Procurement Services Purchasing Policy Changes

1. Procurement Services Purchasing Policy Changes Jeff Bromberek and Abraham Reising Academic Affairs Budget Managers Meeting May 28, 2009

2. Purchasing Policies • Procurement Services spent the past year reviewing and rewriting many of the university’s purchasing policies. • Three goals: • ensure purchasing processes are as efficient as possible for budget managers; • promote sound use of financial resources; and • develop appropriate compliance protections.

3. Purchasing Policies Purchasing Purchasing Authority Purchasing Requirements Competitive Bidding Vendor Selection Specific Categories Cellular Telephones* Leasing (PC’s & Other Property) Support and Maintenance Services Vehicle Acquisition * Policy did not change Salvage Salvage of University Owned Equipment ProCard Purchasing Card (ProCard)*

4. Purchasing Authority • Policy Summary • Purchases up to $2,500 • Purchases over $2,500 • Additional approval levels • Delegation of authority • What Changed? • Title changed • Moved text from other policies • Added a few approvals • Took out a lot of repetitive text covered in other policies

5. Purchasing Requirements • Policy Summary • Vendor selection • Cost & value analysis / bid requirements • Contract & backup requirements • Requisition creation **BEFORE ORDER IS PLACED!** • Approvals and purchase orders • Special considerations • What Changed? • Title changed • Included detail on the entire purchasing process • Added backup requirements • Added special situations that may warrant additional review

6. Competitive Bidding • Policy Summary • Goods or services over $25,000 require bids • Written quotes or RFP process • Documentation of bid and vendor selection • Exceptions • What Changed? • Title changed • Expands upon responsibilities when conducting cost analysis • Defines cost as the entire contract • Defines what can be exempted from bidding • Provides sample quotes and RFP documents

7. Vendor Selection • Policy Summary • Preferred vendors • New vendor selection • Quality of products/services • Billing and payment terms • Price (including shipping costs, warranties, additional fees, etc) • Company ownership and stability • Other vendor classifications • New vendors setup • What Changed? • Title changed • Additional information on various vendor types • Additional information on new vendor processes

8. Leasing • Policy Summary • Standard leasing program (desktops, laptops, etc.) • End of lease • Lost, stolen or damaged equipment • Other lease transactions • What Changed? • Leasing and PC Leasing Program/Policy combined • Policy text just cleaned up for clarification and to remove repetitiveness

9. Support & Maintenance Services • Policy Summary • Purchases from preferred vendors • New support or maintenance agreements • Getting support for other purchases • What Changed? • Title changed • Expanded to include specific types of products/services and where to get support (e.g. furniture, copiers, etc)

10. Vehicle Acquisition • Policy Summary • Vehicle purchases must be approved by Procurement Services • All insurance, title, license requirements must be met • Any personal use must be approved by Tax Manager • What Changed? • Clarified Procurement’s approval is required before purchase • Tax Manager must approve exceptions for personal use

11. Salvage of University Owned Equipment • Policy Summary • Types of items that go through the Salvage Program • Donations / grants / capitalized items • Disposal methods • Improper disposal methods • What Changed? • Title Changed • Expanded what can and can’t be salvaged • Brought policy up to date with current practices (e.g. salvage store)