PURCHASING EASY USER GUIDE
Bidding Requirements
As a public university and a member of the
State System of Higher Education (SSHE) certain bidding requirements are
either mandated or have been adopted as good business practice.
Under ACT 57, Pennsylvania law dictates that bids will be solicited
for all purchases exceeding ten thousand dollars ($10,000).
While this external requirement is closely followed,
internal guidelines suggest that bids should be sought at varying levels
under the $10,000.00 limitation. This
action is dependent upon the dollar value involved, the desires of
requesting party(ies), and the purchasing staff’s abilities to add value
to the purchasing process by reducing the cost of the item to the
department.
The bidding process, whether verbal, faxed, written, or
conducted through a formal sealed bid procedure is necessary not only to
secure the best possible price, but to ascertain other details which may or
may not influence the decision to purchase the commodity or service from a
particular supplier. Delivery
time frames are established, shipping details are clearly defined, and rules
clearly set as a part of the bidding process.
This procedure leaves no room for misinterpretation and is an
integral part of the purchasing operation.
For these reasons alone, value is added to the process.
Commodity and Service Purchases
Any tangible object is considered to be a commodity and
acquired with a Purchase Order (PO). Services
are considered to be an intangible product and are procured through a
Service Purchase Contract. Services
include, but are not limited to services greater than $1,500.00 provided
by speakers, conference/workshop site providers, repairs to equipment, etc.
Once the need for purchase is acknowledged, a requisition must be
placed into the Financial Record System’s (SAP) purchasing module, which
resides on the mainframe computer.
Access to this program involves a series of passwords
and entering codes that electronically tie any one individual or department
account number to one allowable electronic log-on code. This security system prevents manipulation of or even viewing
access by unauthorized individuals.
Once a requisition is entered into SAP, an electronic
approval by the appropriate dean or vice president is still required before
the purchasing staff can begin the process, unless the approving party has
waived the requirement. This
may take many routes dependent upon the request, time of need, external
conditions, etc. For example,
there are special approvals for using equipment money as opposed to general
funds.
Additionally, computer equipment, and in some cases,
audio visual equipment specifications need to concur with standards as set
by computing services and/or audio visual personnel.
Also, any equipment requests requiring the use of
University utilities or possible structural modifications must be reviewed
by and have prior approval from the Facilities Management Department to
ensure compatibility and conformity with University standards for such
equipment.
Signature Requirements
Primarily, there are two types of documents that can be
created from a requisition that require signatures:
-
Purchase Order Contract
-
Service Purchase Contract
Signature requirements for a Purchase Order
contract fall within the realm of University management.
Purchase Orders will be signed by the Purchasing Agent, Purchasing
Director, Business Services Director, the Comptroller, or the Vice President
for Finance and Administration. It
is usually dependent upon the dollar value involved.
Signature requirements for a Service Purchase
Contract above $1,500.00 are much more complex and would first
require the signature of the contractor.
Service requests for $1,500.00 or less are processed on a purchase
order internally. Once the
contract is returned to the Purchasing Office, up to three internal
signatures may be required from the Purchasing Agent, Purchasing Director,
Business Services Director, the Comptroller, or the Vice President for
Finance and Administration. It
is usually dependent upon the dollar value involved.
The Service Purchase Contract is then mailed to the
University Legal Counsel for review and signature.
-
If the contract total is less than $20,000.00, Legal Counsel will
make the final approval and will return the contract to the University.
-
If the contract total is equal to or greater than $20,000.00, it must
also go to the Office of Attorney General for approval before return to the
University.
-
If the contract total is equal to or greater than $500,000.00, the
contract must also be approved by the Commonwealth’s General Legal Counsel
before return to the University.
Regardless of request, whether for a commodity or
service, bidding limits are still enforced.
However, the biggest problem with a service contract involves time
limits. Even if the service
requested is simple in nature - - getting the correct signatures in place BEFORE
the services commence is imperative.
The final signatory on any service contract, the
Attorney General and/or his/her designee will NOT sign any
contract if the services have already been completed.
Without this signature, we have no Legal avenue to pay for the
services that were provided, as this was an unauthorized purchase contracted
outside the confines for the approved purchasing process.
This leaves the original requestor liable for payment or forces
the contractor to initiate legal action through the court system seeking
payment for services provided.
The Do’s and Don’ts of
Purchasing
SPECIFICATIONS:
Regardless of the request, there are several things which can be done
to ease the process for all of us. Providing
the detailed specifications certainly erases the need for additional
telephone calls, comparisons of data, confirmation of requirements, etc.;
all of which delay processing. Keep
in mind that specifications are fundamental to good purchasing methods.
While you may know exactly what you have in mind, if these thoughts
are not clearly conveyed on the requisition it may increase the amount of
time it takes for your goods or services to be received.
Specifying brand names, model numbers, catalog numbers
with descriptions and/or reorder numbers is EXTREMELY important.
Requisitions containing only vague descriptions or only a number will
not be accepted and the requisition will be returned to the requesting
individual for additional information.
Any background material already gathered is also a big help for the
Purchasing staff. However, it
is important that the requestor, refrain from soliciting bids for any
required item. It is critical
that the bidding process preserves the integrity of the procedure to ensure
legality and the use of only ethical and professional practices by all
concerned.
TIME FRAMES:
While it is certainly recognized that emergency situations do arise,
it is important to understand that while the Purchasing staff attends to one
emergency, another requestor must wait regardless of the timeliness of their
cushion. As soon as you are
aware of an upcoming project, give us a call as soon as possible; most
likely we will be able to relieve you of some work and cut out some
redundancy. Allowing us to do
what we do best provides more time for you to do what you do best.
True emergencies do happen, so, by all means, please
contact us and the staff will help us as much as possible. On the other hand, please take steps to insure that emergency
requests are held to a minimum. The
Purchasing staff provides service to many taskmasters, serving over 130
departments plus all grant projects; therefore, we appreciate your patience
and will offer whatever help is possible.
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