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Competitive tenders or quotations are normally required for all purchases over £75,000.ÌýThe Financial Regulations set out principles for determining total contract value.Ìý

There are certain exceptions for example in cases of specialised supply but the Executive Director, Commercial and Procurement Services (C&PS) must approve the waiving of tender and quotation procedures in writing before an order is issued.Ìý

• The checklist for purchase orders over £75k must be completed in full and a quote from the successful tender must be attached.Ìý The checklist can be found above.
• The checklist must be attached to the MyFinance requisition and will be approved as part of the requisition approval process.
• In cases where departments wish to waive tender procedures they must submit a single source justification with the checklist so that C&PS can approve under one of the exceptional conditions set out in the full tender and quotation procedures.
• The checklist, quote of chosen supplier and other relevant paperwork (banker's guarantee, single source justification) should be attached to the requisition on MyFinance before submission. ÌýAfter submission the requisition will go to C&PS and then each level of the hierarchy to approve.
• When the requisition has been approved on line, the system will automatically create a PO.
• The department may then print and despatch the order and VAT zero rating certificate if relevant.

If a tender process results in a formal contract between UCL and a supplier then a confirmation Purchase Order should be issued in all cases, and the procedures set out in this document will apply regarding approval of the order.

If the checklist indicates that a payment in advance is to be made then Departments are expected to arrange an Advance Payment Guarantee form the Suppliers bank. The procedures for Advance Payment guarantees are set out below in item 8.

VAT zero-rating applies primarily where the purchase relates to medical equipment.

All procurement above this level MUST involve C&PS. A Procurement Assessment Form should be completed by the department and submitted to C&PS in sufficient time to run an appropriate procurement process.Ìý

Where procurements are to be funded by an external source, and the funder makes it a specifically noted condition of funding that the procurement will be conducted under Public Procurement Regulations, then these will be followed in full.Ìý

UCL policy is that prepayments should be avoided because of the potential loss of funds if delivery does not take place.

It is however recognised that in certain circumstances payment has to be made to a supplier in advance of delivery, particularly where the contract is of a protracted nature or involves manufacture to order. The risk is that the supplier is unable to deliver or ceases to trade and UCL finds itself having to seek redress through the Courts.

It is therefore recommended that in all cases where a significant payment in advance is required an advance payment guarantee is obtained from the supplier's bankers. All major banks have their own forms and standard wording.

In some cases the supplier may attempt to pass on the cost of arranging the guarantee to UCL. If so the Department must meet the cost, not central Finance. Some discretion should be used and if a Department insists that it will take the risk and live with the consequences then a judgement has to be made as to whether a modest advance payment can be paid without a guarantee.

In all cases however it is essential to deal with a reputable supplier and the department concerned must be able to meet the costs from other sources should it become necessary.

Wherever possible it is recommended that payments are staggered so that they are roughly in line with the work carried out by the supplier or the service provided. This is particularly relevant in the case of annual maintenance contracts. Monthly or quarterly payments are preferable to an annual amount paid in advance.

Further advice can be obtained from Commercial and Procurement Services.