4.1 General

The Procurement Regulations form part of the University’s Financial Regulations. The responsibility for formulating the Procurement Regulations rests with the University’s Finance Committee. The purpose of the Regulations is to ensure that the University gains value for money when undertaking its procurement activity, reflect the principles of the Treaty on the Functioning of the European Union (i.e. equal treatment, non-discrimination, mutual recognition, proportionality and transparency, so driving competition), and ensure compliance with public procurement law. The Regulations include the University’s approval levels when accepting tenders, awarding Contracts, placing orders, varying and extending Contracts, and gaining exceptions to the Regulations.

4.1.1. Compliance

Staff must comply with these Regulations. Failure to do so may result in disciplinary action.

4.1.2. Allocation of Responsibilities

Heads of Department may allocate their responsibilities under these Regulations to members of their Staff, following the details of these allocated responsibilities having been provided to the Head of Procurement.

4.1.3. Interpretation

Words and expressions used in these Regulations are to be interpreted in accordance with the provisions of Section 4.8 Definitions and Interpretation.

4.1.4. Application

(a) These Regulations apply to every procurement Contract made by or on behalf of the University except Contracts:

(i) for only the acquisition or disposal of any interest in land;

(ii) for the lending or borrowing of money;

(iii) of employment (making an individual a direct employee of the University).

(b)  These Regulations apply where a University Spin-out Company could deliver the Contract.

4.1.5. General Requirements

(a)  Every Contract or official order for works, supplies or services made by the University shall be for the purpose of implementing the University’s policies and must be made in accordance with the University's Procurement Strategy (2014-17).

(b) When proposing to procure or making arrangements for procuring a service Contract where the Estimated Value exceeds the EU Threshold then consideration must be given as to how the Contract might improve the economic, social and environmental wellbeing of Leicestershire, as required by the Public Services (Social Value) Act 2012.

(c)  The Procurer must consider what Risks the Contract presents ahead of any Procurement Exercise, taking proportionate account of any Risks identified during the subsequent Procurement Exercise and within the resultant Contract. The types of Risk for the Procurer to consider include those relating to Business Continuity, compliance with the Equality Act 2010 and the Modern Slavery Act 2015, and Information Security. In considering Information Security it is important to ensure compliance with the University's Outsourcing and Third Party Access Policy.

(d)  The Procurer must contact, and take advice from, the University’s appropriate Professional Services before commencing the Procurement Exercise, where relevant to the Contract. For example:

(i) The Estates & Facilities Management Division must be contacted where the Contract will have a dependency and/or impact on University buildings, buildings services or infrastructure;

(ii) The Head of Financial Operations must be contacted where the Contract involves the collection of income on behalf of the University; and

(iii) The IT Services Division must be contacted where the works, services or goods to be procured have an IT element and/or interface with the University’s IT systems. In particular, where the product or service being procured is based on Cloud Services then IT Services should be contacted and compliance with the IT Services Policy for Selection and Use of Cloud Services should be ensured..

(e)  The Procurer must ensure that Contracts approved as Mandatory Contracts by a Category Manager are used to order the respective supplies, services and works, unless it is agreed by the Category Manager that better value for money can be clearly demonstrated outside of these approved Mandatory Contracts.

(f)  The following services must be delivered by the University’s in-house provision unless the Head of Procurement approves a Procurement Exercise being undertaken or an exception being sought in accordance with Regulation 4.1.6:-

(i) Print Services to be provided by the Print Unit;

(ii) Conference Services to be arranged using University facilities;

(iii) Overnight accommodation for visitors to be arranged using University facilities, for example College Court;

(iv) Catering Services to be provided by Campus Services;

(iv) Managed IT Services to be delivered by IT Services; and

(vi) Buildings, building services and infrastructure to be delivered by the Estates & Facilities Management Division.

(g)  Before commencing a Procurement Exercise for research equipment and specialist machines the Procurer must first check whether such equipment is available to be used from elsewhere within the University or amongst the other members of the Midlands Innovation Partnership, by consulting the online Kit-Catalogue.

(h)  Procedures set out in the relevant EU Directives, EU Treaties, Acts of Parliament and UK legislation must be complied with at all times.

(i)  Based on criteria laid down by the Head of Procurement, the Procurer will be responsible for evaluating the financial status of Tenderers and suppliers.

(j)  The Procurer must ensure that sufficient budget provision has been agreed with the budget holder prior to any Procurement Exercise being undertaken, and must provide evidence of there being a budget to the appropriate Category Manager where the Procurement Unit is to undertake the Procurement Exercise.

(k)  All Procurement Exercises for Contracts with an Estimated Value of £50,000 or more must be undertaken using an electronic tendering system approved by the Head of Procurement, unless otherwise agreed with the Head of Procurement.

(l)  Subject to the provisions of Regulation 4.5.1(b) (Framework Agreements) Contracts shall not be longer than four years (including extensions) or of indeterminate length without the written approval of the appropriate Category Manager. Any such approval shall be sought prior to the commencement of the Procurement Exercise.

(m)  For all Contracts dependent on grant funding the Procurement Exercise and Contract must adhere to, and reflect, all relevant grant conditions that stipulate requirements that go beyond these Regulations.

4.1.6. Exceptions

(a) Subject to the requirements of EU Directives, EU Treaties, Acts of Parliament and UK Regulations the following Contracts may be placed by direct negotiation with one or more suppliers, Contracts:-

(i) for supplies, materials, services or works which are available only as proprietary or patented articles, services or works from one Contractor or supplier and for which the Head of Department and the Head of Procurement decide that there is no reasonably satisfactory alternative available in the European Union and for repairs to, or the supply of, parts of existing proprietary or patented articles or works, including machinery or plant;

(ii) for works of art, museum specimens or historical documents;

(iii) which constitute a variation or extension of an existing Contract, as permitted by the Contract and/or the University’s Financial Regulations subject to the provisions of Regulation 4.6.2 (Contract Variations), Regulation 4.6.3 (Contract Extensions) and 4.6.4 (Novation of Existing Contracts).

(b) Other exceptions to these Regulations may only be made within the relevant law and with the authority of the appropriate Category Manager where the Estimated Value of the proposed Contract is between £10,000 and £49,999, and the Head of Procurement and the Registrar and Chief Operating Officer where the Estimated Value of the proposed Contract is £50,000 or more. In requesting authority for an exception to these Regulations the Exception Form must be completed and submitted to the appropriate Category Manager or Head of Procurement, depending on the Estimated Value of the proposed Contract.

4.1.7. Financial Thresholds and Delegation

(a) Financial limits and thresholds within these Regulations may be varied from time to time by the Finance Committee.

(b) Arrangements for delegation of functions to members of Staff within these Regulations may be varied from time to time by the Registrar and Chief Operating Officer.

4.1.8. Annual Reporting

The Head of Procurement shall at least once in each financial year submit a report to the Finance Committee in relation to the operation of these Regulations, including, among other things, details of the approved exceptions to these Regulations and approved extensions to Contract, where not provided for in the Contract, and proposed revisions to these Regulations and/or changes required to accommodate the requirements of UK and EU procurement law as may be necessary from time to time.

4.1.9. Ethical Procurement

(a) Regulations 2.6 (Code of Conduct and Declaration of Interest), 2.7 (Gifts and Hospitality) and 2.8 (Prevention of Bribery and Corruption) of the Financial Regulations , and the Corporate Code of Ethics of the Chartered Institute of Purchasing & Supply apply to any Procurement Exercise.

(b) Every written Contract will include the standard Prevention of Bribery and Corruption clause included within the University’s Standard Terms and Conditions for Goods and Services, or a clause that is substantially similar.

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