PURCHASING PRESENTATIONMike Thueson

Jake Mecham

The Four P’s!

• Purpose• Policy

• Practices• Procedure

Purpose – Why We Exist• Protect Tithing Funds - Stewardship of BYUI• Degree of Separation

• Management/financial authorization controls• Scriptural law of witnesses

• Mission Statement - web link• Business Professionalism

• Negotiation experience and skill• Analysis• Communications/Information sharing• Vendor relationship management

• Leverage/network with the Church, CES, and other purchasing organizations

• Provide established contracts, pricing, and relationships for many of our campus needs

Policy (University’s Procurement Policy)

• Purchases from $0 to $2,500 can be purchased with a purchasing card, no quote is required but comparison pricing is suggested, they can also be sent to the purchasing office in the form of a Purchase Requisition (PR).

• Purchases from $2,500 - $5,000 require a PR, Purchase Order (PO), and 2 verbal quotes.

• All purchases over $5,000 require a PR, PO, and two written quotes.

• Contracts $25,000+ & Purchases (POs) $90,000+: must be signed by an executive officer (definitions of contract & PO on web)

Don’t disclose information pertaining to pricing, budgets, or other vendors

The Purchasing Office is authorized to make commitments over $2,500• Exceptions• Agency• “University policy stipulates that unauthorized purchase commitments are the responsibility of the

individual making the purchase and not the responsibility of BYU-Idaho.”

Best Practices for Procurement• Organized Processes (RFI, RFQ, RFP)• Competition• Fairness• Legal/Ethical• Integrity- policy on information shared• Long-term vendor relationship management• Best Business Practice - Procedure

Procedure – Simple Purchase

• Works for consumer buying, not appropriate for institutional buying

• Expensive• Actually more time• InefficientSubmission to the vendor, enslave ourselvesLack of revelatory process

Need

Solution

Implementa

tion

Procedure – Best Case Scenario

• Control of process, on our terms• The “studying of it out” allows for the Revelatory Process

Plan

Identify Need

Team Formatio

n

Develop

Study & Analysis

Evaluation

Decision/Vendor

Negotiation

Execute

Acquisition

Implementation

Sustain

Acceptance/Post Evaluati

on

Long-term Vendor

Management

Procedure – Best Case Scenario Flow

Identify Need

Team Formation

Study & Analysis

Evaluation

Decision/Vendor Negotiation Acquisition

Implementation

Acceptance/ Post Evaluation

Long-term Vendor

Management

Plan• Identify Need

• Project Charter, Environmental Impact, Strategic Value, Requirements, Specifications, Expectations, SOW

• Purchasing Involvement• Potential Single Source• If a need to contact a vendor arises, information sharing/disclosure• Determine the right procurement strategy

• Team Formation• Project/ Purchase Authorization

Benefits: maintain BYU-I control and power of information, avoid enslavement, allow for divine guidance

Develop• Study & Analysis

• Develop additional information• Plan marketplace involvement (RFI, RFP, Vendor presentations, visits, etc.)Leverage/network with the Church, CES, and other purchasing organizations

• Evaluation• Reach out to marketplace• Solutions from marketplace (Proposal responses)• Technical & business evaluation – price, terms, mitigate risk, ethical/legal

• Decision/Vendor negotiation• Control of information is critical• Develop implementation plan & schedule

Warnings: pilot, demo, webex, evaluation, commitment • Disclosure timing – enslavement, getting hooked on vendor’s terms

• What not to say/what not to do – (group discussion)

Benefits: flush out issues, concerns, problems, etc. • Better informed; mitigate risk, cost, possibility of failure; our terms vs. vendors terms• Allows for revelation, inspiration, & guidance

Execute• Acquisition

• Buy – Issue PO/Contract

• Implementation• Implementation plan & schedule• Delivery• Work kick-off

Benefits: • Planned/Smoother implementation• Resourced – committed resources• Better experience for ALL• Communication & understanding is enhanced between vendor & stakeholders• Faster deployment & go-live date• More efficient• Strengthen vendor relations/develop a partnership• Maintain control

Sustain• Acceptance/Post Evaluation

• How did it go?• How did we all do?• What can we learn?Did the purchase meet our requirements, specifications,

expectations, SOW?• Is the need satisfied? Did we get what we needed?

• Long-term Vendor Management• Strengthen & maintain vendor relations• Maintain integrity & the good name of BYU-I and the Church

Benefits: BYU-I receives a solution to meet our needs, a vendor partnership for future opportunities

Thanks!

Please allow us to help with your purchasing needs!

• Purchasing web link, how to find us on the web:• https://www.byui.edu/financial-services/purchasing• Home page search • Employee page:

• Employee Finances > Financial Services > Purchasing• Employee Services ( click “more”) > Purchasing & Disbursements

• I-BUY (e-procurement marketplace)• https://eprocurement.esmsolutions.com/?me=byu-id

• Questions/Discussion?