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Privacy Policy
Overview
This Manual details out the policies and procedures for procurement of goods and services for FIRME LUXE LIMITED. The scope of the Procurement defined by the various sub processes covered as part of this Manual includes:
1. General Policies
2. Procurement Planning
3. Vendor Enlistment (Creation and maintenance of Approved Vendor List)
4. Purchase Requisitioning/ Indent
5. Cash Purchase/RFQ/RFI/RFP/ITB
6. Comparative Studies/ Technical Evaluation Approval Limits of Authority
7. Purchase Order/Contract /Agreement
8. Receipt of goods and services II. Detailed policies and procedures
1. General Policies
►Procurement of goods and services should be made with an objective to achieve maximum value for money for FIRME LUXE LIMITED.
► Procurement of goods and services shall be done through Central Procurement (Head Office). Without approval of Central Procurement no direct Procurement/ Purchase Order Issuance or Purchase Commitment shall be done. Any standalone procurement shall be placed to Management for an approval of exception before placing for formalizing through Procurement.
► Conflict of interest: All members of procurement team and the procurement committee constituted for vendor selection are required to be independent of vendors participating in the bidding process. A “No conflict of interest” (Annex 1) declaration shall be signed by all these persons on an annual basis. A conflict of situation arises when the private interest of an employee compete or conflict with the interest of the organization. All employees are expected to avoid using their official position or any information made available to them in the course of their duties to benefit themselves, their relations or any other persons with whom they have personal or social ties. They should avoid putting themselves in a position that may lead to an actual or perceived conflict of interest with the organization. If at any time during the year, a conflict of interest arises for any such person with respect to vendor under evaluation, it shall be the responsibility of concerned person to inform Management about the same and exclude himself from all decisions with respect to procurement transactions concerning such vendor. In such a case, a suitable replacement shall be identified by the Management.
► Purchase should not be split to multiple value slab or orders in a manner to avoid the defined financial limits/ Limits of Approval Authority.
► Goods and services to be purchased should not be bundled together in order to perform the comparative analysis for vendor selection. It has to be Item to item analyzed. Cost Breakdown and Bill of Quantity (BOQ) to prepare where applicable for the evaluation.
► Procurement of goods and services shall be made in compliance with the below mentioned policies and procedures unless specifically mentioned in any agreement; which result in the objective to achieve maximum value for money.
2. Procurement planning
► At the beginning of each calendar year, Procurement Personnel shall prepare a Procurement Plan based on the goods and services to be purchased as per the approved budgets. This plan should comprise the procurement requirement of the Head Office, all Factory/ Manufacturing Plants
► For Raw Packaging & Auxiliaries any direct Manufacturing Materials Procurement Plant to be made in light to Marketing Forecast followed by Production Plan and Material Requirement Planning in accordance to Bill of Materials (BOM)
3. Vendor Enlistment
► Approved Vendor List (AVL) is the list of vendors who have been approved for procurement of different categories of goods and services. Vendors appearing in the AVL are required to be approached for submitting their quotations for purchase of goods and services against RFP/RFQ/RFI/ITB.
► At the end of each two calendar years, Procurement Personnel initiates the process of revising the AVL. An advertisement to be placed in, at least two widely circulated newspapers/website requesting the interested vendors to submit their applications for enlistment in the AVL.
► Advertisement shall specify at least the following information: · Different category of goods and services for which vendor enlistment is being carried out · Process of application · Last date of collecting application forms from AKIJ GROUP office Contents of the advertisements shall be approved by the Head of Procurement.
► The following documents are required to be obtained from the interested vendors along with their completed application forms as provided by AKIJ GROUP (Annex 2) · Brief profile of the vendor (including details of goods and services provided by the vendor, size of organization, number of personnel, number of offices etc.) · Application form for Vendor Enlistment (provided by AKIJ GROUP) properly completed duly stamped & signed by the authority. · Trade license · VAT Registration Certificates · TIN Certificate · Bank Solvency Certificate · Sole Agency ship/ Authorized Dealership, Distributorship/ Partnership with Principle Like (Gold/Platinum/ Premium etc.) Certification to incorporate where applicable.
► A Committee will evaluate the Enlistment request received Committee consists of Procurement, Audit, Finance and Administration personnel nominated by Head of Department (HOD): Evaluation parameters. · Forms duly filled sealed & signed. · Number of years of experience · Experience of working with similar organizations (in terms of size, sector etc.) · Annual turnover · Number of employees · Availability of VAT & TIN registration certificates · Presence of Bank Solvency The Final Selected vendor list as proposed by the Vendor enlistment committee will be presented before Management for approval.
► At the Time of Vendor Enlistment It should be carefully observed that no black listed vendors have participated, or if participated their application rejected by the committee.
► Approved Vendors List will be prepared into different category of goods and services.
► Based on the above evaluation, the revised AVL shall be prepared and approved by the Management.
► A confirmation letter/email will be sent to all selected vendors on behalf of Vendor Enlistment committee.
► Awarded Vendors from the Tender who are not in the vendor list but participated and awarded getting notification from the tender Advertisement will come automatically in the approved vendor List after successful Delivery of Materials/Services.
► If any Vendor to be blacklisted there should be a file note prepared against the allegation which will be evaluated and approved by Management and will be announced Blacklisted with circulation to all concern department.
► Every Year there will be a Blacklisted vendor list will be updated by Procurement even there is no changes. This list will be circulated approved by Head of Procurement.
4. Purchase requisitioning /Indent
► Stationary & Other Administrative Consumables: Purchase Requisition/ Indent should be raised by the Store to Procurement (User should place requisition to Store) Store shall raise the indent once in a month in bulk in a single Indent.
► IT Hardware, Software and Accessories: Purchase Requisition/ Indent should be raised by the Store to Procurement with a prior check and verification by IT (User should place requisition to Store)
► Maintenance Service: Purchase Requisition/ Indent should be raised by the Maintenance Department to Procurement through Store against regular/ Scheduled Maintenance plan. ► Brand Merchandising Items: Purchase Requisition/ Indent should be raised by the Stakeholder to Procurement through Store. For such Items Procurement shall be notified in the inception stage of sample development.
► Civil Works Materials: Purchase Requisition/ Indent should be raised by the Civil Department to procurement through Store with Estimate and approval of Head of Civil Department.
► Power Cable: Purchase Requisition/ Indent should be raised by Civil Department to procurement through Store with detail layout (drawing) justifying requirement.
► Asset Items: Purchase requirement shall be reviewed and recommended by factory assessment committee and then Purchase Requisition/ Indent should be raised to Procurement through store with Concern Approval of Management.
► Raw Materials: Purchase Requisition/ Indent should be raised to Procurement through Store in Accordance of Material Requirement Planning (MRP) Once in a month.
► User Department will create a Purchase Requisition/ Indent specifying the following details: · Purchase Requisition number and date of requisition/ Indent · Detailed item description · Detail Specification where necessary · Quantity required and expected date of requirement · Estimated cost of purchase · Cost Center & GL Account · Approval of Concern Authority.
► All Purchase Requisitions/ Indents are required to be approved by the Head of Department/ Authorized Personnel, raised against Management Approved Budget.
► For Conventional Items the procurement lead-time should be 15 days and for any new sourcing and development Items the procurement Lead-time to be consider 30 days.
5. Process for RFQ, RFI, RFP, ITB and Procurement process
► RFQ/RFP/ITB method followed for procurement of goods and services shall depend upon the value of goods and services purchased. Different methods of procurement to be followed are as follows exception applies for Intercompany
Orders: Value of procurement Tendering method BDT 1 – BDT 300,000 Offer can be collected through email/Hard copy against RFQ communicated through emails and hard copy as per given format Annex 3 (A) BDT 300,001 – BDT 10,00,000 RFQ/ RFP (sealed quotations from at least three vendors where applicable) Annex 3 (B) A Cross Functional Team may be formed from Three Departments including Procurement BDT 10.00,001 – and above RFP Annex 3 (C) (sealed quotations in two separate Packages Package 1_Annex (C_I) Commercial_ Offer & Package 2_Annex (C_II) Technical Offer along with Package 2_Annex (C_III) Question Format where applicable) A Cross Functional Team to be formed at least from Three Departments Audit, Requestor Department Procurement, and any suitable Technical Personnel.
Informal Procurement (Cash Purchase): Purchase Requisition: Procurement receives Purchase Requisition/ Indent from concern stake holders/ Purchase Requestor value up to BDT 10,000 Advance Request: For Cash Purchase Procurement will put advance request to Finance Committee for Cash Purchase: A Purchasing Committee Store personnel, Internal Stake holder/Purchase Requestor and Procurement Personnel will be involved in physical cash purchase
Physically Purchase done: 3 Spot Quotation will be taken and the purchase will be done with the lowest offer. An effort of price negotiation should be there. Cash Purchase is only applicable for Irregular Items and Vendors exceptional procurement, Onetime purchase. Informal Procurement (Purchase through RFQ): Purchase Requisition: Procurement receives Purchase Requisition/ Indent from concern stake holders/ Purchase Requestor. RFQ Float: Procurement will float RFQ to the Enlisted Vendors through Emails/Hard copy. With a last date & time of submission as per given format Annex 3 (A) & Annex 3 (B)
Offer Receive: For purchase amount from BDT 1 – BDT 300,000 offers can be received through email as well as PDF copy. For quotations amounting 300,001 – BDT 10, 00,000 Sealed Quotation should be received in the Tender Box Negotiation: Negotiation will be done with the lowest three bidders, in terms of Price, Delivery Terms, Lead-time and if required to other parameters. Comparative Analysis: Comparative Studies should be done for all Purchase as per the given Format. Signed by Procurement Personnel (Initiator), Other Committee Members and Head of Procurement. Comparative Studies should be approved shall be approved by the authority as per Approval Limits of Authority as charted bellow Annex 4. Purchase Order: Purchase order will be raised in favor of the awarded vendor as approved in the Comparative Statement.
Delivery: Delivery will be in Head office, designated Factory store or in Depots as per given timeline.
Formal Procurement (Purchase through RFP/ITB):
Purchase Requisition: Procurement receives Purchase Requisition from concern stake holders/ Purchase Requestor. Identify Potential Supplier. Sourcing Supplier Email RFQ/RFP/ITB: Float RFQ/RFP/ITB to the potential Vendors. Expression of Interest EOI is applicable if Prequalification is required this is applicable and Vendors Briefing session may be arranged where necessary for specific technical services/ Works / Materials
Prequalification in a Committee: After receiving EOI a Prequalification Committee will be formed comprising of Individuals from Purchase Requestor, Procurement, Audit and Applicable Personnel relating to the projects.
Sealed Offer Opened: If RFP floated than separately Technical & Commercial Offer will be opened through the Same Committee in a Sequence of First Evaluation of Technical Offer while the Commercial Offer will remain sealed until the evaluation and scoring of the technical Offer completed. The Commercial offer will be evaluated in the second phase. Date, Time, and Venue and Attendance of the committee will be recorded in an attendance sheet.
Offer Evaluating (Scoring): Commercial/ Financial offer will be evaluated in the format of Comparative Analysis. Annex 4 Financial Scoring = Lowest Price/Base PriceX100 For technical evaluation a separate evaluation format will be maintained. Annex 5 Base Marks/Highest MarksX100
Best Scored Vendor Awarded: The best scored vendor will be awarded the scoring will be the consolidation of Technical & Commercial evaluation. In accumulation of Technical adding to Financial Score.
Contract Prepared: If required agreement should be prepared against awarding vendor with necessary terms & conditions. On the basis of scoring sheet and against the awarded vendor in the score sheet.
PO Issued: Purchase Order will be issued against Best Scored Vendor. Contract or Agreement may be done as per nature of the delivery of the Goods & services. In case of Critical goods and services where delivery will be on scheduled basis needed to have 10% Bank guarantee/Pay order will be required products with warranty and warranty card/ letter need not to have such bank guarantee or Pay order to be associated.
Post Qualification/Pre Shipment Inspection: For Critical and High Value Purchase if required Pre shipment inspection will be there.
Delivery: Delivery will be in Head office, designated Factory store or in Depots as per given timeline.
6. Comparative Studies/ Technical Evaluation Approval Limits of Authority:
► Comparative Studies/ Technical Evaluation shall be approved by the authority as per Approval Limits of Authority as charted below.
Value of procurement Approval Limits of Approval Authority Any Asset Items Approval of Management is must before initiating procurement procedure against budget BDT 1 – BDT 20,00,000 Regular consumable/ conventional Items may be approved by Head of Procurement against Approved Budget of Management. BDT 20,00,001- 50,00,000 Regular consumable/ conventional Items may be approved by Head of Procurement against Approved Budget of Management & fixed Rate, Contract, Agreement Set & approved prior hand where applicable. BDT 50,00,001 – and above Management Approval Mandatory BDT 1 – BDT 500,000 For Irregular items/ Non-Conventional Items like Brand Merchandising Primary Budget Approval mandatory approval of procurement may done by Head of Procurement as per set guideline. BDT 5,00,001 – and above For Irregular items/ Non-Conventional Items like Brand Merchandising Primary Budget Approval mandatory and secondary /Financial approval required from Management. Repeat Order For repeat Orders of same Specification and same quantity variance of 20% higher or Lower quantity can be recorded with the approval discretion of Head of Procurement.
