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Procurement Contracts Board Policy

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Section 1 - Background and Purpose

(1) The purpose of the Procurement Contracts Board is to provide and obtain senior level engagement, visibility and support for strategic procurement proposals where the full contract value exceeds $3,000,000.

(2) This Policy provides for the formation of the Procurement Contracts Board.

(3) The purpose of this Procedure is to provide procurement guidelines for all departments of the University’s metropolitan and regional campuses.

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Section 2 - Scope

(4) Applies to:

  1. All Campuses
  2. All Staff
  3. All University Contractual requirements greater than $3,000,000
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Section 3 - Policy Statement

(5) The Procurement Contracts Board brings senior leadership and organisational support to formal strategic procurement and oversees key contracts and procurement proposals to ensure they are aligned to broader business objectives. The Procurement Contracts Board will consider:

  1. contract and category strategies and award proposals;
  2. contract variations; extensions and/or terminations;

(6) This Policy is subject to the conditions detailed in the Procurement Contracts Board Procedure document and to the procedure documents listed in the Supporting Procedures section of this Policy. 

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Section 4 - Procedure

Part A - The Role

(7) The purpose of the Procurement Contracts Board is to provide and obtain senior level engagement, visibility and support for strategic procurement proposals by: 

  1. Confirming the business unit has a valid business case and budget availability prior to submission to the Procurement Contracts Board;
  2. bringing senior leadership and authority to formal strategic procurement
  3. retaining oversight of key contracting and procurement strategies;
  4. ensuring rigor and consistency of commercial proposals and in external commercial engagements.
  5. Confirming that appropriate probity protocols are in place.

(8) The Procurement Contracts Board may convene to consider:

  1. contract and category strategies and Award proposals; 
  2. contract variations/extensions/terminations; and 

(9) The Procurement Contracts Board may also:

  1. Support proposals and the mandate to proceed with external commercial engagements;
  2. Support proposals – with caveats; or
  3. Discuss an action plan to revise the proposal if required.

Part B - Contracts Board    

Governance

(10) The Procurement Contracts Board will review and consider procurement submissions from business units with an authorised contract value of $3,000,000 and over. 

Membership

(11) The quorum of the Procurement Contracts Board is three Members:

  1. Chief Financial Officer - (Finance and Chair); 
  2. Vice-President (Administration) (Business) and;
  3. Director, Strategic Sourcing and Procurement (Procurement)

(12) The Procurement Contracts Board will be supported by the Procurement Contracts Board Coordinator.

(13) Any Member may invite other advisors/non-core participants if a submission falls within the advisor’s/non-core participant’s scope or expertise. 

(14) Each Member must nominate a delegate and inform the delegate of their responsibilities if they are unable to attend a meeting. 

Member Roles

(15) The role of the Chair is to:

  1. Read proposals prior to the meeting;
  2. Ask submitters questions before the meeting if required;
  3. Challenge the commercial strategy/structure of proposal as required;
  4. Create an environment to adequately challenge/review proposals and promote open and frank discussions;
  5. Ensure the process is supported by the business;
  6. Ensure all members or their delegates participate in each session;
  7. Delegate an alternative attendee if unable to attend the session.

(16) The Chair has the deciding vote in the event that a majority decision cannot be reached.

(17) The role of each Member is to:

  1. Read proposals prior to the meeting
  2. Ask submitters questions before the meeting if required;
  3. Consider whether the proposal will result in an outcome that supports strategic business direction
  4. Ensure commercial robustness of the proposal
  5. Review and challenge within your area of experience/expertise and trust others will do the same.

Administrative Support

(18) The Procurement Contracts Board Coordinator’s role is to:

  1. Check proposals for completeness prior to submission;
  2. Verify that business support has been obtained prior to the meeting;
  3. Ensure proposals are received prior to the meeting;
  4. Create and forward an agenda to each of the Members in advance of the meeting to facilitate pre-reading;
  5. Inform the Chair of any issues or concerns to address at the meeting;
  6. Keep the meeting both on track and on time;
  7. Prepare and circulate Minutes; and
  8. Maintain records and an audit trail of organisational support.

Part C - Submissions

(19) All Proposals must be submitted using the standard template(s) found on the Procurement Services Intranet Site.

(20) Strategic Procurement Category Managers must review and support submittals prior to submission.

(21) Documents should be concise but complete and must not incorporate other embedded or attached documents.

(22) Transparency to the market and maintaining sound, ethical processes are expectations and will not be outlined in submitted documents.

(23) All Proposals must be submitted to the Procurement Contracts Board Administrative Officer within a reasonable time prior to the meeting to allow:

  1. the review of the documentation prior to forwarding to Board Members; and
  2. the Board Members to have adequate pre-reading time.

(24) Documents will be reviewed for completeness by the Administrative Officer, but it is the responsibility of the submitter and/or Category Manager to ensure a well written, concise and compliant document is presented. 

(25) Annual, Blanket and Category strategies may be submitted and supported by the Procurement Contracts Board.  Depending on the risk, value or threshold, these strategies may be required to go to Finance and Resources Committee, Senior Executive Group, or University Council for further support. 

(26) Procurement Contracts Board members may request clarifications from submitters prior to the meeting. Questions should be forwarded to the submitter and copied to all members and the Administrative Officer. 

(27) When presenting to the Procurement Contracts Board, the submitter will presume that each Member has pre-read the submissions.

Part D - Thresholds

(28) Threshold authority limits are set by Strategic Sourcing and Procurement under the guidance and requirements of the business and the Finance Division.  These thresholds may be subject to change as the Strategic Sourcing and Procurement function matures. 

(29) Full contract life value will determine which route is taken to obtain organisational support. 

(30) Procurement Contracts Board support will not create a financial commitment. 

Part E - Process

(31) Prior to submission to the Procurement Contracts Board, the submitter will have:

  1. obtained support from the relevant departmental Senior Manager or Director thereby demonstrating that the requirement is a genuine strategic business need, and that budget funds are available.

(32) The submitter will work with the applicable Category Manager to prepare a Procurement Contract Board Strategy/Award Proposal Form. 

(33) The Procurement Contract Board Strategy/Award Proposal Form will be submitted to the Contracts Board Coordinator at least ten working days before the Contracts Board monthly meeting.

(34) After deliberation of the Procurement Contracts Board, the submitter will be advised of the outcome of their Proposal:

  1. if approved; the Category Manager, will oversee the execution of the strategy and / or creation of the relevant Contract.
  2. if rejected, the submitter may be invited to amend their Proposal and re-submit.

(35) In compliance with the Expenditure Delegations – Major Table of Authorities, all relevant supported proposals will subsequently be submitted to either Vice-Chancellor and / or Council for approval prior to the contracting stage of strategy execution.

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Section 5 - Definitions

(36) For the purpose of this Poilcy and Procedure:

  1. Authorised Contract Value (ACV) means: The total likely expenditure over the full term of the proposed contractual arrangement.
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Section 6 - Stakeholders

Responsibility for implementation – Director, Strategic Sourcing and Procurement; Chief Financial Officer; and Vice-President (Administration)
Responsibility for monitoring implementation and compliance – Director, Strategic Sourcing and Procurement;and Procurement Process Officer.