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Faculty of MedicineAdministrative Forum

Purchasing Services (Financial Services)

Programs and Processes

Presented by:

Mr. Paul Dugal, C.P.P – Manager

Mrs. Ellowyn Nadeau, P.Eng – Assistant Manager

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Overview

Key Contacts Services Programs Purchasing Thresholds Competitive Bidding Requisition to Purchase – tips Contracts ICA vs PO Shipping/Receiving – Bannatyne Questions

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Purchasing Services – Key Contacts

Customer Service (Judith/Kristine 474-8348) Track Requisitions, payments to suppliers

Sr. Purchasing Consultant, Research (Jurgens) High dollar purchases, consults on specifications

Sr. Purchasing Consultant, Contracts (Linda) ICAs, Systems Contracts

Sr. Buyer, Bannatyne (Candy) All non-CFI related scientific purchases

CFI Buyer, Fort Garry (John) All CFI, Shipping, Customs concerns

Assistant Manager (Ellowyn) Manager (Paul)

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Website Information

Purchasing Services website:http://www.umanitoba.ca/admin/financial_services/purch/index.shtml

Programs and Processes Contact information Bid/Quote/RFP Opportunities listed

This presentation will be posted on the Faculty of Medicine website

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How Purchasing Services Can Help You

Consulting & Advisory Services Purchasing programs, suppliers, specs

Competitive Bidding (Public Tendering) RFIs, RFQs, RFPs

Purchase Orders Terms & Conditions, Warranty issues, Delivery

Contracts ICAs, Secondments, Design Contracts, Negotiated

Agreements, Service Agreements Communication with Suppliers Education & Training Taxes, Duties, Customs

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Systems Contracts

Tendered contract, terms/pricing negotiated University wide (realizes greater savings) Overall “Best Value” Best pricing/Service Levels Contractual obligation to buy Order direct from supplier for < $1,000 Invoice direct to Supplier Payment Services

(A/P) FOAP charged when invoice paid Sierra/Fed Ex Courier issue

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Preferred Agreements

Similar to Systems Contracts except no obligation to buy

Order direct from supplier Pricing negotiated Set-up to monitor usage Once value established, may be tendered

and a Systems Contract established

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VISA PCard

Program managed by Supplier Payment Services (Dianne Schilling)

Added convenience when ordering direct from suppliers for goods/services <$1,000 not otherwise available through Purchasing Agreements such as Systems Contracts

Limit of $999.00 per transaction per supplier per day (Cdn)

Memberships, subscriptions, registrations and other low dollar goods/services

Purchase negotiated by cardholder as required

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Standing Orders

Set up like a Purchase Order (PO) May be competitively tendered like a PO Outlines the value of goods or services

required over a fiscal year Purchasing helps negotiate the best price Value committed to FOAP at the time of setup Initial value can be an estimate that is revised

over the course of the year with a change order

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Programs

Petty Cash Bookstore Computers on Campus Requisition for Payment Form (in development)

Where supplier does not accept VISA or over VISA limit

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Value of Purchase <$1,000

Systems Contracts/Preferred Agreements Visa Pcard Standing Orders Petty Cash reimbursement Bookstore Requisition to Purchase if no other means

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Value of Purchase - $1,000 to $5,000

Requisition to Purchase May be an asset – recorded & tracked Describe good/service in detail Attach any information about suggested

supplier If quotes already solicited, attach ALL to Req

Buyer will either reconfirm or requote Decision based on buyer experience, fair

competition and information provided

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Value of Purchase – $5,000 to $100,000

Requisition to Purchase Describe good/service in detail Attach requirements/specifications Request a quotation process be initiated Identify any known suppliers Brand or equivalent may be specified May be Nationally advertised

Single Source Justification Technical justifications

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Value of Purchase >$100,000

Requisition to Purchase Legislated by Agreement on Internal Trade

(AIT) Describe in detail Attach technical specifications

Identify mandatory and optional requirements Request a formal RFP process Identify known suppliers Nationally advertised Formal sealed bids

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Competitive Bidding

Request for Information (RFI) Used for high value purchase (>$100,000) Early in process (Grant application stage) May be “Subject to Funding” Identifies suppliers that have the ability to

meet your needs Identifies Expression of Interest (REI) Provides budget pricing NO PO or CONTRACT AWARDED

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Competitive Bidding

Request for Quotation (RFQ) Usually used for less than $25,000 Standard specifications In stock equipment Lowest technically compliant bidder

recommended Usually PO issued with standard terms &

conditions

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Competitive Bidding

Request for Proposal (RFP) Used for higher dollar value >$25,000 Identifies research objectives with mandatory

and optional requirements Can be linked to a RFI May have a design/customization component PO/ICA or negotiated contract covers terms &

conditions of award Evaluation criteria part of RFP document “Overall Best Value” not just lowest bid

recommended

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Purchase Order

PO is generated from a Requisition to Purchase (legal document)

U of M has standard terms and conditions associated with the PO Developed by legal If countered by supplier

Negotiations, legal involvement, risk management

Suppliers not paid unless have PO # POs over $1,000 need “Receiving” to record

asset

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Requisition to Purchase - Tips

More information the better – fair competition State a realistic delivery date Print clearly or type information in on the

Requisition If CFI related – state CFI line # on body of

Requisition If there is any kind of affiliation or

collaboration agreement between the U of M and the supplier, note it on Requisition

If the researcher holds an adjunct position, note it on Requisition

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Requisition to Purchase – Tips

More information the better Example:

Description given: Clinical Chemistry Lab Charges Should be:

Clinical chemistry lab charges for XYZ analysis as part of Dr. A’s research grant.

Dr. A holds an appointment with (supplier) and has a direct relationship with the lab completing the analysis.

Attached is information from Dr. A’s grant regarding these charges.

Template/checklist in development (website)

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Requisition to Purchase - Tips

More information the better – fair competition State a realistic delivery date Print clearly or type information in on the

Requisition If CFI related – state CFI line # on body of

Requisition If there is any kind of affiliation or

collaboration agreement between the U of M and the supplier, note it on Requisition

If the researcher holds an adjunct position, note it on Requisition

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Contracts

Any agreement between two entities can be considered a contract

ONLY the VP (Administration) can sign a contact on behalf of the University

Purchasing has numerous standard contracts: The ICA (Independent Contractor Agreement) Purchase Order CCDC, DCA, RAIC (construction)

Purchasing uses hundreds of contracts Service agreements, extended warranties, license

agreements, etc

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ICA vs PO

A PO is used for tangible “Goods” Typically “off the shelf” equipment Minimal customization No intellectual property, patent or copyright

issues

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ICA vs PO

An ICA is usually used for a “Service” Consulting work Specialized design for custom equipment

Entire order would fall under the ICA The design as well as the actual piece of

equipment The ICA would replace the standard terms and

conditions of the PO Patent, Intellectual Property, copyright concerns

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ICA (cont’d)

U of M standard ICA was drafted by legal counsel Changes to the ICA must be reviewed by the legal

counsel A CAR form is used in lieu of a Requisition to

Purchase when processing an ICA ICA and schedules are available on the Purchasing

website Department sends to contractor for signature

Can send to Purchasing for review prior Purchasing will process (send for VP signature) Special PO and ICA term document for <$5,000 (in

development)

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Shipping/Receiving - Bannatyne

One loading dock for all of Bannatyne (Brodie Centre)

Currently two employees Manage all deliveries –Systems Contracts,

specimens, small appliances Manage all returns not handled by supplier Protocols for shipping goods

Hazardous goods identified Packaging required Proper labeling required

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Questions?

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Thank you for your time and the opportunity to present our information!

Please feel free to call any one of the team for help anytime.