Document Number: Q-0600-1 / Issued: 2/12/99
Subject: Purchasing Procedure / Revised: 11/15/10
UL / Document Number: Q-0600-1 / Page 1 of 5
DQS / Prepared By : Lisa McCall / Issued: 2/12/99
Inc / Reviewed By : Lisa McCall / Revised: 11/15/10
Approved By : Michael J. Caruso
Subject: / Purchasing Procedure
1. PURPOSE
To define the purchasing process for procurement of contract auditors (Designated Auditors and Technical Advisors) and services including accreditation services, technical assessment documents and training services utilized by UL DQS Inc.
2. SCOPE
This procedure applies to all UL DQS staff responsible for the procurement of these auditor and service providers.
3. APPLICABLE DOCUMENTS
L-65 Contract Assessor Agreement
Q-1600-1 Control of Records
Q-1800-1 Auditor Appointment Procedure
Q-1800-4 Technical Reviewer Competence and Qualification Procedure
Q-1807-4 Industry Competency Procedure
QF-0599-10 Document List for Contract Auditors
4. DEFINITIONS – See Definition Document, Q-0000-3
5. GENERAL
5.1 All current contract auditors, Technical Advisors (TA) and subcontractors are grandfathered into this system as of 9/1/07. This is based on the contracts in place and the ongoing evaluation of the service/product provided. The evidence of approval for the audit staff is the Active status in Dynamics Auditor records.
5.2 The subcontractors for services and/or supplies (non audit staff) are based on selection, evaluation and re-evaluation.. Approved service subcontractors are listed in the Dynamics Vendor database controlled by Finance. Finance is responsible for purchasing services/supplies and for verifying the purchased service/supplies meets the Purchase Order requirements. Purchase orders will describe the service to be purchased and will be reviewed for adequacy prior to submittal to the service provider.
5.3 The procurement methods for subcontracted resources may vary in some regions with respect to minor procurement and process elements; however all contracts, conflict of interest and review requirements are the same globally.
5.4 UL DQS purchases audit services in the form of contract auditors and subcontract organizations (outsourced). In the case of contract auditors, the arrangement is with an individual, or company consisting of 1 individual. In the case of a subcontract organization, the arrangement is with another body using their auditors as part of UL DQS’s service.
5.5 All audit services procured through a contract auditor or subcontracted organization must adhere to the minimum qualifications as described by UL DQS program procedures for the applicable programs.
5.6 Agreements for procurement of audit services through a subcontract organization shall adhere to UL policy regarding maintenance of impartiality and shall be evaluated at least annually to ensure impartiality of services is maintained (QF-0900-8). They shall be limited to delivery of audit services only, and cannot include certification decision. Individual contract auditors can be contracted to perform certification decision under the oversight of UL DQS Certification function per Q-1800-4
Page 5 of 5Document Number: Q-0600-1 / Issued: 2/12/99
Subject: Purchasing Procedure / Revised: 11/15/10
5.7 Contract Auditors are required to sign the Contract Assessor Agreement, L-65. Any waivers in the contract must be approved and signed by the UL DQS Vice President of Certification. This must be done prior to performing assessments for UL DQS.
5.7.1 The agreement may be issued in the name of the contract auditor or under their company name depending on how they want payment made. In the case of the agreement being with a company, the individual auditor’s name needs to be included in parentheses after the company name. (e.g. Quality Audits Corp. (John Smith)). The top section of the agreement must indicate that the agreement is for “An individual” unless the region has approval from the Vice President, Certification to contract with an organization that will provide multiple auditors at their selection. In any case where we contract with an organization for providing multiple auditors, we must receive confirmation in writing that they do not provide management systems consulting services.
5.8 UL DQS affiliates are part of DQS Holding and are not considered outsourced organizations. Separate agreements are executed with each affiliate that is authorized to conduct assessments under the UL DQS program. These agreements are retained by the Vice President, Certification.
6. PROCEDURE
DESIGNATED AUDITOR AGREEMENTS
6.1 In addition to verifying whether the prospective contract auditor meets the education and experience prerequisites defined in Q-1800-1, regional management will determine if they are agreeable to the following subcontract terms:
1. The contract auditor must be willing to provide a list of any firms where they have performed consulting services within the last two years.
2. Assess the anticipated availability of the contract auditor and whether this will meet our scheduling needs. Explain the scheduling process and note UL DQS does not normally guarantee a minimum number of audits.
3. Explain training process and expected number of training audits based on the contract auditor’s background. Obtain agreement that UL DQS will not pay a daily rate for training audits and will reimburse travel and living expenses only. (While in training, under certain conditions, a nominal daily rate may be authorized by regional management.)
4. Agree to on-site daily rate for audits after qualification. A daily rate is not normally paid for off-site activities or travel time. UL DQS Inc. auditors are to be provided with the Contract Auditor rate table.
6.2 If agreement is reached to contract the auditor, the Contract Assessor Agreement shall be prepared along with the example SIC justifications. The contract auditor will be requested to return the signed agreement, list of firms to which they have provided “Consulting Services” within the last two years, and the background information required by Q-1800-1, 5.4.
6.3 When the auditor returns complete documentation, regional management will review the background information to verify the contract auditor meets the prerequisite requirements and determine which SIC codes are acceptably justified.
6.4 The following activities will be performed prior to scheduling the contract auditor for training:
1. Submit the original Conformity Assessor Agreement to the Vice President, Certification or Vice President, Operations for approval. Upon approval, the original will be filed in the Certification qualification files or Operations DA files (USA/ Canada auditors).
2. Submit background information to the Certification function who will setup a qualification file and enter the auditor in Dynamics.
3. Notify the Executive Assistant of the contract auditor name and contact information to order business cards and add them to the organization chart
4. Management shall review/approve SIC code justifications per Q-1807-4.
5. Provide a copy of the list of firms where consulting services have been performed within the last two years to Planning. Planning will block the contract auditor from being scheduled at any of the firms, which are UL DQS customers. The planner will note the blocking of this auditor in the Specials tab for each customer business relations that is impacted. The planners check the Specials tab prior to assignment of each audit.
6. Notify IT of the contract auditor name and email address. IT will provide access to the Contractors website, Concur (US/ Canada), and webmail.
7. Provide the contract auditor the address and password for the contractors website, webmail and Concur (US/ Canada).
8. Provide the contract auditor a copy of the Travel Policy.
9. Notify Finance so the contract auditor is established as a Vendor in Dynamics.
6.5 Begin training the contract auditor in accordance with Q-1800-1.Upon qualification, the annual evaluation process will be performed per Q-1800-1 to ensure the auditor continues to perform competently and maintains knowledge of UL DQS policies and procedures.
TECHNICAL ADVISOR AGREEMENTS
6.6 Technical Advisors may be contracted to serve in the following capacity:
1. The TA will provide technical support and guidance to the audit team, but will not serve in the role of auditor or lead auditor.
2. If the TA is the audit team member qualified in the SIC, the TA must be present for the duration of the audit and must accompany the auditor during the audit of design.
3. If the TA is included on the audit team for a specialized field of knowledge and is not the only team member qualified in the SIC, the TA need only be present during the audit of the areas related this knowledge. (i.e. Sterility expert on an ISO 13485 audit need only be present during the audit of the areas requiring a sterile environment.)
6.7 The background of each prospective external TA will be reviewed in accordance with Q-1800-1 or Q-1807-4 depending on the type of specific technical requirement they will provide. Regional Management will agree to a daily rate for the TA depending upon their background.
6.8 Upon determining that a prospective TA possesses the desired expertise, the TA will be sent the Contract Assessor Agreement, L-65. The TA will be required to return the signed agreement along with a list of any firms for which they have provided consulting services in the last two years.
6.9 After receiving the returned documents, perform the activities defined in 6.4, Item 3 is not needed unless the TA is expected to be utilized on an ongoing basis. Item 6 and 7 are to be limited to access to Concur but not webmail or the contractor website.
6.10 For approved TA’s, which have not been utilized by UL within the previous two years and for the purpose of monitoring the maintenance of their ongoing expertise in the field, copies of newly acquired credentials obtained since the previous approval by UL DQS shall be obtained from the TA.
6.11 Regional management will review the additional TA background information to determine if the additional credentials and experience are sufficient to extend the individual’s knowledge. The background information shall be forwarded to the Vice President, Certification for final approval prior of continued use of the external TA.
PROCESSING INVOICES
6/12 Contract Auditors are to submit invoices in the method proscribed by the region in which they are contracted. US/ Canada auditors are to submit invoices utilizing the Concur Expense management system in accordance with the UL DQS Inc. Travel Policy.
ANNUAL REVIEW FOR IMPARTIALITY CONTROLS
6.13 Each January, each contract auditor will be requested to provide an updated list of clients for which they are provided consulting services in the last two years or a confirmation that they have not performed consulting services. The list is to be retained by regional management. In the US/ Canada region, the list are retained in the Operations Contract Auditor files. The updated list of firms will be sent to Planning so the contract auditor can be blocked from any additional clients added to the list. The block is to be noted in the Dynamics Specials tab for each impacted Business Relation of the customer.
6.14 Planning is to provide the list to Regional Management. Regional Management will review the list against the audits performed by the contract auditor to see if there are trends of consulting services being provided to customers where they have previously audited. If so, the situation is to be investigated to ensure that there is no conflict of interest. If a conflict of interest is confirmed, action will be taken up to disqualification of the contract auditor.
RECORDS
Records will be maintained in accordance with Q-1600-1, Control of Records
Underwriters Laboratories Inc.®
Management Systems Solutions
Revision History Sheet
Document Number: Q-0600-1
Issue Date: February 12, 1999
Document Title: Purchasing Procedure
Date / Description of Change / Originator2/12/99 / Initial Release / L. Hamilton
S. Schmid
3/2/01 / Section 6.4.3, addition of requirement that previously approved Technical Advisors which have not been utilized by UL within a two year time frame, be required to submit evidence of credentials/expertise gained during that time period in order to ensure maintenance of ongoing knowledge in the field of expertise. / I. Miller
02/12/02 / Update to address new L-65 agreement. Remove requirement for signed conflict of interest affidavit and reference to RAB Advisory 4 which is now obsolete. / L. Hamilton
S. Schmid
12/10/04 / Updated to replace US specific terms. Incorporated requirements of Q-1807-2 that are not in Q-1800-1 so it could be deleted. / L. Hamilton
1/16/08 / Updated section 5 to include grandfathering criteria for DA, TA and subcontractors; added procedure references to Q-1600-1, Q-1800-1, Q-1807-4; removed record retention requirements since they are now in Q-1600-1; miscellaneous formatting corrections. Added 5.3.1 regarding contracts being with individual auditors. / A. Tucker
3/18/08 / Added: including accreditation services, technical assessment documents and training services to 1.0; 5.2 – added reference to UL Purchasing / A. Tucker
11/15/10 / Complete Update to UL DQS processes and systems / L. McCall