PURCHASING Policies and Procedures

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PURCHASINGPolicies and Procedures
October 16, 2007
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Presenters

• Scott Schreiner, Director of Purchasing
• Vicki Von Harz, Administrative Assistant

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Question

• What do you want to learn at this session?

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Agenda

• Purchasing Department Responsibilities
• General Information
• Quotes
• Bids
• RFPs (Request for Proposal)
• Purchase Requisition Form
• Receiving Reports
• State Contracts
• Sole Sources
• Furniture
• Surplus Property
• Printing Purchases
• Logo Item Purchases
• Software Purchases
• Purchasing Card
• Software Purchases
• Signature Authority
• Miscellaneous Purchasing Items

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Purchasing Department Responsibilities

• Plan, organize, and direct all Purchasing
  activities across campus
• Vendor negotiations
• Formal bids
• Policy and procedure development and
  implementation
• Compliance monitoring
• Service organization

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General Information

• All purchases valued 5,000 or greater must go
  through the Purchasing Dept
• Purchases valued lt 5,000 can be made using a
  Purchasing Card or Voucher
• Exceptions
• Printing
• Logo Items
• Software
• Some vendors require a Purchase Order
• Purchasing can require a quote on any purchase
  under 5,000
• Purchasing will work with a department on any
  size purchase

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Quotes

• Purchases between 5,000 - 9,999
• Result in a purchase order
• Information required from Departments
• Memo with item specifications and vendor contact
  information
• Memo should be e-mailed to the buyer
• Provide recommended vendor list
• Vendor contact information should include e-mail
  address
• Time for quote 1 week

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Quotes (cont.)

• Results are forwarded to dept for their
  evaluation
• Dept notifies Purchasing of intent to award the
  quote with a purchase requisition (Note Quote
  on P-Req)
• Justification is required, in memo form, if not
  awarding to the low bidder
• 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

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Bids

• For purchases above 10,000
• Result in a purchase order or a contract
• Information required from Departments
• Memo with item specifications and vendor contact
  information
• Memo should be e-mailed to the buyer
• Provide recommended vendor list
• Vendor contact information should include e-mail
  address
• Time for bid 2 weeks

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Bids (cont.)

• Results are forwarded to dept for their
  evaluation
• Dept notifies purchasing of intent to award the
  bid with purchase requisition
• Justification is required in memo form, if not
  awarding to the low bidder
• Always award bids on purchase requisitions
  through the Purchasing Office

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RFPS

• Request for Proposal
• For purchases of any value
• When to use a RFP?
• Seeking solutions to solve a problem
• Seeking unique products or services
• Allow vendors to propose solutions
• Difference between RFP and Bid
• RFP specifies or describes a problem
• Bid identifies a specific product
• Result in a purchase order or a contract

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RFPS (cont.)

• Information required from Departments (e-mail)
• Scope of Work
• Statement of purpose or goals and objectives
• Requirements to be met
• Item specifications
• Purchasing will assist or provide examples
• Provide recommended vendors list (if possible)
• Time for response 4 weeks
• Results are forwarded to dept for evaluation
• Best solution determines award, not low bid
• Dept notifies Purchasing of intent to award the
  RFP with memo justifying award decision

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Purchase Requisition
Check if appropriate
Campus delivery address (include Stop )
Line item must correspond with chart field line
item
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Purchase Requisition
Put in complete chart field (by line item)
Signature must be on authorization form
Put in quote or bid number
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Receiving Reports

• Created for each purchase order
• Except blanket orders
• Purchasing sends the receiving reports to dept
  with the dept copy of the purchase order
• Identical to purchase order but it has
  yellow/green sticker
• Sign and date upon receipt of order and forward
  to Accounts Payable Stop 8356

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State Contracts

• A source for purchasing
• Not required to use
• Will use if beneficial to the University
• One mandatory contract
• Cell Phone Alltel, Verizon, Sprint

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Sole Source

• When is an item/service a sole source?
• Product or service is available from only one
  supplier
• Unique characteristics
• Compatibility with existing equipment or an
  upgrade to an existing product
• Requires completion of Sole Source Justification
  Form
• Requires Purchasing Dept approval
• Two types Purchase and Subcontract

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Furniture

• Office systems furniture - quotes/bids must be
  obtained from Norbys and Gaffaneys
• Do not need to take low quotes/bids whatever
  meets your specifications
• Blue prints need to be approved by Facilities
  prior to purchase and installation
• Purchase of furniture other than office systems
  follows normal purchasing policies

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Surplus Property

• Contact Facilities to dispose of surplus property
• http//www.facilities.und.nodak.edu/surplus/Surplu
  s.htm
• Contact Purchasing for the sale of surplus
  property
• Items of higher value (airplanes, servers, etc.)
• Expected sale of 500 or more
• Requires approval from State Surplus

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Printing Purchases

• Printing
• All printing must be ordered on a purchase
  requisition
• All printing requests must be sent to the
  Purchasing Office if not being produced on campus
• Submit specifications, Purchasing will obtain
  pricing, no matter what the dollar amount

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Logo Item Purchases

• All trademark purchases must be ordered via a
  Purchase Order
• Vendor must be licensed
• Licensing Coordinator - Lani Caraway
• lanicaraway_at_mail.und.nodak.edu
• 777-2132
• Upcoming U2 Session
• Licensed Logo Vendors Trademark Usage
• November 7, 2007

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Software Purchases

• Contact Telecommunications to see if you can
  purchase the software/licenses through them
• If not possible through Telecom
• The software/license must be purchased on a
  purchase requisition
• Submit a purchase requisition along with any
  terms and conditions/licensing agreements
• The terms and conditions/licensing agreements
  will be sent to General Counsel for review before
  a purchase order is issued

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Purchasing Card

• Used for small purchases
• Provides convenience
• Faster procurement process
• Saves the University money
• Less paperwork
• Submit Purchasing Card Application Form to
  obtain a card
• Purchasing Card Administrator Janelle McGarry
• janellemcgarry_at_mail.und.nodak.edu
• 777-3881

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Signature Authority

• Who can sign agreements, contracts or quotations
  for departments?
• All agreements/contracts are required to be
  reviewed by General Counsel prior to signing
• 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

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Miscellaneous

• Blanket Purchase Orders
• Annual purchases over 10,000 (fuel)
• Leasing
• Maintenance Agreements and Contracts
• Send to Purchasing
• Require General Counsel review and approval
• OfficeMax Solutions
• Secure website for ordering office supplies
• Deeply discounted pricing
• Contact JoAnn Albrecht to obtain a user account
• joannalbrecht_at_mail.und.nodak.edu
• 777-2971

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• Questions

• Consult Frequently Asked Questions on the
  Purchasing website
• Contact Purchasing Office 777-2681