Tendering and procurement: how does it work and what to keep in mind?
From 1 January 2022, the procurement thresholds for European tenders are increased. For many colleagues, procurement and tendering does not affect them on a daily basis. That is why Faculty controller Rob van Amsterdam catches us up on the ins and outs of tenders.
How does it work, tendering and procurement at the University?
‘Because we work with public money at the University, we have to comply with national and European legislation if we want to spend that money. One of the reasons for that is to give everyone in Europe equal opportunity to work for government institutions.
For European tenders – it is mandatory to issue one for services or products above € 215,000 – we follow a fixed procedure: the order is published on a special website, where contractors and suppliers can submit their tenders. Then it is decided which one is the best based on previously determined criteria. All European tenders that we issue are supervised by the Leiden University Procurement Service (UIL).
But we also made internal agreements. If you want to purchase a product or service that costs more than €30,000, then you are obliged to notify the UIL. They will give you advice about the procurement procedures. For example, it is mandatory to request at least 3 different quotations for orders over €50,000.’
For orders under €30,000, you can decide for yourself who you want to contact and to whom you assign it. What should be kept in mind?
‘The University makes use of framework contracts: standard suppliers for services and products that we purchase often. Do you want to purchase something? First check the list of existing framework contracts, because you are obliged to buy it from those contractors.
That is because to the ‘outside world’, it makes no difference whether the Pieter de la Court building or the Kamerlingh Onnes Building is painted again: it both falls under the umbrella of ‘paintwork for Leiden University’. The same goes for flowers, for example: so many bouquets of flowers are given throughout the University, that at some point we will certainly cross the threshold of €30,000 or even the European threshold of €215,000. Tenders for this type of services and goods are therefore issued by the UIL.
Does the University not have a standard supplier for what you need, and does the cost not exceed €30,000? Then you can contact someone yourself and decide for yourself to whom you assign the order.’
In what case can colleagues contact the office of Planning & Control of the faculty?
‘If you want to purchase something on behalf of the University. We can give you advice about the suppliers, the estimated cost or the procurement procedures. I would rather have colleagues contact us too often than too rarely. Because one mistake can even have repercussions for the entire University.
Because we work with public money, people are quick to scrutinize us. That is the reason why we are glad to help you with all procurements, even under €30,000. If you are in doubt about spending money on behalf of the University, then do not hesitate to pay us a visit. Then we can work together to decide on the best approach and how to guarantee integrity in the assigning of an order.’
From 1 January 2022 the procurement thresholds for European tenders will be higher. That means that for orders exceeding these thresholds, a public call for tenders must be made in the European Union.
The new thresholds are:
- € 215,000 (was € 214,000) excluding VAT for supplies and services;
- € 5,382,000 (was € 5,350,000) excluding VAT for works.
Many colleagues will come into contact with purchasing services and products. Works are mostly the concern of colleagues who work in real estate.
Photo: Suédy Mauricio
Text: Emma Knapper