PURCHASING WORKSHOP

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PURCHASING WORKSHOP
The Survival Guide

• December 3, 2008
• Hosted by Ben Gamboa, Purchasing Agent

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Presentation Contents

• Purchasing Best Practices
• Creating a PR
• PR versus PO
• Vendor Application
• POs in Lieu of a Contracts
• Estimating Travel Expenses
• Bid Threshold Requirements

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Purchasing Best Practices

• Open Purchase Orders
• Send in Authorized Signature Lists immediately
  no ASL equals no Open PO
• Planned purchases from Staples and Sehi equal
  cost savings for your department
• Consider a Cal-Card instead of a dozen Open POs

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Purchasing Best Practices

• Cal-Cards
• Flexible purchasing, strict documentation
• Application available online
• www.sbccd.org/businessdocs
• Demonstrate responsible purchasing
• Perpetuate responsible purchasing
• Reconcile documents timely thoroughly

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Purchasing Best Practices

• System Templates
• Six templates for common PRs available in PR
  Workflow
• Right-click on desired template
• Select Create Requisition
• Requisition automatically created in New
  Requisitions folder
• Replace asterisked information

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Purchasing Best Practices

• Budget Development
• Avoid the instinct to do like last year
• Build annual strategic plan for purchasing
• Identify obligations, needs, and priorities
• Quote for goods or services over 200
• Plan for 5 growth in costs
• Dont forget object 5830!

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Creating a PR

• Important Fields
• Description
• Types of Goods Services
• Room
• Fax Number
• Item Numbers
• Shipping Handling

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Creating a PR

• Following should match
• Description
• Types of Goods Services
• Object Code

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Creating a PR

• Determining Correct Object Codes
• Make a Wild Guess Cross Fingers
• Call or Email your Purchasing Staff
• Consult your Chart of Accounts
• www.sbccd.org/businessdocs

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Creating a PR

• Want delivery to the correct room?

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Creating a PR

• Want an order faxed?

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Creating a PR

• Item Number column is for the items SKU number,
  not line numbering

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Creating a PR

• Where do I put Shipping Handling?

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PR versus PO

• P.R.
• Purchase Requisition or Requisition
• In FY 2009, starts with 90xxxx
• Entered by department
• Unofficial, internal document
• No authority to purchase granted
• A request to make a purchase

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PR versus PO

• P.O.
• Purchase Order
• In FY 2009, starts with 09xxxx
• Processed by Purchasing
• Official, legally binding document
• Authority to purchase granted
• Sent from Purchasing to Vendor

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PR versus PO

• Authority to Purchase
• Administrative Regulation 6330
• Authority to purchase supplies, materials,
  apparatus, equipment and services is annually
  delegated by Board action to designated District
  officers.
• Who are the District officers?
• Vice Chancellor of Fiscal Services, Business
  Manager, Director of Fiscal Services Board
  Action August 14, 2008

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PR versus PO

• Authority to Purchase cont.
• What if Im not that District officer?
• Any purchase made by an employee without proper
  authorization will be considered an obligation
  and liability of the employee and not the San
  Bernardino Community College District. AR 6330
  emphasis added

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Vendor Application

• New Vendors
• Go to www.sbccd.org/purchasing
• Complete and submit Vendor Application
• Dept can submit on behalf of vendor
• Vendor can submit (Preferred)

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Vendor Application

• Why use a Vendor Application?
• Speeds up processing of your P.R.s
• Less follow-up with info in one place
• Creates a bid list to help lower your costs
• Dream World Creates commodity list!

Excitement Abound!
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POs in Lieu of Contracts

• Contracts Required Perpetual
• Consultants, Contractors, Speakers (5112, 5113,
  5120)
• Insurance (54xx)
• Car, Van, Bus Rentals (5611)
• Leases (5620)
• Maintenance Agreements (563x)

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POs in Lieu of Contracts

• Contracts Required Perpetual
• Repairs Maintenance gt15,000 (564x)
• Legal, Auditing, Accounting Services (57xx)
• Internet Software Licensing (5830)
• Broadcast Performance Rights (5831)
• Construction Contracts (61xx 62xx)

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POs in Lieu of Contracts

• Contracts Required Conditional
• Vendor does not accept our PO
• Services are ongoing in nature
• Services extend beyond one fiscal year
• Services require proof on insurance (COI)
• Services require periodic payment terms

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POs in Lieu of Contracts
NO
YES
NO
YES
NO
YES
NO
YES
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POs in Lieu of Contracts

• What terms are needed on the PO?
• Thorough description of services
• Expected end result at completion
• Beginning and End dates
• Obligations of District and Vendor
• Celebration Time!

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Estimating Travel Expenses

• What information is needed on Conference Purchase
  Requisitions?
• Who Name(s) of attendees
• What Type(s) of expenses
• Why Name or Purpose of Conference
• Where Location, City, State
• When Date(s) of event
• Board Approval Date if out-of state and/or
  expenses total greater than 1,000

The 5-WB
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Estimating Travel Expenses

• What information is needed on Conference Purchase
  Requisitions?

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Estimating Travel Expenses

• Why complete PR prior to travel?
• AR 6330 requires PO for authorization
• Advance paid based on estimation
• Faster reimbursement!

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Bid Thresholds Requirements

• Informal Quotations
• Item or Services gt6,000
• Formal Bids
• Services gt15,000
• Construction gt30,000
• Goods Equipment gt70,000
• Call Ben Immediately!

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Bid Thresholds Requirements

• Information Bid Needs
• Goods and/or services desired
• Purpose of the purchase
• When delivery is desired
• Budget number funded for the purchase
• Any previous research completed
• The bidding process can take weeks or months to
  prepare and a minimum six week advertisement and
  decision process.

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Any Questions?

• The floor is open for questions
• This PowerPoint is available on the Purchasing
  Website TODAY!

Thank you for coming!
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Last Minute Information

• Please leave Evaluations at the door
• Your Purchasing Staff
• Ben Gamboa, Purchasing Agent, x4089
• June Flores, Purchasing Tech, x4088
• http//www.sbccd.org/businessdocs

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