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www.princeton.edu/purchasing Vol. 4, No. 1, March, 2005
Purcha$ing $en$e
Princeton University’s Purchasing E-Newsletter
2004 NPI Award Recipient
Welcome “How to Buy” Session Gas Cylinder Rentals
The Purchasing Department The Purchasing Department has Gas cylinders are difficult to track
presents this e-newsletter to the the responsibility for obligating the on campus because they are often
Princeton University community University and for making the final relocated between labs and result
with the goal of providing timely decision on the source of supply in on-going demurrage charges.
and effective information to assist and bidding/price negotiations, The Purchasing Department has
you with your procurement needs. consistent with University policy, compiled information on the most
We welcome any comments or state and federal acquisition cost-effective method to handle gas
suggestions for future articles. regulations, and sound purchasing cylinder rentals.
practices. A comprehensive “How New Cylinders - We recommend
Contacts to Buy” information session was paying for new cylinders with
Don Weston, CBM, Director, 8-3407 conducted in January in department credit cards instead of
Brian Rounsavill, CPM, APP, conjunction with the Treasurer’s issuing purchase orders or paying
Associate Director, 8-3402 Office training sessions. The with check vouchers. Cylinder
Mark Aanonsen, Senior Purchasing presentation may be downloaded rental fees are acceptable credit
Agent, 8-3418 from the Purchasing website. card expenses and it is a more
Lisa Ridolfi, Senior Purchasing Departments may contact the efficient means for processing
Agent, 8-1920 Purchasing Department to set up reoccurring rental charges.
Tracy Lomurno, Buyer, 8-5887 individual appointments.
Nancy Matthews, Buyer, 8-5886
Old Cylinders - In many cases,
Joe Lane, Admin. Support, 8-6847
departments have been paying
Carmella Cruser, Capital, 8-3413 Travel Portal monthly cylinder rental charges for
Sam Formica, Surplus, 8-2347 A number of changes have been
cylinders that may be lost, returned
Korrin Lyszczak, Contracts Support made to the University’s Travel
Specialist, 8-2495 or moved to another department.
Portal. Please feel free to share your
John Mollica, PeopleSoft, 8- 8223 We recommend that in cases where
comments and/or suggestions with
Mary Erickson, Boise Rep., 8-3400 departments are unsure of the
regard to enhancing the portal.
Rebecca Garner, Arbee Rep., status, that it may be more cost-
(908) 851-5159
http://www.campustravel.com/univ
effective to pay the lost cylinder
ersity/princeton/. Training on the
fee instead of continuing to pay the
Purchasing Department
use of the Travel Portal is available
monthly rental fees.
Office of the Treasurer upon request.
Princeton University Annual Billing - In each case, for
2 New South, P.O. Box 33 both old and new cylinders, it may
Princeton, NJ 08544-0033 USA
Science Fair
The Purchasing Department and be more cost effective to pay a
Phone: (609) 258-6369 one-time, annual cylinder rental fee
Fax: (609) 258-1169 Fisher Scientific will be organizing
a Science Fair to be held from instead of managing the monthly
Email: purchase@princeton.edu
10:00 AM – 2:00 PM on demurrage charges depending
Web: www.princeton.edu/purchasing
Wednesday, May 18th in the upon the length of time you will
Multipurpose Room in the Frist need the cylinder.
Campus Center. Over 25 science Contact your sales representative
vendors will be represented at this for more information.
event. All campus users are invited.
Purchasing $en$e Page 2 March, 2005
Shipping Study Vendor Fair Signature Authority
In the fall of 2004, the Purchasing All faculty and staff are invited to The Purchasing Department was
Department, in partnership with join us on Tuesday, November 1, established, under the direction of
the Firestone Library Shipping and 2005 between 10:00 AM and 2:00 the Director of Purchasing, to
Receiving Department, performed PM in Dillon Gym for the annual assure that all purchasing activities
a comparative analysis of the three Vendor Fair. Come see the many are carried out in accordance with
delivery service vendors used on products and services offered by all applicable laws, directives from
the Princeton University Campus: our contract vendors and their the Board of Trustees, and sound
DHL, FedEx, and UPS. The product displays and exhibits. business practices. Only the
purpose of this study was to More details to come this summer. Purchasing Department has the
directly compare both the rates and authority to enter into a contract or
lease, or to obligate the University
service to identify the best value Document Destruction in any way unless: (1) the Trustees
and carrier for each type of
overnight express next-day As stewards of confidential have specifically authorized an
delivery and ground service and to records, managers have an individual to do so in writing, or (2)
develop recommendations for the obligation to ensure that all records the Director of Purchasing has
campus community. pertaining to faculty, staff, or delegated purchasing authority to
students are held in strict specific individuals for a specific
The intent of this study was to confidence and that they be term or purpose. Individual faculty
simply test whether the industry properly disposed of consistent and staff members are not
perceptions are true by sending the with Federal and State regulations, authorized to sign on behalf of the
same package via the three and University policy. University, or to bind the
different contract couriers to see University in any manner. New
who is cheaper and which The Purchasing Department has Jersey Law provides that
packages arrive first. Firestone compiled information on the individuals who do not have
Library selected four addresses that various document destruction delegated authority, and who enter
are used for regular shipments of options that are currently available into unauthorized agreements, may
inter-library loan books and in support of the University's be held personally responsible for
international and both U.S policy on Information Security. the cost of the goods or services
Midwest and U.S. West coast This site is not intended to provide purchased. Accordingly, any, and
addresses were chosen specifically policy specifics on how long all, vendor forms of agreement such
to test the upper limits of the records must be retained, but rather as, quotations, contracts, leases,
pricing categories, as experience outlines the three options that are agreements, etc., should be sent to
has shown that the campus available for the proper disposal of the Purchasing Department for
community opts to send packages such information. Departments review and signature.
to East Coast destinations in more should continue to follow
economical ways. procedures previously established.
Conflict of Interest
The study found that while United Employees of Princeton University
Parcel Service was the most Purchasing Facts who act on its behalf have an
economical overall carrier for both Each year, Purchasing manages: obligation to avoid activities or
express delivery and ground Over 40,000 purchase orders ~ situations which may result in a
service, there is a considerable $80 million conflict of interest or the
advantage in using not one, but Over 50,000 e-transactions ~ appearance of conflict of interest.
several carriers, depending upon $7 million Employees must not use their
the specific type of service, Over 50,000 p-card transactions University positions to influence
package and destination. The ~ $9 million outside organizations or individuals
for the direct financial, personal or
complete study, including the Over 400 contracts ~ $2 million
comparative data, may be retrieved professional benefit of themselves,
in cost savings
members of their families or others
from the Purchasing website. A Over 5,000 capital assets and
follow-up will be conducted soon. with whom there is a personal
over 18,000 surplus items
relationship.
Purchasing $en$e Page 3 March, 2005
Proper Documentation Sole Source Small Business
All University purchases are made Justification Spotlight
in accordance with the University A sole source purchase is one This month, we are pleased to
Purchasing policies regardless of where there is only one vendor highlight Computer Management
the source of funds. A standard set capable of providing an item or Corporation (CMC). CMC is our
of bid and justification procedures service, and therefore it is not preferred contract vendor for all our
are required to properly document possible to obtain competitive bids. Hewlett-Packard and Xerox Printer
all purchases to comply with A single source purchase is one purchases. CMC is a Minority,
Federal, State and University where there are multiple sources of Women-Owned business that was
requirements. This documentation supply, but for specific reasons the established in 1991 and became an
shall be sufficient to constitute a item or service must be purchased official Purchasing contract vendor
complete history of the actions from a specified vendor. For in 2001.
associated with the establishment of purchase transactions exceeding
the order for the purpose of: 1. $2,500 in total value when it is Being a smaller business, CMC has
providing a complete background/ deemed that there is only one viable been able to provide the Princeton
history on the order; 2. supporting source for the item or service that is campus with a "personal" touch.
any actions taken; 3. providing essential to the needs of the CMC can handle special delivery
information for review and University, and it has been requests, custom websites for
investigation; and 4. furnishing determined that competitive Princeton-specific pricing (see
essential facts in the event of a bidding is not possible, the below), and in most cases they can
dispute. requisitioning department will be provide desktop delivery and setup
required to complete the Sole for our user community. These
Minimum Bid Source Justification Form. An order services, combined with their very
will not be placed without proper competitive pricing, have made
Threshold documentation, including a written CMC one of our featured vendors.
Bids should be solicited whenever quotation from the awarded vendor.
the items can be purchased from Purchasing has the authority to http://www.cmcusa.com/prince
multiple sources to promote review and challenge any order. tonuniv/ptrs/hp.htm
competitive bidding. Quotations,
http://www.cmcusa.com/prince
either verbal or written, are
tonuniv/ptrs/xerox.htm
recommended for requirements Prepayments
totaling up to $2,499 in value. A It is not recommended to prepay for
In a recent bid solicitation against
minimum of at least three written goods or services, especially for
five other printer vendors, CMC
quotations for requirements totaling goods or services of a high dollar
came in 10% cheaper than the
$2,500 or more. Those items value or ones that require
other competitors, making them the
considered sole/single source or installation or set-up work.
most affordable source.
proprietary must be properly Prepaying in some instances may
justified. Quotations for remove the incentive or leverage to
The Purchasing Department
requirements over $2,500 must be get a vendor to ultimately perform
coordinates small, disadvantaged
in written form. All pricing and their obligation. If it is essential that
business mentoring and training
other information furnished by the the vendor receive a portion of the
sessions to assist such businesses
vendor during the competitive purchase price in advance,
with the bid process. A complete
bidding process must remain Purchasing recommends that no
list of other Small, Disadvantaged
confidential. Purchasing has a more that 50% be paid in advance.
Businesses with whom the
commitment to provide support for “Receiving” on the purchase
Purchasing Department has
small business concerns of all signifies acceptance and will
contracts with is also available
types, and to ensure that the initiate payment after the goods or
online.
University includes the maximum services have been deemed
practical number of small acceptable by the end user.
businesses in the competitive
bidding process to comply with
federal reporting requirements.
Purchasing $en$e Page 4 March, 2005
Nothing is “Free” Almost all vendors typically New Contracts
The following has been condensed have a single solution that fits Atrium Staffing (Temp Staffing)
their specific hardware and
from an NAEB article to remind us B & H Photo (Photographic
that nothing is for “free”. software products.
Supplies)
All vendors have a vested
Blue Raccoon (Furniture)
interest in what they are trying
In today’s high-tech world, the Brandon Furniture (Furniture)
basic problem confronting us is to sell rather than in the
success of the institution. Chamberlin & Barclay
that we’d like to think we know (Fertilizer)
everything about everything, but in Most vendors do not have
trained educators within their Comm Solutions (Cisco
reality, very few of us do. Sooner Routers/Equipment)
or later, when we’ve run out of firms to provide staff-
development training and Corporate Express (Backup
resources - the client department Tapes)
doesn’t know, there are no specs in ongoing support, thus, they
know little of these functions, Fifth Avenue Limo (Limo
our immediate vicinity, the Web
especially in an academic Services)
comes up empty – so we resort to
environment. Gasiors Furniture (Furniture)
vendor-provided specifications.
GovConnection (Computer
It is not uncommon for schools to Nevertheless, many administrators
Peripherals)
and purchasing professionals put
invite vendors to plan their system. Leisure Fitness (Fitness
In many cases, the institution can’t too much design and specification
Equipment)
afford a high-priced consultant or responsibility in the hands of
vendors - primarily because Lloyds Furniture (Furniture)
the time required to go through a Miller Rental & Sales (Tent
personal-services selection process. vendors will do it all "free."
Rentals)
At that point, our only resources Monday Morning Balloons
The result can be that institutions
are vendors. (Flowers & Balloons)
have let profit-seeking, high-
Most vendors have a single pressure, single-product vendors Motorola Inc. (2-Way Radios/
objective - persuading influence what they buy, rather Equipment)
administrators to choose their than making informed decisions Nassau Interiors (Furniture)
particular solution. Thus, they will based on actual needs. Over- Philadelphia Turf (Turf &
usually do cartwheels to design a reliance on vendor solutions can Irrigation Service)
system, write specifications, and leave many institutions with Prism Color Corp. (Brochure
even assist with bidding and equipment that is inappropriate, Printing)
evaluation, in hopes of becoming costly, and sometimes even Suburban Fence (Fencing)
the chosen contractor. After all, obsolete and without the long-term University Sleep Products (Dorm
becoming the contractor of choice support that is so necessary for a Mattresses)
is their sole reason for being in successful solution. Winzer Corp. (Nuts/Bolts)
business. If they are not the
This conflict is part and parcel of
contractor of choice, they have Upcoming Events
the purchasing profession.
gained nothing. • ShoeMobile, April 22, 2005
Handled well, the use of vendors to
assist with specifications can result • Science Fair, May 18, 2005
However, "free" help may not be
in a sterling solicitation. Handled • Capital Inventory, Summer 2005
in the institution’s best interest.
poorly, it can result in a botched • ShoeMobile, October 21, 2005
Consider these predispositions:
procurement, fraught with addenda • Princeton University’s Annual
Most vendors are not educators and laden with protest - and in a Vendor Fair, November 1, 2005
and typically do not know the contract with endless amendments
role their product plays in and years of misery. Purcha$ing $en$e is a publication
teaching and learning, let alone of the Princeton University
administering an institution of Purchasing Department,
higher education. P.O. Box 33, Princeton, NJ 08544
Printed on Recycled Paper.
