Purchasing Principles

1
Purchasing Principles

• North Georgia
• College State University
• Office of Materials Management

2
Purchasing Methods

• P-card
• Used for small dollar purchases, office
  supplies, items on contract and registration
  fees.
• Paper Check Request
• Used for reimbursements, invoices
  non-employee travel 100.00 or less.
• ePro Requisition
• All other purchases
• Expense Request
• Employee travel reimbursement
• WEX Fuel Card
• Used for fuel purchase (State Owned
  vehicles only)

3
Types of Purchases

• Sole Brand-Normally used to match existing
  equipment.
• Sole Source-No other sources are available. (Must
  be posted for five days on the GPR)
• Open Market-Purchase made in the open market.
• Emergency-Used when possible loss of life or
  property. (Notify Materials Mgt.)
• Intergovernmental- Purchase agreement from one
  state agency to another.
• Mandatory Source-Georgia Correctional Institute
  and Georgia Enterprise.
• Contract-Agency or State Wide Contract.

4
Check Surplus/Excess Property

• This is the first step in the purchasing process.
• Requester should check for Surplus Excess
  Property availability prior to making any
  purchase request.
• There may be used property or equipment available
  at no cost or minimal cost through State Surplus
  channels.
• Contact Materials Management at x1940 for more
  information.

5
Mandatory Sources

• Mandatory sources must be checked prior to
  seeking out any other vendors.
• If the service or item is available through one
  of these sources, the purchase to the mandatory
  vendor is required.
• Exception can only be granted through the Office
  of Materials Management and D.O.A.S. Process
  Improvement.

6
Mandatory Sources

• State Wide Contracts
• Contracts which have been competitively bid
  through the State Purchasing Division (SPD).
• Contract number, NIGP number, expiration
  dates and payment terms/discounts are required on
  the Purchase Order.
• These contract may be viewed on the Georgia
  Procurement Registry located at
• http//ssl.doas.state.ga.us/PRSapp/PR_StateWide_co
  ntract_menu.jsp
• or the Materials Management Web Site located at
• http//www.ngcsu.edu/Bus_Fin/MatMgt/Purchasing/pur
  chasing.htm

7
Mandatory Source

• Agency Contracts
• Contracts that have been competitively bid by
  NGCSU.
• Contract is for one year with the possibility
  of four renewals.
• Contract number, NIGP Number and expiration
  date must be referenced on the request or p-card
  summary.
• These contract can be view at
• http//www.ngcsu.edu/Bus_Fin/MatMgt/Purchasing/pur
  chasing.htm

8
Mandatory Sources

• Georgia Correction Institution (GCI)
• State agencies are required by statute to
  purchase certain products and services from
  Georgia Correctional Industries (GCI) and Georgia
  Enterprises where the products being purchased
  have been certified in writing. In the case of
  GCI, the Commissioner of Corrections must certify
  the products. The State Use Council must certify
  products for Georgia Enterprises. Products and
  Services not certified are not mandatory
  purchases under the Official Code of Georgia.
• Primarily Furniture

9
Purchasing Thresholds

• All purchases 5000.00 and over, not available
  through a mandatory source, must be competitively
  bid.
• Public works projects 10,000 and over
• Requisitions requiring competitive bid should be
  submitted well in advance to allow time for
  preparation of solicitation documents and the bid
  process.

10
Purchase Request

• Submitted through the eProcurement Module.
• Users require set-up prior to use.
• Requires self service login/password.
• Basic instruction available on the MM Website for
  Creation, manager approvals Delegating approval
  authority

11
Create an ePro Request

• Follow Business Process EP.020.500
• Category Code (NIGP) applies to the product or
  service. (Reference contract if applicable)
• Select vendor from database. If the vendor is not
  available, identify vendor in the suggested
  vendor location. (Allow more time for processing)
• If in contact with vendor, request W-9
  information.

12
ePro Request Cont

• Line description should be clear and concise.
• Attach documentation to the ePro Requisition or
  send in the mail to Materials Mgmt. Documents
  that support the purchase includes
• Quotes
• Invoices for contracted items
• Food Justification Form
• Sole Source/Sole Brand Forms
• W-9 Form

13
AdHoc Approval Requirements

• Technology Purchases
• Software-Jim Webb
• Audio/ Visual-Eric Nelken
• Hardware-Steve McLeod
• Physical Plant Items (Installations, electrical,
  construction etc)
• Todd Berman
• Publications/Advertisements
• Kate Maine

14
Account Information

• Chart of accounts located on the N Drive.
• ePro requires all accounting fields.
• (714110 10500 4012000 16300 11000
  153)
• (714110 10500 4012000 16300
  11000 153)
• (714110 10500 4012000 16300
  11000 153)
• (714110 10500 4012000 16300
  11000 153)
• (714110 10500 4012000 16300
  11000 153)
• (714110 10500 4012000 16300
  11000 153)

Expenditure Account Number (Supplies Materials
Office)
Fund Code
Department ID- Indicates routing for Approval
workflow
Program (General Admin/Logistical Svc.)
Class (General Operations-Gen.)
Project-Indicates routing for approval work flow
15
Purchasing Workflow
Denied
Requester Submits ePro Request
Approver Validates Purchase
AdHoc Approval Requester/Approver Generated
Dept ID
Project Number
Start
AdHoc Not Required
Director of Materials Mgt
Work Flow
Budget Error
Budget Check System/MM
Error
Service/ Product Received
Vendor Approval
Payment
Requisition Screening Coding
Accounts Payable
Invoice
Receiving
Report
Vendor Set-up
Required
Vendor
PO Distributed
Materials Mgt Buyer
Red indicates Show stoppers
W-9 Returned
Request for W-9
End
16
ePro Approvers

• Approvers are overall responsible to ensure the
  purchase is valid state business.
• Approvers can view all information through their
  work list.
• Ability to approve or deny with comments.
• Can delegate temporary approval authority.

17
Competitive Bids

• eQuote is the primary tool for solicitations.
• This is an electronic bid system posted the
  Georgia Procurement Registry (GPR)
• Estimated dollar amounts drives the duration of
  posting and number of minority vendors to be
  solicited.
• All bids must come through eQuote. (No paper
  bids)
• Ability to add vendors of choice both registered
  and non-registered.

18
Contracts Agreements

• All contracts and agreements should be review by
  Materials Management.
• Only the President or the Vice President of
  Business Finance can enter into a contract or
  an agreement.
• Contract or agreement require a indemnification
  clause and the ability to cancel.

19
Questions 1

• What is the first step in the procurement?
• Create a ePro Requisition
• Check surplus property
• Create a Purchase Order
• None of the above

20
Question 2

• What is the best method/preferred method to
  purchase small dollar items such as office
  supplies?
• Purchase Order
• WEX Fuel Card
• Visa Purchasing Card
• All of the above

21
Question 3

• Employee Travel Reimbursements should be
  processed through .
• eProcurement
• Check Request
• Visa Purchasing Card
• Self Service Expense Module

22
Question 4

• Sole Source Procurements are only used when the
  vendor is the only source available. Prior
  research should be conducted to ensure no other
  source is available. There is a five day posting
  requirement on the GPR prior to the procurement.
• True
• False

23
Question 5

• All purchases ______ and above must be
  competitively bid unless the product or service
  is exempt or available from a mandatory source?
• 1,000.00
• 2,000.00
• 5,000.00
• 8,000.00

24
Question 6

• Requester/approvers should always check _______
  prior to selecting a source for their purchase?
• State Wide Contract
• Agency Contracts
• Mandatory Sources
• All of the above

25
Question 7

• When creating an ePro Requisition and a vendor is
  not available in the database the requester
  should?
• Obtain a W-9 Form to assist in expediting the
  request
• Allow for more processing time
• Add the vendor in the suggested vendor link
• All of the above

26
Question 8

• A requester is creating an ePro Requisition for
  some book shelves that require installation that
  is not provided by the vendor. The requester
  should?
• Purchase the necessary tools to install yourself
• Contact Auxiliary Services
• Add Todd Berman as an AdHoc Approver to
  coordinate and approve the install.
• Contact Materials Management

27
Question 9

• Approvers should verify ______ before approving
  an ePro Requisition?
• Purchase is for official university business
• The account number is appropriate for the type of
  purchase
• The purchase follows university guidelines
• All of the above

28
Question 10

• The President or Vice President of Business
  Finance is the only authorized persons to enter
  into agreements or contracts?
• True
• False