purchasing 101 procurement services abe reising updated 3.26.15
TRANSCRIPT
Agenda
• Purchasing Thresholds & Methods
• Bidding & Methods
• Contracts & Contract Review
• Purchasing Flow-Chart
• Additional Resources
Purchasing Thresholds & Methods
• Under $2,500 – ProCard– Invoice to AP– Voucher Check– Reimbursements
• Over $2,500– Purchase Order required– Quote or estimate required– Purchase Order must be approved before
product/service is ordered
Additional Thresholds• Over $25,000
– Competitive bids required– Bid Documentation Form completed
• Over $50,000– Legal review required, and is initiated by Procurement
• After-the-Fact (ATF) Reporting– Data shared with executive areas– Annual goal of <5%
Special Situations
Additional consideration should be given to:
– Technology • PC/laptops standards• Network based software• +$10,000
– Gift purchases (e.g. gift cards, gifts, other taxable income)
– International payments– Crossing fiscal years– Conflicts of interest– Facilities
Bidding• Required for purchases or contracts over $25,000
– Minimum of 3 quotes required, must submit copies of all quotes– Whole contract, not just phases– Ensure a fair process and no conflicts of interest– Buyers are experts within their categories, let them help!
• Preferred vendors exempt– Full list on website
• Exemptions– Must be requested via Procurement Services– Exemption memo, details exemption reasons
• Bid Compliance Reporting– Monthly reporting on non-bid compliance to executive areas– Annual goal <1%
Conducting a Bid• Acceptable ways to bid a good/service
– Quotes– Estimates– RFP
• Evaluating vendors– Price– Product/service/quality– Terms– Timeframe
When is a Contract Required?
• Services over $1,000 in value– Goods orders require a contract if over $50k or “Special Risk”
• Involves any “Special Risk”
“Special Risk”
• Intellectual property (logos, marks, artwork, symbols, or copyrighted materials)
• Indemnify or insure an outside party;
• Off-campus educational programs or activities (international affiliation agreements/grants, study abroad contracts, and student internship/service-learning contracts)
• Private or confidential information (information protected by FERPA, HIPAA, Gramm-Leach-Bliley)
• Significant risk or liability.
Form Contracts (OGC)• Professional Services Contract (consultants)• Performance Agreement (band, performer)• Master Service Agreement (multiple projects, longer period)• Honorarium Agreement (guest lecturer)• Many more…
https://generalcounsel.depaul.edu
Contract Review• Enter requisition prior to a signing any contract
• Try to use OGC Form Contract to simplify process
• Read the contract, especially if provided by the vendor
• Procurement is here to help determine if a contract requires further review
Contract Review
• Once notified that you are able to sign, all university contracts must be signed on behalf of “DePaul University”
• Only Officers and a limited number of “Specific Designees” authorized by the Officers may sign contracts – (OGC maintains authority list)
• Send a copy of the signed contract to the Procurement buyer
• Requisition will be approved
Procurement Resources
Procurement Services Website
http://procurement.depaul.edu
– Purchasing processes– eProcurement demos– Preferred vendor list– News– Forms– Demon Discounts (personal discount program)
– Salvage Store (used items for personal purchase)
Additional Resources• University Policies and Procedures
http://policies.depaul.edu
• Office of the General Counselhttp://generalcounsel.depaul.edu/Contract Review & Standard Contracts
• Office of Sponsored Programs and Research (OSPR)http://ospr.depaul.edu Grant Assistance