Procurement Policy

Contents

SECTION 1 – OVERVIEW

1.1.1 Introduction

1.1.2 Procurement Essential Requirements

SECTION 2 – GOVERNANCE

2.1 Procurement Board

2.2 Conflict of Interest

2.3 Internal and External Appraisal

2.4 Reports, Statistics, and Key Performance Indicators

2.5 Spending Funds

2.6 Procurement Training and Guidance

2.7 Payments to Suppliers

2.8 Payment in Advance

2.9 Retention of Documents

2.10 Information Security

2.11 Failure to Comply

SECTION 3 – APPENDICES

APPENDIX 1: PROCUREMENT PRINCIPLES

1.1.1 Regulatory Compliance

1.1.2 Strategic Spend Management

1.1.3 Monitoring and Aggregation

1.1.4 Risk Management

1.1.5 MAT Approach

1.1.6 Collaborative Purchasing

1.1.7 Fairness and Transparency

1.1.8 Market Analysis

1.1.9 Sustainability and Equality

1.1.10 Health and Safety Compliance

1.1.11 Supplier Code of Conduct

1.1.12 Responsible Procurement

APPENDIX 2: PROCUREMENT PROCESSES

1. Thresholds and Contracts

2. Contract Signatures

3. Single Action Waivers (SAWs)

4. Terms & Conditions of Contract

5. Suppliers

6. Purchasing Cards

7. Market Intelligence and Analysis

8. Determining the Contract Value

9. Frameworks

10. Spend Analysis

11. Tender Specification Documentation

12. Tendering Process

13. Tender Report

14. Risk Management

15. Due Diligence

16. Supplier Code of Conduct

17. Contract and Supplier Management

18. Sale and Disposal of University Goods

APPENDIX 3: LEGISLATIVE AND CONTRACTUAL COMPLIANCE

APPENDIX 4: HEALTH & SAFETY

1. University Responsibilities

2. School/Function Responsibilities

3. Specific Legal Requirements

APPENDIX 5: RESPONSIBLE PROCUREMENT

1. University Commitment

2. Sustainable Procurement Practices

3. Additional Guidance

APPENDIX 6: MODERN SLAVERY AND HUMAN TRAFFICKING

1. Understanding Modern Slavery and Human Trafficking

2. University’s Zero-Tolerance Policy

3. Transparency and Compliance

4. Reporting Concerns

5. Access to Anti-Slavery Statement

APPENDIX 7: RETENTION OF DOCUMENTS

SECTION 1 - OVERVIEW

1.1 Introduction

1.1.1 This policy is applicable to all University employees, including temporary staff, contractors, and consultants involved in the procurement process. It governs the management and oversight of all non-pay spend concerning the acquisition of goods, services, and works across all departments, regardless of funding sources.

1.1.2 This policy aligns with the University's Financial Regulations and Procedures, ensuring consistency and compliance with organizational standards. It is also congruent with the Procurement Strategy and Procedures, reflecting the aims and objectives of both the University and the Procurement Department.

1.1.3 The Procurement Policy and associated documents undergo review and endorsement by the Procurement Board and, where necessary, the University Executive Board. Any inquiries regarding this policy should be directed to the Director of Procurement.

1.1.4 All procurement activities, including those funded through research or specific grants, must adhere to legal requirements, financial regulations, and this procurement policy.

1.1.5 Procurement operations are guided by commercial principles outlined in Appendix 1. 1.

1.2 Procurement Essential Requirements

1.2.1 All non-pay spend for goods, services, and works requires a valid Purchase Order or, if applicable, a signed contract before any transactions are made, except for purchases made using a Purchase Card.

1.2.2 University Purchase Orders include standard terms and conditions; deviations must be approved by Procurement.

1.2.3 Contracts not based on University terms must be reviewed and accepted by Procurement, irrespective of value or existing Purchase Orders.

1.2.4 Deliberately dividing purchases to circumvent procurement thresholds is prohibited.

1.2.5 Approval authority for expenditure is managed by Finance and cannot be exceeded by employees.

1.2.7 Requisitions must be processed through the purchase ordering system, with mandatory training required for all users.

1.2.8 New suppliers are added to the purchase ordering system only after thorough due diligence, as outlined in Section 18

SECTION 2 – GOVERNANCE

2.1 Procurement Board
The Procurement Board oversees procurement's strategic direction and management University-wide, including its subsidiary companies.

2.2 Conflict of Interest

2.2.1 All Procurement Department staff involved in procurement activities complete an annual declaration of outside interests.

2.2.2 Employees must report any perceived or actual conflicts of interest related to contract awards through their line manager, referencing Appendix 2, Section 14.5 for guidance.

2.2.3 All stakeholders participating in tendering, including external consultants, must complete conflict of interest forms.

2.3 Internal and External Appraisal

2.3.1 The Procurement Department contributes to the annual Procurement Value Survey (PVS) to benchmark efficiencies.

2.3.2 University internal audits include procurement activities as part of the Annual Plan approved by the Audit Committee.

2.3.3 The Procurement Department conducts audits in alignment with the Procurement Board's directives.

2.4 Reports, Statistics, and Key Performance Indicators

2.4.1 Procurement provides statistics and key performance indicators for analysis and decision-making as needed.

2.4.2 The Procurement Department aligns its performance with Higher Education sector indicators and reports to the Procurement Board annually.

2.5 Spending Funds

2.5.1 This policy applies to all University funds, ensuring careful expenditure regardless of funding source.

2.5.2 A documented audit trail is required for all purchases, regardless of acquisition method.

2.6 Procurement Training and Guidance

2.6.1 The University offers training and guidance on procurement, legislative compliance, and buying procedures.

2.6.2 Mandatory training, including requisitioning and purchase card use, is available online through UoRLearn.

2.6.3 Online training covers various aspects of the purchasing ordering system to ensure users understand the end-to-end process.

2.7 Payments to Suppliers

Invoices meeting criteria are paid within 30 days of receipt, subject to a valid purchase order, unless otherwise agreed with Finance and Procurement.

2.8 Payment in Advance

2.8.1 Payment in advance, except via Purchasing Card, is discouraged due to fund risk.

2.8.2 Proforma orders requiring advance payment must be approved by the Head of Transactional Services, with further approval possibly from the Director of Finance.

2.8.3 Contracts stipulating payment via Direct Debit undergo Finance scrutiny and are approved by Procurement only under exceptional circumstances.

2.9 Retention of Documents

Documents are retained in accordance with the Information Management Policy Services (IMPS) Retention Policy.

2.10 Information Security

Suppliers or third parties needing University system access or processing personal data must comply with the University's Information Security Policies.

2.11 Failure to Comply

Failure to adhere to the Procurement Policy may result in goods/services not approved, project delays, unpaid invoices, revoked authority, or disciplinary action.

SECTION 3 - APPENDICES

APPENDIX 1: PROCUREMENT PRINCIPLES

This appendix lays down the principles governing our procurement process, ensuring transparency, integrity, and excellence in every facet of our operations. The procurement process adheres to the following principles:

1.1 Regulatory Compliance
All procurement activities comply with relevant UK regulations as detailed in Appendix 3.

1.2 Strategic Spend Management
Spend categories are strategically managed to identify opportunities for cost savings through consolidation, ensuring maximum Value for Money (VfM) and fostering collaborative procurement. All activity relating to Land, buildings and estates related services must involve the Estates Directorate. All activity relating to digital technology must involve the DTS Directorate.

1.3 Monitoring and Aggregation Purchase Orders
(POs) under £30,000 are reviewed to prevent disaggregation of spend and to identify opportunities for aggregation where appropriate.

1.4 Risk Management
Risks are managed in a compliant and effective manner, with appropriate consideration of the risk levels involved.

1.5 MAT Approach
The Most Advantageous Tendering (MAT) approach is employed, focusing on total lifecycle costing and value rather than just price. This ensures procurement delivers optimal cost, quality, and benefits to students.

1.6 Collaborative Purchasing
The University supports and participates in collaborative purchasing to ensure best value and practice, as a member of the Southern Universities Purchasing Consortium (SUPC).

1.7 Fairness and Transparency
All purchasing decisions are made with equal treatment, non-discrimination, transparency, and proportionality in mind.

1.8 Market Analysis
Market analysis is conducted for goods, services, and works where appropriate, as detailed in Appendix 2, Section 7.

1.9 Sustainability and Equality
Sustainability, equality, and diversity considerations are integral to all purchasing decisions, aligning with the University's Corporate Social Responsibility commitments (see Appendix 5 for details).

1.10 Health and Safety Compliance
All procurement activities comply with relevant Health and Safety legislation and codes of practice (see Appendix 4 for details).

1.11 Supplier Code of Conduct
Suppliers contracting with the University must adhere to the Procurement Code of Conduct, as outlined in Appendix 2, Section 18.

1.12 Responsible Procurement
Responsible procurement criteria are applied in the award of contracts where appropriate (see Appendix 5 for further details)

APPENDIX 2: PROCUREMENT PROCESSES

This appendix serves as a guiding framework for all procurement activities, ensuring adherence to regulatory standards, ethical practices, and optimal outcomes for the institution and its stakeholders.

1. Thresholds and Contracts

1.1 Contracts Below £30,000

For contracts where the total value of goods, services, and works over the contract duration is less than £30,000 (including VAT) and cannot be fulfilled by an existing preferred supplier, Schools and Directorates are encouraged to obtain at least two written quotations. This helps ensure competitiveness and value for money. All other polices and processes must be adhered to.

1.2 Contracts Between £30,000 and £100,000

For contracts valued between £30,000 and £100,000 (including VAT) where an existing preferred supplier cannot fulfil the requirement, or where a contract is expiring or terminating, Schools and Directorates must obtain quotations or complete a Single Action Waiver (SAW). Quotation details must be submitted to Procurement to ensure the requisition is approved.

1.3 Contracts Over £100,000

For contracts exceeding £100,000 (including VAT), the Procurement Department must be contacted to determine the appropriate route to market.

Please note this is for goods, services or works and must be followed prior to committing the University.

Value	Available Routes to Market	Payment Methods	Compliance Check List	Responsible for the Procurement Process and Outcome
<£30,000	Suppliers already identified as preferred for similar goods, services and works OR Suppliers appointed through a quote evaluation process	Invoice or Purchase Card	Check if ESQ is needed for any services over £1,000. Ensure that the supplier you wish to use has been set up on purchase order system. Ensure that the supplier agrees to the UoR Terms and Conditions with no amendments, changes or supplier terms and data protection considerations must be agreed with Procurement. If you don't use an already preferred supplier, keep the record of quotes obtained together with your quote evaluation demonstrating best value for money.	School or Department placing the order.
£30,000 to £100,000	Suppliers already identified as preferred for similar goods, services and works OR Suppliers appointed through a quote evaluation process OR Single Action Waiver (SAW)		Check if ESQ is needed for any services over £1,000. Ensure that the supplier you wish to use has been set up on the purchase order system. Ensure the supplier agrees to the UoR Terms and Conditions with no amendments. Changes or supplier terms and data protection consideration must be agreed with Procurement. If you don't use an already preferred supplier, keep the record of the quotes obtained and complete the quotation form demonstrating best value for money. If you use a SAW, ensure that is has been approved by Procurement before issuing a PO	School or Department placing the order
>£100,000	Contact Procurement to discuss the most appropriate route to market		Procurement Department	Procurement Department

1.4 Requisition Reviews

Procurement must review all requisitions under the following conditions:

• The contract does not adhere to the University’s standard terms and conditions.

• The contract value exceeds £30,000.

2. Contract Signatures

All procurement contracts, whether based on University-agreed terms and conditions or not, that require a signature must be forwarded to Procurement. Additionally, any contracts or terms and conditions requiring acceptance (e.g., via a website, email acknowledgement, or a course of conduct) must be approved by Procurement before acceptance.

2.1 Delegation of Authority

The Director of Procurement may delegate the authority to sign contracts and conduct tender processes as deemed appropriate

3 Single Action Waivers (SAWs)

3.1 SAW Requirement

Single Action Waivers must be completed for all goods, services, and works over £30,000 (including VAT) when a competitive quotation/tender process is not feasible. These are only agreed exceptionally and are not required if the requirement can be procured using an existing appropriate preferred supplier, via a Consortium/National or University contract.

3.2 SAW Approval Process

All SAWs must be forwarded to the Procurement Department for approval after being signed off by the budget holder. The approval process is as follows:

SAW Value (Incl. VAT)	Number of approval signatures required	Approval route
£30,000 - £1000,000	1	Contract Officer OR Deputy Category Manager
£100,000 - £200,000	2	Contract Officers OR Deputy Category Manager AND Category Manager
£200,000 - £1 million	2	Category Manager AND Director of Procurement
Over £1 million	3	Category Manager AND Director or Procurement AND Director of Finance

Any justification for a Single Action Waiver may be rejected if it is not deemed valid.

4 Terms & Conditions of Contract

4.1 Standard Terms and Conditions
The University has a standard set of terms and conditions, accessible at: University terms & conditions of purchase (reading.ac.uk)

4.2 Amendments to Terms and Conditions
When necessary, the Procurement Department, in consultation with the Legal Services Department, may:

• Amend the University of Reading's terms and conditions for a specific category or contract.
• Adopt industry-standard or external framework terms and conditions.

• Review and amend the supplier’s terms and conditions if they are deemed more appropriate.

5 Suppliers

5.1 Preferred

The University has preferred suppliers for a wide range of goods, services, and works. Information about these suppliers can be obtained through the Procurement Department.

5.2 Definition of Preferred Suppliers

Preferred suppliers are those that awarded contracts to supply goods, services, and/or works through a formal process conducted either by the University or by an appropriate external framework organisation. The Procurement Department is responsible for determining whether a supplier is preferred.

5.3 Use of Preferred Suppliers

Preferred suppliers should always be used if their goods, services, or works broadly meet the requirements of the existing requirement. Preferred suppliers should only be used for the specific goods, services or works they have been contracted for.

5.4 Absence of Preferred Suppliers

If there are no preferred suppliers available, the School or Directorate must follow the appropriate procurement process based on the relevant thresholds.

5.5 Approved Suppliers

Suppliers that have completed the University’s due diligence process will be set up in the purchase ordering system and can be used for obtaining quotations.

5.6 Prospective Suppliers

Prospective suppliers are potential supplier being considered for procurement of goods, services, or works needing to be assessed for due diligence. A robust process to determine whether a supplier is a prospective supplier prior to moving to supplier due diligence to move a prospective supplier to approved is required.

6 Purchasing Cards

6.1 Purpose and Use

Purchasing Cards are intended for low-value, high-volume goods and services, and one-off purchases, except when a preferred supplier is available. Information about Purchasing Cards can be obtained through the Procurement Department.

6.2 Controls and Restrictions

Strict controls govern the use of Purchasing Cards, and usage may be restricted to specific categories of commodities or services.

6.3 Application Support

Every application for a Purchasing Card must be endorsed by the Head of School or Directorate.

6.4 Training and Compliance

Cardholders must receive training on the use of the Purchasing Card and comply with the terms and conditions outlined in the Purchasing Card Manual. Non-compliance may result in disciplinary action, including termination of employment.

6.5 Application Process

Details on the Purchasing Card application process are available on the Finance website: Purchasing Cards - Finance (reading.ac.uk)

7 Market Intelligence and Analysis

7.1 Pre-Procurement Market Engagement

For goods, services, and works with a total value of £30,000 or more (including VAT), the University will, where appropriate, engage directly with the market at the start of a project and before issuing a call for competition. This engagement helps establish the best way to structure the specification and procurement strategy. The Procurement Department must be included in this process, as it underpins the procurement approach and route to market.

7.2 Considerations and Compliance

The Procurement Department will consider all relevant legislation, policies, and processes, review available frameworks that meet the requirements, and assess any related risks. These risks include both reputational risks and potential impacts on the University’s ability to provide services to students or other related third parties.

8 Determining the Contract Value

8.1 Considerations for Calculating Contract Value

When calculating the contract value, the following factors must be considered:

8.2 Contract Duration

The length of the contract must be included in the total contract value calculation (including VAT) to ensure it aligns with the correct spending threshold. The University will generally hold contracts for no longer than 4 years unless it is agreed with the Director of Procurement.

8.3 Transaction Type

A contract may consist of a single one-off transaction or multiple purchases over several months or years.

8.4 Comprehensive Inclusions

All elements of the purchase must be considered part of the contract, including product/service training, servicing, and any potential contract extensions. These elements should not be disaggregated to avoid threshold requirements.

8.5 Funding Availability

The available funding and the period for which the funding is available must be considered.

9 Frameworks

9.1 Utilisation of Framework Agreements

Where possible, consider using a pre-existing framework agreement set up by the University or a third party, such as a government body, public sector organisation, or consortium. These framework agreements offer an economical and efficient means of purchasing, as all suppliers have undergone assessment and the agreements have been appropriately tendered.

9.2 Procurement Department Guidance

The Procurement Department will provide advice on the available agreements for specific requirements and guide you through the process of using these agreements.

10 Spend Analysis

10.1 Spend Analysis Overview

The Procurement Department conducts spend analysis on historical purchasing data across the University. This analysis helps to establish visibility of spending patterns, ensure compliance, and maintain control. The insights gained from this data inform procurement strategies, enabling the identification and realization of value-for-money opportunities.

10.2. Category Strategy Documents

Procurement periodically completes Category Strategy documents to:

• Document the current contract.

• Conduct market research and supplier development.

• Perform spend analysis.

• Assess sustainability impacts.

• Provide recommendations for the procurement process.

These Category Strategies are reviewed and approved by the Procurement Board as needed.

11 Tender Specification Documentation

11.1 Detailed Specifications

A specification must clearly, accurately, and comprehensively describe in detail what the University intends to purchase and must be developed prior to any tendering activity. This forms the foundation of any procurement of goods, services, and works, ensuring the best chance of obtaining the required items at the right time and price.

11.2 Clarity in Requirements

Regardless of whether the purchase is for a small, simple item or a large, complex one, the specification must clearly outline the requirements for the goods, services, and works needed.

11.3 Collaborative Development

Developing the specification is the responsibility of the stakeholder, with support from the Procurement Department. This may include:

• Scope of Works

• Technical and Functional Specifications detailing materials, services, drawings, workmanship, and performance standards (including construction and life cycle maintenance)

• Non-Functional Specifications

• Timescales, milestones, and performance management mechanisms such as KPIs

11.4 Standard References

Specifications should generally avoid referencing specific products, brands, marks, or part numbers. Instead, where appropriate, international or European standards should be referenced.

12 Tendering Process

12.1 Publication of Opportunities

Where appropriate, the University will utilize its e-tendering system to publish applicable procurement opportunities.

12.2 Procurement Responsibility

The Procurement Department is responsible for conducting tenders for goods, services, and works on behalf of the University, for contracts exceeding £100,000 (inclusive of VAT).

12.3 Supplier Communication

The Procurement Department will manage all tender bid clarifications and communications with suppliers via the e-tendering system. Other stakeholders are prohibited from engaging directly with suppliers or bidders during the tender process. Any supplier inquiries must be promptly referred to the Procurement Department without additional commentary.

12.4 Tender Opening Protocol

Only designated Procurement personnel or officially delegated representatives from schools/directorates are authorised to open tenders via the e-Tendering system. This ensures an impartial audit trail of the opening process. The required number of individuals for the opening ceremony varies based on the value and nature of the procurement.

12.5 Stakeholder Guidance

Comprehensive guidance will be provided to all stakeholders involved in the procurement process, referencing Section 2, paragraph 2.2 on Conflict of Interest.

13 Tender Report

13.1 Comprehensive Tender Report for Higher Threshold Tenders

When the tender exceeds the £100,000 threshold, Procurement is responsible for compiling a tender report upon the tender process's conclusion. This report, may be subject to stakeholder or Board approval, precedes any contract award and serves as an integral part of the audit trail.

14 Risk Management

14.1 Mitigation of Risks

All procurement activities are conducted with careful consideration to mitigate risks, ensuring the University operates within acceptable risk thresholds. This entails:

• Ensuring acceptable and appropriate contractual terms and conditions.

• Adherence to the University's Financial Regulations, procedures, and relevant procurement legislation.

• Ensuring fairness and impartiality in procurement processes to avoid disadvantaging bidders.

14.2 Procurement Risk Oversight

The Director of Procurement actively monitors procurement-related risks in alignment with University policies and reports findings accordingly.

15 Due Diligence

15.1 Assurance of Supplier Integrity

Procurement and Finance conduct due diligence on prospective suppliers, including:

• Verification of necessary insurances to fulfill contractual obligations.

• Ensuring no involvement in modern slavery or human trafficking.

• Assessment of supplier credibility, reliability, and financial stability, in compliance with procurement regulations.

15.2 Information Security Compliance

Suppliers requiring access to University information systems must comply with the University's Information Security Policies.

16 Supplier Code of Conduct

16.1 Ethical Supplier Standards

The University upholds a Supplier Code of Conduct, outlining expected behaviours from suppliers contracting with the University.

16.2 Compliance with Legislation

Suppliers are expected to adhere to all relevant legislation and regulations within their operating jurisdictions.

16.3 Integrity and Transparency

All University suppliers are expected to uphold principles of integrity, transparency, and governance.

16.4 Additional Guidance

Further guidance on the Supplier Code of Conduct is available on the Procurement website.

17 Contract and Supplier Management

17.1 Proactive Contract Management

Procurement leads contract management activities, collaborating with key stakeholders to ensure suppliers fulfill contractual obligations.

17.2 Operational Efficiency

Effective contract management begins during project planning, with specifications and contract documents structured to optimize operational and financial performance.

17.3 Ongoing Evaluation

Regular business and contract review meetings, facilitated by Category Managers, ensure contractual compliance and performance maximisation.

17.4 Defined Roles and Responsibilities

Procurement collaborates with key stakeholders to establish clear roles, responsibilities, and accountability for ongoing contract and supplier management.

17.5 Performance Measurement

Suppliers are continuously evaluated against pre-agreed Key Performance Indicators (KPIs) outlined in the contract specifications.

18 Sale and Disposal of University Goods

18.1 Compliance with Financial Regulations

Sale or disposal of goods adheres to the University's Financial Regulations.

18.2 Waste Minimisation

The University's Re-use Policy promotes waste minimization through resource re-use, aligned with the Environmental & Energy Policy.

18.3 Approval Protocol

Disposal requests, including exceptional cases, must be approved by the Head of School/Function, in consultation with Procurement, considering health and safety implications.

18.4 Asset Utilisation

Unwanted items should be offered to other University users before disposal, in line with Sustainability Services guidelines.

18.5 Disposal Protocols

Certain items may be donated or sold under specific circumstances, with appropriate documentation and consultation with Sustainability Services and Procurement. However, hazardous waste and items covered by Waste Electrical and Electronic Equipment (WEEE) regulations must follow secure disposal processes coordinated by Sustainability Services