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Procurement Board approval for use of a non-endorsed Supplier Procedure (Australia)

Parent Policy

Procurement Policy

This document covers the procedure to be followed to seek approval from the Procurement Board to use a non-endorsed Supplier.

Monash University has negotiated a number of strategic University-wide supply contracts for many common use goods and services. These contracts are classified into two discrete categories requiring varying degrees of compliance.

  1. Strategic contracts: Contracts where full compliance is required and it is mandatory to use the contracted Suppliers for reasons of safety, duty of care, technical, policy, quality or cost.
    Some examples of strategic contracts in place are: Electricity, water, hazardous materials, communications carriers, fleet, fuel, domestic mail, travel, building contractors, security services, University-wide software site licenses, stationery and office furniture.
  2. Endorsed Supplier contracts: An on-going Supply Contract where the default assumption is that compliance is required. However, a Cost Centre can opt out of using an Endorsed Supplier if it can demonstrate; to the Procurement Board, evidence of a distinct and sustainable advantage in using an alternate supplier or where the Endorsed Supplier cannot meet the specific requirements.
    Some examples of Endorsed Supplier contracts/agreements in place are: Printing services, mailhouse services, desktop IT equipment, mobile phones, bottled water, car rental, industrial gases, temporary staffing, boxed software, MFDs/photocopiers, data projectors and couriers.

The selection of a Strategic or Endorsed Supplier is a consequence of the University conducting a formal, competitive Tender process overseen by a Tender Panel. The recommendation of the Tender Panel to engage the Supplier as a Strategic or Endorsed Supplier, and to enter into a formal contract, requires the approval of the Procurement Board.

Definition of terms

Best Value for Money Outcome (BVMO): The outcome that gives the best value for money for the University. Not necessarily the lowest price or the result that just delivers the lowest cost for a department or Cost Centre. In many instances the selection of a Supplier should take into account other considerations such as the lowest overall Total Cost of Ownership (TCO) giving due consideration the total cost to the University whilst we own the products and covers other factors not exclusive to purchase price.
Monash Procurement / Procurement: Monash University’s Procurement unit that co-ordinates the University’s strategic procurement activities, organises major supply agreements for common use goods and acts as an advisory body for procurement related matters.
On-going Supply Contract: A contract or agreement between the Buyer and Supplier that covers the on-going supply of goods/services over a nominated period. Individual purchases can be made against an On-going Supply Contract by either setting up standing Purchase Orders that “call-off” the Contract or by raising individual Purchase Orders that reference prices contained in the Contract. An On-going Supply Contract is usually arranged between “Endorsed Suppliers” for the supply of common use goods by all Cost Centres.
Purchase Order: A formal document initiated by a Buyer and forwarded to a Supplier normally used to form the basis of a one-off contract between the parties for the supply of Goods and/or services to the Buyer.
Quotation / Quote: A submission from a Supplier that specifies the cost of supplying a good or service. Similar to a Bid.
Requesting Officer: A University Officer that seeks approval from the Procurement Board to use a non-Endorsed Supplier.
Supplier: A person or organisation that can provide goods or services to a buyer.
Tender: A competitive process, initiated by an RFQ, RFT or RFP, used to seek Bids from a Supplier with the aim of eventually acquiring goods/services for a Buyer.
Tender Panel: A Tender Panel made up of at least three persons (usually University Officers) that have adequate technical knowledge, operational knowledge and background to conduct a Tender process for the specific the goods / services sought in the Tender.
Tender Threshold Value: The level (e.g. monetary value) prescribed by the University whereby a University Buyer must issue an RFT or RFP seeking at least three competitive Bids from Suppliers for the proposed supply of goods or services.
Tenderlink: The Internet-based, online tendering portal that is used by Monash University for the issuance of tender documents such as an RFQ, RFT, RFP, ROI or EOI. Suppliers are required to submit their formal response to a tender document by online lodgement in a Locked Tender box accessed via the Tenderlink portal.

seeking Procurement Board approval to use a non-endorsed Supplier

Complete the Non-Endorsed Supplier form; available from Procurement website at http://www.adm.monash.edu.au/procserv/ with a clear explanation of why the Endorsed Supplier cannot meet their requirements and the advantage of using an alternate supplier. The approval of the Procurement Board must take place before approaching or committing to a non-Endorsed Supplier.

Responsibility

Requesting Officer

The completed form can be lodged with Monash Procurement who will arrange for this to be sent to the Secretary of the Procurement Board for discussion at next Procurement Board Meeting. The Procurement Board may invite the Requesting Officer to attend and present their request in person.

Responsibility

Procurement Director or Procurement Officer

At its next scheduled meeting, the Procurement Board will assess the submission, with due regard to the sustainable benefits of allowing the proposed alternate supplier to be used, and the consequence in regard to the effect on agreements in place with the Endorsed Supplier(s).

Responsibility

Procurement Board

The role of the Procurement Board will be to assess if there is a genuine case for the on-going use of an alternative supplier based on an Endorsed Supplier(s) inability to meet a particular need or where there may be a long-term financial disadvantage to a Cost Centre. It is not intended that the Procurement Board will judge on competitive quotations on a case-by-case basis. As there is usually a need for expediency on such purchases, issues based on price competitiveness can be raised directly with the Procurement Director.

Responsibility

Procurement Board

The resultant decision from Procurement Board will be communicated back to Requesting Officer following meeting. Note that the Procurement Board normally meets on a bi-monthly basis. If approval is granted to a Cost Centre to use an alternate supplier, in deference to an Endorsed Supplier, the decision will not automatically flow on to other Cost Centres. Further, approval to use an alternate supplier, if granted, will not result in that supplier being awarded Endorsed Supplier status.

Responsibility

Procurement Director

Contact Person: Finance Policy