Procedures for Approval of High Value Orders and Contract Awards
(The procedures outlined below do not apply to the Estates Directorate whose procurement practices are subject to its ‘Protocol for the Procurement of Supplies, Services and Works'.)
High Value Official Orders – Arrangements for Approval
In addition to approval of the official order by the Purchasing Office, orders which exceed £50,000 ex VAT in value are required to have approval by the Director of Finance, on behalf of the University Operating Board, as follows:
|
Threshold (ex VAT) for approval by University Operating Board (via Director of Finance) |
Order Type |
| £50,000 | Non-compliant Orders*: Supplies and Services |
| £100,000 | Compliant Orders: Supplies and Services |
* non-compliant orders are defined as official orders for the purchase of goods or services for which a competition has either been undertaken incorrectly or not at all.
Guidelines have been drawn up for use by the Purchasing team on what constitutes a compliant and non-compliant order. Any member of the team should therefore be able to advise users accordingly.
Contract Awards – Arrangements for Approval
The procedures for approval of the award, by the Purchasing Office, of call-off contracts or framework agreements are explained in the table below. A call-off contract refers to an arrangement with one or more suppliers for the delivery of supplies or services, over a pre-defined period, with a guaranteed level of business to each supplier. A framework agreement refers to an arrangement with one or more suppliers, over a pre-defined period, where no level of business is guaranteed and the choice of supplier is at the discretion of the end user on the basis of value for money.
|
Total Value of Contract including all possible extensions (ex VAT) |
Requirements for Approval of Contract Award |
| Up to £100,000 | Report requesting approval by Head of Purchasing |
| £100,000 and over | Report requesting approval by Director of Finance on behalf of the University Operating Board |
The total value of the contract will include all associated costs during the life of the contract. The figure will also take account of ongoing costs associated with a single purchase, for example, hardware or software maintenance costs.
The above procedures will apply equally to the use of an external contract from a source such as the Government Purchasing Service (GPS) or one of the regional purchasing consortia. Such decisions are taken only where it is deemed that to utilise such a contract would make economic sense in offering more benefits, or lower prices, than the University could achieve if it were to tender for the provision independently. It may also be on the basis that the University would reserve the right to conduct its own ‘mini competition' amongst the suppliers appointed to service a framework agreement.
