The purpose of this policy is to set a framework for decisions in respect of all purchasing by the charity. All staff are required to follow this policy either as budget holders or under delegated authority from a budget holder. Staff are reminded that no spend may be made without the relevant budget holder’s prior knowledge and agreement. This policy should be read in conjunction with the Conflict of Interests Policy, Bribery Policy and the Financial Regulations. This policy does not apply to the engagement of staff, contracts for office space or services relating to governance for which decision is required by the Board or ARC.
Value For Money
The overall consideration in deciding on new or replacement contracts is that of value for money (generally known as VFM). The concept of VFM is somewhat subjective in application but essentially requires all budget holders to consider a number of factors in making decisions. VFM applies to all spending. The factors to be considered when making any purchasing decision will include:
- Price and budgetary constraints;
- Functionality, quality and reliability of the goods or services;
- Timing; when are goods or services required and when will they be available;
- Previous experience of suppliers, ongoing relationships and contracts.
As the cost of a contract of a transaction rises so does the potential impact of a poor decision. Procurement decisions therefore require more strenuous effort and formality as the cost increases. Price thresholds are set to make this process practical. The limits apply to the gross value of single transactions and the total cost of periodic contracts.
|Under £200||Consideration of alternative suppliers at the budget holder's discretion|
|£201 - 500||No formal quote required but research multiple supplier pricing|
|£501 - 2,000||Minimum of 1 quote|
|£2,001 - 5,000||Minimum of 2 written quotes|
|£5,001 - 10,000||Minimum of 3 written quotes|
|Above £10,000||Tender process|
Contractual evidence should be retained for 6 years after the end of the contract.
Publicly Funded Projects
The charity does not currently receive public funding. Staff should be aware that if government granted funding were to be received statutory regulations require the application of more stringent rules regarding a potential EU-wide tendering process. Reporting to the funding body that these rules have been applied is also generally required.
- If the minimum number of quotes cannot be obtained for any reason this must be reported to the CEO.