Quotation Exercise

1. Quotation Exercise Establishing your requirement ↓ ← ← New requirement Consolidate supplier spend Existing Contracts ↓ → → Compile Estimate Obtain Approval In-house/external What is the estimated whole life spend of your procurement? £4000-£49,999 Minimum of three written competitive quotes from suppliers Under £4000 Two written comparisons (letters/email/fax/catalogue) – keep with copy of purchase order for minimum of 2 years £50,000 over Formal Tender as per EU Regulations

2. Glossary of terms Consolidate Supplier Spend Are you going to be placing a number of orders with this supplier over a period of time? If so, you should be able to negotiate better terms than for one-off orders. Also are other faculties ordering from the same supplier? The same principle applies Existing contracts If there is already a contract for the supply of goods or services that you require, this can be the basis for the quotation enquiry. New requirement Check that what you are ordering is a new requirement and not already included in an existing contract or supplier arrangement. Genuine new requirements must be procured by obtaining quotations. Compile Estimate From previous experience of contracts or from preliminary research, calculate an approximate cost of the goods or services you require. That way you will know which procurement route to take, the budget you require and an estimate of a reasonable price. Obtain Approval A requisition is put on Agresso then approved by the budget holder and the purchase order is sent to the supplier by the Purchasing Department. In-House vs External Do we need to buy the goods or services or are they available in-house? For specific purchases ie IT, stationery, furniture etc there are lead buyers. What is the estimated whole life spend of your procurement? The question asks you to consider what the total cost implication of your purchase will be. For example if you are considering a 3 year contract and the cost is £2000 per year, then the contract value will be £6000. If there is no set number of years, then the annual sum must be multiplied by 4 to give the value for this assessment. For example, if the printer costs £600 and will be used for 3 years, and the cartridges cost £500 a year then the whole life cost of your order is £2,100 (£600 plus 3 x £500).

3. Quotation Exercise Consider : • any risks - eg. relevant insurance cover/health & safety implications • terms and conditions, eg. warranties, payment terms • consider specifications • environmental issues/risks • consider any UK/EU Legislation which may be relevant • whether you need to obtain references for a supplier • if a credit check needs to be done • if the supplier is a University approved supplier • if the lead-time is acceptable • if the quality of the item or service being purchased is acceptable • does the supplier’s quote give ‘value for money’ • the supplier’s payment terms • the history of service received from supplier ie. quality and delivery