Contractor Agreements

Requirements for the processing of Consultancy / Contractor Agreements

All consultancy / contractor agreements which are $50,000 and over require a purchase requisition to be first raised in SAP to facilitate the confirmation of the required sourcing process undertaken (or statement of sole supply).  Once approved, the requisition can be turned into a valid purchase order that will workflow according to normal release procedures based on financial authority limits.

The Director, Strategic Procurement Group, will have release authority of  consultancy-based, purchase requisitions over $50K.

In order to secure release of a requisition, the pro-forma below must be downloaded , fully completed by the requestorand forwarded to Strategic Procurement Group.

Download the Quotation / Tender Summary Form - Contractor Services over $50K

Procedures to follow in processing Consultancy / Contractor Agreements

1. The University rules normally require at least three quotations to be obtained for the work to be performed.
2. Download the quotation summary form using the link above.
3. Review all quotations recieved and select the most appropriate provider. 
4. Complete all sections on page 1 of the quotation summary form (page 2 is for any subsequent variations on a contract).
5. Raise a requisition in SAP covering the proposed agreement with the successful bidder. Enter the requisition number on the quotation summary form.
6. Obtain the required approval signatures on the Quotation / Tender Summary Form.
7. Fax the quotation summary form to Strategic Procurement Group (fax to x56353)
8. Once the requisition has been approved and released by the Director, Strategic Procurement Group then the requisition can be converted to a purchase order.
9. Release of the purchase order is to be completed by an appropriate officer with the correct level of financial delegation. (NB. This will normally workflow to the appropriate officer.  The minimum delegation required is obviously $50,000).
10. Ensure any contractual agreement that will accompany the Purchase Order has been properly vetted and executed by the University Solicitor's Office.

What tests will be applied before release of a requisition

The Director, Strategic Procurement Group  will vet all requisitions and supporting quotation summary forms to ensure the appropriate procedures have been followed. If satisfied, the requisition will be released.  

The ultimate test will be that the appropriate market engagement process has been carried out in a  competitive manner, that all negotiations have been carried out with a degree of probity and the best interests and reputation of the University has been protected at all times.

If there is any doubt, the Director, Strategic Procurement Group will contact the nominated Procurement Project Leader or Requestor listed on the form and seek further clarification or supporting documentation.

Any enquries regarding the approval of SAP documentation can be directed to:

Peter Naujoks
Director, Strategic Procurement Group 
Tel:  x56074
Email

Details required on the quotation summary form

• SAP Requisition Number (once requisition is raised in SAP);
• Details on the Project Leader or Requestor;
• Suppliers / Contractors from whom competitive proposals were sought;
• Successful Supplier / Contractor selected to carry out the work;
• Reason for selection of Contractor;
• If the chosen Contractor did not submit the lowest price, provide reason for rejecting the lower priced bid(s);
• Authorisation / sign off by the relevant University Personnel.

The electronic version of the form has attached comments to aid completion of each section.

Processing of variations resulting in an increase of costs

1. Variations in the project that result in an increase in price by 10% or more or $5,000 must be registered as a variation and reasons provided.
2. Variations above the 10% / $5K limit as detailed above must be provided on the back of the summary form and authorised by the original authorisers.  The form must be re-submitted to Strategic Procurement Group.
3. Details on variations to Agreements can be forwarded to Strategic Procurement Group on the Variations form.

Please note:

Variations of less than $5,000 but more than $100 do not require supporting documentation but all variations above $100 will require the original requisition to be modified in SAP, by adding a new line item*, in order to process the invoice.  The modification will result in the amended requisition workflowing to the Director, Strategic Procurement Group for re-release.

* When modifying the price in a requisition, you cannot modify the original line item.  You must add a new line item to the requisition to cover the price increase.