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OKLAHOMA STATE UNIVERSITY

OKLAHOMA STATE UNIVERSITY. PURCHASING POLICIES AND PROCEDURES October 27, 2005. Director of Purchasing . The Director of Purchasing is designated as the Director of Purchasing for all agencies of the Board of Regents for OSU and the OSU System.

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OKLAHOMA STATE UNIVERSITY

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  1. OKLAHOMA STATE UNIVERSITY PURCHASING POLICIES AND PROCEDURES October 27, 2005

  2. Director of Purchasing The Director of Purchasing is designated as the Director of Purchasing for all agencies of the Board of Regents for OSU and the OSU System. • Stillwater, Tulsa, Oklahoma City, & Okmulgee campuses • Northeastern Oklahoma A&M College • Langston University • Connors State College • Oklahoma Panhandle State University

  3. Purchasing Department Staff • Director of Purchasing • Assistant Director • Buyers • P/card • Small Business Program • Buyers Assistants

  4. Purchasing Department Mission • Purchasing facilitates the procurement of goods and services for the OSU System and the A&M System on a timely and best value basis; and provides administrative direction within established standards.

  5. Purchasing Department Responsibilities • Review and process requisitions • Obtain bids and quotes • Create purchase orders • Sign all contracts and agreements for the University • Advise departments on policy & procedure • Liaison with vendors • Oversee the Purchasing Card program

  6. Policies & Procedures Three levels of governance • Board of Regents Policies & Rules • State of Oklahoma Statutes • Oklahoma State University Policies & Procedures

  7. Three Methods of Purchasing • Small Order – $500.00 or less • Purchase card (credit card) - $5,000 or less • Requisitions/Purchase Orders – over $5,000 • Departments have delegated purchase authority up to $5,000

  8. Small Order • To be used by departments for qualified purchases of $500 or less when the purchase card is not accepted. • Processed through Accounting

  9. Purchase Card • To be used by departments for qualified purchases up to $5,000 • To obtain a purchasing card, an employee must be designated by the department head to make credit card purchases and attend p/card training • Dean’s signature is required for limits over $2,500 and $25,000 • Purchases between $2,500 & $5,000 may be purchased with a p/card or processed on a requisition

  10. Procedures for P/card Purchases Between $2,500 and $5,000 • Purchases from contracts: Purchases made from an established contract should reference the contract/contract number Examples: 1. OSU Contracts – computers, copiers & maintenance, paint, sand & gravel, etc. 2. State Contracts – lab supplies, paper, copiers, etc. 3. State Agency Contracts – OU furniture contract, etc. 4. E&I Competitively Bid Contracts – office supplies, printers, lab supplies, etc.

  11. Procedures for P/card Purchases Between $2,500 and $5,000 (cont’d) • Quotations: Prior to purchase, at least two quotations are required when there is no existing contract. 1. The quotations should be kept on file with the transaction log. If quotations cannot be obtained, an explanation should be attached along with documentation of what companies were contacted 2. If the apparent lowest quotation was not used, an explanation as to why it wasn’t used should be kept on file.

  12. Procedures for P/card Purchases Between $2,500 and $5,000 (cont’d) • Sole Source: Sole source purchases (non-contract items) must be processed through the Purchasing Department on a requisition with a Sole Source Affidavit

  13. Requisition/Purchase Order • Purchases over $5,000 must be processed on a requisition through the Purchasing Department • Purchasing will review the purchase, and if necessary, obtain quotes or bids • Board policy requires Purchasing to obtain quotations for purchases between $5,000 and $35,000

  14. Requisition/Purchase Order • Board policy requires formal sealed, competitive bids for purchases over $35,000 • Regardless of source of funds, Board approval is required for purchases over $150,000 • Prior Board approval is required before purchase order is issued

  15. Quotes • Purchasing may obtain formal quotes for purchases between $5,000 and $35,000. • Quote process takes approximately two weeks • Not open to the public • After quotes are opened, they are sent to the department for evaluation • Department should choose the “lowest and best” quote that meets specifications • Evaluation form is returned to Purchasing with the departments recommendation • Purchasing awards the bid by sending a purchase order to the vendor

  16. Bids • Purchasing may obtain formal bids for purchases over $35,000 • Bid process may take two or more weeks • These are public bid openings • After bids are opened, they are sent to the department for evaluation • Department should choose the “lowest and best” bid that meets specifications • Evaluation form is returned to Purchasing with the department’s recommendation • Purchasing awards the bid by sending a purchase order to the vendor

  17. Special ProceduresContracts • Purchases made from state contracts or OSU contracts do not need to go through the quote/bid process • Any purchase over $5,000 must be processed on a requisition, even if purchased from a contract

  18. Special ProceduresProjects • Projects are improvements to facilities • Projects must be routed through Physical Plant • Bids for projects require more time to complete

  19. Special ProceduresSole Sources • Sole source affidavits shall be required when the item or service is limited to one provider (sole source) or when the item is limited to one brand (sole product) which may be available from more than one source • See handout for more details

  20. Special Procedures • Insurance and professional services must always be processed on a requisition • Software license/maintenance agreements, or any other contract or agreement, must always be signed by the Director of Purchasing • Maintenance/rental/lease agreements may be paid with the purchasing card if less than $2,500 for the fiscal year. If the total is more than $2,500 for the fiscal year, the purchase must be processed on a requisition

  21. Other Special Procedures • Other purchases may require special procedures: Printing/Duplicating Carpeting Office Supplies Physical Plant Employee Moves Equipment Repair Used Equipment Vehicle Supplies/Repairs Emergency Orders

  22. Expediting the Process • PLAN AHEAD • Obtain appropriate signatures before delivery to Purchasing • Complete all required information • Attach supporting documentation (specifications, suggested vendors, sole source affidavits, quotes, etc.) • Be aware that Accounting may need to route the requisition for other necessary signatures.

  23. Signature Matrix • Outlines what signatures are needed at what levels • Approved by the Board of Regents • See handout for details

  24. Purchasing Website • www.purchasing.okstate.edu • Information about Purchasing policies and procedures • P/card • Contracts • Announcements • Board of Regents Schedule • Training Schedule

  25. Controller’s Office Newsletter • Monthly newsletter sent out by the Office of the Associate Vice President and Controller • Has items from Accounting, Bursar, Financial Information Management, Payroll, and Purchasing • Purchasing portion contains notices, reminders, Board meetings, training schedules

  26. Questions/Discussion What would you like to know?

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