Policy: Procurement Policy

The procedures and methods adopted for procurement at the University should be, and should be seen to be, beyond reproach.  This will be achieved when:

• all who are able to do business with the University are given the opportunity to do so;
• the University maintains a reputation for fair dealing in its arrangements with suppliers;
• value for money is achieved when prices paid are the most competitive obtainable, subject to availability, suitability and quality; and
• All University staff involved in the procurement process act in an ethical and business like manner, and avoidance of conflicts of interest or perceptions of bias is paramount (see http://info.anu.edu.au/Policies/_DRO/Policies/Conflict_of_Interest.asp)

This policy applies to the procurement of goods and services, and associated contracts, of all kinds across the University including:

• general or specialised goods, services and equipment required by individual Colleges, Schools, Centres, administration and service areas;
• consultancies and professional services;
• construction and related services including projects managed by Facilities & Services, ANU Exchange developments or as directed by the Vice Chancellor, Finance Committee or ANU Council;
• services from public utilities; and
• property sale or purchase.

The core principles that underpin the University’s procurement policy are outlined as follows:

Value for Money

Value for money is the fundamental principle underlying University procurement.  In a procurement process this principle requires a comparative analysis of all relevant costs and benefits of each proposal throughout the whole procurement cycle.

Procurement Ethics

The Code of Ethics that applies to the University is premised on the belief that all University staff that are involved in procurement must possess a highly developed sense of professional ethics and an unimpeachable standard of personal integrity.

Procurement Conduct

The University seeks to conduct its procurement business in a manner that respects the rights of suppliers and avoids challenge.

University staff associated with procurement, particularly those dealing directly with suppliers, must:

• recognise and deal with conflicts of interest (including perceived conflicts of interest);
• deal with suppliers and potential suppliers even-handedly;
• seek advice where probity issues arise;
• protect the confidentiality and privacy of personal and commercial information;
• ensure their processes are open and transparent;
• not engage in misleading or deceptive conduct;
• not transact with suppliers for unauthorised private and business use;
• not compromise the University’s standing or the integrity of its procurement activities through acceptance of gifts or hospitality;
• be scrupulous and accountable in their use of University resources; and
• have regard to the quotation and tender requirements associated with the University’s procurement threshold principles (see below).

Compliance with Government Legislation

University procurement and contracting activities must comply with Commonwealth, State and Territory government legislation.  For the most part, this requirement will be reflected in the University’s own procurement policy and procedures.  University purchasers should be aware, however, that there might be specific legislative requirements impacting on their particular procurement activities.

Environment Strategy

The University seeks to ensure that its procurement processes actively support the University’s environmental policies.  Positive environmental outcomes can be achieved in procurement through the promotion of environmental standards, energy efficiency, re-use, recycling, disposal practices and natural resource conservation.

Occupational Health and Safety Considerations

The University must comply with the Occupational Health and Safety (Commonwealth Employment) Act 1991, (as amended from time to time), and other legislation, national standards and codes of practice to ensure that the workplace is, as far as reasonably practicable, safe and healthy for staff, students and visitors.  It is important that the Occupational Health and Safety issues be considered before and during any procurement.

Risk Management

Managing risk is fundamental to the University’s procurement processes.  The University adopts a systematic approach to identifying, analysing, evaluating, treating and monitoring procurement and contracting risks.  Its policy is to share risks, assigning responsibility for each particular risk to the party best able to manage it.

This includes, undertaking for all tendering processes a probity checklist and where necessary undertaking a full risk assessment and consideration of a the appointment of a probity advisor for:

• procurement projects greater than $20 million;
• procurement projects where there is a conflict of interest; or
• as directed by the Vice Chancellor, Finance Committee or ANU Council.

Probity Plan

The ANU's probity plan will help to ensure that all purchasing is managed in an open and tranparent manner. 

Regard should be had to the ANU probity Plan, and the ANU probity checklist.

Procurement Thresholds

The University has a series of thresholds detailing when quotations, purchase orders and tender processes must be undertaken.  Please refer to http://info.anu.edu.au/fbs/Business_Functions/Purchasing_and_Contracts_Office/Policies_and_Processes/_purchasing_thresholds_for_publication.pdf 

to see the procurement thresholds that are effective from 1 October 2007.