Purchasing Procedures Manual
Emirates Institution
Version 1.0
October 4, 2023
- Introduction
Objectives of the Procedures Manual
The purpose of this Purchasing Procedures Manual is to provide guidelines and procedures for all procurement activities conducted by the Emirates Institution. This manual aims to:
- Establish a standardized and efficient procurement process
- Ensure compliance with the institution’s financial regulations and policies
- Minimize procurement risks and optimize costs
- Promote transparency and accountability in procurement activities
Keywords
Procurement, purchasing, sourcing, supplier, contract, negotiation, category management
Definitions List
- Procurement: The process of acquiring goods and services from external sources to meet the needs of the organization.
- Purchasing: The act of buying goods and services from external suppliers.
- Sourcing: The process of identifying, evaluating, and selecting suppliers for goods and services.
- Supplier: An organization that provides goods and services to the procuring organization.
- Contract: A legally binding agreement between the procuring organization and the supplier.
- Negotiation: The process of reaching an agreement on the terms and conditions of a purchase.
- Category management: The strategic classification and management of goods and services based on their characteristics and spending patterns.
- Introduction to the Purchasing Units
Roles and Responsibilities
The procurement function within the Emirates Institution is divided into two main units:
- Purchasing Department: Responsible for the day-to-day execution of procurement activities, including requisition processing, supplier sourcing, negotiation, and contract management.
- Purchasing Committee: An advisory body that provides oversight and guidance on procurement policies, procedures, and strategies.
Purchasing Committee
The Purchasing Committee is responsible for:
- Reviewing and approving procurement policies and procedures
- Monitoring procurement performance against objectives
- Approving high-value purchases and contracts
- Resolving procurement-related disputes
- Procurement Channels
The Emirates Institution utilizes multiple procurement channels to acquire goods and services, including:
- Electronic Procurement System (EPS): An online platform for creating requisitions, obtaining approvals, and managing supplier relationships.
- Traditional Procurement: Manual processes for requisitioning, sourcing, and purchasing goods and services.
- Purchasing Process
The purchasing process consists of the following steps:
Purchasing Planning
- Identify and prioritize procurement needs
- Develop an annual purchasing plan
Category Management
- Classify goods and services into categories
- Develop category management strategies
Supplier Relationship Management
- Identify, evaluate, and select suppliers
- Develop and maintain supplier relationships
Source Identification
- Utilize various sourcing methods, such as online databases, trade shows, and industry contacts
Negotiation
- Negotiate favorable terms and conditions with suppliers
Contract Cycle Management
- Prepare, review, and approve contracts
- Monitor contract performance
From Order to Payment
- Issue purchase orders
- Receive goods and services
- Process invoices
Low-value Purchases
- Low-value purchases may be made without prior approval, provided that they adhere to established guidelines.
Imprest Card Purchases
- Imprest cards may be used for low-value, routine purchases, subject to specific authorization and usage controls.
Emergency Purchases
- Emergency purchases may be made without prior approval in situations where there is an immediate threat to life, property, or the environment.
Sole Source Purchases
- Sole source purchases may be made when there is only one supplier capable of providing the required goods or services.
Reports and Analysis
- Generate procurement reports to analyze spending patterns, supplier performance, and contract effectiveness.
- Types of Contracts
The Emirates Institution utilizes various types of contracts, including:
- Fixed-price contracts: The supplier is paid a fixed price for the goods or services, regardless of the actual costs incurred.
- Cost-plus contracts: The supplier is reimbursed for all allowable costs, plus a fixed fee or percentage of the costs.
- Time and materials contracts: The supplier is paid for the time and materials expended on the project.
- Performance-based contracts: The supplier’s payment is based on the achievement of specific performance metrics.
- Purchasing Forms and Templates
- Annual Purchasing Plan Template
- Supplier Qualification Questionnaire Template
- Supplier Classification Template
- Supplier Evaluation Template
- Emergency Purchases Justification Template
- Sole Source/Exclusive Purchases Justification Template
Conclusion
This Purchasing Procedures Manual provides a comprehensive overview of the procurement process and guidelines for all purchasing activities within the Emirates Institution. By adhering to these procedures, the institution can ensure that procurement activities are conducted in a transparent, efficient,
