PROCUREMENT

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PROCUREMENT

• METHODS OF PURCHASING
• AND
• COMMON MISTAKES ERRORS

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METHODS OF PURCHASING

• Check Requests
• Purchasing Card (P-Card)
• Purchase Requests

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CHECK REQUESTS

• General Rule
• A check request is a charge commitment.
  Purchases under check requests are limited.
  Failure to follow procedure results in an
  unauthorized purchase. The person who made the
  purchase or who directed that it be made, may be
  personally liable to pay the cost and settle the
  matter with the supplier.

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CHECK REQUESTSUNLIMITED DOLLAR AMOUNTS

• Postage, postage meters
• Utility payments
• Payments for travel, registration fees
• Freight charges
• Memberships, dues, participation fees associated
  with memberships and subscription charges
  stemming from membership
• For other allowable areas see Procurement
  Procedures Check Request

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CHECK REQUESTSLIMITED TO TOTAL COST LESS THAN
5,000

• Advertising
• Books and subscriptions price support must
  accompany check request
• Mailing lists and mailing services including
  collating, packaging and sorting
• Repairs to equipment less than 5,000. Must
  involve billable labor.
• Laboratory/Chemical Analysis

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CHECK REQUESTSLIMITED TO TOTAL COST LESS THAN
5,000

• Demurrage charges
• Consulting Services
• Personal Services
• See Procurement Procedures Check Requests for
  complete list

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CONSULTING SERVICES

• Definition Services which involve the rendering
  of advice only
• Under 5,000 can handle via check request
• 5,000 and over handle via purchase request
• Always use the standard consulting agreement
  available on administrative forms website
  www.busfin.uga.edu/forms
• Note If a vendor is paid as a consultant, the
  vendor can not bid on any resulting purchase
• Agreements should address fees for services and
  reimbursable expenses separately. Object code
  for services is 75113 and reimbursable expenses
  are 75210

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PERSONAL SERVICES

• Personal Services may include training and
  instructional services, graphic design, etc.
• Use the consulting services agreement until such
  time as a personal services agreement is
  available
• Submit to Procurement with purchase request and
  sole source justification if 5,000 or above

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CHECK REQUESTSCOMMON MISTAKES AND ERRORS

• Purchase Construction Services
• Purchase Consulting Services of 5,000
• Purchase Printing Services
• Purchase Supplies Non-inventoried equipment
• Repairs that do not involve billable labor
• Purchase Software

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CHECK REQUESTSCOMMON MISTAKES AND ERRORS

• Services confusion between unlimited and
  limited to 5,000
• No WCD approval or failure to show WCD approval
  number on the check request when paying monthly
  services (WCD Wireless Communication Device)

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PURCHASING CARD
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PURCHASING CARD

• Known as P-Card
• It is a VISA card issued in an individuals name.
• Obtain one by submitting P-Card Request Form
  available at www.busfin.uga.edu/forms
• Must attend a mandatory training session
• 4,999 is maximum single transaction limit
• Can not purchase inventoried equipment
• Benefits
• Vendors realize faster payment
• End user realizes more timely delivery

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PURCHASING CARDINVENTORIED EQUIPMENT

• Any item which meets the following
• Is basically nonconsumable and nonexpendable in
  nature
• Any item with an estimated usable life expectancy
  of 3 or more years and an item acquisition cost
  of 3,000 or more or,
• Any item or items which the agency feels should
  be included in personal property inventory even
  though it fails to meet the above criteria
• The following are inventoried regardless of cost
  Books procured through the Library Accounts,
  Firearms, Art Objects/Antiques, Vehicles
• The following are inventoried if the unit cost is
  under 3,000 but 500 or over Electronic office
  equipment, computer equipment, A/V equipment and
  photographic equipment

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PURCHASING CARDCOMMON MISTAKES AND ERRORS

• Purchase inventoried equipment especially in
  the 500 arena of computers, audio visual and
  photographic
• Split purchases
• Exceed the cards single transaction limit
• Cardholder not addressing in detail in WORKS
  what was bought, quantity, unit price, and why it
  was purchased

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Purchasing CardCOMMON MISTAKES AND ERRORS -
Continued

• Managers not requiring detailed information in
  WORKS and not reviewing the charge against the
  actual receipt/invoice
• Sales tax being charged
• Purchasing statewide contract items from
  non-statewide contract vendors.
• Improper reconciliation of hard copy monthly
  statements

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Purchasing CardCOMMON MISTAKES AND ERRORS -
Continued

• Memberships being purchased allowable only via
  check request
• Account in WORKS not being changed especially
  important for conference and workshop expenses
  such as catering, food, etc.
• Failure to change object code in WORKS

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Purchasing Card Auditing

• Internal Auditing completes approximately 30
  audits each year
• Currently, in addition to the above audits, they
  perform 10 audits strictly on the p-card function
• Controllers Division will be conducting
  compliance reviews of p-card transactions.

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Purchasing Card Auditing

• Items Reviewed by Internal Auditing
• How is the p-card safeguarded?
• Is the p-card being used by other than the
  cardholder?
• Is adequate department review performed?
• Are hard copy documents being retained?
• Is appropriate account number being charged?

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Purchasing Card Auditing

• Items included in the audit
• Review transactions by vendor and dollar amount
• Review for questionable vendors that may indicate
  unauthorized use
• Meals
• Travel expenses
• Inventoried Equipment
• Intra-University Charges
• Review for adequate documentation both hard
  copy and WORKS

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Purchasing Card Auditing

• Items Included in Audit
• Timely approval in WORKS
• Timely cancellation of cards after employee
  termination or transfer to another department
• Consequences

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PURCHASE REQUESTS
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PURCHASE REQUESTSPARTS OF A PURCHASE REQUEST (1)

• Date the request
• Include account numbers, object codes, and dollar
  amounts.
• Recommended Vendor (at least one)
• Include a delivery date - specify mandatory if a
  certain delivery date is required.
• List items use a noun to describe the actual
  item, include quantity, unit of issue, cost per
  unit, description of item (specifications),
  extended price (Unit cost X qty). Include
  freight charges if known.
• Any priced line item on a quote should be a line
  item on the purchase request

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PURCHASE REQUESTSPARTS OF A PURCHASE REQUEST (2)

• Attachments price support, quotes, drawings.
• Paperwork address where Procurement should send
  the department copy of the order
• Deliver to Address specify if different than
  paperwork address this is where the vendor will
  deliver the service or item or where Central
  Receiving will re-deliver the items.
• Point of contact and phone number

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PURCHASE REQUESTS SPECIFICATIONS

• Main Types
• Fully competitive generic express minimum
  needs without any unjustified bias toward a
  specific brand.
• Brand Name or Equal List one brand name and
  list the required minimum characteristics to
  determine equality.
• Sole Brand see discussion on following pages.
• Sole Source see discussion on following pages.

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PURCHASE REQUESTS SPECIFICATIONS - continued

• Description of need how and where
  items/services will be used.
• Use a noun to describe the item/service
• Physical Requirements Identify the measurable
  physical, quality and functional characteristics
  common to several manufacturers. Include
  types/grades of material, size, weight, shape,
  quality, etc. If not competitively bidding or
  bidding on an as equal basis list catalog
  numbers, part numbers, and manufacturer name.
• Installation Requirements
• Training Requirements
• Service/Warranty Requirements

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PURCHASE REQUESTSSOLE SOURCE/SOLE BRAND

• Only applies to purchases 5,000 or greater which
  are not available on a statewide contract or
  agency contract or available from a mandatory
  source.
• Sole Brand only one brand of equipment will
  meet the requirements of the end user.
• Sole Source A sole brand requirement where the
  equipment/service is only available from one
  source.

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PURCHASE REQUESTS SOLE SOURCE/SOLE BRAND

• Examples of Valid Sole Source/Sole Brand
  Requirements
• Components of a major assembly
• Compatible items to be added to an existing
  system.
• Compatibility with substantial parts inventory
  and/or service capabilities
• Physical design characteristics to satisfy
  aesthetic requirements.
• Matching and inter-changing with preponderance of
  existing equipment.
• One of a kind equipment
• Books, publications, subscriptions, etc.

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PURCHASE REQUESTS ALL SOLE SOURCE REQUIREMENTS

• The following must be received with the purchase
  request in Procurement
• 1. A completed sole source/sole brand form with
  both end user and department head signature
  form available on administrative forms website
• 2. A letter from the original equipment
  manufacturer (OEM) stating they are the sole
  manufacturer and sole seller of the item - In the
  case where the sole source is a reseller, the
  letter from the OEM must state the reseller is
  the only authorized reseller TO the state of
  Georgia

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PURCHASE REQUESTSSOLE SOURCE/SOLE BRAND ITEM
COST 10,000

• Matrix is required
• List minimum specifications down the side
• List evaluated brands across the top
• Show how each brand meets or does not meet the
  minimum requirement specified

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PURCHASE REQUESTSCHEMICAL PURCHASES

• Central Research Stores is the sole agent for
  submitting purchase requests for lab chemicals to
  the Procurement Office - This applies only to
  main Athens campus
• Lab chemicals can not be purchased on indefinite
  blanket orders.

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PURCHASE REQUESTSRADIOACTIVE MATERIALS

• All orders for radioactive materials must be
  placed via purchase request thru the Procurement
  Office
• Direct purchases from vendors are prohibited
• Athens campus radioactive material deliveries
  will be made to Radiation Safety
• Must be classified as an authorized user and
  granted access to an electronic database by
  Radiation Safety which will issue a B number
  (authorization tracking number) for each item
  ordered - This number is unique and not reusable
  
• Include B number on purchase request

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PURCHASE REQUESTSCONSTRUCTION

• Only use purchase request procedures
• Definition Construction involves one or more of
  the building trades, such as electrical,
  mechanical, heating, air conditioning, plumbing,
  carpentry, painting, acoustical or ceramic
  tiling, paving, excavating, grading, metal
  fabrication, landscaping, glass fabrication
  and/or installation, masonry, plastering,
  roofing, well drilling, concreting, building
  demolition, elevator installation, insulating,
  fencing, floor covering, environmental chamber
  construction and installation, greenhouse
  construction, etc.

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PURCHASE REQUESTSEMERGENCIES

• Hard copy fax directly to Contracts and Grants
  or Expenditure Control depending on funding - Can
  also be hand-carried
• Electronic PR- Place a Y in the emergency field
  in the system. Do electronic emergency
  justification
• Always specify the required delivery date
• Always submit an emergency justification letter
• If 5,000 or above and sole source/sole brand
  submit sole source/sole brand form - also matrix
  should be submitted if unit cost 10,000 or above

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PURCHASE REQUESTSINFORMATION TECHNOLOGY

• IT includes computer systems, computer related
  equipment, peripherals, and software
• CESS Approval required for all IT purchases
  totaling 10,000 or more
• CESS approval guidelines are at
  www.eits.uga.edu/cess
• Statewide contracts exist for microcomputer
  purchases
• Obtain current pricing information (less than 30
  days old) from vendor and submit with purchase
  request
• See ordering guidelines for processing purchase
  requests with various vendors at
  www.busfin.uga.edu/procurement and then see the
  vendors listed under Commodities and Contracts
• Dell get quote from Premier page

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PURCHASE REQUEST COMMON MISTAKES AND ERRORS

• All required information not submitted with
  purchase request
• Missing paperwork address
• Missing delivery address
• Missing departmental point of inquiry
• Inadequate specifications- no catalog number
• No sole source/sole brand justification
• No letter from original equipment manufacturer
  certifying sole provider

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PURCHASE REQUEST COMMON MISTAKES AND ERRORS

• Vendor provided is not the statewide contract
  vendor
• No quote from vendor sent to Procurement
  especially needed with Dell and other statewide
  contract computer vendors, and necessary for sole
  source procurements.
• No CESS approval for IT 10,000
• Failure to include B for radioactive materials

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PURCHASE REQUEST COMMON MISTAKES AND ERRORS

• Failure to include size/unit of issue for
  radioactive isotopes and research chemicals
• Radioactive isotopes with short shelf life are
  ordered too far in advance of required actual
  delivery.

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PROCUREMENT IN THE FUTURE

• Researching commercial web based procure to pay
  and E-Procurement systems
• Electronic purchase requests- status tracking on
  line
• Major vendor catalogs available on-line
• Orders submitted electronically to vendors
• Visibility of minority and small business
  suppliers

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QUESTIONS ANSWERS

• Contact Information
• Annette Evans
• Phone [phone]
• Email amevans_at_uga.edu
• www.busfin.uga.edu/procurement