Carnegie Mellon University Purchasing Policy by Abby Rupsa

VIEWS: 19 PAGES: 9

									    Loyola University Chicago Purchasing Policy
    The Loyola University Chicago Purchasing Policy comprises four component parts as detailed
    below: (1) Purchasing, (2) Competition, (3) Conflict of Interest & Buying Ethics, and (4) Small
    Business Utilization (Disadvantaged, Women-Owned, Veteran-Owned, Service Disabled Veteran-
    owned and HUBZone Business Enterprises).

(1) Purchasing
    At Loyola University Chicago, most purchasing actions are conducted by a decentralized
    purchasing authority. Purchasing activities include obligations for ethical behavior, compliance
    with government regulations, proper transaction documentation and fiscal responsibility. The
    Purchasing Department mission is to assist departmental Users (those who have influence into the
    acquisition decision-making process) in fulfilling these obligations, as well as to ensure consistent
    purchasing practices across the university.

    Policy Statement
    The goal of purchasing policies and procedures is to provide reasonably priced, high-quality goods
    and services to end users while preserving organizational, financial and civic accountability.

          Buyers and Users should familiarize themselves with Loyola University Chicago policies
           and procedures relevant to their purchasing activities.
          Buyers must complete Procurement Card training and sign all applicable forms, statements
           and certifications before making a purchase with the Procard. The forms include, Procard
           Cardholder Agreement, Buyers’ Code of Ethics, Anti-Kickback Clause, and a Conflict of
           Interest Disclosure Statement.
          The Loyola Purchasing Department has developed a Preferred Supplier Program utilizing
           suppliers who have demonstrated the ability to offer competitive market pricing and added
           value to Loyola. Preferred Suppliers can be used, at any dollar level, with the review and
           approval of Sponsored Program Accounting when spending grant funds. Buyers are
           encouraged to purchase goods and services from Preferred Suppliers. The Preferred
           Supplier Directory can be found on the Loyola Procard website. The link to the website is:
           http://www.luc.edu/business_services/purchasing_procard.shtml. The website can be
           updated at any time depending upon deletions/additions to the Preferred Supplier base.
          The use of non – preferred suppliers is allowed, but requires individual buyers and users to
           provide accurate, adequate and complete supporting documentation for any transaction
           equal to or exceeding the Competitive Threshold of $5,000 for federally funded
           transactions. Purchases equal to or exceeding this amount require the establishment of
           competition - this would include a quote/proposal, a controlled bid (implemented and
           controlled by Loyola), source justification, and a price analysis.
           The Purchasing Checklist and Bid Summary Form can be utilized to obtain supporting
           documentation for purchases. The link to access this form is:
           http://www.luc.edu/business_services/pdfs/Purchasing_Checklist.pdf




                                                                                                            1
     Buyers should use the purchasing tool (i.e. Loyola Procard, Lawson Purchase Order, or
      Loyola Check Requisition) most appropriate for the purchase.
     Buyers and users should utilize suppliers and service providers that make use, to
      practicable extent, of materials and services that support Loyola University Chicago’s
      environmental mission and goals of reducing, reusing and recycling.

Buyer’s Responsibilities
     Buyers are encouraged to purchase goods and services from Preferred Suppliers. The use of
      non-Preferred Suppliers for expenditures above the Competitive Threshold must be
      documented in accordance with Loyola University Chicago requirements and government
      regulations. The Buyers Matrix and the Purchasing Checklist and Bid Summary Form can
      assist the buyer’s with this task. These forms are found on the Loyola Purchasing website.
      Choose the appropriate purchasing tool (i.e. Loyola Procard Card, Lawson Purchase Order,
      Loyola Check Requisition, and Web-based ordering, etc.) for the transaction.
     Reconcile Loyola Procard transactions before each download to the General Ledger (2
      times per month).
     The user of a Loyola Procard ( Purchasing Department Buyer or Department Procard
      holder) must re-allocate Procard expenses to the appropriate department budget account or
      grant account as appropriate and necessary. For additional information on Sponsored
      Program Accounting’s “ Cost Transfer Policy” for grant funds, please access the following
      link: http://www.luc.edu/spa/pdfs/Cost%20Transfer%20Policy.pdf
     Maintain security of purchasing cards and related card numbers and expiration dates,
      including immediately reporting a lost or stolen card.

Purchasing Department Responsibilities
     Provide appropriate training and documentation.
     Provide a Purchasing Manual – the Loyola Purchasing Manual can be found on the Loyola
      Purchasing website at the following link:
      http://www.luc.edu/business_services/pdfs/Loyola_University_Purchasing_Manual_rev_2.
      pdf
      The manual describes policies and procedures in detail, including guidelines for using
      purchasing tools and for committing Loyola University Chicago and government funds.
     Establish and maintain a Preferred Supplier Program that identifies qualified suppliers,
      provides a competitive atmosphere, analyzes bids and proposals, and documents Preferred
      Supplier agreements, including terms and conditions, discount pricing, product or service
      quality, delivery performance, and government certifications.
     Regularly reevaluate Preferred Suppliers for performance, price adherence and customer
      satisfaction. The Purchasing Department accomplishes this by routing a Loyola Supplier
      Performance Survey to selected requestors of products and or services to obtain feedback.
      The Purchasing Department will contact the appropriate supplier(s) to discuss and resolve
      any issues. The department completing the survey will be contacted and advised
      concerning any resolution of a problem and or concern.
     Provide purchasing tools for committing and forms for documenting all purchasing
      transactions.
     Offer assistance in the proper finalization of any purchase.
     Resolve supplier - customer problems and disputes.
     Approve federally funded transactions equal to or exceeding $10,000 with non-Preferred
      Suppliers prior to commitment to the supplier.
                                                                                               2
          Operate within the guidelines of the Loyola Contract Policy. The link to the policy is at:
           http://www.luc.edu/business_services/pdfs/University%20Contract%20Policy_1.pdf
          All documentation generated and or received by the Purchasing Department will be
           electronically stored for future reference for a period of seven years.

(2) Competition
    Loyola University Chicago is required under the Office of Management and Budget's Circular A-
    110 "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher
    Education, Hospitals and Other Non-Profit Organizations" and by Federal Acquisition Regulations
    (FARs) to establish a competitive environment for the purchase of goods and services. The use of
    competitive bidding also makes good business sense. Purchasing Department policies and
    procedures on competitive bidding ensure that Loyola Buyers process transactions in a uniform
    manner consistent with federal requirements and good business practice.

    Policy Statement
    Loyola University Chicago makes every effort to maximize competitive procurement opportunities
    by soliciting competitive bids and proposals for goods and services prior to issuing or awarding
    credit card commitments, purchase orders, Loyola Check Requisitions, web-based orders or
    contractual documents.

          The University has set the Competitive Threshold for Loyola University at $5,000.
           Purchases equal to or exceeding this amount requires the establishment of competition -
           this would include a quote/proposal, a controlled bid (implemented and controlled by
           Loyola), source justification, and a price analysis. Buyers and Users are required (where
           competitive vendors can be identified) to solicit competitive bids and proposals at and
           above the Competitive Threshold, and to make the purchase from the lowest, evaluated
           responsible supplier. All non-competitive acquisitions at or above the Competitive
           Threshold must be adequately and appropriately justified and documented. Supplier bids,
           quotations and proposal information are generally considered confidential and should not
           be disclosed or discussed with other suppliers.
          Suppliers listed in the Preferred Supplier Directory are audited regularly to insure that
           price, service, quality and delivery are being maintained at desired levels. For purchases
           under $100,000, no further bidding or documentation action need be taken by Buyers or
           Users purchasing goods and/or services from Preferred Suppliers.
          Decisions on purchases should be based on the supplier’s compliance with Loyola
           University specifications, terms and conditions, price, delivery and capacity to perform.
           Loyola University business should be awarded in the best interest of Loyola based on the
           merits of the competition. Unsolicited proposals may be considered as long as they are in
           the best interest of Loyola University Chicago.
          Loyola University Chicago does not engage in or submit to the practice of reciprocity in
           any purchase transaction.




                                                                                                        3
     Buyer’s Responsibilities
           Buyers are encouraged to purchase goods and services from Preferred Suppliers. The use of
            non-Preferred Suppliers for expenditures above the Competitive Threshold of $5,000 must
            be documented in accordance with Loyola University requirements and government
            regulations (ref: Buyer Actions Matrix found on the Loyola Purchasing website – Link to
            access the Buyer’s Matrix is:
            http://www.luc.edu/business_services/pdfs/Buyer%27s_Matrix_12-29-08.pdf
           Complete transaction process to insure products are ordered and received by the internal
            customer in a timely manner.
           Choose the appropriate purchasing tool (Loyola ProCard, Lawson Purchase Order, Web-
            based ordering, and Loyola Check Requisitions) for the transaction.
           Reconcile Loyola ProCard transactions monthly, as needed.
           Re-allocate Loyola ProCard expenses, as appropriate and necessary.

     Purchasing Responsibilities
           Provide appropriate training and documentation to establish a competitive environment for
            the University and selected suppliers.
           Provide a Purchasing Manual that describes policies and procedures in detail, including
            guidelines for competitive bidding.
           Establish and maintain a Preferred Supplier Program that identifies qualified suppliers,
            provides a competitive atmosphere, analyzes bids and proposals, including terms and
            conditions, discount pricing, product or service quality, delivery performance and
            government certifications.
           Regularly reevaluate Preferred Suppliers for performance, price adherence and customer
            satisfaction.
           Audit selected transactions for competitive bidding compliance and documentation.
           Offer assistance in the proper finalization of any purchase.
           Resolve supplier - customer problems and disputes related to competitive bidding.

(3) Conflict of Interest and Buying Ethics
     Faculty and staff who have purchasing or purchase approval authority (collectively "Buyers and
     Users") must be aware of the standards of ethical behavior that apply to their purchasing activities.
     They must avoid unethical conduct and conflicts of interest in purchasing goods and services. The
     first and most important line of defense against conflicts of interest or commitment must be the
     university members themselves. The university, therefore, strongly encourages university members
     to disclose to the appropriate dean or department head their outside commitments on a regular
     basis (e.g., during annual departmental reviews, evaluations, or whenever those commitments
     undergo significant change). The university has relied and shall continue to rely on the good
     judgment, professional commitment and moral ethics of the university members to protect
     themselves and the university from conflicts of interest and commitment.




                                                                                                        4
Policy Statement
Conflicts of interest occur when Buyers and Users are in a position to make or influence a
procurement decision from which they might directly or indirectly receive financial benefit or
which might give improper advantage to their associates. Buyers and/or Users should not maintain
relationships with firms or individuals if there is a chance that these relationships might influence
their buying decisions on behalf of Loyola University Chicago.

      Buyers must annually complete a Purchasing Conflict of Interest Disclosure Form
       describing the existence and nature of any such conflict. Forms are to be retained in the
       Purchasing Department.
      Buyers and Users must inform their supervisors if they know or suspect that: a supplier is a
       Loyola University employee, a family member of a Loyola University employee, or a
       Loyola University employee has a substantial ownership interest in a supplier’s firm, or a
       Loyola University employee will receive financial benefit from a purchase.
      Purchases from Loyola University employees and purchases over $1,000 from firms in
       which Loyola University employees have a substantial ownership interest must be
       reviewed and approved by the Purchasing Manager and the Associate VP, Business
       Services.

Conflicts of Interest - Identification & Resolution Procedures
      Buyers and Users should use good judgment, professional commitment and ethics to
       protect themselves and Loyola University from potential conflicts. Administrators and
       supervisors should make Buyers and Users aware of relevant policies and create, by
       example, an atmosphere consistent with them.
      Buyers and Users in a position to influence a Loyola University acquisition decision for
       which they might receive material benefit should disclose the nature of the conflict to
       others involved in the decision. A conflict would include if any employee, officer, agent,
       any member of his/her family, his/her partner or an organization which employs, or is
       about to employ any of the parties listed above, has a financial or other interest in the firm
       selected for the award. Whenever possible, those with potential conflicts should remove
       themselves from involvement in the decision. If the individual continues to participate in
       the decision process, discussion with supervisors and documentation of the potential
       conflict should be presented to the appropriate dean, director or department head and to the
       Purchasing Manager.
      Some funding agencies of the federal government require grantees to conform with other
       disclosure and conflict of interest resolution procedures. The Office of Sponsored Program
       Accounting has information about these agencies and their specific requirements.

Code of Ethics
Loyola University Chicago subscribes to the intent of the National Association of Educational
Procurement (NAEP) Code of Ethics. Loyola University Chicago’s Code states that Buyers will:

      Give first consideration to the objectives and policies of their institution.
      Strive to obtain the maximum value for each dollar of expenditure.
      Decline personal gifts or gratuities in accordance with Policy.
      Grant competitive suppliers equal consideration insofar as state or federal statute and
       institutional policy permit.
                                                                                                    5
      Conduct business with potential and current suppliers in an atmosphere of good faith,
       devoid of intentional misrepresentation.
      Demand honesty in sales representation, whether offered through the medium of a verbal or
       written statement, an advertisement, or a sample of the product.
      Receive consent of originator of proprietary ideas and designs before using them for
       competitive purchasing purposes.
      Make every reasonable effort to negotiate an equitable and mutually agreeable settlement
       of any controversy with a supplier; and/or be willing to submit any major controversies to
       arbitration or other third party review, insofar as the established policies of my institution
       permit.
      Accord a prompt and courteous reception insofar as conditions permit to all who call on
       legitimate business activities.
      Cooperate with trade, industrial and professional associations, and with governmental and
       private agencies for the purposes of promoting and developing sound business methods.
      Foster fair, ethical and legal trade practices.
      Work on behalf of the interests of the University solely, and avoid situations that may
       result in personal benefit or gain to the buy.
      Loyola University Chicago is an Associate Member of the National Association of
       Educational Procurement. For additional information about the NAEP, please access the
       following link: http://www1.naepnet.org/abcode.htm

Gift Guidelines
It is essential to Loyola University Chicago and its subsidiaries, its suppliers, contractors and
consultants that all decisions and actions regarding acquisitions are based upon proper business
considerations and are not influenced in any way by personal obligations or opinions.

Therefore, individuals with expenditure authority on behalf of the Loyola University must avoid
any behavior that involves a real conflict of interest or any appearance, however remote, of using
affiliation with Loyola University as a means of furthering personal interests or showing favoritism
to any individual, or current or potential supplier.

Requesting or accepting any favor or special consideration from any individual or organization
doing or seeking to do business with Loyola University that may result in any direct or indirect
financial gain by an employee (or a member of his/her family) with the capability of influencing a
source selection process involving that individual or organization, is not allowed.

No one with the capability of influencing the selection of an individual or organization doing or
seeking to do business with Loyola University should accept entertainment, gifts, or favors with a
value in excess of $250.00 without first obtaining the written approval of their immediate
supervisor or higher level management. (Professional samples, i.e., textbooks for review provided
by publishers, are not considered gifts or gratuities.) No employee should accept any gifts or
gratuities that are provided by persons with whom Loyola University has business dealings under
circumstances that suggest the donor intends to influence the judgment or conduct of the employee,
or Loyola University business decisions.

Courtesy gifts, such as flowers, standard event tickets and business meals, as well as unsolicited
advertising or promotional materials (pencils, calendars, etc.) that are valued at less than $250.00
in the aggregate may be accepted. Gifts in excess of $250.00 are generally not permitted
(exceptions may be golf tournament outings, non-standard event tickets, computer software, etc.).

                                                                                                       6
    Exceptions must be reported to at least the next level of supervision, in writing (i.e., e-mail or
    memorandum).

    If any employee with the capability of influencing the selection of an individual or organization
    doing or seeking to do business with Loyola University receives a gift that is contrary to this policy,
    the employee's immediate supervisor should be notified and the gift returned to the sender with a
    letter stating that the receipt and acceptance of the gift(s) is contrary to Loyola University policy.
    Major exceptions to this policy should be reviewed by the Associate Vice President for Business
    Services to determine if special circumstances exist to warrant the acceptance of a gift from either
    a supplier or vendor, or to determine whether a gift should be declined or returned.

    Should a questionable situation arise, the employee shall consult his or her immediate supervisor
    or the Purchasing Manager for guidance and disposition.

    Anti-Kickback Clause
    Loyola University Chicago requires all Loyola Buyers to read, understand and sign off on this
    clause, which is distributed annually to all Buyers by the Loyola Purchasing Manager. The
    Purchasing Manager will coordinate this effort and maintain a file of the signed Anti-Kickback
    Clause for each Buyer. The Purchasing Manager will also sign the document each year.

    Definition: "Kickback" as used in this clause means any money, fee, commission, credit, gift,
    gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to
    any prime contractor (university and/or principal investigator), prime contractor employee,
    subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding
    favorable treatment in connection with a prime contract or in connection with a subcontract.

    Clause: The Anti-Kickback Act of 1986 (41 U.S.C. 51-58) prohibits any person from: providing
    or attempting to provide or offering to provide any kickback; soliciting, accepting or attempting to
    accept any kickback; or including, directly or indirectly, the amount of any kickback in the
    contract price. The Act imposes criminal and civil penalties on any person who knowingly and
    willfully engages in the prohibited conduct addressed in the Act [FAR 3.502-2 (b) and (c)].

    Documentation
    Loyola University Chicago’s Conflict of Interest Disclosure Form, Buyers’ Code of Ethics, Gift
    Guidelines for Employees, and Anti-Kickback Clause are distributed annually to Loyola Buyers.
    Buyers should make sure they read and understand these requirements, sign the forms, and return
    them to the Loyola Purchasing Manager.

(4) Small Business Utilization
    Loyola University Chicago is committed to supporting small business enterprises, including
    disadvantaged, women-owned, veteran-owned, service disabled veteran-owned and HUBZone
    business enterprises, in its purchasing programs. Small business enterprises are defined by the
    federal government in FAR 19.102. Categories of socially and economically disadvantaged small
    business enterprises are defined in FAR 19.001.




                                                                                                          7
Policy Statement
     Awards from federal government or other sponsoring agencies may mandate different
      participation goals. It is Loyola University Chicago’s intent is to work with small business
      enterprises, disadvantaged, women-owned, veteran-owned, service disable veteran-owned
      and HUBZone businesses whenever it is feasible to do so.

      Success depends on the active commitment of all Buyers and Users. Loyola University’s
      procurement activities should be as inclusive as possible to allow small, disadvantaged,
      Women owned, veteran owned, service disabled veteran owned, and HUBZone business
      enterprises the maximum practicable opportunity to participate in providing goods and
      services to Loyola University.

     The degree of utilization of small, disadvantaged, women-owned, veteran-owned, service
      disabled veteran-owned and HUBZone business enterprises should be considered along
      with other selection factors, such as cost, when choosing vendors. In addition to meeting
      contractual obligations and federal, state and local requirements to include small business
      program suppliers in Loyola University’s bidding process, Loyola is also committed to
      encouraging these suppliers to compete for business. To be sure that such suppliers are not
      overlooked, use the following guidelines or resources:

             (1) Contact the Purchasing Department to help identify appropriate suppliers.

             (2) Consider breaking an order into smaller installments to give smaller businesses
             an opportunity to supply items (but not as a way to avoid Competitive or
             Requirements Thresholds).

Buyers Responsibilities
     Use best efforts to consider the utilization of small, disadvantaged, women-owned, veteran-
      owned, service disabled veteran-owned and HUBZone businesses.

Department & User Responsibilities
     Make sure departmental Users use best efforts to comply with their best efforts to consider
      the utilization of small, disadvantaged, women-owned, veteran-owned, service disabled
      veteran-owned and HUBZone businesses.

Purchasing Department Responsibilities
     Use best efforts to locate, solicit and contract small, disadvantaged, women-owned,
      veteran-owned, service disabled veteran-owned and HUBZone businesses into the
      Preferred Supplier Program.
     Provide information related to locating all categories of small businesses.




                                                                                                     8
Contact Information
Questions about these policies should be directed to the Loyola Purchasing Department,
Purchasing Manager @ 8-3607. Questions regarding the specific requirements of governmental
grantors should be directed to the Office of Sponsored Program Accounting @ 5-8730.


Related Policies and Documents
Loyola University Chicago Employee Code of Conduct Policy and Employee Conflict of Interest
Policies, found at: http://www.luc.edu/finance/pdfs/codeofconductpolicy.pdf

Loyola Purchasing Manual found at:
http://www.luc.edu/business_services/pdfs/Loyola_University_Purchasing_Manual_rev_2.pdf

Procurement Card (Loyola Procard) information found at:
http://www.luc.edu/business_services/purchasing_procard.shtml




                                                                                              9

								
To top