Contracting and purchasing services

1. Contracting and purchasing services Purchasing, Contracting, Insurance and Claims, Accounts Payable, Campus Supply, Shipping and Receiving, Property Surplus and Administration

2. Department mission Satisfy the requirements of our internal and external customers in a timely, efficient manner in support of the University’s overall mission and goals while ensuring compliance with regulations set forth by the federal government, the State of Arizona, the Arizona Board of Regents and the University.

3. Purchasing services

4. Daily job duties • Purchase Orders (PO’s) • Request for Proposals (RFP’s) • Purchasing Card • PeopleSoft Financials • Audits • Customer Service • Small Business Program • Conflict of Interest • Compliance • Vendor Management

5. Purchase orders • Purchase Order(PO)=Order for a purchase • A Purchase Order serves as a legal Contract • Department provides required quote(s) and requisition number • Procurement Thresholds: • $0-$5K Processed on the department level with the exception of advertising, animals, computers, consulting services, firearms, legal fees, narcotics, printing, radioactive material, rare and precious metals, renovation and construction. • http://nau.edu/Contracting-Purchasing-Services/_Forms/Policies/302_01/ • $5K-$25K Buyer’s discretion • $25K-$100K Three quotes required • Over $100K Formal solicitation required • Additional Information Required: • Justification of purchase • Insurance • FS-13 (Hazards-Asbestos/Lead/PCB, Radiation, Biological, Chemical, Other) • Acceptance of NAU T/C • Item Category List: http://nau.edu/Contracting-Purchasing-Services/Purchasing/Item-Category-List/

6. Request for proposal • RFP’s are processed for purchases and contracts that exceed $100K. • Purchasing Services is the only authorized department on campus to process a formal solicitation. • Early involvement is KEY! • Funding source does not exclude you from the procurement limits (state, local, grant). • Examples of RFP’s: Marketing and Strategic Communication, Campus Dining, NAU Bookstore and Elevator Maintenance.

7. Purchasing card program • FY15 Spend • $24,914,443.57 • 58,377 Transactions • 838 Active Accounts • Manage all processes • Download transactions to PS Financials from JP Morgan • Review all transactions for compliance • Process new applications • Process limit change requests • Close out old cards • Provide reporting as requested • Process NOV’s • Training • Assist in yearly audit with State Audit Office

8. Peoplesoft financials Assist in testing for campus wide improvements. Email ASK-FAS@nau.edu for PeopleSoft processing questions. http://financials.peoplesoft.nau.edu

9. Yearly audits • State Audit • PCard • Leases • PO’s • RFP’s • Vendors • Internal Audit • Conflict of Interest • Bid Waivers • ABOR • Ongoing-Public records requests

10. Small and disadvantaged business utilization • All purchases under $100,000 should be restricted to Small Businesses unless impractical. • Department responsibility: • Those responsible for making purchases on behalf of the University are encouraged to contact CPS for help finding a supplier. • Access Vendor Listing report in Enterprise Reporting for list of certified small and disadvantaged vendors in PeopleSoft Financials. • Public Folders -> Financial Management -> Purchasing • Not finding a suitable option? Contact us! • Small Business Plans and MBE/WBE reporting for grants. Early involvement is key!

11. Conflicts of Interest NAU employees are required to: • Disclose substantial interests in the official records of NAU (eCERT). • Refrain from participating as an employee in any contract, sale or purchase between the entity or individual with the substantial interest and NAU. • Refrain from supplying goods or services to the University unless a public competitive bid has been awarded. Penalties: Class 6 Felony/Class 1 Misdemeanor References: A.R.S. 38-503 – Requires public employees to disclose substantial interests and prohibits public employees from providing goods or services to the public agency A.R.S. 38-510 – Defines penalties for violating conflict of interest laws. A.R.S. 38-502 – Defines remote and substantial interests. Questions: Baily Williamson, Program Coordinator Small Business Utilization/Procurement Compliance 928.523.6099 Baily.Williamson@nau.edu

12. Conflicts of interest How to determine if a substantial interest exists? Consider these three questions: • Will the decision in a contract or procurement affect my interest or that of a relative? • Is the interest a monetary and/or a proprietary interest? • Is the interest other than a remote interest? If “yes” can be answered to all three questions, a substantial interest likely exists and should be reported. What cannot be considered when determining a conflict of interest: • Job duties with NAU and type of services or goods that can be provided to NAU. • Dollar amount. • Fundingsource.

13. Vendors Vendor Entry Process • Verify vendor is not an employee or listed on the conflict of interest list. • If the vendor is deemed suitable for use, vendor must complete NAU Substitute W9. • Ink signatures are required. • Vendor forms can be submitted through email, fax, or traditional mail. Original documents are not required (e-mail is preferred). NAU-Purchasing@nau.edu • Include department contact information. • Processing time is generally one business day, provided the form is legible and no fields are missing. • Reasons vendors are unapproved: • If payments have not been made within the last two years. • Vendor has a conflict of interest. • Change of tax ID/company mergers. • Any changes including changes to addresses must have written documentation from the vendor requesting the change.

14. Contact information General Information Nau.edu/purchasing NAU-Purchasing@nau.edu PCard@nau.edu Carol Luckey Assistant Director Carol.Luckey@nau.edu 928-523-6091 Glenn Birkett Senior Buyer Glenn.Birkett@nau.edu 928-523-6094 Maureen Lintel Senior Buyer Maureen.Lintel@nau.edu 928-523-6055 Baily Williamson Program Coordinator Baily.Williamson@nau.edu 928-523-6099 Samantha Cayo Administrative Assistant Samantha.Cayo@nau.edu 928-523-6293 Senior Buyer Vacant Buyer Vacant

15. Contracting

16. Why do we have or need a contract? “The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The courts must enforce a valid contract as it is made…” -- from Elements of a Contract. (n.d.) West's Encyclopedia of American Law, edition 2. (2008). Among other reasons, NAU may enter into a procurement contract so that there is a clear, agreed, and legal standing upon which parties can rely in the event of a dispute, action, or other issue with a product or service.

17. Our Mission The mission of the Contracts Unit is to process contracts that: • satisfy the requirements of our internal and external customersin a timely, efficient manner, in support of the University's overall mission and goalswhile maintaining the regulations set forth by the State of Arizona, the Arizona Board of Regents and the University.

18. Our Responsibilities The Contracts Unit drafts, reviews, modifies, negotiates, executes (signs), and maintains contracts for products and services. We: • Follow federal, state (A.R.S.), ABOR, and NAU laws and policies • Ensure that NAU’s needs, responsibilities, and abilities can be met by following • Procurement policies and thresholds • Insurance practices, risk assessment, and safety ratings • Computing and data security requirements • Intellectual property, marketing, equitable access, and other needs • Other directives, practices, and requirements as necessary • Retain and archive contracts per Arizona law

19. The Particulars of a Contract Considerations within a Contract • Term (Length of time) • Insurance • Cancellation • Payment/Deposits • Intellectual Property • Confidential Information • Liability • Indemnification • 3rd parties/Beneficiaries • Governing Law • Scope of Work/Details • General Accuracies and Consistencies • Others … Types of Contracts • Software, Technologies • Subscriptions (library) • Consultants • Advertising/Marketing • Student Services/Student Learning • Maintenance/Repair/Lab Equipment • Travel/ Accommodations • Art Loans • Facility Use • Speakers/Performers • Faculty Development • Many others …

20. Standard Process/Procedure • Department submits contract with Contract Signature Request Form (CSR Form at our website) to the Contracts Unit (email address). • Contracts Unit reviews/modifies contracts. Parties may negotiate to meet their capabilities and requirements. • Can be difficult and time consuming. • Goal is a mutually agreeable contract that both parties sign and execute. • Executed contracts are sent to Deptand retained by Contracts Unit. • Dept monitors contract for term extensions or other changes. Deptsubmits CSR and Addendum/Quote/SOW if new services/products are added to existing contract. • If necessary and per Dept request, Contracts Unit cancels contract per cancellation requirements and signature authority.

21. Your responsibilities • Don’t sign a contract unless you are authorized to do so. • Check our website for a list of authorized signers • Or ask us • Start early, as the negotiation process may take a while. • Work with the vendor to develop a contract or scope of work that meets your needs and expectations. • Let the vendor know we will review, modify, and negotiate terms and conditions with them in an open and fair process. • Work with Purchasing to follow procurement guidelines. • Requisition funds, and let us know how you will be paying. • Send a clean and legible contract to us, preferably in Word.

22. Summary Proper contracts are critical and integral to the lawful and cost-effective operations of NAU and its Departments. The Contracts Unit: • Provides a method and a service to help you secure products and services according to NAU’s operating processes and capabilities • Ensures compliance with laws, regulations, and policies • Helps define and uphold the integrity of NAU to our vendors, State agencies, and ourselves

23. Contact Information General Information nau.edu/contracting NAU-Contracts@nau.edu 928-523-6110 Angela Helmer Assistant Director Angela.Helmer@nau.edu 928-523-4527 Aaron Kaminski Contracts Administrator Aaron.Kaminski@nau.edu 928-523-2009 Michael Watkins Contracts Administrator Michael.Watkins@nau.edu 928-523-4556 Gordon Dierks Contracts Administrator Gordon.Dierks@nau.edu Benjamin Garcia Administrative Assistant Benjamin.Garcia@nau.edu 928-523-6110

24. Insurance and claims unit

25. Insurance why, who and when • Why does the University ask for insurance? • To protect the University’s property and minimize the losses to Northern Arizona University • From whom and when does the University ask for insurance? • Vendors, Contractors, Third-parties, Users, Tenants • Basically anyone providing a service to the University or anyone using the University’s resources (like football fields or rooms) • Examples are charter buses, childcare services, labor, construction, soccer field rentals, concerts, plumbing or restoration services • Before the service or facility rental occurs insurance should be approved

26. Insurance requirements • How much insurance does the University require? • It depends on the amount of risk including the type of activity • Bounce Houses, Charter Buses, Elevator Maintenance • Arizona Department of Administration Risk Management Division has guidelines at: staterisk.az.gov/insurance/modules • What are the University’s minimum insurance requirements? • General Liability of $1 million each occurrence and $2 million general aggregate. • Automobile Liability of $1 million Combined Single Limit (CSL) • CSL – a single dollar limit that applies to any combination of bodily injury and property damage liability claims • Workers Compensation and Employers’ Liability of $1 million each for accident, disease (each employee and policy limit) • Other depending on activity • Professional Liability, Builders Risk, Commercial Crime Policy, etc.

27. Insurance and contracting • Insurance and Contracting • The Scope of Work or activity in the contract drives the insurance requirements • The Contract (including Purchase Orders) bind those insurance requirements • Certificate of Insurance is a document detailing insurance coverages • New language on Certificates of Insurance specify “…when there is a written contract that requires…” • Without a Contract, the insurance requirements are not enforceable • Indemnity beyond insurance • Protection against a loss even if there is insufficient insurance • NAU does not want to limit a vendor’s liability • Example • Third-party sues NAU for damage caused by a vendor, the vendor defends and pays third-party, NAU was covered from the loss • Requiring insurance protected NAU’s assets

28. Insurance other duties • Insurance (other duties) • Volunteer Registration Forms • Requests for Certificate of Insurance • Review of Certificates of Insurance • Independent Contractor Agreements/Sole Proprietor Waiver • Forms from the State waiving Workers Compensation coverage • Assumption of Risk Forms – Mandatory or Voluntary • Resource for Insurance Requirements on Contracts/Purchase Orders • Loss Prevention Coordinator

29. Claims coverages • Claims – What is covered? • Arizona Revised Statute §41-621, et. seq. states that University’s officers, agents, and employees are covered against liability for acts or omissions while acting in authorized governmental or proprietary capacities and in the course and scope of employment or authorization • Types of coverage • Commercial General Liability • Commercial Automobile Liability • Workers Compensation • Professional Liability • All Risk Real Property (Replacement Cost) • Buildings, land, fixtures permanently attached • All Risk University Owned Property (Actual Cash Value) • Moveable and easily transportable (e.g. University owned computers, furniture, etc.)

30. Claims exclusions • Exclusions from Arizona Revised Statues §41-622 (B) • Employee infidelity • Inventory shortages • Mysterious disappearance • Normal wear and tear • Obsolescence • Non-serviceability • Mechanical or electric breakdown • Property losses less than $100 in value • Nuclear reaction or radiation • Warlike actions • Other common exclusions including personally owned property and vehicles

31. Claims who, how much and notices • Who covers the claim? • Arizona Department of Administration Risk Management Division administers the State’s insurance program on behalf of the University. Premiums for FY2016 are $2,710,800. • How much depends on the type of property: • Real Property is at repair or replacement cost while • University owned Property is at Actual Cash Value (ACV). • ACV – price of new property minus depreciation (age of property) • A four year old computer is not worth what a new one is today • Notice of Claim form for Third-Party claims must be initiated within 180 days of incident • University claims need to be initiated within 90 days of incident, then we have 1 year to finalize the claim • ONE day notice for physical injuries or damage/loss over $10,000

32. Claims process Claims Reimbursement for 2015

33. Online report of injury (roi) • Online Report of Injury (ROI) for Third-Party* incidents or injuries • Department Self Service in LOUIE (Report of Injury Home Page) • Detailed instructions on how to complete the ROI is located here • *Third Party applied to students, affiliates, guest visiting NAU campus, and employees not on work status attending a function after working hours • Employees who traditionally filled out the paper version of the Incident/Injury Report should now fill out the Online ROI • We receive the completed ROIs for liability reporting purposes • Does not take the place of calling 911, completed after emergency care has been provided

34. Contact information General Information nau.edu/ics NAU-Insurance@nau.edu NAU-Propliability@nau.edu (928) 523-2009 Angela Helmer Assistant Director Angela.Helmer@nau.edu (928) 523-4527 Aaron Kaminski Insurance/Claims and Contracts Administrator, Loss Prevention Coordinator Aaron.Kaminski@nau.edu (928) 523-2009 Administrative Assistant Vacant

35. accounts payable

36. Accounts payable Accounts Payable (A/P) is responsible for the last step in paying vendor invoices and refunds to non-employees. A/P also reviews all non-travel expense reimbursements. http://nau.edu/Accounts-Payable Staff – Contact Info & Vendor Assignments Connie Raney, Nancy Yazzie, Brenda Hooten, Rhonda Guy Payment Information – Overview of Payment Options & Forms

37. The payment voucher ~40,000 VOUCHERS ANNUALLY

38. The payment voucher

39. a/p tips NAU-AccountsPayable@nau.edu Invoices: Put Vendor Name & Amount in Subject line of email Put Receiver (RC) number on invoice Remove Social Security numbers Expense Reports (ER): Put ER Number in Subject line of email

40. Contact information General Information • nau-edu/Accounts-Payable • NAU-AccountsPayable@nau.edu Connie Raney Coordinator Connie.Raney@nau.edu 928-523-6103 Nancy Yazzie Accounting Specialist Nancy.Yazzie@nau.edu 928-523-3214 Brenda Hooten Accounting Specialist Brenda.Hooten@nau.edu 928-523-5173 Rhonda Guy Accounting Specialist Rhonda.Guy@nau.edu 928-523-6100

41. Materials Management Unit

42. Campus Supply Campus Supply is Northern Arizona University’s central warehouse and stores operation. Campus Supply stocks a variety of products necessary for the care and operation of Northern Arizona University’s 80+ facilities, its academic and administrative missions and our Intergovernmental Agency (IGA) partners. Students: Leah Taylor Tilghman RJ Kevin, Jonah, and Danielle

43. Campus supplylocation Facility Services - Bldg 77 Open to Departments Only: Mon-Fri 7:00am – 4:00pm

44. Stock/Non-Stock Orders • Campus Supply stocks approximately 2000 items in a 16,000 square-foot warehouse and is capable of ordering any item needed through carefully negotiated contracts. Contracts are based on volume purchases, allowing Campus Supply to offer competitive pricing while passing on savings to our customers. Ordering: • Visit Campus Supply BLDG 77, Mon-Fri 7:00am – 4:00pm • Stock Online Ordering – Material’s Request • Non-Stock Orders – Contact NAU-CampusSupply@nau.edu or 928-523-1108 • Campus Supply does have an NAU P-Card as well as a Sam’s Club credit card. Items we Stock: Copy Paper (cheaper than Staples!), batteries, gloves, rags, first-aid supplies, cleaning supplies, lighting, electrical, plumbing, tools, tape, glue, flashlights, extension cords, and much more! FY’15 STATS: • 3,746 TMA Purchase Orders (16 POs/day) • 3,404 Sales Orders (14 SOs/day) • 16,954 Parts (70 Parts/day)

45. Campus Supply Home Page 1. Visit: https://nau.edu/campus-supply/ 2. Select “Online Ordering”

46. Log-In to Facilities ISD 3. Use your NAU LDAP Log-in ***NOTE: Make sure to use “nau\” before your user ID. Students must use “students\” in order to log-in to the Facility Services ISD page.

47. Material Request – Catalog Search 4. Under “Material Request” select “Catalog Search” to search for parts by type, part code, or description.

48. add to Cart 5. Find and select the part you want to add to cart. 6. Review detailed information and select the Order Quantity. 7. Select “Add to Cart”

49. Checkout • 8. After all parts have been added to your cart, select “Checkout” to review your cart. • 9. Select your department location and completely fill out the page below: • ***NOTE: All purchases require a valid Speedchartnumber Material’s Requests are then converted into Sales Orders by Shipping and Receiving to be delivered to the specified building.

50. Staples Advantage • Staples Advantage provides better pricing on many products! • New User? Contact Danielle Brainard at Danielle.Brainard@nau.edu or by phone at 523-8045. • Campus Supply manages Staples Advantage account. • Daily Uploads to PeopleSoft and Monthly Reconciliations • No NAU P-Card Needed! • Issues regarding your NAU account, contact Danielle Brainard. • Issues with a Staples order, contact Staples directly. • Returns (follow Staples instructions online)