This policy applies to all staff members at the University (including contractors, Members of Council, advisory committees) who are responsible for or involved with procurement activities relating to:
As a separate company members of UniServices will comply with the procurement policies, procedures and delegations of authority of UniServices.
To ensure that ethical, robust, transparent, and fair procurement activity is carried out effectively and efficiently across the University.
To ensure that procurement practices support our Sustainability local and social impact goals and comply with relevant statutory and legal and public sector requirements.
Procurement principles
1. Staff members making procurement decisions must seek to obtain value for money, taking into account whole-of-life costs and other considerations that include but are not confined to:
2. The University may require certain departures from the Government Procurement Rules in:
Note - Guidance on procurement principles may be obtained from the Strategic Procurement Manager in Central Finance Services, ITS Procurement Manager, or from the Strategic Procurement page of the staff intranet.
Purchasing processes
3. The University has implemented purchasing processes (as described in the PeopleSoft Financials Purchasing Manual) which must be followed and used in conjunction with authority issued to staff members as part of the delegations framework.
4. Purchasing transactions are to be initiated by submitting a purchasing request through the staff service request system to the Shared Transaction Centre.
In the case of Property Services, purchase requests must follow Property Services Standard Operating Procedures.
All Software including Cloud Service software is required to be purchased via the IT Procurement Channel and must not be purchased using a Pcard.
Notes - The University of Auckland pCard is effective and efficient for small value or infrequently purchased items.
In the normal course of events the University would not expect staff members to be undertaking purchases from their own funds and seeking reimbursement. In the vast majority of cases purchasing should be via a purchase order or p-Card.
Foreign exchange purchases
5. The Treasurer, Financial Services, must be notified prior to any foreign currency purchase or commitment equivalent to or greater than $NZ50,000 being entered into so that appropriate forward cover can be arranged.
Selection of suppliers
Note - The University seeks to rationalise its supplier base in order to ensure value for money, consistency of service and quality and management of risk. A full list of the University’s preferred suppliers are identified on the staff intranet within the Suppliers Directory.
6. Where the University has entered into contracts with preferred suppliers, these suppliers must be used for designated purchasing categories.
7. Recommended suppliers are identified in other purchasing categories also identified in the Suppliers Directory and must be used wherever possible.
8. Where a preferred or recommended supplier cannot fulfil the purchasing requirements staff members must determine the most appropriate supplier, taking into account opportunities to leverage the University’s total spend with preferred or recommended suppliers and the need to minimize the exposure to risk.
Note - Consultation with Strategic Procurement is required for significant purchases that are not covered by preferred and recommended supplier arrangements or contracts.
9. The University utilises a number of due diligence compliance checks when considering new vendor requests. If the checks and due diligence meet the required settings then that new vendor application will be approved. When an exception or issue arises that requires exceptional consideration the approval of new vendor requests for inclusion into PeopleSoft Financials resides with the Strategic Procurement Manager.
10. When undertaking procurement activities, regard must be given to the impact any decisions may have on the marketplace.
Note - For example consideration should be given to potential issues of market dominance (e.g. Commerce Act requirements as well as the need to ensure supplier sustainability and longer term choice of options within the market).
Requests for new suppliers to be set up in PeopleSoft Financials are to be made on the Vendor Maintenance Form available on the Forms Library on the Intranet home page.
Supplier management
11. Supplier contracts are to be formally managed on behalf of the University by the contract owner – who is either a University procurement specialist or a staff member within the faculty or service division to whom goods or services are being provided.
12. The contract owner is responsible for ensuring that an appropriate Service Level Agreement is in place and used to support their management of the contract.
13. The contract owner must ensure that contract renewal or retendering is carried out well in advance of the end of the contract term.
14. If supplier performance fails to meet standards specified in the contract or service level agreement, the contract owner is responsible for ensuring either that appropriate remedial action is taken or that the contract is terminated in compliance with relevant clauses in the agreement.
Quotation and tender thresholds
15. Where there is no preferred or recommended supplier for a particular purchasing category, the following minimum quotation and tender requirements must be met:
| Value of Purchase * | Requirement |
|---|---|
| Up to $20,000 | A single quote is acceptable however the principle of at least 2 quotes may be appropriate to validate fair value. |
| $20,000 - $50,000 | Two written quotes from different sources are required. |
| $50,000 - $100,000 | At least two written quotes and a brief business case and must include details of quotes and the reasoning supporting the selection of the supplier. |
| Over $100,000 ** | Formal tender process |
* Total value over full term of the commitment including any periods of renewal.
** This threshold is determined by Aotearoa New Zealand’s obligations under WTO treaties and last reviewed in 2019.
16. Any purchase with a value greater than $100,000 requires an online procurement request form FS-07 under 'Finance Forms' to be completed.
17. Any purchase with a value greater than $100,000 where only one quote is available, or with a value greater than $100,000 where a tender process is considered inappropriate must be supported by an explanation and the purchasing process authorised by the Strategic Procurement Manager and the University. tenders board.
18. Any purchase with a value greater than $20,000 but less than $100,000, where only one quote is available, must be supported by an explanation and the purchasing process approved by the next level approver (i.e. the one over one principle applies).
19. Quotes and tender documentation are to be fully auditable and are to be retained for internal or external review for a minimum of seven years.
20. The type and nature of the records to be retained must be such that:
Construction and Construction Consultancy Services
21. Specialist panels of suppliers may be used and are to be established in accordance with the requirements of the Procurement Policy and the Construction and Construction Consultancy Guidelines.
22. Where there is no preferred or recommended supplier for a particular purchasing category, the following minimum quotation and tender requirements must be met:
| Value of purchase * | Requirement |
| Up to $50,000 | A single quote is acceptable however the principle of at least 2 quotes may be appropriate to validate fair value. |
| $50,000 - $100,000 | At least two written quotes sought. A single quote is acceptable with a Quantity Surveyor’s review undertaken to validate fair value and / or Two trade quotes are required if single trade value is greater than $50k within total tender price. |
| $100,000 - $200,000 | At least two written quotes and must include details of quotes and the reasoning supporting the selection of the supplier and a Quantity Surveyor’s review. |
| Over $200,000 | Formal tender process |
* Total value over full term of the commitment including any periods of renewal
23. Any purchase with a value greater than $200,000 where only one quote is available, or with a value greater than $200,000 where a tender process is considered inappropriate must be supported by an explanation and the purchasing process authorised by a University tenders board.
Note - Examples of this may be Early Contractor Involvement P&G and margin type contracts where a preferred contractor is selected to fast track a project or where a Contractor is a specialist in a particular area with a very good track record of delivery and is an approved member of the Construction or Construction Consultancy Panel of suppliers.
24. Any purchase with a value greater than $100,000 but less than $200,000, where only one quote is available, must be supported by an explanation and the purchasing process approved by the next level approver (i.e. the one over one principle applies).
Note - In most cases, this would need the Director Property Services and DVC (Operations) & Registrar approvals.
25. Contracts are to be executed in the name of ‘The University of Auckland’ (the address for service is 24 Princes Street, Auckland).
Note - Contracts for goods or services may only be signed by a University staff member with an appropriate Financial Delegation and in line with the Financial Delegations Policy.
26. Contracts in excess of $100,000 may only be executed with the prior approval of the University’s Tenders Board or a specific delegation from the Vice-Chancellor.
27. The director of faculty finance or service division head is to ensure that any contract for more than $100,000 is recorded in the Central Contracts Register.
28. For Construction and Construction Consultancy Contracts, this Tenders Board threshold is $200,000.
Note - A copy of the contract and relevant business case and documentation must be retained locally in accordance with the University’s Records Management Policy.
29. An electronic copy of the signed contract is to be sent to the Strategic Procurement Manager in Finance Services and stored in the relevant register held by the following:
Note - Registers and supporting documentation are to be stored in a secure location in an accessible form, accordance with the University’s Records Management Policy.
30. For an interim period, documentation relating to tender processes and contracts is to be retained by the contract owner Tender and contract documentation will be scanned and stored online in the University’s contracts register
Tendering principles
31. Tendering processes are to be used to:
32. The content of all tenders received by the University are confidential, and are not to be discussed under any circumstances with competing suppliers.
Note - Anyone involved in a University tender process must meet their obligations under the Conflict of Interest Policy.
33. No commitment, express or implied, is to be given to any supplier at any time up until the tenders board has made a decision.
34. The University must use processes that allow for transparency of decision-making and subsequent review of the process of decision-making.
Standard procurement method
Note - The University will generally use an open tendering process. This is in keeping with its responsibility as a public body and the objective of promoting open and effective competition.
35. Open tendering is to be the standard procurement method used by the University for purchases in excess of $100,000.
36. If, in exceptional circumstances, another tendering method may be more appropriate, the following alternative methods of procurement are available:
37. If any method other than open tendering is used, or if an open tender process results in only one tender being received, the reasons for this are to be documented and retained for future audit.
Departure from the standard procurement method
38. Construction and Construction Consultancy work is governed by the above specified specialist Tender and Quotation thresholds and the use of respective Construction and Construction Consultancy Supplier Panels and their operating guidelines.
39. When intending to depart from the standard open tender / RFP process approval must be granted by the appropriate tenders board for the business under consideration.
40. The following dispensations from open tender may be granted by the appropriate tenders board:
Selected suppliers are invited to submit proposals for goods or services. Frequently the result of a RFI process. If not preceded by a contestable RFI process then there must be very good reasons for limiting the number of potential respondents to an RFP/Q.
For example:
When considering syndicated procurement the University must:
Recognition and acknowledgement of good performance is supported by the University. This may be done when an incumbent, selected through a competitive process has performed well against managed targets through the term of the contract, continues to provide value for money and it can be demonstrated the market conditions have not changed substantially. This principle can apply without having previously negotiated a right of renewal (RoR) in the existing contract
Factors to consider in extending a contract:
In order to maximise the benefits of a contract it may be appropriate to disaggregate services (unbundle) and/or aggregate volumes (bundle).
This may be done as part of a procurement process and may also be added to or subtracted from a contract during a term contract, where additional products or services are identified and sit logically with an existing supplier or contract. This also applies to items that are purchased from a preferred supplier not under contract, bundled to become part of an existing contract.
In order to maximise the benefits of a contract it may be appropriate to disaggregate services (unbundled) and/or aggregate volumes (bundle).
Open book pricing
41. In the absence of a contestable tender/RFP every effort must be made to ensure that an open book pricing approach is taken in negotiations.
Note - The purpose of this open book approach is to ensure confidence that value for money is assured and transparency of process is demonstrated. The emphasis of an open book process is to enable focus on the total cost of ownership. The open book approach enables a clear understanding by the parties of the cost drivers within the University’s and the supplier’s environments.
42. When a supplier or other party is unwilling to provide sufficient detail by way of open book process further negotiation requires the approval of the appropriate delegated authority (using the one over one principle) before any agreement may be made.
Note - Where a monopoly supplier exists it is highly desirable to ensure an appropriate open book process is carried out.
Preparation of tenders
Note - Formal tender processes are initiated under the leadership of one or more University procurement specialist who will establish working groups comprised of technical experts and key stakeholders.
43. Working groups are to be formed on an ‘as needed’ basis and may be responsible for:
Closed tenders
44. A closed tendering process may be used in circumstances where:
Selective tenders
45. A selective tendering process may be used in circumstances where:
Request for tender
Note - assistance with tender documentation will be made available by specialist procurement resources within the University.
46. The RFT documents must specify a method of submitting tenders (e.g. post, electronically), location, closing date and time for tenders.
47. Specifications are to be comprehensive, clear and accurate, and address the following:
48. Specifications must not to be written in such a way that potential suppliers are excluded who could otherwise have supplied the University's requirements.
Invitations to tender
49. The overriding principle of inviting tenders is that all potential suppliers must be treated in a fair and equitable manner.
50. In line with this, the University's purchasing requirements are to be made known to all potential suppliers.
Note - Invitations to tender may be posted on the Government Electronic Tenders Service (GETS) website: www.gets.govt.nz or daily newspapers, special journals etc.
51. Invitations to tender are to include:
Note - The time provided between the date of first publication of the invitation to tender and the final date for submission of tenders may vary depending on the nature and complexity of the goods or services being procured.
The time limit for submitting tenders must generally be in line with the Government Rules of Sourcing.
Receipt and opening of tenders
52. The methods of receiving, storing and opening tender responses must ensure that responses are confidentially registered.
53. All tenders submitted must be treated with the utmost confidence and no particulars of a tender are to be released to any person unconnected with the tendering process.
Evaluations of tenders
Note - Tenders will generally be evaluated by the working group. The size and membership of this working group will depend on the value, complexity and risk of the procurement, but involvement of a procurement specialist is required.
54. All members of a working group, including external specialists, must be asked to declare any actual or potential conflict of interest in writing.
55. The working group is to determine whether any such declaration disqualifies the person from being part of the evaluation team, or whether the situation can be managed.
56. The tender evaluation criteria must be established by the working group prior to inviting tenders.
57. The capacity and capability of respondents to perform the requirements of their tender including their resourcing, financial, commercial and technical capacity are to be essential evaluation criteria.
58. A thorough risk assessment must be carried out.
Note - Guidance is available from the Risk Office and reference to the University Risk Matrix is recommended. The scope and depth of this process will depend on the overall risk profile and possible organisational consequences.
59. For high value, high risk or complex procurement, due diligence of the preferred tenderer must be considered.
60. The following matters are to be addressed by due diligence where applicable:
Note - Externally sourced information regarding tenderers may also form part of the evaluation to identify whether bankruptcy, liquidation or insolvency, false declarations or significant contract deficiencies have occurred.
61. If any respondent has proposed variations to the contract terms supplied as part of the tender documentation, the legal effect must be discussed in the first instance with the Strategic Procurement team who may recommend the advice of the University's legal advisors is required.
62. Following the evaluation of responses and the development of a shortlist, a revised or best offer may be requested of all short listed parties.
Note – the evaluation may also take into account non-price added value issues e.g. Service location, payment terms, response times, etc.).
63. Such a ‘best offer’ may be followed by further negotiation with the preferred respondent.
Note - A procurement specialist should be involved in any post-tender contract negotiations with suppliers.
64. When the tenders have been evaluated and a recommended supplier selected, a brief report is to be prepared for the Tenders Board by the purchaser or working group outlining the working group membership, the tender process, key evaluation results, the recommendation, and reasons for the recommendation.
65. The proposed draft contract that formed part of the tender documentation is to be agreed with the recommended supplier(s) prior to submission to the Tenders Board.
66. Completion of contract negotiations is subject to the Tenders Board’s endorsement of the working group’s recommendation.
67. Evergreen/Perpetual Contract is a contract that is open ended as to term. These contracts are not preferred, but are sometimes unavoidable (e.g. software maintenance contracts). The University requires that any such contract be reviewed at least every three years.
Note - A Capital Expenditure Authority (CEA) form must accompany all recommendations for capital purchases (as defined in the Asset Management Policy –and must be approved by the budget holder with the appropriate level of delegated authority.
68. Successful tenderers must be notified formally in writing.
69. Unsuccessful tenderers are to be advised as soon as possible that they are unsuccessful and offered feedback on their proposal.
70. Any feedback is to be reserved until the conclusion of the procurement process.
Tenders boards
71. Tenders boards are to:
72. Tenders boards must act promptly to review recommendations.
Special area tenders boards:
University Executive Tenders Board
73. The University Executive Tenders Board will consider recommendations for awarding tenders over $1m and will comprise three members with a delegation to be a member of the University Executive Tenders Board.
Digital Services
74. The Digital Services Tenders Board will consider recommendations for awarding tenders up to $1m for all computer and telecommunications hardware and software, networking goods and services, technology support services, computer consumables, copiers, printers, software and system solutions, and will consider recommendations for purchasing processes that do not meet the quotation and tender requirements outlined in this policy.
75. The Digital Services Tenders Board will comprise three staff members with a delegation to be a member of a University Tenders Board.
76. Each composition of the Digital Services tenders board must always have one member who is not a staff member of Digital Services.
Property Services
77. The Property Services Tenders Board will consider recommendations for awarding tenders up to $1m for all buildings, grounds and facilities infrastructure, furniture, fixtures and fittings and maintenance service contracts (such as lifts and waste management) and will consider recommendations for purchasing processes that do not meet the quotation and tender requirements outlined in this policy.
78. The Property Services Tenders Board will comprise three staff members with a delegation to be a member of a University Tenders Board.
79. Each composition of the Property Services tenders board must always have one member who is not a staff member of Property Services.
UniServices
80. The UniServices Board of Directors will consider Tender recommendations in line with UniServices Policies, Procedures and Delegations of Authority.
Financial Services
81. The Financial Services Tenders Board will consider recommendations for awarding tenders up to $1m for all other purchasing categories and will consider recommendations for purchasing processes that do not meet the quotation and tender requirements outlined in this policy.
82. The Financial Services Tenders Board will comprise three staff members with a delegation to be a member of a University Tenders Board.
83. University staff members and contractors must comply with the following essential principles of probity throughout all stages of the procurement and contracting process. These are:
84. The issue of probity in the sourcing and contracting process is the responsibility of all stakeholders involved in the process.
85. The objectives of the process are to:
86. For large, complex or potentially controversial contracts and in consultation with the Strategic Procurement Manager, it may be appropriate for the appointment of a probity advisor.
Note - A probity advisor can provide external scrutiny and ensure integrity of process. It may be necessary to involve other types of specialists during particular procurement projects. This may include legal advisers or other individuals or organisations with specific industry knowledge in relevant areas.
Note - In line with University policy, University staff members and contractors involved in any procurement decision making or review of any goods or services supplied to the University must declare any interest in, or the receipt of any gifts, hospitality or any other benefits, past or present, of any kind.
87. This information must be obtained at the beginning of the process and is used to determine if there could be any prejudice to the process and to identify appropriate management of any conflict, potential conflict or perceived conflict that may exist.
Note - Any changes in the status of any information during a procurement process must be declared to the project manager for the procurement and registered in accordance with the University Conflict of Interest Policy.
88. University staff members and contractors involved in a process for the procurement of goods and/or services must respect the sensitivity of information provided by suppliers and not disclose any information to any parties not involved in the procurement process.
89. Any situation where information may need to be supplied must be approved by the Strategic Procurement Manager.
90. Pricing and Agreement Terms and Conditions are to be treated as confidential to the University and not disclosed.
91. Any situation where information may be requested must be discussed with and approved by the project manager for the procurement.
92. Staff members and contractors involved in a process for the procurement of goods and/or services may be requested to sign a “Confidentiality Declaration”.
93. During the evaluation process a single point of contact is to be established (normally the project manager for the procurement) for communications with potential suppliers during a procurement process to ensure that information provided to suppliers is consistent and that the integrity of the process is maintained.
Policy compliance
Note - Non-compliance with this policy may lead to the University being subject to judicial review proceedings, Ombudsman investigations and other types of review or legal action. Failure to adhere to appropriate requirements can have serious financial and reputational consequences for the University.
94. A breach of this policy may be assessed by the University as constituting misconduct, serious misconduct or fraud.
95. Depending upon the severity of the breach, the University may invoke internal disciplinary action and, where appropriate, action by an external enforcement agency.
96. In addition, the University may seek the reimbursement of losses or costs from the individual(s) concerned.
97. Tender respondents are to be advised of the relevant complaint processes.
98. Any serious or unresolved complaints about procurement practices are to be referred to the Registrar.
The following definitions apply to this document:
Approver refers to the member of staff responsible for authorising expenditure or reviewing purchasing transactions. Approvers must have authority as specified in the Financial Delegations Policy.
Broader outcomes refers to the New Zealand Government’s expectations that procurement can be leveraged to achieve broader outcomes promoting public value and require agencies to incorporate or consider the priority outcomes as part of their procurement planning.
The priority outcomes are:
Capital expenditure is the purchase of assets of a capital nature (i.e. not consumed in a twelve month period and which will be used on a continuing basis) over $5,000 based on the GST-exclusive invoice value. Operating leases are treated as capital expenditure.
EOI means Expression of Interest.
Expression of interest (EOI) an EOI is an optional first stage in a multi-stage procurement process and is used to reduce the number of interested suppliers in order to minimise costs to all parties. It identifies suppliers interested in, and capable of delivering the required goods or services. Price information is generally not requested at the EOI stage. The only time indicative price information might be requested would be where the procurement had a limited budget. It should be made clear that there is no commitment by the University to purchase goods or services or proceed to an RFP or RFT as a result of issuing an EOI.
Operating expenditure covers items with a consumption period of less than a year. The definition includes equipment costing less than $5,000 and computing equipment costing less than $1,000.
Preferred supplier is a supplier with whom the University has entered into a formal contract for the supply of products or services.
OAG refers to the Office of the Auditor General.
One over one refers to consultation with and gaining the approval of an individual one level senior to the individual making the decision, or taking the action.
Owner refers to the University staff member responsible for managing the Service Level Agreement between the University and a preferred supplier.
Probity refers to honest, proper, fair and ethical conduct.
Procurement refers to the acquisition process for goods and services supplied to the University and its population.
pCard is the University of Auckland purchasing card issued by the Financial Services Division to members of staff with a purchasing role.
RFx is a generic term for RFQ, RFI, RFP, RFT.
Registration of interest (ROI) an ROI is similar to an expression of interest (EOI) in that it is used to identify suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability to do the work. It is usually the first stage of a multi-stage tender process. Information from the respondents should be supplied in a clear format and limited to a few pages. It should be made clear that there is no commitment by the University to purchase goods or services or proceed to an RFP or RFT as a result of issuing an ROI.
Request for information (RFI) is an invitation to suppliers to submit their credentials and/or present their products or services to the University. It is not a request to submit a proposal to the University for the supply of goods or services. It is also used to source or clarify information to be used in a specification for or gather information to inform the procurement strategy. No contractual relations may be created directly from an RFI.
Request for quotation (RFQ) is a request for a quotation of products and/or services from a supplier.
Request for proposal (RFP) is a means of seeking proposals from suppliers where the University is open to a range of outputs and outcomes in order to achieve a specified objective.
Request for tender (RFT) is the University's invitation to potential suppliers to submit a tender. RFT documents will usually consist of:
Right of renewal (ROR) is where an agreement includes a provision for an additional right to renew the duration of the contract. It may be held by one party (unilateral right) or more parties and may be subject to conditions such as notice or other specifics.
Selective purchase is one made with a single supplier without having invited competing tenders or proposals from other suppliers.
Staff member refers to an individual employed on a full or part time basis by the University.
Supplier contract (contract) is an agreement entered into using University templates or other format agreed to by a University legal adviser.
Tender refers to a formal process initiated by the University inviting potential suppliers to compete for the right to supply goods and services.
- Closed tender refers to a tender process that invites tenders from a selected group or list of potential suppliers.
- Open tender refers to a tender process that is publicly advertised and gives all potential suppliers the opportunity to tender.
Tendering process refers to a competitive process in which a supplier can be selected by the University to procure goods and/ or services. The goods or services may be Operating Expenditure, Capital Expenditure (which includes leases), or a mix of both.
Tender response is an offer by a prospective or existing supplier to supply goods and/or services on the terms and conditions specified by the University.
Tender boards are groups of individuals appointed by the Vice-Chancellor or his delegate to review both tender processes and requests for exemptions defined in the Procurement Policy.
University means Waipapa Taumata Rau | University of Auckland and includes all subsidiaries except UniServices who have separate procurement policies procedures and delegations of authority in place that supersede this policy.
Working group refers to the group of persons who have been assembled to work on a procurement project.
Include the following:
Content manager: Strategic Procurement Manager
Owned by: Chief Financial Officer
Approved by: Vice Chancellor
Date approved: 5 December 2022
Review date: 5 December 2027