Procurement Policy for Langub Alumni Association

1. Introduction

This Procurement Policy outlines the guidelines and procedures to be followed by the Langub Alumni Association in all procurement activities. The policy ensures transparency, fairness, efficiency, and accountability in the procurement process while supporting the Organization's mission and goals.

2. Objectives

The objective of this policy is to establish a framework that governs the procurement of goods and services for the Organization. The policy aims to:

a. Obtain goods and services of the required quality and quantity at the best possible value for money.
b. Promote competition, fairness, and transparency in the procurement process.
c. Ensure compliance with applicable laws, regulations, and funding source requirements.
d. Safeguard the Organization's resources and assets.
e. Foster responsible and sustainable procurement practices.
f. Promote the use of diverse suppliers and support local businesses where possible.

3. Procurement Principles

The Organization's procurement activities will adhere to the following principles:

a. Transparency: All procurement processes shall be conducted in a transparent manner, ensuring open competition and equal treatment of all potential suppliers.
b. Accountability: Procurement decisions shall be accountable, documented, and subject to review and audit.
c. Fairness: The Organization will provide equal opportunities to all qualified suppliers and evaluate bids based on fair and objective criteria.
d. Value for Money: The Organization will seek to obtain the best possible value for money while considering quality, sustainability, and long-term cost implications.
e. Compliance: All procurement activities shall comply with applicable laws, regulations, and funding source requirements.
f. Ethical Standards: The Organization expects suppliers to adhere to high ethical standards, including respect for human rights and environmental sustainability.

4. Roles and Responsibilities

a. Procurement Committee: A procurement committee consisting of authorized individuals will oversee and review procurement activities, ensuring compliance with this policy and relevant procedures.
b. Procurement Officer: A designated procurement officer will be responsible for managing the procurement process, including vendor selection, contract negotiation, and monitoring supplier performance.
c. Budget Holder: The budget holder will provide clear specifications and budgetary constraints for procurement requirements.

d. Procurement Head: Approves Purchase Orders, ensuring alignment with the Organization's objectives and priorities. 

5. Procurement Process

a. Planning: The procurement process will start with clear identification and planning of the goods or services required, including specifications, quantity, quality standards, and estimated budget.
b. Supplier Selection: The Organization will seek competitive bids from a wide range of qualified suppliers whenever possible, ensuring fairness, transparency, and impartial evaluation of proposals.
c. Bid Evaluation: Bids will be evaluated based on predefined criteria, including price, quality, delivery terms, sustainability, and supplier's track record. In general, the lowest cost is the preferred winning bid, however, some situations may not apply based on quality preference and time frame. A justification or a business case of why the lowest bid was not selected is required.
d. Contracting: Contracts will be awarded to the successful supplier(s) based on the evaluation results and negotiation of favorable terms and conditions.
e. Supplier Performance Monitoring: The procurement officer will monitor supplier performance to ensure adherence to contractual obligations and quality standards.
f. Record-Keeping: All procurement transactions, documentation, and communications will be maintained and accessible for audit purposes.

g. Exceptions:

   Emergency procurements: Procurements that are necessary to address an emergency situation may be made without following the full procurement process.
   Small purchases: Procurements that are below P10,000 may be made without following the full procurement process.

The procurement process flow adheres to the following standard practices:

1. The procurement process begins with a thorough definition of the scope of works required for the project or acquisition.

2. Following the scope definition, the RFQ (Request for Quotation) is prepared and sent to qualified vendors or contractors. The RFQ contains detailed specifications, terms, and conditions for the procurement. 

3. Upon receiving the quotations, the Procurement Officer diligently reviews and evaluates the bids based on specified criteria to identify the most suitable vendor or contractor.

4. Once the preferred vendor or contractor is selected, the Procurement Officer prepares the Purchase Requisition (PR) outlining the chosen supplier and the associated procurement details.

5. The designated budget holder verifies the PR to ensure that sufficient funds are available to cover the procurement cost. This step is crucial to maintain financial compliance.

6.  After the budgetary review is completed, the Purchase Order (PO) is released at the appropriate budget level, formalizing the procurement arrangement with the chosen vendor or contractor.

7. The final step in the procurement process involves obtaining approval from the Procurement Head. This ensures alignment with organizational procurement policies and guidelines. Approved PO is required to pay the vendor/ contractor invoice. 

6. Sustainable Procurement

The Organization recognizes the importance of sustainable procurement practices and will strive to:

a. Prioritize environmentally friendly and socially responsible goods and services.
b. Minimize waste, promote recycling, and consider life-cycle costs in procurement decisions.
c. Encourage suppliers to adopt sustainable practices and reduce their environmental impact.

7. Reporting and Review

The Executive Committee will review the effectiveness of this policy periodically, ensuring compliance and identifying areas for improvement. Reports on procurement activities, including significant contracts and their outcomes, will be provided to relevant stakeholders as required.

8. Policy Compliance

Non-compliance with this policy may result in disciplinary action, including termination of contracts or employment. All officers, volunteers, and suppliers are expected to comply with this policy and related procedures.

This Procurement Policy is effective upon approval and supersedes any previous policies or guidelines related to procurement. Any amendments to this policy require approval by the Steering Committee.

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