Skip to main content

Procurement Policy

On this page

Purpose | Scope | Principles | Policy statements | Roles and responsibilities | Definitions | Approval information | Version history | References

1. Purpose

1.1 The Procurement Policy (the policy) establishes:

  1. principles and requirements for the acquisition of goods and services for UTS, and
  2. standards of behaviour for staff and affiliates undertaking procurement activities.

1.2 The policy is supported by the information at Procurement at UTS (SharePoint), which provides a framework to manage the procurement of all goods and services in line with legislative requirements, particularly the Government Sector Audit Act 1983 (NSW).

2. Scope

2.1 This policy applies to all:

  1. goods and services (including capital works) procured for or on behalf of UTS or using UTS funds
  2. staff, affiliates (including consultants) and any other person (hereafter staff) involved in procurement activities or purchasing for or on behalf of UTS, and
  3. funding types.

2.2 This policy does not apply to: 

  1. UTS controlled or associated entities (refer Commercial Activities Policy)
  2. the determination of payments, wages, salaries or staff benefits (refer Recruitment and Appointment Policy and Delegations), and
  3. procurement requirements related to research (refer Procurement Requirements Related to Research (PDF) available at Procurement at UTS (SharePoint)).

3. Principles

3.1 UTS procurement activities are guided by the principles of value for money, transparency, probity, responsibility and safety as outlined in this policy and at Procurement at UTS (SharePoint).

4. Policy statements

Financial responsibility

4.1 UTS must manage its finances responsibly. The procurement process, including the commitment of funds, can begin only once staff responsible for the procurement activity have:

  1. demonstrated the need for the good and/or service
  2. identified and confirmed funding sources in line with finance planning priorities
  3. received the necessary approvals in line with this policy and the Delegations, and
  4. ensured that any exemptions to normal processes have been approved (refer Exemption management).

Procurement responsibility

4.2 Staff are responsible for: 

  1. following the requirements of this policy and the information at Procurement at UTS (SharePoint) 
  2. acting in accordance with the Code of Conduct at all times, and 
  3. undertaking any procurement training as directed by the Chief Financial Officer (CFO). 

4.3 Supervisors, purchasers and contract managers have particular responsibility for the transparency and integrity of the procurement process at UTS, ensuring the principle of open and fair competition is maintained and recorded throughout. Staff with procurement responsibilities must have this reflected in their workplan.

4.4 When approving a procurement activity, the authorised delegate (refer Delegations) is confirming: 

  1. the expenditure of funds (or contract engagement for future expenditure of funds), and 
  2. that the requirements of this policy and the information at Procurement at UTS (SharePoint) have been followed. 

4.5 For contracts of a greater value than AU$250,000, a contract manager must be assigned and approved by the CFO. The contract manager will:

  1. retain overall responsibility for managing the contract
  2. ensure best value for UTS is achieved, and
  3. plan a new procurement process 6 months before the contract expires.

4.6 Consultants may be appointed to provide guidance and advice as part of a procurement activity or as part of a wider procurement process. However, the staff member leading the procurement activity has overall accountability for the procurement activity or process and must ensure that consultants engage with procurement activities and processes in line with the requirements and limitations outlined at Procurement at UTS (SharePoint).

Value for money, probity, sustainability and social justice

4.7 When undertaking a request for quote (RFQ) or a request for tender (RFT) process, staff must ensure that the procurement evaluation process is compliant and transparent (refer Procurement at UTS: Procurement evaluation (SharePoint)).

4.8 Value for money for a procurement activity must be determined by evaluating all relevant risks, costs and benefits on a whole of life basis and not just price alone (refer Procurement at UTS: Managing procurement (SharePoint)). 

4.9 When acquiring goods and services, staff must:

  1. act ethically and responsibly in line with the Code of Conduct and the Equity, Inclusion and Respect Policy
  2. consider sustainability principles, including economic, social and environmental impacts (refer Sustainability Policy)
  3. deal fairly, impartially and consistently with all suppliers
  4. declare any actual, potential or perceived conflicts of interest to prevent conduct that could impair public confidence in the integrity of UTS (refer Conflicts of Interest Disclosure Policy).

4.10 The CFO will work with subject matter experts to agree and publish diversity spend targets to support Indigenous and social suppliers (refer Procurement at UTS: Ethical procurement (SharePoint)). These targets will be reasonably aligned to the NSW Government’s Indigenous target. When undertaking a procurement activity, staff must consider Indigenous suppliers that can demonstrate the capability to meet the procurement need.

4.11 UTS will: 

  1. only work with suppliers who meet the ethical standards and behaviours outlined in the Supplier Code of Conduct (available at Strategic procurement) 
  2. align procurement activities with the university’s sustainability, social impact, Indigenous, equity, modern slavery and other requirements (refer Procurement at UTS: Ethical procurement (SharePoint)), and set performance targets that will measure progress
  3. report on measures taken to ensure that goods and services procured were not the product of modern slavery (refer Eradicating modern slavery), and
  4. apply the appropriate minimum methods aligned to the relevant procurement value (refer Procurement values and minimum methods). 

Preferred suppliers and purchase orders

4.12 UTS preferred suppliers are selected following a public tendering process. The Finance Unit publishes a list of UTS preferred suppliers (available at Procurement at UTS: I want to buy (SharePoint)) who represent the best value, quality, range, delivery and customer service for the relevant goods and services. Preferred suppliers must be used where possible.

4.13 All suppliers must agree to abide by the Supplier Code of Conduct (available at Strategic procurement) and other terms and conditions outlined in the contract.

4.14 UTS may also access government agency established procurement contracts and supplier panels for commonly used goods or services (purchase volumes associated with government agencies are larger and often attract increased supplier discounts or value adds). Refer Procurement at UTS: I want to buy (SharePoint).

4.15 A purchase order is required for all purchases. Purchase orders must be raised before receiving the required goods and/or services, not after the invoice has been received. Purchase order exemptions may be requested from the Finance Unit in specific situations (refer Procurement at UTS: Purchasing and suppliers (SharePoint)).

4.16 Where preferred suppliers are unable to meet a procurement need, alternative suppliers may be required. New suppliers must be sourced via the appropriate procurement process outlined at Procurement at UTS: Purchasing and suppliers (SharePoint) and must be registered with the Finance Unit.

Procurement values and minimum methods

4.17 The value of a procurement activity is determined based on the full amount expected to be spent within a 12-month period, or for the term of the contract, including any years that are an optional extension to the contract.

4.18 The value of the procurement activity dictates the required minimum procurement method as follows (and outlined at Procurement at UTS: Procurement process (SharePoint)). 

  1. For low value expenditure, below AU$2000 (restricted categories), a UTS corporate credit card is the preferred payment method where there is not a preferred supplier (refer Staff Travel, Expenses and Credit Card Policy). 
  2. For a procurement activity with no preferred supplier, quotes (following a RFQ process) must be sought before selecting a supplier as follows: 
    • AU$2000 to AU$10,000: A single quote is required
    • AU$10,001 to AU$50,000: 2 quotes are required
    • AU$50,000 to AU$250,000: 3 quotes are required. 
  3. A procurement activity exceeding AU$250,000 (excluding GST) is classified as a strategic procurement and must be discussed with the Finance Unit as part of an open RFQ process, noting that:
    • this value represents the full term of the contract plus any years that are optional extensions, and
    • in circumstances where the supplier market is well understood, and UTS can clearly identify suppliers that should be invited to tender, and where the cost and effort of running an open tender is disproportionate to the potential competitive benefit for both UTS and suppliers, a select tender exemption may be requested (refer Exemption management).

4.19 For complex, higher-value and/or ongoing procurement activities the Finance Unit may run an activity to establish either a UTS supplier panel or a prequalified supplier list. These arrangements will follow approved guidelines to allow for higher procurement thresholds across the duration of the procurement need. This process is approved by the CFO.

4.20 The Finance Unit will advise on the requirement for an external probity adviser for some procurement activities. An external probity adviser will normally be appointed for activities: 

  1. in excess of AU$5 million (excluding GST) contracted value, and/or
  2. deemed complex and/or high risk by the Finance Unit.

4.21 The value of the procurement activity must not be divided into separate transactions for the purpose of bringing it below a threshold value that would require additional quotes, a formal quote or tender and/or a financial delegation limit.

4.22 In the event that there are identifiable commercial reasons for splitting the value of the procurement activity between 2 or more suppliers, or placing more than one order with the same supplier, the whole requirement for the total value involved must be approved in line with the Delegations.

Flow-on work

4.23 Staff must endeavour to anticipate the potential for flow-on work before seeking quotes or tenders. The CFO or an audit process may determine that flow-on work is unreasonable and should have been anticipated as part of normal tendering processes. 

4.24 Where genuine flow-on work is required, the total value of further engagements must not exceed the lesser of: 

  1. 50 per cent of the total cost of the initial engagement 
  2. AU$50,000 excluding GST.

Exemption management

4.25 This policy allows for exemptions in certain circumstances, including for a select tender process and a direct negotiation process (refer Procurement at UTS: Exemptions (SharePoint)). 

4.26 Exemptions must be approved before any alternative process begins. Failure to receive prior approval for an exemption to a procurement activity is considered a breach of this policy. 

4.27 Staff requesting an exemption must use the appropriate exemption form (available at Procurement at UTS: Exemptions (SharePoint)), and provide sufficient evidence and advice to support the request. 

4.28 Exemptions may only be granted where the request: 

  1. is a legitimate and true exception 
  2. still represents value for money 
  3. has been risk assessed, and 
  4. aligns with the principles of probity, equity and transparency as part of the standard policy requirement. 

4.29 Exemptions are approved in line with the requirements outlined at Procurement at UTS: Exemptions (SharePoint). The Finance Unit will include all exemptions on an exemptions register. 

4.30 The CFO may approve a consultant leading a procurement activity as an exemption on a case-by-case basis. This must be recorded as part of the procurement activity.

Risk and compliance

4.31 A risk assessment must be undertaken for relevant procurement activities, including the implementation of risk mitigation strategies in line with the Risk Management Policy. Procurement activity risks must be assessed to ensure: 

  1. compliance with health and safety obligations (refer Health, Safety and Wellbeing Policy), noting that staff who purchase equipment, materials or chemicals must ensure that the risk of injury or illness is appropriately managed and staff are protected from any harm or hazard
  2. legislative compliance requirements, including government expectations outlined in the Guidelines to counter foreign interference in the Australian university sector, modern slavery legislation (refer Eradicating modern slavery) and the International Collaboration and Engagement Portal: Regulatory considerations (SharePoint)) 
  3. the financial solvency of the unit, the faculty and/or the university, and 
  4. the maintenance of the university’s brand and reputation.

4.32 To identify risks, ensure that UTS’s information security and cybersecurity position is not negatively impacted, and meet compliance requirements, staff involved in procurement must obtain approval from the relevant areas within UTS, including but not limited to the:

  1. Property Unit for acquisitions that impact on existing or potential physical assets
  2. Data Analytics and Insights Unit for acquisitions that impact on data management, artificial intelligence, data retention and related systems, and 
  3. Information Technology Unit (ITU) for all IT acquisitions.

4.33 When acquiring or building new IT for local use or university wide application, staff must seek advice and endorsement from ITU as part of the procurement process. All new hardware, software and smart devices must be approved through the UTS IT solution design framework in advance of the acquisition to ensure that proposed solutions meet architectural and cybersecurity standards (refer Acceptable Use of Information Technology Resources Policy).

Records management

4.34 The Finance Unit is responsible for developing and communicating appropriate guidance to ensure that procurement processes and decisions are documented (refer Procurement at UTS (SharePoint)). All staff and contractors must follow these documentation processes. This includes:

  1. ensuring complete and accurate records are maintained and managed in line with the Records Management Policy, and 
  2. documenting the onboarding of consultants to support procurement activities. All staff and contractors must follow these documentation processes.

4.35 Any information that is sensitive or confidential must be managed in line with the Privacy Policy.

4.36 All procurement activities are subject to the Government Information Public Access Act 2009 (NSW) (refer Right to information (GIPA)). 

4.37 As part of UTS’s compliance with GIPA, UTS maintains a publicly available register of contracts (refer Register of contracts). Any contract exceeding AU$150,000 (including GST) with a private organisation must be included on the register of contracts (refer Contracts and GIPA (SharePoint)). 

Breaches, complaints and conflicts of interest

4.38 Any actual, perceived or potential conflict of interest that arises during any stage in the procurement process, or during any procurement activity, must be declared as soon as possible in line with the Conflicts of Interest Disclosure Policy.

4.39 All suspected breaches of this policy must be reported to the relevant supervisor, dean or director for action by the CFO. The CFO is responsible for investigating suspected breaches.

4.40 Breaches will be managed in accordance with the relevant Enterprise agreements, the Code of Conduct, relevant contracts of employment or engagement and relevant legislation where applicable.

4.41 Suspected breaches that may involve serious wrongdoing (including corrupt conduct, maladministration or serious or substantial waste) must be reported and managed in line with the Whistleblowing and Public Interest Disclosures Policy.

4.42 All complaints regarding procurement practices across UTS should be submitted in writing to the CFO. The CFO will take action and/or provide a response in line with any relevant legislation or UTS policy requirements.

5. Roles and responsibilities

5.1 Policy owner: The Chief Financial Officer (CFO) is responsible for enforcement and compliance of this policy, ensuring that its principles and statements are observed. The CFO is also responsible for the approval of any associated university level procedures, forms, templates and the terms of reference for the procurement steering committee.

The CFO will develop an annual UTS procurement report for the Audit and Risk Committee of Council, which will also assess exemptions or other relevant reporting as deemed appropriate or agreed. The Audit and Risk Committee will consider this report and make recommendations, as appropriate, to the Council or Vice-Chancellor. 

The CFO is also responsible for: 

  1. overseeing the governance and probity of all UTS acquisitions for goods and services through tender processes 
  2. approving information on procurement evaluations 
  3. providing oversight of procurement reporting, performance and policy, and 
  4. maintaining and approving (or otherwise) applications for exemptions in the procurement exemptions register.

5.2 Policy contact: The Head of Shared Services has overall responsibility for the implementation and management of this policy, accountability for the procurement of goods and services, and responsibility for the appropriate procurement infrastructure needed to support the business of the university, including the Procurement at UTS (SharePoint) site.

5.3 Implementation and governance roles:

Supervisors have a responsibility to, where possible:

  1. ensure staff within their areas of responsibility are aware of appropriate procurement practices and have the appropriate training 
  2. act in UTS’s best interests in relation to any procurement that they recommend or authorise 
  3. act in accordance with the Delegations, this policy and the information at Procurement at UTS (SharePoint) 
  4. allocate resources to support the requirements of this policy 
  5. receive and act on reports of actual or potential conflicts of interest 
  6. engage contractors in line with this policy and ensure they act in accordance with its provisions 
  7. critically review procurement processes and documentation and provide considered opinion and approval when appropriate, and 
  8. ensure official records of procurement activity leading up to the awarding of a contract or purchase, including any standard operating procedure tender documentation and approvals, is placed on an official TRIM file. This includes the generation of records to support decisions, documentation of the evidence and advice relied on to support all stages of the procurement process. 

The Finance Unit is responsible for: 

  1. providing advice, guidance and support on planning, initiation and implementation of sourcing activities covered under the procurement methods in this policy, and 
  2. the development, review and maintenance of Procurement at UTS (SharePoint), ensuring that it complies with this policy. 

Consultants may only engage with the procurement process under conditions approved by the CFO and the supervision of the staff member leading the procurement process as outlined in this policy. 

The Office of General Counsel is responsible for UTS standard contracts and contract templates.

6. Definitions

The following definitions apply for this policy and any associated procedures or guidance. These are in addition to the definitions outlined in Schedule 1, Student Rules. Definitions in the singular also include the plural meaning of the word.

Affiliate is defined in the Code of Conduct.

Conflict of interest is defined in the Conflicts of Interest Disclosure Policy.

Consultant for the purposes of this policy means a person or organisation engaged under contract on a temporary basis to provide professional advice to staff or to UTS to assist decision-making or project goals. The advisory nature of their work differentiates consultants from other types of affiliates. While some suppliers may self-refer as ‘consultants’, for the purposes of procurement at UTS, these suppliers are defined as ‘professional services’ or ‘contingent labour’. 

Contract manager is a member of staff responsible for contract oversight, ensuring that both parties comply with the terms and conditions of the supplier agreement. This includes management and administration of tasks relating specifically to contracts, including but not limited to tracking deliverables and obligations, ensuring price or rate compliance, tracking contract milestones and dispute resolution.

Flow-on work means work that is directly related to an engagement with a supplier that has not been anticipated at the time of seeking initial quotes or tenders and therefore not included in the initial scope of work. 

Pre-qualified supplier list means a group of suppliers who are contracted to supply goods and/or services to UTS, identified by the Finance Unit as part of a procurement activity. These lists are normally open to additional suppliers that meet the criteria and are approved by the Chief Financial Officer.

Preferred supplier (also UTS preferred supplier) means a provider of goods and services that has been approved and vetted by the Finance Unit and has established a contract with the university. Preferred suppliers are published by the Finance Unit, following a rigorous public tendering and selection process that offers best value for money in a particular category of goods or services, in a number of individual purchase transactions, over a period of time.

Probity means ensuring that decisions are made ethically and with integrity. 

Probity adviser is an external expert appointed to monitor and/or manage any conflicts of interest, ensure compliance with processes and procedures, check completeness of documentation, record minutes and maintain effective records.

Procurement means the overarching function that describes the activities and processes to acquire goods and services. Importantly, and distinct from ‘purchasing’, procurement involves the activities involved in establishing fundamental requirements, such as market research, vendor evaluation and negotiation of contracts. It can also include the purchasing activities required to order and receive goods and services.

Procurement activity means any of the activities or processes involved in the process of procurement. 

Procurement evaluation means the assessments and appraisals undertaken to determine the need, the risks, how to meet the principles of probity, social justice and value for money when recommending a supplier be appointed.

Procurement method means the approved method of acquiring a good or service as outlined in this policy.

Purchaser means the staff member who is responsible for purchasing on behalf of UTS. Purchasers support the procurement activities of supervisors and must raise purchase orders with preferred suppliers as outlined in this policy and at Procurement at UTS (SharePoint).

Purchasing (also making a purchase) means the process of ordering and paying for goods and services from suppliers.

Quotation means an offer, either written or verbal, made in response to an invitation to supply specified goods or perform a service.

Serious wrongdoing is defined in the Whistleblowing and Public Interest Disclosures Policy.

Staff is defined in the Code of Conduct. 

Supervisor is defined in the Code of Conduct.

Supplier panel means a group of preferred suppliers who are contracted to supply goods and/or services to UTS as a result of a tender process. Supplier panels are approved for a fixed period of time and are approved by the Chief Financial Officer.

Tender means an offer made in writing in response to an open tender process or invitation to supply specified goods or to perform a service as set out in the relevant tender documentation.