Brandeis University Procurement Policy and Guide by btz89935

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									    Brandeis University

Procurement Policy and Guide




                   Department of Procurement Services
                                        July 13, 2004
Table of Contents
SECTION I .................................................................................................................................... 4
   OVERVIEW ................................................................................................................................... 4
   OFFICE OF PROCUREMENT SERVICES ........................................................................................... 4
     Procurement Department Mission.......................................................................................... 4
     Procurement Department Organization ................................................................................. 5
SECTION II .................................................................................................................................. 6
   PROCUREMENT POLICY ................................................................................................................ 6
       I. INTRODUCTION ........................................................................................................... 6
       II. PROCUREMENT APPROVAL REQUIREMENTS .................................................... 6
       III. PROCUREMENT TABLE GUIDE ............................................................................. 7
       III. CONFLICTS OF INTEREST....................................................................................... 8
       V. TAX STATUS ............................................................................................................... 9
       VI. BID REQUIREMENTS................................................................................................ 9
       VII. INDEPENDENT CONTRACTORS........................................................................... 9
SECTION III............................................................................................................................... 11
   HOW TO ORDER MATERIALS AND SERVICES .............................................................................. 11
    Introduction........................................................................................................................... 11
    Procurement Value Table ..................................................................................................... 11
    Purchases of Specialized Scientific Research Materials ...................................................... 12
    What Is A Purchase Order and How Do I Create One?....................................................... 12
    The Requisition ..................................................................................................................... 12
    Purchase Order Changes...................................................................................................... 13
    Purchase Order Cancellations ............................................................................................. 13
    Competition/Bidding ............................................................................................................. 13
    Contracting With Independent Contractors.......................................................................... 15
    University Master Contracts................................................................................................. 15
    Procurement Card ................................................................................................................ 15
    Corporate Card..................................................................................................................... 15
    Tax Status.............................................................................................................................. 15
SECTION IV ............................................................................................................................... 17
   RECEIPT AND PAYMENT OF SERVICES AND MATERIALS............................................................. 17
     Introduction........................................................................................................................... 17
     Central Receipt ..................................................................................................................... 17
     Direct Receipt/Services Receipt............................................................................................ 17
     Packing Slips......................................................................................................................... 18
     Authorization for Payment.................................................................................................... 18
     Invoice Tolerances ................................................................................................................ 18
SECTION V................................................................................................................................. 20
   GENERAL PURCHASING PRACTICES ........................................................................................... 20
     Introduction........................................................................................................................... 20


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       Selecting Qualified Suppliers................................................................................................ 20
       Managing a Bid..................................................................................................................... 21
       Negotiating a Price ............................................................................................................... 22
       Managing Supplier Relationships......................................................................................... 22
APPENDICES ............................................................................................................................. 24




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Section I
Overview
Welcome to the Brandeis University Procurement Guide. The purpose of this document is to
provide you with the information you need to process purchases and make informed procurement
decisions in the simplest manner possible. Brandeis receives substantial funding from federal
agencies and is obligated to maintain a federally approved purchasing system. This Guide details
the procedures needed to ensure purchases meet federal requirements regarding the expenditure
of awarded funds.

In this Guide you will find the "how to’s" of acquiring goods and services at Brandeis. We have
also provided for your convenience an overview of best practices in procurement. The Office of
Procurement Services is your trained purchasing partner and is anxious to assist you in all your
purchases. As procurement professionals, the staff have many insights into best purchasing
practices. They will assist you in working with institution-wide negotiated pricing agreements
and identifying qualified suppliers, and will help you in preparing budget estimates; they will
also facilitate bidding, resolve supplier disputes and generally apply procurement expertise to
your work at Brandeis. Having a purchasing expert involved in your purchases will only enhance
your procurement experience.

Whether you wish to have a procurement representative do all the work or simply assist you, the
earlier we can be involved in your project, the better services we can provide.

The Brandeis Office of Procurement Services (6-4500) is available to answer any questions you
may have regarding the contents of this guide. We encourage you to contact us with any
questions, suggestions or insights you may wish to share.



Office of Procurement Services
Procurement Department Mission
The mission of the Office of Procurement Services is to supply the members of the Brandeis
University community with expertise, policies, and procedures that ensure goods and services are
available in a timely, cost effective manner. The Office of Procurement Services is responsible
for managing these acquisitions in accordance with Brandeis University internal policies.
Members of the procurement staff will seek out and adopt current best business practices
regarding the acquisition of goods and services. The Office of Procurement Services will utilize
the best available technologies to perform its tasks and provide appropriate expertise and training
to the Brandeis University community in these matters. The Procurement Services staff will
serve as a resource to answer all questions and provide required services related to the
procurement of goods and services. If they are unable to assist you, they will refer you to the
appropriate resource.



                                                4
Procurement Department Organization
Reporting to the Associate Vice President of Budget and Planning, the Office of Procurement
Services consists of a team of professionals trained in managing all facets of the procurement
cycle. This includes the sourcing of goods and services, the development of the appropriate
business and contractual relationships with suppliers, order placement, and coordination of
deliveries for goods and services received by the University. Team members are organized by
the departments they are responsible for servicing and by commodity. A listing of the staff and
their responsibilities is provided in Appendix 1 of this Guide. However, while a team member
may possess expertise in a particular commodity or might have responsibility for a particular
department, s/he will be happy to assist you if your designated representative is not available. In
addition to procurement responsibilities, the Office of Procurement Services also administers the
stockroom operations for laboratory supplies located in Kalman.




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Section II
Procurement Policy
The Purchasing Policy is the document that governs the acquisition of goods and services at
Brandeis. The full text of this Policy is provided below. You should familiarize yourself with the
contents of this section. Please refer any questions you may have regarding the Purchasing
Policy to your Procurement Representative.

    I. INTRODUCTION

The Office of Procurement Services within the Office of Budget and Planning is responsible for
the procurement functions of the University. Generally, within guidelines described in this
document, individuals may initiate purchases covered by funds approved in their budgets or
assigned to them from an award. The ability to encumber funds rest within the Procurement
Department. All funds received by the University, regardless of source, are University funds and
must be managed in accordance with University policy. The uses of grant funds are further
restricted by applicable laws, the rules and regulations of the granting entity, and the terms and
conditions of the grant. No action on behalf of the University to purchase, lease, or rent goods,
facilities or services may be taken by an employee of the University except as provided within
this document. This policy includes budget controls to ensure that only individuals with budget
authority (or authorized designees) initiate purchases and, when appropriate, that requesters seek
competitive bids or provide appropriate sole or single source documentation.

    II. PROCUREMENT APPROVAL REQUIREMENTS

Only designated University procurement personnel may act as agents to represent the University
in major purchases, leases, or rental of goods, facilities and services as defined in this document.
In light of this policy, it is imperative that principal investigators, University Budget Managers
and other employees of the University work with appropriate University procurement personnel
early in the planning of major purchases with grant or University funds. Purchases made without
appropriate authorization may become the personal liability of the employee. Violation of this
policy shall be reported to the dean or vice president in charge of the employee committing such
violations, to the Director of Procurement Services, and the Executive Vice President and Chief
Operating Officer, and may lead to disciplinary action, including suspension or termination.

Procurement Authorization Policy for University Funds

     •   Procurement transactions under $10,000 require the signature of the approved University
         Budget Manager or his/her designee(s) unless otherwise limited by the Department Chair,
         or Head, or Director1. Purchase Orders must be signed by the authorized Procurement
         Representative,

1
 Authorization Policies for purchases using the University’s Procurement Card program or other Procurement
Services sanctioned master contracts (e.g. office supply system) are covered by independent, program-specific
procedures.


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     •   Procurement transactions $10,000 and over require the above signature(s), as well as
         signature(s) according to the following authorization limits. POs require the signature of
         the Director or Assistant Director of Procurement Services:

             o Dean, Vice President, Department Chair, Department Head, Department Director,
               or designee (who is not the requisitioner) $10,000 to $100,000.

             o Executive Vice President greater than $100,000.

Procurement Authorization Policy for Grant Funds

Principal Investigator or authorized designee (as maintained by Sponsored Programs
Accounting) signature is required for all grant funded purchases regardless of value.2

The following procurement transactions require additional approval(s):

Outside services with Independent Contractors - all requests must be approved by the Controller
or his/her designee. See section VII below for additional details.

Radioactive materials – all requests will be copied to the Radiation Safety Officer.

Equipment ($2,500 and over) – Equipment is defined as having a value greater than $2,500 with
a useful life greater than 2 years. All equipment will be tagged by accounting for inventory
tracking purposes and requires that an Equipment Acquisition Form be completed. Please see the
Procurement Guide for details.

Procurement transactions greater then $25,000 require documented competitive analysis. Please
refer to Section VI Bid Requirements below for details.

    III. PROCUREMENT TABLE GUIDE

The following table shows the different methods for acquiring goods and services.

             Dollar Value            Procurement                   Payment     Purchase Order
                                         Card*                 Request Form
          $1 to $1499.99**         Recommended                Available – but Available - but not
                                   First Choice               not recommended Recommended
          $1500 and over           Not Available              Not Available   Required

*The Procurement Card program is a new program for the University. In order to obtain a Procurement Card,
contact Procurement Services at 6-4500.
** Regardless of dollar value, purchases of prescription drugs, controlled substances, radioactive material, and select
agents must be placed using a Purchase Order (PO).


2
 Principal Investigator must also authorize all Procurement Card applications associated with grant funded
purchases.


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Exceptions

There are certain acquisitions that are better managed by other systems or procedures. These
include but are not limited to:

•    Advertising Services
•    Single Library Information Resource Item <$5000
•    Construction Contracts greater than $250,000
•    Architectural Contracts greater than $50,000
•    Unique Art or Artwork
•    Employee Travel Reimbursements
•    Employee Non-Travel Reimbursements less than $1500
•    Honoraria
•    Independent Contractors
•    Insurance, including Employee benefit related insurance
•    Legal and Auditing Services
•    Personnel Services (such as temporary help agencies and services)
•    Travel Services
•    Utilities
•    Real Estate Taxes
•    Master-contracts for specific commodities as managed by Procurement Services

Please direct questions about any of the above exceptions to Procurement Services. They will
gladly assist you or direct you to the appropriate party.

    III. CONFLICTS OF INTEREST

The University is governed by the most current “Conflicts of Interest Policy”
(http://www.brandeis.edu/osp/policies/conflictpol.html). In addition, prior to consummation of a
procurement relationship, ethical considerations require members of the University involved in
any part of the procurement process be responsible for full disclosure to the University of any
potential conflicts of interest. In cases where a potential conflict exists, it is important to handle
transactions competitively at an "arm's length," business-like basis.

According to the University’s Conflict of Interest Policy, a Member is considered to have a
conflict of interest when s/he or any of his/her family or associates (to his/her present
knowledge) either (1) has an existing or potential financial or other material interest that impairs
or might appear to impair the individual's independence and objective judgment in the discharge
of responsibilities to the University, or (2) may receive a financial or other benefit from
knowledge of information confidential to the University. The family of an individual includes
his/her spouse, parents, siblings, children and any other person who resides in the same
household. An associate of an individual includes any person, trust, organization or enterprise
with respect to which the individual or any member of his/her family (1) is a director, officer,




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employee, member, partner or trustee, or (2) has a significant financial interest or any other
interest which enables him/her to exercise control or significantly influence policy.


 V. TAX STATUS

Brandeis University is exempt from Massachusetts sales tax. To take advantage of this status,
payments must be made directly by the University to the supplier from the supplier's invoice.
Reimbursements to employees for state taxes paid when procuring goods for the University are
not allowed. For more information on our tax status, contact Procurement Services.

 VI. BID REQUIREMENTS

A formal, written Request For Quotations (RFQ) along with cost/price analysis is required for
purchases greater than $25,000. Copies of the RFQ should be submitted to at least three vendors.
Where competition is not feasible or available, a sole or single source justification document is
required (see Appendix 3 or www.brandeis.edu/offices/procurement for the form). The Office of
Procurement Services can help in obtaining bids or conducting cost/price analysis. If a vendor is
selected without assistance, Procurement Services will require documentation of the bid process,
sole or single source justification and/or cost/price analysis used with the Requisition for
Supplies and Services. Details of the documentation required are provided in the Procurement
Guide.

Brandeis University encourages competitive bidding whenever possible. Bids and their analysis
or explanations of the reason bids were not solicited are recommended for all acquisitions greater
than $10,000. Telephone solicitations may be used for purchases between $10,000 and $24,999.
Telephone solicitations should be documented and this documentation included with
requisitions.

 VII. INDEPENDENT CONTRACTORS

An independent contractor is generally defined as a person engaged in an independently
established business or engaged in an occupation that contracts for work according to that
person's own methods, without being subject to the supervision and control of the University,
except for the results. In all cases, the University will comply with the Federal and State
guidelines with regard to classification of individuals as "independent contractors."

The determination of whether an individual is classified as an independent contractor must occur
before work is commenced. The determination of independent contractor status rests solely with
the Controller’s Office. All relevant documents noted in the Procurement Guide regarding
independent contractors must be provided and approved by the Controller’s Office before
engaging an individual as an independent contractor.




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10
Section III
How to Order Materials and Services

Introduction
This section outlines the procedures and forms that are required to process a procurement
transaction. The Procurement Services staff is available to answer your questions and assist you
in processing any of the required forms.

Procurement Value Table
The following table shows the different methods for acquiring goods and services. These are the
upper limits approved by the University that a department or administrative unit cannot exceed.

Explanations of each category follows:

             Dollar Value            Procurement                 Payment    Purchase Order
                                          Card               Request Form
          $1 to $1499.99*          Recommended –            Available – but Available – but
                                   First Choice             not recommended not recommended
          $1500 and over           Not Available            Not Available   Required

* Regardless of dollar value, purchases of prescription drugs, controlled substances, radioactive material, and select
agents must be placed using a Purchase Order (PO).

Less than $1500 – The University gives you three ways to procure items totaling $1500 or less:

1. Procurement Card: Many individuals have been assigned procurement cards. Payments for
   items purchased on the card are made electronically. The Procurement Card program is a
   new program for the University. If you are interested in obtaining a Procurement Card please
   contact Procurement Services at 6-4500.

2. Payment Request Form: Submit the original invoice with a payment request form to
   Accounts Payable within the Controller’s Office along with a completed W-9 form (if the
   vendor is new). A check will be sent to the vendor.

3. Purchase Order: Although a Purchase Order may create an inconvenience and additional
   work, if the supplier requires one, you may use a Purchase Order.

Note: You may find yourself using a particular supplier many times during the course of the year
for small dollar purchases. In this case, a "Blanket Purchase Order" may be the best means of
conducting business. If you are in this situation, contact Procurement Services to discuss your
options.



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Purchases Greater Than $1500 – A Purchase Order is required for all purchases greater than
$1500 (see the list of exceptions as described in the Procurement Policy in Section II). Except for
the exceptions as defined in this guide, a Payment Request Form may not be used to seek
payment for purchases greater than $1500. An employee’s personal credit card may not be used
at any time for purchases greater than $1500.

If you are purchasing equipment over $2500, an Equipment Asset Form must accompany
the Requisition for Supplies and Services Form, otherwise the order will not be processed.
Equipment is defined as anything valued over $2500 with a useful life greater than two
years.

Purchases of Specialized Scientific Research Materials
Regardless of the dollar value, purchases of controlled substances, prescription drugs, radioactive
materials, and select agents must be done via the PO system. The University has other
procedures that must be followed when procuring these items and use of the PO system helps to
ensure that these procedures will be followed. Please contact the Assistant Director of
Procurement or Procurement Representative for the Sciences if you need to procure any of these
items.

What Is A Purchase Order and How Do I Create One?
There are three reasons for using Purchase Orders: to control the acquisition of goods and
services; to create an "encumbrance" in the general ledger of accounts helping you manage your
budget; and to track the order and payment by providing a single reference number.

To establish a Purchase Order, complete a Requisition for Supplies and Services Form and
forward it to the Office of Procurement Services prior to making your purchase. Procurement
Services generates the Purchase Order and sends it to the supplier. Detailed instructions on how
to process a requisition are provided below.


The Requisition
The Requisition for Supplies and Services Form (see Appendix 2) is the method used to
communicate your purchasing requirements to Procurement Services. It provides the
Procurement Team with knowledge of the particular items or services required, shipping
information, your recommendations for a supply source, expected pricing, accounting
information, and appropriate authorizations. These forms are provided to you by Procurement
Services or via the web at http://www.brandeis.edu/offices/procurement/.

The Requisition for Supplies and Services Form formally authorizes the Procurement Team to
create procurement transactions. While it is possible to change information for purchases (see
Purchase Order Changes), it is best to provide as accurate a record as possible at the inception of
an order. Whether generated from your system or provided by Procurement, all Requisition
Forms should include certain information. See Appendix 2 for details on what is required.




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Purchase Order Changes
A change to a Purchase Order allows an individual to add items or services, change the
chartstring, and increase or decrease prices. A Requisition for Supplies and Services must be
processed to create a change to a Purchase Order. Please include the Purchase Order number on
the requisition form and the text of any Purchase Order change you might request. All
authorizations needed for a Purchase Order are also required on a Purchase Order Change. If the
change increases the value of the Purchase Order beyond the authorization limits of the original
approver, the change must be approved at the next approval level (see Section II of this Guide).
Note only those items you wish to change when processing a Purchase Order change. Any
information not noted as needing change will be left as is.

Purchase Order Cancellations
From time to time, it may be necessary to cancel a Purchase Order. You may have determined
the items or services were not needed or could be better provided from another source, the
supplier may not be able to provide all the items you have requested, or the final payment for the
items or services were less than expected and you wish to eliminate an encumbrance.
To cancel a Purchase Order, please process a Requisition for Supplies and Services noting the
reason you wish to cancel the Purchase Order and the Purchase Order number of the order you
wish to eliminate (exception: when a Purchase Order has less than 5% of its value remaining, an
e-mail message to the Procurement Team requesting the closing of a Purchase Order may be
used). Depending on the status of the order with a vendor, there may be financial implications
with the vendor for cancellation of an order. Procurement Services can assist you with this.

Competition/Bidding
The Purchasing Policy (see section II of this Guide) has specific requirements regarding the
solicitation of bids, but everyone is encouraged to seek out competition at every level of
purchasing. Your Procurement Representative will be happy to provide you with assistance in
conducting a formal bid process, which is required for purchases greater than $25,000. The
following guidelines are provided for soliciting bids:

1. Written Quotations (Required for Purchases Greater than $25,000) – The best, most
effective way to create competition is to solicit two or more written bids (three bids are preferred
but are not always possible.) This method ensures the selected supplier is providing goods and
services in the most cost-effective manner. Best business practices encourage the use of written
competitive bidding at all levels of purchasing. At Brandeis, written quotations are not required
unless the value of the purchase is $25,000 or more.

Some points to remember when soliciting written quotations are:
1. Bids should include a written request for proposal or pricing (RFP) from Brandeis and a
written offer from the suppliers.
2. The offer should include all delivery and installation costs.
3. Delivery should be FOB (Freight on Board) Brandeis or the point where you wish delivery to
occur. This ensures liability for products does not transfer to Brandeis until you receive the
goods.
4. Any and all future maintenance costs should be noted.


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5. In the RFP, your specifications should be as generic as possible. Try not to use name brands
but rather the actual technical specification for the product or service required. Any variation
from your specification (substitution) should be noted by the bidder.
6. Warranties should be explained in the text of the offer.
7. Payment terms should be delineated in the offer.
8. All bids should be provided on company letterheads and signed by an appropriate company
employee authorized to commit the firm to the offer.

   2. Single or Sole Source Justification – When a purchase order totals more than $25,000
      and competition is not possible, a justification of why the single or sole source is being
      used is required. Sole source procurement are those where no other supplier is available
      to provide the same or similar product or service required. A single source procurement
      occurs when there are other suppliers of the same or similar products or services but the
      nature of the application dictates the selection of a particular source, regardless of price.

Single source procurement is appropriate when:
           • Compatibility with accessories, replacement parts, or other integrated systems is
               the paramount consideration
           • A specific good or service is required and authorized in a grant or contract to
               maintain the integrity of the project

The Sole/Single Source Justification form (see Appendix 3) must be completed when processing
these kinds of procurement transactions. Justification must include what market forces are at
play, why the item or service requested is unique, and what effect using an alternate would have
on the project or institution. Using a Single or Sole Source does not preclude responsibility to
analyze the offer. Whenever a Single or Sole Source is required, a cost or price analysis is to
accompany the justification.

3. Telephone/Verbal Quotations – Telephone quotations are recommended for purchases
between $10,000 and $24,999. A telephone solicitation requires many of the same components
as a written solicitation but the actual process is managed over the telephone. While telephone
solicitations are not required, Procurement Services will many times initiate telephone
solicitations in cases where there are a significant number of competitors that will lead to more
advantageous pricing.

While Procurement Services will provide you with the service of collecting competitive
quotations, you may feel you want to do this on your own. The following information should be
documented during each phone call to assist in the solicitation process:

   •   The name and telephone number of the suppliers contacted.
   •   The name and extension of the individual from the supplier making the offer.
   •   Descriptions of the items being quoted including quantities.
   •   Any and all notes made during the conversation with the supplier.
   •   The name, phone extension, and signature of the individual soliciting the quotation.




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Contracting With Independent Contractors
From time to time, it may be necessary to contract for professional services from a source other
than an enterprise registered as a corporation. In all such cases, the University will comply with
Federal and State regulations and guidelines concerning the classification of an individual as an
employee or an independent contractor. The Controller’s Office will assist you in this.

University Master Contracts
Procurement Services continues to review the procurement of similar commodities on campus to
determine where Master Contracts might help to streamline the procurement process and create
volume discounts. A complete listing of all the University’s Master Contracts is available on the
Procurement Services web site at www.brandeis.edu/offices/procurement.

Procurement Card
Brandeis University offers a procurement card to departments and individuals responsible for
small dollar purchases to assist in these types of transactions. Similar to a personal credit card, a
procurement card is for use with retail-oriented suppliers or when a Purchase Order would be
inefficient. Billing is directed to the University, not the cardholder. Each card has individualized
controls assigned to discourage inappropriate use. To learn more about the procurement card and
how to receive one contact Procurement Services at 6-4500 or go to
http://www.brandeis.edu/offices/procurement/pcard.html.


Corporate Card
The Corporate Card program is designed for employees of the University who do an extensive
amount of traveling for the University. The Corporate Card is the best way for travelers to pay
for travel related expenses. The objective of this program is to provide faculty and staff with
added convenience, security and flexibility while traveling on behalf of the University. To learn
more about the Corporate Card program and how to apply, contact Procurement Services at 6-
4500.

Tax Status
Brandeis University is a 501(C)(3) Tax Exempt organization. This status allows the University to
seek exemption from sales tax in states where we purchase items for use in Massachusetts. In
most states, sales tax collection is not pursued for items purchased in one state then used in
another (i.e., items shipped out of state). Tax exemption does not apply to federal and state fuel
taxes, local hotel occupancy and food taxes, most transportation surcharges, user fees, and meal
taxes. When we purchase items or services within Massachusetts, the supplier must have on file
a hard copy of our state tax exemption certificate. Each certificate notes the supplier's name and
can only be used for that particular supplier. You may contact Procurement Services to arrange
for a supplier to receive our tax exemption certificate. We will be happy to provide the supplier
with the appropriate form.

Our tax exemption pertains to state taxes; what applies in Massachusetts does not apply in every
state. Each state has unique requirements regarding tax exempt status. Some simply require a



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form to be filled out, and others require an act of the state legislature for an organization to
receive exemption. Brandeis University examines our need for sales tax exemption on a state-by-
state basis. Please contact General Accounting in the Controller’s Office if you have tax
exemption questions.




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Section IV
Receipt and Payment of Services and
Materials

Introduction
The receipt and payment of materials and services is as important as ordering itself. This section
discusses what is undertaken to ensure that the items and services Brandeis ordered are the items
and services we receive and pay for. Procurement Services is responsible for the vouchering
process for invoices associated with purchase orders. This process initiates payment to the
vendor that occurs within Accounts Payable, which is responsible for the disbursement. This
gives our Procurement Team member a unique view of the entire transaction, creating an
environment where the person responsible for processing the payment also has intimate
knowledge of what was ordered.

Central Receipt
Brandeis University maintains two central receiving operations: Kalman (managed by
Procurement Services) and Epstein (managed by University Services). Each receiving team is
responsible for acknowledging receipt of all incoming shipping traffic and the redistribution of
items throughout the University.

Members of either receiving area will verify the quantity of items received against the quantity
ordered on a Purchase Order using the PeopleSoft receiving module. They will visually inspect
for damages and refuse items that appear to have extensive damage. As the receiver does not
possess intimate knowledge of the items ordered nor the capability to test them, they are not able
to ascertain if an item is indeed usable as intended by the requisitioner. Final inspection of
materials against specification is the responsibility of the requisitioner. Therefore, it is imperative
to inspect your shipment and verify its quality immediately upon receipt. Delaying this
inspection may hamper the effort to return materials that do not work as intended.
When an item does not meet your specification or is damaged, contact your Procurement
Representative immediately. She/he will assist you in returning the item and negotiating a
remedy with the supplier before payment occurs.


Direct Receipt/Services Receipt
From time to time, it may be necessary to have shipments directed to a location other than central
receiving; or, an order may have been for services rather than goods. In these cases, if the item or
service is valued greater then $5000, then the requisitioner is responsible for acknowledging
receipt of the item or service to make it eligible for payment.




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To facilitate this process, Procurement Services provides you with a Confirmation of Goods
Received form (see Appendix 4). This form serves as verification of receipt or approval for
payment of services rendered. Please use this form whenever an item or service processed on a
Purchase Order has a value that exceeds $5,000.

Packing Slips
Whether a shipment is received though a central receiving location or is shipped directly to you,
a packing slip is usually provided by the supplier. This document commonly shows a shipping
number, the Purchase Order number, the quantity ordered, the quantity shipped and, when
applicable, the quantity back ordered. It is your record of what was sent to you by the supplier
and is used to track the shipment throughout the system. Packing slips for items ordered using
the PO system will be retained by Procurement Services.


Authorization for Payment
Whether received centrally or directly by the requisitioner, all supplier invoices are matched
against the items or services ordered on the Purchase Order as well as the items or services
received (for goods greater than $5000). At Brandeis, this three-way match is accomplished
electronically, through the PeopleSoft system. For orders valued greater than $5000 the system
will verify that the item or service received matches the quantity and prices of the item or service
ordered, and the invoiced amount.

There are two ways the receiving data is entered into the system:

   1. When an item is received at Central Receiving, the receivers will enter the data directly
      into the PeopleSoft system.

   2. When an invoice is received with a value >$5000 Procurement Services will request a
      Confirmation of Goods Received Form (see Appendix 4) be processed by an individual
      with the appropriate budgetary approval. This will occur regardless if the shipment has
      been received in central receiving. The information provided on the completed form will
      be entered into the PeopleSoft database, thus creating a match.

For invoices valued less than $5,000 a two-way match occurs between the invoice and the
Purchase Orders. If the price and quantity of items or services invoiced match the price and
quantity of the items or services ordered on the Purchase Order (within set invoice tolerances—
see below), then the invoice will be paid. Because Brandeis’s payment terms are net 30 days, the
majority of invoices will “age” for 30 days before the check is cut by the Controller’s Office. As
mentioned in the receiving section above, it is the requisitioner’s responsibility to contact
Procurement Services as soon as possible if goods are received damaged or an invoice should not
be paid.

Invoice Tolerances
When processing invoices, the Procurement Team works within institutionally defined
parameters to determine what is a reasonable variance between invoice total and Purchase Order



                                                18
totals. These tolerances allow Procurement to process payment of invoices that exceed the value
of the Purchase Order. If the value on an invoice for a Purchase Order exceeds 20% or $250 of
the Purchase Order total, whichever is less, the invoice will not be processed until the
appropriate Procurement Representative contacts the vendor and the requisitioner regarding the
discrepancy to determine the reason for it. Procurement Services will need to document the
reason for the discrepancy prior to processing the invoice for payment.




                                              19
Section V
General Purchasing Practices
Introduction
While the ultimate responsibility for the procurement process at Brandeis University is delegated
to Procurement Services, many may wish to provide assistance by doing some of the
procurement work themselves. This is particularly true of individuals purchasing highly technical
equipment and services. The following gives those wishing to be more involved in the
procurement process some basic guidelines for good procurement practices.


Selecting Qualified Suppliers
Supplier selection and evaluation are processes that can take some time and energy, but the effort
will be rewarded when the product or services needed are supplied in a timely and cost-effective
way.

The first step in supplier selection is often research, particularly if the item or service has not
been purchased before. There are a number of tools to assist you in this initial phase:

   •   Discuss your purchase with Procurement Services in advance.

   •   Go to the Procurement Services Web page and check to find online resources we use or
       use a Web browser to search for supplies.

   •   Consult the local and Boston yellow pages for local suppliers.

   •   Consult professional journals, trade publications, directories, and supplier catalogs.

   •   Talk with colleagues here and at other institutions who might have purchased similar
       items.

Once a list of potential suppliers has been compiled, begin to evaluate their capabilities. Ask
suppliers for a list of references. Visit their sales offices, warehouses, and manufacturing plants
to evaluate their operational capabilities. Look to see if the firm appears prosperous. Evaluate
their use of technology. Ask employees how they feel about the company. When needed, ask for
samples and prototypes (there may be a cost associated with these). Inquire into the supplier’s
ability to supply the goods or services.

It is a good practice to investigate the financial stability of the supplier. Brandeis has utilized the
services of Dun & Bradstreet to analyze the stability of publicly-held companies. Their services
may be obtained by contacting Procurement Services. Analyzing a privately held company is
more difficult. It may be necessary to look at an audited financial statement for the company.
You may also ask for bank and other trade references. Again, Procurement Services can assist
you in this analysis.


                                                  20
Managing a Bid
Once you have selected a few qualified suppliers, the best method to determine if an offer is
competitive is to request a written bid. Bidding will allow you to verify the pricing provided by
the supplier, tell the supplier you are seeking competition, and delineate your expectations of the
supplier and his/her expectations of Brandeis. When needed it can also form the basis for a
legally binding contract.

The bidding process begins with the development of a set of specifications or objectives. To be
able to define the requirements exactly requires doing your homework. The resources to assist
you in this include colleagues, trade manuals, the Procurement Services staff, and the suppliers
themselves. Try to make your specifications as generic as possible, allowing the suppliers to use
their expertise to find the best solution to your needs. Here are some tips on preparing a bid:

       •   You will need sufficient time to prepare and evaluate the bid. The suppliers will need
           sufficient time to respond (usually two to four weeks depending on the complexity).

       •   All suppliers should receive identical copies of your bid documents and any
           subsequent changes.

       •   Specify a deadline for receipt of bids. If you extend this deadline for one, you must
           extend it for all.

       •   If the bid is quite complicated and will generate a host of questions or require a site
           visit from the suppliers before they can bid, it may be most expedient to hold a pre-
           bid meeting with all parties present.

       •   Make sure the person who is submitting the response is appropriate. All bids should
           be signed by an officer of the supplier's company with authority to commit the
           company’s resources.

       •   All bids are confidential and should not be used as a bargaining tool among suppliers.
           Once bids are received, you need to evaluate them in a fair and open process. While
           the procuring of goods and services at the University does not require the lowest bid,
           it is required to document the justification when a lower bid was not accepted (see
           Single or Sole Source justification section of this Guide).

Some tips on evaluating bids include:

   •   Take the time to review the bids carefully. Narrow the field by determining which
       vendors are responsive. A responsive bid will include ALL the information needed to
       procure the product or service up front.

   •   Look carefully at the proposed prices. Be wary of suppliers who substantially underbid
       others. It might mean the supplier misunderstood the requirements or is low-balling the
       bid. In this case, the product or service might suffer.


                                                21
    •   Consider the supplier's past performance, after-sale support and services, technology and
        other criteria that might separate one supplier from another.

    •   Always compare TOTAL acquisition and life cycle cost. This includes shipping,
        consumable supplies, service agreements, potential repair parts, and other after-purchase
        costs.


Negotiating a Price
There are times when the bid process cannot be used. When this occurs, prices must be
negotiated. Negotiation should be used when:

•   The purchase involves a significant amount of money or requires an ongoing effort. In these
    situations, negotiation may be used in conjunction with a bid.
•   The number of suppliers available is too limited to create competition via a bid.
•   New technologies or processes are required for which a selling price has yet to be
    determined.
•   The supplier is required to make a substantial financial investment or commit other
    resources.
•   There is not enough time available to seek competitive bids.

When negotiating a price, it is important to remember to do your homework. Find out as much as
possible about the company. Be sure you understand your requirements fully and how these
might affect prices. Investigate the costs associated with providing the service or materials you
are requiring. Develop your own strategy for the negotiation and try to anticipate the strategy of
the supplier. Make sure the person you are negotiating with has the authority to make offers and
commit the supplier. Finally, remember that a successful negotiation is a win-win for both
parties. You must allow the supplier enough leeway to make supplying the goods or services
attractive.

Managing Supplier Relationships
Maintaining good supplier relationships should be important to all members of the community. A
good buyer-seller relationship is a partnership, a win-win situation that nurtures both parties. A
supplier treated with courtesy, honesty, and fairness will deliver quality products and services at
the best price. A supplier who feels he or she is being treated well will be responsive to
emergency and special requests. A well-managed supplier is also a useful resource in attaining
industry knowledge.

There is also a public relations aspect to procurement that should not be overlooked. Brandeis
University is in a unique position in the local, research, and business communities. Our name is
well known and associated with quality and integrity. This reputation is an important asset that
we should always strive to maintain. A well-managed supplier is likely to communicate their
positive experiences to others, further enhancing our reputation.

Here are some guidelines to positive supplier relationships:


                                                22
•   Be Fair: Give all qualified suppliers equal access to compete for our business.

•   Maintain Integrity: A supplier's price is confidential and should never be shared with
    another supplier for any reason.

•   Be Honest: Never inflate requirements to get better pricing. Negotiate in good faith. Do
    not change requirements and expect the supplier to hold their offering. Communicate
    with suppliers openly and honestly.

•   Be Ethical: Procurement decisions should be made objectively and free from any
    personal considerations.

•   Be Courteous: Treat suppliers as you wish to be treated.

•   Be Reasonable: A supplier is entitled to make a profit. Requirements should be
    attainable without putting undue financial hardship on either party.

•   Process Needed Documents Promptly: We demand that our suppliers respond to the
    requirements in a timely manner. We, too, have an obligation to uphold our end of the
    bargain by providing them with timely documents and payments.




                                            23
Appendices




             24
                                          Appendix 1
               Procurement Services Staff List of Responsible Areas
If you do not see your specific department or the commodity you are buying listed, please feel
free to contact any of the Procurement Representatives listed.

The staff in Procurement Services works together as a team. During peak periods or during times
when staff may be out sick or on vacation, requisitions normally handled by a particular
representative may be given to another representative to handle. The Procurement staff is crossed
trained so that this may occur without experiencing a change in service.

Mary Dukakis                                        Departments:
Director of Procurement Services                    Capital Projects
781-736-4500                                        Facilities
                                                    Heller
Ed Perkins                                          Humanities Departments
Assistant Director of Procurement Svcs.             International Business School (IBS)
781-735-4505                                        Library
                                                    Phys Ed/Athletics
                                                    President’s Office
David Petricone
                                                    Provost
Procurement Representative
                                                    Rose Art
781-736-4526
                                                    Specialized Commodities:
                                                    Audio/Video
Departments:
                                                    Copiers
Science Departments
                                                    Furniture
Specialized Commodities:
Scientific Supplies and Equipment
                                                    Helen David
                                                    Associate Procurement Representative
Lisa DeLetter
                                                    Procurement Card Administrator
Procurement Representative
                                                    781-736-4510
781-736-4502
                                                    Departments:
Departments:
                                                    Admissions
Computer Science
                                                    Creative Arts Departments
Development
                                                    Student Life
ITS
                                                    Commodities:
Publications
                                                    Office Supplies and Equipment
Public Safety
                                                    Local Hotel Reservations
Rabb
Registrar
Social Science Departments                          John Connelly
Specialized Commodities:                            Associate Procurement Representative
Technology (Computers, hardware,                    781-736-4523
Software, supplies, etc)
                                                    Departments:
                                                    Science Departments
Calvin Hargreaves
                                                    Specialized Commodities:
Procurement Representative
                                                    Scientific Supplies and Equipment
781-736-4495


                                               25
                                   Appendix 1


Kristie Hurley
Procurement Assistant
781-736-4500

Responsible Area:
PO Invoice Payment

Elle Baglio
Procurement Assistant
781-736-4500

Responsible Area:
PO Invoice Payment

Ronnie Reardon
Lab Supplies Stock Room Operator
781-736-4525

Warren Vail
Science Area Receiver
781-736-4525




                                      26
                                                 Appendix 2
                                                                                                 Complete all
                                    Brandeis University                                          information in this
                                                                                                 section in order to
                              Office of Procurement Services                                     accurately receive
                   Requisition For Supplies and Services Form                                    goods ordered.

                 Each requisition must have                                       Requisition Number
Date: ______________
                 appropriate, authorizing signature

Requested by: _____________________ Dept.______________________________ Ext. ________

Authorized by: ____________________________________

Attn. of: _________________________ Dept. ______________________________ Ext. _________

Bldg. ____________________________ Rm. _______________                                  MS _________
        A valid Chartstring must be provided here.                               Procurement Svs.
  Account      Fund      Dept. ID     Program        Project/Grant
                                                                                 Other (Specify) ________

                     Include vendor name
Vendor Name: ___________________________________________ (Leave blank if vendor is unknown)
                     and information here.
                     Leave blank if vendor
Address: _____________________________________________ Phone Number: ____________________
                     is unknown.

City: ___________________________________ State:______ Zip:___________

                                                                                        UNIT         TOTAL
LINE      ITEM #                    ITEM DESCRIPTION                 UOM   QTY          PRICE        PRICE
  1
  2
  3                                             Please provide as much information as
  4                                             possible describing the item to be
                                                purchased, including unit of measure,
  5
                                                quantity, and price (if known).
  6
  9
                                                           SHIPPING HANDLING CHARGES:
                                                                                        Total:   $

                                     DO NOT WRITE BELOW THIS LINE
       Purchase Order Number:




                                                         27
                                                   Appendix 3
                                     Brandeis University
                                 Office of Procurement Services
Sole Source Justification for Requisition #____________

Requisitions for items that are to be purchased from a specific vendor, where substitutes to the vendor or brand are
unacceptable, must be accompanied by a written justification explaining the circumstances that make substitutes
unsuitable. The principal investigator or budget manager must sign the justification. Justifications are to be
supported by factual statements that will pass an internal or federal audit. The Director of Procurement Services or
designee determines whether the justification is appropriate.

Instructions
This form should accompany your requisition when sole source approval is requested for federally funded contracts
and grant/university purchases of equipment, material, supplies and services exceeding $25,000. Please check the
appropriate category below and furnish explanation. Attach sheets if necessary.

      1) The requested product is an integral repair part or accessory compatible with existing equipment.
                 Existing equipment: ________________________________________
                 Manufacturer/Model #_______________________________________
                 Age/Current Value: _________________________________________

      2) The requested product has unique design performance specifications or quality requirements, which are
      essential to my projects needs and are not available in comparable products.


      3) The requested product is essential in maintaining project continuity or to remain in compliance with
      established University standards. (Please Check One Below)

                  Requested product is being used in continuing research experiments.

                  Other investigators have used the product in similar research and, for comparability of research
                  results, I require it.

                  I have standardized the requested product and the use of another brand/model would require
                  considerable time and funding to evaluate.

      4) The requested product is one with which I (or my staff) have specialized training and/or extensive
      experience. Retraining would incur substantial cost in money and/or time.

      5) Describe any efforts to identify other sources to furnish the required items or services. If sources offering
      similar products or services are available, identify and explain why they do not meet your particular needs
      (use a separate sheet for additional space)
      ________________________________________________________________________________

      ________________________________________________________________________________

      6) Other factors (provide detailed explanation below or attach a separate sheet)
      ________________________________________________________________________________

      ________________________________________________________________________________

Authorized Signature (Principal Investigator or Budget Manager):

_____________________________________________________ Date________________


                                                         28
                                                   Appendix 4

       Confirmation of Receipt of Goods Form
Purchasing procedures state that a confirmation of receipt of goods must be obtained prior to payment of all invoices
greater then $5000.


An invoice was received on ______________ for:

                  Purchase Order number: _________________
                  Requisition Number:    _________________
                  DeptID Number:         _________________

Please confirm below by selecting the appropriate box that all goods or services
have been received and are in good condition so that we may process the invoice
for payment. If items were not received, or were received damages, please note
that as well.

Vendor _____________________

         All goods and/or services have been received, please pay invoice

         A partial shipment of the following items has been received: ___________
         _____________________________________________________________
         _____________________________________________________________

         All items were received but the following were damaged and should not be
         Paid for: ______________________________________________________
         _____________________________________________________________
         _____________________________________________________________


         Other notes: ___________________________________________________


         Signature: ____________________

         Print Name: __________________Ext. ______________ MS: _________


                             PLEASE RETURN THIS FORM TO:
                            PROCUREMENT SERVICES, MS 048



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