utah valley university new age procurement
DESCRIPTION
Utah Valley University New Age Procurement. Some Positive Changes have been made. Why?. Update to State Code. Why code was updated Procurement code was old Various high-profile procurement-related issues Update process 2012 Legislative Session 2013 Legislative Session - PowerPoint PPT PresentationTRANSCRIPT
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Utah Valley UniversityNew Age Procurement
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Some Positive Changes have been made.
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Why?
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Why code was updated◦ Procurement code was old◦ Various high-profile procurement-related issues
Update process◦ 2012 Legislative Session◦ 2013 Legislative Session◦ 2014 Legislative Session
Effective Date: May 1, 2013
Update to State Code
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Procurement code declares Board of Regents as Rulemaking Authority
New Regent’s policy delegates this rulemaking authority to each institution
Regent’s Policy
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Currently in Stage 3 Posted on the Policy website New policies
◦ 241, University Procurement◦ 242, Solicitation and Award of Procurement
Contracts◦ 243, Small Purchases◦ 244, Requisitions and Purchase Orders◦ 245, Receiving Goods and Services◦ 246, Surplus Property
New UVU Policies
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Other affected policies◦ 204, Appropriateness of Expenditures
Updating references to procurement policies Updating format Fixing some minor grammatical and syntax errors Not changing expenditure procedures
◦ 421, Property and Equipment Removing Surplus section only Not updating format
New UVU Policies – cont.
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High Profile Procurement Issues
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Split Purchases Unethical behavior
◦ Accepting Gratuities Inflating contracts Bid Rigging
DABC
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Under the Utah Procurement Code, it is illegal to divide, split, parcel, or manipulate a procurement, with the intent of making a larger purchase appear to qualify as a small-dollar purchase or to avoid an established dollar threshold.
Revocation of privileges (P-card, LPC) Disciplinary action Report to AG
Splitting procurements
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All individuals participating in a procurement, including contract administration, must adhere to the ethical requirements outlined in the Utah Procurement Code◦ Gratuities◦ Kickbacks◦ Fairness◦ Impropriety
Ethical Requirements
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Know and obey the letter and spirit of laws, regulations, and policies
Prevent the appearance of unethical behavior
Protect confidential information Avoid conflicts of interest Do not accept gifts, gratuities, or kickbacks
from vendors which may appear to influence purchasing decisions.
UVU Procurement Code of Ethics
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Requisitions should have a good estimated amount◦ No $1.00 requisitions
Change Orders submitted through website form
Additional items will not be added from invoice
Analyzed to ensure compliance with policies, procedures, and applicable contracts
Change Orders
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During a procurement process, no communication with vendors
Vendors must be directed to Purchasing
Communication
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Mishandling money Lax control environment Personal Reimbursements
“Intentional and willful disregard by certain employees for compliance with appropriate practices and policies.”
Timpview High School
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“Any expenditure external to UVU that cannot be purchased with a limited purchase check or purchasing card must be obtained using a requisition through the Purchasing Department” (Policy 204.V.A.1.g).
Sales Tax. Lack of proper controls.
Check Requests – A/P
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Should only be used if the expenditure cannot be feasibly made using an LPC, P-Card, or PO as determined by FaBS and PS.
Include a detailed explanation on the check request.
Check Requests received for reimbursement may be sent to the VP as a violation.◦ See Policy 204.
Questions regarding Check Requests are referred to Scott Wood.
Check Requests – Proper Use
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Protest on I-15 CORE Project◦ Criteria weighting was changed to favor a vendor◦ Evaluation factors included in the RFP were not
adhered to
Settlement: $13 million
UDOT
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Specifications shall not be unduly restrictive or appear to favor one vendor over another
Rating criteria should be clear and concise Rules can’t be changed during the process Analysis on expenditures to ensure fairness
Vendor Favoritism
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Emergency! Emergency!
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Emergency procurements are procurements needed due to an emergency situation◦ Threat to public health or welfare◦ Serious threat to the functioning of the institution◦ Procurements made at Purchasing’s discretion
Urgent procurements are procurements that are needed due to a lack of planning or circumstances beyond the control of the requestor.◦ All procurement policies and procedures must still
be followed.
Emergency vs. Urgent
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Violations
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An unauthorized purchase is a purchase made without following the authorized procurement processes.
An after-the-fact purchase occurs when a University employee places an order without first completing a requisition and receiving a purchase order.
Violations
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Result in duplicate payments to the vendor, for which the department is responsible.
Result in higher costs for goods and services Lead to significant vendor payment issues that
can result in problems for other departments on campus.
Bypass the appropriate approval process. Place the University at financial risk and create
potential personal liability. Create additional, often unnecessary, work for
administrative support staff.
Violations – cont.
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Ways to Avoid Violations: If you have to place an order, create the
requisition right away. Work with the Purchasing Office if you need the order expedited.
You must arrange a payment method BEFORE placing an order. “I didn’t know…,” is not a valid excuse for violating policy.
Violations – cont.
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What to do if a violation occurs: If a violation occurs, fill out all sections of
the Purchase Violation Form. ◦ An explanation of why policy was not followed ◦ Future corrective action
Attach invoice and send for authorizing signatures
Vendor is paid DO NOT enter a requisition.
Violations – cont.
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What changed?
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Thresholds
Old New
Bid Limit◦ $3,000◦ $5,000 (Construction)
Advertised Limit◦ $30,000◦ $50,000 (Construction)
Small-Dollar Purchase Threshold◦ $5,000◦ $15,000 (Construction)
Large-Dollar Purchase Threshold◦ $50,000
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Small-Dollar Purchasing
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Methods:◦ Purchasing Card (P-Card)
Must comply with P-Card usage guidelines Default Limit: $1,000 per purchase
◦ Limited Purchase Check (LPC) Must comply with LPC usage guidelines Limits: $150 and $500
◦ Requisition/Purchase Order Process
Small-Dollar Purchasing
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Default limit: $1,000 Auditing process
◦ New preliminary audit report◦ Clearer deadlines◦ Adjustment to the point system
P-Card Changes
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Ordered using a Stores Requisition◦ Do not mix with regular stores items
Return documentation within five business days
Don’t return unused checks via intra-campus mail
Fewer violations
LPCs
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Requisitions (Req) are not Purchase Orders (PO)◦ Orders cannot be placed with requisitions
PO must be completed and approved before orders are placed
Orders placed before a PO is completed and approved are violations
Requisitions
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Must include all necessary information for purchasing and vendors to understand what is being procured◦ Minimum specifications◦ Product numbers and descriptions◦ Names of individuals and Dates
Memberships, conferences, hotels, presenters, performers
Requisitions
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Reqs over the small-dollar purchase threshold
Performed by the Purchasing Office Quotes gathered from at least two known
vendors Order placed with vendor providing the
lowest price Not required if items are available through a
contract
Request for Quotes (RFQ)
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Large-Dollar Purchasing
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Requisition/Purchase Order Invitation for Bid Process Enhanced Procurement Methods
Large-Dollar Purchase Methods
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Publically advertised through BidSync.com◦ Time frame set by buyer
Minimum ten calendar days Minimum specifications listed in requisition
◦ Not brand specific◦ Not unduly restrictive
Awarded to vendor providing lowest price
Invitation for Bids (IFB)
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Enhanced Procurement
Methods
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Multi-Stage Bid (MSB) Request for Proposals (RFP) Multi-Year Pricing Agreement/Contract
Requires justification◦ Fill out Justification for Enhanced Procurement
Method
Enhanced Procurement Methods
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MSB - New
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Equipment needed to perform specific experiment
Specialized software needed to perform specific function
Specialized services
MSB Examples
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An MSB is used when potential bidders or potential products must be pre-qualified before requesting priced bids. Objective criteria (pass/fail, quantitative) is used to determine if a potential bidder or potential product meets the minimum qualifications or specifications needed.
Multi-Stage Bids (MSB) - New
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Enter a requisition.◦ Indicate MSB in the comments field
Fill out the Justification for Enhanced Procurement Method
If approved, buyer will provide an MSB Statement of Needs and Rating Criteria document
Work with the buyer to complete the document
MSB Process
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Bids performed in two stages◦ Stage 1: Technical/Qualification
Allows vendors to submit technical (no cost) written bids outlining capabilities and qualifications.
May include demonstrations, presentations, trials, etc.
Bids are rated pass/fail based on meeting qualifications and specifications
◦ Stage 2: Cost bids Cost bids are requested from vendors that
successfully pass Stage 1 Awarded to vendor providing lowest price in
Stage 2
MSB Process – cont.
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Technical bids are evaluated by at least three individuals◦ Acceptable, Potentially Acceptable, Unacceptable
Discussions with vendors to clarify technical bids may be held during the evaluation process
Minimum timeframe: Two weeks – Stage 1◦ Timeframe set by buyer
MSB Process – cont.
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RFP - Improved
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In an RFP process, vendors are asked to submit proposals outlining how they would meet or exceed our needs. A committee evaluates the proposals and rates each proposal based on the criteria contained in the RFP. Following the technical evaluation, a cost evaluation is performed. The award is made to the vendor that will provide the best value to the University.
Request for Proposals (RFP)
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Enter a requisition.◦ Indicate RFP in the comments field
Fill out the Justification for Enhanced Procurement Method
If approved, buyer will provide an RFP Statement of Needs and Rating Criteria document
Work with the buyer to complete the document
Timeframe: Four to six weeks◦ Timeframe set by buyer
RFP Process
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Evaluation is a three stage process◦ Stage 1: Technical Evaluation
Proposals are evaluated subjectively by at least three individuals
Each weighted criterion receives a score 1-5 Technical points are combined for each proposal Committee cannot have access to cost information
RFP Process – cont.
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Stage 2: Cost Evaluation◦ The buyer calculates the cost score based on the
formula 40 x (2 – Proposed Price / Lowest Proposed Price)
◦ The buyer may work with the committee to clarify proposed costs
RFP Process – cont.
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Stage 3 – Composite Score◦ The technical and cost scores are combined to
form the composite score Cost is approx. 30% of total composite score
◦ The contract is awarded to the vendor whose proposal receives the highest composite score May require a cost-benefit analysis
RFP Process – cont.
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Request for Information
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The purpose of an RFI is to obtain information, comments, or suggestions from potential bidders before issuing a solicitation. It can also be used to determine whether a solicitation should be issued or to generate interest in a future solicitation. RFIs are not considered a procurement process, but an information gathering process.
Request for Information (RFI)
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Pricing Agreements/Contract
s
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Bid or RFP Completed by the State or WSCA No additional competition needed Purchase directly
State Contracts
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Department◦ Elevator Maintenance◦ Uniforms
Campus-wide◦ Buses
University Contracts
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Special Purchasing Processes
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Computers◦ Computer Shop
Printers◦ HP
Audio/Visual Equipment◦ Contact Media Services
Furniture
Campus Standards
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Software, including apps◦ Software Ordering System
Campus-owned cellphones/aircards Office Supplies
Unique Ordering Requirements
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Prepayments
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Not allowed Exceptions determined by Purchasing
◦ Deposits◦ Progress Payments
Prepayments
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Purchasing Flowchart
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FlowchartThis is how it works regardless of:
Fund sourceSourcing method
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Exceptions
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Sole source procurement may be used when a requirement is only reasonably available from a single supplier◦ Availability◦ Compatibility◦ Transition costs
Require justification◦ New Sole Source Justification Form
Not reasons: price, time
Sole Source Procurement
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Services performed by individuals.◦ No product◦ No companies
Requires Responsible Party signature. Second Level approval required for
payments $1000 or more.
Independent Contractors – A/P
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Deemed “Independent” by FaBS and Human Resources.
Guest Speakers/Performers are always considered independent.
Form can be downloaded from the Finance and Business Services Website.◦ http://uvu.edu/finance/reports-forms-files/
Independent Contractors
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Personal reimbursement program No P-Card or LPC Travel Office
Travel
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New Website
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Procurement Services
Here to Serve You
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