Procurement Policy & Code of Practice

Procurement Policy AWE

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AWE’s Procurement Policy is outlined below. 

Procurement Policy

  • The Procurement of all Works, Goods and Services shall be conducted in accordance with AWE Procurement Processes and Procedures;
  • Items shall be procured solely to deliver the contracted programme;
  • Financial authority for the purchase must exist before commitment to contract;
  • All business relations and personal behaviour shall be conducted in accordance with AWE Business Ethics policy;
  • AWE shall seek to contract for outcome and for joint and shared benefit with our suppliers; to jointly understand, share and mitigate risk;
  • Competition shall be a key tool to select our suppliers and demonstrate lifetime value for money;
  • Suppliers shall be managed proactively using a differentiated approach based on the value and importance of the article provided;
  • AWE shall seek long term business arrangements with suppliers who provide strategic support and who demonstrate commitment to delivering increased value and share our ethos and culture; and
  • AWE shall only engage with suppliers that are financially sound and demonstrably competent in the performance and management of their work and meet our Assurance standards.

The AWE Business System

All procurement by AWE plc is undertaken using an Oracle-based Procure-to-Pay (P2P) system. To be valid, all contracts agreed with AWE plc must be made using a Standard Purchase Order with a unique purchase order number. Any request without a purchase order and number is invalid and AWE plc will have no liability.

Work undertaken at risk without a valid order is not authorised and no individual at AWE plc has the authority to request suppliers to work at risk. The P2P system uses a three-way matching process to enable payment following receipt of works, goods or services. To enable payment to suppliers there must be: a valid order; a valid receipt that the articles ordered have been received satisfactorily; and a valid invoice. All three elements have to match to enable payment.

Authority to Commit to Contract

  • AWE plc maintains a separation of duties policy for the procurement of articles:
  • Financial authority is the ability of designated post holders to commit budget funds in pursuit of articles needed to deliver the contracted programme with MoD. Financial authority does not enable delegatees to commit AWE plc to contract with suppliers.
  • Procurement authority is the ability to commit AWE plc to contract and is held under delegated authority by Procurement Staff. Procurement managers will not let a contract unless there is accompanying financial authority and the commercial aspects of the contract have been undertaken in accordance with AWE plc procurement procedures.
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