Table of Contents
1. Introduction
2. Objectives
3. Scope
4. Principles
5. Procurement Process
6. Vendor Selection and Management
7. Competitive Bidding
8. Purchase Orders
9. Contract Management
10. Payment Terms
11. Conflict of Interest
12. Documentation and Record Keeping
13. Compliance and Review
1. Introduction
The Procurement Policy of the Society for Urban & Rural Enlightenment (SURE) outlines the principles and procedures for acquiring goods and services. This policy aims to ensure that procurement activities are conducted in a transparent, efficient, and ethical manner, complying with all applicable laws and regulations.
2. Objectives
- Ensure transparency and accountability in the procurement process.
- Achieve value for money through competitive and fair procurement practices.
- Promote efficient procurement practices that meet the organization's needs.
- Ensure compliance with relevant laws and regulations.
3. Scope
This policy applies to all procurement activities undertaken by SURE, including the acquisition of goods, services, and works. It covers all departments and projects within the organization.
4. Principles
- Transparency: All procurement processes should be transparent and open to scrutiny.
- Fairness: All potential suppliers should be treated fairly and given equal opportunity to compete.
- Value for Money: Ensure that the organization receives the best possible value for its expenditure.
- Accountability: Individuals involved in procurement are accountable for their actions and decisions.
- Ethical Conduct: Procurement activities should be conducted with integrity and in accordance with ethical standards.
5. Procurement Process
1. Needs Assessment: Identify and define the need for goods or services.
2. Requisition:Submit a requisition form approved by the relevant authority.
3. Sourcing:Identify potential suppliers through market research or pre-qualified vendor lists.
4. Quotation:Obtain quotations from at least three suppliers for purchases above a specified threshold.
5. Evaluation:Evaluate quotations based on predefined criteria, including cost, quality, delivery time, and supplier reputation.
6. Approval:Obtain necessary approvals from authorized personnel.
7. Purchase Order: Issue a purchase order (PO) to the selected supplier.
8. Delivery and Inspection: Receive and inspect goods or services to ensure they meet the required specifications.
9. Payment:Process payment according to agreed terms and conditions.
6. Vendor Selection and Management
- Vendor Registration: Maintain a database of registered and pre-qualified vendors.
- Evaluation Criteria: Use clear and objective criteria for evaluating and selecting vendors, such as price, quality, reliability, and previous performance.
- Vendor Performance: Regularly review and assess vendor performance to ensure ongoing compliance with contractual terms and organizational standards.
- Supplier Diversity: Encourage diversity by including vendors of different sizes and backgrounds.
7. Competitive Bidding
- Thresholds: Define thresholds for when competitive bidding is required.
- Invitation to Bid: Invite bids from multiple vendors to ensure competitive pricing.
- Bid Evaluation: Form a committee to evaluate bids based on predefined criteria.
- Awarding Contracts: Award contracts to the most suitable bidder based on evaluation results.
8. Purchase Orders
- Issuance: Issue a purchase order for all approved purchases.
- Details: Include detailed specifications, quantities, prices, delivery dates, and terms and conditions.
- Authorization: Ensure purchase orders are authorized by designated personnel.
9. Contract Management
- Contract Development: Develop contracts that clearly outline the terms and conditions, deliverables, timelines, and payment terms.
- Monitoring: Monitor contract performance to ensure compliance with terms and conditions.
- Amendments: Document and approve any changes to contracts through formal amendments.
10. Payment Terms
- Payment Schedule: Agree on a payment schedule with the supplier.
- Documentation: Ensure all necessary documentation, such as invoices and delivery receipts, is in place before processing payments.
- Timely Payments: Process payments promptly according to agreed terms.
11. Conflict of Interest
- Disclosure: Require all individuals involved in procurement to disclose any potential conflicts of interest.
- Mitigation: Implement measures to manage and mitigate conflicts of interest.
12. Documentation and Record Keeping
- Records: Maintain accurate and complete records of all procurement activities.
- Retention: Retain procurement records for a specified period in compliance with legal and organizational requirements.
- Access: Ensure procurement records are accessible for review and audit purposes.
13. Compliance and Review
- Compliance: Ensure all procurement activities comply with this policy and relevant laws and regulations.
- Training: Provide training to staff involved in procurement on policy requirements and procedures.
- Review: Regularly review and update the procurement policy to reflect changes in laws, regulations, and organizational needs.