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Procurement - best practice
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Achieving sustainable procurement involves co-ordination of many internal functions:
Purchasing dept
Devolved buyers (100s in many universities)
Estates / Facilities – taking delivery of and storing goods, managing disposal and waste
Academic / Facilities depts – utilise goods or services.
Hence, the starting point for a successful initiative is good co-ordination between these functions, and a considerable amount of awareness raising and training.
A key tool for sustainable procurement is whole life costing. This t akes account of the total cost of the equipment or service from determination of the general need for it right through to its eventual disposal, termination or replacement. It includes the cost of acquisition and of maintaining and operating the equipment or receiving the service, as well as the purchase (rental or lease) price and the price of consumables. Using WLC often reveals that the initial purchase price is well under half of the whole life cost, with much of the difference being due to ongoing energy and water costs.
The following list from the UK Government's Sustainable Development initiative shows some of the specific issues to be considered. 1. Reduce
The cost effective and environmentally sound option is to use less and therefore order less. So check whether the purchase is necessary, for example:
- is the product fit for the purpose?
- can you encourage staff to retain what they have for longer?
- is there redundant equipment elsewhere in the department which can be used?
- has the option of repair, upgrading or refurbishment rather than buying new been considered?
- can the product be used to the end of its useful life? If not, can it be easily relocated?
- is the product over specified? Can it be made from a lower grade material which uses less material without compromising quality ?
- is the product covered with a long warranty, e.g. at least 5 years for chairs and ten years for filing cabinets and desks? (This is necessary to encourage manufacturers to end the wasteful practice of making products which quickly become obsolete and so require replacing.)
- is the product the most energy-efficient it can be? Will it create less waste than alternative choices? See Action Sheet on " Energy Efficiency " in Part 3.
- does the product have any negative local impacts, e.g. the potential to pollute local water courses?
- is the packaging the minimum necessary for protection? Is there an alternative? For example, can we specify that caterers use jugs instead of individual milk and cream cartons?
- is the product free from ozone-depleting and hazardous substances?
Evaluate your requirements and prioritise which items should be used. Ask the supplier for documentation about environmental issues and concerns associated with the use of the product and, where relevant to the contract, the use in the manufacturing process of hazardous materials, recycled content and materials from non-renewable sources. Keep abreast of latest developments.
2. Re-use
If appropriate, look for goods that:
- are repairable and easily upgraded and supported, with guaranteed stocks of easily replaceable parts
- are designed to be disassembled and easily replaced
- come with clear and comprehensive maintenance, repair and operating instructions (preferably printed on double sided recycled paper containing at least 80% post consumer waste), with inventory numbers for replacement parts
- are supported with guaranteed stocks of easily replaceable parts
- are protected with packaging which, preferably, the supplier will accept back for re-use, recycling or recovery or, less preferably, is capable of being recycled locally by the end user.
Also, try to find an alternative use for unwanted goods and equipment by, for example:
- checking whether they can be used elsewhere in the organisation - if necessary, after refurbishing them
- specifying that the supplier should operate a take-back scheme
- approaching an organisation like the Disposal Sales Agency to sell the unwanted equipment (Tel: 020 7261 8879/8971/8956). Check that the organisation accepts liability for any harm that may be caused from passing on the equipment for re-use.
- refering to the guidance on DETR's web site for green procurement and waste management
3. Recycle
Try to reduce the use of virgin materials wherever possible by asking:
- does the product comply with environmental policy?
- are products made from recovered or recyclable materials (with labelled components and easy snap-apart disassembly), e.g. printer cartridges?
- can you set a target to maximise the number of products made from remanufactured parts and recycled materials relative to non-recycled alternatives?
- can you identify, evaluate or revise any standards or specifications unrelated to performance that prevent the purchase of such products?
4. Rethink
Sometimes the way we do things requires a complete rethink. For example:
- have all products and alternatives been considered? Does your choice provide the right benefits and timings, at the right costs? Are the risks and uncertainties acceptable?
- do lease arrangements make provision for the owner and tenant to share in the savings either achieves, so that both have an incentive to achieve them?
- does the commission paid to architects, designers etc provide an incentive to achieve savings in life time costs, or are they rewarded for what they spend and not what they save?
- can adherence to best practice be made mandatory?
- is it feasible to join other departments in a consortium and use the extra buying power to promote environmental alternatives and establish good deals with suppliers? For example, the Department of Social Security and The Buying Agency have combined to set up a Government-wide call off contract for supplying recycled photocopier paper.
Some best practice examples of FHEI sustainable procurement include:
Edinburgh University – which has mandatory whole life costing for purchases above £50,000
Leeds Metropolitan University – an integrated approach which created a number of benefits
Oxford Brookes University – the world's first Fairtrade University
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