Procurement & purchasing

The procurement process is based on the premise that applicable legislation must be followed, primarily the Public Procurement Act (LOU), but also other related laws. The municipality must work for a good public deal based on cost, sustainability and efficiency aspects.

How a procurement is carried out differs depending on, among other things, the value of the procurement and what is being purchased. In general, however, the procurement process can be divided into four stages:

• preparation
• implementation
• delivery
• follow-up

In certain cases, with limited contract value, the municipality is free to make direct procurements. The goal is always to expose each procurement to competition if possible, even if the procurement is carried out locally.

1. The principle of non-discrimination means that it is prohibited to directly or indirectly discriminate against suppliers primarily on the basis of nationality. Even if Överkalix Municipality does not expect any foreign tenders, the municipal administration may not introduce requirements that only Swedish companies know or can perform. The municipality may also not give preference to a local company due to its geographical location.
2. The principle of equal treatment means that all suppliers must be treated equally and given equal opportunities. For example, everyone must receive the same information at the same time.
3. The principle of mutual recognition means that certificates and attestations issued by the competent authorities of a Member State must also be valid in other EU/EEA countries.
4. The principle of proportionality means that the requirements for the supplier and the requirements in the specification must have a natural connection with and be in reasonable proportion to what is being procured. The requirements set must be both appropriate and necessary to achieve the purpose. If there are several alternatives, the alternative that is least intrusive or burdensome for the suppliers should be chosen.
5. The principle of transparency means that the municipality is obliged to create openness by providing information about the procurement and how it will be carried out. In order for bidders to be given the same conditions for bidding, the request for proposals must be clear and unambiguous and contain all requirements for what is to be procured. This makes it predictable for the suppliers what is of greatest importance when choosing a supplier.

Purchasing policy for Överkalix Municipality

Why regulations regarding purchasing?

Överkalix Municipality is a public entity and is subject to the regulations governing public procurement, including the Public Procurement Act (LOU). We are required to manage/use taxpayers' money in the best possible way. Goods, services and contracts must be purchased at the lowest possible total cost without having to compromise on quality. Deviations may not be made without the approval of the purchaser. The regulations apply to the municipality's elected representatives, boards, committees, administrations, foundations and companies. The municipal council is the decision-making body regarding the purchasing policy.

The purchasing process

The purchasing process must include needs, procurement, purchasing, delivery, invoice management and follow-up. It must be an important part of all operations' work.

Approach

The purchasing process should be characterized by competence, responsibility, commitment and managed in a sustainable manner from an economic, social and environmental perspective. Everyone who works with purchasing should have the necessary competence in the regulations. It is the responsibility of all managers to ensure that the regulations are followed, if we do not follow the regulations we can be hit with costly fines.

The purchaser

The purchaser should have a holistic perspective on the purchasing process, work strategically and comprehensively, be a driver in and streamline the purchasing process and also provide support to the operations.

Responsibility of the business

The business must actively participate in the procurement. It is the business that must set the requirements for the product/service that is needed and that is to be procured – this is because they are the ones who have the knowledge within their business. The business is obliged to follow the regulations. Purchases must be made based on current agreements and ordering procedures or made via direct procurement (ask at least 2 (two) suppliers). Delivery and invoicing must be made based on agreements and based on orders placed. It is important that the invoice is correctly booked and costed. It is also important that the business follows up on its purchasing process and actively improves its purchasing behavior.

Financial requirements

Överkalix Municipality's procurement must be characterized by a holistic approach. This shall aim to develop and maintain an efficient and rational flow of goods and services that provides the greatest overall benefit for Överkalix Municipality. Individual units or administrations' optimizations must not obscure this perspective. It is of central importance that procurements are carried out in such a way that long-term competition is stimulated. This means, among other things, that the opportunities for small and medium-sized enterprises to submit tenders must be taken into account.

Social requirements

In all procurements/purchases, we shall require tenderers/suppliers not to discriminate against anyone on the basis of sex, gender, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation or age or to treat employees or job seekers unfairly on such grounds. Tenderers/suppliers shall also ensure that the production of the procurer's goods/services is compatible with the ILO Convention (fundamental rights at work) and the Convention on the Rights of the Child (not using child labour in the production of the products). The municipality shall, among other things, check that tenderers have fulfilled their obligation to pay taxes and fees, are not bankrupt, have no criminal activity, and so on.

Environmental requirements

Environmental requirements shall be included in procurements where applicable.

Procurement decisions

Procurements that affect all activities within Överkalix Municipality are decided by the Municipal Board.

Purchasing guidelines

Is a complement to the purchasing policy. It describes the purchasing process in more detail and is contained in a separate document.

Procurement Guidelines for Överkalix Municipality

The procurement process for goods, services and works constitutes a large share of the municipality’s expenditure/tax revenue. Therefore, it is important that procurement is carried out in a sustainable and cost-effective manner and in a consistent way throughout the municipality.
These procurement guidelines supplement the procurement policy and describe how the procurement process is to be managed.
The procurement guidelines contain clear and consistent procedures/rules for an efficient procurement process which, in turn, frees up resources that create added value in operations—i.e., more funds remain available within the service area. The procurement guidelines describe how the procurement process for goods, services and works is to be managed. All staff who in any way come into contact with procurement must be familiar with and follow these procurement guidelines.
The procurement guidelines are based on the municipality’s procurement policy and the applicable regulatory framework for public procurement, LOU, the Public Procurement Act (2016:1145). The procurement guidelines are adopted by the Municipal Council and apply to all staff and elected officials within Överkalix Municipality.
The procurement guidelines shall be revised when necessary.

Approach to Improve the Business Climate

The municipality shall work to improve the business climate and act to support a sustainable market with well-functioning competition. The municipality shall create conditions to include more small and medium-sized enterprises and to increase competition in its public procurements by:
• Creating opportunities for businesses to obtain information about current and upcoming procurements.
• Creating opportunities for dialogue with suppliers.
• Working to reduce the scope of procurements.
• Making it easier for businesses to submit tenders.
• Informing businesses about public procurement and how to become a supplier to the municipality.

The Procurement Process

Need arises ► Procure ► Order ► Receive ► Pay ► Follow up

Purchasing Behaviour

Purchases shall primarily be made under the municipality’s framework agreements. If no agreement exists, a procurement procedure shall be carried out.

The Municipality’s Agreements

Agreements shall exist for, in principle, all goods, services and works that the municipality requires. These shall be procured in accordance with the applicable regulatory framework. We can either procure (enter into agreements) ourselves, or we can join agreements established by purchasing central bodies. These bodies establish agreements for the whole of Sweden, which provides favourable terms for all who use their agreements. Purchasing central bodies include, for example, SKL Kommentus and HBV (Husbyggnadsvaror).

Direct Award (Direct Procurement)

When no agreement exists and the total estimated value of the municipality’s need is below 28% of the threshold value—currently SEK 586,907—a direct award shall be carried out by an authorised purchaser or the procurement officer in the e-procurement tool.

Compliance with Framework Agreements

Everyone in the municipality is obliged to comply with concluded agreements in accordance with the Contracts Act (1915:218). Each administration/department/manager is obliged to follow up compliance with purchasing/agreements and to take measures if needed.

Electronic Procurement Tool

All procurements shall be carried out electronically in the e-procurement tool. The procurements are linked to the municipality’s intranet so that all staff can access the information. In the long term, this will also be published on the municipality’s website so that information about the agreements can be read externally by anyone.

The Municipality’s Procurement Officer

• The procurement officer owns the procurement process and its supporting processes, including ongoing development and efficiency improvements of the processes.
• Is the municipality’s specialist expertise in procurement/purchasing.
• Is responsible for informing/training relevant staff.
• Establishes procedures for direct awards.
• Works for an efficient procurement process by actively working with purchasing behaviour.
• Ensures that high compliance with purchasing/framework agreements is achieved and serves as the municipality’s competence resource in procurement matters.

Managers

Managers are obliged to be familiar with the regulations governing procurement and to comply with them. They must ensure that the regulations are well known among staff and that staff follow them. The manager shall designate who is/are to act as authorised purchasers.

Authorised Purchaser

The purchaser is the person who holds the right to place orders, as well as the responsibility to order correctly. The purchaser is responsible for ordering in accordance with procured agreements and ordering routines. Only authorised purchasers are entitled to place orders. This also applies to direct awards.
They must complete mandatory training before they can become authorised purchasers. If no agreement exists, the purchaser must communicate with the procurement officer, who decides what is to be done. The purchaser may not buy from any other supplier or any other range of products/services than those covered by our agreements.
The respective manager designates purchasers within their area of operations and shall inform the procurement officer which authorised purchasers are currently in place. A register of authorised purchasers shall be maintained by the procurement officer.

Operations

Operations shall communicate their need for goods/services to the procurement officer. Operations shall participate in focus groups during the procurement. Operations are responsible for following up and reporting quality deviations on an ongoing basis to the procurement officer.

Focus Group

Prior to each procurement, a focus group should be formed at the initiative of the procurement officer. The group shall consist of the procurement officer and representatives from the operation(s) that have a need for the goods/services.
The purpose of the focus group is, among other things, to ensure that the right range is procured, to take into account volume needs, and to determine how the good/service is to be delivered. The group shall also develop the operation’s requirements in other respects for the goods/services. When necessary, the focus group should also work together with the procurement officer during the contract period.

Invoice Reviewer and Approver

An invoice reviewer and an approver shall be appointed; they are responsible for verification, account coding and approval of supplier invoices based on applicable agreements and in accordance with the applicable authorisation regulations.

Follow-up

To ensure sound and sustainable business, it is essential that the municipality’s purchases are followed up, both within operations and overall across all municipal operations.
The municipality shall ensure that it receives what has been procured and paid for. Therefore, all agreements shall be actively followed up regarding:
• The supplier’s fulfilment of the requirements set
• That the financial outcome and prices correspond to the procurement and the agreement
• That the municipality evaluates the contract period and analyses the operation’s actual needs ahead of a new procurement
As part of internal control, the administrations shall, through follow-up, ensure that the organisation complies with the procurement policy and these guidelines. This is done by verifying that purchases are made by the right persons, in the right way and from the right supplier.