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WELCOME TO PURCHASING: 101
AN INTRODUCTION TO PURCHASING POLICY & BEST
PRACTICES
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TODAY’S AGENDA
Purchasing MissionElements of a Good QuoteCompetitive SolicitationsCategory Specific Purchase InformationMy USF TipsThe Future of PurchasingAdditional Resources
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OUR MISSION
The mission of Purchasing Services is to
Support the University of South Florida by…Providing serviceReducing priceMitigating risk
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WHO ARE WE?
Purchasing is the primary
contracting authority for the
University.Purchasing is comprised of
Purchasing & Property
Services, reporting to the
Assistant Vice President
of Campus Business Services
Jeff MackAssistant Vice President
Campus Business Services
Tom DiBellaDirector
Purchasing & Property Services
Bill GillAssociate Director
Purchasing & Property Services
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METHODS OF PURCHASEUNENCUMBERED
This includes such things as utility, freight bills,subscriptions, memberships, postage, petty cash,and reimbursements
PCARD
Non Asset Commodities up to $1,000 & Travel
REQUISITION /PURCHASE ORDER
INC
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REQUISITION VS. PURCHASE ORDER
Requisition (REQ)
Request
Prior to services and/or goods being ordered http://usfweb2.usf.edu/usfgc/gc_pp/admsv/gc5-001.htm
Funding source
Purchase Order (PO)
Executed contract with terms & conditions
Dispatched to Vendor by Purchasing
BOTH CONTAIN:
VENDOR INFORMATION, ITEM DESCRIPTION, QUANTITY, DELIVERY INSTRUCTIONS, BILLING INSTRUCTIONS, & DESIRED DELIVERY DATE
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STARTING THE PURCHASING PROCESSLET’S BEGIN!
DEFINE YOUR NEED. WHAT ARE YOU BUYING?
Is there an existing contract? Check the Purchasing website: http://usfweb2.usf.edu/purchasing/
Contact Purchasing: 974-2481 or contact a Purchasing Agent by accessing
listing of Purchasing Agents on the Purchasing website at:
http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf
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SELECTING A VENDOR
WATCH OUT FOR CONFLICT OF INTEREST!!!
Ensure you aren’t selecting a company in which you have apersonal interest.
Florida Statue 112.313(3) and University policy do not allow you to purchase from “a business entity in which you, your spouse or child have a material financial (more than 5% of stock or assets) or managerial interest (officer, director, partner, or proprietor)”
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SELECTING A VENDOR (cont’d)
For additional information:
• Conflict of Interest in sponsored research: http://usfweb2.usf.edu/usfgc/gc_pp/genadm/gc309.htm (this is a policy)
• Conflict of Interest faculty: http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-107.htm (this is a regulation)
• Conflict of Interest in staff: http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-206.htm (this is a regulation)
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SELECTING A VENDOR (cont’d)USF SUPPLIER DIVERSITY PROGRAM
To seek out, identify, and utilize Florida Certified Minority Businesses and the Small Business Administration (SBA) certified (8)A program participants, SBA Certified HUB Zone Firms, and SBA Certified Small Disadvantaged Businesses that provide services, commodities, and construction services which are purchased by the University of South Florida contact:
Desiree Hanson, Supplier Diversity Manager(813) 974-3292email [email protected] Website: http://usfweb2.usf.edu/supplierdiversity
Departments can also access the State of Florida Certified Minority Business Enterprise online Directory and the SBA Dynamic Small Business Search Directory via the Supplier Diversity Site at http://usfweb2.usf.edu/supplierdiversity/department_info.htm
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ELEMENTS OF A GOOD QUOTE
When contacting Vendors:
Identify yourself as the University of South Florida
Record the date, contact information & the person’s name who gave you the information
Ensure you provide detailed information: item description item number quantity
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ELEMENTS OF A GOOD QUOTE (cont’d)
…..AND…… Warranty
Expiration date of price quote
Delivery Time
Vendor payment terms Vendor File Discounts
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VENDOR PAYMENT TERMS
**Contact Purchasing about changing payment terms on a Purchase Order*
The university payment terms are NET 40
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SHIPPING /FREIGHT COSTS
TWO KEY QUESTIONS…
Does the quote include freight?
Who pays the freight costs?
PREPAID – Vendor pays the carrier and adds it to the invoice
COLLECT – USF pays the carrier directly
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FREIGHT TERMS MORE KEY QUESTIONS…
Where does title transfer? Is it Covered by insurance?
FOBOrigin/Shipping PointDestination
Example:Quote says: Destination Prepaid and Allowed
Which Means: Supplier pays freight & title passes at USF’s loading dock.
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VERBAL/WRITTEN PRICE QUOTES$5,000 - $25,000
2-3 QUOTES REQUIRED Comments regarding verbal/written quotes must be placed in
Header Comments in the requisition with the company name, individuals name that provided the quote, and the date price quote was given.
Fax written quotes/back-up to Purchasing (Include requisition # on all quotes)
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WRITTEN PRICE QUOTES$25,000 - $50,000
3 WRITTEN QUOTES REQUIRED
Contains all the elements of a good quote…
Comments regarding verbal/written quotes must be placed in Header Comments in the requisition with the company name, individuals name that provided the quote, and the date price quote was given.
Fax written quotes/back-up to Purchasing (Include requisition # on all quotes)
Minimum of 3 written quotes required Is it covered by a State, University, or other kind of contract?
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TOTAL PURCHASE ABOVE $50,000
University of South Florida Procedure 6c4-4.02030 (1)
“The purchase of commodities or contractual services exceeding $50,000 shall be awarded pursuant to a competitive solicitation..”
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COMPETITIVE SOLICITATION
INVITATION TO BID (ITB)Used for commodities or Services that are well-
definedCan be used for annual contracts resulting in
multiple ordersCreates a contractAwarded on price
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COMPETITIVE SOLICITATION (cont’d)
REQUEST FOR PROPOSAL (RFP)
Used when the need is not specifically definedRFP describes the desired result and the vendors
propose one solutionEvaluation is based on specifically stated criteriaPrice is not the sole consideration
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COMPETITIVE SOLICITATION (cont’d)
INVITATION TO NEGOTIATE (ITN)
Similar to an RFPUsed when the need is not specifically definedPrice is not the sole consideration
ITN describes the desired result and the Vendors may propose more than one solution
University has the ability to negotiate
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“PIGGY-BACKING” … THE USE OF A COMPETITIVE BID CONTRACT
If a Vendor can provide pricing based on a competitively bid contract then it does not require public solicitation…
EXAMPLESState ContractsOther SchoolsOther Governmental entitiesEducational Cooperatives and Consortiums
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DSR EXEMPTION
The Division of Sponsored Research (DSR) has
been granted authority to waive the bidding process
if “it is necessary for the efficient or expeditious
management of a research project.”
USF Policy 0-303 DSR WEBSITE: http://www.research.usf.edu
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“SOLE SOURCE” PURCHASE
A sole source means that the item/service is unique and that the vendor is the sole provider from whom the item/service can be obtained.
The Sole Source Form is available from the purchasing website:
http://usfweb2.usf.edu/purchasing/forms.html
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“SOLE SOURCE” PURCHASE (cont’d)
MUST INCLUDE Vendor Quote Reasonable price justification: i.e. historical pricing, cost
analysis, or comparable price A thorough explanation written in layman’s terms – what is
unique and how it is relevant to the work being done
MUST BE Completed and signed by the Professor/PI Publicly posted and open to protest for seventy-two (72)
hours/three (3) business days
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CATEGORY-SPECIFIC & OTHER PURCHASING
INFORMATION
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CONTRACTUAL SERVICES DEFINITION: Non-USF employee providing a defined service for fees
CONTRACT SPECIFICATIONS “Rates, Dates & Deliverables”
Rate of PaymentDates of ServiceThorough description of services being provided and expected
outcomePO may serve as the contract, or “Contract for Services” template
from Purchasing websiteIndependent Contractor Form for 1099 Consulting & Professional
Services Worksheet required
NOTE: Quote & competitive solicitation dollars levels still apply!!!
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CONTRACTUAL SERVICES (cont’d)
INDEPENDENT CONTRACTOR WORKSHEET
Available from the Purchasing website
Required when hiring an individual or sole proprietor Who is not a foreign national providing the service from their home
country Each time a requisition is initiated Signed by Vendor and Department Chair
Independent Contractor Form ensures that the University is not paying Vendors as independent contractors when the IRS would consider them to be employees
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EQUIPMENT MAINTENANCE AGREEMENTS
THINK: About the value, age, and condition of the equipment The frequency of use and critical nature of the equipment Maintenance Agreement cost vs. number of service calls
CONSIDER: ASSUMED RISK (SELF-INSURED):
No contractual agreements Department pays as the item is fixed
REGULAR MAINTENANCE AGREEMENTS: Departments pays for a maintenance agreement with manufacturer may
include repairs and Preventative Maintenance visits (parts additional)
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FURNITURE
State of Florida contracts available from Purchasing website Excellent quality at highly discounted rates
Special needs chairs need pre-approval by the Environmental Health & Safety Department
Written justification is required for furniture purchase above these guidelines: Office Chair - $600 Sofa - $1,400 Love Seat - $1,200 Club Chair - $800. End Table - $400 Coffee or 48” Conference Table - $600
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FOODCan only be purchased when there is a clear businesspurpose & funding source allows it… STATE & APPROPRIATED FUNDS
The food is used directly in research CONTRACTS & GRANTS
The food is specifically provided for in the terms of a contract, grant, or donation
COLLECTED FEES Fees have been collected for the express purpose of paying for such
items and the advertising documents indicates there will be food provided as part of the negotiations cost
STUDENT GOVERNMENT When approved by the Student Government Finance Office
ALCOHOLIC DRINKS Non-Fee collected events – Foundation funds only
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LEASE OF SPACE
Review Regulations for Lease of Space @ http://usfweb2.usf.edu/usfgc/gc_pp/admsv/gc5-004.htm
Standard Lease Agreement for Office/Warehouse space can be found on the Purchasing website @ http://usfweb2.usf.edu/purchasing/forms.html
Purchasing is the contracting authority for Lease of Space
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MOVING Must fill out an “Approval to Pay Moving Expenses” Form & have Dean, Director, or VP
(for > $15,000) signature
Enter a requisition with complete address & contact information. Requisition will not be processed until Purchasing receives the contract information with Request for Authority to Pay Moving Expenses Form
Guidelines for both commercial and self moves can be found at http://usfweb2.usf.edu/purchasing/rules-redtape/rules2.htm
All forms located on the Purchasing website at http://usfweb2.usf.edu/purchasing/forms.html
Contact Bill Gill @ 974-3340 or via email: [email protected]
Physical Plant handles office and lab moves. Contact Greg Gard @ 974-4983 or via email: [email protected]
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VEHICLESUSF DIRECTIVE – ALTERNATIVE FUEL VEHICLES ONLY
Purchasing has a listing of alternative fuel vehicles by vehicle type and class
Equivalent “gas only” vehicles may also be considered under the following circumstances: DSR grants an exemption No alternative fuel vehicle exists within the vehicle type and class
needed
NOTE: The purchase of used vehicles will also adhere to this directive
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MY USF TIPS Make sure the Description contains everything the Vendor needs to
know
Write the Requisition number on all quotes & back-up materials
When entering requisition, don’t forget to check the “send to vendor” box in header comments so that important comments to vendors will print on your purchase order.
Remember: Some categories route requisitions to different purchasing agents that would be assigned to your department or the commodity or service that you are purchasing. Do not insert the buyer’s name when entering requisitions. If you copy a requisition, you should also remember to delete the buyer’s name.
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MY USF TIPS (cont’d) Select “SPL” when creating requisitions for Contractual Services
Ensure that you designate distribution by amount vs. quantity
OCO & Expense items should be listed on separate line items on the requisition.
The contact name, location, Bldg., and room # must be placed in the
Header Comments of the requisition and the “send to vendor” box must be checked so that this information prints on the PO. Property personnel use this information identified on the po’s to easily locate the OCO items for tagging/decaling purposes.
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CONFIRMATION ORDERSDEFINITION:
When product/services are received and no PO is in place Bad Business Practice
University isn’t covered by terms & conditions Vendor waits for payment
Provide after-the-fact justification by notating in “Header Comments” why a requisition wasn’t created prior to ordering
Insert the following in Header Comments: “Confirming Order – Do Not Duplicate”. Remember to check the “send to vendor” box to ensure that this comment is printed on the PO.
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AMOUNT ONLY PO’SDEFINITION:
Amount only PO’s do not provide detailed purchasing information. The University ‘s use of them will limit Purchasing and Property Services’ ability to negotiate the best possible prices from our Vendors.
NOTE: Purchasing Cards should be used in lieu of Amount Only PO’s whenever feasible.
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AMOUNT ONLY PO’S (cont’d)
Limited to 1 year$1,000 minimum to openNeed the beginning & ending datesNot to exceed $50,000 unless covered by University
or State contract or sole sourceList at least 3 examples of items to be boughtInclude authorized department personnel
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CHANGE ORDERS Change Orders should be submitted to Purchasing by fax @ 974-5362 or scan &
email to the Purchasing Agent that issued the Purchase order
A change request to a PO is only done to change the following: Description Quantity Unit Price Due Date Delivery Locations Fund AccountOR Cancel the PO before it’s received or vouchered
All Change Orders must be signed by the accountable officer.
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THE FUTURE OF PURCHASING
Strategic Sourcing
More Purchasing Classes & Training
Updated Website
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SUSTAINABILITY
USF supports the purchase of products that will minimize any negative environmental impacts on our work.
“Environmentally Preferable Products” have a lesser impact on human health and the environment when compared with competing products
“Recycled Products” are manufactured with waste material that has been recovered or diverted from solid waste
USF personnel will purchase recycled and environmentally preferable products whenever practicable.
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HELPFUL HINT
EARLY PURCHASING INVOLVEMENT SAVES TIME ON LARGE OR COMPLICATED PURCHASES AND/OR CONTRACTS
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ADDITIONAL RESOURCES
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PURCHASING WEBSITEwww.usf.edu/purchasing
WEBSITE INCLUDES…
Complete directory of all Purchasing Staff with their respective responsibilities
Exhaustive listing of the category codes
University and State Contract Listing
Purchasing Directives
Supplier Diversity Program Information
Minority Business Enterprise Vendor Directory
P-Card Information
Property Information
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IMPORTANT CONTACT INFORMATION
PURCHASING Phone #: 974-2481 …. Staff listing: View Contact Listing of Purchasing on the Purchasing Website at:
http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf P-CARD
Contact: Tom Scott Phone #: 974-2481 …. P-CARD Website: http://usfweb2.usf.edu/pcard
SUPPLIER DIVERSITY PROGRAM Contact: Desiree Hanson Phone #: Call: 974-3292 …. Supplier Diversity Website: http://usfweb2.usf.edu/supplierdiversity
PROPERTY Contact: Iris Wiggins Phone #: 974-6025 …. Property Website: http://usfweb2.usf.edu/purchasing/property.html
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PURCHASING: [email protected]
P-CARD: [email protected]
Supplier Diversity Program: [email protected]
Property: [email protected]
QUESTIONS
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THANK YOU FOR COMING!
