Office of Purchasing and Contracts

1. Office of Purchasing and Contracts Procurement Outreach Training Level II – Orders Up To $50,000 Module A

2. Research Funded Purchasing This power point series is designed to walk the campus user through some of the steps and guidelines for making purchases using RF funds. This module provides an overview of RF procurements up to $50,000. As with all of our training modules, if this overview doesn’t address your question or concern, please call the Office of Purchasing and Contracts at 437-4579.

3. Procurements Up To $50,000 in Value As with all procurements, the process starts with the intention to buy, a requisition that indicates available funding and a scope of work or specifications. However, the procurement regulations to be followed are dictated by the dollar amount of the procurement. In addition, consideration is given to the frequency of the procurement, and the gross amount paid to a particular vendor over time. The Research Foundation for the State University of New York provides the following guidance; $0 to $20,000 – Reasonableness of price as determined by the Purchasing Agent $20,000.01 to $50,000 – Solicitation of a minimum of three verbal or written quotes.

4. What’s “reasonable”? • “Reasonableness of price” is a common standard in procurement. The guidelines used to determine this include the fair market value of a commodity, any educational discount available, comparisons to similar projects for research institutions, and the unique qualifications of a consultant or vendor. This review may take some investigating, and any information that you may have to assist in this determination is always welcome with your requisition.

5. Solicitation • A solicitation can be as simple as a verbal request for prices to a full blown Request for Proposals. The dollar value and scope of work will guide this determination. Please refer to Module IV for a full explanation of how to conduct these varied solicitations.

6. Research Foundation Regulations Thresholds X indicates that the regulation is required. The Purchasing Office reserves the right to require reasonableness at any level using any means necessary.

7. Regulations Guidance: Debarment and Suspension: Applies to all agreements in excess of $25,000 and requires applicants to certify to their best knowledge and belief that: neither they, their principals, nor their researchers are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal agency have, within a 3-year period preceding an application been convicted or had a civil judgment rendered against them are presently indicted or criminally or civilly charged by a government entity with commission of any of the applicable offenses have within a 3-year period preceding the application, had one or more public transactions terminated for cause or default Equipment Screening: Federal guidelines require the establishment of procedures that assure the avoidance of “purchasing unnecessary items". Prior to the procurement of items in excess of $25,000, a search will be conducted of campus inventory by the Property Control Officer. The project director is responsible to ensure that purchases are appropriate and necessary to the conduct of their project. The use of this form facilitates this effort. Export Controls: As part of National Security, the Federal government limits to and the export of certain technologies deemed to have a dual purpose. The regulations are governed by the Commerce Department, State Department and Treasury Department.

8. Guidance (cont’d) Fair Labor Laws: It is the policy of the University, to require contractors, subcontractors and licensees to certify to the adherence by manufacturers to labor standards in connection with working conditions, compensation, employee rights to form unions and the use of child labor.This policy affects the University and Research Foundation’s expenditures for textiles, apparel, and sports equipment. Vendors supplying the University and the Research Foundation with textiles, apparel or sports equipment are required to submit with their proposal a Vendor Certification of Compliance with Fair Labor Conditions. In addition, the Research Foundation follows the regulations set forth in the Fair Labor Standards Act, which requires all contractors to pay the prevailing wage and sets specific limitations on child labor in age and hours worked Collegiate Licensing: The University as stated in its Statement of Principles for Workers' Rights is committed to the principle of humane working conditions for workers involved in the production of goods bearing the University and the Research Foundation’s designs, trademarks, service marks, logographics, symbols, and other indicia. This commitment pertains to items, which are purchased, rented, or otherwise acquired. Any product containing the University or Research Foundation’s designs, trademarks, service marks, logographics, symbols, or other indicia must be from companies licensed by the Collegiate Licensing Company.

9. Guidance (cont’d) OMB Circulars: The White House’s Office of Management and Budget has promulgated a number of policy and regulatory circular’s, which the Research Foundation is to follow when making procurements with funds awarded by the federal government. The most relevant of these are; • Circular A-21 - Cost principals for Educational Institutions • Circular A-110 Administrative requirements for grants and agreements with Higher Ed, Hospitals and other non-profit organizations • Circular A-133 – Audit standards for state and local government and non-profit organizations

10. Guidance (Continued) Prevailing Wage: Pursuant to NYS Labor Law 220, and other federal regulations, workers on public works projects are required to be paid prevailing wages for the occupation they are employed in. The Purchasing Associate will request a wage rate schedule from the Department of Labor to ensure that vendors comply with this regulation. Vendor Responsibility: The Research Foundation is bound by Section .44 (d) of OMB Circular A-110, which states “Contracts shall be made only with responsible contractors who possess the potential ability to perform successfully under the terms and conditions of the proposed procurement. Consideration shall be given to such matters as contractor integrity, record of past performance, financial and technical resources, or accessibility to other necessary resources. In certain circumstances, contracts with certain parties are restricted by agencies' implementation of Executive Orders 12549 and 12689. A Purchasing Associate will undertake this responsibility review using established guidelines and resources in their procurement review.

11. In closing…. There are many levels of procurement, with unique requirements and regulations. Thank you for taking time to review this information. Be srue to visit the other modules in our procurement training, and as always, should you have questions or comments, contact the Office of Purchasing and Contracts at 437-4579 or send us an e-mail at Purchasing@uamail.albany.edu.