The Procurement Policy, together with the How to Procure Map, ProcureRight Instructions and a suite of Procurement documents and templates (see Section 7 Key Related Documents), specifies the principles by which Macquarie University and its controlled entities (the University) will execute and manage all procurement activities.
This Policy, together with the How to Procure Map, ProcureRight Instructions and a suite of Procurement documents and templates (see Section 7 Key Related Documents), specifies the principles by which Macquarie University and its controlled entities (the University) will execute and manage all procurement activities.
All of the University’s procurement activities and associated expenditure of funds (including research and other grants) are governed by the requirements and standards of integrity, fairness, accountability, sustainability, open and effective competition, and value for money. These requirements and standards are embedded within the Policy and associated procedures and processes, and have been designed to ensure compliance with the requirements of the Government Information (Public Access) Act 2009 (NSW) and other relevant legislation (see Section 6 Relevant Legislation).
This Policy applies to all professional, academic, and research staff, all staff of controlled entities, and all contractors, across all campuses and locations of the University, who are authorised to spend or use the University’s funds (including research and other grants) to acquire or lease goods or services, including infrastructure and capital works, from external organisations.
Commonly defined terms can be found in the University Glossary.
The following definitions apply for the purpose of this Policy:
Capital Works: building and engineering works that create an asset, as well as constructing or installing facilities and fixtures associated with, and forming an integral part of those works.
Good/s: a tangible, physical item required and then consumed or used by the buyer.
Infrastructure: physical structures and facilities (eg buildings, roads, power supplies) required for the operation of the University.
Preferred Supplier: a supplier of goods or services to the University appointed as a result of a tender or other selection process in accordance with this Policy and approved by Strategic Procurement.
Procurement: the overarching process by which the University acquires goods or services, including infrastructure and capital works, from external organisations.
Procurement Project Lead: a University representative responsible for the management and completion of a specific procurement activity.
Purchasing: the act of buying goods or services, including infrastructure and capital works, from external organisations.
RF(x): a collective term for Request for Information/Proposal/Tender/Quote.
Service/s: the intangible, non-physical requirements that the supplier completes as part of the agreement, typically utilising either a human being (eg maintenance services) or a technology system (eg data analytics).
Strategic Procurement: the business unit within Finance responsible for the governance and oversight of all procurement activities.
Total Contract Value (TCV): the total expected direct spend/cost (AUD) of the goods or services, including infrastructure and capital works, over the life of the contract/purchase order, including the purchase price, extension options and any other costs (eg maintenance included within the agreed terms and conditions) but excluding GST.
University: means Macquarie University and its controlled entities.
University Document Control and Management System: means Truth, the University's secure repository for operational documents and records for staff.
5 POLICY STATEMENT
5.1 University Commitment to Value, Probity, Fairness, and Transparency
The University seeks value for money in procurement through balanced judgement of a range of financial and non-financial factors. All procurement activities undertaken by the University must be conducted in an ethical, sustainable, and transparent manner in accordance with this Policy.
5.2 Delegations of Authority
All procurement activities must be carried out in accordance with the University’s Delegations of Authority.
5.3 Pre-procurement Risk Assessment
Prior to the commencement of any procurement activity, consideration must be given to whether it may:
- negatively impact the University’s reputation and/or student experience,
- limit the University’s current or future partnerships or research opportunities,
- result in a significant restructure of people or processes,
- involve sending any personal information of staff, students, patients, or research participants to a supplier,
- require specific and/or additional real estate,
- create risk involving the following: noise, fumes, gas, explosives, live flames, hazardous chemicals, electrical/moving mechanical parts, or any other dangerous exposure,
- include human or animal tissues used in human research,
- cause exposure to a biosecurity hazard.
If any of the above considerations are present, prior to the commencement of the procurement activity the Procurement Project Lead must complete the Pre-Procurement Risk Assessment Checklist and follow the prescribed approval process.
5.4 Preferred suppliers
Where the University has contracted with Preferred Suppliers, these suppliers must be used wherever possible for the designated purchasing categories. The list of University preferred suppliers is available on the Preferred suppliers webpage.
5.5 How to Procure Map
The How to Procure Map specifies the steps that must be followed depending on the nature and size of the procurement activity.
Once the risks specified in Section 5.3 have been considered, the Procurement Project Lead must review the How to Procure Map to identify the correct steps and documentation to be used to complete the procurement activity. Each procurement activity will require the accurate completion of specific documentation defined by the type of goods, services, infrastructure or capital worksbeing acquired/leased and the expected Total Contract Value (TCV).
5.6 Standard Suite of Procurement Documents and Templates
All procurement activities must be undertaken using the University’s standard suite of procurement documents and templates (see Section 7 Key Related Documents). Following the steps specified in the How to Procure Map and ProcureRight Instructions will ensure compliance with this requirement. Any exceptions to this must be approved by the Group Director – Strategic Procurement.
5.7 Contracting Terms and Conditions
Where the How to Procure Map indicates that an RF(x) is required, the Procurement Project Lead must ensure that the appropriate Standard University Contract Terms template is included in all RF(x) documentation to inform all invited suppliers of the terms and conditions under which they will be required to contract and to assess the level of suppliers’ compliance with the proposed terms and conditions as part of the RF(x) evaluation.
Where departures from the University terms and conditions are made or where external supplier terms and conditions are used, the Procurement Project Lead must consult with the Office of General Counsel or Strategic Procurement prior to establishing the contract.
Post RF(x), the Procurement Project Lead must facilitate the establishment, negotiation and execution of the final contract between the University and the selected supplier.
5.8 Procurement Close Out
To comply with the Government Information (Public Access) (GIPA) and Public Finance and Audit legislation, where a Procurement Lite or Procurement Strategic process has been undertaken, the Procurement Project Lead must save all final RF(x) related documentation in a secure location, save a copy of a duly executed contract in the University Document Control and Management System, and submit links to both locations to Procurement@mq.edu.au.
6 RELEVANT LEGISLATION
Government Information (Public Access) Act 2009 (NSW) (GIPA)
Public Works and Procurement Act 1912 (NSW) (PWP Act)
Independent Commission Against Corruption Act 1988 (NSW)
Public Finance and Audit Act 1983 (NSW)
Australia and New Zealand Government Procurement Agreement (ANZGPA)
7 KEY RELATED DOCUMENTS
- Pre-procurement Risk Assessment Checklist
- Sole or Single Source Justification form
- RF(x) templates
- Procurement Lite and Procurement Strategic suites
- Legal Services Request form
- Conflict of Interest declaration
Group Director Strategic Procurement
Group Director Strategic Procurement
Vice-President, Finance and Group Chief Financial Officer
26 August 2019
Date of Commencement
2 September 2019
Date for Review
Documents Superseded by this Policy
Procurement Handbook approved August 2013 by the Office of General Counsel and Office of Financial Services, and all subsequent versions of the Handbook.
28 October 2019 – Minor amendment to ‘How to Procure Map’ – new version uploaded.