Procurement Procedures for Laboratory/Teaching/Research Equipment, Laboratory Consumables and Special Services

1.0

Purpose To ensure the University achieves best value for money from purchases of laboratory/teaching/research equipment, laboratory consumables and special services.

2.0 2.1

Scope These procedures apply to the procurement of laboratory/teaching/research equipment (including ICT equipment and software in laboratory for teaching and research purposes), laboratory consumables and special services required by faculty/centre for foundation studies for conducting undergraduate/postgraduate programmes and research grant projects. In the context of these procedures, laboratory consumables include teaching materials, ICT consumables in laboratory for teaching and research purposes, chemicals, lab ware, glassware and components. Special services include maintenance and repair services for teaching/research equipment, ICT equipment and software in laboratory for teaching and research purposes, modification to equipment and furniture, professional services e.g. elemental analysis and other tests where facilities/instruments are not available in the university. Attachment 1 shows an overview of the procurement procedures for laboratory/teaching/research equipment, laboratory consumables and special services. Database of Registered Suppliers The University kept and maintained a centralized database for registration of suppliers for goods and services required by the University. The registration of new suppliers is an ongoing process. Vendors/contractors who are interested to register as registered supplier for goods or services to the University may download and complete the Supplier Information Form and submit it with the relevant documents to Division of Finance. Faculty/Centre for Foundation Studies (CFS) that procures goods or services shall request quotations from the registered suppliers in the centralized database.

2.2

2.3

3.0 3.1 3.2

3.3

4.0 4.1

Faculty General Office Staffs to Administer Procurement The Dean of Faculty/Director of CFS shall assign two (2) Faculty General Office staffs to administer the procurement processes of goods and services. The period of each staff assigned to administer the procurement of goods and services shall be two (2) years. The Dean of Faculty/ Director of CFS shall authorize the Faculty General Office staff assigned in procurement to access the list of registered suppliers for goods and services in the centralized database, through request forwarded to Software Development and Multimedia Services Centre. Purchase Request Process Undergraduate/postgraduate programmes: (a) Laboratory/teaching equipment and special services (i) (ii) An academic staff member teaching the subject unit identifies the need for laboratory/teaching equipment or special services. The academic staff initiates a purchase request by providing precise specifications of laboratory/teaching equipment and special services needed, the name of registered suppliers in the University centralized database and any add-on of non-registered suppliers to be invited to quote for the goods or services required for consideration in the Departmental Purchasing Committee meeting.

4.2

5.0 5.1

(b)

Laboratory consumables The laboratory officers in consultation with the relevant teaching staff member, initiates the purchase request for laboratory consumables needed and providing precise specifications, the name of registered suppliers in the University centralized database and any add-on of non-registered suppliers to be invited to quote for the goods or services required for consideration in the Departmental Purchasing Committee meeting.

5.2

Research grant projects: The researcher initiates the purchase request for equipment, consumables and special services needed and provides precise specifications, the name of registered suppliers in the University centralized database and any add-on of non-registered

suppliers to be invited to quote for the goods or services required for consideration in the Departmental Purchasing Committee meeting. 5.3 In the event that the particular goods or services are available from only one supplier, the requirements of this procurement procedure are waived. The Chairman of the Departmental Purchasing Committee meeting shall keep in file the documentation in support of waivers made on this basis for audit purposes. Departmental Purchasing Committee The membership of the Departmental Purchasing Committee would comprise of a Head of Department and 2 members to be appointed by the Faculty. The Departmental Purchasing Committee shall review the purchase request of the initiator and recommend it to be approved by the relevant approving authorities stated in paragraph 7.0 below. Purchase Request Approving Authorities The Faculty General Office staffs assigned to procure goods and services compiled the Purchase Request recommended by Departmental Purchasing Committee and submit it for approval by the approving authorities outlined below:
Total Value of Purchase Not Exceeding RM100,000 Per Item Faculty Management Committee Above RM100,000 to Not Exceeding RM500,000 Per Item Budget and Procurement Committee Above RM500,000 Per Item Senior Management Committee

6.0 6.1 6.2

7.0 7.1

Types of Purchase Request

Laboratory/teaching/ research equipment Software in laboratory for teaching and research purposes

Types of Purchase Request

Total Value of Purchase Not Exceeding RM10,000 Per Item Faculty Management Committee Above RM10,000 to Not Exceeding RM500,000 Per Item Budget and Procurement Committee Above RM500,000 Per Item Senior Management Committee

Laboratory consumables and Special Services

7.2

Upon approval by the relevant authority on the Purchase Request, the Faculty General Office staffs submit the Purchase Request RFQ to Faculty Management Committee for approval. Financial Thresholds for Quotations and Tenders The decision on whether a purchase should be handled under Request For Quotation (RFQ) or tender processes is based on the procurement value per item involved which is as follows: Procurement Value Per Item Procurement Processes
RFQ Tender

8.0

Procurement Procedures
Refer to para. 9.0 Attachment 2

Minimum Number of Quotations/Tenders

Three (3) written quotations Three (3) tenders

Not exceeding RM1 million RM1million and above

9.0 9.1

Request for Quotation (RFQ) Procedures RFQ process shall be used by faculty/CFS for purchasing laboratory/teaching/research equipment, laboratory consumables and special services with total value per item not exceeding RM1million. The Faculty General Office staff assigned to administer RFQ process shall ensure that RFQ letters signed by the Dean of Faculty/Director of CFS or person authorized by the Dean are sent to the list of suppliers approved by the Faculty Management Committee. All RFQ invitations to suppliers are required to send via BOTH email and fax. RFQ of specific item, the initiator of the purchase request is required to conduct a particular briefing session (not briefing the companies individually) on the drawing design and etc. to all companies that were invited to quote. All suppliers receive the RFQ letter and receive the same information such as specification of goods or services to be provided and quotation closing date and time, at or about the same time. Brand name of item(s) to be procured should not be specified in the RFQ letter.

9.2

9.3

9.4

10.0 10.1

Submission of Quotation Suppliers are requested to submit their quotations in sealed envelopes and drop into the specified locked Quotation Box on or before the quotation closing date and time. Nevertheless, if Faculty Management Committee decided to procure the goods and services from overseas then e-mail or fax quotation from overseas suppliers is accepted. Opening and Recording of Quotation All quotations are opened only after the deadline has expired and in the presence of the members of the Faculty Purchasing Committee. Members present at the quotation opening are required to sign on the Record of Quotation/Tender Results Form (refer Attachment 3) and all price quotations submitted. Any quotation received after the deadline is documented as late with the date and time and will not be opened. Faculty General Office staff assigned to administer RFQ shall tabulate all quotations received from suppliers and submits it with equipment specification, etc to the staff who initiates the purchase request for evaluation.

10.2

11.0 11.1 11.2

11.3 11.4

12.0

Tender Procedures Refer to Attachment 2.

13.0 13.1

Evaluation and Award The staff who initiates the purchase request shall evaluate the quotations received from suppliers, assess the compliance of the quotations with the specifications, etc and make recommendation in a report (refer Attachment 4 format) to the Faculty Purchasing Committee together with the prescribed format listed below: (i) Laboratory/teaching equipment for conducting undergraduate/postgraduate programmes (refer Attachment A) (ii) Laboratory consumables and special services for conducting undergraduate/postgraduate programmes (refer Attachment B) (iii) Equipment for Research Grant Projects (refer Attachment C) (iv) Laboratory consumables and Special Services for Research Grant Projects (refer Attachment D)

13.2

Faculty Purchasing Committee shall select the supplier that quoted the lowest price for item to be purchased from a minimum of three (3) qualified sources of supply, except for purchase of item which is available from only on supplier and recommend to the relevant purchasing approving authority for approval (refer para.14.0).

13.3

If the supplier that quoted the lowest price for an item is not selected, Faculty Purchasing Committee shall record the reasons for non-selection. Purchase Approving Authorities and Expenditure Authority Limits - RFQ The purchasing approving authorities and expenditure authority limits for RFQ process is outlined below:
Total Value of Purchase No. Description Not Exceeding RM20,000.00 Per Item Above RM20,000.00 Per Item

14.0 14.1

1.

Undergraduate/Postgraduate Programmes Laboratory/ teaching equipment (including ICT equipment and software in laboratory teaching purpose), lab consumables (including ICT consumables in laboratory teaching purpose) and special services

Dean of Faculty/Director of CFS with recommendation from the Faculty Purchasing Committee

UTAR Purchasing Committee with recommendation from the Faculty Purchasing Committee and supported by the Dean of Faculty/Director of CFS

2.

Research Grant Projects Research equipment (including ICT equipment and software in laboratory for research purpose), consumables (including ICT consumables in laboratory for research purpose) and special services Director of IPSR with recommendation from the Faculty Purchasing Committee and supported by the Dean of Faculty UTAR Purchasing Committee with recommendation from the Faculty Purchasing Committee and supported by the Dean of Faculty and Director of IPSR

14.2

Purchase of goods or services with a total value above RM20,000.00 and not exceeding RM1 million per item required the recommendation from the Faculty Purchasing Committee to UTAR Purchasing Committee for approval. Following 6

consideration by Faculty Purchasing Committee, the Faculty/CFS submits the following documents to the Secretariat of UTAR Purchasing Committee for consideration and approval of purchase request: (a) (b) (c) 14.3 All quotations and equipment specifications from suppliers Evaluation report (refer Attachment 4) by staff who initiates the purchase request and recommendation Minutes of Faculty Purchasing Committee

Faculty General Office staff assigned to administer RFQ shall liaise with Division of Finance to apply for exemption on import duty and sales tax when the amount on import duty and sales tax (inclusive of shipping and handling charges) exceeded RM1,000.00. Purchase Approving Authorities - Tender The Tenders Board shall consider and approve the award of tenders for procurement of goods and services from RM1 million to RM10 million based on the recommendation of the UTAR Purchasing Committee. The Council shall consider and approve the award of tenders for procurement of goods and services above RM10 million based on the recommendation from the Tenders Board. Purchase Order Purchase Order shall be issued by the Faculty General Office staff to the supplier for items approved by the purchase approving authorities concerned. Purchase Order is to be signed for and on behalf of the University in the following manner: (a) For Undergraduate/Postgraduate Programmes (i) (ii) Amount not exceeding RM20,000.00 signed by the Dean of Faculty/Director of CFS or person authorized by the Dean in writing to DFN. Amount above RM20,000.00 signed by the Dean of Faculty/ Director of CFS or person authorized by the Dean in writing to the DFN and the Director of DFN.

15.0 15.1

15.2

16.0 16.1 16.2

(b)

For Research Grant Projects (i) (ii) Amount not exceeding RM20,000.00 signed by the Director of IPSR Amount above RM20,000.00 signed by the Director of IPSR and the Director of DFN.

16.3

The distribution of Purchase Order is as follows: (a) 1st copy of the Purchase Order (white colour) is to be mailed to the supplier. (b) 2nd copy of the Purchase Order (yellow colour) is to be submitted to the DFN for payment supported with: (i) Original Invoice approved for payment: by the Dean of Faculty/ Director of CFS or person authorized by the Dean in writing to Director of DFN for undergraduate/ postgraduate programmes; or by the Director of IPSR for research grant projects Original Delivery Order; and Purchases for undergraduate/postgraduate programmes approved by the Dean of Faculty/ Director of CFS for total value of purchase not exceeding RM20,000.00 per item; or (iv) Purchases for research grant projects approved by the Director of IPSR for total value of purchase not exceeding RM20,000.00 per item; or Minutes of: UTAR Purchasing Committee for a total value of purchase above RM20,000.00 and not exceeding RM1 million per item; or Tenders Board for total value of purchase of RM1 million and above to not exceeding RM10 million per item; or

(ii) (iii)

(v)

(c)

Council for total value of purchase exceeding RM10 million per item. 3rd copy of the Purchase Order (green colour) is to be retained by the Faculty General Office that issued it.

17.0

Filing The Faculty, CFS and IPSR shall file at its office, a copy of all approved purchase requests, purchase orders together with quotations and equipment specification obtained from supplier so that reference can be made should an internal audit be carried out.

18.0

Attachment Attachment 1: An Overview of the Procurement Procedures for Laboratory/ Teaching/Research Equipment, Laboratory Consumables and Special Services Attachment 2: Tender Procedures Attachment 3: Record of Quotation/Tender Results Form Attachment 4: Evaluation Report on Purchase Request for Consideration and Approval by UTAR Purchasing Committee Attachment A Purchases for Laboratory/Teaching Equipment Attachment B Purchases for Laboratory Consumables and Special Services Attachment C Purchases for Equipment (Research Grant Projects) Attachment D Purchases for Laboratory Consumables and Special Services (Research Grant Projects) Attachment E Technical Compliance Attachment F Commercial Comparison

19.0

Effective Date 1 August 2010

Attachment 1
Procurement Procedures for Laboratory/Teaching/Research Equipment, Laboratory Consumables and Special Services
Academic staff Laboratory/Teaching Equipment Special Services Laboratory officer Laboratory Consumables Researcher Equipment Consumables Special Services

Initiators Purchase Request

Review of Purchase Request and make recommendation Types of Purchase Request

Departmental Purchasing Committee Meeting

No

Laboratory/Teaching/Research Equipment Software in laboratory for teaching & research purposes

Laboratory Consumables & Special Services

Total Value of Purchase Request

> RM500,000 per item

> RM100,000 to RM500,000

per item

RM100,000 per item

RM10,000 per item

> RM10,000 to RM500,000 per item Budget & Procurement Committee

> RM500,000 per item

Senior Purchase Request Management Approving Committee Authorities Submit Purchase Request RFQ for approval

Budget & Procurement Committee

Faculty Management Committee

Faculty Management Committee

Senior Management Committee

Yes Faculty Management Committee Faculty Office staff administers RFQ and Tender Witnessed by Members of FPC Faculty Office staff Yes Sourcing for Quotation Opening of Quotation Compilation of Quotation Evaluation

No

Recommendation by Initiator Recommendation of Purchase Expenditure Authority Limits Purchase Approving Authorities RM20,000 per item Dean of Faculty/Director of CFS/Director of IPSR

Faculty Purchasing Committee (FPC)

> RM 20,000 to < RM 1 million per item
Recommendation from Dean of Faculty/Director of CFS/Director of IPSR

RM 1 million to RM 10 million per item

Recommendation from Dean of Faculty/Director of CFS/Director of IPSR

> RM 10 million per item

Recommendation from Dean of Faculty/Director of CFS/Director of IPSR

UTAR Purchasing Committee

UTAR Purchasing Committee Tenders Board

UTAR Purchasing Committee Tenders Board Council

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Attachment 2
1.0 1.1 Tender Procedures Tender shall called by faculty/CFS for purchasing laboratory/teaching/research equipment, laboratory consumables and special services in which the total value per item is RM1 million and above. All proposed procurement of goods and services of RM1 million and above are subject to final review and approval by the Senior Management Committee before calling of tenders. Advertisements are placed in the newspapers. Closing date and time of the tender are stated on the advertisement. A standard tender pack comprises of a Tender Form, specifications, Conditions of Contract and other documents, is issued to tenderers for completion and return by specified closing date and time. All tenders are opened on the due date and in the presence of at least two members of the Tenders Opening Sub-Committee. Any tender received after the deadline is documented as late with the date and time and will not be opened. All tenders received are recorded on a Record of Quotation/Tender Results Form (refer Attachment 3). Members present at the tender opening are required to sign on the Record of Tender Results, the Tender Form and Schedule of Prices returned by each tenderer. Faculty General Office staff assigned to administer Tender shall tabulate all tenders received from suppliers and submits it with equipment specification, etc to the staff who initiates the purchase request for evaluation. The staff who initiates the purchase request shall evaluate the tenders received from suppliers, assess the compliance of the tenders with the specification, etc, submit tender evaluation report and make recommendation to the Faculty Purchasing Committee. The Faculty Purchasing Committee shall consider the tender evaluation report, evaluate the tenders received, select appropriate tender and recommend the award of tender to the UTAR Purchasing Committee.

1.2

1.3 1.4

1.5

1.6

1.7

1.8

1.9

11

Attachment 3

RECORD OF QUOTATION/TENDER RESULTS

Laboratory/Teaching Equipment: Equipment (Research Projects): Laboratory Consumables: Special Services: No. 1. 2. 3. 4. 5. 6. 7. Quotations Closed Opened In the presence of Name Date Name of Supplier

_____________________________ _____________________________ _____________________________ _____________________________ Amount RM Remarks

Time and Location

Signature

Designation

12

Attachment 4 Evaluation Report on Purchase Request for Consideration and Approval by UTAR Purchasing Committee
1. 2. 3. Detail Specifications of the Item/Scope of Works: Justification of Purchase: Suppliers Invited to Quote: No. Name of Suppliers Methods of Invitation Date of Invitation

4. 5. 6.

Quotation Closed On (date and time): Quotation Opened On (date and time): Suppliers Quotation and Amount No. Name of Suppliers Amount

7. 8 9 10.

Technical Compliance (refer prescribed format - Attachment F) Commercial Comparison (refer prescribed format - Attachment G) Recommendation: Prepared by:

13

Attachment A
Purchases for Laboratory/Teaching Equipment
(including ICT equipment and software in laboratory for teaching purpose)

Name of Faculty: _______________________________ Date of Meeting: ________________________________

Name of Supplier and Unit Price Item no. Description

Company Name RM

Company Name RM

Company Name RM

Company Name RM

Recommended Supplier

Unit Price RM

Quantity Required

Total RM

Recommended by: _____________________ (Name) Chairman Total value of purchase not exceeding RM20,000 per item ________________________ (Name) Designation Total value of purchase above RM20,000 per item _________________________ (Name) Designation Amount of Appropriation This Request Recommendation supported by Dean of Faculty Previously Approved Total Expenditure Budget Requested RM

Approved by Dean of Faculty:

(Name)

(Name) Approved by UTAR Purchasing Committee

14

Attachment B
Purchases for Laboratory Consumables and Special Services

(laboratory consumables include teaching materials, ICT consumables in laboratory for teaching purpose, chemicals, lab ware, glassware and components) (special services include maintenance and repair services, modification to equipment and furniture, professional services)

Name of Faculty: _______________________________ Date of Meeting: ________________________________

Item no. Name of Supplier and Unit Price

Description

Company Name RM

Company Name RM

Company Name RM

Company Name RM

Recommended Supplier

Unit Price RM

Quantity Required

Total RM

Recommended by: _____________________ (Name) Chairman Total value of purchase not exceeding RM20,000 per item ________________________ (Name) Designation Total value of purchase above RM20,000 per item _________________________ (Name) Designation Amount of Appropriation This Request Recommendation supported by Dean of Faculty Previously Approved Total Expenditure Budget Requested RM

Approved by Dean of Faculty:

(Name)

(Name) Approved by UTAR Purchasing Committee

15

Purchases for Equipment (Research Grant Projects)

(including ICT equipment and software)

Attachment C

Name of Faculty: ___________________________Vote Account No.:____________ Date of Meeting: ___________________________

Item no. Name of Supplier and Unit Price

Description

Company Name RM

Company Name RM

Company Name RM

Company Name RM

Recommended Supplier

Unit Price RM

Quantity Required

Total RM

Recommended by: _____________________ (Name) Chairman ________________________ (Name) Designation _________________________ (Name) Designation Amount of Appropriation This Request Previously Approved Total Expenditure Budget Requested RM

Total value of purchase not exceeding RM20,000 per item Recommendation supported by Dean of Faculty

Total value of purchase above RM20,000 per item

Recommendation supported by Dean of Faculty

(Name) Approved by Director of Institute of Postgraduate Studies and Research

(Name) Recommendation supported by Director of Institute of Postgraduate Studies and Research

(Name)

(Name) Approved by UTAR Purchasing Committee

16

Attachment D
(laboratory consumables include material, ICT consumables, chemicals, lab ware, glassware and components) (special services include maintenance and repair services, modification to equipment and furniture, professional services)

Purchases for Laboratory Consumables and Special Services (Research Grant Projects)

Name of Faculty: ___________________________Vote Account No.:____________ Date of Meeting: ___________________________

Item no. Name of Supplier and Unit Price

Description

Company Name RM

Company Name RM

Company Name RM

Company Name RM

Recommended Supplier

Unit Price RM

Quantity Required

Total RM

Recommended by: _____________________ (Name) Chairman Total value of purchase not exceeding RM20,000 per item Recommendation supported by Dean of Faculty ________________________ (Name) Designation Total value of purchase above RM20,000 per item _________________________ (Name) Designation Amount of Appropriation This Request Previously Approved Total Expenditure Budget Requested RM

Recommendation supported by Dean of Faculty

(Name) Approved by Director of Institute of Postgraduate Studies and Research

(Name) Recommendation supported by Director of Institute of Postgraduate Studies and Research

(Name)

(Name) Approved by UTAR Purchasing Committee

17

Attachment E Technical Compliance

Name of Supplier Specifications in Call for Quotation i ii iii iv v vi Description Description Description Description Description Description Company Name Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Company Name Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Company Name Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Company Name Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance Compliance/ Non-compliance

Additional Features by the Company i ii iii iv

18

Attachment F Commercial Comparison

Name of Supplier Description Company Name RM i Price Company Name RM Company Name RM Company Name RM

Others: Please specify ii iii iv v

Budget: ____________________

19