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Purchasing and Procurement Policy

Policy

  1. The Procurement Manager will establish and maintain policies and procedures to provide efficient and responsible conduct of all procurement and disbursement activities.
  2. The Procurement Department, in conjunction with the Finance Manager will be responsible for enforcing the University procurement and disbursement policy.
  3. The Procurement Department has the authority and responsibility to negotiate all procurement terms and execute all purchases of goods and services.
  4. No employee of the University is empowered to incur any obligation or make any commitment on behalf of the University for the procurement of products, services or equipment unless approved in writing by the University President.
  5. Any employee delegated the authority for the procurement of goods or services must do so in accordance with this policy.
  6. The Procurement Department is responsible for maintaining records of all procurement transactions.This includes maintaining copies of all executed PRF’s in addition to copies of all executed LPO in their respective folders for the relevant fiscal year in which the transaction has occurred.
  7. The Purchasing Department and the Finance Manager are responsible for responding to all external audit findings or other inquiries concerning procurement issues.

 

1. Compliance 

  1. The Procurement Department, in conjunction with the Finance Department, are responsible for enforcing the University procurement policy. 
  2. Authorization to suppliers for the purchase of products and services must be made through an approved University PO and PRF. 
  3. All purchases initiated through a PRF from any employee must have obtained all of the appropriate approvals prior to any commitment from the University.  All exceptions must be clearly justified and explicitly approved from the President’s Office. 
  4. Certain purchases may be made without a PO (e.g. IOU and petty cash) as long as the purchase is under AED  1500.
  5. All approved suppliers are to be listed and maintained in the supplier database. The Procurement manager  and the Accountant have been delegated the responsibility of managing the supplier database. 
  6. Access to the PO module shall be restricted to authorized users only in the Finance and Procurement Department. 
  7. The supplier database shall be purged of duplicate and non-current supplier records at least once per year. 
  8. Adding or updating a new vendor is the full responsibility of the Procurement department .
  9. Final authority for all PRFS  has been delegated to the University President without exception. 
  10. Items priced up to AED 5,000 can be purchased without quotes. For items exceeding AED 5,000, the Procurement Department will obtain a minimum of three quotations from available suppliers. Purchases involving significant contract values must either go through a tender process or include five quotations.(Please see section 2 on competitive bidding.)  
  11. There must be no verbal or hand written instructions given to suppliers in lieu of the PO. 
  12. The Procurement Department will regularly notify suppliers that the University does not consider verbal purchase authorizations to be a purchasing commitment. 
  13. Minimum order quantities shall be used when cost-effective. 
  14. Any supplier contract or agreement requiring signature must be reviewed and approved by the Finance Manager prior to submission to the University President for final approval and signature. 
  15. The Procurement Department must send a copy of each signed lease agreement and contractual document to the Finance Department with no exception. 
  16. The University does not make personal purchases on behalf of employees. 
  17. A contractor who enters into contracts with the University must meet the following requirements:  
  1. Must be registered in one of the Dubai Chambers and holds a license from one of the governmental departments in the country.  
  2. Must not be an employee at the University,  a member of the Tenders or Negotiations Committees, or have, either directly or indirectly, any connection with contracting with the University.  
  3. Must not be banned from dealing with the University unless the ban is lifted by the competent authority.  
  4. Must fulfill the financial, technical and professional requirements provided for in the special conditions, if the University insisted upon such conditions. 
  5. Exceptions to point Q1 applies for contracts which are signed by parties outside the UAE. However, the contractor must attach or present the following data:  
  • Name, address, P.O. Box number, telephone numbers, and name of person(s) in charge of contracting.  
  • The legal entity, commercial register number, and a valid registration at the local chamber of commerce and industry.  
  • Copy of the commercial license to practice business from one of the government departments in that country. 
  • Name of the bank dealt with.  
  • The capital of the company.  
  • Any other additional data required by the University. 

 

2. Competitive Bidding 

  1. The Procurement Department, in conjunction with the Finance Department are responsible for establishing a fair and efficient competitive bidding process and ensuring that the procedures are followed. 
  2. All purchases of items or in aggregate values of AED 5,000 and over must go through the process of soliciting competitive bids.  Competitive bids are not required for contractual suppliers or when further justification has been provided, documented and approved. 
  3. As a policy, a minimum of three bids from competent registered suppliers will be required.  As an exception, circumstances may exist when less than three bids can be considered acceptable and appropriate.  In this event, the Procurement Department must submit a written justification with the circumstances explained. 
  4. The Procurement Department is allowed (and recommended) to require competitive bids for purchases under the AED 5,000 threshold if, in its judgment, there may be additional cost savings. 
  5. The Purchasing Department and the Finance Department shall be permanently represented in all tender committees, negotiations and competition judging committees.

 

3. Receiving and Inspecting Goods 

  1. All supplier deliveries will be rejected at the receiving point unless there is an authorizing PO with a sufficient quantity to cover the unit quantity of delivery. 
  2. Departments issuing the purchase requisition are responsible for verifying that the purchased goods/services are received in proper condition and are in accordance with the terms of the PO. 
  3. Purchased goods that have been identified as damaged should be rejected at the time of receipt. 
  4. When damaged goods are discovered after the goods have been put into service the concerned department is responsible to immediately notify the Procurement Officer who will in turn immediately notify the supplier.  Further use of damaged goods should be suspended until the issues regarding the goods have been resolved with the supplier. 
  5. Whenever legal questions are raised regarding the receipt, inspection, rejection or use of purchased goods, the University’s actions will be determined with reference to the relevant contract(s), supplier consultation and applicable law.  The Procurement Department may consult with the University’s legal counsel as appropriate. 
  6. The Procurement Department must record, in the purchasing module, the receipt of all items which PO’s have been issued.

 

4. Disbursements: Payment of PO Invoices 

  1. The Finance Department is responsible for ensuring that disbursements of funds for PO invoices are appropriate and properly authorized. 
  2. The Finance Manager is responsible for maintaining an efficient and effective process which ensures the complete, accurate and timely payment of all eligible PO invoices. 
  3. Checks or other forms of payment will be prepared only for the payment of original supplier invoices with direct reference to an approved PO. 
  4. Invoices received by the Procurement Department must be forwarded immediately to the Finance Department to ensure timely payment to the supplier. 
  5. No payments to suppliers will be issued in the case of missing or non-matching required documents. 

 

5. Disbursements: Payment of Non-Purchase Order Invoices 

  1. The Finance Department is responsible for ensuring that disbursements of funds for non PO invoices are appropriate and properly authorized. 
  2. The Finance Manager is responsible for maintaining an efficient and effective process which ensures the complete, accurate and timely payment of all eligible PO invoices. 

6. Disposal of goods and equipments 

To ensure responsible management of outdated or surplus goods and equipment, the following procedures will be followed:

  1. Charitable Donations: Outdated equipment, such as PCs, printers, and other electronic devices, will be assessed for donation to charitable organizations, including schools and similar institutions. This initiative not only promotes sustainability but also supports communities in need.
  2. Resale of Valuable Goods: Goods that retain value, such as batteries and other electronic components, will be resold to authorized vendors. This process helps recover costs and minimizes waste by ensuring that usable items are repurposed.

    The process for reselling items that retain value is as follows:
  • Identification: The procurement team will identify goods that are suitable for resale.
  • Advertisement: These items will be advertised to attract potential buyers, ensuring maximum visibility.
  • Collecting Quotes: A minimum of three selling quotes will be collected from interested parties to ensure competitive pricing.
  • Selecting the Highest Bid: The item will be sold to the highest bidder, ensuring the best possible return.
  • Payment Processing: All payments will be directed to the UD finance accounts, ensuring proper financial management and record-keeping.