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Low Value Purchasing
Low Value Purchasing (LVP) Officers are responsible for purchasing,
'off the shelf' goods and services to aid the day to day running
of their Unit/Establishment. It is their responsibility to ensure
that the items they purchase meet the Value for Money (VfM) criteria
laid down by the MOD. Every MOD Unit/Establishment will have an
LVP Officer, therefore there is a likelihood that there will be
an LVP Officer in your area.
As the title suggests, LVP Officers only have delegated authority
to purchase items of a 'low value'. This is defined as under £5,000,
as it links into the limits set by the small claims court However,
not all LVP Officers will have a £5,000 delegated authority,
many are only delegated a limit of a few hundred pounds.
Procedures for selecting companies are informal. LVP Officers will
select companies from a number of different routes, including local
yellow pages and trade catalogues. Companies wishing to make themselves
known to LVP Officers should put their details in writing enclosing
a catalogue or leaflet if possible. Many orders at the lower end
of the pricing scale are placed with minimum formality,
with quotes being sought and accepted either over the telephone
or by fax or Internet. It is the LVP Officer's responsibility in
the first instance, and providing the VfM criteria is met, to use
the Government Procurement Card (GPC), a VISA purchasing card as
the 'first choice' purchasing tool. The GPC is a smarter method
of purchasing low value items and it provides excellent Management
Information. This may include line item detail and VAT information,
and for this reason the GPC has been embedded in Enabling Contracts
as the payment mechanism. Companies wishing to
become VISA enabled can contact any high street bank. In cases where
goods or services conforming to a particular quality standard are
required, a company will have to show that they meet that requirement.
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