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Procurement and Contracts (GLP7)

Governance Level Principle - No. GLP7

Relevant UTAS Ordinance and/or
Rule Reference No.
Ordinance 1 (Role of Council)
Relevant State/Federal Govt.

University of Tasmania Act 1992, Financial Management & Audit Act 1990,

Trade Practices Act 1974 (Competitive Neutrality)

Commencement Date 31 March 2017
Review Date 31 March 2021

1. Statement of Context

As the State's only University, and as a large consumer of goods and services within the community, the University of Tasmania has a responsibility to ensure that all who are able to do business with the University are given the opportunity to do so. The University's methods in relation to procurement and contracts should be seen to be beyond reproach, maintaining a reputation for fair dealing in its arrangements with suppliers and ensuring best value for money as the major underlying factor in transactions.

2. Objectives

The objectives of this principle are to:

  • ensure the University maximises value for money while minimising the risks associated with the supply of goods and services and complying with the regulatory environment in which the University operates; and
  • describe roles, responsibilities and accountabilities.

3. Priorities

The University will:

  • ensure that all expenditure is:
    • for University purposes;
    • efficient and effective;
    • consistent with approved plans (including budgets), operating policies and procedures; and
    • compliant with all relevant legislation
  • undertake procurement and contract activity by:
    • testing the market using, where appropriate, requests for tender when undertaking procurement and disposal activities where practical, to ensure effective competition and to gain the best possible value;
    • seeking to obtain value for money in purchasing goods and services, with the concept of value for money not restricted to price alone. Factors such as fitness for purpose, quality, service and support, whole-of-life costs and transaction costs associated with acquisition, use, holding, maintenance and disposal should be taken into account.
  • adhere to principles of ethical behaviour, conducting its purchasing and contracting activities with probity and accountability:
    • unless authorised by the Chief Operating Officer, employees (or their related businesses) may not provide goods or services to the University
    • all business should be conducted in the best interests of the University, avoiding any situation which may impinge, or might give the appearance of impinging, on impartiality
    • transactions should be undertaken fairly, without favour or prejudice
    • appropriate commercial confidentiality should be maintained in all dealings
    • no gifts, gratuities or any other benefits which may influence, or might give the appearance of influencing, equity or impartiality can be sought or accepted;
  • while ensuring that all transactions are evidenced in writing, consider proposed contractual arrangements in light of commercial matters such as:
    • Ensuring all contracts do not expose the University to any unmanageable risks;
    • implications of the contract on the wider University
    • the period and total dollar value of the contract
    • any specific legal implications of the contract
    • insurance requirements
    • any exclusivity arrangements;
  • ensure the highest standards for safety and performance and environmental practices from contractors on all campuses;
  • ensure that the Centre Led Procurement function is involved in all University tender panels..

In addition to these priorities, there are a number of other priorities that are common to most individual Principles. These additional priorities are specified in the University Governance Principle and are not repeated in detail here.

They cover:

  1. supporting policies, plans and procedures;
  2. resourcing and implementation;
  3. training and awareness; and
  4. monitoring, review and ongoing development.

4. Implementation

The Vice-Chancellor has responsibility for the implementation of the Procurement and Contracts Principle and the development and implementation of supporting plans, operational policies and procedures.

All members of the University community are responsible for undertaking their University activities in ways that support this principle and related plans, operational policies and procedures.

Approved by Council on 8 April 2005
Reviewed Council 31 March 2017 (Resolution no. 17/2/755)