Purchasing Goods & Services at VCUHS

1. Purchasing Goods & Services at VCUHS The Ordering Process: From Requisition to Contract 2004

2. Recognizing a Need • The Requisition is the preliminary document created when the need for a good or service is first known • The Requisition is a document to request authorization to move forward in obtaining the needed good/service through either an established contract, quotations, or other method of procurement. • The requisition is not a purchase order authorizing the vendor to conduct work

3. Creating the Requisition • Once a need has been identified, the requisition is prepared. Some users will have access to our automated purchasing system- ESI*. Others will need to use a paper requisition (typed or handwritten). Note: Paper requisitions can be obtained through Boise Cascade, Form # 57171 • A requisition must provide the following information- • Full description of the needed good and/or service to include vendor catalog # if applicable • The quantity needed & an expected not-to-exceed dollar value of the good/service • The supporting MAS (3 digits) and Consist/ Cost codes (7 digits). A listing of Consist Codes and inquires about their usage can be obtained from Finance, 8-4769 • The date the good/service is needed (note: “ASAP” is not considered a date) • Suggested vendor (if known) • Department Contact Name, Phone #, Delivery Location(Building, Floor, and Room #) • *ESI training is available by contacting Al Khalafalla, at 8-6642

4. Approval Signatures on Requisitions • Signature from the Department Director or designee responsible for the MAS code referenced on the requisition must be obtained on all requisitions using operational funds. ESI users obtain Electronic Approval Signatures from their Department Director or designee. • Requisitions using capital funds (i.e. equipment purchases valued at $5,000 or more with a 2 year or more useful life) must have the following approvals: • Between $5,000 & $25,000 – approval from Sr. VP of Finance who will assign the request with a Minor Capital Authorization Number • Over $25,000 – approval from VP of Support Service after review of supporting documents in the form of an ROI(Return on Investment) or Net Present Value report completed by the requesting department. Finance (Mark Beasley) will assist in preparing these reports. • The appropriate signatures must be obtained prior to submitting to Purchasing and prior to committing vendor(s) to work.

5. Approved Requisitions • After receiving the approved and signed requisition, Purchasing will assign the requisition to a Buyer who will then proceed with the procurement process. • The procurement process will include obtaining vendor quotations. The following are general guidelines used by Purchasing: • Is good/service available through an existing contract? If yes, place with the contract vendor • Is the good/service less than $5,000? If, yes, obtain a quote from a single vendor & if quote is reasonable, place the order with the vendor. • Is the good/service, more than $5,000? If yes, seek competition from at least 2 viable sources and place the order or establish a 2-party contract with the vendor who offers the best price and quality. Depending on the complexity of the needed good/service, Purchasing will determine if a written solicitation is required. • Is the good/service only available from one source? If yes, requesting department provides a proprietary justification explaining the uniqueness of the vendor’s good/service. Price is not a consideration when preparing the justification. REMEMBER – IT IS PURCHASING’S RESPONSIBILITY TO OBTAIN QUOTES AND CONDUCT NEGOTIATIONS. AS THE REQUESTOR, WE NEED YOU TO PROVIDE US WITH APPROPRIATE SPECIFICATIONS FOR THE GOODS OR SERVICE YOU NEED.

6. Establishing a Purchase Order/Contract from an Approved Requisition • Once the appropriate procurement method has been determined and acted upon, the Buyer will prepare one of the following: • 2-Party Contract document - to be used when the scope of work is detailed and terms and conditions need to be specified to provide adequate risk coverage to VCUHS. Designed for the procurement of recurring goods and services over a period of time. Especially important when an Invitation for Bids or Request for Proposals is issued and the vendor of choice has been selected. This document requires the vendor’s signature as well as signature(s) from VCUHS Administration. • Purchase Order - to be used when a contract is already in effect, or the request is for a one-time purchase not a recurring one, Since Purchase Orders are generated by the ESI automated system in Purchasing, all Purchase Orders must come from the Purchasing Office.

7. Signatures on Contracts & Purchase Orders • VCUHS personnel are not authorized to sign vendor documents, contracts or purchase orders for the Health System • Any paperwork requiring signatures must be sent to Purchasing, and Purchasing will obtain the appropriate signatures from VCUHS Administration. • The only persons authorized to sign contracts, purchase orders, or other vendor documents are the following VCUHS Administrators- • More than $150,000- Two (2) of the following: • Chief Executive Officer of the VCU Health System or Chief Executive Officer of MCV Hospitals/VCU Health System, and Executive VP of Corporate Finance or Senior Vice President of Finance • Legal Counsel must also review all contracts over $150,000 • Between $150,000 and $50,000 • Any of the above - or- • Vice President of Support Services • Under $50,000 • Any of the above - or- • Director of Purchasing