The objective of this Procurement Policy is to provide a clear framework for the efficient, transparent, and ethical acquisition of goods, services, and works that support the organization’s mission. The policy ensures accountability, value for money, and adherence to all legal, regulatory, and donor requirements.
This policy applies to all employees, volunteers, consultants, and contractors involved in procuring goods, services, or works on behalf of the organization. It governs all procurement activities, including those funded through grants, donor contributions, and operational budgets.
- Transparency: Procurement processes will be open, well-documented, and clearly communicated to all stakeholders.
- Accountability: All individuals engaged in procurement must act responsibly and justify their decisions.
- Fairness: All suppliers will be treated impartially and without bias.
- Value for Money: Decisions will balance quality, cost, efficiency, and sustainability.
- Compliance: The organization will follow all applicable laws, donor rules, and internal guidelines.
- Goods: Office supplies, equipment, materials, and consumables.
- Services: Consultancy, maintenance, IT support, legal, and other professional services.
- Works: Construction, renovation, or maintenance of buildings and infrastructure.
- Procurement Committee:
- Oversees major procurement decisions and high-value purchases.
- Ensures adherence to policy and includes at least three members from finance and program teams.
- Finance Department:
- Confirms budget availability, reviews procurement requests, and processes payments.
- Program/Project Managers:
- Initiate procurement requests and ensure alignment with project plans and approved budgets.
- Micro Purchases (Below INR 30,000):
- Direct purchases permitted with one quotation and departmental approval.
- Small Purchases (INR 30,000–1,50,000):
- Require at least three written quotations.
- The most advantageous offer is selected based on quality, cost, and delivery.
- Large Purchases (Above INR 1,50,000):
- Require a formal Request for Proposal (RFP) or Request for Quotation (RFQ).
- Evaluation by the Procurement Committee against predefined criteria.
- Sole Source Purchases:
- Allowed only when a single qualified supplier exists or in emergencies.
- Requires written justification and approval from both Finance and the Procurement Committee.
7. Vendor Selection and Evaluation
- Selection Criteria: Price, quality, reliability, capacity, ethical compliance, and legal standing.
- Pre-qualification: Vendors may be pre-approved based on experience, capacity, and past performance.
- Evaluation: Vendors will be periodically reviewed for performance, cost, and service quality; poorly performing vendors may be removed from the list.
- Purchase Requisition: Initiated by requesting department with specifications and budget details.
- Quotation/Bid Solicitation: Conducted according to procurement thresholds.
- Bid Evaluation: Committee evaluation based on financial and technical merit; decisions documented in a Bid Evaluation Report.
- Purchase Order (PO): Issued with details on price, quantity, delivery, and payment terms.
- Contracting: Used for high-value or complex procurements; defines deliverables, timelines, and penalties.
- Conflict of Interest: All participants must disclose potential conflicts and act in the organization’s best interest.
- Gifts and Hospitality: No acceptance of gifts or favors that could influence procurement decisions.
- Confidentiality: All procurement information (quotes, bids, pricing) must remain confidential.
- Anti-Fraud and Corruption: The organization maintains zero tolerance toward fraud or corruption; all suspicions must be reported and investigated.
- Invoice Processing: Vendors must reference PO numbers; invoices will be verified against delivery notes before payment.
- Payment Terms: Payments will follow agreed terms, typically within 30 days of satisfactory delivery.
- Advance Payments: Permitted only with Finance approval and under adequate safeguards.
- Documentation: Complete records of all procurement transactions will be maintained.
- Retention: Documents will be securely stored for audit and reporting purposes.
- Audit Trail: All transactions will have a verifiable trail accessible to internal and external auditors.
- Compliance: Procurement and Finance teams will ensure adherence to this policy and relevant laws.
- Monitoring: The Procurement Committee will oversee ongoing procurement activities and address issues as needed.
- Audits: Regular audits will review compliance, transparency, and resource utilization.
This policy will be reviewed annually, or as needed, by the Board of Directors/Trustees and Finance Committee to reflect organizational, legal, or donor-driven changes.
By following this Procurement Policy, The HEAL Foundation reaffirms its commitment to ethical, transparent, and responsible procurement practices that uphold its mission and core values.