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Procurement Fundamentals

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Procurement Fundamentals – Upper Glasgow Council

 

1. Purpose

To establish clear principles, processes, and responsibilities for the procurement of goods, services, and works, ensuring value for money, transparency, probity, and compliance with all relevant legislation.

 

2. Scope

This policy applies to all procurement activities undertaken by Council staff, contractors, and agents, and covers all purchasing, tendering, and contracting activities.

 

3. Policy Statement

Council procurement will:

  • Promote open and fair competition.

  • Deliver value for money, considering whole-of-life costs and non-cost factors.

  • Ensure accountability and transparency.

  • Uphold ethical behaviour and probity.

  • Support local economic, social, and environmental sustainability.

 

4. Legislative and Policy Framework

  • Local Government Act 1993 (or relevant jurisdictional equivalent).

  • Local Government (General) Regulation 2021.

  • Council’s Code of Conduct.

  • Relevant state and federal procurement guidelines.

 

5. Definitions

Include clear definitions for key terms such as “value for money,” “probity,” “local supplier,” “conflict of interest,” and “commercial in confidence”.

 

6. Procurement Principles

  • Value for Money: Consider both cost and non-cost factors (quality, service, sustainability).

  • Open and Effective Competition: Use appropriate procurement methods based on thresholds.

  • Ethical Behaviour: Avoid conflicts of interest; maintain impartiality.

  • Risk Management: Identify and mitigate procurement risks.

  • Sustainability: Incorporate environmental and social objectives.

  • Compliance: Adhere to all legislative and policy requirements.

 

7. Procurement Methods and Thresholds

  • Direct Purchase: For low-value, low-risk items.

  • Request for Quotation (RFQ): For medium-value procurements.

  • Public Tender: For high-value or complex procurements.

  • Collaborative Procurement: Where beneficial, collaborate with other councils or public bodies.

  • Exemptions: Clearly state any exemptions and required justifications.

 

8. Delegations and Authorisations

  • Define financial delegations and approval authorities for procurement decisions.

  • Ensure segregation of duties and clear accountability.

 

9. Evaluation and Contract Award

  • Assess bids against published criteria (price, quality, sustainability, risk).

  • Document all decisions for auditability.

  • Ensure contract management and supplier performance monitoring.

 

10. Local and Social Procurement

  • Encourage participation by local suppliers and SMEs.

  • Define “local supplier” and outline local weighting criteria.

  • Promote social and environmental outcomes where possible.

 

11. Probity and Ethical Conduct

  • Require declarations of interest and annual disclosure statements.

  • Provide training for staff involved in procurement.

  • Establish protocols for emergency procurement.

 

12. Continuous Improvement

  • Regularly review and update the policy based on audits, legislative changes, and sector feedback.

 

13. Templates and Tools

  • Attach or reference templates for RFQs, tenders, evaluation, risk assessment, and conflict of interest declarations.

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