OKLAHOMA STATE UNIVERSITY

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OKLAHOMA STATE UNIVERSITY

• PURCHASING POLICIES AND PROCEDURES
• February 15, 2006

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OSU Purchasing

• The Director of Purchasing is responsible for
  the purchasing activities of all schools of the
  Board of Regents for OSU and the AM Colleges
• Stillwater, Tulsa, CHS, OKM and OKC
• Northeastern Oklahoma AM College
• Langston University
• Connors State College
• Oklahoma Panhandle State University

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Purchasing Department Staff

• Director of Purchasing
• Assistant Director
• Buyers
• P/card
• Small Business Program
• Buyers Assistants

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Purchasing Department Mission

• Purchasing facilitates the procurement of goods
  and services for the OSU System and the AM
  System on a timely and best value basis and
  provides administrative direction within
  established standards.

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Plan Ahead

• Planning for purchases make the process move
  smoothly.
• Allow for signature routing.
• Allow for quotes and bids.
• Allow for quote/bid evaluation.

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Purchasing Department Responsibilities

• Review and process requisitions
• Obtain bids, quotes, and RFPs
• Create purchase orders
• Sign all expenditure contracts and agreements for
  the University
• Advise departments on policy procedure
• Liaison with vendors
• Oversee the Purchasing Card program

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Policies Procedures

• Three levels of governance
• Board of Regents Policies Rules
• State of Oklahoma Statutes
• Oklahoma State University Policies Procedures

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Three Methods of Purchasing

• Small Order 500.00 or less
• Purchase card (credit card) - 5,000 or less
• Requisitions/Purchase Orders over 5,000
• Departments have delegated purchase authority up
  to 5,000/P-Card Only

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PLAN AHEAD

• 
  

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Small Order

• To be used by departments for qualified purchases
  of 500 or less when the purchase card is not
  accepted.
• Processed through Accounting

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Purchase Card

• To be used by departments for qualified purchases
  up to 5,000
• To obtain a purchasing card, an employee must be
  designated by the department head to make credit
  card purchases and attend p/card training
• Deans or VPs signature is required for limits
  over 2,500 and 25,000
• Purchases between 2,500 5,000 may be
  purchased with a p/card or processed on a
  requisition

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Requisition/Purchase Order

• Purchases over 5,000 must be processed on a
  requisition through the Purchasing Department
• Purchasing will review the purchase, and if
  necessary, obtain quotes or bids
• Board policy requires Purchasing to obtain
  quotations for purchases between 5,000 and
  35,000

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Requisition/Purchase Order

• Board policy requires formal sealed, competitive
  bids for purchases over 35,000
• Other than Sponsored Program funded purchases,
  Board approval is required for purchases over
  150,000
• Prior Board approval is required before purchase
  order is issued

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Quotes

• Purchasing may obtain formal quotes for purchases
  between 5,000 and 35,000.
• Quote process can take up to two weeks
• After quotes are opened, they are sent to the
  department for evaluation
• Department should select the lowest and best
  quote that meets specifications
• Evaluation form is returned to Purchasing with
  the departments recommendation
• If Purchasing agrees, an award is made by sending
  a purchase order to the vendor

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Bids

• Purchasing may obtain formal bids for purchases
  over 35,000
• Bid process may take two or more weeks
• These are public bid openings
• After bids are opened, they are sent to the
  department for evaluation
• Department should choose the lowest and best
  bid that meets specifications
• Evaluation form is returned to Purchasing with
  the departments recommendation
• If Purchasing agrees, the award is made by
  sending a purchase order to the vendor

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PLAN AHEAD

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Special ProceduresContracts

• Purchases made from state contracts, OSU
  contracts, or EI contracts do not need to go
  through the quote/bid process
• Any purchase over 5,000 must be processed on a
  requisition, even if purchased from a contract

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Special ProceduresProjects

• Projects are improvements to facilities
• Projects must be routed through Physical Plant
• Bids for projects require more time to complete

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Special ProceduresSole Sources

• Sole source affidavits shall be required when the
  item or service is limited to one provider (sole
  source) or when the item is limited to one brand
  (sole product) which may be available from more
  than one source
• See handout for more details

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Special Procedures

• Insurance and professional services must always
  be processed on a requisition
• Software license/maintenance agreements, or any
  other contract or agreement, must always be
  signed by the Director of Purchasing
• Maintenance/rental/lease agreements may be paid
  with the purchasing card if less than 2500 for
  the fiscal year. If the total is more than 2500
  for the fiscal year, the purchase must be
  processed on a requisition

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Other Special Procedures

• Other purchases may require special procedures
• Printing/Duplicating Carpeting
• Office Supplies Physical Plant
• Employee Moves Equipment Repair
• Used Equipment Vehicle Supplies/Repairs
• Emergency Orders

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EXPORT ISSUES

• Shipping outside the U.S.
• Working with foreign nationals
• Contract restrictions
• Travel outside the U.S.
• Deemed Exports
• Kay Ellis, University Research Office
• 405-744-9995

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PLAN AHEAD

• Obtain appropriate signatures before delivery to
  Purchasing
• Complete all required information
• Attach supporting documentation (specifications,
  suggested vendors, sole source affidavits,
  quotes, etc.)
• Be aware that Accounting may need to route the
  requisition for other necessary signatures.

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Signature Matrix

• Outlines what signatures are needed at what
  levels
• Approved by the Board of Regents
• See handout for details

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Purchasing Website

• www.purchasing.okstate.edu
• Information about Purchasing policies and
  procedures
• P/card
• Contracts
• Announcements
• Board of Regents Schedule
• Training Schedule
• Bid Opportunities

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Controllers Office Newsletter

• Monthly newsletter sent out by the Office of the
  Associate Vice President and Controller
• Has items from Accounting, Bursar, Financial
  Information Management, Payroll, and Purchasing
• Purchasing portion contains notices, reminders,
  Board meetings, training schedules

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Questions/Discussion

• What would you like to know?

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THANK YOU