Purchasing
What you need to know to expedite purchases
Rensselaer’s Responsibility
Research Institute – receives federal funding
Compliance with Federal Acquisition
Regulations
Procedure consistency throughout Institute,
regardless of funding source
Federal Guidelines
Free and open competition to maximum
extent practical
Justification for non-competitive purchases
Fair and Reasonable Pricing
Vendor Diversity Policy
Vendor Diversity Database
http://www.admin.rpi.edu/SBPS/index.html
Bid Solicitation
Less than $2,500
1 quote required
Must secure reasonable prices
Greater than $2,500
Three written quotations must be obtained
whenever possible – Check vendor diversity
database for quote opportunities
Exceptions at discretion of Purchasing Dept.
Capital Equipment
All capital equipment purchases for less than
$50k must be budgeted in the department’s
operating budget.
All other capital equipment purchases (in
excess of $50k) need to be approved by the
Finance Division
During budget process
Submit CER (Capital Equipment Request)
Types of Solicitation
Always feel free to contact purchasing for help or
assistance in any purchasing endeavor.
Request for Quote – suppliers commit to price
Request for Proposal – method to gather information
and pricing when some elements are unknown
(Contact Purchasing)
Request for Information – Formal method to gather
information (Contact Purchasing)
Exceptions from Bidding
NY State Contracts
Need NYS Contract number
Due diligence for fair and reasonable pricing
Competitively Bid Consortium Contracts
Obtain qualified consortium organizations from Purchasing
Due diligence for fair and reasonable pricing
Sole / Single Source Purchases
Written justification
Statement as to only vendor
Document vendor search
Reasonableness of Price
Sole / Single Source
Sole source – Only 1 vendor is capable of
providing a particular item or service
Single source – Product is available from
other vendors, however, for specific reasons it
must be purchased from a specified vendor
Insurance Requirements
Any services being performed on campus need to be
submitted on purchase requisitions due to potential
insurance requirements. (The Purchasing Dept. needs
to make this determination.)
Contract Review
All contracts are reviewed in an effort to
mitigate risk for Rensselaer
Terms and conditions are negotiated after
review is complete
Only those individuals with signing authority
may sign contracts – please forward contracts
to Purchasing for review and signature
Preferred Vendor Agreements
Purchasing has begun to establish these
agreements based upon historical yearly
spend
Provides opportunities for cost savings to
Rensselaer based on aggregation of buying
power
Success is dependent on campus involvement
and usage of these agreements
Direct Payments
Very limited use:
Advertising Conference Registrations
Honorariums Postage
Awards / Prizes Employee Reimbursement
Insurance (Risk Mgmt only) (Not Travel)
Books Express Mail/Freight
Memberships / Dues Subscriptions
Business Dinners /Lunches Fees
Medical Services (Infirmary Utilities (incl. Cable)
Only)
About the Purchasing Card
Our card offers a “one card solution” for purchase
transactions, capital equipment purchases, travel and
cash/ATM withdrawals
The Card is in the user’s name, but Rensselaer pays the bill
and is responsible for any liability incurred
The only person authorized to use The Card is the person to
whom it was issued and who is responsible for all
transactions processed on The Card
Cardholder/Liaison Responsibility
Abide by all policies and procedures governing the use of
the card
Maintain a monthly purchase transaction log and/or travel
transaction log
Edit transactions to reflect current accounting information
to be charged
Notify Bank One or the Card Administrator of
unauthorized charges
Reconcile transactions recorded on a monthly purchase or
travel log against the monthly bank statement
Retain all purchasing card records in the department,
readily available for review or audit
Limits and Exclusions
Spending Limits per Transaction
Determined by individual department, but no greater than
$2,500 unless authorized in writing by the appropriate
cabinet member or dean, and approved by the President.
Spending Limits per Cycle
Monthly cycle begins on the 24th and ends on the 23rd
Expenditure Type Exclusions
Other restrictions governed by the Purchasing Policy and
Procedure Manual
Purchasing Capital Equipment, Component or
Fabrication Parts
The total cost must be less than $2,500
Purchases must comply with the Office of Property
Administration’s policies
The account code must be edited in Banner to a valid capital
equipment account code
A listing of property account codes and descriptions is
available in the Purchasing Department’s Online Card
Manual
Purchase Process
Make a *Educ Discounts Record Trans. on
Purchase *Tax Exempt Purchase Log
*Shipping Info
*Obtain Receipt
Maintain Receive Item
Records Review Vendor
Invoice/Receipt
Reconcile Log Edit Journal Match Receipt
to Bank Voucher in to Purchase
Statement Banner Log
Purchasing Card
Non-Compliance Policy
Cardholders are required to abide by all policies and
procedures governing the use of the card.
Infractions may require corrective action, retraining,
or may result in card suspension or revocation. The
policies are outlined in the Purchasing Card Manual
online at
http://www.admin.rpi.edu/purchasing
Supplier Diversity
Rensselaer’s Small Business Policy
Endorsed by Dr. Shirley Ann Jackson – 2000
“I am in full agreement with this policy and
expect each department to extend its best effort
to comply with it. Every department needs to be
knowledgeable of the policy and optimize the
use of small business concerns”.
www.admin.rpi.edu/sbps
Communiversity
City of
Business Initiatives
Troy Spend Goals
2001 $2.60 million
2002 $2.60 million
2003 $2.73 million
2004 $2.86 million
2005 $3.00 million
HigherMarkets eProcurement
Solution
One Window Solution
On-Line Requisition Process
Procurement Card
Automated Approval Process
Budgetary Approvals
Special Approvals
Sourcing Functionality
Preferred Vendor On-Line Catalogs
Catalog Content
Punch-Out
Hosted
HigherMarkets eProcurement
Solution
Integration with Banner
3 Phase Integration
Phase 1 - On-Line Requisitioning and PO Issuance
Completion expected January 2005
Phase 2 – On-Line Receiving, PO Changes, and
FAMIS
Completion expected June 2005
Phase 3 - Settlement
HigherMarkets eProcurement
Solution
Expected Benefits
Improved Order Cycle Time
Elimination of Paper and Manual Processes
Improved Control through Workflow
Cost Savings
One Easy Way to Purchase
Additional Training Available:
Requisition Completion
Indefinite Delivery / Indefinite Quantity
Agreements
Blanket Purchase Agreements
Contact Information
Please visit our websites:
www.admin.rpi.edu/purchasing/ie40_index.asp and www.admin.rpi.edu/sbps
Don Ammerman Kathy McAuley
Strategic Procurement Manager
Purchasing Agent
ammerd@rpi.edu mcaulk@rpi.edu
x3265 X 2577
Linda Cook Ann LoPonto
Director Materials Management
Purchasing Agent
cookl@rpi.edu lopona@rpi.edu
X 2156 X 8439
Ron Hajduk Eddie Jackson
Associate Director Small
Purchasing Agent
hajdur@rpi.edu Business Procurement Services
X 6104 jackse@rpi.edu
X6597
Mike Higgins
Eileen Biggins
Purchasing Agent
higgim@rpi.edu Procurement Card Administrator
X 8692 biggie@rpi.edu
X2724