Federa: Procurement


What is Procurement?

Procurement is the process of selecting vendors, strategic vetting, selection, negotiation of contracts, and the actual purchasing of goods. Procurement acquires all the goods, services, and work that is vital to Federa.

 What is the Procurement Process at Federa?

Anytime a purchase is being made on behalf of Federa that does not qualify as a personal expense, or meet the list of exceptions, a Purchase Order Request must be approved BEFORE a purchase and/or work can begin.

Exceptions to the PO policy include, but are not limited to, purchases under $5,000 USD.

Shared Goals

Procurement is a cross-functional team that supports Federa. We have four key objectives monitored in the following ways:

  1. Risk Management and Compliance
    • Reported and monitored via internal and external audit which gets reported to our shareholders.
  2. Digital Automation and Efficiency
    • Reported via annual cost avoidance and year over year savings
  3. Strategic Partnership and Department Spend Reviews
    • Reported through the twice annual NPS survey
  4. Responsible Sourcing and Diversity
    • Monitored via Federa Banc Vendor Onboarding


  1. Monitor the cost avoidance achieved through the procure to pay process. Cost Avoidance is the savings achieved off of the initial vendor proposal price. Note this is not directly tied to budget.

    Aligns with the following core business objectives:

    • Control spend and build a culture of long-term savings on procurement costs.
    • Streamline the purchasing process.
    • Minimize financial risk.

    Percentage of all vendor spend for any department that is purchased via PO.

    Aligns with the following core business objectives:

    • Streamline the purchasing process.

  • Before agreeing to any business, legal and/or pricing terms with a supplier, whether in conversation or email
  • Immediately when you receive a contract and/or quote for new and/or recurring business
    • If you have received a contract from a supplier, tell them you will send to your procurement team for review
  • When you have narrowed down your RFP to the final 1-2 suppliers

Exceptions to the PO Policy are:

  1. Purchases under $5K
  2. Charitable Contributions (Donations)
  3. Computer/Hardware Advances (if unable to be paid through Payroll Dept)
  4. Interview Candidate Reimbursement
  5. Legal Fees
  6. Audit, Tax, and Insurance Fees
  7. Benefits, PEO Providers and Payroll
  8. AR/Customer Refunds
  9. Board of Director Payments
  10. Financing, Banking and Investing (incl interest, debt, FX, fees)
  11. Corporate Credit Card
  12. Urgent Payments not included on list above (approval required from VP, Corporate Controller and/or PAO

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