buyers Guide
must be made known to the Purchasing Office so that appropriate action can be taken.
Required delivery dates must be stated when raising Purchase Orders so that progress can be
checked against such dates. The use of 'Urgent' or 'ASAP' are not acceptable terms for
delivery dates.
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9 DEALING WITH SUPPLIERS
PURCHASING PROCEDURES
All dealings with Suppliers must preserve the highest standards of honesty, integrity, impartiality
and objectivity, while remaining fair, efficient, firm and courteous.
Most transactions between the University and external Suppliers - although forming a legallybinding
contract - usually operate and conclude with relatively few incidents or disputes.
The following guidance points will help to ensure consistency of commercial activity, raise
awareness of contractual issues, and thereby lessen the risk of potential disputes.
1. Please ensure familiarity and compliance with the following:
- Selection of Potential Suppliers (section 5)
- Buyers Guide (section 14)
- Standard Conditions of Contract ( Policies and conditions)
- Code of Conduct (Code of Conduct)
2. It is not a policy of the University to pay for goods/services in advance: please refer to
paragraph 805 of Financial Regulations or contact the Purchasing Office for advice.
3. When requesting quotations careful consideration should be given to the following areas:
- Specification or Operational Requirements
- Usage figures
- Quality standards
- Specified terms/conditions
- Delivery requirements
The UCLan standard quote form should be used to avoid any conflicting terms.
4. All Supplier agreements requiring the signature of a University representative (e.g.
service/rental/maintenance contracts) must be authorised by the Head of Purchasing.
5. In the event of any legal, contract, or general supply dispute arising or likely to arise, advice
from the Purchasing Office should be sought at the earliest opportunity. At all times, a
careful record must be kept of communication with Suppliers, particularly those by
telephone.
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10 USE OF SPECIFICATIONS
PURCHASING PROCEDURES
In general, a Specification is a description of the product or service required. An effective
Specification should enable Suppliers to tender or quote to the University on an equal basis and
must not show bias towards any one product, brand or Supplier.
Specifications are more likely to be used where the purchase is of significant value (e.g. during the
tender process), but can be utilised in the procurement of complex or specialised low value
commodities.
Guidance for the preparation of Specifications is detailed below:
Drafting checklist
use simple language, avoid using jargon;
define terms, symbols and acronyms;
do not expect the specification to be read by experts; write it so that a layman will understand;
use a logical structure;
be as concise as possible, but keep the meaning clear;
plan and analyse your needs;
arrange the components of the requirement into a logical form matching the evaluation model;
(a good way of doing this is to set out a skeleton structure with the main headings and then add
in sub-headings as necessary;)
do not embed requirements in background information - suppliers may miss them - keep
requirements in their own sections;
list the most important elements of the requirement first and work through to the least
important; and
discuss the requirement with colleagues, other users and procurement staff. During this
process you may also identify other topics you need to include.
endeavour to reduce costs, and increase effectiveness and efficiency to contribute to VFM
endeavour to improve our carbon footprint by considering more environmentally friendly
methods of production/servicing etc.
Review checklist
A good specification should:
state the requirement specification completely, clearly, concisely, logically and
unambiguously;
focus on outputs not how they are to be met;
contain enough information for potential suppliers to decide and cost the goods or services
28 | 92

they will offer, or in the case of negotiated route arrive at realistic budgetary costs;
permit offered goods or services to be evaluated against defined criteria by examination, trial,
test or documentation;
state the criteria for acceptance by examination, trial, test or documentation;
contain only the essential features or characteristics of the requirement;
provide equal opportunity for all potential suppliers to offer a product or service which
satisfies the needs of the user and which may incorporate alternative technical solutions; and
comply with any legal obligations e.g. under UK law, the EEC Treaty, an EC Directive or the
GATT Agreement on Government procurement.
A good specification should not:
over-specify requirements;
contain features that directly or indirectly discriminate in favour of, or against, any supplier,
product, process or source. Discrimination on grounds of nationality is illegal in the EC,
contrary to the GATT Agreement, where applicable, and may not achieve value for money.
Leading Edge Technology
Where equipment is specified at or near the leading edge of technology, it is common for the
specification to be developed in conjunction with one or more suppliers. It is important that
this process does not result in a specification which is so detailed as to eliminate any
effective competition. The focus should be on what the department or research project needs
rather than specifying what the supplier can supply. The approach should be to specify
performance rather than technical details. In the latter case, there is the risk that the final
product will be technically superb but does not do what is required.
In discussing specifications with suppliers it is essential that no commitment is entered into
prior to seeking tenders and quotations.
Include “Extras”
Consider specifying what is wanted on the basis that everything is negotiable. The specification
could include:
provision for on-site tests, and pre-negotiation trials if these are desirable;
a price which is fixed and firm, irrespective of inflation or exchange rate fluctuations;
free delivery, installation and commissioning;
maintenance cover for however long the department needs it;
escrow agreement for software purchases
the price of consumables;
details of spare parts availability for the life of the equipment, together with contractual
notification before the supplier ceases manufacture of spare parts;
handbooks with full maintenance instructions, including circuit diagrams;
training.
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PURCHASING PROCEDURES
11 CONTRACTS
All formal contracts must be authorised by the Group Executive Director of Finance, usually by the
signing of Supplier documentation or Contract Award Forms.
Contracts will often take the form of 'standing offers', i.e. a firm price quotation which remains open
for a specified period (usually 12 months), so that Purchase Orders can be placed against the
standing offer as need arises. The Suppliers' prices are usually based on the University's 'best
estimate' of usage.
Once a contract or standing offer is in place, User Departments must ensure that those goods
or services are not purchased elsewhere, since the University will normally have entered into a
legal agreement for exclusive business with the contracted Supplier.
Minor or temporary price advantages are occasionally offered to User Departments from other
Suppliers. These should be advised to the Purchasing Office but not taken advantage of, since they
would normally jeopardise greater advantages from the established Supplier.
Contracts or standing offers should be placed for a period appropriate to the value and effort
involved in their award process. The Purchasing Office can give advice regarding this issue.
Contracts/supply arrangements should be subject to regular review and a note of the review retained
on the contract file held in the Purchasing Office.
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12 PURCHASING CONSORTIUM
PURCHASING PROCEDURES
The University of Central Lancashire is a member of the North Western Universities Purchasing
Consortium (NWUPC).
The Consortium consists of a number of commodity/service based user groups, representing most
University or Higher Education institutions in the North West of England and North Wales.
The Commodity Groups are:
Admin & Professional Services
Laboratory Supplies
Estates
Computer Supplies/Equipment
Catering
Domestic Supplies & Services
Stationery & Office Equipment
Furniture & Soft Furnishings
Audio-Visual Equipment
Telecommunications
Advantages of membership of the Consortium are:
- increased value for money because of bulk purchasing power;
- consistency of supply arrangements within the sector;
- 'networking' of best practices within user Departments;
- administration resource savings due to unnecessary tender or quotation exercises.
The Head of Purchasing shall make recommendations to the Group Executive Director of Finance
for purchases in excess of £50,000 where a Consortium supply arrangement exists, in order to
maximise value for money.
Details of Consortium contracts or supply arrangements are included in the Purchasing Buyers
Guide.
As a member, UCLan will encourage the consortium to incorporate issues detailed in the
University‟s Sustainable Development Procurement Procedure in future contracts.
Further information relating to the Consortium appears on the website at North Western
Universities Purchasing Consortium
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PURCHASING PROCEDURES
13 BUYERS GUIDE
The Purchasing Office has a Buyers Guide on the Purchasing Web site with a listing of all current
contracts or supply arrangements ( Buyers guide)
The Guide covers a large proportion of goods and services purchased by the University. Where any
necessary or regular items are purchased but not contained within the Guide, please advise the
Purchasing Office.
Standard Items and Contracts
As defined in the Buyers Guide (and detailed in Financial Regulations paragraph 701). These are
items normally used and purchased by all user Departments although some items are ordered via
Facilities Management.
The Purchasing Office will update the web page (additions, new contract details, etc.) to ensure that
the Guide remains current.
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14 LEAD PURCHASER’S GROUP
PURCHASING PROCEDURES
An informal Group - established by the Group Executive Director of Finance - seeks to include all
those staff who have departmental purchasing responsibilities.
The Group meets on a regular basis, and the role of the Group is to:
- maintain compliance with all aspects of the University's Purchasing
Policy, Strategy, and Procedures;
- identify and address operational issues relating to the purchasing process;
- discuss and measure Suppliers performance;
- help identify areas for standardisation or new contracts;
- discuss and measure Purchasing Office's performance;
- maintain a fully informed and consistent approach to purchasing activity
within the University.
Purchasing Office staff are members of the Group, and provide Departmental Lead Purchasers with
any necessary guidance and assistance in areas such as contract compliance and purchasing
procedures.
The University has established a Purchasing Strategy, and the Lead Purchasers Group is a focus
point for the implementation of any actions/procedures deemed necessary by the strategy.
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15 FINANCIAL HEALTH CHECKS
PURCHASING PROCEDURES
The Purchasing Office has the responsibility of carrying our financial appraisals on new and
existing suppliers.
Financial appraisals will take the form of a credit report and / or can be extracted from the Suppliers
audited accounts.
Purchasing together with Financial Services will then provide interpretations and advise to the user
department/requester.
Although credit reports and audited accounts provide a good indication of Suppliers financial status
or „health‟, care must always be taken as the information can be up to 12 months out of date.
Due to the diversity and volume of University business it is not appropriate to carry out financial
appraisals on all Suppliers – this will depend on the contract value but is mandatory for all new
purchases / contracts that have been through the tender process.
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16 SUPPLIER APPRAISAL
PURCHASING PROCEDURES
It is an objective of the University to continually improve the quality of goods and services
delivered into the University by external suppliers.
Any problems arising with the supply of goods and services should always be notified to the
Purchasing Office immediately to ensure they are dealt with promptly and are not allowed to
escalate. Staff in the Purchasing office are skilled in dealing with suppliers and should always be
involved in any discussions that take place.
Supplier performance on University contracts are regularly reviewed through the Contract
Monitoring process. Where appropriate, contracted suppliers will attend regular review meetings
throughout the life of the contract. The timings of the meetings will depend on the type of contract,
frequency of issues etc. and will be decided between the Purchasing Office, the user department and
the Supplier. Meetings may include discussions regarding the supplier‟s performance and adherence
to the service Level Agreement / contract terms.
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17 APPROVED SUPPLIERS
PURCHASING PROCEDURES
1. Approved Suppliers
An approved supplier is one who has been authorised by the Head of Purchasing to supply
goods and/or services in accordance with Purchasing Procedures; Selection of Potential
Suppliers (section 5) and Dealing with Suppliers (section 9).
University personnel are required to utilise the existing Supplier base for the supply of goods
and services. In considering a variation of supply a user must indicate their intention before
placing an order by completion of New supplier form. The Purchasing Office will then
consider the requirements of the user, evaluate the supplier and will confirm their decision
within TWO working days. The Purchasing Office will then inform the Creditors Office
within Financial Services of their decision by authorising the Application.
Purchase Orders must not be placed with Suppliers until approved by the Purchasing
Office. If the user has already placed an order they must be considered in breach of
Financial Regulations.
Where invoice documents have been processed directly to the Creditors office they will
verify if the supplier exists as an Approved Supplier. If the Supplier does not exist the
document will be returned to the budget holder. As the user will be considered in breach of
Financial Regulations the Head of Purchasing will consider any further action to be taken.
User concerns/problems should be directed in the first instance to the Purchasing Office. The
Purchasing Office will be responsible for maintaining the Supplier database on Agresso.
The payment of Approved Suppliers shall be in accordance with the Creditor Payment
Business Rules. The Purchasing Office can negotiate special terms subject to the cash flow
requirements of the University Group Treasury office to ensure the availability of funds.
Special payment terms must then be communicated to the Creditors office before the invoice
is received.
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18 PURCHASING CARDS
PURCHASING PROCEDURES
1. Overview
2. Procedures and Regulations
Requesting a Purchasing Card
Card transaction limits and limitations
Ordering of goods/services by Purchasing Card
Receiving goods
Payment of goods
Disputes and queries
Security
Contacts
APPENDICES
A. Flowcharts: -
A.1.
A.2.
A.3.
A.4.
A.5.
Purchasing goods via a Purchasing Card
Problems with the supply of goods.
Dealing with the Purchasing Card statement
Dealing with the Transaction Log (optional)
Checking of VAT invoices.
B. Quick Reference Guide for Internet Transactions
C. Purchase Card Transaction Log (optional)
37 | 9 2

1. Overview
The introduction of the Purchasing Card is to utilise an alternative method of ordering and
payment of goods/services that are of relatively low value and not in regular repeat demand
but, nevertheless, create a high volume of transaction requirements.
Added value projections will be determined by speeding up the acquisition process without
diluting management and budgetary control and should reduce invoice processing and
creditor activity.
The Purchasing Card looks like any normal credit card but embossed on the card will be: -
the University‟s name,
the cardholder‟s name,
the expiry date,
the card number – on reverse of card a 3-digit security number
(also an individual pin number will be supplied)
When the approval to issue a Purchasing Card is granted, the Purchasing Office will retain
the card and the cardholder will be advised of its number and expiry date but not the pin
number. The pin numbers will be kept sealed, in the safe of the Cashiers Office.
On those occasions when the cards are required for „point of sale‟ transactions, they will have
to be collected from, and returned to The Purchasing Office. The pin number will be given to
the card holder which they must then memorize as the Purchasing Office has no
responsibility for this once the number has been given to the card holder.
Procedures and regulations for the use of the Purchasing Card and its limitations are
contained in the following procedure and guidance notes.
The Purchasing Office will provide the details of all cardholders to SMT on a quarterly
basis. All cardholders will be subject to Financial Regulations of the University of
Central Lancashire and the following procedures and regulations will form part of
these Financial Regulations. Failure to adhere to these regulations may result in
disciplinary action and cancellation of the card.
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2. Procedures and Regulations
2.1 Requesting a Purchasing Card
All applications for use and ownership of a Purchasing Card will be requested by
the completion of the Authorised Signatory / Budget Access Form and authorised by
the Head of Purchasing and Group Executive Director of Finance.
Cardholders will be staff responsible for ordering goods and services for their
department. If they are not also the budget holder, this person must approve the
application.
The Head of Purchasing will arrange for the completion of the Organisation‟s
application form
Card holders will -
Complete the Cardholder section of the application form.
Provide to the Head of Purchasing a nominated project code for the creation
and setting up of the account in the Financial Services department.
Not disclose the card number and expiry date and pin number to any other
person (other than the budget holder)
Agree and abide by the limits and limitations applicable.
Not use the card for personal use.
Agree to the completion and timely input of transactions onto Agresso
(optional Purchase Card Transaction Log – see Appendix C) and the
retention of all related receipts for a period of 7 years after the date of
purchase.
Inform the Purchasing Office immediately if they are due to leave the
University or move to another role.
2.2 Card Transaction Limits and Limitations.
.
Each cardholder will have a standard transaction limit of £1000 (inclusive of VAT)
and a monthly credit limit of £5000 (inclusive of VAT). In certain circumstances this
can be increased by application to the Head of Purchasing and it can be set at a lower
level if required by the budget holder.
This limit should match the authorised signatory limit for the applicant. If this is not
the case, the authorised limit should be amended prior to proceeding with the credit
card application.
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Cards cannot be used for obtaining cash or acting as cheque guarantee cards to
personal cheques.
Cardholders must only use the Purchase Card when incurring expenses in the pursuit
of University business. Any misappropriation of University funds will be treated as
gross misconduct.
Any unauthorised or fraudulent use of the card will result in disciplinary action being
taken.
2.3 Ordering of Goods by Card
Ensure the proposed transaction complies with the Purchasing Card usage criteria
and the seller will accept the card.
Confirm credit available by checking current transaction log or account 6504 on
Agresso. If there is insufficient credit left on the card and the purchase cannot wait
until the following month, contact the Purchasing Office to request a temporary
increase
When approved by the budget holder, place order by telephone/e-mail/fax quoting
card number and expiry date. Confirm costs/prices and delivery date.
Request that a VAT receipt is sent with the transaction voucher and goods advice
note.
Enter transaction details onto Agresso (credit entry to 6504) and also complete the
Purchase Card Transaction Log (optional) immediately following completion of
purchase. Completing a Purchasing Card Transaction Log is now optional.
If completing the log, identify the account code per transaction.
2.4 Receipt of Goods
Check satisfactory receipt of goods ordered.
Ensure VAT receipt is enclosed with the transaction voucher and that the price
details are correct.
Enter receipt details on Purchase Card Transaction Log (Optional).
File the VAT receipt, awaiting Purchasing Card statement.
40 | 9 2

2.5 Payment of Goods/Services ordered by Purchasing Card.
Financial Services to post Purchase Card Statement balances to nominated project
code on account code 6504 each month when statements are received.
Check statement received with Agresso by running an enquiry on your nominated
project code and account code 6504. If you have completed a Purchase Card
Transaction Log you can also use the log to help check your statement.
Ensure VAT receipts are available and are correct.
Ensure project code and account code for each transaction is correct.
If the Purchase Card Transaction Log has been completed, obtain authorisation by
the Line Manager (authorising manager) for the project code detailed. Or you can
ask for the statement to be authorized.
Reconcile the entries on the card statement to Agresso- making any amendments as
necessary
Attach relevant VAT receipts and statement to back of Purchase Card Transaction
Log or the Statement and file in month order.
Retain all documentation and store in a secure location: the Purchase Card Log,
Statement and back up documentation are prime documents and must be retained for
a period of seven years.
Financial Services to check the nominal ledger on a monthly basis to ensure all
cardholder‟s accounts are being cleared regularly.
In addition Financial Services to conduct ad-hoc audits to review transactions and
check that all required back up documentation has been retained and filed in
monthly order.
2.6. Disputes and Queries
Initially disputes and queries should be taken up with the seller (supplier) by the
cardholder, who should keep a record of the details of the dispute/query and contacts
made with the seller.
When credits are due, the seller should be asked to raise refund vouchers together
with VAT credit receipts if applicable and the cardholder should ensure that these
credits appear on subsequent statements.
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In the event of non-settled disputes and queries the Purchasing Card company will
intervene.
When this situation arises, contact The Purchasing Office who will advise on
contacts and procedure.
2.7 Security
Cardholders only will be notified of the card number and expiry date and when
necessary the pin number, and will not disclose this to any other person other
than the budget holder.
The Purchasing Office will retain signed cards.
Pin numbers will be kept in the safe in the Cashiers Office.
For „point of sale‟ requirements, cards will have to be collected from, and returned
to, the Purchasing Office by the cardholder.
In the event of cards becoming lost or stolen (when out for „point of sale purchases),
or suspected and reported fraudulent use, the matter must be advised immediately to
the Purchasing Office who will arrange for the account to be „suspended‟.
If the card holder no longer requires the card, has obtained a replacement or will be
leaving the University employment, the card must be destroyed and Purchasing
Office informed immediately. If the card is lost/stolen the cardholder should contact
Barclaycard directly to arrange for the card to be deactivated and contact the
Purchasing Office for a replacement to be issued.
To prevent card details being accessed by unauthorized persons, card transaction
receipt details should be retained in a secure place at all times.
When destroying back up transactions details care must be taken to ensure papers are
shredded or put in confidential waste bins.
2.8 Best Practice Purchasing over the Internet
“Company Barclaycard guarantee against unauthorised transactions”
When you buy online with Company Barclaycard you are not liable for unauthorised
transactions. In the unusual event that unauthorised transactions do occur on your account,
they will immediately suspend and investigate them for you. Whatever happens, you won‟t
have to pay for transactions you didn‟t make.
42 | 9 2

2.8.1 Take care of your card details online
Secure sites will start with https, not http. Secure sites have an added encrypted
transaction layer. Other security systems include Secure Socket Layer (SSL), Secure
Electronic Transaction (SET) and HyperText Protocol Secure (HTTPS). Use these
whenever possible. Refer to section 2.8.6 for how to check if a website is secure.
2.8.2 Get to know a company before you buy
If you're not familiar with a supplier, it's a good idea to contact them first and ask for
some company background before you buy. Are the company‟s registered details
displayed on the home page? Is there some form of accreditation which can be
verified, e.g. Which? If you are unsure don‟t buy!
Contact the Internet Fraud Watch (www.fraud.org) to check out merchants first
2.8.3 Be aware of private sellers
Members of the public often use classified ads and auctions to sell online. Most
people are perfectly honest. However, if you do have any problems, your legal rights
may not be the same as they would be if you were dealing with a business. So always
make sure you know who you're buying from - then you can make an informed
choice.
2.8.4 Keep your passwords secret
If you register with a particular site, you'll be asked to enter a user name and
password. Keep your passwords completely secret - the same way, as you would look
after your personal debit / credit card PIN number.
2.8.5 Read the delivery and returns policy before you buy
Read the delivery and return policies on the merchant‟s home page before completing
an on-line transaction. Check you can return any unsatisfactory items and whether
you will get a refund or a merchant credit. The website ideally should also cover
delivery methods, delivery cost, currency accepted, taxes applied, return and refund
policy, and a contact telephone number or e-mail address.
2.8.6 Check for a secure connection before you enter your Company Barclaycard
details
First, make sure that you're using a secure browser
43 | 9 2

Your browser is the piece of software that enables your computer to access the World Wide
Web. (You probably know that already, but not everyone does!)
A secure browser such as Microsoft Internet Explorer version 4.0 or later will show you
whether or not the web site you are visiting is secure. Internet Explorer uses the padlock
symbols below.
A broken padlock = unprotected
An intact padlock = secure
These browsers also scramble your personal data before sending it, so no one else can read it.
Next, check the web site address
A secure site will often have https:// at the beginning instead of http:// (The 's' stands for
secure). Never send your card details by e-mail i.e. if the address starts mailto.
Secure
Unsecure
Again, if the web site gives you the option of using a secure checkout - say yes!
Ensure that a single browser window is open when submitting the data.
2.8.7 Save a record of your transactions
Just as you save till receipts in case you need to return or exchange something, you need to
keep a record of all online transactions too.
Print and save a copy of your completed order form and your order confirmation. Most
reputable suppliers will e-mail you with an order confirmation within 24 hours. Always keep
a record of the website address.
Remember to update your transaction log and refer to your company procedures.
2.8.8 Inspect your goods carefully
When you take delivery of goods you buy online, be sure to check that they're exactly
what you ordered. If you're unhappy with the quality, or have any other problem, first
44 | 9 2

contact the supplier direct. If you have any difficulty resolving the query with the
supplier, then contact your card administrator for guidance. If, in the unlikely event
you are in dispute with your supplier, please contact Company Barclaycard Customer
Service 08448 222 100.
2.8.9 Check your statement
Check the items on your monthly statement as soon as you receive it against your
saved receipts and Purchase Card Transaction Log (which is now optional). If there
are items on your statement that you don't recognise call Company Barclaycard
Customer Service 08448 222 100.
2.9 Online access
All cardholders have the facility to access their accounts online and the Purchasing
Office encourages this as it helps to reduce fraud and enables cardholders to view
their statements, transactions and remaining credit. Statements can be printed from the
website and this assists in reconciling accounts – vital at year end. Registration details
available from the Purchasing Office and details are on the Purchasing Office website.
2.10 Contacts
Name Department Telephone
Number
Leanne Horton Head of Purchasing 2220
Alison Thomas
Ana Maria Pinon
Purchasing Office 2221
2223
Customer Services Company Barclaycard 08448 222 150
45 | 9 2

APPENDIX A (Flow Charts)
A.1 Purchasing Goods via Purchasing Card
Cardholder identifies purchasing requirement
Purchase authorised by budget holder
Transaction log or account 6504 checked to confirm credit available
(if not and purchase urgent, limit may be increased temporarily by
Purchasing Office)
Proceed to order goods from supplier by phone/fax / web quoting all
relevant numbers and confirming with the supplier the amount of the
transaction. The transaction voucher is sent with the VAT receipt
and the goods advice note, which is dispatched with the goods.
Both item to be addressed to the cardholder and marked “Paid by
Purchasing Card”
Input details onto Agresso and (optional) update Purchase Card
Transaction Log with all purchase details.
Posting a Purchase Card Transaction
Goods/service received - including VAT receipt
Goods/service checked and reconciled to requirements
Receive and verify monthly Purchasing Card statement
(follow procedure A.3)
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A.2.
Problems with Supply of Goods
Responsibility of the Cardholder
Immediately contact supplier requesting a refund voucher be put through the
Purchasing Card Company and a VAT credit note
Does the supplier agree to issue a credit?
YES
NO
Detail on the Statement or (optional)
Purchase Card Transaction Log and
await receipt of credit.
Pursue with supplier until agreement is
reached or
Contact Barclaycard with
complaint/problem
On receipt of statement check
credit has been included and update account on Agresso
If credit has not been received, contact supplier to find out when the refund voucher
was processed
NOTE:
If you experience difficulty in obtaining a credit after following
these procedures please contact the Head of Purchasing.
Online access is now available for all cardholders – contact
Purchasing for details
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A.3.
Dealing with the Purchasing Card Statement
Responsibility of the Cardholder
On receipt of the statement, do you have all the VAT invoices?
YES
NO
Check the details on the statement are the
same as invoice details and the entries
made on Agresso and (Optional)
Purchase Card Transaction Log sheet
Contact the supplier
and request a copy
invoice
Await copy invoice
Do the entries on Agresso and (optional) Purchase Card
Transaction Log correspond to the statement?
YES
NO
If discrepancy due to dates, carry
forward the outstanding
transactions to the following
month
If credit required, contact
supplier or Purchasing Office
Are the Purchasing Card company statement details correct?
YES
NO
Raise query with Barclaycard
and advise Purchasing Office.
Proceed with next step when
queries resolved
Obtain authorization from budget holder to sign and date the
Statement and (Optional) the Purchase Card Transaction Log
Attach all invoices and (Optional) copy of the Purchase Card
Transaction Log or Agresso printout of 6504 to statement
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A.4.
Dealing with the Purchase Card Transaction Log (now Optional)
Responsibility of the Cardholder
On the face of your log sheet, enter the following:
Name - Staff Number
Department and Location
Phone Number
Enter each individual transaction detail onto the log as soon
as purchase completed and has been entered on Agresso
Make sure you get a receipt/invoice for each transaction
review weekly - chase suppliers for invoices not received
Check invoice details against log details
Put receipt/invoice into the log envelope and await receipt of
monthly statement
Update the Purchase Card Transaction Log with outstanding
details, process paperwork as outlined in A.1.
Return any invoices that do not appear on the statement to the
log file and await the next statement
Further information re posting the Purchase Card Transaction
Log details onto Agresso can be found at:
Posting a Purchase Card Transaction
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A.5 Checking of the VAT Invoice
Responsibility of the Cardholder
On receipt of the invoice - is the following correct?
YES
Items
Quantity
Price
NO
Attach invoice to, and update, (Optional)
the
Purchase Card Transaction Log.
Immediately
contact supplier
requesting a
refund voucher
be put through
the Purchasing
Card company
AND a VAT
credit note
50 | 9 2

APPENDIX B
Quick Reference Guide for Internet Transactions
Cardholder checks to
make sure supplier
has a secure site and
purchases
goods/services over
the Internet. Enter
the transaction onto
Agresso and
(Optional)
Transaction log
updated with details
Supplier may
acknowledge via e-
mail that he has
goods/services.
Supplier then
delivers
goods/services with a
receipt.
Supplier processes
transaction through
Visa network
Cardholder receives
goods/services and
(Optional)updates
Transaction Log.
Cardholder receives
and checks monthly
statement against
(Optional) log and
receipts
Statement, (Optional)
Transaction Log and
receipts are signed
off by line manager .
When you buy online with Company Barclaycard you are not liable for unauthorised
transactions. In the unusual event that unauthorised transactions do occur on your account,
they will immediately suspend and investigate them for you. Whatever happens, you‟ll never
have to pay for transactions you did not make.
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APPENDIX C
Purchasing Card Transaction Log
52 | 9 2

19 CORPORATE CARDS
PURCHASING PROCEDURES
1. Overview
2. Procedures and Regulations
2.1 Requesting a Corporate Card
2.2 Card transaction limits and limitations
2.3 Ordering of goods/services by Corporate Card
VAT Guidelines
2.4 Receipt of goods
2.5 Payment of goods/services ordered by Corporate Card
2.6 Disputes and queries
2.7 Security
Password protection
Lost/stolen cards
Cards no longer required
2.8 Best practice purchasing over the internet
2.9 Miscellaneous questions
2.10 Contacts
APPENDICES
A. Flowcharts: -
A.1.
A.2.
A.3.
A.4.
A.5.
Purchasing goods via a Corporate Card
Problems with the supply of goods.
Dealing with Corporate Card statement
Dealing with UCLAN Transaction Log
Checking of VAT invoices.
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B. Quick Reference Guide for Internet Transactions
C. Corporate Card Transaction Log (optional)
1. Overview
The Corporate Card was introduced to enable frequent travellers to pay for expenses incurred
whilst on University business expenses such as travel arrangements (where the Travel Office
are unable to arrange credit for hotels or other expenses), entertaining guests and purchasing
fuel.
The University currently uses a Corporate Card issued by Company Barclaycard, which is a
VISA credit card. Cards are embossed with:
the University‟s name
the cardholder‟s name
the expiry date
the card number
(also supplied is an individual pin number)
The Corporate Card reduces the need to request either cheque or cash advances, saving time
and money and easing cash flow. It should also mean less frequent need for reimbursement
via the Cashiers Office for University business expenditure. A further benefit is that the
University does not have to pay immediately for the transactions undertaken and can obtain
up to 33 days of interest free credit.
Security is improved due to the reduction in cash handling and the fact that guarantee card
payment reduces financial risk.
The Card is accepted in over 400,000 UK outlets, 10 million world-wide.
Cardholders benefit from free travel accident insurance where the card is used as the method
of payment.
Procedures and regulations for the use of the Corporate Card and its limitations are contained
in the following procedure and guidance notes.
The Purchasing Office will provide the details of all cardholders to SMT on a quarterly
basis. All cardholders will be subject to Financial Regulations of the University of
Central Lancashire and the following procedures and regulations will form part of
these Financial Regulations. Failure to adhere to these regulations may result in
disciplinary action and cancellation of the card.
54 | 9 2

2. Procedures and Regulations
2.1 Requesting a Corporate Card
The Corporate Card is currently available to the Directorate, Senior Management Team
members and frequent travellers, subject to approval from the Group Executive Director of
Finance.
Requests for a Corporate Card should be made directly to the Purchasing Office,
accompanied by an authorisation form signed by the Line Manager/Budget Holder (available
from the purchasing office). Requests should detail the card limit you require (refer to
section 2.2 for guidance). The Group Executive Director of Finance will authorise all
qualifying requests. Cards usually take 14 days from the date of the card issuer receiving a
correctly completed application form.
The monthly limit is stipulated at the time of issue of the card but may be adjusted according
to need, on the authority of the Group Executive Director of Finance.
Corporate Cards are valid for two years and on expiry the Group Executive Director of
Finance will review the renewal.
There are two card options:
Gold Cards will be issued to Directorate and Deans.
Silver Cards will be issued to all other parties
Cardholders will -
Complete the Cardholder application form.
Complete an authorisation memo signed by the budget holder.
Provide to the Head of Purchasing a nominated project code for the creation and
setting up of the account in Financial Services.
Ensure that the card is kept in a safe place and is used solely by themselves.
Not disclose the card number and pin number and expiry date to any other person
(other than when charging an expense to the card).
Agree and abide by the limits and limitations applicable.
Obtain an itemised invoice / receipt for each transaction, containing VAT details
where applicable.
Agree to the completion and timely input of transactions onto Agresso (optional
Corporate Card Transaction Log see Appendix C.)
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Ensure that the Transaction Log (if used) and all related receipts are retained for a
period of 7 years after the date of purchase.
2.2 Card Transaction Limits and Limitations.
The initial limit for each card is a maximum of £5000. This limit should be sufficient to
cover the expenses of a two-month period. Card limits may be increased either permanently
or temporarily via a written request to the Head of Purchasing. Requests should state start and
end dates, required limit and the justification for the increase.
In exceptional circumstances it may be necessary for members of SMT to include personal
expenditure on their corporate card. In such instances;
the personal expenditure should be highlighted on the statement,
the amount owed should be paid into Cashiers as soon as practicable,
the cardholder or their nominee should keep a copy of all records on file for audit
purposes.
2.3 Ordering of Goods / Services by Corporate Card
Goods or services can be charged to the account either in person by presenting the card, or by
phone quoting all the relevant card details such as your Name, Card Expiry Date, Card
Number and sometimes your security code.
Care should be taken only to quote card details to someone known to the cardholder or who
can reasonably expect to be honestly engaged in business on the cardholder‟s behalf (i.e.
Travel Office staff). Ensure that the right amount is charged to the account and remember
that the monthly card limit must not be exceeded.
The cardholder has personal responsibility to account for the use of their card. Cardholders
must therefore:
Ensure the proposed transaction complies with the Corporate Card procedure and
the seller will accept the card.
If necessary, obtain authorization from the project budget holder (if you have access
to more than one project.)
Order goods/service either in person, or by telephone/fax quoting card number and
expiry date. Confirm costs/prices and delivery date.
Ensure that you obtain an itemised invoice/receipt (including VAT details where
applicable). If ordering goods this should be sent with the transaction voucher and
goods advice note.
Enter the transaction details onto Agresso (credit entry to 6516) and also complete
the Corporate Card Transaction Log if required, immediately following completion
of purchase. Completing a Corporate Card Transaction Log is now optional.
56 | 9 2

2.3.1 VAT Guidelines
Some expenses charged to the Corporate Card may be vatable. When charging something to
the card, ask whether VAT is applicable, at what rate it is applicable, and ask for the total
VAT amount and a VAT receipt. Not everything that the cardholder charges to the corporate
card will be subject to VAT.
Some suppliers are able to provide VAT details to VISA, who in turn provides official
evidence of VAT paid. If a # (hash) appears against the transaction then VAT has been
captured electronically. If a # does not appear on the statement, the supplier should have
provided a VAT invoice. If not, the cardholder must ask the supplier to supply a VAT
invoice.
Please retain all sales vouchers. Both sales vouchers and VAT receipts must be kept to
substantiate any transactions made. The VAT receipts will also be used to reclaim VAT
where applicable.
2.4 Receipt of Goods
Check satisfactory receipt of goods ordered.
Ensure that an itemised invoice / VAT receipt is enclosed with the transaction
voucher and that the price details are correct.
Enter the transaction details on the Corporate Card Transaction Log (optional.)
File the itemised invoice / VAT receipt, awaiting the Corporate Card statement.
2.5 Payment of Goods/Services ordered by Corporate Card.
Financial Services will post the total of each cardholder‟s Corporate Card Statement balance
to a nominated project code on account code 6516 each month when statements are received.
Cardholders are required to:
Check the statement received with Agresso by running an enquiry on your
nominated project code and account code 6516. If you have completed a Corporate
Card Transaction Log you can also use the log to help check your statement.
Ensure that an itemised invoice/VAT receipt has been obtained for each transaction.
57 | 9 2

Ensure the correct project code, account code, resource number and any other
appropriate details have been entered on the Corporate Card Transaction Log (if
completed.)
If completed, ensure that the Corporate Card Transaction Log is authorised by the
line manager for the project code detailed, which should in all cases be a person
different to the cardholder themselves, and ensure that the Log is input onto Agresso
within 7 days of receipt/date of statement.
Reconcile the entries on the card statement to Agresso – making any amendments as
necessary
Attach itemised invoices/VAT receipts (for each transaction) and statement to the
back of the Corporate Card Transaction Log or Statement and file in month order.
Retain all documentation and store in a secure location; the Corporate Card Log,
Statement and back up documentation are prime documents and must be retained
for a period of seven years.
Financial Services will check the accounting system on a monthly basis to ensure
that all cardholder‟s transactions are being input.
Financial Services will conduct regular audits to ensure that Corporate Card
Transaction Logs have been correctly completed and that all required back up
documentation has been obtained and filed.
2.6. Disputes and Queries
Initially disputes and queries should be taken up with the seller (supplier) by the
cardholder, who should keep a record of the details of the dispute/query and contacts
made with the seller.
When a credit is due, the seller should be asked to raise a refund voucher together
with a VAT credit receipt if applicable and the cardholder should ensure that these
credits appear on subsequent statements. The credit should also be detailed on the
Corporate Card Transaction Log in order for the Log to reconcile exactly with the
value of the statement.
In the event of non-settled disputes and queries the Corporate Card company will
intervene (see 2.10 Contacts). If you receive an inadequate response contact the
Purchasing Office. However, please do not cross out any of the transactions
concerned on the queried statement; the University must pay promptly to avoid
interest charges and, therefore, payment cannot be delayed pending any such credits
or dispute resolution.
It is the cardholder‟s responsibility to ensure that their statements are correct.
58 | 9 2

2.7 Security
Company Barclaycard will only issue cards after they receive an application form authorised
by relevant University personnel, including the cardholder. The Head of Purchasing is the
authorised signatory for the card agreement. Where an application requires two signatures,
i.e. for a limit >£5000, then a member of Financial Services who is named on the bank
mandate (Head of Purchasing or Group Executive Director of Finance) will also sign.
Corporate Cards are posted to the Purchasing Office who will then contact the cardholder to
advise them that the card is available for collection.
On collection of the card, the cardholder must sign to confirm receipt and sign their card in
front of the Purchasing Office member of staff issuing the card and be supplied with their pin
number.
2.7.1 Password Protection
Whilst making a transaction a security number may be required, this is on the reverse of the
card. A password will also have been entered on the application form and as such will only
be viewed by the cardholder, the Group Executive Director of Finance, the Purchasing Office
and Company Barclaycard employees.
2.7.2 Lost / Stolen Cards
In the event of cards becoming lost or stolen, or suspected and reported fraudulent use, the
cardholder should contact Company Barclaycard immediately to arrange for the card to be
deactivated and for a replacement to be issued. The cardholder should then advise the
Purchasing Office.
2.7.3 Cards No Longer Required
If the card holder no longer requires the card, has obtained a replacement or will be leaving
the University employment, the card must be cut into four pieces and returned to the
Purchasing Office immediately with an explanatory note.
2.7.4 Transaction Receipts
To prevent card details being accessed by unauthorized persons, card transaction receipt
details should be retained in a secure place at all times.
When destroying back up transactions details care must be taken to ensure papers are
shredded or put in confidential waste bins.
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2.8 Best Practice Purchasing over the Internet
„Company Barclaycard guarantees against unauthorised transactions.‟
When you buy online with Company Barclaycard you are not liable for unauthorised
transactions. In the unusual event that unauthorised transactions do occur on your account,
they will immediately suspend and investigate them for you. Whatever happens, you won‟t
have to pay for transactions you didn‟t make.
2.8.1 Take care of your card details online
Secure sites will start with https, not http. Secure sites have an added encrypted transaction
layer. Other security systems include Secure Socket Layer (SSL), Secure Electronic
Transaction (SET) and HyperText Protocol Secure (HTTPS). Use these whenever possible.
Refer to section 2.8.6 for how to check if a website is secure.
2.8.2 Get to know a company before you buy
If you're not familiar with a supplier, it's a good idea to contact them first and ask for some
company background before you buy. Are the company‟s registered details displayed on the
home page? Is there some form of accreditation which can be verified, e.g. Which? If you
are unsure don‟t buy!
Contact the Internet Fraud Watch (www.fraud.org) to check out merchants first
2.8.3 Be aware of private sellers
Members of the public often use classified ads and auctions to sell online. Most people are
perfectly honest. However, if you do have any problems, your legal rights may not be the
same as they would be if you were dealing with a business. So always make sure you know
who you're buying from - then you can make an informed choice.
2.8.4 Keep your passwords secret
If you register with a particular site, you'll be asked to enter a user name and password. Keep
your passwords completely secret - the same way, as you would look after your personal card
cash machine PIN number.
2.8.5 Read the delivery and returns policy before you buy
Read the delivery and return policies on the merchant‟s home page before completing an online
transaction. Check you can return any unsatisfactory items and whether you will get a
refund or a merchant credit. The website ideally should also cover delivery methods, delivery
cost, currency accepted, taxes applied, return and refund policy, and a contact telephone
number or e-mail address.
60 | 9 2

2.8.6 Check for a secure connection before you enter your
Company Barclaycard details
First, make sure that you're using a secure browser
Your browser is the piece of software that enables your computer to access the World Wide
Web. (You probably know that already, but not everyone does!)
A secure browser such as Netscape Navigator version 4.0 or later, or Microsoft Internet
Explorer version 4.0 or later will show you whether or not the web site you are visiting is
secure. Internet Explorer uses the padlock symbols below while Netscape uses keys.
A broken key or padlock = unprotected
An intact key or padlock = secure
These browsers also scramble your personal data before sending it, so no one else can read it.
Next, check the web site address
A secure site will often have https:// at the beginning instead of http:// (The 's' stands for
secure). Never send your card details by e-mail i.e. if the address starts mailto.
Secure
Unsecure
Again, if the web site gives you the option of using a secure checkout - say yes!
Ensure that a single browser window is open when submitting the data.
2.8.7 Save a record of your transactions
Just as you save till receipts in case you need to return or exchange something, you need to
keep a record of all online transactions too.
Print and save a copy of your completed order form and your order confirmation. Most
reputable suppliers will e-mail you with an order confirmation within 24 hours. Always keep
a record of the website address.
2.8.8 Inspect your goods carefully
When you take delivery of goods you buy online, be sure to check that they're exactly what
you ordered. If you're unhappy with the quality, or have any other problem, first contact the
supplier direct. If you have any difficulty resolving the query with the supplier, then contact
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your card administrator for guidance. If in the unlikely event you are in dispute with your
supplier please contact Company Barclaycard Customer Service 08448 222 150
2.8.9 Check your statement
Check the items on your monthly statement as soon as you receive it against your saved
receipts and Corporate Card Transaction Log. If there are items on your statement that you
don't recognise call Company Barclaycard Customer Service 08448 222 150
2.9 Online access
All cardholders have the facility to access their accounts online and the Purchasing Office
encourages this as it helps to reduce fraud and enables cardholders to view their statements,
transactions and remaining credit. Statements can be printed from the website and this assists
in reconciling accounts – vital at year end. Registration details available from the Purchasing
Office and details are on the Purchasing Office website.
2.10 Contacts
NAME TITLE TELEPHONE
Head
Purchasing
of
Leanne Horton
AB133 Adelphi Building
2220
Email: lhorton2@uclan.ac.uk
Purchasing
Officers
Purchasing Office
AB 135 Adelphi Building
2221/2223/2225
Customer
Services*
Company Barclaycard
www.companybarclaycard.co.uk
08448 222 150
+44 1642 663 663 (from
abroad)
Lost/Stolen Cards/
24 hour
customer
service
Company Barclaycard 01642 230 230
+44 1642 230 230 (from
abroad)
* Quote card number, name, transaction query, date and amount.
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APPENDIX A (Flow Charts)
A.1 Purchasing Goods via Corporate Card
Cardholder identifies purchasing requirement
Purchase authorized by budget holder
Transaction log or account 6516 checked to confirm credit available
(if not and purchase urgent, limit may be increased temporarily by
Purchasing Office)
Proceed to order goods from supplier by phone/fax / web quoting all
relevant numbers and confirming with the supplier the amount of the
transaction. The transaction voucher is sent with the VAT receipt
and the goods advice note, which is dispatched with the goods.
Both item to be addressed to the cardholder and marked “Paid by
Corporate Card”
Input details onto Agresso and (optional) update Corporate Card
Transaction Log with all purchase details.
Posting Card Transaction
Goods/service received - including VAT receipt
Goods/service checked and reconciled to requirements
Receive and verify monthly Corporate Card statement
(follow procedure A.3)
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A.2.
Problems with Supply of Goods
Responsibility of the Cardholder
Immediately contact supplier requesting a refund voucher be put through the
Corporate Card Company and a VAT credit note
Does the supplier agree to issue a credit?
YES
NO
Detail on the Statement or (optional)
Corporate Card Transaction Log and
await receipt of credit.
Pursue with supplier until agreement is
reached or
contact Barclaycard with complaint/problem
On receipt of statement check credit has been included and update account on
Agressso
If credit has not been received, contact supplier to find out when the refund voucher
was processed
NOTE:
If you experience difficulty in obtaining a credit after following
these procedures please contact the Head of Purchasing.
Online access is now available for all cardholders – contact
Purchasing for details
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A.3.
Dealing with the Corporate Card Statement
Responsibility of the Cardholder
On receipt of the statement, do you have all the VAT invoices?
YES
NO
Check the details on the statement are the
same as invoice details and the entries
made on Agresso and (Optional)
Corporate Card Transaction Log sheet
Contact the supplier
and request a copy
invoice
Await copy invoice
Do the entries on Agresso and (optional) Corporate Card
Transaction Log correspond to the statement?
YES
NO
If discrepancy due to dates, carry
forward the outstanding
transactions to the following
month
If credit required, contact
supplier or Purchasing Office
Are the Corporate Card company statement details correct?
YES
NO
Raise query with Barclaycard
and advise Purchasing Office.
Proceed with next step when
queries resolved
Obtain authorization from budget holder to sign and date the
Statement and (Optional) the Corporate Card Transaction Log
Attach all invoices and (Optional) copy of the Corporate Card
Transaction Log or Agresso printout of 6516 to statement
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A.4.
Dealing with the Corporate Card Transaction Log (now optional)
Responsibility of the Cardholder
On the face of your log sheet, enter the following:
Name and staff number
Department and Location
Phone Number
Enter each individual transaction detail onto the log as soon
as purchase completed and has been entered on Agresso
Make sure you get an itemised invoice/VAT receipt for each
transaction; review weekly - chase suppliers for invoices not
received
Check invoice details against log details
Put receipt/invoice into the log envelope and await receipt of
monthly statement
Update Corporate Card Transaction Log with outstanding
details, process paperwork as outlined in A.1.
Return any invoices that do not appear on the statement to the
log file and await the next statement
Further information re posting the Corporate Card
Transaction Log details onto Agresso can be found at:
Card Log Entry
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A.5 Checking of the VAT Invoice
Responsibility of the Cardholder
On receipt of the invoice - is the following correct?
Items
Quantity
Price
YES
Attach invoice to, and update, the
Corporate Card Transaction Log
NO
Immediately
contact supplier
requesting a
refund voucher
be put through
the Corporate
Card company
AND a VAT
credit note
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APPENDIX B
Quick Reference Guide for Internet Transactions
Cardholder checks to
make sure supplier
has a secure site and
purchases
goods/services over
the Internet. Enter
the transaction onto
Agresso and
(Optional)
Transaction log
updated with details
Supplier may
acknowledge via e-
mail that he has
goods/services.
Supplier then
delivers
goods/services with a
receipt.
Supplier processes
transaction through
Visa network
Cardholder receives
goods/services and
updates transaction
log (optional)
Cardholder receives
and checks monthly
statement against log
(optional) and
receipts
Statement,
transaction log and
receipts are signed
off by line manager
and sent to accounts.
When you buy online with Company Barclaycard you are not liable for unauthorised
transactions. In the unusual event that unauthorised transactions do occur on your account,
they will immediately suspend and investigate them for you. Whatever happens, you‟ll never
have to pay for transactions you did not make.
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APPENDIX C
Corporate card log
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PURCHASING PROCEDURES
20 NEGOTIATION BRIEFING NOTES
Why negotiate
As we are spending taxpayer‟s money, we are publicly accountable and must ensure
that value for money is obtained. Negotiation is one method of achieving this. Also
savings made enable budget holders to gain more from typically decreasing budgets.
When conducted with integrity and professionalism negotiation is a perfectly logical
step in the procurement process. It must be carefully planned and managed so that
confidence and trust in the purchaser (which in the longer term translates into better
value for money) are always retained. Suppliers who realise that their customer always
wishes to negotiate will invariably add a little on to their price to compensate.
Conducting a basic negotiation
A negotiation strategy should be developed prior to the negotiations taking place.
Analysing information, identifying objectives, formulating a strategy and ensuring that
you are authorised to conduct the proposed negotiations will help you to negotiate
from a position of strength and achieve an effective result. Ensure you differentiate
from facts and assumptions.
1. Pre-Meeting Strategy Development
When creating your strategy consider all potential items for negotiation and ways
in which the University‟s needs may be met. Consider also the current market
trends and the suppliers‟ current and future business situation e.g. seasonal
variations, current financial standing and market strategies. Analyse the faults of
supplier‟s products, even if they are unimportant to the purchaser, getting the
supplier to identify / confirm weaknesses can put the balance of power on your
side. Considering many options will allow you to change tack during negotiations if
necessary.
1a. What to negotiate
Price (except in EU contracts)
supply and cost of spare parts
earlier delivery/completion dates
warranties/guarantees/maintenance/repair/after sales service
compensation for failure to meet specified requirements.
quantity/educational discounts. This list is not exhaustive, it is a concept of
purchasing that “everything is negotiable”.
2. Meeting - Introduction
Home „turf‟ is always useful, familiarity with environment and information to hand
offers a position of strength from which to conduct proceedings. The meeting
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should commence with an introduction, giving background information and gently
leading up to points to discuss. Allow suppliers time to talk, you can pick up useful
information prior to negotiating.
3. Meeting - Discussion
Commencing the process of discussion, start with items you will find easy to agree
on to build a relationship. Suggest a break if things become difficult or
deadlocked.
4. Tactics
Ask suppliers what you could do to improve your dealings with them, there may be
something important to them which involves little effort on your part. Such
concessions can dramatically improve a supplier‟s impression of the University as a
customer.
Salespeople are highly trained and motivated to fend off their competitors and win
your custom so be on your guard.
Avoid situations where a supplier knows they will get an order. This can occur
when they have the best product to meet our needs, deadline date or because an end
user has advised them!
When undertaking team negotiations ensure that all members are aware of their
role in the negotiations and the tactics to be deployed.
Ask for cost breakdowns to include the profit margin, labour and various product
components. This enables comparison between suppliers, which you can then use
to query any anomalies.
Recognise supplier‟s strengths and weaknesses in relation to your requirements.
Ensure that your weaknesses are played down, put in a positive light, or not
disclosed at all. Make more of the supplier‟s weaknesses and less of their
strengths. Make more of your strengths. Think not of how little your concessions
mean to you but of how much they may mean to the supplier.
Reserve your position until you see the full scope of the proposed deal. Never agree
point by point. Using conditional language e.g. if... then perhaps ... can assist you in
this. Try not to concede without gaining a concession from the supplier, always
SOMETHING FOR SOMETHING! Observe how the supplier negotiates and
adjust your tactics accordingly, or choose to take the lead.
5. Meeting - Close
Once agreement has been made summarise the points and method of
implementation. Make an effort to leave the supplier with some satisfaction at the
completion of a negotiation. Such satisfaction may be nothing more than
understanding why it has been necessary for him to make concessions. Aim for a
„win win‟ situation.
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6. Ethics
Contracts for the supply of goods and services do not have to be in writing to be
legally enforceable and so great care must be taken during any negotiations to avoid
entering contracts orally.
Negotiation should not be conducted in ways, which put suppliers at a
disadvantage, distort competition or adversely affect trust in the procurement
process. Avoid Dutch auctions and empty threats and ensure suppliers are treated in
an honest, fair and ethical manner whilst retaining confidentiality of their bids.
Exercise of control on all types of information, only partially revealing or choosing
only that which is suitable for your purpose, is a perfectly legitimate tactic. Care
should be taken however to avoid leaving bidders with a misleading impression,
otherwise the failure to supply the information may be held to be a
misrepresentation by omission.
If discussions regarding bid clarification result in an exchange of further
information to one or more of the suppliers it is imperative that the same
information is given to all bidders.
Negotiations must be fully documented so that a clear audit trail is left.
Those suppliers who have been unsuccessful should be given constructive feedback
to assist them in becoming more competitive for future requirements in the interest
of market forces.
For negotiation to be effective both parties must foster a relationship that is based
on trust, fair dealing and respect for each other‟s viewpoint.
7. Post Tender Negotiation
Post Tender Negotiation must only be undertaken with a member of the Purchasing Office.
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PURCHASING PROCEDURES
21 PURCHASING GUIDANCE NOTES (when bidding for funds)
Below are a number of „key‟ points that will have to be considered and acted upon when
University staff are bidding for funds to purchase equipment and services. It is important for
„bidders‟ to recognise any mandatory requirements as they could affect the timeframe and
procurement process if the bid were to be successful.
University Financial Regulations
All purchases for equipment and services are subject to the University‟s Financial
Regulations.
Headline Regulations are,
Purchases up to and including £5k – estimated price
Purchases £5k to £50k – a minimum of three written quotations
Purchases £50k to £173 – a minimum of four tenders – allow a minimum of four
months for this process
Purchases greater than £173k, subject to EU Procurement (tender) Regulations (see
below). – allow a minimum of six months for this process
Statutory Requirements
All purchases for equipment and services over the value of £173k that could be aggregated
or purchased from a single supplier will be subject to EU Procurement Regulations.
What does this mean?
Each procurement is subject to statutory regulations and timetables.
For an „open‟ tender all applicants must receive a tender pack. The tender timeframe
is a minimum of 52 days.
The specification must be generic and must not include any artificial „lock out‟
barriers to competition within the specification i.e. quoting any „brand names‟.
Every supplier must be treated equally and fairly.
If the EU Tender Regulations are NOT followed precisely then the University may be
challenged in a court of law and if found guilty could be fined up to the value of the potential
contract.
External Requirement and Good Practice Purchasing
Most external funding agencies now impose procedures on bidding institution. These will be
a combination of strict procedures or good practices. Organisations such as HEFCE, the
Research Councils and the Wellcome Trust all insist the proper tender regulations are
observed and „whole life costings‟ are included within the bid and procurement process.
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Most agencies now insist the institution Purchasing Office is included within the process and
sign off the bid/procurement documentation. Failure to do so may result in the bid not being
accepted or funds being denied.
What is „whole life costing’?
Whole life costing asks that the purchase of equipment or a service be costed through to the
end of the expected life of the equipment or project. This will include but not limited to,
Initial purchase cost
Delivery and implementation costs
Consultancy, manuals and Training
Annual maintenance and licensing costs,
Consumables and spares
Upgrades
Insurance
Resale or trade in value
It is important that the Purchasing Office is included early on in the bid process as they can
advise in more depth, the various requirements involved in a „high value‟ purchase. The
Purchasing Office has an extensive website which includes guidance notes on most topics
involved with purchasing equipment (goods) and services.
This can be found at - Purchasing Office
or alternatively contact the Purchasing Office on extension 2220.
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PURCHASING PROCEDURES
22 CONSULTANCY
GUIDANCE FOR THE PROCUREMENT OF CONSULTANCY
CONTENTS
1. FOREWORD
2. PRINCIPLES
3. FINANCIAL REGULATIONS
4. THE PROCESS
5. GUIDELINES
6. METHODS OF PAYMENT
APPENDIX 1:
CONSULTANTS TRAVEL EXPENSES
APPENDIX 2:
ADVICE ON DIFFERENTIATION BETWEEN EMPLOYEE
AND SELF-EMPLOYED STATUS
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1. Foreword
The purpose of this document is to provide guidance to those members of staff involved in
the difficult task of hiring external consultants to undertake work on behalf of the University.
The following check lists, procedures and principles will provide complete assurance in the
safety of the placement of a consultancy contract (legal contract “Standard Contract for the
Purchase of Consultancy” available from
http://www.uclan.ac.uk/information/services/finance/purchasing/terms_and_conditions.php.
Do please note that travel expenses listed under Appendix 1 are intended as a guideline only
and should be checked for any revisions.
Please remember the Purchasing Office are always available to assist and contact should be
made with the Head of Purchasing on ext. 2220 in the first instance if any member of staff
wishes to take advantage of their expertise in this matter.
The aim of this document is to improve the quality of consultants‟ reports as a management
tool by laying out the University‟s expectations, highlighting best practice and documenting
the risks associated with consultant reports and presentations.
In general terms, as part of a broader management framework, consultant reports, like all
other elements of such a framework, must be subject to and demonstrate value for money,
risk awareness, audit ability and a connectedness to corporate planning and strategic
priorities.
In specific terms the outputs of such consultant contributions should demonstrate objectivity,
rigour, validity, reliability, coherence and focus.
These general and specific considerations are directly related. A consultant‟s report which
lacks validity will lack value for money. Similarly a review which lacks objectivity is
unlikely to contribute satisfactorily to risk assessment or mitigation processes.
The cost of ineffective or flawed consultancy is potentially not just the fee paid for the
consultancy work but the business cost of poor decisions made on the basis of such
consultancy.
All consultants‟ reports are different and the commissioning conditions and briefs can vary
significantly. There is no single correct way to carry out effective consultancy. However, the
University is committed to maximising the quality of decision making generally and is
focused therefore on establishing best practice in relation to those reports it commissions.
The following set of principles indicates a set of expectations to which all consultants and
commissioning mangers should adhere. Promotion of these principles and raising awareness
of the issues they address, both internally and to potential consultants, is designed to raise
standards of consultancy reports and improve decision making.
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POLICY
2.0 Principles
2.1 All consultancies will be expected to adhere to a professional Code of Practice
This will be either the MCA (Management Consultancies Association) Code of
Professional Conduct or equivalent 1 . Additionally all consultancies shall adhere to
the University‟s policies on diversity and equal opportunities in all work and not just
such work which has diversity as an explicit element of the brief.
2.2 All consultancies will be appropriately commissioned.
This means that all commissions will be consistent with the University‟s Financial
Regulations and will normally incorporate the model contract for consultants issued
by Financial Services.
2.3 All consultancies will have a clear brief
This means that all consultancies will have as a minimum a written statement of
The scope of the work with relevant terms appropriately defined
The methodologies and instruments to be used (e.g. survey, interview, focus group
etc.)
In the case of survey work the population from which the sample will be drawn and
the sampling frame.
A stated link to University Strategy (e.g. Corporate Plan, Risk Register, VFM
schedule or equivalent), and previous relevant documents and research work where
known.
Who is commissioning the consultancy and to whom the outputs should be delivered
in the first instance
The nature of the outputs (reports, presentations etc.)
The time frame for final report and any intermediate drafts to be delivered
Utilising the Standard Contract for the Purchase of Consultancy will cover all of the
above requirements.
2.4 All quantitative surveys will be reliable, valid and appropriately executed and
reported.
This means that
Survey questions will adhere to social science good practice and questions or items
should be both reliable and valid.
Appropriate confidentiality and informed consent must be exercised.
Statistical analysis should be decided prior to data collection.
1 http://www.mca.org.uk/MCA/AboutUs/CodeOfConduct.aspx
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Samples used in surveys should be representative of the population defined in the
brief. Large samples can still be unrepresentative. The sampling method should be
clearly defined and will normally be randomly determined (involving stratification
where appropriate). Where there is weighting of samples by key population variables
to yield better population estimates, this should be clearly documented and justified.
Where appropriate and feasible, new or bespoke question sets should be piloted prior
to full survey.
2.5 All statistical results reported in surveys should be accurate, comprehensible to
the intelligent lay reader and should not be misleading or overstated.
This means that statistical findings should be presented clearly and rooted in the
actual data. Comparative statistical judgments should reflect normal standards
associated with inferential statistics. Survey response rates and any significant issues
in validity arising from unsatisfactorily low response rates or potentially skewed
response rates must be foregrounded.
Specifically this means that:
Where comparisons are the focus of a sample survey, differences should normally
only be highlighted where they are statistically significant (normally at 5% level of
significance but there will be exceptions).
Tables which report means across groups (with or without claims of statistically
significant differences) should also report measures of dispersion such as standard
deviation.
Nonparametric statistics should be used where more appropriate than parametric
statistics. Parametric statistics should not be used where normal parametric
assumptions are violated, with particular care and attention to Likert study data.
Sub sample analyses should be reported with caution particularly where sub sample
sizes are small.
Statements which are only true of a sub sample should not be presented as being true
of the sample as a whole. Equally, statements which are true of the sample as a whole
should not be presented as true only of a sub sample.
2.6 All surveys should be auditable and reproducible
This means that raw data, appropriately anonymised, should be available for any other
party nominated by the commissioning manager to check statistical assumptions,
calculations and inferential assessments as appropriate. The University will normally
carry out an „evidence trail‟ for a small number of selected specific conclusions in
each final report (see below).
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2.7 All qualitative surveys and associated reports will be clearly identified as such
and conclusions presented appropriately.
Focus groups, interviews and desk (document) reviews can make a significant
contribution to policy or organizational development and review. They are able to
identify emerging themes, patterns, perceptions and narratives. Appropriately
designed and executed they can provide thought-provoking suggestions and
possibilities which other methods fail to identify. However, such methods by their
very nature are open to the dangers of subjective interpretations, incomplete
summation and „spin‟. There is no reason in principle why these difficulties
cannot be overcome. Research suggests that such methods are least useful when the
consultant is unfamiliar with the vocabulary, cultures and practices of the target
population. This presents a particular challenge to consultants who can in principle
add value through externality and disinterest. In practical terms such methods present
further difficulties since (i) confidentiality and an ethical treatment of the participant‟s
contribution are paramount (ii) participants are not anonymous to the consultant, (iii)
the elicitation of the participant‟s views is conversational, (iv) in the case of focus
groups, the participants‟ contribution can reflect peer pressure and (v) in some
settings more vocal and more confident participants can generate more content and be
more influential. In some settings this can lead to some views from minority or less
powerful respondents being excluded and undervalued. Consultants should
demonstrate awareness of these limitations and put conclusions and recommendations
in an appropriate context. Presentation of results of qualitative research is an area of
particular difficulty due to the role of subjectivity, individuality, and particular
circumstances in which the views of participants are solicited. Normally, the
University will expect such methods at the early stages of a review to identify the
areas meriting further structured assessment through surveys or other methods.
Qualitative methods can support a wide range of activities and can add value on
topics during periods of change or which are subject to multiple stakeholder
perspectives.
This means that
Data from interviews and focus groups should not be presented as though they had
been collected via a quantitative survey.
Summaries, conclusions and recommendations based wholly or principally on
qualitative methods should normally indicate areas or issues for further systematic
structured work or robust analysis rather than be offered as definitive statements of
stakeholders‟ views in general.
Consultant research involving qualitative methods should indicate how they have
sought to ensure that issues around anonymity, „conversationalism‟, peer pressure and
inclusion have been addressed. It is acknowledged that these issues can never be
entirely eliminated but conclusions should reflect that fact.
Conclusions in qualitative research should be derived from the data as systematically
as with quantitative research. Clear contemporaneous notes should be made at the
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point of elicitation of participants‟ views such that they can normally be distinguished
from any subsequent interpretative work done on such notes.
It is good practice particularly in interview methods to allow the participant to check
that the interviewer has correctly recorded the views expressed. This can be done by
presenting a brief summary of main points.
Consultants should be able to demonstrate how conclusions and recommendations
follow from the data. The University will normally carry out an „evidence trail‟ for a
small number of selected specific conclusions in each final report while respecting the
confidentiality of the data.
Vague or casual statements such as „The view was expressed that X” or “Some
respondents did not wish to comment on topic Y” add little value and should be
avoided. Ideally the percentage of respondents in interviews indicating a specific view
should be highlighted where a precise question is asked and answer given. However,
this should not be used to give the impression of quantitative rigour where this is not
valid. Clear statements of “small minority”, “large minority” [i.e. less than half],
“majority”, “large majority”, “almost all” or “all” should be used. If other
conventions are used they should be clearly flagged up. Whatever conventions are
used they should be used consistently.
Reporting specific quotes from participants can be a good way a highlighting a key
issue in a manner which captures attention and help the reader relate to a perspective
other than their own. However there is a danger that these can skew perceptions
inappropriately. „Illustrative‟ quotes should be used sparingly and should be
representative. Report writers should avoid the temptation to foreground dramatic,
extreme, witty or pithy comments when they are not representative of majority
opinion 2.
Statements which are only true of a sub sample should not be presented as being true
of the sample as a whole. Equally, statements which are true of the sample as a whole
should not be presented as true only of a sub sample.
2.8 All consultancies will be evaluated and subject to audit
As part of a commitment to continuous improvement, the University will assess the
extent to which a consultancy brief has been met through a report from the
commissioning manager normally to the commissioning managers own manger.
2 Highlighting an unrepresentative but memorable quote early in a report but then presenting information that
indicates the view expressed is not necessarily representative - to cover the author - is particularly poor practice
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3.0 Financial Regulations
POLICY
3.1 The Financial Regulations of the University apply to all consultancy contracts let by
the University. Particularly important are those regulations pertaining to competition
and proof of value for money specifically:
(a)
Contracts over £5000 are let following at least three quotations being
obtained.
(b)
Contracts over £50,000 are subject to a formal tendering process involving a
minimum of four suppliers and the Group Executive Director of Finance‟
approval
(c)
Contracts over £173,000 are subject to an EU tendering process and the
University‟s approved authorisation levels.
Where such conditions apply that compliance with a) or b) is not possible or
impracticable then the approval of the Group Executive Director of Finance, via the
Head of Purchasing must be obtained prior to the placing of any purchase order or
contract (see 3.5). EU tenders are a legal requirement and as such the requirement
cannot be waived.
3.2 Contract signatures
The University part of any resultant contract can be signed by the Faculty/Service
approved signatory. For contracts greater than £5000, these can only be signed by the
Group Executive Director of Finance. Contracts for signature should be forwarded in
the first instance through the Head of Purchasing.
3.3 Teaching Services, and Contracts Involving Members of Staff
If it is proposed that existing staff members undertake additional duties outside their
job description, then advice should be sought, in the first instance, via Human
Resources, given that it is not University policy to engage existing staff on
consultancy contracts.
3.4 Standard Contract
The‟ Standard Contract for the Purchase of Consultancy‟ must be used for all
consultancy contracts over £1,000 in total value (repeat contracts where the sum of
the parts is over £1000 also require use of the contract). Requests for assistance with
variations or prospective alternative contracts should be addressed initially through
the Head of Purchasing.
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3.5 Single Source Tenders or Quotations
The Financial Regulations require that all contracts let between £5,000 and £50,000
are subject to the three-quotation rule. In the unlikely event of only one quotation
being obtained, a full written explanation stating the reasons for this should be sent to
the Head of Purchasing prior to any contract or order placement. The Head of
Purchasing will approve such contracts upon receipt of valid explanations.
3.6 Relationship with Prospective Suppliers
All members of staff are reminded of the University requirement for full disclosure of
any personal relationships with prospective suppliers at the earliest possible juncture.
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4.0 The Process: Hiring of Consultants
Prepare
Specification
Check if internal
resources are available
OVER
£50,000?
Send specification to prospective
consultants requesting quotation
(minimum of 3 written quotes
required)
No
Yes
Contact Purchasing Office to
Arrange formal tender
Receive and Assess
Responses
Meet with successful
candidate to discuss
aspects of contract
Prepare contract and
send to Head of Purchasing
if over £5k
Send signed contract to
consultant for signature
Once returned raise
PURCHASE ORDER ON
AGRESSO
Monitor contract against
deliverables, cost and timescales
As part of a commitment to continuous improvement, the University will assess the extent to which a
consultancy brief has been met through a report from the commissioning manager, normally to the
commissioning managers own manager.
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GUIDELINES
5.1 Introduction
The process of hiring external consultants can be difficult and resultant success of the
consultancy can hinge on the strength, accuracy and arrangement of detail in the
contract and contracting process.
5.2 Specification
The specification is a crucial part of any consultancy contract. This should contain:
1. A full brief for the prospective consultants outlining the University‟s
problem/needs/requirements.
2. Detail of the scope and type of advice required from the prospective
consultants.
3. Detail of any constraints which the University wishes to place on the
preferred solutions.
4. Lists of tasks which must be performed by both University and prospective
consultants.
5. Timescales for the consultancy contract including expected start and
completion dates.
6. A list of expected tangible deliverables from the prospective consultancy
(see points 4.7.1 and 4.9.1 for further details)
7. References where appropriate.
5.3 Internal Resources
Once the specification document is complete, it is very important to consider the
possibility of internal University resources providing solutions to the consultancy
requirement.
5.4 Preparation for Invitation to Quote/Tender
5.4.1. The Financial Regulations of the University dictate the route that should be followed
as the next step. Requirements where expected expenditure will be less than £50,000
can be covered by an invitation to quote. Requirements above this figure are subject
to a formal tendering requirement.
5.4.2. Invitation to quote will normally be instigated by letter. A copy of the specification
and a copy of the standard consultancy agreement should always be sent with the
letter. (See Standard Contract for the Purchase of Consultancy)
The letter should also contain the following statement:
“Any contract for consultancy resulting from this invitation will be covered only by
the terms and conditions attached. Other terms and conditions will not be accepted.”
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This has the effect of imposing the University contract at the earliest possible stage
and responses can then only be sent subject to our terms and conditions.
5.4.3. The letter should also formally request that the prospective consultant sets out in full
all charges for undertaking the work including:
1. A basis for the quoted fees.
2. A statement of total fees
3. Expenses: wherever possible all expenses should be an inclusive item
of the total fees. Wherever this is not possible, see note 4.11.1 for
further advice.
5.4.4 When engaging with an external consultant it is important to establish whether he/she
is VAT registered. If the consultant is VAT registered, VAT at the current rate will be
incurred on the services supplied to the University, in most circumstances. In most
cases the VAT will be a cost to the University (as the University cannot recover all of
the VAT it incurs), and therefore this needs to be considered when determining the
cost of a project. It is important to check the service contract with the consultant to
determine whether the fees charged are VAT inclusive or exclusive. Where the
consultant is not VAT registered, no VAT will be charged on their services to the
University.
5.4.5. Formal tenders are dealt with exclusively by the Purchasing Office and the Head of
Purchasing will have responsibility for ensuring the contract is sound and complete
i.e. minimising risk whilst ensuring expected benefits are delivered. Contact should
be made at the earliest possible opportunity (extension 2220) to commence the
tendering process, which can take up to 6 months.
5.5 The Tendering Process
There are several advantages and some misconceptions regarding the tendering
process where some clarification is beneficial:
1. The actual tendering process need not be a long process, and indeed can be faster
in some cases than a quotation exercise.
2. After the production of the specification, the Purchasing Office will undertake all
the work up to the point of assessing tender responses.
3. The formal tendering process can be used for any value of contract over £50,000
and can in certain instances be used for values below this amount.
4. There is greater security and safety in the tendering process in that it forces
suppliers to be very exact in their response.
Please consult with the Head of Purchasing who can advise upon the Tendering Procedures
(which can be found on the Purchasing Offices web site) for further information and assistance.
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5.6 Assessment of Responses
5.6.1. Assessment of responses to either a tender or quotation exercise should be carried out
against standard value for money criteria or technical merit as detailed within the
specification.
5.6.2. It may be necessary and in some cases advisable to request the potential supplier to
undertake a verbal presentation regarding their submission, in order for both parties to
clarify points and aspects of the intended contract. This is however entirely up to the
individual or working party overseeing the assessment part of the process.
5.7 Making a contract
Prior to award of contract, it will be necessary to undertake some final negotiation
with the prospective consultant. Points which require address could include:
1. Method of authorisation for any additional work above the billing (invoicing)
agreed for the original contract (if necessary).
2. Method of payment and billing.
3. Agree firm deliverables with the prospective consultant against which the success
of the consultancy can be measured (see Schedule A of the Consultancy
Agreement).
4. Confirm timescales (see Schedule A of the Consultancy Agreement)
5. Do you require the consultant to be exclusive to the University or to prevent them
from supplying similar services elsewhere? If so contact the Purchasing Office
who will obtain legal advice on your behalf.
5.8 Contract and Signature
5.8.1. Once both parties have agreed to all aspects of the consultancy and prior to raising a
purchase order, a consultancy agreement should be completed and sent to the Head of
Purchasing (See Standard Contract for the Purchase of Consultancy) who will arrange
Group Executive Director of Finance signature (refer to „Authorisation Levels‟).
5.8.2. Once signed the contract should then be sent to the supplier for signature and
following return a purchase order can be raised and issued.
5.9 Monitoring of Consultancy
It is important at stages of consultancies (particularly those of length in time) to assess
progress against deliverables, timescales and costs. It must be remembered that the
consultant has contracted to provide a timely and full service and any payment for
service rests and should be linked to your satisfaction with the results. A timely
warning if it is felt that targets are not being achieved may well rescue a situation,
turning a poor result into something more acceptable. Critical but constructive
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honesty should be welcomed by most consultants. Therefore, monitoring or contract
review meetings should always form part of the contract.
5.10 Contract extension
Any contract extension will necessarily change the terms and/or circumstances of the
original contract. The change could be in respect of payment, fees, agreed delivery
time, agreed deliverables, reporting mechanisms etc. The safest way of dealing with
this on a contractual basis is to agree and raise a new contract stating the new
arrangement. Any contract extensions shall be in compliance with the University‟s
Financial Regulations and EU Tender Regulations.
5.11 Travel expenses
Travel expenses should always be negotiated into the contract sum agreed to be paid
to the Consultant. On rare occasions this is not possible and it will be necessary to
agree to pay daily travel and subsistence expenses on top of the contract sum. Staff
are advised to use the current University travel expense allowances for staff as a
guideline to what can be considered a reasonable basis for negotiations (Appendix 1
for current rates), noting that expenses are revised annually. It is also important to
constantly monitor all Consultant expense claims insisting that receipts are rendered
with each invoiced claim
5.12 Assistance
Every form of assistance with any and all aspects of this contracting process is always
available from any member of the Purchasing Office.
6.0 Methods of payment
There are only two methods which should be used to facilitate payment to suppliers,
these being an Agresso purchase order / invoice or Procurement Card. When
contracting with Consultants the preferred method of processing a payment will be
through the Agresso Purchasing/Finance system, by the receipt of an invoice from the
Consultant.
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Appendix 1 (see point 5.11)
Current University staff rates are available on the Travel Office web site and are revised
annually
Travel Subsistence Rates
Please note that consultant‟s travel expenses should be negotiated as part of the overall price
package offered for the contract offered. Use of the above as an extra to a consultancy
contract should only be considered as a “special” or where extra work is to be undertaken
outside the contract. The above rates are presented as a guideline only, any rates agreed
should be “gross” and inclusive of VAT.
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Appendix 2
Advice on Differentiation between Employee and Self-Employed Status
Firstly, it must be emphasised that the distinction between a contract of employment and a
contract for services is very important. It affects whether a person is liable to pay income tax
under PAYE, the level of National insurance contributions paid, whether a person is entitled
to Statutory sick pay and whether the person has the employment protection and other rights
of an employee. The difficulty for employers in making this distinction is that even when
both parties explicitly agree that the contractual relationship between them is to have the
status of a contract for services rather than be governed by a contract of employment, this
agreement could be challenged by HMRC. Such a challenge could involve HMRC imposing
expensive financial penalties. In some purported self-employment cases the HMRC has
claimed arrears of PAYE from the employer on the grounds that the reality of the relationship
was that of employer and employee under a contract of employment. The University wishes
to minimise the risk of this situation arising and, accordingly, wishes to ensure that the
contractual arrangements entered into correctly reflect the status of that relationship as either
one of employment or self-employment.
This issue is not merely of hypothetical interest. In a recent case a University had to defend
itself at an Industrial Tribunal case brought by a person formerly engaged by that University
on a self-employed basis who claimed that in reality he was an employee of the University
and should, therefore, enjoy specific employment rights and protections. Correspondence was
also issued to the same University from the HMRC querying the self-employed status of
another individual paid by the University on a consultancy basis.
Unfortunately, there is no simple checklist of factors which allow the distinction between the
two categories of contractual relationships to be safely made. The courts have made
judgments on individual cases based on an overall assessment of all the relevant factors in a
particular case, accepting that not all the relevant factors are of equal weight or importance in
any given situation.
Being employed or self employed in one job does not mean that a person will have the same
status in another job. A consultant could be employed and self employed at the same time. It
is the responsibility of those engaging consultants to ascertain the correct status.
The HMRC do have a useful online tool to try;
https://esi2calculator.hmrc.gov.uk/esi/external-cod.html which provides a series of questions
for you to answer, and then provides a guide to the consultants status.
Employed or self-employed?
A consultant answering „Yes‟ to all of the following questions may indicate employee status.
1. Do you have to do the work yourself?
2. Can someone tell you at any time what to do, where to carry out the work or when and
how to do it?
3. Do you work a set amount of hours?
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4. Can someone move you from task to task?
5. Are you paid by the hour, week or month?
6. Can you get overtime pay or bonus payment?
A consultant answering „Yes‟ to all of the following questions may indicate self-employed
status.
1. Can you hire someone to do the work for you or engage helpers at your own expense?
2. Do you risk your own money?
3. Do you provide the main items of equipment you need to do your job, not just the small
tools many employees provide for themselves?
4. Do you agree to do a job for a fixed price regardless of how long the job may take?
5. Can you decide what work to do, how and when to do the work and where to provide the
services?
6. Do you regularly work for a number of different people?
7. Do you have to correct unsatisfactory work in your own time and at your own expense?
The general advice is that wherever there is an element of ambiguity about the status of a
proposed contractual relationship the University should commission the work under a
contract of employment so as to eliminate vulnerability to subsequent challenge by either the
HMRC or the DSS in respect of PAYE contributions or National Insurance contributions
respectively. Please do not hesitate to contact Margaret Good, the Payroll Manager (x 2213 /
MEGood@uclan.ac.uk) whenever you are in need of advice as to the appropriate nature of
any proposed contractual relationship.
Finally,
All formal offers of employment and contracts of employment may only be issued by Human
Resources (with the authority of the Head of Service).
and
When you propose to enter into a contract for services you must first send a new supplier
account request to the Purchasing Office.
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PURCHASING PROCEDURES
23 PURCHASING FLOW CART
Does a contract exist for the goods/services you wish to purchase?
Yes
Place your order by
Purchasing Card or on
Agresso
Don‟t know
Check on the Purchasing Office website
buyers guide
Buyers Guide
or call 2223/5 for advice
No
How much are you
spending singly or
cumulatively
excluding VAT?
Purchasing Card
Typically used for
stationery, mobile
phones and any “low
value, one-off”
purchases. Generally
limited to £1000 per
transaction and £5000
per month
Agresso
Ensure supplier set up on Agresso before ordering. To set a supplier
up complete form 1 and email to purchasing.
Your order should contain:
Price
Delivery date
Delivery charge if any
Delivery address
Detail your name and tel no for queries
Anything the supplier wishes you to quote on your order
e.g. ref no‟s.
Ensure that you only trade on the University‟s terms and conditions.
If a supplier wishes you to accept their conditions contact
Purchasing.
Up to £30 £31 - £5,000 £5,001 - £50,000 £50,001
upwards
Petty cash
or the
Purchasing
Card
should be
used.
Obtain an
estimated price
from the supplier
or contact
Purchasing to
obtain prices on
your behalf
Obtain 3 written
quotations on the
UCLan quote
form or complete
Purchasing
request form and
Purchasing will
obtain on your
behalf
Tender
procedure
contact
Purchasing
Office
as soon as
possible for
advice
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