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Procurement procedure

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Section 1 - Preamble

(1) This Procedure is effective from 4 August 2017.

(2) This Procedure includes the following schedules:

  1. Schedule A: Procurement Value and Risk Analysis - Complexity Assessment
  2. Schedule B: Procurement Value and Risk Matrix
  3. Schedule C: Market Approach Strategy
  4. Schedule D: Overall Procurement Process
  5. Schedule E: Certificate of Exemption Process
  6. Schedule F: Purchase Order Process.
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Section 2 - Purpose

(3) This Procedure provides instruction on how to acquire goods and services on behalf of the University.

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Section 3 - Scope

(4) This Procedure applies to the purchase or lease of all goods and services from suppliers external to the University except as otherwise specified in the  or other policies and procedures.

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Section 4 - Policy

(5) This Procedure is pursuant to the Procurement policy.

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Section 5 - Procedure

(6) The purchaser must confirm there is an approved budget for the goods and services being purchased.

(7) The purchaser must check the Procurement Services website to determine whether an existing contract is available for the goods and services to be purchased.  Existing contracts must be used unless an exemption has been granted in accordance with the Procurement policy.  If the goods and services to be purchased are subject to an existing contract the purchaser may proceed with a purchase from that contract.

(8) The purchaser must ensure that they have the required financial delegation to make the purchase, or that a staff member with an appropriate financial delegation can complete the purchase on their behalf.

Risk based approach to procurement

(9) If the purchase of the goods or services is not subject to an existing contract, is a new purchase or is the review and renewal of an expiring contract then the requirements of Schedule A: Procurement value and risk analysis - complexity assessment must be undertaken.

(10) A procurement value and risk analysis must be completed as part of any funding application to the Deakin Portfolio Office.

(11) Completion of the procurement value and risk analysis is not required for procurement activities facilitated completely through the exemption requirements of the Procurement policy.

(12) The automatic renewal of an existing contract facilitated without the completion of the procurement value and risk analysis - complexity assessment must be endorsed through the exemption requirements of the Procurement policy.

Market approaches

Quotations

(13) A request for quotation process should be used when:

  1. the purchase of the goods or services falls within the transactional quadrant of Schedule B: Procurement value and risk matrix;
  2. the purchase is relatively simple and is in a standardised or commoditised form;
  3. there is minimal requirement for specifying what is being purchased;
  4. the process (purchase to delivery) will be completed in a relatively short time;
  5. and the competency and capability of the suppliers being selected to quote have been assessed.

(14) A minimum of three written quotations should be received for all quotation processes with a life cycle cost greater than $30,000.

(15) The selection process from a Request for Quotation should be based on the quotation offering the best value for money outcome.

(16) Quotations greater than $100,000 in value should be conducted through the University’s e-tender portal Tenderlink or another approved portal.

Expressions of Interest

(17) Expressions of Interest should be used when:

  1. contract values are greater than $300,000;
  2. and the purchase of the goods or services is of major proportion and the cost of preparing a response may be significant; or the goods or services are very specialist in nature;
  3. or a very large field of potential respondents is expected;
  4. or the goods or services are of such a nature that it is necessary to predetermine a respondent’s competency or financial capability to perform the contract.

(18) Expressions of Interest are to be conducted through an open or public process through the University’s e-tender portal Tenderlink and must be a multi-stage process followed by a select request for tender.

(19) Pricing should not form part of an Expression of Interest.

(20) A purchaser should not establish a contract with a supplier from an Expression of Interest process only.

Requests for Information

(21) A Request for Information should be used when the purchaser needs to:

  1. gather information to help make a decision on what steps to take next;
  2. obtain information to determine the capabilities of various suppliers;
  3. solicit a broad base of suppliers, condition supplier’s minds, develop a strategy, build a database or prepare for a Request for Tender, Request for Proposal or Request for Quotation.

(22) Requests for Information should be conducted through the University’s e-tender portal Tenderlink and be a multi-stage process that may be followed by a Request for Tender, Request for Proposal or Request for Quotation.

(23) A purchaser should not establish a contract with a supplier from a Request for Information process only.

Request for Proposal

(24) A Request for Proposal can be used when the Purchaser needs to reflect the University or business unit’s long term strategy or business objectives and there is a need to find a supplier who will be able to meet those objectives.

(25) A Request for Proposal can be used for purchases that are expected to have a significant life cycle cost (eg. greater than $300,000).

(26) A Request for Proposal can be used very early in a procurement cycle such as at preliminary study or preliminary design stage.They can be used when an innovative or flexible solution is sought for the purchase.

(27) Requests for Proposal should be facilitated through the University’s e-tender portal Tenderlink through an open or public process.The conduct of a select Request for Proposal would need to be endorsed through an exemption in accordance with the Procurement policy.

(28) A contract can be established following a Request for Proposal process.

Request for Tender

(29) A Request for Tender process is used when:

  1. the purchase of the goods or services is estimated to be greater than $300,000;
  2. there is a need for full documentation that completely specifies the purchase to be made, there is a requirement for a detailed response by a supplier and an in-depth evaluation is to be undertaken.

(30) A Request for Tender should be conducted as an open or public process or selectively, following an Expression of Interest, through the University’s e-tender portal Tenderlink.

(31) A contract can be established following a Request for Tender process.

E-Auctions

(32) An e-Auction can be used in advertising, bulk chemicals or gases, computers and peripherals, courier and other logistics purchases, insurance, leasing of equipment, software licensing and utilities.

(33) e-Auctions should only be undertaken in collaboration with the Procurement Services Group.

(34) A contract can be established following an e-Auction process.

(35) The processes for undertaking Request for Quotation, Expression of Interest, Request for Information, Request for Proposal, Request for Tender and e-Auction processes are detailed in the Procurement guidelines and on the Procurement Services website.

(36) Collaboration with the Procurement Services Group should occur for all market approach processes with the exception of quotation activities less than $100,000.

Purchase Orders

(37) All purchase order processes shall be conducted in accordance with Schedule F and the requirements of the Procurement guidelines.

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Section 6 - Definitions

(38) Refer to the Procurement policy.