PURCHASE ITEM COSTING RM1 MILLION AND ABOVE

• The Procurement Committee (PC) shall decide either to:

i. Evaluate and select a supplier from 3 quotations obtained.
ii. To call for tender

• Repeat orders to purchase shall go through the same process (Please refer Purchase of Non-Stock Items/Fixed Assets procedures).
• Orders exceeding RM1 Million shall be submitted to PC.
• Appointment of Tender Box Committee Members (TBC) and Tender Selection Committee Members (TSC) shall be done as the normal tender process.
• If PC decides to call for tender, the following process must be adhered.

REQUESTOR

Line Manager
(1) To forward the Purchase Requisition Form (PRQ) to Chief Executive Officer (CEO), after it has been recommended by PC (Please refer Purchase of Non-Stock Items/Fixed Assets procedures).

CEO
(2) Verify and endorse the PRQ.

Executive/Sr. Executive
(3) The PRQ will then be forwarded to Procurement Section (PS).


PROCUREMENT SECTION

Executive/Sr. Executive
(4) Receive the PRQ. Check that approval as per the Limits of Authority (LOA) and endorsed by CEO. If ‘NO’, return PRQ to requestor for amendment.

(5) If approvals in order, record details in “Received Register”:

 Date received.
 PRQ transaction ID
 Requestor
 Received by
 Received from.

(6) The Executive and the person that send the PRQ jointly sign on the register at the ‘received by’ and ‘received from’ columns respectively.

(7) Stamped ‘Received’ and annotate date on the PRQ.

(8)Prepare memo to be signed by Line Manager to appoint::
 TBC.
 TSC.
 Independent observer (IO).

Line Manager
(9) Sign the memo.

Executive/Sr. Executive
(10)Distribute the signed memo to the respective nominated committee members for their immediate action. Attached the memo with the information of tender date, venue and time of the opening and closing of tender box.


PROCUREMENT SECTION (cont’)

Executive/Sr. Executive
(11)Call for TSC meeting to discuss on the mode of tender.

(12)Submit PRQ to TSC.

TSC
(13)To decide on the mode of tender whether to:
 Call for new tender
a.Close Tender
b.Open Tender
 Continue with the same vendor.

(14)If open tender, TSC will have to decide on the deposit amount. Then, forward the decision to Senior Executive for further tender exercise. Proceed to “SENIOR EXECUTIVE-Open Tender” workflow.

(15)If close tender, instruct to invite identified vendors to bid. Decide on the deposit amount. Proceed to “SENIOR EXECUTIVE-Close Tender” workflow.

(16)If continue with the same vendor, each TSC member to sign on the PRQ for decision made and continue the workflow as per Purchase of Non-Stock Items/ Purchase of Fixed Assets workflow.

Sr. Executive
(Open Tender)
(17)Prepare schedule for tender exercise.

(18)Advertise tender in newspaper.

Sr. Executive
(Close Tender)
(19)Prepare schedule for tender exercise.

PROCUREMENT SECTION (cont’)

Sr. Executive
(Close Tender)
(20)Prepare Letter of Tender Invitation and Tender Specification. Send both to the identified vendors.


CLOSING OF EMPTY TENDER BOX

TBC + IO
(21)Empty Tender Box will be locked one (1) day before the tender exercise is opened to public. Ensure that the Tender Box is empty.

(22)Lock the Tender Box with two (2) separate padlocks and placed the box at the main counter of the PS. The 2 keys to the Tender Box are kept separately in sealed envelopes. Seal the box.

(23)TBC and IO to sign on each envelope.

TBC
(24)Will be given two (2) envelopes containing keys for the committee safekeeping.

(25)All tender applications are to be deposited into the tender box on or before the closing date and time of tender exercise. Any late submission, the Company reserves the right to disqualify any bidders/applicants automatically.

OPENING THE TENDER BOX

TBC + IO
(26)The TBC will open the seal Tender Box one (1) day after closing date. The box is open in the presence of IO.

TSC
(27)TBC will hand over the open Tender Box to the TSC. All presence must sign on the tender application letter and number each letter in sequence.

(28)Prepare the list of tender received and to certify (each member to sign) the list.

(29)Within 1 week after closing date, the evaluation and selection of the successful tender must be finalized.

(30)If presentation is needed on bidders product or services, instruct to prepare a letter to call for interview/presentation.

(31)If no quotation received, TSC has to decide whether to extend the closing date. If close tender, inform bidders on the extension of closing date by letter and advertise in newspaper for open tender.

(32)If not to extend the closing date, TSC can change the mode of open tender to close tender.

Executive/Sr. Executive
(33)Send letter to the selected bidder.

TSC
(34)Conduct the interview/ presentation with bidder and submit the recommendation.



OPENING THE TENDER BOX (cont’)

HOD, HCS
(35) To verify and certify the recommendation.

PC
(36)To verify and endorse the recommendation. Send to CEO for approval.

CEO
(37)To verify and approve.

Executive/Sr. Executive
(38)For successful bidder, issue Letter of Award (contract)/ Letter of Offer.

(39)For unsuccessful bidder, notify through letter and return the tender deposit.

(40)If successful bidder did not accept the offer, forfeit the deposit and issue the Letter of Award/ Letter of Offer to next best bidder.

(41)Lastly, issue PO to bidder as per PRQ/PFA form. (Please refer to Purchase of Non-Stock Items/Fixed Assets Process Workflow).