Project procurement
Early engagement with the procurement team is vital to the success of your project. Any project costs will need to be signed off by finance as part of your Project Mandate so procurement and the life cycle cost of your project need to be considered. The below guidance applies to all projects at the University, for further information please refer to the financial regulations.
Central Procurement Unit (CPU)
The basic steps involved in the broader definition of procurement are:
- Establish the user's need
- Survey the market place
- Specify a realistic requirement
- Seek tenders for supply
- Assess tenders and choose supplier
- Access the goods into service (commissioning)
- Manage the new supplier
The Central Procurement Unit should be involved in all of the aforementioned stages as it is the complete process which delivers value, not an isolated step.
Procurement requirements
When procuring supplies for the University staff must:
- use value for money as the main consideration in purchasing decisions rather than price, choosing supplies of an appropriate quality for the way in which they will be used. ‘Value for money’ is determined as an approach regarding each purchase decision, rather than price as the only major consideration prior to placing an official order
- calculate the total cost of ownership over the life of the contract
- consider the impact on the carbon footprint within the tender documentation and during the assessment process (the Carbon Change Advisor in the Estates Section can help you with this)
- uphold the University’s regulations on standards of behaviour and conflicts of interest and abide by the requirements of the 2010 Bribery Act
- consider the level of risk involved in the project – eg TUPE implications, sensitive data; and
- meet the University’s obligations and ensure against discrimination on the grounds of any protected characteristic under equalities legislation specified in the University Equality and Diversity Policy Statement. (Protected characteristics are: age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; gender and sexual orientation)
Due to the large sums of money involved, major acquisitions may adopt a phased approach that ensures requirements are appropriately defined, and related risks are more easily addressed, however the processes detailed in the financial regulations should be followed.
The table below shows the approved procurement route for goods and services within threshold limits. Where there are regular purchases from the same or similar suppliers the total spend over four years should be estimated and checked against the threshold.
| Value | Approach |
| £1 - £3,000 | Prices should be obtained by referring to the Supplier’s Price list, by hardcopy or online catalogue, or by telephone. |
| > £3,000 - £10,000 | Two written quotations. In the event that quotes cannot be obtained by one or more suppliers – the head of Department is required to approve the order (utilisation of CPU Request for Quote documentation). |
| > £10,000 - £25,000 | Three written quotations. In the event that quotes cannot be obtained by one or more suppliers – the head of Department or section is required to approve the order (utilisation of CPU Request for Quote documentation). (See 9.2 re single source requests) |
| > £25,000 - £150,000 | Guidance must be sought from CPU. A competitive tendering process performed by CPU in conjunction with the key stakeholder will be the default route to market. |
| £150,000+ | Guidance must be sought from CPU. A competitive tendering process performed by CPU in conjunction with the key stakeholder will be the default route to market. The process will usually involve a two stage process which will include a pre-qualification stage and a subsequent tender stage. The opportunity will be advertised to the wider market. |
Goods and services
As the Project Manager you will most likely be the budget holder for your project, as such it is your responsibility to ensure that any funds delegated to you are:
- applied appropriately in the best interest of the project
- ensure that value for money is the main consideration rather than price
- consider the lifecycle cost of the product or service
- use funds in a way that complies with financial regulations, financial procedure notes and purchasing regulations
- goods and services are properly coded and recorded with complete documentation providing a full audit trail
- goods and services procured are delivered and held on University premises
- ensure expenditure does not exceed funds and the overall available budget without the appropriate change measures being put in place
This guide is designed to give you a high level understanding of procurement processes. Please contact the CPU on procure@essex.ac.uk if you have any queries and early engagement is always appreciated.
