PURCHASING BASICS Department of Purchasing Revised 7/15/13 - PowerPoint PPT Presentation

1 / 35
About This Presentation
Title:

PURCHASING BASICS Department of Purchasing Revised 7/15/13

Description:

PURCHASING BASICS Department of Purchasing Revised 8/17/11 Federal Debarment Purchasing 35.00 Can be found on the Purchasing Web page at the following address: http ... – PowerPoint PPT presentation

Number of Views:356
Avg rating:3.0/5.0
Slides: 36
Provided by: louisvill2
Learn more at: https://louisville.edu
Category:

less

Transcript and Presenter's Notes

Title: PURCHASING BASICS Department of Purchasing Revised 7/15/13


1
PURCHASING BASICSDepartment of
Purchasing
Revised 8/17/11
2
Purchasing Basics
  • Provide and discuss information about Purchasing
    laws,
  • policies and procedures.
  • Provide a better understanding of the Purchasing
    process.
  • Central Purchasing Staff and Responsibilities can
    be found onthe Purchasing Web Page at
    http//www.louisville.edu/admin/purchasing/cpsta
    ff.htmPurchasing
  • Provide and discuss information about Purchasing
    laws,
  • policies and procedures.
  • Provide a better understanding of the Purchasing
    process.
  • Central Purchasing Staff and Responsibilities can
    be found onthe Purchasing Web Page at
    http//louisville.edu/purchasing/aboutstaff

3
Index
Purchasing Authority Duties and
Responsibilities Accountability Sustainability Vio
lation of Purchasing Policy Procurement
Card On-line Purchasing Procedures Small
Purchasing Authority Requisitions Should
Contain Straight Disbursements Competitive Sealed
Bid Competitive Negotiation Price Contracts
Blanket Orders Receiving Procedures Ethics in
Purchasing Central Stockroom Purchases Office
Supply Purchases Moving Policy Fleet Fueling
Program Recycled Material Procurement Vehicle
RentalPrinting Federal Debarment Purchasing Forms
4
Purchasing Authority (Statutory)
  • KRS 164A.560, allowed public institutions of
    higher education and their affiliated
    corporations to perform the functions of
    acquisition of funds, accounting, purchasing and
    capital construction by regulation.
  • The University operates under KRS 164A.555 -
    164A.840 and the Model Procurement Code KRS
    45A.005 through 45A.470.
  • The Board of Trustees has delegated purchasing
    responsibility to the Director of Purchasing by
    board resolution.
  • The Director, Associate Directors, Assistant
    Directors, Purchasing Manager, and Buyers in
    Purchasing are authorized to sign contracts on
    behalf of the University. Department signs as
    Recommended By Only.
  • Purchase Orders are contracts.

5
Purchasing Duties and Responsibilities
  • Purchase of all equipment, supplies and services
    for the University.
  • Execution of equipment rental and lease
    agreements.
  • Adherence to state statutes and administrative
    regulations.
  • Practice sound purchasing policies resulting in
    economical procurement under fair and competitive
    conditions.
  • Maintain good working relationship with our
    vendors so issues of
  • price, delivery and quality can be resolved.
  • Disposal of Surplus Property
  • Operation of Central Receiving, Stockroom,
    Inventory Control,
  • and Asset Management.

6
Accountability
  • Internal Audit - every 2 or 3 years.
  • External Audit - annually

7
Sustainability
Green Purchasing minimizes negative environmental
effects through the use of environmentally
friendly products. Environmentally Preferable
Purchasing or Green Purchasing (GP) refers to
the procurement of products and services that
have a lesser or reduced effect on human health
and the environment when compared with competing
products or services that serve the same
purpose. This comparison may consider raw
materials acquisition, production, manufacturing,
packaging, distribution, reuse, operation,
maintenance or disposal of the product or service.
To learn more about Purchasing and Sustainability
visit our web page at http//louisville.edu/purcha
sing/sustainability
8
Violation of Purchasing Policy
  • Faculty and staff who violate purchasing policies
    or otherwise act outside
  • of their authority, do so at their own personal
    risk.
  • Purchases made without proper authority may
    become binding upon the
  • University only upon ratification by the
    Director of Purchasing.
  • If the purchase is not ratified by the Director
    Of Purchasing, the
  • obligation remains the personal obligation of
    the person making the
  • purchase.
  • Use of the University tax exempt number is for
    University purchases only.
  • Tax exempt form can be printed off the web,
    completed and mailed or
  • faxed to vendor.
  • http//louisville.edu/purchasing/forms/taxexempt.
    pdf

9
Procurement Card
  • The Procurement Card Program has been
    established as a service to
  • campus departments through PNC Bank and the U of
    L
  • Purchasing Department.
  • Program will allow departments the opportunity to
    use a University
  • Credit Card to purchase certain goods totaling
    less than the departmentalset authorization
    (typically 2500.00).
  • The Procurement Card Presentation can be found
    at
  • http//louisville.edu/procard

10
On-Line Purchasing Procedures
  • PeopleSoft Training Manuals for Purchasing
    Inquiry, E-pro Requisition Entry, E-pro
    Receiving, Change Request, and Return to Vendor
    Data Entry can be accessed on the
  • IT Web page at www.louisville.edu/orion/trai
    ning/classesWork2.htmlfinancials
  • WorkFlow is utilized to process requisitions and
    purchase orders.
  • If requisitions have sufficient funds and pass
    budget checking, they will be routed to the
    department approver, and then to the appropriate
    Buyer/Buyer Assistant.
  • Department Approver, Buyer or Buyer Assistant
    will receive anautomatic Groupwise email
    notification that a requisition is ready for
    approval.

11
On-Line Purchasing Procedures
Approval Options Recycle Deny Approve Departm
ents are responsible for requisition entry
Buyer Assistants are responsible for
requisitions lt4999 Buyers are responsible for
requisitions over 5,000. The comments panel of
the requisition should be used by departments and
Purchasing to provide an audit trail for the
requisition. Send to Vendor information
prints on Purchase Order Show at Receipt
Final destination information and Show at
Voucher for Accounts Payable.
12
On-Line Purchasing Procedures (Continued)
  • Buyer Options for processing requisitions
  • Small Purchase authority
  • Price Contract
  • Quotation
  • Sealed Bids
  • RFP (Request For Proposal)

13
Small Purchase Authority
  • The Requisition is reviewed and updated with any
    necessary changes and approved by the Buyer or
    Buyer Assistant.
  • Buyer or Buyer Assistant recycles, approves or
    denies the requisition.
  • An automatic process (POBUILD) converts the
    requisition to a purchase order.
  • Printed purchase orders will be reviewed by the
    Buyer or BuyerAssistant and mailed, faxed, or
    emailed to the Vendor.

14
Requisitions Should Contain the Following
  • Suggested Vendor(s) and Address
  • Correct Category, Speedtype, and Origin
  • Accurate and complete Deliver To Address
  • Quantity (How many?) What is shipping unit (case,
    each, dz)
  • Unit Cost of Item
  • Description specific enough so that
    Purchasing/Vendor will know exactly
  • what you want and when. Complete descriptions
    and/or detailed
  • specifications in the event bids or quotations
    need to be solicited.
  • Appropriate payment documentation if a check is
    required for a deposit
  • or a prepayment

15
Requisitions Should Contain the Following
  • Additional information or unusual circumstances
    about thepurchase that make it non-routine i.e.
    single source justification,vendor quotation,
    etc.
  • Appropriate use of Unit of Measure, Quantity,
    Item Description
  • Successful budget check
  • Any necessary comments pertinent to the
    requisition
  • Department approval

16
Straight Disbursements
  • A straight disbursement is used when the
    purchase meets the
  • necessary criteria.
  • Straight Disbursement forms as well as a list of
    expenses used on a request for Disbursement Form
    can be printedfrom the Controllers web page at
  • http//louisville.edu/vpf/controller/acctops/accou
    ntspayable/disbursementguidelines04.html

17
Purchase By Competitive Sealed Bid
  • Purchasing 6.00 Can be found on the Purchasing
    Web page at the following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-6.00.html
  • The University is required by law to solicit
    formal Invitations to Bid
  • for commodities and services, including
    construction gt40,000.
  • The buying staff has been given the discretion to
    determine the method of
  • procurement for purchases under 40,000, using
    the value added principle.
  • Buyers can add value to a procurement in the form
    of
  • More competitive price
  • Better quality
  • Shorter delivery time
  • Improved terms and conditions
  • Participation by Minority or woman-owned firms
  • Buyers will initiate the appropriate action such
    as competitive quotes.
  • Continued on next slide

18
Purchase By Competitive Sealed Bid(Continued)
  • Bids have a specific opening time and are
    publicly opened and read.
  • Bids are tabulated and ranked in accordance with
    applicable evaluation criteria.
  • Departments cannot split or parcel purchases over
    a time period for the
  • purpose of evading competitive bidding, per KRS
    45A.100.

19
Purchase By Competitive Negotiation
  • Purchasing 7.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//www.louisville.edu/purchasing/policies/pur
    chasing-7.00.html
  • Purchasing Officer determines in writing that the
    use of competitive sealed bid
  • is not practical. Some of the reasons
  • Inability to write detailed specifications
  • Price is not the main factor in awarding a
    contract
  • Need for vendors expertise to accomplish desired
    outcome
  • Examples Food Services, Bookstore Services,
    Insurance
  • A Request for Proposal is the document used to
    facilitate a competitive negotiation
  • Standard time to allow responses is 30 days
  • No public bid opening, all responses and
    negotiations remain confidential until
  • a contract is awarded.

20
Price Contracts
  • Purchasing 9.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//www.louisville.edu/purchasing/p
    olicies/purchasing-9.00.html
  • Price Contracts are established to obtain
    competitive price and prompt delivery of
  • products used frequently.
  • Awarded as result of competitive bid or
    negotiations
  • Usually established for a period of one year with
    renewal options.
  • It is the policy of Purchasing to purchase from
    price contract vendors when
  • products qualify and prices are consistent with
    specifications supplied by the
  • ordering department.
  • A list of current price contracts can be found on
    the Purchasing Web Page
  • http//louisville.edu/purchasing/cont
    racts

21
Blanket Orders
  • Blanket orders are paid monthly on a continuing
    basis.
  • Example of purchases that blanket orders are used
    for
  • Rental
  • Maintenance of equipment
  • Dry Ice
  • Radio pagers
  • Animal Food
  • Scientific and Laboratory Supplies
  • Department must initiate requisition to encumber
    sufficient funds for current fiscal year.
  • Requisition must state the period of time the
    order is to cover.
  • Blanket orders on general funds will close on
    June 30

22
On-Line Receiving
  • Purchasing 17.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-17.00.html
  • PeopleSoft Training Manuals for Purchasing
    Inquiry, E-pro Requisition
  • Entry, and E-pro Receiving can be accessed on
    the IT Web page at
  • www.louisville.edu/orion/training/classesWork2.ht
    mlfinancials

23
When the Department Receives
  • Receipts should be entered into PeopleSoft
    immediately after receipt of merchandise or
    performance of services.
  • Timely entry of accurate information is essential
    for prompt payment.
  • A Return to Vendor must be entered for any
    discrepancies immediately, and in no case more
    than (5) days after receipt of material.
  • If receiving equipment, contact Inventory Control
    to tag. Have the PO and/or Receipt Number.
    Questions call Helen Carter _at_ 852-2986, Don
    Lomax _at_ 852-6131, or Ken Burton _at_ 852-2943.

24
When Central Receiving Receives
  • Central Receiving personnel will check against
    purchase order and
  • prepare a delivery manifest.
  • A delivery manifest is signed by department when
    material is delivered.
  • Central Receiving personnel will enter data
    on-line in PeopleSoft.
  • Central Receiving personnel are not responsible
    for unpacking, uncrating, assembling or
    installing delivered items.
  • Any questions may be directed to David Jenkins or
    Windell Prewitt at 852-5890.

25
Duplicate Shipments/Receipt of Incorrect or
Defective Goods
  • Purchasing 18.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-18.00.html
  • It is the departments' responsibility to process
    a Return to Vendor in PeopleSoft for any
    duplicate shipments, or incorrect or defective
    goods that are delivered to them.
  • Department will pack material for return, print
    out Return to Vendor form, and notify appropriate
    carrier for pick up of goods.

26
Ethics in Purchasing (Gratuities)
  • Purchasing 4.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-4.00.html
  • Buyers of goods and services for the University
    of Louisville,
  • shall not take, receive or offer to take or
    receive (directly or
  • indirectly) any rebate, percentage of contract,
    money, (or other
  • things of value) as an inducement (or intended
    inducement) from any
  • vendor bidding for University purchase
    contract(s) or otherwise
  • seeking to make sale to the University.
  • The Purchasing Department adheres to the National
    Association of
  • Educational Buyers Code of Ethics.

27
Purchases From Central Stockroom
Purchasing 28.00
Can be found on the Purchasing Web page at the
following address http//louisville.edu/pur
chasing/policies/purchasing-28.00.html
28
Purchase of Office Supplies
  • Purchasing 26.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-26.00.html
  • Staples is the primary office supply vendor for
    the University
  • A Staples Ordering Reference Guide is available.
    This guide contains useful information on how to
    process orders, returns, etc.
  • Three options for order placement
  • Internet Order www.eway.com
  • Phone Order 1-888-238-6329
    PeopleSoft Order PO will be sent
    electronically
  • Staples representative is Charles Beard,
    502-899-2644
  • Currently no purchasing can be done in Staples
    retail stores.

29
Moving Expense Policy
  • Purchasing 32.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-32.00.html
  • University has contract with Allied Van
    Lines/Berger Transfer Storage Inc.
  • Departments create an electronic requisition and
    complete an
  • authorization to move form found at
  • (Employee move) http//louisville.edu/purchasing/
    forms/employee_move_form
  • (Office/Lab move) http//louisville.edu/purchasing
    /forms/office_lab_move_form

30
Gasoline Fleet Fueling Program
  • Purchasing 13.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-13.00.html
  • The University has a contract with Fleet One
  • Program for vehicles owned by the department
  • Fuel access cards are vehicle specific
  • Procedures for Fleet Fuel Programhttp//louisvil
    le.edu/procard/fuelcard/proceduresforfleetfuelprog
    ram.html
  • To obtain a Fuel Card / Pin http//louisville.
    edu/admin/forms/fuelcardform.htm

31
Recycled Material Content Procurement
  • Purchasing 31.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchas
    ing-31.00.html
  • A minimum recycled material content is required
    for specific goods,
  • supplies, equipment, materials and printing.
  • Example paper and office supplies made from
    paper require a
  • minimum of 50 recovered material and 10 post
    consumer waste.
  • The University sends an annual report to the
    General Assembly and the
  • Governor of Kentucky each December showing
    recycled purchases.
  • Vendors are required to complete a Certification
    of Product Content prior to contracting.

32
Vehicle Rental
Purchasing 27.00 Can be found on the Purchasing
Web page at the following address http//louisvil
le.edu/purchasing/policies/purchasing-27.00.html
The University has a current contract with
Enterprise Vehicles rates can be viewed on the
Purchasing Web page at the following
address http//louisville.edu/purchasing/policies
/vehiclerates.pdf The Enterprise account rep can
be reached at phone 502-479-4704.
33
Printing
  • Purchasing 37.00
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/policies/purchasi
    ng-37.00.html
  • Per Kentucky law, all University printing must
    be done in-house (IT Printing) or under
    established contract.
  • First Right of Refusal IT Print decides if
    job will be done in-house or sent to a
    previously approved vendor.
  • All printing contracts must be approved by the
    Governor of the Commonwealth of Kentucky.

34
Federal Debarment
Purchasing 35.00 Can be found on the Purchasing
Web page at the following address http//louisvil
le.edu/purchasing/policies/purchasing-35.00.html
Prior to contract award, a department initiating
a procurement of 40,000 or more, any amount of
which is federally funded, shall ensure that the
successful vendor is not debarred from doing
business with federal agencies.  All new
contracts, sole source purchases, and
departmental agreements gt25,000 require a
sanction check.
35
Purchasing Forms
  • Can be found on the Purchasing Web page at the
    following address
  • http//louisville.edu/purchasing/forms
  • Examples
  • Capital Lease - application for master lease
  • MOVING (Employee Move)
  • MOVING (Office/Lab Form)
  • New Vehicle Request
  • Procurement Card Forms
  • Personal Services Contract Forms / PSC Invoice
    Form
  • Stores Requisition
  • Component Purchases
  • Equipment purchased on procurement card
  • Resident Bidder Status
  • Construction Invoice / Change Order
Write a Comment
User Comments (0)
About PowerShow.com