Purchasing for Extension Policies and Procedures

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Purchasing for ExtensionPolicies and Procedures

• Patty Gropp, C.P.M.
• Washington State University
• Purchasing Services

Pullman, Washington October 28, 2004
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Extension engages people, organizations and
communities to advance knowledge, economic
well-being and quality of life byfostering
inquiry, learning, and the application of
research.
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Purchasing Services conducts and facilitates
procurement in the best interest of the
University, and in accordance with Washingtons
laws that govern procurement and the WSU business
policies and procedures.
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Processes
For Outcomes

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State of Washington law governs procurement
activities of Washington State University.
Revised Code of WashingtonandWashington
Administrative Code
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State of Washington law governs procurement
activities of Washington State University.
Revised Code of WashingtonandWashington
Administrative Code
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Washington law governing procurement activities
is concerned with issues such as

• Ethical conduct of employees
• Access to business opportunities
• Stewardship of State resources
• Public access to records

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RCW 42.52 Ethics in Public Service Act
http//www.wa.gov/ethics/home.html

• This law contains state requirements concerning
• use of state resources
• confidential information
• gifts
• conflicts of interest
• special privileges
• outside compensation

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• State Employees Seeking to Contract with Their
  Own or Another State Agency As a state
  employee, you are not prohibited from receiving
  compensation or anything of economic value under
  a contract or grant outside of your official
  duties for another state agency or with your own
  state agency if you meet the following
  conditions 

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• The contract or grant is legitimate and actually
  performed 
• The performance of the contract or grant is not
  within your official duties, under your
  supervision, or was created by you in an official
  capacity 
• The contract or grant is not performed for nor
  compensated by a person from who you would not be
  able to receive a gift and, 
•  

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• The contract or grant would not require the
  disclosure of confidential or nonpublic
  information.
• The contract or grant must be awarded through an
  open and competitive bidding process and more
  than one bid or grant application must be
  received or, 

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• If only one bid or grant application is received,
  or the process for awarding the contract or
  issuing the grant was not open and competitive,
  seek the advice and approval of the Executive
  Ethics Board to determine whether the contract or
  grant could create a conflict of interest. 

GO TO http//ethics.wa.gov/services.html
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• When seeking the advice and approval of the
  Ethics Board, provide the following information 
  
• A description of your official duties 
• A statement of the work to be performed under the
  contract or a copy of the contract 
• The duration and dollar value of the contract 
• A statement that no state resources will be used
  to fulfill the contract and, 
• A description of how the work will be performed
  without the use of state resources, including
  paid state time. 

Forward this information to Executive
DirectorPO BOX 40149OLYMPIA, WA 98504-0149
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Ethical Conduct Basic Guidelines

• No conflict of interest in transactions
• No financial interest in transactions
• No personal benefit from transaction

YOUR BEST OBJECTIVE DECISION FOR WSU
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E T H I C S W A R N I N G

• Avoid Conflict of Interest in Purchasing
  Transactions

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E T H I C S W A R N I N G

• Avoid Financial Gainfrom Purchasing
  Transactions

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E T H I C S W A R N I N G

• Do Not Purchase Goods or Services from a WSU
  Employee

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E T H I C S W A R N I N G

• Do Not Accept Personal Gifts or Special
  Privileges from Vendors

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WSU Business Policies and Procedures Manual

• BPPM Section 70 http//www.wsu.edu/forms/HTML/
  BPPM/70_Purchasing/70.00_Contents.htm

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Washington State University Purchasing Services
Staff Photo The staff are camera shy!
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• Vickie Arrasmith, Director of Purchasing
• Patty Gropp, Buyer Supervisor
• Buyers
• Pam Berry, Kerry Johnson, John Noble, Yve Wight
• Purchasing Card Program Administrative Manager
• vacant
• Purchasing Card Program Coordinator
• Henri Piper
• Receptionist and Office Assistant
• Luzville Goebel
• http//www.wsu.edu/purchase/
• http

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• OUR GOALS
• adding value to business transactions
• lawful transactions
• quality products and services
• competitive prices
• timely deliveries

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Purchasing ServicesFrench Administration 220
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Authority to CommitUniversity Funds

• W A R N I N G
• Personal Liability

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Administrative Policies Authority to Commit
Funds

• Do not commit the University to a purchase
  without the delegated authority of a p-card
  transaction, K-order, F-Order, blanket order no.
  or special prior approval from a buyer.

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Authority to Commit Funds

• Authority presumes knowledge of policies and
  procedures.
• Policy violations require written explanation.
• Educational memo may be sent to your Dean or
  Chair and the Internal Auditor.

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Authority to Sign Contracts on Behalf of the
University

• W A R N I N G
• Do you have a letter of delegation from
  President Rawlins?

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Spending Thresholds

• 1 to 2500 departments may buy without
  competition, department order, blanket order or
  p-card.
• Without competition direct buy
• 2500 must include tax shipping.

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Spending Thresholds

• 2501 to 42,300, buyers obtain competitive
  quotes or bids from 3 or more sources.
• Buyers issue purchase orders or blanket orders.

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Spending Thresholds

• At 42,300 state law mandates formal sealed bid
  procedures conducted by Purchasing Services.
• Advertising is required.
• Buyers issue purchase orders, blanket orders or
  contracts.

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Sole Source Procurement

• State law allows a few exceptions to the
  requirement for competitive quotations or bid
  process

• Special Features
• Special Conditions
• Special Services or Facilities

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Purchasing Tools

• Department Order

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BPPM 70.07 Department Order Policies and
Procedures
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DEPARTMENT ORDER
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Department Order

• Up to 2500 with tax shipping included
• Printed in department
• Sent to vendor by department

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Purchasing Tools

• Blanket Order

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BPPM 70.19 Blanket Order Policies and
Procedures
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Blanket Orders

• Purchasing Services authorizes a vendor to
  provide a WSU department with goods or services
  for a specified period of time with a Blanket
  Order.
• Vendor gets one copy of the Blanket Order, and
  only verbal orders from department to ship goods
  against that order number.

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Blanket Orders

• One blanket order covers many low value
  purchases.
• Department may call in orders.
• Department may pick up orders.
• No hard copy or encumbrance.
• Invoices require manual coding and authorized
  signature.
• Limited usage.

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Invoices

• The bill for goods or services provided by an
  outside vendor
• Vendors name and address(REMIT TO)
• Addressed to WSU (BILL TO)
• Description of goods and charges
• Payment terms

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INVOICE
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Invoice Voucher

• Departments prepare this form when the vendor
  cannot invoice, for example
• the vendor is a private individual
• personal reimbursement
• Must have original signatures

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INVOICE VOUCHER

add title
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Interdepartmental Requisition and Invoice

• To purchase goods or services from another WSU
  department,
• the internal form to use is the IRI.

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INTERDEPARTMENTAL REQUISITION AND INVOICE
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Purchasing Tools

• Departmental Requisition

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BPPM 70.10 Departmental Requisition Policies
and Procedures
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Departmental Requisition

• Prepared by department
• Tells what is needed, quantity, estimated cost,
  suggested vendor(s)
• May attach quote, specifications, other
  documentation
• Sent to Purchasing for action

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Product Specifications

• Clear and orderly specifications
• Please proof read carefully
• Basic qualities and openness to equals or
  alternates
• Catalog pages or descriptive literature can be
  attached, but are not specifications for a bid.

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Competitive Quotes Bids

• 2500 and over.
• At least three sources solicited.
• 5 to 10 days allowed for response.
• Offers reviewed by end user.
• Buyer approves end users review.
• Buyer issues purchase order.

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BID DOCUMENT
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Review of Bids

• Follow all instructions on Bid Transmittal Sheet
• May query bidder about specifications only
• Never discuss quoted price or negotiate
• Never write on bids may copy
• Return all documents to Purchasing

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BID TRANSMITTAL SHEET
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BPPM 70.10 Purchase OrderPolicies and
Procedures
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PURCHASE ORDER