Purchasing Services presents Procurement Guidelines Training -2014

1. Purchasing ServicespresentsProcurement GuidelinesTraining -2014

2. Can you answer? Is UT’s purchasing of goods and services centralized or decentralized? What is the University’s threshold for doing a competitive bid process for goods _______ and services ________? What does the acronym RFP stand for? Is it proper to accept Mud Hens tickets, dinner at Mancy’s or gifts of value from our suppliers?

3. Can you purchase lab animals or radioactive materials with your p-card? • Can you use the p-card to pay for membership fees, dues, subscriptions? • What is the $$ value in which we encourage you to use the p-card (providing the supplier takes the p-card?) • What is the most common reason for using a competitive bid waiver form? • Can anyone sign an agreement/quote/statement of work in the purchase of goods and services?

4. Our Website http://www.utoledo.edu/depts/supplychain/ • Lists Staff members, contact information and their respective commodities. • Provides online access to procurement manual • Lists current University contracts and information sheets • Lists University Policy & Procedures as it relates to the procurement functions. • Provides instruction for suppliers interested in doing business with the University. • Provides information on our supplier diversity program. • Has links to finance, receiving, property control and accounts payable.

5. What we purchase • The Purchasing Department administers procurement in accordance with State of Ohio law and University policy. • Our annual purchases total approximately $380,000,000 per year and include various equipment and supplies, as well as contracted services which support the University’s academic and research programs, auxiliary departments, UTMC and campus wide activities. • We are a decentralized purchasing community whereby many individuals have ability to spend university monies and must take great care to do so knowledgeably and wisely.

6. Ethics of Purchasing • ALL University Staff and Faculty must be above suspicion of unethical behavior when conducting procurement activities. • Ohio Ethics Law – do not accept gifts, meals, money, entertainment • Key Standards of conduct: • Avoid Conflicts of interest • Avoid behaviors that may negatively impact procurement decisions • Know and obey laws and regulations • Protect confidential and proprietary information • Maximize value for each dollar of expenditure • Conduct business with suppliers in good faith and with equal consideration

7. Purchases under $5,000.00Excluding Services: • Utilize the University issued Procurement Card (P-card) **some exceptions apply – refer to Procurement Guidelines Manual • Procurement Card – • Administered and audited by Accounts Payable • Utilized anywhere “Master Card/Visa” accepted, for non-restricted goods and travel. • Authorized users and card limits are determined at the departmental level. • ‘Self Service’ Purchasing – decentralized – information on suppliers by category has been added to the purchasing website

8. P-card Categories of Spend Typical Categories where P-card can be used: • Travel (rental car, hotel, airfare, food) • Lab research • Office Supplies • Maintenance & Repair supplies • Promotional Items • Local retail (eateries, building supplies) • Subscriptions, membership dues • DO NOT PAY SALES TAX, YOU MUST TELL THE SUPPLIER UT IS TAX-EXEMPT

9. P-card Exclusions Hospital Inventory Items Radioactive materials/items-radiation safety compliance Medical devices and small equipment Lab, research animals and human subject interests Services, construction and renovation projects whereby onsite work effort requires insurance liability and workers compensation certificate validation, terms and conditions review an detailed specifications to be followed Consulting agreements Service and Maintenance agreements for software/equipment

10. Purchases of $5,000 - $49,999for goods and up to $74,999for services: • Requires University issued Purchase Order (legal & binding document) generated by Purchasing Department to most responsible supplier. • Note: the supplier selected by the end user department may/may not be the supplier that receives the order. Purchasing may be able to advise on alternate suppliers whereby we receive contract pricing or better delivery options. • Competitive quotations [either by written, faxed or verbal request] should be obtained either by the end user department or Purchasing. • Note: the Purchasing Department has the authority and responsibility to question specifications, quantities, and all other aspects of a proposed purchase in an effort to obtain the most beneficial purchase for the University. Purchasing reserves the right to seek additional competitive quotations to find the best solution.

11. Purchases of Goods over $50,000 and Services over$75,000 • Requires formal competitive bidding eventand analysis in accordance to policies. • Requires Purchase Order generated by Purchasing Department. • The awarding of these contracts shall be made to the supplier who demonstrates the best overall value to the institution (not always the lowest cost) as determined by an established set of evaluation criteria and scorecarding process. ** Splitting of orders to avoid competitive bidding is a violation of the law.

12. Purchases over $500,000 • $500K or $500K and with a term > 5 years • Requires Competitive Bid Process • Requires the Board of Trustees approval prior to processing. (exception: if the purchase was already approved as part of the annual budgeting process) • Lead time is approximately 2 – 3 months and depends on scheduled Board meetings.

13. Competitive Bid Exceptions There are a few instances whereby a purchase may be made without competitive bidding: • Maintenance contracts purchases from manufacturer or authorized dealer/supplier of the specific equipment to be serviced. • Purchases from other public agencies or Group Purchasing Organizations (GPO) • Purchases as defined by Competitive Bid Waiver process

14. Competitive Bid Waivers Competitive Bid Waivers (CBW) should be few and far between. The President has final signature only after Purchasing has validated the departments request for waiver. 3 types of common reasons for waiver request: • Sole Source • Emergent Need • Economic Situation

15. Grant Purchases Purchases utilizing grant or outside sponsored research funding may have additional restrictions based on Agency guidelines, rules and regulations. To be compliant, purchases will follow the most restrictive of the University procurement policies or the specific funding agency’s guidelines and regulations.

16. Group Purchasing Organizations The University is a member to many Group Purchasing Organizations (GPO). GPO’s aggregate their members spend and conduct competitive bidding events on behalf of its members. Our purchasing policy accepts these contracts as meeting our competitive event requirement and are therefore acceptable to use for purchases.

17. Legal terms There are many contractual obligations to be worked through in contract terms and conditions. Care must be taken by all parties to ensure contracts have proper review and approval by the appropriate University officials, Office of Legal Affairs and Purchasing prior to execution. You are personally liable and will face disciplinary actions if you obligate the University by signing a contract without appropriate authority and review.

18. T’s & C’s to watch out for Indemnification – as a public university we can NOT indemnify another entity Governing Law – must be state of OHIO, cannot accept another venue Paying of attorney’s fees – cannot accept Freight terms – who pays for shipping at what point Liability language Termination clauses – do we have an out if we desire to end a contract early – do not do ‘evergreen’ terms Taxes – we are tax exempt

19. Purchasing Website Navigation http://www.utoledo.edu/depts/supplychain/ We exist as a SERVICE to you!! Get us INVOLVED early on; Ask for our expertise in sourcing and contracting. WE are ready to help YOU!

20. If you have further questions, please contact myself or any of the purchasing staff. Thank you for becoming a knowledgeable buyer of goods and services for UT! Jennifer Pastorek Director of Supply Chain 419-530-8707