PURCHASING WORKSHOP

1. PURCHASING WORKSHOP The Survival Guide November 4 & 6, 2009 Hosted by: Ben Gamboa, Purchasing Agent

2. Presentation Contents • Cal-Card Program • Bid Thresholds & Requirements • Budget Development • Creating a PR • PR versus PO • POs in Lieu of a Contracts

3. Cal-Card Program • Benefits – Cal-Card Video • Flexible purchasing • Receive goods immediately, on demand • Purchase isn’t tied up in approval path • Individual POs aren’t needed • Access to all vendors regardless if they accept POs Return to Contents

4. Cal-Card Program • Drawbacks • Strict documentation timelines • Must reconcile receipts timely • Must demonstrate responsible purchasing • Must perpetuate responsible purchasing • Doesn’t eliminate process; alters it Return to Contents

5. Cal-Card Program • Application available online: www.sbccd.org/businessdocs Return to Contents

6. Bid Thresholds & Requirements • Informal Quotations • Item or Services >$6,000 • Formal Bids • Services >$15,000 • Construction >$30,000 • Goods & Equipment >$75,000 Call Ben Immediately! Return to Contents

7. Bid Thresholds & Requirements • Information Bid Needs • Goods and/or services desired • Purpose of the purchase • When delivery is desired* • Budget number funded for the purchase • Any previous research completed *The bidding process can take weeks or months to prepare and have a minimum six week advertisement and decision process. Return to Contents

8. Budget Development • Avoid the instinct to “do like last year” • Build annual purchasing strategic plan • Identify obligations, needs, and priorities • Quote for goods or services over $200 • Plan for 5% growth in costs • Don’t forget object codes 5809 and 5830! Return to Contents

9. Budget Development • Don’t forget these object codes: • 4100 – Classroom Textbooks • 4220 – Reference Books • 4440 – Media • 5809 – Other Expenses & Fees • 5830 – Electronic Contract Services • 6400 – Equipment: $200 to $1,000 • 6410 – Equipment: Greater than $1,000 Return to Contents

10. Creating a PR • System Templates • Six templates for common PRs available in PR Workflow • Right-click on desired template • Select Create Requisition • Requisition automatically created in New Requisitions folder • Replace **asterisked** information Return to Contents

11. Creating a PR Return to Contents

12. Creating a PR • Important Fields • Description • Types of Goods & Services • Room • Fax Number • Item Numbers • Shipping & Handling Return to Contents

13. Creating a PR • Following should match: • Description • Types of Goods & Services • Object Code Return to Contents

14. Creating a PR • Determining Correct Object Codes • Make a Wild Guess & Cross Fingers • Call or Email your Purchasing Staff • Consult your Chart of Accounts www.sbccd.org/businessdocs Return to Contents

15. Creating a PR • Want delivery to the correct room? Return to Contents

16. Creating a PR • Want an order faxed? Return to Contents

17. Creating a PR • Item Number column is for the item’s SKU number, not line numbering… Return to Contents

18. Creating a PR • Where do I put Shipping & Handling? Return to Contents

19. PR versus PO • P.R. • Purchase Requisition or Requisition • In FY 2010, starts with 00xxxx • Entered by department • Unofficial, internal document • No authority to purchase granted • A request to make a purchase Return to Contents

20. PR versus PO • P.O. • Purchase Order • In FY 2010, starts with 10xxxx • Processed by Purchasing • Official, legally binding document • Authority to purchase granted • Sent from Purchasing to Vendor Return to Contents

21. PR versus PO • Authority to Purchase • Administrative Regulation 6330 “Authority to purchase supplies, materials, apparatus, equipment and services is annually delegated by Board action to designated District officers.” • Who are the District officers? Vice Chancellor of Fiscal Services, Internal Auditor, & Director of Fiscal Services – Board Action: June 11, 2009 Return to Contents

22. PR versus PO • Authority to Purchase – cont. • What if I’m not that District officer? “Any purchase made by an employee without proper authorization will be considered an obligation and liability of the employee and not the San Bernardino Community College District.” – AR 6330 [emphasis added] Return to Contents

23. POs in Lieu of Contracts • Contracts Required – Perpetual • Consultants, Contractors, Speakers (5112, 5113, & 5120) • Insurance (54xx) • Car, Van, & Bus Rentals (5611) • Leases (5620) • Maintenance Agreements (563x) Return to Contents

24. POs in Lieu of Contracts • Contracts Required – Perpetual • Repairs & Maintenance >$15,000 (564x) • Legal, Auditing, & Accounting Services (57xx) • Internet & Software Licensing (5830) • Broadcast & Performance Rights (5831) • Construction Contracts (61xx & 62xx) Return to Contents

25. POs in Lieu of Contracts • Contracts Required – Conditional • Vendor does not accept our PO • Services are ongoing in nature • Services extend beyond one fiscal year • Services require proof of insurance (COI) • Services require periodic payment terms Return to Contents

26. POs in Lieu of Contracts Return to Contents

27. POs in Lieu of Contracts • What terms are needed on the PO? • Thorough description of services • Expected end result at completion • Beginning and End Dates • Obligations of District and Vendor Return to Contents

28. AnyQuestions? • The floor is open for questions… • This PowerPoint is available on the Purchasing WebsiteTODAY! Thank you for coming! Return to Contents

29. Last Minute Information… • Please leave Evaluations at the door • Your Purchasing Staff: • Ben Gamboa, Purchasing Agent, x4089 • June Flores, Purchasing Tech, x4088 • http://www.sbccd.org/businessdocs Return to Contents