 |
| POLICIES AND PROCEDURES |
| Glossary |
| The following purchasing topics, functions and activities have been arranged in alphabetical order for easy reference. |
1.
Account Numbers Each department is assigned a
fund/organization/account/program (FOAP) (account number or numbers) by the Accounting Office. All requisitions must carry the complete
FOAP of the account to be charged. |
| 2.
Accountability for Moveable Equipment Deans and department heads are responsible for all moveable property in use within their departments and are expected to exercise reasonable care in securing and maintaining such property. Generally moveable equipment is defined as furniture, equipment and instruments. Its sale, transfer or disposal is handled by Procurement
Services. Procedures are available from Procurement Services. |
| 3.
Alcohol All requisitions for the purchase of alcohol for laboratory purposes are closely reviewed. It is the responsibility of each requisitioning department to properly secure and dispense this item. Guidelines and procedures change from time to time. Updated information may be obtained from Procurement
Services. |
| 4.Alcoholic Beverages
University funds shall not be used for the purchase of alcoholic beverages. |
| 5.
Alterations Requests
for alterations or renovations should be submitted to Procurement Services on a purchase requisition accompanied with detailed specifications, drawings and/or blueprints from the Physical Plant when appropriate. To make sure bidders meet the specifications as solicited, departments are requested to review all bid documents prior to Procurement
Services making an award. |
| 6.
Bookstore The university bookstore is located on campus. Purchases by departments may be ordered directly from the university bookstore utilizing the Bookstore requisition (form 64). Offices wishing to avail themselves of these services should submit a properly executed requisition directly to the university bookstore. |
| 7.
Cancellation of Order
Since an accepted purchase order is a contract, the cancellation of such
an order is the breaking of an agreement and legally cannot, and ethically
should not be done without justifiable cause.If a need for cancellation occurs because of changed conditions, it can be canceled only with the agreement of the vendor. The situation will be complicated by any expenditures the vendor may have made in advance of cancellation. If the vendor has incurred these expenses in good faith, some adjustment may be in order for any non-recoverable expenses.Requests for cancellation of the order should be submitted to Procurement Services in writing by an officially designated individual, stating the reason for the request for cancellation and referring to the purchase order number and vendor's name and address. An official notification to the vendor will be sent by Procurement Services via university change order. |
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| 8.
Change Order It is occasionally necessary to make changes in the original order. For example: changes in quantity, specifications, price, substitute products or any number of other corrections that might occur because of changing plans or requirements.The change order to the vendor must be initiated by a representative in Procurement Services. Faculty and staff members are not authorized to change purchase orders. Because change orders alter an existing contract, they can be issued only with the agreement and consent of the vendor. Normally changes can be made without penalty, but since changes do require the vendor's agreement, they may result in additional charges. |
| 9.Check Requests Check requests may be used for the payment for valid purchases of up to $1,000 for item except of the following services only: |
| 10.Confidentiality
Bids and price quotations are given to the university in confidence and
shall not be revealed to any other vendor or any other person prior to
the award and approval by the Director of Procurement Services. |
| 11.
Conflict of Interest
The university as a general rule does not enter into purchasing contracts with students, faculty and staff or members of their immediate families. Acquisitions from a business in which an employee has an interest is prohibited unless full disclosure of the background facts are presented in writing to Procurement Services. Interest is deemed present if the employee and/or his or her spouse or an unemancipated minor child owns ten percent or more of the assets of a business. |
| 12.Damages and Shortages
In cases of damage or shortage of shipment, telephone Procurement Services immediately including the following details: purchase order number, date, vendor, extent of damage or shortage. It also should be submitted via receiving report to the Accounts Payable Office. Regulations require the university to file claims within a specific number of days. Failure to comply with these regulations could result in disapproval of the claim. |
| 13.Demonstration or Sample Material Employees desiring to see samples or have equipment demonstrated should contact Procurement Services for assistance.
University personnel who find the need to contact sales representatives directly are reminded to advise the prospective vendor that no commitments or deliveries may be made until a purchase order has been properly issued by Procurement Services. Vendors are to provide their own insurance coverage for any equipment or material requested for trial or demonstration purposes by Procurement Services. |
| 14.
Emergency ExceptionGenerally emergency order procedures will not be used unless the savings realized by formal procurement practices would be offset by a corresponding or greater loss to the department as a result of the delay. Failure to anticipate a need is not, of itself, considered a bona fide emergency. When an emergency arises which could not reasonably be foreseen and health, welfare or safety requires immediate action and the project is estimated to be in excess of $25,000, Procurement Services may contract for a project without advertising for bids if quotes are obtained from at least two (2) persons or firms known to deal in the work required to be done. Such action should be recorded with the Board of Trustees at its next meeting along with the names of the parties invited to quote on the project. Other emergency repairs may be expedited by entering the requisition electronically in the Banner system and then contacting Procurement Services to request that the order be expedited. |
| 15.
Errors in Bids
or Quotations Vendors are responsible for the accuracy
of their quoted prices. In the event of a discrepancy between a unit price
and its extension, the unit price will govern. Quotations may be amended
or withdrawn by the vendor prior to the quotation opening date and time.
After that time, in the event of an error, quotations may not be amended,
but may be withdrawn if the director of Procurement Services considers the change
to be in the best interest of the university. |
| 16.Fund/Organization/Account/Program
(FOAP) The number which
each department is assigned by the Accounting Office. All requisitions must carry the complete
FOAP to be charged. |
| 17.Fund Sources
All funds deposited with the university, regardless of source, are university
funds and must be handled in accordance with university policy. Although
departments are allocated funds in their budgets for a given period, this
allocation is only an authority to requisition, not to purchase. |
| 18.Gifts and Gratuities
It is the policy of Procurement Services as well as other related
personnel of the university to decline personal gifts or gratuities in
connection with the purchasing function. Procurement Department staff shall
decline personal gifts or gratuities from any current or potential supplier
of goods or services to the university. |
| 19.
Government
Surplus - Federal Surplus Property Acquisition The Indiana Surplus Property Agency in Indianapolis, cooperating with Federal Surplus Property Authorities, is responsible for the distribution of all surplus property to educational institutions in Indiana. Members of the faculty and staff are encouraged to visit the site in Indianapolis and obtain property for research and teaching programs. Departments also are encouraged to submit lists of needed surplus property to
Procurement Services for periodic contact with the Indianapolis Surplus Property Agency. Before visiting the surplus agency, departments are required to obtain a letter of identification from the director of Procurement and review guidelines for obtaining surplus property. |
| 20.
Insurance
Prior to the commencement of any work or services for the university, evidence of appropriate insurance coverage must be submitted by the vendor to
Procurement Services. |
| 21.
Interviewing Sales
Representatives Sales representatives are received and interviewed by
Procurement Services. Please direct all vendors who may contact your department to call
Procurement Services for information concerning university purchases. |
| 22.
Invoice Approval |
| 23.Late Quotations
It is the vendor's responsibility to ensure that its quotations are received in Procurement Services no later than the appointed hour of the quotation opening date as specified on the request for quotation. Late quotations will not be considered and will not be opened.All quotations will be date stamped as proof that they were received prior to the requested date and time. |
| 24.
Leases All forms of lease, lease purchase or rental agreements for the procurement of material or services should be forwarded to the Director of Procurement, who must approve and sign the agreement or obtain the required signature. Departments contemplating entering into a lease or lease purchasing agreement should consult with
Procurement Services to assist in the analysis.Regardless of the time period involved in the agreements, a formal university purchase order will be issued. |
| 25.Maintenance Pool
Procurement Services maintains a fund to cover service calls on many pieces of office equipment. Each department is charged an amount equal to that which would be charged by the vendor for an annual service contract. However, all service calls are paid by
Procurement Services on a per-call basis. Money saved by this self insurance may be used to purchase replacement equipment for participants. |
26.
Minority Suppliers
The university is committed to the principles of Affirmative Action with the objectives of fostering greater participation by minority, disadvantaged and women-owned enterprises in its procurement activity. Assistance and/or information from departments concerning identifying these enterprises is welcomed.To comply with provisions of Indiana code, Procurement
Services has adopted the following statement:
|
| 27.
Mistakes
in Shipping or Invoicing Mistakes in shipping or invoicing should be reported promptly in writing to
Procurement Services referring to the purchase order number and vendor involved. Departments should give sufficient detail concerning the mistake so that proper steps can be taken to correct the error with the vendor. Please include a copy of the packing slip if available. |
| 28.
Moveable Equipment
Inventory Moveable capital equipment owned by or loaned to the university is inventoried. Further information may be obtained by contacting the Office of Inventory Control. |
| 29.
Narcotics
Requisitions for controlled substances (narcotics, barbiturates, tranquilizers, etc.) must have a state controlled substance license number noted. A licensed investigator must submit a completed United States Government order for dangerous drugs with a properly executed requisition. |
| 30.Personal Orders
Because of the tax-exempt status of the university, Procurement Services cannot issue purchase orders for personal purchases. Procurement Department staff members are available to suggest possible sources that may offer a discount. Vendors are under no obligation to offer discounts to individuals, and do so with the understanding that their offer places the university Procurement Department under no obligation to do business with them except within strict business practices. |
| 31.
Petty Cash Petty cash transactions are intended for emergency use only and do not require prior approval of
Procurement Services. |
| 32.
Prepaid Orders
The policy of the university is not to prepay for materials equipment or services
prior to the receipt of those items. Occasionally, certain purchases may
only be obtained after prepayment. Such requests will be reviewed and approved on an individual basis. |
| 33.
Printing The offices of University Publications and Printing Services provide publication services and are responsible for publications and materials distributed on behalf of the university. Printing requirements should be processed through those offices. Any off-campus printing request must be on a requisition and requisition must have signed approval of director of Publications before submitting to Procurement Department. |
| 34.Purchase Order
A purchase order is generated from a requisition that has been entered
into the Banner system by the department or by Procurement Services.
Copies of the purchase order are sent to the vendor and the appropriate
department. Only Procurement Services is authorized to assign a purchase order number to a requisition. |
| 35.
Purchases from Faculty/Staff Official university policy is not to purchase from faculty/staff members. The only exceptions to this policy are when the purchase of an item cannot be obtained elsewhere or it is a one-item, one-time purchase which has obvious advantages to the university to obtain.For any exceptional cases, the procedure for Procurement Services is to request the approval of the Vice President for Business Affairs who will either approve or refer to the president, depending on the circumstances involved. Only upon the receipt of such approval, will Procurement Services make the purchase. |
| 36.
Radioactive Material
Requisitions for hazardous or radioactive material should be so designated
and must have approval of the dean of the School of Science and Engineering
Technology before forwarding to Procurement Services. |
| 37.
Receiving
Supplies and Equipment Central Receiving, as a complete total service, is not established at the university; however, receiving by departments for the university should be managed in the following manner: |
1. Visually inspect the package, carton, crate, etc. for damage. Note shortages or overages on delivery receipt. Also note any visible damage on university and driver's copy. |
| 38. Recycled Materials - Purchase
Whenever possible, the university will purchase recycled materials and is committed to seeking out recycled materials that can be properly utilized at the university. Departments are expected to participate in the use of recycled materials whenever possible. |
| 39Recycled Materials
- Disposal
The university will recycle all materials capable of being recycled. Departments are encouraged to support and participate in this effort. Information concerning this program is available from the Physical Plant Office. |
| 40.
Requests for Proposal (RFP) - New Competitive bids or quotations for supplies and equipment are solicited by Procurement Services and Risk Management. "In the event the requisitioning department has obtained estimates, this information should accompany the requisition." Procurement Services and Risk Management will evaluate the transaction and decide how to proceed. Competitive quotations shall be secured in accordance with the following guidelines: (These guidelines are offered not as a fixed limit, but rather to enable the buyer to make sound and consistent judgments compatible with the goals of the department.)These guidelines apply only to the purchase of supplies and equipment and not to the purchase of professional services, utilities, employee benefits, travel expenses, university insurance and other transactions specifically approved by the Vice President for Business Affairs or designee. |
| 41.
Requests for Proposal (RFP) - General Policies --
EFFECTIVE DATE - January 1, 2000 -- DEFINITION - A Request for Proposal (RFP) is a formal procurement process. Sources outside of the University are requested to submit written proposals relative to the procurement of supplies, equipment or services. The RFP approach is utilized in situations where development of standard bid or quotation specifications is determined to be inappropriate for the procurement. When the RFP method is utilized, it is the intent of the University to consider unique ideas and or alternative approaches to the proposed procurement.
GENERAL POLICES - The Vice President for Business Affairs and Treasurer (VPBA) is responsible for authorizing the implementation of a Request for Proposal approach for a procurement. In the absence of a specific determination by the VPBA, the Director of Procurement and Risk Management (DPRM) will be responsible for preparing, distributing, receiving and awarding procurements made through an RFP. The VPBA may determine that another University official or group of individuals assume some of the responsibilities for administering an RFP procurement. As a minimum, an individual specified by the VPBA will provide draft copies of the RFP documentation to the DPRM for review. The RFP documentation should be submitted to the DPRM enough in advance of the proposed RFP distribution date to allow adequate review and correction of deficiencies. The DPRM will ensure that the RFP complies with all procurement, contracting and insurance requirements which apply to the University. The DPRM will send the RFP and document the receipt of the return of the RFP. The DPRM will further maintain a file of all RFPs issued by the University and take steps necessary to make sure that all information is sealed until the proper time of opening. These files shall also include all information detailing the progress and results of the procurement along with names of committee members and any other pertinent information as it pertains to the RFP. |
| $1-$1,000 | Purchases for items other than office supplies (should use office supply contract when possible) and equipment that totals less than $1,000.00 should be purchased by a check voucher or on credit card when possible. If a purchase order must be issued, submit a requisition to Procurement for processing. |
| $1,001-$10,000 | The effort required to confirm the competitive selection of products and/or sources frequently will exceed any attainable savings. Based on the buyer's knowledge of the product area and the nature of the item, these purchases warrant minimal attention and should be processed by exception. Groups of requisitions, although individually of low value, may be combined advantageously for competitive bidding. |
| $10,001 -$25,000 | Competitive quotations are generally required. However, if a product or supplier has been determined reasonable and advantageous by previous surveys of the market, the order process may be less stringent, yet should be supported by single source quotation, price book verification or verbal quotation. The order should be technically sound, complete and should contain a reference indicating the basis for the selection. |
| More than $25,000 | Competitive quotations mandatory. If this option is neither feasible nor possible, discuss with the Director of Procurement and, if agreed to, the explanation of the circumstance and justification should be included with the requisition as support documents. |
| It will be generally permitted and sometimes required to purchase from a vendor which has negotiated a contract for its products with the university, state or federal government, the Educational and Institutional Cooperative Service or with the State University Purchasing Council. State purchasing policies currently exclude Universities from specific rules and regulations as it pertains to the procurement of items except for public works projects. Public works projects follow specific procedures as outlined in Indiana Code. The above guidelines for request for bids or quotations have been established by Business Affairs, but the procurement decisions are vested with the Director of Procurement and Risk Management by the Vice President for Business Affairs or designee who may choose to waive the guidelines and formalities based upon situations and circumstances for the procurement of all items needed by the University except as they pertain to public works. |
| 42.
Requisition to Purchase Only persons officially designated by the dean or financial manager shall have the authority to enter requisitions into the Banner System. Document and commodity level instructions.Each requisition must contain a complete description of the material or service desired. Care should be taken that each requisition lists only like items. (e.g. request radioactive supplies and furniture on separate requisitions). Where possible, the department should furnish a suggested source of supply, giving the name and address of any new vendors. The department is requested to obtain a copy of the W9 for any new vendor not currently set up in Banner. The W9 should then be forwarded to Procurement Services to create the new vendor.Once the requisition is completed in the Banner System,
the financial manager and alternate for that specific fund/organization combination will receive an email notifying of requisition(s) to approve or disapprove. By sending the email to both the financial manager and alternate(s) ensures prompt action with regards to the requisition. The requisition(s) can be approved by using the Banner System or Self Service. The instructions for approval are noted in the email sent by Procurement Services. No requisition will be transferred to a purchase order
without the approval of the financial manager or alternate. |
| 43.
Returns for Credit
When a vendor has shipped items as specified on a purchase order, it has legally complied with its part of the contract and is under no obligation to accept for credit any return of items delivered as specified. The vendor may require a restocking charge. This charge will be assessed to the requisitioning department.Requests for permission to return supplies or equipment to the vendor for adjustment or credit must be cleared through Procurement Services. Credit memos received by a department should be forwarded immediately to Accounts Payable Office for processing. |
| 44. Return Shipments and Credit Memoranda Should it be necessary to return any items to the vendor for credit or exchange, a copy of all correspondence, showing the purchase order number, should be given to Procurement Services. A return authorization should precede the material being sent to campus Receiving. All materials to be returned should be sent to campus Receiving for return to the vendor. The campus Receiving Department will handle return shipments and keep necessary records. All "credit memoranda" should be sent to Procurement Services. |
| 45.
Sales Agreements
It is in the best interest of the university to refrain from signing vendor sales agreements. The university terms and conditions governing a purchase may be found on the reverse side of the purchase order, or in the case of government funding, is enclosed with the order.If a vendor requires its document to be signed, the director of Procurement will sign for the university, but only after a properly executed purchase order is issued. A copy of the agreement will be retained in Procurement Services file. |
| 46.Sales Tax The university is exempt from state and city sales and use tax. When requested, Procurement Services will furnish a tax-exemption certificate.In addition, other cities and states impose sales taxes for commodities purchased for university projects and delivered within their states. Some of these states have allowed the university an exemption from sales taxes. Tax-exemption forms are on file in Procurement Services and will be furnished with the purchase order when requested. |
| 47.
Selection of Vendors
Vendors are selected for their capability to serve the needs of the university in the most economical and efficient manner possible. Past performance and cooperation are important factors. Vendors must comply with the Equal Opportunity Act (Executive Order 11246 as amended), since it is the policy of the university to promote the full realization of equal employment opportunity through an affirmative action program. Vendors must also comply with other laws and directives as they are issued. |
| 48.
Service Contracts -
Maintenance Pool
Certain items of equipment are covered by vendor service contracts to assure continuing efficient operation. Forms required by service companies will be signed on behalf of the university by the director of Procurement and forwarded to the company with the purchase order. (See Maintenance Pool). |
| 49.Small Orders The university goal is to increase the dollar value and decrease the frequency of small orders through better planning and consolidation. It is requested that departments minimize single item requests and requisitions for less than $500.00. |
| 50.
Sole Source A sole source purchase is one where an item can only be purchased from a single source. This situation makes it impossible to obtain competitive bids. Documentation is required from the requisitioning department to justify why the item should be purchased in preference to another brand of lower cost but similar capabilities. Final responsibility in determining whether an item may be purchased from a sole source rests with Procurement
Services. |
| 51.Special Delivery
Information If the purchase requires special handling and/or
special delivery, this information should be specified on the requisition. |
| 52.Standing Orders
A standing order may be approved for individual departments to cover requirements for items that are utilized regularly. |
| 53. Supplier Lists Procurement Services will maintain a list of all persons and firms who wish to bid on university purchases. Invitations to bid will be solicited from those vendors whom Procurement Services determines will stimulate viable competitive bidding.In addition, Procurement Services will maintain and update a small business and disadvantaged vendor list with the objective of stimulating greater procurement activity within these business groups. |
| 54.Supply Sources Requisitioning departments are encouraged to suggest sources of supply for unusual items. Authority for the final selection of the vendor, however, shall be left to Procurement
Services. |
| 55.Travel Purchase orders will not be issued for travel expenses. The proper form to be used may be obtained from the
Travel Office.
|
| 56.Utilities Requests involving the use or installation of utilities (gas, water, electricity, or steam) will require the services of an engineer and should be directed to the Physical Plant Office. |
| 57.
Vendor Qualification
Performance of vendors doing business with the university for the first
time will be carefully evaluated. In addition, references are checked,
formal interviews conducted when possible and other available sources are
checked. |
updated
2/13/2012 4:34:37 PM
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