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  1. 1. PURCHASING Policies and Procedures November 10, 2009
  2. 2. Presenters <ul><li>Scott Schreiner, Director </li></ul><ul><li>Vicki Von Harz, Administrative Assistant </li></ul>
  3. 3. Question <ul><li>What do you want to learn at this session? </li></ul>
  4. 4. Agenda <ul><li>Purchasing Department Responsibilities </li></ul><ul><li>General Information </li></ul><ul><li>Quotes </li></ul><ul><li>Bids </li></ul><ul><li>RFP’s (Request for Proposal) </li></ul><ul><li>Purchase Requisition Form </li></ul><ul><li>Receiving Reports </li></ul><ul><li>State Contracts </li></ul><ul><li>Sole Sources </li></ul><ul><li>Furniture </li></ul><ul><li>Surplus Property </li></ul><ul><li>Printing Purchases </li></ul><ul><li>Logo Item Purchases </li></ul><ul><li>Software Purchases </li></ul><ul><li>Purchasing Card </li></ul><ul><li>Software Purchases </li></ul><ul><li>Signature Authority </li></ul><ul><li>Miscellaneous Purchasing Items </li></ul>
  5. 5. Purchasing Department Responsibilities <ul><li>Plan, organize, and direct all Purchasing activities across campus </li></ul><ul><li>Vendor negotiations </li></ul><ul><li>Formal bids </li></ul><ul><li>Policy and procedure development and implementation </li></ul><ul><li>Compliance monitoring </li></ul><ul><li>Service organization </li></ul>
  6. 6. General Information <ul><li>All purchases valued $5,000 or greater must go through the Purchasing Dept </li></ul><ul><li>Purchases valued < $5,000 can be made using a Purchasing Card or Voucher </li></ul><ul><ul><li>Exceptions </li></ul></ul><ul><ul><ul><li>Printing </li></ul></ul></ul><ul><ul><li>Some vendors require a Purchase Order </li></ul></ul><ul><li>Purchasing can require a quote on any purchase under $5,000 </li></ul><ul><li>Purchasing will work with a department on any size purchase </li></ul>
  7. 7. Quotes <ul><li>Purchases between $5,000 - $9,999 </li></ul><ul><li>Result in a purchase order </li></ul><ul><li>Information required from Departments </li></ul><ul><ul><li>Memo with item specifications and vendor contact information </li></ul></ul><ul><ul><ul><li>Memo should be e-mailed to the buyer </li></ul></ul></ul><ul><ul><ul><li>Provide recommended vendor list </li></ul></ul></ul><ul><ul><ul><li>Vendor contact information should include e-mail address </li></ul></ul></ul><ul><li>Time for quote – 1 week </li></ul>
  8. 8. Quotes (cont.) <ul><li>Results are forwarded to dept for their evaluation </li></ul><ul><li>Dept notifies Purchasing of intent to award the quote with a purchase requisition (Note Quote # on P-Req) </li></ul><ul><li>Justification is required, in memo form, if not awarding to the low bidder </li></ul><ul><li>Always award quotes on purchase requisitions through the Purchasing Dept – even if the quote dollar amount is less than $5,000 – do not award on a voucher </li></ul>
  9. 9. Bids <ul><li>For purchases above $10,000 </li></ul><ul><li>Result in a purchase order or a contract </li></ul><ul><li>Information required from Departments </li></ul><ul><ul><li>Memo with item specifications and vendor contact information </li></ul></ul><ul><ul><ul><li>Memo should be e-mailed to the buyer </li></ul></ul></ul><ul><ul><ul><li>Provide recommended vendor list </li></ul></ul></ul><ul><ul><ul><li>Vendor contact information should include e-mail address </li></ul></ul></ul><ul><li>Time for bid – 2 weeks </li></ul>
  10. 10. Bids (cont.) <ul><li>Results are forwarded to dept for their evaluation </li></ul><ul><li>Dept notifies purchasing of intent to award the bid with purchase requisition </li></ul><ul><li>Justification is required in memo form, if not awarding to the low bidder </li></ul><ul><li>Always award bids on purchase requisitions through the Purchasing Office </li></ul>
  11. 11. RFP’S <ul><li>Request for Proposal </li></ul><ul><li>For purchases of any value </li></ul><ul><li>When to use a RFP? </li></ul><ul><ul><li>Seeking solutions to solve a problem </li></ul></ul><ul><ul><li>Seeking unique products or services </li></ul></ul><ul><ul><li>Allow vendors to propose solutions </li></ul></ul><ul><li>Difference between RFP and Bid </li></ul><ul><ul><li>RFP – specifies or describes a problem </li></ul></ul><ul><ul><li>Bid – identifies a specific product </li></ul></ul><ul><li>Results in a purchase order or a contract </li></ul>
  12. 12. RFP’S (cont.) <ul><li>Information required from Departments (e-mail) </li></ul><ul><ul><li>Scope of Work </li></ul></ul><ul><ul><ul><li>Statement of purpose or goals and objectives </li></ul></ul></ul><ul><ul><ul><li>Requirements to be met </li></ul></ul></ul><ul><ul><ul><li>Item specifications </li></ul></ul></ul><ul><ul><ul><li>Purchasing will assist or provide examples </li></ul></ul></ul><ul><ul><li>Provide recommended vendors list (if possible) </li></ul></ul><ul><li>Time for response – 4 weeks </li></ul><ul><li>Results are forwarded to dept for evaluation </li></ul><ul><li>Best solution determines award, not low bid </li></ul><ul><li>Dept notifies Purchasing of intent to award the RFP with memo justifying award decision </li></ul>
  13. 13. Purchase Requisition Campus delivery address (include Stop #) Check if appropriate Line item must correspond with chart field line item
  14. 14. Purchase Requisition Put in complete chart field (by line item) Put in quote or bid number Signature must be on authorization form
  15. 15. Receiving Reports <ul><li>Created for each purchase order </li></ul><ul><ul><li>Except blanket orders </li></ul></ul><ul><li>Purchasing sends the receiving reports to dept with the dept copy of the purchase order </li></ul><ul><li>Identical to purchase order but it has yellow/green sticker </li></ul><ul><li>Sign and date upon receipt of order and forward to Accounts Payable Stop 8356 </li></ul>
  16. 16. State Contracts <ul><li>A source for purchasing </li></ul><ul><ul><li>Not required to use </li></ul></ul><ul><ul><li>Will use if beneficial to the University </li></ul></ul><ul><li>One mandatory contract </li></ul><ul><ul><li>Cell Phone – Alltel, Verizon, Sprint </li></ul></ul>
  17. 17. Sole Source <ul><li>When is an item/service a sole source? </li></ul><ul><ul><li>Product or service is available from only one supplier </li></ul></ul><ul><ul><li>Unique characteristics </li></ul></ul><ul><ul><li>Compatibility with existing equipment or an upgrade to an existing product </li></ul></ul><ul><li>Requires completion of Sole Source Justification Form </li></ul><ul><li>Requires Purchasing Dept approval </li></ul><ul><li>Two types – Purchase and Subcontract </li></ul>
  18. 18. Furniture <ul><li>Office systems furniture - quotes/bids must be obtained from Norby’s and Gaffaney’s </li></ul><ul><ul><li>Do not need to take low quotes/bids – whatever meets your specifications </li></ul></ul><ul><ul><li>Blue prints need to be approved by Facilities prior to purchase and installation </li></ul></ul><ul><li>Purchase of furniture other than office systems follows normal purchasing policies </li></ul>
  19. 19. Surplus Property <ul><li>Contact Facilities to dispose of surplus property </li></ul><ul><li>http:// </li></ul><ul><li>Contact Purchasing for the sale of surplus property </li></ul><ul><ul><li>Items of higher value (airplanes, servers, etc.) </li></ul></ul><ul><ul><li>Expected sale of $500 or more </li></ul></ul><ul><ul><li>Requires approval from State Surplus </li></ul></ul>
  20. 20. Printing Purchases <ul><li>Printing </li></ul><ul><ul><li>All printing must be ordered on a purchase requisition </li></ul></ul><ul><ul><li>All printing requests must be sent to the Purchasing Office if not being produced on campus </li></ul></ul><ul><ul><li>Submit specifications, Purchasing will obtain pricing, no matter what the dollar amount </li></ul></ul>
  21. 21. Logo Item Purchases <ul><li>All trademark purchases must be ordered via a Purchase Order or University Purchasing Card </li></ul><ul><li>Vendor must be licensed </li></ul><ul><li>Licensing Coordinator – Sara Narveson </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>777-2132 </li></ul></ul>
  22. 22. Software Purchases <ul><li>Contact Telecommunications to see if you can purchase the software/licenses through them </li></ul><ul><li>If not possible through Telecom: </li></ul><ul><ul><li>Review software purchasing procedures: </li></ul></ul><ul><ul><li>Submit a Non Standard Software Purchase Form </li></ul></ul><ul><ul><ul><li>If purchase falls under category #2 </li></ul></ul></ul><ul><ul><ul><li>The CIO Office will either approve of the purchase or request General Counsel’s review before a purchase order is issued </li></ul></ul></ul>
  23. 23. Purchasing Card <ul><li>Used for small $ purchases </li></ul><ul><li>Provides convenience </li></ul><ul><li>Faster procurement process </li></ul><ul><li>Saves the University money </li></ul><ul><ul><li>Less paperwork </li></ul></ul><ul><li>Submit “Purchasing Card Application Form” to obtain a card </li></ul><ul><li>Purchasing Card Administrator – Janelle McGarry </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>777-3881 </li></ul></ul>
  24. 24. Signature Authority <ul><li>Who can sign agreements, contracts or quotations for departments? </li></ul><ul><ul><li>All agreements/contracts are required to be reviewed by General Counsel prior to signing </li></ul></ul><ul><ul><li>After legal review, agreements, contracts or quotations can be signed by an individual of the University who has signing authority, typically a Vice President or authorized Purchasing personnel </li></ul></ul>
  25. 25. Miscellaneous <ul><li>Blanket Purchase Orders </li></ul><ul><ul><li>Annual purchases over $10,000 (fuel) </li></ul></ul><ul><li>Leasing </li></ul><ul><li>Maintenance Agreements and Contracts </li></ul><ul><ul><li>Send to Purchasing </li></ul></ul><ul><ul><li>Require General Counsel review and approval </li></ul></ul><ul><li>OfficeMax Solutions </li></ul><ul><ul><li>Secure website for ordering office supplies </li></ul></ul><ul><ul><li>Deeply discounted pricing </li></ul></ul><ul><ul><li>Contact JoAnn Albrecht to obtain a user account </li></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul><ul><ul><ul><li>777-2971 </li></ul></ul></ul>
  26. 26. <ul><li>Questions </li></ul><ul><li>Consult Frequently Asked Questions on the Purchasing website </li></ul><ul><li>Contact Purchasing Office 777-2681 </li></ul>