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SECTION B - QUOTATIONS (Contracts valued at less than $100,000)

Contents of this section

1. DEFINITIONS
2. INTRODUCTION TO QUOTATIONS
3. GENERAL GUIDELINES
4. SELECTIVE QUOTATIONS AND SOLE SOURCES OF SUPPLY
5. SPECIFICATIONS AND ASSESSMENT OF QUOTATIONS (over $10,000)
6. DOLLAR VALUE THRESHOLD FOR QUOTATIONS
6.1 Orders up to $5,000
6.2 Orders $5,000 to < $10,000
6.3 Orders $10,000 to < $50,000
6.4 Orders $50,000 to < $100,000
7. METHOD FOR OBTAINING QUOTATIONS
7.1 Request for Quotation (RFQ)
7.2 Verbal Quotations
7.3 Written Quotations

1. DEFINITIONS

"Bidder" - means an entity submitting a Quotation.

"Formal Quotation" - A formal quotation refers to the central system by which Invitations to Quote forms are generated in the Procurement Section and suppliers' responses are lodged in the central Tender Box. Quotations are summarised and forwarded to the requisitioning Faculty/Division for assessment and approval.

"Quotation" - A quotation is a statement of price, terms of sale, and description of goods or services given by a potential supplier to the University. An invitation to submit a quotation may be issued verbally or in writing. A quotation may be verbal or written.

2. INTRODUCTION TO QUOTATIONS

All University officers who commit or incur expenditure against any funds administered by the University are accountable for such expenditure and have a general responsibility for the exercise of due economy. The calling of competitive Quotations is part of the process of ensuring that the best value for money is obtained. These procedures are intended to:

3. GENERAL GUIDELINES

3.0.1 The University's procurement processes are subject to internal audit. Procurement Section staff are required to review recommendations and supporting documentation prior to processing requisitions to official order stage to ensure that University policy and procedures are followed.

3.0.2 Note that the number of Quotations in each category of the Dollar Value Threshold in Section A is the minimum required. Depending on the nature or complexity of the purchase, it may be appropriate to have verbal Quotations confirmed in writing, to obtain more than the minimum number of Quotations or embark on a full Request for Tender process as outlined in Section C.

3.0.3 When obtaining Quotations, staff should always request GST inclusive prices. Details of freight costs and any discounts offered (for example, settlement discount and volume discount) should be clarified in advance.

3.0.4 Unsuccessful suppliers/contractors should be advised, on request, the name of the successful supplier but not the details of any quotation.

3.0.5 If, due to unforeseen circumstances, any of these procedures need to be varied in order for the University to operate efficiently and economically, such variations may be approved by the Executive Director, Business Services or nominee.

4. SELECTIVE QUOTATIONS AND SOLE SOURCES OF SUPPLY

4.0.1 Where it is considered that there are only a few known suppliers able to meet the requirements or there is only one known supplier (Sole Supplier) active in a particular market and as a result of this the Dollar Value Threshold requirements would not be adhered to, a Selective Quotation process may be employed.

4.0.2 It is essential to document reasons for the Selective Quotation and to show that in the circumstances the outcome reflects good value and impartiality by the University.

4.0.3 The following information must be provided on the requisition, or with the quotation documentation, in order to establish that there are only a few known suppliers or genuine sole source of supply situation:

Evidence and supporting documentation is to be provided to substantiate the existence of a limited number or sole supplier.

4.0.4 The higher the value of the goods/service, the more detailed justification for dispensing with competitive Quotations is required.

4.0.5 In all other instances, Quotations must be obtained in accordance with the Dollar Value Threshold.

4.0.6 When conducting Selective Quotations the same degree of diligence used for RFQ's must be applied when obtaining the Quotation, namely the provision of a functional specification and evaluation criteria. When this process is followed, it is possible to properly assess the technical merit compliance and therefore value for money.

4.0.7 Furthermore this helps to avoid the situation where buyers go through the discipline of seeking a formal offer to then find that what the supplier proposes is inappropriate and other more cost effective solutions were available and should have been considered.

5. SPECIFICATIONS AND ASSESSMENT OF QUOTATIONS (over $10,000)

5.0.1 A detailed specification is to be prepared prior to inviting Quotations over $10,000. If assistance is required in this regard, a Senior Procurement Officer can provide advice.

5.0.2 A standard Request for Quotation template has been created for use, where appropriate, in calling for quotations.

5.0.3 Specifications should be defined in ways which do not unduly limit the range of suppliers (e.g. specific name brands should be avoided) and should include the Evaluation Criteria (this may be at a general level).

5.0.4 Evaluation Criteria must be established in advance and made known to Bidders, and the assessment of Quotations must be made against these established criteria. Examples of evaluation criteria are:

5.0.5 The University reserves the right not to accept the lowest or any Quotation. However, where it is proposed to pass over one or more Quotations in favour of a higher Quotation, the reasons for such action are to be clearly established and documented, and must relate to the disclosed evaluation criteria.

5.0.6 Where two competitive Quotations are equal, a local supplier should be selected in preference to a supplier from outside of the region.

6. DOLLAR VALUE THRESHOLD FOR QUOTATIONS

6.0.1 As outlined in Section A all requirements not covered by a Preferred Supplier Contract or Government Contract are subject to the competitive Quotation process as determined by the following Dollar Value Threshold, unless they are subject to a Selective Quotation.

6.0.2 If the actual amount of a proposed purchase is not known with reasonable certainty, it is good practice to choose the higher value procedure as a conservative measure.

6.0.3 Splitting of transactions in order to manipulate Quotation or Delegation limits is strictly prohibited. This practice is of serious concern to the University and auditors and must not occur.

6.0.4 For an easy to read guide to the University's Procurement Policy and Procedure please see the flow chart in Section A.

6.1 Orders up to $5,000

Where the value of an order is less than $5,000, competitive Quotations are optional. However the market should be tested periodically where repeat orders are regularly placed for goods which are readily available from a number of sources.

6.2 Orders $5,000 to < $10,000

The minimum requirement for orders valued from $5,000 to less than $10,000 is the obtaining of two verbal Quotations. The requisitioning officer may obtain the Quotations. Details of Quotations obtained are to be summarised in the section provided on the Finance One Purchase Requisition (or held with documentation if purchased by credit card).

6.3 Orders $10,000 to < $50,000

The minimum requirement for orders valued from $10,000 to less than $50,000 is the obtaining of three written Quotations. Fax or email transmissions are accepted as written Quotations. Written Quotations may be obtained by:

6.4 Orders $50,000 to < $100,000

6.4.1 The procurement procedure for items in this category is the same as the previous category ($10,000 - $50,000), except that the standard RFQ template should be sent to prospective suppliers/contractors and all of the quotation documentation, including:

Are to be forwarded to the Procurement Section for review and certification by a Senior Procurement Officer(or nominee) prior to an official order being raised.

6.4.2 Specifications for Request for Quotations with an estimated value of over $50,000 may need to have more detailed evaluation criteria than the general evaluation criteria referred to in 7.1.2.

7. METHOD FOR OBTAINING QUOTATIONS

7.1 Request for Quotation (RFQ)

7.1.1 RFQ's are usually used for straightforward, lower value requirements (up to $100,000). A standard "Request for Quotation" template has been developed for your use and should be customised according to your particular need. An RFQ may be issued verbally or in writing which should align with the requirements of the Dollar Value Threshold (i.e. < $10,000 verbal otherwise written). Please refer to the Procurement Overview (Section A) for further details.

7.1.2 When developing the RFQ, staff should include the following information to Bidders:

Verbal Quotations

7.2.1 Verbal Quotations are only acceptable for purchases up to $10,000 (refer to the Procurement Overview at Section A). When obtaining and recommending verbal Quotations, staff should ensure that:

7.2.2 Details of verbal Quotations obtained should be recorded in the Finance One Requisition.

7.2.3 Hint - Before speaking to suppliers have a clear, written statement of the requirements and any related questions. This will ensure supplier responses are based on consistent information. Keep a file note of all such conversations.

7.3 Written Quotations

7.3.1 Written Quotations must be obtained for all purchases greater than $10,000 (refer Procurement Overview). When obtaining written Quotations staff should ensure that:

7.3.2 Fax or email transmissions are accepted as written Quotations.

7.3.3 All file notes regarding verbal Quotations and all original written Quotations for orders less than $50,000 are to be retained by the Faculty/Division for audit purposes.

7.3.4 All quotation documentation and recommendation for orders over $50,000 will be retained by the Procurement Section.

7.3.5 The Records Management office should be contacted for advice on retention and/or disposal of these records.