National Camper Trailers Pty Ltd is a fictional company created for educational and training purposes only. NCT Procurement Policy & Procedures Version 1.0 / July 2016 Page 1 of 4

National Camper Trailers Pty Ltd is a fictional company created for educational and training purposes only. NCT Procurement Policy & Procedures Version 1.0 / July 2016 Page 1 of 4

Procurement Policies and Procedures 1. Purpose of procurement standards.

The purpose of these standards is to establish procedures for National Camper Trailers for the procurement of supplies and other expendable property, equipment, materials, real property and other services.

2. Code of conduct.

No employee, officer, or agent shall participate in the selection, award, or administration of a contract if a real or apparent conflict of interest would be involved. Such a conflict would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organisation which employs or is about to employ any of the parties indicated herein, has a financial or other interest in the firm selected for an award. The officers, employees, and agents of National Camper Trailers shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, or parties to sub-agreements except for where the financial interest is not substantial or the gift is an unsolicited item of nominal value. Members of the National Camper Trailers board of directors shall comply with all relevant fiduciary duties, including those governing conflicts of interest, when they vote upon matters related to procurement contracts in which they have a direct or indirect financial or personal interest. Officers, employees, directors, and agents of National Camper Trailers shall be subject to disciplinary actions for violations of these standards.

3. Competition.

All procurement transactions shall be conducted in a manner to provide, to the maximum extent practical, open and free competition. National Camper Trailers shall be alert to organisational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder or offer or whose bid or offer is responsive to the solicitation and is most advantageous to the Corporation, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offer or shall fulfill in order for the bid or offer to be evaluated by the Corporation. Any and all bids or offers may be rejected when it is in the Corporation’s interest to do so. In all procurement National Camper Trailers shall avoid practices that are restrictive of competition. These include but are not limited to:

(a) Placing unreasonable requirements on firms in order for them to qualify to do business,

(b) Requiring unnecessary experience and excessive bonding,

(c) Noncompetitive pricing practices between firms or between affiliated companies,

(d) Noncompetitive awards to consultants that are on retainer contracts,

(e) Organisational conflicts of interest,

(f) Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance of other relevant requirements of the procurement, and

(g) Any arbitrary action in the procurement process.

4. Methods of Procurement to be followed.

(a) Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the “Simplified Acquisition Threshold” (1,000). If small purchase procedures are used, price or rate quotations shall be obtained from an adequate number of qualified sources to insure that the selection process is competitive in accordance with these policies.

National Camper Trailers Pty Ltd is a fictional company created for educational and training purposes only. NCT Procurement Policy & Procedures Version 1.0 / July 2016 Page 2 of 4

(c) Procurement by competitive proposals. The technique of competitive proposals is normally

conducted with more than one source submitting an offer, and either a fixed-price or cost- reimbursement type contract is awarded. It is generally used when conditions are not appropriate for. If this method is used, the following requirements apply:

(i) Proposals will be solicited from an adequate number of qualified sources;

(ii) National Camper Trailers shall evaluate responses to its solicitations and select awardees in accordance the procedures outlined in section 5 below (“Procurement Procedures”)

(iii) Awards will be made to the responsible firm whose proposal is most advantageous to National Camper Trailers with price and other factors considered.

(d) Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate.

(i) Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures or competitive proposals and one of the following circumstances applies:

(A) The item is available only from a single source;

(B) After solicitation of a number of sources, competition is determined inadequate.

(ii) Cost analysis, i.e., verifying the proposed cost data, the projections of the data, and the evaluation of the specific elements of costs and profits, is required.

5. Procurement procedures.

(a) All procurement by National Camper Trailers shall comply, at a minimum, with the requirements of subsections (i), (ii), and (iii) below:

(i) National Camper Trailers avoid purchasing unnecessary items.

(ii) Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement.

(iii) Solicitations for goods and services provide for all of the following.

(A) A clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, such a description shall not contain features which unduly restrict competition.

(B) Requirements which must be fulfill and all other factors to be used in evaluating proposal submitted in response to solicitations.

(C) A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards.

(D) When relevant, the specific features of “brand name or equal” descriptions that are to be included in responses submitted to solicitation.

(E) The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement.

(F) Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.

(b) Positive efforts shall be made by National Camper Trailers to utilise small businesses, minority-owned firms, and women’s business enterprises, whenever possible. National Camper Trailers shall take all

National Camper Trailers Pty Ltd is a fictional company created for educational and training purposes only. NCT Procurement Policy & Procedures Version 1.0 / July 2016 Page 3 of 4

of the following steps to further this goal.

(i) Ensure that small businesses, minority-owned firms, and women’s business enterprises are used to the fullest extent practicable.

(ii) Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women’s business enterprises.

(iii) Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women’s business enterprises.

(iv) Encourage, when practical, contracting with consortiums of small businesses, minority-owned firms and women’s business enterprises when a contract is too large for one of these firms to handle individually.

(c) The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by National Camper Trailers but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved. The “cost-plus-a-percentage-of- cost” or “percentage of construction cost” methods of contracting shall not be used.

(d) Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical resources or accessibility to other necessary resources.

6 Cost and price analysis.

Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action above $500 in value. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, and allow ability.

7. Procurement records

Procurement records and files for purchases in excess of the small purchase threshold as fixed $10000 shall include the following at a minimum:

(a) basis for contractor selection,

(b) Justification for lack of competition when competitive bids or offers are not obtained, and

(c) Basis for award cost or price.

8. Contract administration.

A system for contract administration shall be maintained to ensure contractor conformance with the terms, conditions and specifications of the contract and to ensure adequate and timely follow up of all purchases. National Camper Trailers shall evaluate contractor performance and document, as appropriate, whether contractors have met the terms, conditions and specifications of the contract.

9. Contract provisions.

National Camper Trailers shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts.

(a) Contracts in excess of the Simplified Acquisition Threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be

National Camper Trailers Pty Ltd is a fictional company created for educational and training purposes only. NCT Procurement Policy & Procedures Version 1.0 / July 2016 Page 4 of 4

appropriate.

(b) All contracts in excess of the Simplified Acquisition Threshold shall contain suitable provisions for termination by the Corporation, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor.

(c) For contracts dealing with construction or facility improvements National Camper Trailers shall comply with all requirements imposed by its funding sources with regard to construction bid guarantees, performance bonds, and payment bonds.

(d) All negotiated contracts (except those for less than the Simplified Acquisition Threshold) awarded by National Camper Trailers shall include a provision to the effect that National Camper Trailers shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions.

10. Free Trade Agreement

National Camper Trailers will follow the guidelines as stated within the Australian Government Free Agreement regulations when dealing with, contracting materials or selling product on the international market.