Q. Previously for SNUPI we have signed a commitment form on each contract we intend to use.  Is this now not necessary?

 

Yes, it is necessary.  There is no change at all to these arrangements as a result of SNUPI becoming a limited company.

 

The user commitment is not strictly legally enforceable because SNUPI’s success depends largely on the goodwill, input, and co-operation of all its members.  However, the purpose of the commitment form is to enable SNUPI Ltd to achieve best prices for members by demonstrating size of purchasing power to prospective suppliers when a tender for supply is being put in place.  Clearly it is important also that, once members have signed commitment forms, they do their best to follow through with that commitment - otherwise, SNUPI Ltd will lose credibility with suppliers.

 

Q. If signing pre-commitment forms is still necessary, how does this tie in with signing up as a full member?  Does formal membership give access to all SNUPI’s contracts, irrespective of whether pre-commitment forms have been signed or not?

 

A. Again there is no real change to the previous arrangements. Members are encouraged to use all of SNUPI’s contracts, but we recognise that this may not be appropriate in all cases. 

 

Because we are an organisation controlled by its member users, we try to be flexible on these issues.  However, in the interest of all members, the Members Agreement which we ask all members, both full (voting) and associate members, to sign, includes an obligation to use best endeavours to follow the agreed procedures and to support SNUPI generally.

 

Q. The Members Agreement obliges members “to ensure that SNUPI Purchasing Agreements and other initiatives are used and implemented within its own institution or body”.  How does this tie in with their value for money obligations to review alternatives, and where appropriate, decide which contract would be the best for the individual institutions whether from SNUPI or elsewhere?

 

A. Institutions will undoubtedly conduct VFM audits of their purchasing agreements. SNUPI Ltd continually benchmarks the competitiveness of its contracts and has found its pricing to be amongst the most competitive within the sector.  If on occasion a member finds an alternative source of supply that offers better value for money on a comparable basis, then SNUPI Ltd accepts that, in principle, this would be a justifiable reason for using an alternative contract.  However, before taking such action, we would also hope that members would report the circumstances to the SNUPI management so that appropriate discussion/action with suppliers can be considered in the interests of all members.

 

Q. Do full members have liability limited and if so, what is the amount at risk?

 

A. Yes.  SNUPI is a company limited by guarantee (rather than a company limited by shares). To become a voting member, institutions are required to give a guarantee, but the guarantee is a nominal amount of £1 per full member. 

 

This means that voting member institutions who have signed the Membership Agreement commit to contribute a maximum amount of £1 in the event that further funding was required from members (for example, in the unlikely event of a substantial claim against the company).

 

Q. How many Members does SNUPI have?

 

A. The number of voting (full) members and those in process of signing the forms is around 50.  In addition there are half a dozen LEAs and some 50 colleges (many of substantial size) who are currently allowed to use SNUPI contracts.