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University of Nebraska–LincolnPurchasing Department

What You Need to KnowAbout the

Procurement Process

http://purchasing.unl.edu

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Welcome

This session will cover the basics of procurement: • An overview of Purchasing’s role and responsibilities• Effect of new policy changes on departments• Requirements for departments

If you have any questions about the purchasing process, please call us.

Purchasing Department472-2126

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BOARD OF REGENTSPURCHASING POLICY CHANGESEFFECTIVE JULY 1, 2006

Old Limits New Limits

Board approval required $250,000+ $400,000+

Sealed bids required Includes written specifications, formal vendor bids, bidding timelines and deadlines.

$40,000+ $75,000+

Informal bid processby UNL purchasingdepartment

Verbal or written quotations conducted by UNL purchasing required.

$10,000 - $39,999 $25,000 - $74,999

Informal bid process by requesting unit

Verbal or written quotations conducted by requesting unit

$5,000 - $10,000 $5,000 - $24,999

No bids required Department option. Less than $5,000 Less than $5,000

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Board of Regents Policies & Procedures

As a public institution, UNL’s day to day business operations follow the policies and procedures outlined by the Board of Regents. UNL’s purchasing activity must pass numerous audits and reviews, and therefore, must be conducted in an organized and business like manner.

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Purchasing Duties and Responsibilities

Insuring compliance with and enforcing the Board of Regents purchasing policies & procedures

Applying and enforcing standards and specifications

Obtaining maximum value for each dollar of expenditure

Granting all vendors/suppliers fair and equal consideration

Promoting fair, ethical and legal trade/business practices generally following the Uniform Commercial Code

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Types of Procurement

On Campus Stock Purchases

Contract Procurement/Purchases

Competitive Sealed Bids and Request for Proposals (RFP)

Departmental Purchases

Sole Source

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On Campus Stock Purchases

Requisitions for stock purchases may be sent through SAP, campus mail, faxed, or hand carried to the designated UNL Department.

Information Services/Computer Sales – maintains an inventory of computers and computer related items.

Printing and Copy Services – makes name plates, signage and does printing and copy services.

University Bookstore – located in the Nebraska Unions

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Contract Procurement

A contract established by the Purchasing Department for commonly used items or services.

Awarded to lowest responsive bidder and/or negotiated.• Lowest responsive bidder: One who has submitted

a bid or proposal which conforms in all material aspects to the bid request and has the capability to perform all requirements in a manner which will assure reliability and good performance in addition to the offered price.

Prime Vendor Contracts http://purchasing.unl.edu/contractsprime

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Used when estimated cost exceeds $75,000

Solicited for a minimum of 15 days

Publicly opened at a specified opening time and date

Awarded to the lowest responsive bidder

Competitive Sealed Bids/Request for Proposals

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Purchases between $250,000 and $399,999 must be approved by the Vice Chancellor for Business & Finance and reported to the Board of Regents at the next Board meeting.

Before commitment of funds, purchases exceeding $400,000 must be submitted as a formal agenda item to the Board of Regents for their approval at the next scheduled meeting.

Competitive Sealed Bids/Request for Proposals

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Time frames on purchases requiring Board approval:

Agenda/Report Items must be received by the Vice Chancellor for Business & Finance approximately 30 days prior to any scheduled Board Meeting.

Other time factors:• Bid preparation • Solicited for 15 days (minimum)• The bidding/evaluation/selection/ approval

process can take 45-120 days.

Competitive Sealed Bids/Request for Proposals

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The approval process may involve any or all of these levels: Reporting Vice Chancellor Vice Chancellor for Business & Finance Chancellor Vice President for Business & Finance - Central

Administration University Legal Counsel President of the University The Board of Regents

Competitive Sealed Bids/Request for Proposals

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Departmental Purchases

Departmental purchases authorized by the University directly from the vendor

Examples: Procurement Cards ($0 - $4,999) http://

purchasing.unl.edu/purchasingcard

Framework Orders

Informal Competitive Bids

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Informal Competitive Bids by Departments

Strongly suggested for purchases greater than $5,000 and less than $24,999.

Total dollars spent is total of entire order, not per item.

Obtain vendor pricing.

Award is made to the lowest responsive vendor.

Documented and filed.

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Request for Quotation (RFQ)

Request for Quotation and UNL Standard Terms and Conditions are available in your handouts and can be found at http://purchasing.unl.edu or SAPPHIRE

The UNL Standard Terms and Conditions should be included with your Request for Quotation.

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What to Do

Departments are responsible for purchases from $0 - $24,999.

Identify potential vendors/suppliers.

Provide written specifications.

Select a date for suppliers to submit pricing and allow them adequate time to respond.

Request written confirmation of quote.

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What Not to Do Don’t make specifications brand or company specific

(possibly limiting competition). Be receptive to equals/alternates.

Don’t change specifications without notifying all potential suppliers.

Don’t do “Auction Pricing” – i.e., don’t use one vendor’s pricing to leverage additional price concessions from their competitor(s).

No pyramiding – multiple purchases/same item List of Restricted Items - see handouts and http://

purchasing.unl.edu

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Signature Authority

With the new levels of signature authority, campus department heads have authority to sign professional services contracts (excluding Architects, Engineers, Landscape Architects or Land Surveyors) for $1 – $4,999, not exceeding 1 year.

Use a “Work-Made-For-Hire” agreement found at http://purchasing.unl.edu go to “Contracts for External Consultants” or go to SAPPHIRE Business Forms

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Any purchase made from only a single contractor or vendor without competitive bidding.

Single/Sole Source Purchases

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Single/Sole Source Purchases

Single/Sole source purchases up to $24,999 are to be approved by Dean, Director or Department Chair

Keep copies in your files (3 years plus current year and grants for the life of the grant plus 3 years)

Single/Sole Source Justification form can be found at http://purchasing.unl.edu (see Quick Reference Index) and SAPPHIRE’s “Business Forms”

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Requirements in Dealing with Vendors

Plan ahead. Be realistic as to the expected delivery date.

If assistance is needed in locating vendors and developing a procurement plan, please contact the Purchasing Department (472-2126).

Contact more than one vendor (strongly suggest three) and retain pricing, terms, etc., and related contact information in departmental files.

Provide the same information and specifications to all vendors.

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Requirements in Dealing with Vendors

Investigate all costs and aspects of product usage (maintenance, supplies, guarantees, warranty coverages, etc.).

NEVER accept gratuities of any kind from vendors.

Beware of vendor created crisis – “Price goes up after the first of the month,” or unrealistically low prices if we act immediately, etc.

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Requirements in Dealing with Vendors

Beware of solicitations via phone calls, emails...

Maintain all documentation (written, email, etc.)

Give primary consideration to the objectives and policies of our institution.

All information relating to the procurement process is subject to public review.

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Requirements in Dealing with Vendors

Conduct all business transactions in good faith. Obtain prior consent of vendor before using

designs, ideas or drawings.

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When Contacting a Vendor

Get the name of the person taking your order.

Give them relevant contact information (name, delivery address, phone, email, etc.)

Items to be purchased and specifications (catalog #, unit size, quantity, etc.)

Get unit cost of each item, shipping costs, payment terms and expected delivery date.

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When Contacting a Vendor

Are there any special shipping and delivery instructions (regular, 1 day, 2 day, special packing, etc.)?

Does the vendor require a copy of the purchase order? (If yes, please secure the vendor’s mailing address or fax #).

Once purchase order is created, Purchasing will release the order. A purchase order is a binding contract.

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When Contacting a Vendor

Your billing and delivery address:

University of Nebraska-LincolnName of Your DepartmentAttn: Departmental Contact Room # and Name of BuildingCity, State and Zip Code

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Keep in Mind A purchase order must be created for all equipment

exceeding $5,000 to meet State guidelines.

Construction/renovation projects must involve Facilities Management and Planning.

Certificate of Insurance - always forward a copy to Purchasing to include in database – for a list of current vendors go to http://purchasing.unl.edu “Vendor Insurance Look-up Form”

Performance Bond Requirements

Conflict of Interest

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Certificates of Insurance

*Whenever a Contractor, Vendor, Supplier,

Consultant or Engineer comes onto University property we need to be concerned about insurance coverage regardless of the cost of the goods or services being provided.

* At a minimum we require $1,000,000 General Liability Insurance

*The Board of Regents of the University of Nebraska MUST be named an additional insured

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Performance Bonds

Labor and Material performance bonds are required on any construction project exceeding $15,000.

Liens -- cannot be filed on University property, thus the reason for Labor and Material performance bonds.

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Conflicts of Interest

Board Policy states: Section 11:

•Financial or beneficial personal interest forbidden: gifts and rebates prohibited.

Section 12:•Purchase involving University personnel: purchases for personal use are prohibited.

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Section 11.a

No officer or employee of the University involved in an advisory or decision-making capacity relating to any University purchase and no member of his or her other immediate family shall be financially interested, or have any beneficial personal interest, either directly or indirectly, in such a purchase, or in any bidder, contractor, lessor or vendor for such purchase. No such officer or employee or member of his or her family shall receive or accept, either directly or indirectly, by rebate, gift or otherwise, any money or other thing of value whatsoever, or any promise, obligation or contract for future reward or compensation from any person, firm, corporation or other entity which has submitted or intends to submit a bid or proposal in connection with any University purchase or which has otherwise been contacted by the University relating to a proposed University purchase.

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Section 12.a

No article or service shall be purchased from any University faculty or staff member without prior approval by the Principal Business Officer, and any such purchase approved by the Principal Business Officer shall comply fully with the requirements of the conflict of interest provisions of the Nebraska Political Accountability and Disclosure Act.

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Section 12.b

University funds shall not be expended for articles or services which are for personal use of staff or faculty members.

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Special Circumstances

Radioactive and Hazardous Materials

Lab Animals

Firearms and Ammunitions

Vehicles

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Radioactive and Hazardous Materials

You must contact Environmental Health & Safety for purchase or removal of radioactive materials and/or radiation producing devices.

Environmental Health & Safety3630 EC Loop

402-472-4925

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Laboratory Animals

All requests for the purchase of laboratory animals must be sent to the Animal Care Program, 110 Mussehl Hall, or fax to 472-5887, for approval before Purchasing will process the requisition/order.

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Firearms and Ammunitions

Contact Purchasing 472-2126

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Purchase of Vehicles

Transportation Services is responsible for the procurement, licensing, titling, ownership, and assignment of all vehicles owned by the University of Nebraska-Lincoln.

Only certain vehicle types may be purchased by Departments.

For questions concerning motor vehicles contact Transportation Services, 472-2422

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Definitions

Purchase Order: A purchase order is a legal document used by the University which authorizes a supplier to provide a product or service to the institution.

Solicitation: The process of notifying vendors/ suppliers that the University wishes to receive bids or proposals on a set of requirements. Solicitation may include public advertising, the mailing of Sealed Bids or RFQ's, letters inviting offers, and telephone calls to prospective vendors/suppliers.

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Definitions

Offer: Technically, an offer is an "act of one person that gives another person the legal power to create a contract to which both of them are parties." In practice, the bid or proposal submitted by a supplier is an offer. Sealed Bids and Request for Quotations (RFQ’s) solicit offers. Acceptance of these creates a contract.

Lowest Responsive and Responsible Bidder: One who has submitted a bid or proposal which conforms in all material aspects to the bid request and has the capability to perform all requirements in a manner which will assure reliability and good performance in addition to the offered price.

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Call Us

For any questions regarding the purchasing process, please call:

Purchasing Department402-472-2126

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Questions

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University of Nebraska–Lincoln