Purchasing ServicesPurchasing Servicespresentspresents

Procurement GuidelinesProcurement GuidelinesTraining -2014Training -2014

Can you answer?• Is UT’s purchasing of goods and services centralized or

decentralized?

• What is the University’s threshold for doing a competitive bid process for goods _______ and services ________?

• What does the acronym RFP stand for?

• Is it proper to accept Mud Hens tickets, dinner at Mancy’s or gifts of value from our suppliers?

• Can you purchase lab animals or radioactive materials with your p-card?

• Can you use the p-card to pay for membership fees, dues, subscriptions?

• What is the $$ value in which we encourage you to use the p-card (providing the supplier takes the p-card?)

• What is the most common reason for using a competitive bid waiver form?

• Can anyone sign an agreement/quote/statement of work in the purchase of goods and services?

Our WebsiteOur Website

http://www.utoledo.edu/depts/supplychain/

Lists Staff members, contact information and their respective commodities.

Provides online access to procurement manual Lists current University contracts and information sheetsLists University Policy & Procedures as it relates to the procurement

functions. Provides instruction for suppliers interested in doing business with

the University.Provides information on our supplier diversity program.Has links to finance, receiving, property control and accounts

payable.

What we purchaseWhat we purchaseThe Purchasing Department administers procurement in

accordance with State of Ohio law and University policy.

• Our annual purchases total approximately $380,000,000 per year

and include various equipment and supplies, as well as contracted services which support the University’s academic and research programs, auxiliary departments, UTMC and campus wide activities.

We are a decentralized purchasing community whereby many individuals have ability to spend university monies and must take great care to do so knowledgeably and wisely.

Ethics of PurchasingEthics of Purchasing• ALL University Staff and Faculty must be above

suspicion of unethical behavior when conducting procurement activities.

• Ohio Ethics Law – do not accept gifts, meals, money, entertainment

• Key Standards of conduct:– Avoid Conflicts of interest

– Avoid behaviors that may negatively impact procurement decisions

– Know and obey laws and regulations

– Protect confidential and proprietary information

– Maximize value for each dollar of expenditure

– Conduct business with suppliers in good faith and with equal consideration

Utilize the University issued Procurement Card (P-card) **some exceptions apply – refer to Procurement Guidelines Manual

Procurement Card – Administered and audited by Accounts Payable Utilized anywhere “Master Card/Visa” accepted, for non-

restricted goods and travel. Authorized users and card limits are determined at the

departmental level. ‘Self Service’ Purchasing – decentralized – information on

suppliers by category has been added to the purchasing website

Purchases under $5,000.00Purchases under $5,000.00Excluding ServicesExcluding Services::

P-card Categories of SpendP-card Categories of Spend

Typical Categories where P-card can be used:• Travel (rental car, hotel, airfare, food)• Lab research• Office Supplies• Maintenance & Repair supplies• Promotional Items• Local retail (eateries, building supplies)• Subscriptions, membership dues

• DO NOT PAY SALES TAX, YOU MUST TELL THE SUPPLIER UT IS TAX-EXEMPT

P-card ExclusionsP-card Exclusions

• Hospital Inventory Items• Radioactive materials/items-radiation safety compliance• Medical devices and small equipment• Lab, research animals and human subject interests• Services, construction and renovation projects whereby

onsite work effort requires insurance liability and workers compensation certificate validation, terms and conditions review an detailed specifications to be followed

• Consulting agreements• Service and Maintenance agreements for

software/equipment

• Requires University issued Purchase Order (legal & binding document) generated by Purchasing Department to most responsible supplier.

Note: the supplier selected by the end user department may/may not be the supplier that receives the order. Purchasing may be able to advise on alternate suppliers whereby we receive contract pricing or better delivery options.

• Competitive quotations [either by written, faxed or verbal request] should be obtained either by the end user department or Purchasing.

Note: the Purchasing Department has the authority and responsibility to question specifications, quantities, and all other aspects of a proposed purchase in an effort to obtain the most beneficial purchase for the University. Purchasing reserves the right to seek additional competitive quotations to find the best solution.

Purchases of $5,000 - Purchases of $5,000 - $49,999 $49,999 for for goods and up to goods and up to $74,999 $74,999 for servicesfor services:

Requires formal competitive bidding event and analysis in accordance to policies.

Requires Purchase Order generated by Purchasing Department.

The awarding of these contracts shall be made to the supplier who demonstrates the best overall value to the institution (not always the lowest cost) as determined by an established set of evaluation criteria and scorecarding process.

** Splitting of orders to avoid competitive bidding is a violation of the law.

Purchases of Goods over Purchases of Goods over $50,000 $50,000 and Services over and Services over $75,000 $75,000

Purchases over Purchases over $500,000$500,000

• $500K or $500K and with a term > 5 years

• Requires Competitive Bid Process

• Requires the Board of Trustees approval prior to processing. (exception: if the purchase was already approved as part of the annual budgeting process)

• Lead time is approximately 2 – 3 months and depends on scheduled Board meetings.

Competitive Bid ExceptionsCompetitive Bid Exceptions

There are a few instances whereby a purchase may be made without competitive bidding:

• Maintenance contracts purchases from manufacturer or authorized dealer/supplier of the specific equipment to be serviced.

• Purchases from other public agencies or Group Purchasing Organizations (GPO)

• Purchases as defined by Competitive Bid Waiver process

Competitive Bid WaiversCompetitive Bid Waivers

Competitive Bid Waivers (CBW) should be few and far between. The President has final signature only after Purchasing has validated the departments request for waiver.

3 types of common reasons for waiver request:1. Sole Source

2. Emergent Need

3. Economic Situation

Grant PurchasesGrant PurchasesPurchases utilizing grant or outside sponsored

research funding may have additional restrictions based on Agency guidelines, rules and regulations.

To be compliant, purchases will follow the most restrictive of the University procurement policies or the specific funding agency’s guidelines and regulations.

Group Purchasing OrganizationsGroup Purchasing OrganizationsThe University is a member to many Group Purchasing Organizations

(GPO). GPO’s aggregate their members spend and conduct competitive bidding events on behalf of its members. Our purchasing policy accepts these contracts as meeting our competitive event requirement and are therefore acceptable to use for purchases.

GPO’s the University belongs to:

State of Ohio Contracts Inter University Council

UHC/Novation Amerinet

E&I US Communities

MTEPA/AEPA NJPA

MHEC MiDeals

Legal termsLegal termsThere are many contractual obligations to be worked

through in contract terms and conditions. Care must be taken by all parties to ensure contracts have proper review and approval by the appropriate University officials, Office of Legal Affairs and Purchasing prior to execution.

You are personally liable and will face disciplinary actions if you obligate the University by signing a contract without appropriate authority and review.

T’s & C’s to watch out forT’s & C’s to watch out for• Indemnification – as a public university we can NOT

indemnify another entity• Governing Law – must be state of OHIO, cannot accept

another venue • Paying of attorney’s fees – cannot accept• Freight terms – who pays for shipping at what point• Liability language• Termination clauses – do we have an out if we desire to

end a contract early – do not do ‘evergreen’ terms• Taxes – we are tax exempt

Purchasing Website Navigationhttp://www.utoledo.edu/depts/supplychain/

We exist as a SERVICESERVICE to you!!

Get us INVOLVEDINVOLVED early on;

Ask for our expertiseexpertise in sourcing and contracting.

WE are ready to help YOU!WE are ready to help YOU!

If you have further questions, please contact myself or any of the purchasing staff.

Thank you for becoming a knowledgeable buyer of goods and services for UT!

Jennifer Pastorek

Director of Supply Chain

419-530-8707

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