Policy & Procedures
Procurement Policy
1. Basis for Policy
This This policy is based on the National Public Procurement Policy Framework guidelines and EU Law as implemented in Statutory Instrument SI.329/06. It incorporates the EU Directive 2014/24. Commission Delegated Regulation (EU) 2017/2366 provides the basis for EU threshold limits. Circulars 02/16 have particular relevance for ICT procurement.
2. Applicability of Policy
The policy shall apply to all non-pay and capital procurement in the Institute, including items procured under financing arrangements such as rental agreements. Its aim is to achieve the best Value for Money for the Institute though it’s procurement process.
3. Purchasing Procedures
The Institute shall have a set of Purchasing Procedures, which shall be based on current best practice in the public sector and shall implement the Institute’s Procurement Policy. The Purchasing Procedures shall be approved by the President.
All procurement shall be processed through the Institutes Purchasing function in the respective offices on the Bishopstown Campus, Cork School of Music, Crawford College of Art & Design and the National Maritime College of Ireland in accordance with the Institute’s Purchasing Procedures.
This policy and the Purchasing Procedures apply to the CIT Innovation Company Ltd and Cosmos Education Ltd.
The Institute shall only recognize a commitment on foot of a validly issued Purchase Order from the Institutes Purchasing function, containing a Purchase Order Number, Description of the Goods or Services and the Amount of the commitment.
Where quotations are sought from suppliers, quotations should be in writing and appended to the requisition as a record of the process. Where quotations are sought from a number of suppliers, these quotation shall be sought at the same time.
4. Compliance
Failure to comply with the Procurement Policy and Purchasing Procedures shall be notified to the Vice President for Finance and Administration and in the case of serious non-compliance to the President. There are also specific reporting requirements to the Governing Body via the Finance Committee
5. Approval and Modification of the Procurement Policy
Any modification to the Procurement Policy shall require the approval of the Governing Body.
Non Pay Tenders
6. Tenders
Tenders for Goods, Services or works shall be sought by the Institute in accordance with the limits set out in this policy. All tenders will be published on the Government E-Procurement website: www.etenders.gov.ie
Where tenders are being sought, the tenders must be returned in sealed envelopes to the Purchasing Office, and endorsed with a title advised on the tender document. Tenders shall be opened in the presence of two officers and the details of each tender shall be recorded on a schedule of tenders.
7. Evaluation of Tenders
Tenders will be evaluated on the basis of the Most Economically Advantageous Tender. The criteria used for evaluating tenders shall be included in the published tender notice and listed in order of priority.
8. Confidentiality
The contents of a supplier’s tender document are confidential and, in no circumstances should details of one tender document be disclosed or discussed with another supplier.
9. Communication with Suppliers before closing date
Clarifications from supplier requested before the closing date are published on the tender website.
10. Communication with Suppliers after closing date
Any communications with suppliers after the closing date must be in writing and recorded on the tender file (e.g. where clarification of tender submitted is requested.) Any communication must be sent to all suppliers who have submitted a tender.
11. EU Tenders
With regards to EU Journal Tenders receipts will be issued to all submitting tenderers. All unsuccessful tenderers will be notified after the award of the contract.
12. Sole Supplier
Where a supplier is designated as sole supplier the budget holder shall complete and sign the appropriate form as provided for in the Purchasing Procedures.
13. Office of Government Procurement
The Institute will use national tender frameworks and other joint tenders as managed by the EPS / Office of Government Procurement, where they are applicable to the Institute, provided they are in compliance with National and EU Procurement requirements.
Miscellaneous Provisions
14. Specific Sub Contractor Requirements
All sub-contractors engaged by the Cork Institute of Technology to carry out services shall be required to forward insurance certificates, statements of compliance with safety and pension requirements and any tax reference number and/or other details as required by the Revenue Commissioners.
15. Sub-Contractor Legal Compliance
Sub-contractors shall comply with all legal and statutory requirements in relation to the provision of the services and the sub-contractor shall hold all licenses required by law for the provision of services.
16. RESOURCE CASE
A resource Case Form as provided in the Purchasing Procedures must be completed, where applicable, for all items with a total cost of ownership over €25,000. When calculating the cost this should include the purchase price, plus any installation, delivery charges, training, tied consumables to the same supplier and the ongoing maintenance over the life of the item.
Note: a Resource Case is not required for re-tendering existing goods or services, where budget has already been provided.
Requisition & Tender Limits
17. Requisition & Tender Limits
The following limits apply to the number of quotations to be sought, sending an item for tender and where the publicising of the tender need to be placed. All limits exclude VAT.
Full contract value of Procurement
EUR
One written quotation with details to be attached to requisition
Up to €5,000
Three written quotations required, to be attached to requisition
€5,000 to
€25,000
Five written quotations required, to be attached to requisition
for works only.
€25,000 to
€50,000
Tender document advertised on www.etenders.gov.ie and
Pro Forma Business Case prepared
(see par 18)
Over €25,000
European Journal (OJEU)
Advertisement (see par 19)
Over
€221,000
20. Applicability of Tender Limits
€25,000 refers to the total cost of ownership and NOT the purchase price of the goods or services. The total cost of ownership includes the purchase price, delivery charges, installation, training, tied consumable cost and ongoing maintenance costs over the lifetime of the item being purchased. A Resource Case must be completed in for new budget requests. It is not required for re-tender existing services, or where budget has been allocated.
21. EU Limits
EU notified limits per Directive 2014/24/EU as updated by Commission Delegated Regulation (EU) 2017/2366 in place from 1/1/18 to 31/12/19 are €221,000 for services and supplies and €5,548,000 for works.
Reporting Requirements
22. Reporting Requirements
The Finance Committee of the Governing Body shall review a report on procurement containing the following information at each meeting:
- List of all tenders awarded in excess of €200,000 for information purposes
- List of all tenders awarded that are not compliant with this Procurement Policy accompanied by an explanation
- List of all tender between €25,000 and €200,000 by exception, where a procurement issue may arise or that may not be fully compliant, accompanied by an explanation of the issue.
23. ICT Reporting Requirements
Circular IT 02/16 requires that all projected ICT expenditure should be compliant with the content of the circular and in particular a report on planned ICT expenditure for the year must be submitted by February each year along with actual ICT expenditure for the previous year to the Department of Public Expenditure and Reform.
24. Approval of Policy
This Procurement Policy was approved by the Governing Body on 12th April 2018
with an effective date of 1st January 2018
This document should be read in conjunction with the Institute’s Purchasing Procedures below
Purchasing Procedures
1. Purpose and Applicability
These procedures implement the Institutes Procurement Policy as approved by the Governing Body. These procedures apply to all Institute Non-Pay expenditure irrespective of funding source. These procedures also apply to the CIT Innovation Centre Ltd and Cosmos Education Ltd.
2. Non Pay Budgets
The President of the Institute shall determine in respect of that year the non-pay budget in respect of the various areas represented on the Institutes Executive Board (IEB) and shall notify them in writing of their budget for that year.
Each member of the IEB will allocate their non-pay budget to the various cost centres for which they are responsible. In consultation with the various budget holders they will breakdown their respective budgets into various cost headings, including (but not limited to): Materials, Travel, Library, Maintenance, Staff Development, Capital Items etc.
Non Pay Budgets for non-mainscheme activities, (such as research & development, contracts and other self financing activities) shall be consistent with the terms of the grant award / contract and shall be for the entire duration of the activity.
Each month the Finance Office shall prepare and circulate a statement for each cost centre, in relation to the period up to the last day of the preceding month showing for each cost heading, the budget, the cumulative amount committed up to that month and the balance remaining which has not been committed.
3. Ordering Procedure
A requisition must be submitted the Institutes purchasing function for all expenditure and must be approved by the relevant Budget Holder.
All orders are subject to limits as set out in the Procurement Policy and require a specified number of quotations or are advertised on e-tenders.gov.ie
A Purchase Order will shall be issued from the Institute’s purchasing function in respect of items which are compliant with these procedures and this creates the commitment against the nominated budget.
Specific recurring items that are subject to agreements, such as utility bills, insurances, postage and premises rental do not require a Purchase Order to be raised.
Fixed Assets are decided by Value/Description and the Purchasing Officer allocates an Asset Code from the Accounts System Fixed Assets Register as required.
4. Processing of Purchase Orders
All orders must be processed in the Institutes Purchasing function in the respective location; Bishopstown Campus, Cork School of Music, Crawford College of Art & Design and the National Maritime College of Ireland. Orders from the CIT Innovation Centre Ltd and Cosmos Education Ltd are processed through their respective companies.
5. Independence of Procurement Process
The Institute will avoid giving or receiving gifts, hospitality, preferential treatment or benefits which might affect or appear to affect the procurement process or the Institute’s ability to make independent judgement on business transactions
6. Authorisation of Requisitions
Requisitions are generally signed by two people. The person requesting the expenditure who is the primary contact for queries and deliveries and it is authorized by budget holder. There is no limit on the value of items that can be requisitioned. It is however constrained by available budget, adherence to the correct number of quotations or tender per the Procurement Policy and the Purchase Order authorization.
7. Authorisation of Purchase Orders
The authorization of a Purchase Order is a finance function and is required prior to committing the Institute to any expenditure with a supplier. The authorization is based on the source of funds and the value of the order and the location of the requisitioning cost centre. Order with higher limits must be approved at the lower limits before being forwarded to the next approver. This is handled automatically on the finance system.
For Purchase Orders values up to €3,000 the following authorization is required:
- Building Unit Funding (C cost centres) Purchasing Officer
- Self Financing (P & SF cost centres) Self Financing Office
- Student Services (SS cost centres) Purchasing Officer
- Mainscheme (D cost centres)
- Bishopstown Purchasing Officer
- CCAD CCAD Finance
- CSM CSM Finance
- NMCI NMCI Finance
For Purchase Order values over €3,000 the following authorization is required:
- Between €3,000 and €10,000 Purchasing Officer
- Between €10,000 and €50,000 Finance Manager
- Over €50,000 VP Finance & Administration
8. Sole Suppliers
Where there is a sole supplier for specific goods or services, the Sole Supplier Declaration in Appendix A should be completed and attached to the Requisition.
Sole Supplier Declarations cannot be used to limit the supply of generic goods or services to a particular, supplier, brand or product. Communication from the company stating they are a sole supplier should not be taken at face value as alternative products or brands may be available.
9. Pro Forma Business Case
A Pro forma Business Case Form as provided in Appendix B must be completed for all items with a total cost of ownership likely to exceed €25,000. When calculating the cost this should include the purchase price, plus any installation, delivery charges, training, tied consumables to the same supplier, energy efficiency and consumption and ongoing maintenance over the life of the item.
This business case must be submitted to the Purchasing Officer for consideration in advance of any requisition or work commencing on a potential tender.
The Purchasing Officer may contact relevant staff for opinion on the business case and may refer business cases of strategic expenditure to Finance Manager for consideration and approval.
If the Business Case is approved, the Purchasing Officer informs the relevant Budget Holder and work on the tender preparation may then proceed.
10. Tenders
Tenders for the goods/services shall be sought by the Purchasing Office (Bishopstown), in accordance with the provisions of the Procurement Policy.
Tenders shall be referred to the Requisitioner, for evaluation who will decide on the suitability of goods/services quoted for and return tenders with a decision and appropriate comments to the Purchasing Office.
Tenders will be evaluated on the basis of the Most Economically Advantageous Tender. The criteria used for evaluating tenders shall be included in the published tender notice and listed in order of priority
Any tender file leaving the Purchasing Office must be signed for and returned with all information. This includes any contact with companies. (Please refer the Procurement Policy with regard to communication with suppliers.)
The relevant Budget Holder shall ensure that the commitment does not cause the total commitment to date to exceed their approved budget. The Finance Office will perform a budget check.
If the source of funding for the goods or services is funded by EU Structural Funds then the appropriate reference and logos should appear on the tender notice.
Tenders for plant, vehicles, equipment, and premises refurbishment with an energy use (eg. lighting), will ensure that the energy efficiency and consumption are considered as part of the tender process and where appropriate may be included in the tender evaluation.
11. Compliance
All expenditure must comply with the above procedures. Non compliance is brought to the attention of the Finance Manager, who will notify the Vice President for Finance and Administration of material cases. Serious cases are brought to the attention of the President. Details of non-compliance may be included in an audit file.
12. Allocation of Expenditure
Nothing in the above procedures shall prevent the President from directing that expenditure be committed from the appropriate budgets of a Department or Cost Centre in respect of items which he deems to be necessary for the satisfactory operation of that Department.
13. Specific Sub Contractor Requirements
All sub-contractors engaged by the Cork Institute of Technology to carry out services shall be required to forward insurance certificates, statements of compliance with safety and pension requirements and any tax reference number and/or other details as required by the Revenue Commissioners. This includes copies of their current Public Liability Policy and Employers Liability Policy prior to carrying out any works.
14. Hospitality
Hospitality should be: (1) incurred wholly, necessarily & exclusively for business purposes AND (2) vouched by a detailed invoice. Prior apprvoal is required. Please refer to the Hospitality & Entertainment Procedures for further information.
15. Alcoholic Drink
In general the Institute does not reimburse staff for alcoholic drink bills. Any invoice which includes alcohol is automatically referred to the Finance Manager for approval. Please refer to the Hospitality & Entertainment Procedures for further information.
16. Changes to Procedures
The above procedures may be modified from time to time by the President in accordance with the Procurement Policy.
17. Approval.
These procedures were approved by Mr Paul Gallagher, Vice President for Finance & Administration on 1st September 2017
