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					                                                                                                                        UC Davis
Purchasing Process Mapping & Analysis                                                              Accounting & Financial Services




                                                      TABLE OF CONTENTS

1. Objective and Scope of Analysis ..................................................................................................2
2. Project Overview.............................................................................................................................2
3. Purchasing Background Information .................................................................................................3

4. Purchasing Process Models .........................................................................................................4
   4.1 Business Interaction Model ........................................................................................................4
   4.2 High level Process Model ......................................................................................................... 5
5. Recommended Process Improvements ............................................................................................6

6. Process Mapping and Analysis .....................................................................................................6
   6.1 Purchase Preplanning Process (Department’s Internal Ordering) .................................................7
      6.1.1 Communication Resources .................................................................................................7
      6.1.2 Mechanical & Aeronautical Engineering .............................................................................18
      6.1.3 Pomology ........................................................................................................................23
      6.1.4 Vet Med Teaching Hospital (VMTH) ...................................................................................27
      6.1.5 California Animal Health & Food Safety (CAHFS) ...............................................................38
      6.1.6 Facilities ..........................................................................................................................45
   6.2 Purchase Requisition (PR) – Purchase Order (PO)....................................................................61
   6.3 Purchasing Agreements ..........................................................................................................90
   6.4 Purchasing Card .....................................................................................................................95
   6.5 Department Purchase Delegations ......................................................................................... 103
      6.5.1 Departmental Purchase Order (DPO) .............................................................................. 103
      6.5.2 Departmental Repair Order (DRO) ................................................................................... 104
   6.6 Purchase Order Modification .................................................................................................. 105
      6.6.1 Change Order Process ................................................................................................... 105
      6.6.2 Redistribute Purchasing Liens (RPL) ............................................................................... 109
   6.7 Small Business Program........................................................................................................ 110
   6.8 Insurance Review and Setup ................................................................................................. 111




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                                                                                            UC Davis
Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

1. Objective and Scope of Analysis
The purpose of this analysis is to map Purchasing processes in order to identify areas for greater
efficiency in existing work methods and to implement more streamlined procedures that increase the
effectiveness of work flow and customer service.

The scope of the analysis is within the business functions that are performed by Purchasing including the
systems that augment those activities.

2. Project Overview
The Business Process Improvement Initiative was identified as part of the OOA planning workshop in
September and an action team was identified to spearhead this effort.
The first phase was developing the strategy and project plan that was presented to OOA Senior Staff.
The action team members include:
Mike Allred – Team Sponsor             A&FS
Damian Chapman - Lead                   OOA
Steve Frost                          A&FS - MM
Ken Woodard                          A&FS - MM
Alex Martin                          A&FS - MM
Radhika Prabhu                      A&FS - C&A
Dane Monell                          Fac: O&M
Mike Donnelly                        Fac: O&M
Jan Carmikle                         A&FS - MM

The next phase was process mapping Purchasing and Business Contracts and identifying areas for
improvement. This included customer focus group meetings as well as department visits to receive input
from a diverse user group. This phase was conducted primarily by the analyst, Radhika Prabhu from
January 2004 to April 2004.

The action team with some additional members then focused on working in sub groups and started
making recommendations that were classified into three major categories of system, people and training.
The additional members include
Patty Strauss                      A&FS - DaFIS
Alex Matsis                         A&FS - MM
Lia Scott                          A&FS – E&SS
John Gregg                         A&FS – C&A
Marian Wong                        A&FS - DaFIS




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Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

3. Purchasing Background Information
Purchasing’s mission is furnish purchasing services to the campus community through the issuance of
purchase orders and agreements through competitive and negotiation processes. Procure quality goods
and services at the lowest overall cost while maintaining compliance with Federal, State, and University
laws, regulations and policies. Maintain professional representation and sound business practices in
conjunction with the University's academic mission while creating an atmosphere of trust, support and
goodwill."

The Purchasing group consists of the Procurement Manager, four Buyers IV positions, three Buyer II
positions, four Buyers I positions and one Admin Asst.

Campus training includes DaFIS Purchasing 101 (Introduction to delegated Purchasing process), DaFIS
Purchasing 102 (Purchasing through Purchasing), SDPS Purchasing 103 (Briefing for grant and contract
administrators, DaFIS Purchasing Card and Purchasing forums.

The number of purchase orders processed in the Purchasing department has been shown in the table
below:

Purchase Orders placed in the Purchasing Department (Excluding Blanket Requests)
    Dollar Amount                 # of Orders FY 01-02          # of Orders FY 02-03
       0 – $2,500                                 3087                          2801
    $2,501 – $5,000                               2476                          2289
   $5,001 – $10,000                               1449                          1543
   $10,001-$50,000                                1199                          1381
       > $50,001                                   202                           287
      Total orders                                8413                          8301

Blanket Orders placed in the Purchasing Department
  # of Blanket Orders                            331                                       437




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                                                             UC Davis
Purchasing Process Mapping & Analysis   Accounting & Financial Services

4. Purchasing Process Models

   4.1 Business Interaction Model




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Purchasing Process Mapping & Analysis                                                                                         Accounting & Financial Services

    4.2 High level Process Model
                                                                                                                                                                                                                            Request changes                           Request
                         Purchasing
                                                                                                                                                                                                           Start                to order                              changes
                        Pre-Planning
    Start                                                                 Request for Purchase                                                                                                                                                                         to lien

                                                                                                                                                                                                                              Order
                                                                                                                                                                                                                                        Purchasing
                                                                                                                                                                                                                              setup
                                                                                                                                                                                                                   Department
                                                                                             Repair                                                                                                                            by?
                                                                               Low                                                                       Published
                                                                                             (LV)?             Agreement                                                                                                                                              Redistribute
      High                                                                    Value?                                                                     Materials?
                                              Excluded                                                                                                                                                                                                                Purchasing
     Value?




                                                                                                  Yes
                                               Items?                                                                                                                                                                                                                   Liens

                                                                                   Yes




                                                                                                                        Yes




                                                                                                                                                              Yes
          Yes




                                                          Yes




                                                                                           Departmental                                                                                                                      Renewal           Change
                                                                         Departmental                            Departmental
                                                                                           Repair Order                                                 Departmental                                                         of order         items, $
                                                                          Purchase                              Purchase Order                                                                                Dept.
                                                                                              (RO)                                                     Purchase Order
                                                                         Order (OV) or                          (M3 delegated,                                                                               Change
                                                                                                                                                        (U3) or PCard




                                                                                                                                                                                                                                                  Yes
                                                                                                                                                                                                                                 Yes
                                                                            PCard                                 blankets) or                                                                                Order
                  Setup
                Purchase                                                                                             PCard




                                                                                                                                                                                                                                                  Email Information
                Requisition                                                                                                                                                                                                 Purchase
                                                                                                                                                                                                                            Requisition
                    Approvals (Special Conditions, Acct




Department


                                                                                                               Negotiate/Bid                                        Receive                                               Receive
                            Mgr, Extramural)




                                                                                                                                                                     Order                                                Change
                                                                                                                                               _Requester                                            End                   Order        End



                                                                                                                                 Receive Concurrence




                                                                                                                                                                         Place order/ FYI route to
Vendors




                                                                                                                                                                              departments
                                                                                                  Sole
                                                                    B                            Source
                                                                        Blanket                           Sole/Single
                                                                        Request                             Source
                                                                                           Sole                                                                                                                            Setup
                                                                                                          Negotiation
                                                          Specific                        Source                                                                                                                          Change
      Purchase
                                                             or                           or Bid?                                                                                                                          Order
      Requisition
                                                          Blanket?
                                                                                                    Bid
                                                                                                             Bid Process                                            Set up Contract
                                                                        Specific
                                                                S




                                                                                                             (RFI, RFQ,                                               (Purchase
                                                                        Purchase
                                                                                                                RFP)                                                     Order)

Purchasing




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Purchasing Process Mapping & Analysis                                 Accounting & Financial Services

5. Recommended Process Improvements

                 Recommendations can found in the BPI Recommendations Document.



6. Process Mapping and Analysis
Analysis information was gathered using one on one interviews with process owners, system owners,
department users, focus group meetings, past analysis documents, system documentation, P&P manual
and other references. All the major processes were mapped and analyzed for inefficiencies, bottlenecks,
non-compliance, controls and system enhancements.


List of Processes Mapped
       Process
 6.1 Purchase Preplanning Process (Department’s
       Internal Ordering)
       Decision Process
 6.2 Purchase Requisition – Purchase Order
                Purchase Requisition - Department
                Purchase Requisition - Purchasing
                Sole Source
                Bid
                Purchase Order
 6.3 Agreements
 6.4 Purchasing Card
 6.5 Departmental Purchase Delegations
                Departmental Purchase Order
                Departmental Repair Order
 6.6 Purchase Order Modifications
                Change Order Process
                RPL
 6.7 Small Business Program
 6.8 Insurance setup




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                                                                                            UC Davis
Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

6.1 Purchase Preplanning Process (Department’s Internal Ordering)
This section covers the departments ordering process before it reaches Purchasing. Process mapping on
the purchasing processes like the purchase order have been covered in sections 6.2, 6.3, 6.4, 6.5, 6.6,
6.7 and 6.8 within this document.


6.1.1 Communication Resources
(Analysis Meeting with: Purchasing Specialist)

Mission: Communication Resources (CR) mission is to support the University’s teachings, research and
public service functions through the provision of a suite of modern, reliable, secure, and cost-effective
telecommunications services.

Organization: The Purchasing unit serves about 100 people and the various positions include Director,
Managers, Electrical engineers, Mechanical engineers, software engineers, Network administrators,
Programmers, Project managers, Customer service representatives, Telephone operators, Project
engineers etc.

Training:
DaFIS training, Purchasing card training, DaFIS training documents and one-on-one informal training at
CR is given for new staff. No internal documented procedures are present at this time although the need
has been recognized.

Purchase Commodities:
   - Telecommunication hardware include phone, network including LAN, and cable TV etc.
   - Software purchases

In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for CR (Org code: CRIT) totaled $
4,200,277.83.

Purchase Request
The department requester goes online into the CR website and fills out the Purchase Request form also
known as the green sheet (Exhibit A). The form is then forwarded to the Manager/Supervisor who then
verifies the account and other information. The form is then sent to the Purchasing Business Office
where the Purchase/Materials Specialist date stamps the form and verifies the information. The
turnaround goal is 48 hours from receipt of the form to entering the request in the system. The specialist
then goes through the decision process of deciding which DaFIS document to use.




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Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

Workflow (Purchase and Repair Request)
                 PURCHASE REQUEST                                     REPAIR REQUEST

                  Fill out online                                            Contact vendor;
                     Purchase                                               get RMA#; fill out
                  Request Form                                                trouble ticket
                  (Green Sheet)




                                                                                forward trouble ticket
Requester/User


                       Approval;
                       Account
                      verification
Supervisor/Manager


                 Date Stamp;                                           Complete DRO
                  verify info                                           request form


                      Decision                                              Decision
                      Process
                                                                       Ensure vendor
                                                                        insurance is
     DaFIS         DaFIS                                                   current
                                     PCard
     DPO            PR

                                                                    DaFIS                                DaFIS
                                      Forward                       DRO                                   PR
             Create Invoice           invoice/        Attach to
             Tracking Form           packing slip      Invoice         Ship item                                 Attach to
                                                    Tracking Form      with RMA#                                   DRO
                                                                                                                  request
Purchase Specialist


               Receive                                                                            Receive
                                 Invoice                                                                         invoice
                item                                                                               item
Invoicing


   DPO
   The specialist gets three vendor quotes and makes a vendor selection. If the vendor is not in the
   DaFIS table, a request is made to add the vendor. Once the vendor has been created the DaFIS
   DPO document is completed and routed for account manager approval (the account manager might
   be in another department e.g. student housing). The DPO is normally not printed, as the DPO
   information is given over the phone to the vendor after the vendor selection is made.




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Purchasing Process Mapping & Analysis                                           Accounting & Financial Services

Workflow (DPO)

                           Get 3          Make         Initiate
                          vendor          vendor        DPO




                                                                          routing
                                                                          DaFIS
                          quotes         selection
    Purchase Specialist


                                                                  Approve

    Approver


                                                      Receive        Ship item
                                                       DPO#
    Vendor


   Purchase Requisition
   If the determination is made that the purchase has to go through the Purchasing Department then the
   DaFIS Purchase Requisition document is filled out with all the required information and supporting
   documents is faxed. The specialist also sends one quote so that it may be used for baseline pricing.
   According to CR the normal expected turnaround time for PR is 6-8 weeks although better
   turnarounds have been noticed recently. Once the Buyer starts work, they either call or email for
   additional information if needed.
   It is very common for the requests to be made with standard specifications because the part or
   equipment has to meet campus standards and work with the existing infrastructure. The Buyer uses
   this specification for quality point evaluations during the bid process. Once the order has been
   completed the Buyer FYI routes the document to the Specialist for notification.

   Workflow (Purchase Requisition)

                             Obtain 1
                           vendor quote

                                        Fax                 Receive
                 Submit DaFIS
                                   Attachments                 FYI
                 PR document
                                                           notification
    Purchase Specialist


                        Receive          Receive
                     attachments         approved
                                           PR


                                Buyer           Verify        Complete
                                starts       information        PO
                                 work
    Purchasing




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Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

    Purchasing Card
    About 5 people hold the card and most of the cardholders are in the CR Business unit. The policy is
    that all purchase requests have to come to the unit. The card is not used too much because it causes
    more work, is harder to track and the invoices get mixed up. The card has been used for online
    transactions and this has helped save money for the organization. After making the purchase a
    Credit Card Tracking form is created to follow the paperwork.

In all cases as soon as the DaFIS document or Purchase is completed an Invoice Tracking form is
completed (Exhibit B) and attached along with the Purchase Request form. The header of the invoice
tracking forms for DPO, PO and Purchasing Card is different. If the request was split into different PO or
vendors then a different Invoice form is filled. When the item arrives at CR Business Office the DaFIS
Vendor Invoice is initiated by the staff and the paper copy is given to the Purchasing Specialist. The
invoices or packing slips are then attached to the Invoice Tracking Form. Therefore all information on the
invoice is part of the same file.
If an agreement was used then the agreement number is marked on the invoice form.

Repair Request
CR uses the Remedy Trouble Ticket system to track failed parts and the user completes a trouble ticket
on the system (Exhibit C). The trouble ticket form is sent to the Specialist who then completes a red
Repair Order Request Form and a decision is made whether to process the request on a DaFIS DRO or
DaFIS PR depending on the dollar amount.
    DRO
    A repair order is normally is required when the equipment is not covered by a current warranty. The
    biggest hurdle is getting the vendors insurance which can either take a long time or there may be a
    lack of response from the vendor. For this reason whenever possible spare parts are kept on hand.
                                     h
    Normally the user works with t e vendor to request information on repair and if repair the vendor
    provides a RMA number. The specialist does not work with the vendor because the repair
    discussions can get highly technical and requires trouble shooting.
    The specialist contacts the vendor’s service representative to request the estimated repair amount.
    Once the DRO document is approved, the DRO is printed, attached to the item and sent to the
    vendor.

    Workflow (DRO)

              Receive trouble
               ticket; RMA#


              Complete DRO
               request form


                  Get $         Complete         After      Ship repair item
              estimate from      DaFIS         approval    along with printed
                  vendor          DRO         print DRO           DRO

    Purchase Specialist


    Purchase Requisition
    If the estimated equipment repairs cost is above the department delegation or involves getting a
    property sticker then the request is sent to Purchasing on a PR. After the Buyer has complete the




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Purchasing Process Mapping & Analysis                                   Accounting & Financial Services

    order the document is FYI routed to the CR Specialist along with the RMA number. The PO is
    printed, attached to the item and sent to the vendor.


    Workflow (Purchase Requisition)

                     Initiate PR                  Ship item
                     document                     with RMA#

    Purchase Specialist


                    Receive           Buyer      FYI route
                  approved PR       completes    with RMA
                   document           order           #
    Purchasing


Once the item has been repaired the repaired part goes through the process of receiving and invoicing.

Agreements and Contract Tracking
CR does use Purchasing maintenance agreements and has also worked with Purchasing in setting up
agreements for temporary services. These agreements are then processed on a DPO. CR also uses
some of the contracts that have been setup by Facilities.

All contracts in the DaFIS system are tracked at the CR Business Office. After invoicing the contract
information is logged in a spreadsheet and then entered into the Inventory System (Exhibit D). The SQL
server system is from Khameleon a Florida based company and is used for Inventory tracking, contract
tracking and time tracking. Once in the system renewal notifications are sent to the Project Manager (the
notification system was programmed at CR). The email notifications are sent 3 months before expiration,
6 month before expiration and upon expiration (Exhibit E). The project manager either notifies the
Business Office for renewal or confirms expiration of the contract. All expired contracts are retained for a
certain period of time and the spreadsheet is updated.

The system has many limitation including redundant fields, inaccurate reports (depends on the fields that
are queried on), insufficient query fields and once entered the accounting information cannot be changed
for the associated order part. The version at CR is couple of versions old and the group is planning to
move to Pinnacle software.

Variations
    Projects
    When a project gets funded the Project Manager sends over the Project number and estimates the
    items that are needed for the project. The specialist enters the information in the Inventory system
    and orders the parts depending on the due date on the Project request. These projects are filed and
    tracked separately. In a given year there are normally 15-20 open projects. Occasionally at the end
    of the project the Project Ma nager might request additional items for ordering. It is anticipated that
    once the Pinnacle system is purchased the users will be entering the information in the system.

    Workflow (Project)




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Purchasing Process Mapping & Analysis                                   Accounting & Financial Services



                       Receive funding       Send Proj# & items
                         for Project           for purchase

    Project Manager


                                     Receive project
                                     estimate; date
                                         stamp



                                   Enter info in Inventory




                                    Order parts based               Attach to
                                       on due dt                    Project

    Purchase Specialist


                                                 Receive
                                                                     Invoice
                                                  item
    Invoicing

    Emergency Orders
    In the case of emergency or lack of action on PR (due to loss of attachments), the Specialist contacts
    the Purchasing Manager

    Confirming Orders
    There is tight control at the Business Office between the different units like Purchasing and Invoicing
    and confirming orders are not processed.

    Change Order
    A change order request is sent to Purchasing either via email or on a Purchase Requisition. The
    Buyer completes the transaction on a Change Order document.
    The DPCO document has never been used and changes to accounting information is done on the
    RPL document.

Report
The Business Office uses the Inventory system to track the parts and cost but the reports are not reliable.

Best Practice
   1) Simple request process (form) with internal turnaround time of 48 hours.
   2) The purchase and invoice are tracked together. There is tight control between the two functions
       thereby limiting the number of confirming orders.
   3) Contract tracking system




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Purchasing Process Mapping & Analysis                            Accounting & Financial Services

   4) Central Purchasing department has given one on one training to the CR Purchasing unit which
      has immensely helped them.

6.1.1 Exhibit A: Purchase Request Form (Green Sheet)




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Purchasing Process Mapping & Analysis    Accounting & Financial Services

6.1.1 Exhibit B: Invoice Tracking Form




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Purchasing Process Mapping & Analysis    Accounting & Financial Services

6.1.1 Exhibit C: Remedy Trouble Ticket




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Purchasing Process Mapping & Analysis                 Accounting & Financial Services

6.1.1 Exhibit D: Khameleon Contract Tracking System




6.1.1 Exhibit E: Contract Expiration Notification




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Purchasing Process Mapping & Analysis                     Accounting & Financial Services

6.1.1 Exhibit F: Commodities Purchase Log (DS28) Report




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Purchasing Process Mapping & Analysis                                 Accounting & Financial Services

6.1.2 Mechanical & Aeronautical Engineering
(Analysis Meeting with: Purchasing Coordinator)


Mission: The Department of Mechanical and Aeronautical Engineering (MAE) is committed to educating
future engineers so that they may contribute to the economic growth and well being of both the state and
nation, and to the advancement of knowledge in the mechanical and aeronautical sciences.

Organization: There are about 32 faculties with teaching and research responsibilities. The departments
has four research centers: AHMCT (Center for Design of Highway Machinery and Field Robotics), Hybrid
Vehicle Research Center, Computational Fluid Dynamics Research Center and Transportation Noise
Control Research Center.
Faculty, lab research assistants and the MAE Business office generally make purchase requests to the
Purchasing coordinator. A different Purchasing Coordinator processes AHMCT orders but MAE Business
office is the office of record.

Training:
The Purchasing coordinator has taken DaFIS training on the Purchasing modules and gives Purchasing
Card training to the faculty. There are no internal documented procedures although the P&P manual is
used as a reference.

Purchase Commodities: Electronic components, laboratory supplies, computers, computer software,
etc.

In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for MAE (Org code: 2450) totaled $
1,290,663.87.

Purchase Request
All purchase requests to the Purchasing coordinator comes on a Purchase order request form (Exhibit A)
with item description and price quote. The faculty approves the request form and indicates the account to
be charged. The purchasing coordinator has a 24-hour turnaround time goal for all requests and
emergency requests are processed immediately.




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                                                                                                 UC Davis
Purchasing Process Mapping & Analysis                                       Accounting & Financial Services

Workflow (Purchase and Repair Request)

                       Fill out PO Request
                       form; Faculty enter
                       account information
Faculty/lab Asst/BO


                           Receive           Decision
                           request           Process



                      DaFIS          DaFIS              PCard         DRO
                       PR            DPO



                                                 File


                      Receive
                                       Invoice           Close file
                       item
Purchasing Coordinator -BO


    DPO
    The coordinator enters the request in a DaFIS DPO and the document is routed to other staff in the
    Business office for approval. Upon completion the approver prints the DPO and gives it to the
    coordinator, who either faxes it to the vendor or gives it to the faculty. The DaFIS document number
    and DPO number is entered on the form and the form is filed under the open orders.

    Purchase Requisition
    The coordinator enters a DaFIS PR document in the system and the document is routed to other staff
    in the Business office for approval. Equipments over $10,000 require the Assistant Dean’s signature.
    The coordinator puts together the PR cover sheet, price quote and any supporting documents
    together and gives it to the Business office approver. Upon approval the documents are returned to
    the coordinator and the documents are sent to Purchasing through campus mail.
    Upon completion of the order the buyer FYI routes the PO document to the coordinator. The PO is
    printed, attached to the request form and filed numerically.

    Purchasing Card
    There are 11 cards in the department including two with the Purchasing coordinator. The card users
    fill out a daily transaction report (Exhibit B) every month. The Business office conducts monthly
    reconciliation using the activity report and the invoices and certifies the transactions. Most faculty use
    the card for online transactions

Receiving and Invoicing
The items are sent to the Business office where the Purchasing coordinator also does the invoicing. The
invoices are filed with the request form and filed under closed orders. If the order has a property sticker
then CAMS documents are completed.




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Purchasing Process Mapping & Analysis                                   Accounting & Financial Services

Repair Request
   The Purchase order request form is also used for repair requests and the requester provides the
   repair quote.
   DRO
   The Purchasing Coordinator initiates a DaFIS DRO document and the document routes for approval
   to the Business Office. Before a DRO can be created the insurance has to be on file with Purchasing.
   If it is not current then the department has to obtain the certificate of insurance from the vendor and
   send it to Purchasing. After approvals the DRO is printed and faxed to the vendor. The original DRO
   printout is sent along with the repair item. The repair request is then filed.

    Purchase Requisition
    The department has not done a repair with Purchasing for a long time.

Receiving and Invoicing
Same as purchase request.

Agreements and Contract Tracking
MAE including AHMCT sets up blanket agreements for different commodities like storage. Some of the
System wide agreements like Fischer, Steel case and Local area agreements like Aggie Inn have also
been used. The buyer calls the coordinator and lets them know when an agreement is nearing expiration.

Variations
    Emergency Orders
    All emergency requests are sent to the Purchasing Manager.

    Confirming Orders
    The department has several confirming orders and the MAE chairman has sent emails to the faculty
    discouraging this practice.

    Change Order
    Change to DPO or DRO are processed on a DPCO or RPL. If the order was processed on a PR then
    the buyer is emailed with the request and if needed the invoice is faxed.

    New Faculty Hire
    When a new faculty is hired all the items required for the lab the coordinator indicates on the PR
    cover letter that the purchase is for new faculty hire. Per the coordinator this request is expedited at
    Purchasing.

Reports
The Purchasing coordinator does not use any DS reports but the other staff in the Business Office might
be using the reports.

Best Practice
   1) Simple internal request process (Purchase order form) with 24 hours internal turnaround time.
   2) Purchase and Invoice tracked together

Note: Based on the feedback from MAE, Purchasing does a great job of completing the orders in a timely
manner including purchases for new faculty hires.




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Purchasing Process Mapping & Analysis     Accounting & Financial Services

6.1.2 Exhibit A: Purchase Order Request




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Purchasing Process Mapping & Analysis                       Accounting & Financial Services

6.1.2 Exhibit B: Purchasing Card Daily Transaction Report




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Purchasing Process Mapping & Analysis                                    Accounting & Financial Services

6.1.3 Pomology
(Analysis Meeting with: MSO and Purchasing Accountant)

Mission: The Department is charged with identifying and addressing the needs and problems related to
the production of fruit and nut crops, their post harvest quality maintenance, and the utilization of their
many products. The Department addresses these challenges and opportunities through research,
education and extension activities by applying biological sciences to genetic improvement, production
efficiency and post harvest handling of fruit and nut crops in California.

Organization: Other than the department Pomology has other field stations, experimental stations, farms,
fields and university extension. There are about 100 department users including 23 faculties.
The purchase requests are made to the Purchasing Accountant at the Pomology business office.

Training:
The Purchasing Accountant has taken DaFIS training on the Purchasing modules and another staff was a
Purchasing agent before joining UCD.

Purchase Commodities: Agriculture labor, liquid nitrogen, lab supplies etc
In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for Pomology (Org code: APOM)
totaled $ 1,335,280.34.

Purchase Request
A request for purchase form is used to make purchase requests and the form is submitted to the
Purchasing Accountant (Exhibit A) with item description and price quote. Some requests do not come on
the form and are sent via fax or email. The purchasing accountant processes all requests within the same
day.
Workflow (Purchase and Repair Request)

                    Fill out PO
                   request form;
                     email; fax
Faculty/Staff


                      Receive       Decision
                      request       Process




                 DaFIS          DaFIS
                                               PCard           DRO
                  PR            DPO



                                        Pending
                                          File


                   Receive
                    item           Invoice        Close file

Purchasing Accountant -BO




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Purchasing Process Mapping & Analysis                                  Accounting & Financial Services


    DPO
    The Purchasing Accountant enters the request in a DaFIS DPO and the DPO number is entered in
    the form. The vendor is given the DPO number and the vendor indicates if they want a confirmation
    of the order. The DaFIS document is routed to other staff in the Business office for account manager
    approval. Upon completion a DPO is printed and attached to the purchase request and filed under
    pending file. If requested by the vendor then a copy of the DPO is sent.

    Purchase Requisition
    The Purchasing Accountant enters a DaFIS PR document in the system and the document is routed
    to other staff in the Business office for approval. The PR cover sheet, price quote and any supporting
    documents are faxed to the Purchasing Department.
    Upon completion of the order the buyer FYI routes the PO document to the coordinator. The PO is
    printed, attached to the request form and filed under pending PR file. The expect4ed turnaround time
    is 1 month.

    Purchasing Card
    Only the Purchasing Accountant has a Purchasing Card. About 30% of purchases are made using
    the card and all purchases are tracked in a logbook. The card is used mostly for vendors that won’t
    take a PO, regular vendors, books or online vendors.

Receiving and Invoicing
The items are sent to the Business office where the Purchasing Accountant also does the invoicing. The
invoices are filed with the request form and after all the items have been paid the request form is filed
under closed orders.

Repair Request
   The Purchase order request form is also used for repair requests and the requester contacts the
   vendor for a repair quote.
   DRO
   The Purchasing Accountant initiates a DaFIS DRO document and the document routes for approval
   within the Business Office. Before a DRO can be created the insurance has to be on file with
   Purchasing. If it is not current then the department has to obtain the certificate of insurance from the
   vendor and send it to Purchasing. After approvals the original DRO printout is shipped to the vendor
   along with the repair item. At times the faculty might take the equipment to the vendor for repair. The
   repair request is then filed.

    Purchase Requisition
    The department has not done a repair with Purchasing for a long time.

Receiving and Invoicing
Same as purchase request.

Agreements and Contract Tracking
Blanket agreements have been setup for labor contract, uniform, mechanical pruning, sierra spring water
etc. The Purchasing Accountant has a spreadsheet of all the agreements with expiration dates. Other
types of agreements used include Sigma, Fischer, Beckman, Merry X ray etc.

Variations
    Emergency Orders
    All emergency requests are sent to the Purchasing Manager or a buyer with an established rapport.




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Purchasing Process Mapping & Analysis                                Accounting & Financial Services

   Confirming Orders
   The department has good controls and confirming orders rarely occur.

   Change Order
   Change to DPO or DRO are processed on a DPCO or RPL. If the order was processed on a PR then
   the buyer is emailed with the request and the invoice is faxed.

   New Faculty Hire
   When a new faculty is hired meetings are setup with vendors to see what all items might be required
   for setting up the lab. All requests are then entered on the department’s request form and processed
   either on a DaFIS DPO or DaFIS PR. The department is not clear if Purchasing expedites purchases
   if marked for new faculty.

Reports
The open order DS report is used occasionally.

Best Practice
   1) Simple internal request process (Purchase order form) with internal turnaround time of 24 hours.
   2) Purchase and Invoice tracked together
   3) Contract tracking spreadsheet




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Purchasing Process Mapping & Analysis        Accounting & Financial Services

6.1.3 Exhibit A: Request for Purchase Form




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Purchasing Process Mapping & Analysis                                  Accounting & Financial Services

6.1.4 Vet Med Teaching Hospital (VMTH)
(Analysis meeting with: MSO, 3 Account Managers and System Administrators)

Mission: VMTH’s mission is
   - To educate veterinary medical students and post-graduate veterinarians in state-of-the-art clinical
       veterinary medicine.
   - To discover, apply and disseminate new knowledge to promote animal health and advance the
       diagnosis, treatment, control and prevention of animal diseases
   - To provide high quality veterinary medical care and client services for the citizens of the State of
       California

Organization: VMTH has 28 hospital services that offer veterinary servi ces in areas such as
Anesthesiology, bacteriology, small animal medicine, equine medicine etc. The Financial Office manages
the budget transactions, facilitates procurement and provides fiscal data to hospital administration. The
staffs in the Financial Office function as account managers and are aligned to the different hospital
services. Each hospital service can have multiple supervisors who manage the purchase requests.

Training: The Financial Office gives all the training on the internal VMAX system as well as Purchasing
Card. The staff has some documented procedures that they use for their internal processing.

Purchase Commodities: Lab supplies, drugs, maintenance agreements, animal, equipment etc.

In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for VMTH (Org code: VADS and
VMTH) totaled $6,766,948.62


System: VMACS (Veterinary Medical & Administrative Computer System) was built in-house in 1983 and
the Purchasing Module was added in 1994 before DaFIS. The system has different modules like Medical
Record, Appointments, Patient Charge/Payments, Purchase Order, Accounts Payable, Central Services,
Billing, Radiology, Imaging etc. The system is written in MUMPS a language used in the high availability,
high reliability niche of the computer market, such as banking and hospitals. It provides a simple
abstraction that all data values are strings of characters, and that all data can be structured as multiple
dimensional arrays. The program is housed in a LINUX server with open source JTM implementation.
The primary users of the system include the faculty, administrative staff and remote users like referring
veterinarians. During peak load time the system has about 20-30 hits per sec. The system can be
accessed through telnet connections or web browser. Kerberos authentication is not used due to security
issues around the logout feature and the system uses SSL encryption with MD5 encrypted password.
The system interfaces with other systems for the credit card process, payments, DaFIS feeds, dispensing
system, lab equipments etc. VMACS is also tied in with the campus Mail and Voice Mail servers.

Support for the telnet DTM is going away and the upgrade licensee fee is very high therefore VMTH has
decided to move to a web interface but keeping the MUMPS back end processing. The HTML is Domain
object Model based and uses JavaScript for line entry validations. Currently the team is moving each
module to the web and development is in progress.

Only authorized staffs have access to the system. The data from the purchasing VMACS module is used
by the Pharmacy and Central service’s module otherwise the purchasing module is self-contained. The
PO module has search, editing, auto populating, reporting and validating capabilities.




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                                                                              UC Davis
Purchasing Process Mapping & Analysis                    Accounting & Financial Services

      VMACS System


                              MODULES


                    Patient             $
                    Charge              Account
                                        Payable

                                                    Purchasing
            Radiology



                                                                             Campus
          Appointment                                                        Mail/Voice
                                        VMACS                                  Mail
                                                         Upload DPO
                              System written in          and VI feed
          Medical
                              MUMPS; housed in
          Record
                              LINUX server with
                              open source JTM
                              implementation; MD5
                 Other        encryption




                                                       DaFIS




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Purchasing Process Mapping & Analysis                                                                                                            Accounting & Financial Services

Purchase Request: Workflow (Purchase and Repair Request)

                                Order
                               request
Faculty/Staff


      Order                   Verify order
     Request               (item & vendor)

                               Vendor                                                                       $1,500 Threshold, > $ needs BO
                                      Yes
                                 in                                                                         approval
                           No
                              VMACS?
                                                                                             Enter a        Enter recharge unit ID e.g. A200
                                                                                              DPO           Enter 5 char for unit e.g. BACTE


                                                                                             Decision       Select order type: OV, U3, D3,
                                                                                             Process        M3, RO, S, or PC
                                     if vendor is being used for first time by the unit




                                                                                                                               Print PO: for     Send to Vendor
                                                                                            Additional                         record & for      (except PR)
                                                                                            Approvals                             vendor

                                                                                                                                  Order Yes
                                                                                                                               No type
Hosp Serv Supervisor/Delegate

                           PO
                          Module
                                                                                                                                                  daily feed




VMACS


                 New           Vendor                                                         Equipment                                                           Approve         File
                                                                                                                      Process
                Vendor         Recon                                                            Orders                                                             DPO         (Pending)
                                                                                                                      request
                Request
Financial Office


                                                                                                                  DaFIS PR                     DaFIS
                                                                                                                                               DPO
                                                                                                           DaFIS VI
DaFIS


                    Receive
                                   Distribute
                     Item
                                                                                                 No
Receiving & Distribution
                                                                                                                  daily feed




                        Recv                                                              Order in                                                               Close file
                       invoice                                                            VMACS
                      from unit                                                              ?                                                                 The purchase and
                                                                                                                VMACS                Office of                 invoicing is done by
                                                                                                     Yes
                                                                                                                  AP                 Record                    the staff assigned
Financial Office - Invoicing                                                                                                                                   to the Acct.




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                                                                                             UC Davis
Purchasing Process Mapping & Analysis                                   Accounting & Financial Services

   DPO
   The supervisor or the supervisor’s delegate also routinely checks on their unit supplies and when the
   supplies run low a Purchase order is processed. The faculty or staff sends their requests to the
   Supervisor of the hospital services via an informal request method e.g. on a piece of paper. The
   supervisor verifies the product and the vendor requested.
   If the vendor does not exist in the VMACS system the Financial Office is contacted with a new vendor
   request via phone or email. The Business office verifies the vendor is new and puts in a vendor
   request in DaFIS as well as in the VMACS system and lets the Supervisor know (Exhibit A).
   The Supervisor or the Delegate enters a Department Purchase Order in the VMACS system (Exhibit
   B). Other than the DAFIS FAU the system also captures a 4-digit prefix for a recharge unit ID like
   A200 and suffixed with a 5 char abbreviation at the end for the unit like ACCTG, TOOTH, BACTE.
   This helps easy identification as well as search. The different order types include OV, U3, D3, M3,
   RO, S and PC. S is for any special orders like controlled substance, animals etc and PC is for
   Purchasing Card. About 90% of the orders are of the OV type. If the vendor entered on the VMACS
   had not been previously used by the unit then the PO goes for vendor reconciliation to the Financial
   Office. The staff then verifies the vendor information and reconciles the vendor to the DaFIS vendor.
   Any supplies or lab supplies are processed in VMACS till a $1,500 threshold, for orders in the $1,500
   to $2500 range approval is required from the Financial Office. Once the DPO has been entered in
   the VMACS system the delegate can indicate additional Supervisor approval. After approval the PO’s
   can be printed, there are two PO print options one for the unit’s internal records that has all the notes
   documentation (Exhibit C) and another one for the vendor (Exhibit D). The vendor printout needs
   additional signatures and is generally faxed to the vendor.
   Every night the DPO feed takes the orders from the VMACS system and feeds it into the DaFIS
   system. In case of errors the office is notified via a DaFIS email notification. A report is also printed
   at the office with all the DPO that were processed including individual POs. In DaFIS a DPO is
   created in the Account Manager’s Inbox. The Account Manager reviews the DPO and approves it.
   After the DaFIS DPO is approved the PO is filed in a pending file by the Account Manager.
   At year-end after Supervisor input, any pending PO’s or not approved PO’s are cancelled.
   Sierra Spring water contract is processed on an open DPO and payments are made against this DPO
   for the whole year. At the end of the fiscal year the DPO is closed and anew one is created.

   Purchase Requisition
   The Account Manager processes all requests over the threshold amount as a DaFIS PR. At the
   completion of the PO the buyer sends a FYI notification to VMTH. The Financial Office then notifies
   the Supervisor about the PO and estimated delivery date.

   Equipment
   All equipment purchases need the Hospital Administrators approval. The unit supervisor sends the
   request to the Hospital Administrator and the Administrator approves with fund information. The
   Supervisor bring in the item specification and quotes to the Financial Office.
   A DaFIS PR is processed and a quote is always sent. All supporting document is sent though
   intercampus mail. The office normally waits for 2 weeks before contacting the buyer unless it is an
   emergency order.

   Controlled substances
   All requests are entered in VMACS with S order type but this type of order is not loaded in the DaFIS
   feed and the Account Manager has to process a DaFIS PR. When the supply has run out then the
   buyer assigned to controlled substances is called. The buyers process the order as a rush PR (this is
   different from emergency).
   Some of the DEA type 2 orders require the vendor to complete additional paperwork and the buyers
   have been provided with VMTH’s FedEx number to expedite the ordering. For other orders the
   request goes through the normal PR steps.



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      Routing is based on where there is tax associated with the order and both the PO and VI go
      through special conditions routing as part of FDA approval requirements.

      Animals
      When an animal is purchased the protocol is also entered in the explanation field. The document
      goes through special conditions routing to different approvers depending on the animal. VMTH only
      purchases large animals.
      When the VMTH staff has to purchase cattle at auctions an emergency PO is required. The cattle
      usually have some problems and are used for resident surgery teaching. The Account Manager
      contacts the Purchasing Manager and a PO number is generated for VMTH (before a PR). This
      PO is used to buy the cattle at the auction after the purchase a Purchase Requisition is entered in
      the system. The earlier method was to have the auctioneer pay the seller and VMTH would later
      pay the auctioneer. This added an additional financial burden on the auctioneer making it an
      infeasible approach.

      Services
      On an annual basis an Independent Contractor Agreement has to be written for the State Fair
      livestock show. Other services include design of furniture from UCF.

    Purchasing Card
    About 53 Supervisors have Purchasing Cards and a supervisor can have multiple cards. All
    cardholders go through in-house individual or group training. VMTH is unique in that certain items
    like Business cards, periodicals, books that are normally allowed on a Purchasing card are not
    approved for VMTH staff due to internal controls and the funds associated with it. On the other hand
    food that is not allowed on the card is an approved VMTH purchase and has been approved by the
    Central Purchasing. When there are changes to the card policy the staff are required to sign on an
    acknowledgement sheet indicating understanding of new policies (Exhibit E). Every new staff is given
    a file to store the invoices and this is submitted to the Financial Office monthly along with the bank
    statement. All purchase requests on a card have to be entered in the VMACS system as PC order
    type and therefore no logbook is maintained. This type of DPO is not fed into the DaFIS system.
    When there is activity on the card the account manager gets the DaFIS FPD document, this is
    matched up to the submitted invoice and bank statement. DS 54 report is used to validate the
    transactions. A separate spreadsheet is kept to track the card balance for the fiscal year and this
    spreadsheet is updated monthly. The card is monitored for no or unusually high activity. The
    Personnel Office informs the Financial Office when the employee is leaving, change in name etc.

Receiving and Invoicing
All items arrive at the receiving and distribution from where the item is sent to the unit that made the
purchase. If for some reason the purchasing unit cannot be tracked then the Financial Office is contacted
for further information. After the item is verified at the hospital services unit the invoice is sent to Financial
Office for invoicing. If the purchase order was processed in VMACS then the Invoice is also processed in
the Accounts Payable module of VMACS. The VI is then fed into DaFIS through an overnight batch
process. The next morning the Account Manager verifies the VI was processed and the dollar amount is
correct. In case of errors the Account Manager contacts Accounts Payable. The Account Manager then
fixes the payable for the PO in VMACS and this feeds into DaFIS again.
Some of the OV DPO might be no charge e.g. Pharmaceuticals in which case the DPO is closed and no
invoicing is done.
VMTH is the office of record for the VI’s processed on feeds and all the files are kept by the fiscal year.
Every morning the Financial Office does the check balancing and in case of errors calls the A&FS AP
office.




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Repair Request
   DRO
   If the repair request is less than the $1,500 than the Supervisors put in the request in VMACS system
   as a RO type. Requests up to $2,500 can be entered in VMACS with approval and if more than this
   limit than a DaFIS PR is initiated.

    Purchase Requisition
    Sometimes when equipment is broken example ICU and the repairman is already on site an
    emergency PO might be required. The Account Manager initiates a DaFIS PR and faxes the
    attachment to Purchasing. The Purchasing Manager is called to request emergency ordering, once
    approved the request is assigned to a buyer.

Receiving and Invoicing
Same as Purchase Request

Agreements and Contract Tracking
Blanket Agreements are commonly done for supplies and materials and the purchase against the
blankets are done in the VMACS system. Since the dollar threshold is for a blanket is typically more that
an OV, these types of transactions are allowed. All the blanket agreements are stored in a spreadsheet
for monitoring purposes and two months is advance the Supervisor is contacted for renewals. The
Manager fills out a form if renewal is needed. Requests are sent to Purchasing well in advance of the
expiration date.
The Supervisor makes the request for maintenance equipment and track the equipment with the
agreement.
Note: Independent Contractor form has gotten better.

Variations
    Emergency Orders
    Most emergency requests are sent to the Purchasing Manager unless noted otherwise in the VMTH
    Purchase Requisition section.

    Confirming Orders
    If a confirming order has occurred then a letter is required from the Supervisor with the hospital
    Director’s signature. The letter states the circumstance of the purchase and what steps are going to
    be taken to prevent it in the future. The purchase of pigs for the state fair is always a confirming order
    and they go through the process every year. Purchasing is aware of this and approves it.

    Change Order
    If there is a change order the buyer is emailed with the change. If a component is being added then a
    separate quote is sent. The buyer sends a FYI notification at the completion of the change order.

    New Faculty Hire
    The Academic department mostly handles new faculty hires but if VMTH commits any funds as part
    of the parcel then the Financial Office is involved in the purchase. The faculty is requested to process
    the request in advance.

Reports
VMACS system has a report of activity for an account manager and their turnaround times.
Other DS reports that are used include DS 38, 44, 54 and 256.
Information from DS like the expenses by the account is used to plot graphs and distributed to the
Supervisors.
A spreadsheet is used to track equipment purchases by the account.




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Best Practice
   1) Purchasing card use – level of use, reviewing, training, systematic log of all transactions in
       VMACS.
   2) All internal requests tracked systematically and, purchase and Invoice tracked together
   3) Contract tracking spreadsheet
   4) Maintain a running PO for Sierra Spring Water for the given fiscal year and all VI’s are paid off of
       the single PO.
   5) Currently developing web- based interface to the existing database.




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6.1.4 Exhibit A: New Vendor in VMACS




6.1.4 Exhibit B: VMACS Departmental Purchase Order




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                                                                        UC Davis
Purchasing Process Mapping & Analysis              Accounting & Financial Services

6.1.4 Exhibit C: PO Printout for Internal Record




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                                                               UC Davis
Purchasing Process Mapping & Analysis     Accounting & Financial Services

6.1.4 Exhibit D: PO Printout for Vendor




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                                                                       UC Davis
Purchasing Process Mapping & Analysis             Accounting & Financial Services

6.1.4 Exhibit E: VMTH Purchasing Card Checklist




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6.1.5 California Animal Health & Food Safety (CAHFS)
(Analysis meeting with: MSO)

Mission: CAHFS’s mission is to provide the citizens of California with the highest quality diagnostic
laboratory support service for:
    - Livestock and poultry disease control
    - Enhancement of livestock and poultry health management
    - Ensuring the safety of foods of animal origin
    - Protection from diseases common to animals and humans
    - Equine health and performance
    - Recognition and dissemination of new knowledge

Organization: Davis is the Main lab and there are four other branch labs at Fresno, San Bernardino,
Tulare and Turlock. The CAHFS Director resides in the main Davis lab and each branch has a Branch
Chief. The labs are divided into Sections with a Section Head and Lab Manager. There are about 170
employees at CAHFS.
The branch labs each have their own Purchasing offices although all Purchase Requisitions, invoicing
and payroll are processed at the Davis Business Office.

Training: DaFIS and in house training is given to all Purchasing staff. The Purchasing Assistants from
the Branch Offices come to Davis for training.

Purchase Commodities: Maintenance agreements, chemicals, reagents, equipment, test kits, etc

In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for CAHFS (Org code: VDAV, VFRE,
VSNB, VTLK, and VTUL) totaled $ 3,978,492.83.

Order Requests
Every year the section heads are asked to provide the Business Office with the list of authorized
signatories (Exhibit A). In the beginning of every fiscal year a budget call is made asking the equipment
purchases that will be made during the year, this request is then approved by the Director.
All requests are made on the order request document form to the Business Office (Exhibit B). The
requester completes the form with the commodity code, item description, price quote, vendor information
and account information. The requester obtains the authorized signature for their section and gives it to
the Business Office. The form has three copies – the white copy is for the CAHFS Purchasing Office,
yellow copy is for CAHFS Accounts Payable and the pink copy is for the order requester.
Once at the Business Office the form is date stamped and the Purchasing Assistant reviews the form for
pertinent information. All orders are filed in a pending order file.




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Purchasing Process Mapping & Analysis                                                                 Accounting & Financial Services

Workflow (Order Request)
CAHFS
                 Fill out Order Request                        Obtain            In the case of PR
                Form (incl. comm. code)                      authorized          provide supporting
                                                                sign             doc & quote
Requester


                            Date Stamp
                             Request

                                                    Check open
 Authorized                  Verify               orders, blankets,            Decision
  sign list               information                 campus                   Process
                                                    agreements



                                                                                                          Run weekly
                                                                                                           report on
              DPO?                      DRO?                  PR?                PCard?
                                                                                                          open orders
                                                                 Yes
                    Yes




                                            Yes




                                                                                     Yes




                                                                                                             Update
             Enter                        Check                                    Place
                                                             For equip
             DaFIS                        vendor                                   order
                                                             check Dir
             DPO                        insurance
                                                              approval

                                                                                                       Pending
             Place                         DaFIS                                                      orders file
             order                         DRO               Setup PR
                Routing




                                                                  Routing




Purchasing Assistant


            Review &                    Review&               Review &                                     White copy for CAHFS
            Approve                     Approve               Approve                                      Purchasing Office
                                                                                                           Yellow copy to CAHFS
                                                                            Also routes to
                                                                                                           Accounts Payable
                                                                            Asst Dir Admin
                                         Printed                                                           Pink copy to Order
                                         DRO to            Attacht sent to                                 Requester.
                                         lab mgr            Purchasing:
                                                              fax/courier

MSO


                                    Receive               Deliver to             Log PO#
                                     item                 requester               and lab
                                                                                  receiver
Receiving


                          Recv packing                Match with                                Send
                                                                               DaFIS VI        copy of
                          slip & invoice             yellow copy of
                           from faculty                                                      invoice to
                                                       order form
                                                                                              pur asst
AP




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    Purchase Requests
    DPO
    The Purchasing Assistant makes sure that the vendor is in the system otherwise a request is made to
    ESS to add a new vendor. The request is checked for existing blanket agreements, open orders and
    other campus agreements. A PO number is then generated using the DaFIS DPO document. The
    order is placed with the vendor and information regarding the PO, order type, delivery etc is entered
    on the form. The DaFIS DPO is now completely fill out and routed for review hierarchy approval. The
    MSO approves the DaFIS DPO and the form is approved. All the copies of the form are then
    distributed.

    Purchase Requisition
    All PR requests are submitted with at least one quote, a vendor and specifications. If the Branch
    office has a PR request the form is sent to the Davis office through daily courier. All equipment
    requests should have had the Director’s pre-approval. The Purchasing Assistant sets up the DaFIS
    PR and the document routes for approval to the MSO and Assistant Director for Administration. The
    supporting documents are either faxed or sent through the daily courier. All equipment requests are
    filed separately for further action upon receipt of the equipment.
    All animal purchases also need the protocol from the faculty.
    In the case of controlled substance the faculty is responsible for detailing if the chemical is a
    controlled substance, who will be using the product and where it will be stored.

    Purchasing Card
    The Purchasing Assistant has three cards one for the Equine lab, 1 for the IS group and 1 for
    administration. The card is kept in a locked drawer. The card is mostly used for online vendors or
    vendors that won’t take a PO.

Receiving and Invoicing
The central receiving receives all items and delivers it to the requester. All information is then logged
along with the PO number and lab receiver. The faculty verifies the package with the packing slip and
turn in the packing slip to the Business Office. Accounts Payable matches it to the yellow copy of the
order form and then processes a DaFIS Vendor Invoice.

Repair Request
   The order request document form is also used for repair requests and the requester provides the
   vendor repair quote. All requesters have access to the current maintenance agreements on the web.
   The MSO at times provides assistance in finding a vendor. Whether the equipment should have any
   maintenance agreement depends on the history of the equipment and the cost of the parts. If it is
   cheaper to replace the equipment then a maintenance agreement is not setup. The section head and
   the lab manager make the decision based on the budget.
   DRO
   Most of the repair requests are within the department delegation and the Purchasing Assistant
   initiates a DaFIS DRO document. Before a DRO can be created the insurance has to be on file with
   Purchasing. If it is not current then the department has to obtain the certificate of insurance from the
   vendor and send it to Purchasing. After approvals the DRO is printed and given to the lab manager.
   If the repair item has to be shipped then a shipping memo is completed and the printed DRO is sent
   along with the repair item.

    Purchase Requisition
    The department has about 3-4 requests on a PR yearly and in the case of emergency Purchasing is
    contacted.




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Receiving and Invoicing
Same as purchase request except the signed work order is required. If the requester does not have the
work order of the packing slip then they have to sign and authorize the repair.

Agreements and Contract Tracking
All blanket agreements are tracked on a spreadsheet with the agreement number, vendor name, begin
date and end date. This spreadsheet is available on the web and 2 months before expiration the contact
person is informed regarding renewal. If a renewal is needed then a Purchase Requisition is entered.
Other agreements used include Fischer, Applied bioscience, Sigma etc.

Variations
    Emergency Orders
    The requester is asked to complete the order form with justification for the emergency.           The
    Purchasing Manager is then contacted with the details.

   Confirming Orders
   The requester has to complete an unauthorized purchasing form with the Director and Dean’s
   signature (Exhibit C). This form is sent to Purchasing with the DaFIS PR. Confirming orders are
   generally not processed on a DaFIS DC unless it was a pre-approved PO for a vendor but due to
   unavailability another vendor had to be selected. DC reimbursements are limited to $250.

   Change Order
   Change to DPO or DRO are processed on a DPCO or RPL. If the order was processed on a PR then
   the buyer is emailed with the request and in the case of price difference the invoice is faxed. Most of
   the time a change order is requested due to the change in the scope of the work.

   New Faculty Hire
   Any special setup required for a new faculty or lab is situation and the Business Office works with the
   faculty to identify the need.

Reports
   - The Purchasing Assistant maintains a list of open orders and blankets.
   - The commodity codes are tied to the object codes and the object codes are tied to the CAHFS
       section numbers. Therefore information is pulled out of DS to a spreadsheet and maintained
       along with the sections.
   - A weekly report is run of the pending DRO, DPO, PR and Purchasing Card status. The report -
       has the PO#, Vendor, Items, Section and Status.
   - Report for turnaround times. E.g. measured from the day the PR was approved at CAHFS to
       when the PO was done.

Best Practice
   1) Weekly report of pending files
   2) Working on Standard Operating Procedures as part of quality manual standards for OIE. These
       procedures are going to be published on the web.
   3) CAHFS Process Improvement Committee
   4) Updates on CAHFS website for blanket contracts, open purchase orders, commodity code/object
       codes used by CAHFS etc.
   5) The end user is responsible for filling the order request correctly and is guided by the Business
       Office. Policies are strictly enforced.
   6) Simple internal request process (order form).
   7) Purchase and Invoice tracked together
   8) Contract tracking spreadsheet




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6.1.5 Exhibit A: Authorized Signatories Letter




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6.1.5 Exhibit B: Order Request Document




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6.1.5 Exhibit C: Unauthorized Purchase Form




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6.1.6 Facilities
(Analysis meeting with Material Operations Manager, Material Coordinator, Information Systems
Manager, Business Office manager and group meeting with end users)

Mission: Operations & Maintenance mission is to provide cost effective, operationally efficient services in
the areas of agricultural services, custodial, grounds, maintenance, facility renewal services and utilities
to support the academic objectives of teaching, research, and public service.

Organization:
Facilities have different services like Agricultural Services, Contract Services, Custodial Services,
Engineering Services, Grounds Maintenance, Information Systems Management, Mechanical
Maintenance and Utilities. The Procurement group has a Manager, three Material Coordinators and three
Assistant Material Coordinators that support about 700 Facilities staff with their purchasing needs. The
Material Coordinators are aligned to different commodity codes. Ordering in Facilities occurs mostly on a
recharge basis where after the service or item has been used the serviced unit is charged.

Training: The Procurement staff has taken DaFIS and Purchasing Card training although there is no
training on the Maximo system for any user at this point. The need for Maximo training has been
recognized and resources are being dedicated to develop a training program.

Purchase Commodities: Service, tools, building/plant materials etc

In the 03/04 FY till April 04, purchase orders (PO, DPO and DRO) for Facilities (Org code: OM00, OM06,
OM6A, OM7A, OM7C, F006, F400 and FS00) totaled $ 9,927,818.73.




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System:
 Maximo: Facilities uses the Maximo system and was purchased from MRO in 1994. Maximo is used
 by the entire O&M organization except Agricultural services and is accessed by 200 plus users.
 Agricultural services mostly use the Purchasing card for purchases. The different modules in Maximo
 include Work Order, Preventive Maintenance, Inventory, Equipment, Purchasing, Labor and Resources.
 The system has all the inbuilt features for automatic recharge of purchases. The GL credit account is
 used as the pass through number and the Billing account number is used for the recharge.
 The system interacts with DaFIS for:
      1) Daily download of the account, vendor, and commodity codes reference tables.
      2) Daily upload of the DPO and PR through the feeds.
 The system was built using C programming on an Oracle, Worktech software is being used for
 validations and the system has been customized for Facilities Business. The future direction is to move
 to the latest upgrade by MRO that has been coded in Java. The support and customization is primarily
 supported by two of the IS staff.
 Document Management System: The Business Office uses Reed Data System’s 2020Doc Document
 Management System to scan invoices. The PO number is used as the index and the invoices are
 linked to the PO in Maximo.
 Management Reporting System (MRS): MRS was developed using the Oracle reporting tool and has
 about 70-75 reports that are actively being used. For a list of reports used by Procurements see the
 Report section below.



                                      MODULES
                                                                         Document
                                                                         Management
                                       $                     2020Doc     System from
                                       Work                              Reed Data Inc.
                         Equipment
                                       Order
                Inventory
                                                                       Scan Invoices &
                                                                       link to PO
           Preventive
          Maintenance


            Labor                        Maximo              Purchasing

                                                                   Download
            Resources                                              certain
                                                                   reference
            Maximo: Third party                                    tables; Upload
            program on oracle                                      feeds.
            database                      MRS
                                     Oracle Reporting Tool




                                                                DaFIS




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Purchase Request


                 Place order on a
                  PR (Maximo)
Requester


                 Supervisor          PR goes to
                  Approval            'WAPPR'
                                        status
Supervisor

        Material Coordinator                                                             Might be bid
        aligned to commodity        Retreive &       Start work
                                                                                         depending on value
                                    Assign PR         on PO
                                                                                         and if new vendor

                                                                  Order
                                                                  Type?
                                                                                            Place
                                                 HV PR                    LV DPO            Order

Purchasing - O&M


                                                             Complete                                DaFIS VI
                                                                              DPO feed
                                         PR feed               PR
DaFIS


                    Receive Item; log          Deliver to
                      in Maximo                Requester
Recv/Dist -O&M


                                                                            AM Inbox       Approve


                                      Recv          Scan& link Invoice to
                                     Invoice          PO in Maximo                       Close
                                                                                         Maximo

BO -O&M




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Requests are made by the end user like the mechanic who either enter the request directly into the
system or forward the request to the shop coordinator. The requester then enters a Purchase Requisition
in the Maximo system (Exhibit A) along with the line items and, the PR is tied to a work order if needed.
The requisition is then sent for supervisor approval. All PR’s have an order type associated with it. After
approvals the status on the Purchase Requisition changes to ‘WAPPR’ meaning it is waiting for
Procurement staffs assignment and a PO is created.
Every morning these approved PR are retrieved and assigned to the Material coordinator aligned to that
commodity code. The material coordinator might assign the PR to the Assistant material coordinator or a
student depending on the PR cost and complexity. Regardless of the PR a Purchase Order is process in
Maximo (Exhibit B).
All theft-sensitive items are also tracked in the system and the custodial information is entered.

    DPO
    Depending on the cost or if a new vendor, the coordinator might opt to bid the PR in which case a
    quote is requested from the vendor. Once the vendor has been selected a Purchase order is
    processed and, the order is either place by calling the vendor or the PO is faxed to the vendor. All
    PO’s are then filed for internal records.
    Every night all approved PO’s are fed into DaFIS this creates a DPO document in the Account
    Manager’s (Business Office) Inbox. The Account Manager is marked as the DaFIS Initiator in
    Maximo. The Account Manager reviews the account information and approves all DPO documents.

    Purchase Requisition
    All high value PR are reviewed by the Material coordinator and the status is marked as UCD
    Purchasing this indicates to the system that the PR has to be fed into DaFIS as a PR document. The
    coordinator is marked as the DaFIS Initiator in Maximo. The coordinator then adds all the required
    information in the DaFIS PR and sends it for additional approvals. All supporting documents are
    either sent through campus mail or electronically. The PR is assigned to a Buyer and upon
    completion of the order the buyer FYI routes the PO document to the coordinator. The coordinator
    enters the pricing in Maximo and, the end user is emailed with the delivery date.

    Purchasing Card
    The end users do not have the card although this is currently being explored at Facilities. There are 5
    cards assigned to different Material Coordinators or Assistant Material Coordinators and all are
    charged against the location 3 account. The card usage is low and, reasons cited include little detail
    on the purchase and workload associated with reconciliation. The card is used mostly for online
    vendors and vendors that do not take Purchase Orders.

Receiving and Invoicing
The receiving function of Procurement is responsible for both receiving and distribution. When an item is
received the item is marked as received along with the received date in Maximo. The item is then
delivered to the requester.
The receiving sends the packing slip and invoicing to the Business Office. The invoices are scanned
using the 2020 docs and linked to the PO. The office then completes a DaFIS Vendor Invoice after
checking the receipt in Maximo, Invoice and the Packing Slip. The Purchase Order is then closed when
all items have been received. Due the imaging system no paper filing is needed.
If the invoice amount is different from the PO then a PNR form is faxed to Procurement and the
coordinator does the PO price adjustment.




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Repair Request
   All repair requests are processed in Maximo the same way as the purchase request with an order
   type of ‘RO”.
   DRO
   Once the PR is approved in Maximo a DRO is created in DaFIS and the status is put on VI-HOLD to
   indicate the request is not approved until the receipt of the invoice. The Purchasing Coordinator
   initiates a DaFIS DRO document and the document routes for approval with the Business Office.
   Before a DRO can be created the insurance has to be on file with Purchasing. If it is not current then
   the department has to obtain the certificate of insurance from the vendor and send it to Purchasing.
   After approvals the DRO is printed and faxed to the vendor. The original DRO printout is sent along
   with the repair item. The repair request is then filed.

    Purchase Requisition
    It is not common to process a repair order through central Purchasing.

Receiving and Invoicing
Same as purchase request.

Agreements and Contract Tracking
When an item is purchased on a regular basis the material coordinator monitors these types of items and
works with the Supervisor to see if setting up a blanket agreement is needed. The usage, the products
and the cost is estimated and presented to the Supervisor. Information is collected from vendors
regarding the materials and item information and, the basis of award is determined. Once all the
information is obtained a PR is completed and all the supporting documentation is sent to the buyer. The
request is sent out to bid ensuring that all the terms and conditions were incorporated. After the blanket
agreement is setup the document is FYI routed to the coordinator. The blanket information is then
entered in a common spreadsheet. Most of the blankets are for location 3.
The spreadsheet is maintained for all blanket requests with the expiration date and 2 months before the
expiration the end user is contacted to decide whether a renewal is required. If the blanket needs to be
renewed then a Purchase Requisition is entered in the system for either bidding or extension.

Variations
    Emergency Orders
    The Maximo system has a priority system and a priority 3 is emailed to the O&M mailing list. When a
    PR required date is within 7 days the system automatically makes the request a Priority 3. These
    requests are expedited and the email attached to the system. The DaFIS PR is manually created and
    the emergency definition is provided. The MM Purchasing Manager is then contacted. This priority
    also helps the receiving staff for quick distribution and tracking.

    Confirming Orders
    Due to the nature of the service at times there might be a confirming order e.g. while paving roads if
    the engineer fell short of materials and the job has already started.

    Change Order
    Change to DPO or DRO are processed on a DPCO or RPL. If the order was processed on a PR then
    the buyer is emailed with the request and if needed the invoice is faxed.

    New Projects
    Items required for Projects might be split into multiple PR’s based on current availability or price.
    These PR are then processed similarly as all purchase requests.

    Buyer Delegation




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   The Facilities Material Operations Manager has been given $50,000 delegation and all PR are
   assigned by the MM Purchasing Manager. Complete transition is expected to occur over time after
   experience with varied kinds of complex orders.

Reports
The Management Reporting System reports include:
   PO by Status and Buyer report
   Expediter Materials report (Exhibit C) – Details the items that are due and past the vendor stated
   delivery date.
   Inventory Flag report – E.g. when the a item has to be reordered
   Material Verification report – all the items ordered by a user

Best Practices
   1) Receiving functionality that captures the receipt and received date.
   2) The Material Operations Manager now has $50,000 delegation from central Purchasing this will
       help in expediting orders and reduce workload at Purchasing.
   3) Management reporting system with several reports
   4) The Material Coordinator’s are aligned with different commodities and, this enables them to know
       the product and pricing well. They are able to monitor items being purchased and suggest setting
       up of Blanket agreements
   5) One of the Assistant Material Coordinators also plays the Expediter role and is responsible for
       monitoring the delivery dates on the orders.
   6) The coordinators look at the date needed field instead of a FIFO method, this way the end user
       needs are met in a timely manner.
   7) The business office and the procurement staff have joint meetings and often use email
       messaging to have smooth communication.
   8) Maximo is a third party tool that is still being supported by the vendor and, customization and
       support required only a couple of In-house developers.




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6.1.6 Exhibit A: Maximo Purchase Request




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6.1.6 Exhibit B: Maximo Purchase Order




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6.1.6 Exhibit C: Expediter Materials Report




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Additional Purchasing Process Improvement resulting from meetings with departments
Note: Process improvements on the purchasing processes have been covered in sections 6.2, 6.3, 6.4,
6.5, 6.6, 6.7 and 6.8 within this document.

       Improvement Areas                                     Recommended Best Practices
a.1)   Commodities Purchased History                         Use of the Commodities Purchased Log
       If a commodity is purchased repeatedly then an        (FIS28) DS report both by the department as
       agreement should be setup.                            well as the Purchasing buyer (Exhibit F).

       Buyer should have a past history report on a          Other?
       commodity purchased for the same organization
       e.g. CR purchased an equipment cabinet through
       sole source and a later date ordered a smaller
       version of the same equipment. The second
       order was given to a different Buyer who did not
       know about the first order information and a lot of
       time elapsed before the sole source purchase
       was made (the CR specialist also had forgotten
       the first order history).
b.1)   Having pre-planning request forms; End user
       request forms need to be streamlined and
       integrated with the requisition process.
c.1)   Having suggested vendors for a commodity for
       the department.
d.1)   Sometimes the attachment is sent by CR but is         Having attachment functionality in DaFIS.
       not received at Purchasing. Purchasing does not
       take any action on the PR nor communicates
       regarding missing attachments. This causes
       delay in the PR processing.
e.1)   The departmental buyer has to self-train on how       Purchasing could provide Buyer training or
       to get quotes and work with the vendors.              provide handouts on buying best practices.
f.1)   On the DaFIS DRO document the serial and
       model number cannot take an alpha character
       and so the information entered in the system is
       not accurate.
g.1)   Departmental Buyer has to work with different         If the buyers are aligned to commodities then
       Purchasing Buyers for the same commodity and          CR would have to interact with select buyers
       not all Buyers are knowledgeable about the            only who are knowledgeable on
       commodity.                                            telecommunication needs.
h.1)   Departments are expected to get the vendor
       insurance and this can be a lengthy process.
       Vendor insurance should be handled at
       Purchasing because they have more
       purchasing/negotiating power and better
       expertise.
i.1)   The DPO information is given to the vendor
       before the DaFIS document has been approved –
       is this an issue?
j.1)   The DaFIS training though useful does not cover
       all the scenarios (commodity bases training
       needed)
       Training mostly covers DaFIS but there is need



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       for policy training.
k.1)   Purchasing card use and campus buy-in is very
       low.
l.1)   Information on the DaFIS Purchase Requisition
       and quotes can be conflicting and confusing at
       times resulting in order errors.
a.2)   Regular users would like a refresher course in
       DaFIS
b.2)   Purchasing Card Management is hard due to
       - Purchase to invoice reconciliation
       - Faculty don’t always use the card properly
       - Internal Purchasing Card training might not be
           effective.    Faculty don’t always take the
           training seriously.
c.2)   There are too many commodity codes this makes
       code selection confusing.
d.2)   Prefer the old way of using agreements where the
       department could make a payment for a blanket
       agreement with a VI instead of having to create a
       DPO and then a VI.
e.2)   Change order process is cumbersome; if there is
       more than a $100 difference between PO and
       invoice then the department has to go through
       Purchasing to do a change order.
a.3)   Turnaround time of 6 weeks is too high. Although
       a better turnaround time has been noticed in the
       last 2 months.
b.3)   No communication/feedback about order from
       Purchasing. Need order tracking to know what
       stage the order is in.
c.3)   Need better definition of sole source and the
       ability to meet the requirements e.g. To test for
       Scrapies in sheep Federal requirements and
       standards is to use VANTANA products, therefore
       have a need to sole source.
d.3)   Steelcase furniture agreement is not working, the
       budget needs are not being considered.
e.3)   Departments should not use Staples because the
       University does not sign other party’s terms and
       conditions. But there are departments that are
       using staples on a DPO, this causes problems
       when faculty from different departments talk to
       each other.
       (Purchasing did agree to use Southwest’s terms
       and conditions and has helped out in the past.
       CAHFS was able to setup a credit account with
       Southwest).
f.3)   Business rules and accountability is an issue with
       end user purchases. Faculty training is needed.
g.3)   Difference between Independent Contractor and
       Independent Consultant is not clear. It appears
       that even Purchasing and Business Contract is



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       not clear.

       CAHFS sends testing mushroom IDs outside and
       has always done this on DPO but now they have
       to do Independent Contractor. Why?
h.3)   Authorized versus unauthorized purchasing agent
       not clear (e.g. if the business officer authorizes
       the faculty).
a.4)   Purchasing Card
       Departments have to figure out by trail and error
       which vendors work best with Purchasing Card.
b.4)   Independent Contractor e.g. Tree trimming,
       topping, contract labor etc
       This process takes a long time including getting
       HR approval. E.g. submitted request to HR on 3-
       4-2004 and HR responded 3       -15 that it was ok,
       however, have not received the hard copy as of
       this date (3-16) to process the PR which will
       probably take another one to two weeks
       (The form has improved from previous versions).
c.4)   Insurance/ PR processing
       Reaction to a PR and insurance requirements
       should depend on the request. E.g. for orchard
       flower experiments the PR should be processed
       early and not require insurance for a day but for a
       period because it is difficult to predict when the
       flowers will bloom.
d.4)   The department has their own contract tracking Can the renewal email notification be also sent
       spreadsheet.                                        to the departments?

a.5)   Account Manager delegation on DPO is an issue      Met with VMTH and recommended system
       – getting it into the system. Therefore, have to   solution in VMACS.
       share the passwords to get it into the system in
       case the Account Manager goes on vacation.
b.5)   All commodity codes in the feed default to 5XXX
       and therefore the DS report is not reliable.
c.5)   Even though the renewals are sent well in
       advance the orders are only processed just
       before expiration.
       The buyers have never called regarding renewals.
d.5)   There is lack of consistency in the service
       provided between the buyers. Have to always call
       to get any information on the status of the PO.
e.5)   UCF Agreement: There are several limitation of
       the products e.g. request to add counter to the
       desk. The product and service are not user
       friendly and even the quality of the product is
       questionable. There is a lot of relocation with
       VMTH and the furniture cannot be moved around
       due to product limitations. VMTH prefers to use
       Techline. The design fee that is charged by UCF
       is questionable; Techline does not charge the fee.
f.5)   Why does VMTH have to go through the same


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       steps of a confirming order for purchase of pigs
       for the state fair every year?
g.5)   Not clear about the definition of sole source
       based on the conversations with the buyers. Is it
       based on the dollar amount, product? Should be
       clear when to use Sole Source.
h.5)   VMTH is no longer vendor changes emails and Meeting with Operation and ESS group. Lia
       the VMACS system is getting out of sync with has sent an email to all affected users with the
       DaFIS.                                               direct access to DS solution.
a.6)   The buyers do their best but do not have an
       understanding of the products and the vendors for
       Facilities.
       There seems to be a need for the units to provide
       education/training to the buyers so that the buyers
       are familiarized with the products.
b.6)   Guidance on the use of the Purchasing card is
       lacking.    There should be some information
       provided about the best practices for using the
       card and when it is best to use the card.
       The reconciliation process seems tedious.
c.6)   Getting the insurance can be an issue. The
       insurance requirements should be driven by the
       amount of service. Earlier there was some
       information of insurance requirements for high
       versus low risk but this is no longer available now.
d.6)   Need some end user training on the different DS
       reports that are available and relevant to them
       e.g. a list of commodities that have been
       purchased




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Decision Process

                LOW-VALUE       PURCHASES OVER         PURCHASES        REPAIR         PURCHASES       PURCHASES      REIMBURSE
                PURCHASE        $2,500                 FROM THE         ORDERS         USING AN        OF             MENTS
                S UP TO                                EXCLUDED                        UNIVERSITY      PUBLISHED
                $2,500*         (Equipment,            ITEMS LIST                      AGREEMENT       MATERIALS
                (Excluding      Services, and           (See List
                Items)          Supplies)              Below)
                Up to $2,500                                            Up to $2,500                   None           Up to $500
 C0ST                                                                                  See Specific
                Per Vendor      Over $2,500            N/A              Per Vendor
 LIMITS*                                                                               Agreement
                Per Day                                                 Per Day
                                                                                       Departmental    Departmental
                Departmental                                                           Purchase        Purchase
                Purchase                                                Departmental   Order (DPO)     Order (DPO)
                                                       Purchase
 FORM           Order (DPO)     Purchase Requisition                    Repair Order
                                                       Requisition
 REQUIRED                       (PR)                                    (DRO)          Must            Order Type
                                                       (PR)
                Order Type                                                             reference the   U3
                OV                                                                     agreement
                                                                                       number
 ORDER                                                 UCD
                Department      UCD Purchasing                          Department     Department      Department     Department
 PLACED BY                                             Purchasing
                                                                                                       DaFIS
                DaFIS                                  DaFIS            DaFIS
 PAYMENT                        DaFIS Vendor                                           DaFIS Vendor    Vendor         DaFIS Direct
                Vendor                                 Vendor           Vendor
 BY                             Invoice                                                Invoice         Invoice        Charge
                Invoice                                Invoice          Invoice
                Purchasing                                                             Purchasing      Purchasing
 OTHER          Card (with                                                             Card (with      Card (with
                limits)                                                                limits)         limits)


Process Improvement
a) Messages should be informative e.g. while using ser vice commodity code on a DPO the user gets the message “Only D-OV commodities are
allowed with a Low Value Purchase Order” (Exhibit C) instead of “This (Service) commodity code can only be processed on Purchase
Requisition”




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Exhibit A: Error Message




Exhibit B: Error Message




Exhibit C: Error Message




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ITEMS EXCLUDED FROM LOW-VALUE PURCHASE AUTHORIZATION

Building Repairs, Products, Services, or Modifications
Animals; laboratory or others
Catering and food-related services (use the Entertainment Expense document)
Charters - air, land or sea
Computer software that requires license agreements to be signed
(does not include registration cards)
Consultant Services or Independent Contractors
Electrical supplies and equipment restricted per P&P 290-85
Employee as Vendor Transactions
Equipment Maintenance Contracts
Equipment Rentals in excess of 31 days
Food Equipment
Furniture
Inventorial equipment
On-site labor-related services of any kind
Personal Items
Personnel Type services
Real property rentals of facilities, storage space, etc.
Respiratory Protection Items
Services or materials that are available at a lower total cost through
a UCD service (e.g., Repro Graphics, Central Storehouse)
Specially controlled items, such as ethyl alcohol, narcotics or
dangerous drugs, Radioactive Nickel Foils and Sealed Sources
Weapons (guns, rifles, etc…)
All products requiring special conditions routing in DaFIS (i.e. to
EH&S, Facilities, etc…)




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    6.2 Purchase Requisition (PR) – Purchase Order (PO) [for high value and excluded items]


              Purchase
             Req @ dept
Department


                                          Purchasing           Yes
                                                                       Sole
                                            Req @                     Source
                    Buyer Assignment




                                          Purchasing
                                                       Buyer                           Purchase
                                                                No
                                                                        Bid             Order
                                                                      Process
Purchasing

                                        Nightly
                                       Download


                                                PR                                                Workload
                DaFIS
                                              System                 RFQ/RFI/RFP                  Database
Systems


The purchase requisition process is processed on a DaFIS Purchase Requisition (PR) document (Exhibit
A). The PR process initiates the purchasing process and by itself the PR document is not an official
purchase order. It is an internal UCD document used to requisition, through the Purchasing Department,
goods and services not approved for direct organizational purchase. The Purchase Requisition document
is initiated by organizations and, when required, is routed to appropriate administrative units (e.g. EH&S)
for approval. The fully approved PR is then picked up by the Purchasing Department for processing. The
Purchasing Department, as required, solicits competitive quotations and releases a Purchase Order to
the lowest responsible bidder meeting the specifications. The Purchase Requisition enables users to
move through the purchasing process by capturing requisition information, establishing internal
encumbrances, and by routing through the proper approval chain like Facilities, EH&S and Extramural
Accounting prior to its arrival at the Purchasing Department.

Purchase Requisition at the Department
Purchase requisition is used to process all high value transactions (more than $2,500 or $1,500 if
equipment) and excluded items. The document initiator completes the PR document with the following
information (details on this document can be found on the DaFIS training website):
     a) Requisition Type (Specific or Blanket) including the date the order is needed. A "Specific
        Purchase" is a request for a one-time purchase of an item, whereas a "Blanket Request" is a
        request for items and/or services on an as-required and frequent over-the-counter basis
     b) Sole Source ID (This information may be provided at a later point to the buyer). The online tool to
        capture sole source information is currently in development.
     c) Suggested vendors for the order
     d) Organization information including the technical contact, billing address and shipping address.
     e) Item and account information

The initiated document is routed for additional approvals. The types of routing available are account
manager, review hierarchy and special conditions routing.

The document initiator also sends all attachments via fax, email, and mail to Purchasing. This information
is added in the notes screen. The attachments include Cover Sheet for PR Attachments (Exhibit B),


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samples, sketches, etc.     Per policy the specifications must be detailed and specific to obtain fair
competition and, to the fullest extent practicable, must not favor one brand, trade name, article,
manufacturer, or supplier over others.

Purchase Requisition at Purchasing.
Purchasing department expects the PR to be submitted in a manner as to allow reasonable time to obtain
competition and timely delivery.
A nightly process consisting of an Oracle stored procedure downloads all approved purchase requisitions
for that day from the DaFIS system into an internal Oracle database. Every morning the processor at the
purchasing Control Desk prints a listing of approved PR’s (Exhibit C) and the purchase requisitions
(Exhibit D). The Control Desk prints the notes screen, equipment screen etc and all supporting
attachments are put together to the PR. A requisition made from a Federal grant fund is attached with
information about the fund (Exhibit E). The PR’s are then manually sorted by specific purchase request
and blanket request. When the processor prints the listing all the PR from the Oracle database is copied
into the RFQ Access database. For Federal funds, the system prefixes the account with an asterisk. The
RFQ Access program is available to the buyers.
The specifics are manually taken to Capital Asset Accounting for additional equipment verification. In the
event of errors, CAA emails the departments directly to inform them of the error. Some of the errors
include misidentifying the supply or equipment commodity code and combining the items into one
commodity code. After the department’s template and fix the error, they send all parties an email with the
new PR number. If the department needs the PR to be rush processed, the processor forwards the PR
for immediate attention.

The specifics PR’s are given to the Procurement Manager and the blankets to the Contracting Manager
for buyer assignment. The buyer assignment is a manual process wherein the manager assigns the PR
based on the commodity code, dollar value and the buyer’s current workload. The managers have
access to a Workload database program that tracks the PR assigned to a buyer and the turnaround times
(Exhibit F). The buyer assignment takes no more than an hour of the manager’s time. The manager
returns the PR’s to the Control Desk for buyer assignment and PR distribution. The departments at this
point can see the buyer who has been assigned the PR and the date assigned. This date is not
necessarily the date the buyer starts work on the PR. The Managers in addition get the Aged Requisition
Report (Cold Fusion Report) on a weekly basis that shows open PR’s that are older than 21 days (Exhibit
G).

The Purchasing department might cancel the PR for the following reasons:
1) If commodity code is not right and the supply commodity code was selected instead of the equipment
    commodity code.
2) The requisition type was not correct
3) If CAA wants all line items combined into one for equipment inventory.
4) When multiple PR’s are sent for the same department instead of combining them into one e.g.
    computer purchases for five PI’s.
5) Due to lack of supporting materials (the attachment are not sent for an extended period of time).

PR with the buyer
Per policy, the buyers are responsible for:
1) Maintaining liaison with ordering department from date of receipt of Purchase Requisition until receipt
of goods or services.
2) Placing order against an existing primary supply agreement or when a primary supply agreement does
not exist selects vendor whose prices are reasonable and offers the lowest cost.
3) Obtaining competitive quotations when required by University wide, guidelines or State law.
The purchase must be awarded to the lowest responsible bidder meeting specifications.




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All orders go through the same process regardless whether it is a specific purchase or blanket request.
The buyer verifies all the documentation and specification. If needed the buyer contacts the requester or
document initiator for additional information. The buyer then decided the award method:
     a) Sole Source (Sole Source Process) OR;
     b) Bid (Bid Process – RFI/RFQ/RFP). Per policy and state law the buyer has to solicit competitive
        quotes. A purchase order is issued to the lowest responsible bidder meeting the required
        specification. All requisitions more than $50,000 have to competitively bid unless sole source.

Requisition Types
Specific PR Type
The specific purchases are processed for various commodities as one-time purchase. A specific request
can either be a sole source or a bid. An internal encumbrance is created for each item ordered on the
requisition.

Blanket PR Type
Contracting Services establishes annual blanket agreements of $5000 or more for departments for
supplies and services that are unique to individual departments on an as required or frequent basis.
Once in place, departments are allowed to place orders for the items listed on the contract. The
agreement has per order and per year limit attached to it. These agreements can either be sole source or
competitive bid and can be written for more than a year. A blanket request does not create any internal
encumbrance. After a blanket is established Departments process a DaFIS DPO to order items on the
agreement and encumbrances are established at this point.

Agreements are generally written for 7-10 years. The renewal of an agreement is based on need, service
and funding. If the agreement is a renewal, the PR should reference the previous PO. The Agreement
expiration report written in Cold Fusion alerts the Manager 10 days before the agreement expires. The
report is emailed on a weekly basis. The buyer who sets up the agreement usually also does the renewal
for the same agreement.




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PR Workflow
 information, attachments
     Request additional




                            Requestor                          Decision                              Initiate a                    Specify             Enter sole             Enter detailed info   Submit
                                                               Process                                DaFIS                   Requisition type,       source ID if             about the item &       for
                                                                                                         PR                  suggested vendor,         available                note the list of    approval
                                                                                                                              org/ account info                                  attachments


                                                                                                                                                                                                    Account
                                                                                                                                         Correct/Cancel
                              Document                                                                                                                                          Approved            Manager
                                                                                                                                                                       No
                               Initiator                                                                                                                                                            Approval
                                                                               Forward Attachments




                                                                                                                                                                                      Yes
Department



                                                                                                                                Correct/Cancel                                      Special Conditions
                                                                                                                                                          No
                                                                                                                                                             Approved              Approval e.g. EH&S,
                                                                                                                                                                                    Extramural Acctg
Other




                                                                                                                                                                 Yes
                                                                                                                                       Download Approved PR
                                                                                                                                             (nightly)
                                    notify in case of errors




                                                                        Control                                                  PR                           DaFIS
                                                                         Desk                                                  Program

                                                               Print the PR, notes,
                                                                                                                                                                                                                              Sole
                                                                    equipment                                                                      Cancel error




                                                                                                                                                                                                                  Yes
                                                                                                                                                                                                                             Source
                                                               information. Verify                                              Manager             doc; Buyer                Buyer                     Starts
                                                                                                                  Specific




                                                                  attachments.                                               (Procurement)         Assignment               assign dt                  work on    SS or
                                                                                                                                                     (paper) &              entered in                   PR,      Bid?
                                                                                                                                                     Return to               DaFIS          Buyer      Verifies




                                                                                                                                                                                                                        No
                                                                For Federal grants                            Blanket                              Control Desk                                         doc.,                  Bid
                                                                    attach sys                                                                                                                          spec.                Process
                                                               generated grant info                                            Manager
Purchasing                                                                                                                   (Contracting)
                                                                    (manual)




                                                                                                     Return
                                                                      Send




                                                                  Verify equipment
                                                                   information on
                                                                      specifics
CAA




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Sole Source Justification Process
For a sole source purchase the Sole Source Justification & Disclosure Statement (Exhibit H) is sent as an
attachment to the PR to the Purchasing Department explaining in detail the uniqueness of the goods or
services requested. Per policy, the justification must be supported by factual, auditable statements of
need, and signed by the principal investigator, department head, or director. University employees who
were involved in that decision must disclose in writing whether or not they have a potential or actual
conflict of interest. Purchasing files all justification and disclosure forms with original signatures.

The buyer ensures all the required documentation is available and validates the order information. If the
order is validated as a sole source, the buyer starts researching the product along with pricing and starts
building a strategy and finally negotiating with the vendor. The negotiation may be on the quote provided
to the requester or on a new quote. Once the vendor and the buyer have reached an agreement the
purchase order is processed.

Sole Source Workflow


                                      SS Justification &
                                         Disclosure
                    send (originals




                                      Statement (form)
                      required)




Department



                                                             Research
 Purchase          Verify if                Get add                           Purchase
                                                           pricing; Build
 Requisiton         sole                  approval if >                        Order
                                             buyer            strategy;
                   source                                                     Process
                                                            Negotiation
                                           delegation
                                                              process

Buyer




                                                                SS
                                                               Vendor
Vendor


Bid Process
Based on the PR the buyer determines the bid method whether Request for Information (RFI), Request
for Quotation (RFQ) or Request for Proposal (RFP).
A RFI is used to solicit qualification and other vital information from potential suppliers, contractors or
professionals/consultants. RFI is a tool used to search the marketplace for qualifying vendors to provide
goods or services. In certain situations like professional services, a RFI may result in an award.
Departments send RFI requests via email rather than the PR process. In certain situations like
professional services, a RFI may result in an award.
A RFQ is used to solicit pricing, availability, and terms of purchase for a clearly defined and specific
product or service from qualified suppliers/contractors. The RFQ is based of the information provided by
the requestor on vendor qualifications, technical and performance specifications, specific terms and
conditions, and basis for award criteria. A RFQ is the most common bid method and depending on the
complexity and pricing can be a telephone quote, quick quote or a formal quote.
The RFQ Access Program can be used for formal or quick quotes (Exhibit I), although buyers use it
mostly for quick quotes. The buyers are not required to use this program. All the PR information is


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available to the buyer in the RFQ system and the buyer can enter the terms and conditions. The
reference tables in the RFQ system are separate from the DaFIS table; these tables are updated on an
as needed basis. The quotes are formatted by the system (Exhibit J) and can be faxed or emailed from
the RFQ system.
A RFP is used to solicit proposals from prospective suppliers, contractors or consultants to provide
products or services of a non-specific nature. In this case the end user knows the required result, but not
necessarily the complete specifications, scope of work or individual tasks necessary to reach that goal.
Requestor provides minimum qualifications, scope of work, performance requirements, specific terms and
conditions, and basis for award criteria.

Once the assigned buyer has verified all the required information, the preparation of RFI, RFQ or RFP
document is started. This time frame depends on the complexity and thoroughness of the submitted
documents and the assigned buyer’s workload. Any expenditure of $50,000 or more for goods or
services, other than personal or professional service has to be competitively bid unless sole source. The
bid is sent out for vendor solicitation by contacting the known vendors and/or by posting the bid on the
Materiel Management website. Per policy, solicitation should be from at least three sources. For RFQ
and RFP solicitations, before a bid is solicited the user has to decide one of the two methods to determine
lowest responsible bidder - by cost alone or the cost per-quality-weighted point method. The method of
rating is subjective based on the technical specification. An optional pre-bid meeting or site walk can be
scheduled or question/answer period can be included in the bid.

  After responses are received, the solicitation is closed, and Purchasing reviews the responses for
completeness. The buyer ensures that the quoter is responsible per Business and Finance Bulletin
(BUS-43) and has the capability in all respects to fully perform the contract requirements and whose
integrity and reliability will assure good faith performance. When specified only quotations from quoters
determined to be qualified are evaluated. Known suppliers with a current record of satisfactory
performance and reliability may be considered pre-qualified for goods and services they have previously
supplied. The bid document should include the date; time and place responses and the list of required
submittals. The bid request should specify any other requirements and/or restrictions for the
bid/response.
If the lowest responsible method was by cost alone, the award is made to the vendor with the lowest cost
meeting the specification. But if the method is on a cost per quality point basis the buyer prepares a
quality point spreadsheet for departmental review. The evaluation (cost per quality point method) should
be by more than one person and be based solely on the technical specification and not pricing.
Departments can require oral presentations from selected responders. On completion of review the
evaluation is sent back to Purchasing (Exhibit K). The buyer reviews the evaluation, calculates the final
scores and identifies the selected vendor based on the scores. The buyer enters into final negotiation
with the selected vendor; the agreement or contract is written and awarded to bidder.
This time on this process is variable depending the quote type and the complexity of the solicitation.

To expedite the processing for orders less than $10,000, Purchasing has implemented the Accelerated
Order Program. Under this program, the buyers are encouraged to use known vendors that are qualified,
provide competitive pricing and with a satisfactory performance record. The buyers can use vendor and
price justification for the basis of the award.




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Bid Workflow

                                                 Optional pre-bid meeting           Review and           Vendor Oral
                                                     or site walk OR              Evaluate (Quality      Presentation
                               Requester




                                   Information
                                                  question/answer period               Points)

Department


 Purchase      Method: cost     Prep RFI,                             Receive &       Send for
                                                     Vendor            Review      Departmental
 Requisition   only or cost/   RFQ or RFP          Solicitation/
                quality pt      document                              Response    Review and Tech.
                                                 Supplier Prequal
                                                                                     Evaluation

                                 In the case of quick
                                 quote/telephone quote the                            Review and
                                 process is shorter. Once the                           identify
                                 buyer receives the vendor                          selected vendor
                                 quote, vendor selection and
                                 award is made.
                                                                                                         Award          Purchase
                                                                                      Negotiate
                                                                                                          Bid            Order
                                                                                                                        Process
Buyer



                                                                            Bid
                                                                                              Selected
                                                                                               Vendor

                                                                                  Selected
                                                                                  Vendor(s)
Vendor


Award/Contract
A contract is awarded only if the cost is within the project funding allotment and bidder’s proposal
complies with all mandatory terms and conditions identified in this RFQ/RFP. The buyer completes a
DaFIS Purchase Order document and enters the items with specification along with contract terms
(Exhibit L). The final contract documentation is prepared by the buyer outside the system and in the case
of RFQ is based on the RFQ document. The buyer prints the PO and the first copy is signed by the buyer
and sent to the vendor (faxed or mailed). The PO document is FYI routed to the document initiator. All
documentation for equipment is stored for 5 years and for services for 3 years. If the award amount is
above the buyer’s delegation then the document is routed for additional signatures. Information about
rebates offered by the vendor is sent to the Director, Materiel Management for tracking.




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PO Work Flow

                                                                                       Receive
                                                                                       Contract
                                                                                    documentation




                                                                                                       Send Contract
                                                                                                         document
                                                                                           FYI route
Department
                                                            Yes
                                                                   Ad-Hoc route
                 Work on            Enter DaFIS                       for add            File
                                                      Above
                 Contract            Purchase                        approval         Documents
                                                       buyer
               Documentation        Order (refer
                                                    delegation?




                                                                                          Send
                                       PR#)
                                                                    No
Purchasing



                                                                                      Contract

Vendor


Variations to Main PR-PO Scenario

   Emergency Order
   Emergency order requests come in via email or phone call (with email backup) to the Purchasing
   Manager or the Buyer. If the order meets the emergency criteria the PR is processed as a rush. If
   the PR was approved on the date of the emergency request, the control desk rush prints the PR and
   forwards the PR to the buyer. The buyer processes the PO and adds the emergency phrase.

   Emergency criteria include
      1. Life threatening situations for human and/or animal life.
      2. Catastrophic events such as, flood, fire, earthquake or other natural disasters that pose a
         threat to human and/or animal life, adversely affect the University mission, or that threaten
         University property.
      3. Critical equipment failure, either on or off campus, that seriously increases the risk exposure
         of the University or that may cause an extraordinary impact on funding.
      4. Organized labor strikes, of local, regional or national scope.
      5. Weather conditions affecting agriculture, human and animal shelter, and construction.
      6. Public safety incidents that seriously increase the risk exposure of the University or threaten
         life or property, such as riots, criminal acts, and terrorist actions.




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   Emergency Order Workflow


             Request Emergency         Process
               Order; Provide          Purchase
               reason (email)         Requisition




    Department

                                           Yes
                                                    Process Purchase      Place
                                                    Order; Add emerg.     Order
                                       PR                 clause
                                    printed?
                  Manager/Buyer                       Control Desk
                                               No
                                                       rush prints
                                                           PR
    Purchasing


   Confirming Order
   A confirming order is issued for an unauthorized purchase when the person making the transaction
   did not have the authorization to commit funds. The purchase payment could be in the form of
   personal reimbursement or payment for a vendor invoice. Any purchase reimbursement over $500
   has to be processed on a Purchase Requisition with approval and justification from Dean or
   Department Head/Designee. If the purchase is not approved, the requester has to pay the full
   amount of the unauthorized purchase. The buyer goes through the process of pricing the item, and
   provides the results to the Purchasing Manager. If the buyer pricing on the item was the same or
   more as the purchase payment, the confirming order is stamped approved and the buyer enters a
   Purchase Order. If the buyer’s pricing is less than the purchase payment, the Purchasing Manager
   emails the information to the Dean or Department Head with a copy to the Director, Materiel
   Management. In this case the Individual is responsible to pay the difference in the amount. The
   vendor is always paid the full amount regardless of this pricing. The buyer indicates the PO as
   confirming by adding a new line item with confirming commodity code.




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   Confirming Order Workflow

                        Unauthorized
                         Purchase


                       Approval from
                      Dean, Dept Head


         Requester                                                                 Process
          pays full          Approved?          Process                             DaFIS
          amount        No                      Purchase                            Direct
                                               Requisition                         Charge
                                 Yes




   Department


                             Buyer gets item
                               pricing from


                                Pricing <=
                                                Yes
                                purchase
                       No
                                  price?                             Receive
                Approve/                          Inform           concurrence;
                Pay full                       Dept/Director     Approve buyer's
                amount                             MM            item price only


              The purchase payment can be                            Requestor
              to the vendor or reimbursement                         pays the
   Purchasing to the employee.


                                                                                   Amount    No
                                                                         Yes       > $500?

                                                               Disapprove and
                                                                                             Approve
                                                                advise going
                                                                 through PR
   Accounts Payable


   Blanket Agreement Renewal
   Agreements are generally written for 7-10 years. The Agreement Expiration Report written in Cold
   Fusion alerts the Manager 10 days before the agreement expires. The report is emailed on a weekly
   basis. The buyer who sets up the agreement usually also does the renewal for the same agreement.
   The renewal of an agreement is based on need, service and funding. Departments enter the renewal
   request on a P, referencing the previous PO. Purchasing Department processes the renewal on a
   DaFIS Change Order and cancels the PR.




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   Blanket Agreement Renewal Workflow

                                Inform           Request
                              Department         Blanket
                                                 Renewal
    Department


                 Agreement                      Receive        Process
                 Expiration       Buyer
                                                  PR          DaFIS CO;
                   Report                                     Cancel PR
    Purchasing



Controls and Reviews
   a) The buyers initiate the bid or sole source process based on the PR.
   b) The Control desk reviews the PR for completeness including attachments.
   c) The buyers ensure that the quality points and vendor evaluations are done properly.
   d) Buyers create the bid and contract documents with appropriate terms and both the vendor and
       the buyer sign the documents.
   e) If the purchase is above the buyer’s delegation amount, the PO is ad-hoc routed for additional
       approval in DaFIS.
   f) In addition the PO is FYI routed to document initiator.




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Cycle Vs. Processing Time

                                             Buyer
                                             starts,         Prepare
              PR       PR @       Buyer      verify Identify Vendor Vendor    Review/Vendor Enter
              Approved Purchasing Assignment info vendors Quotes solicitation seln          PO/Award Total
Processing
Time       Day 0       10 min     < 48 hrs
                                               Day 3
Cycle Time Day 0       Day 1      Day 1-2      - ??                                                     8 days*
                                  EQ Approval               RFQ
                                  Attachments               program
                                  Mgr assign                Enter
                                  Enter in                  terms
                                  DaFIS              Buyers Prepare                          Enter PO in
Bottlenecks            Nightly    PR in              vendor docume                           DaFIS, Fax
:                      download   Buyer's desk       list   nt      Fax, Phone               PO
                                                                                             * Average based on
                                                                                             P4P measure
                                                                                             Difference:




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Process Improvement

     Improvement Areas                                      Recommended Best Practices
a)   Internal Purchasing PR-RFQ program                     - The Bid process is a core function in
     The program has the ability to print PR with             Purchasing and needs to be integrated into
     listing, identifies federal fund accounts and allows     DaFIS.
     manual buyer assignment; terms and conditions          - The buyer should have the ability to create
     can be added. The quotes are formatted and can           the RFQ from the PR and finally create the
     be faxed out of the buyer’s desktop.                     PO from the selected bid. The reference
                                                              tables should be made available real time.
     The program has limitations such as:                   - Some of the features from the current
     - The RFQ program is not integrated with the             system should be incorporate into the
        DaFIS system and causes inefficiencies. The           system like creating formatted bid
        buyers have to separately enter the DaFIS PO          documents, ability to fax bid, Federal Fund
        information.                                          Information.
     - The database has its own reference tables and        - Terms and conditions should populate
        updates occur upon request.                           automatically based on the commodity,
     - It is a RFQ system and buyers use it for quick         funding source etc.
        quotes only. The program does not support           - The bid should be faxed or emailed and in
        RFP, RFI, blanket agreements and formal               addition be automatically posted in the MM
        quote.                                                bid listing website.
     - A quality point evaluation is done on a              - The ultimate goal is to automate RFx
        spreadsheet and is not attached in the system.        creation, approval and distribution.
        The spreadsheet is normally shared with the         - Reduce redundancy in creating the bid and
        departments via email.                                the contract document. Consistency in the
     - Cumbersome to make attachments and email               use of templates.
     - Have to reenter the specification into the           - Vendors should have the ability to submit
        system incase of error on the PR                      their bid documents to this system.
     - The Part number or Item number is not                - Bid analysis and supplier selection should
        transferred to the RFQ system and has to be           be part of the system. The evaluations
        reentered                                             should be available online and should be
     - Cannot import the Vendor Address, the Buyer            attached to the PR and bid systematically.
        has to reenter it
     - There is difference in keyboard/typing – the
        way the RFQ program behaves versus other
        program e.g. enter on the keyboard
     - Need for standard forms (e.g. formal RFQ)
b)   Lack of baseline measures                              To accurately track the performance and
     The internal measures available are the time           turnaround times other measures are required
     taken from PR approval date to PO date and from        like:
     the Buyer Assign date to PO date.                      - Capture the buyer start date. The start date
                                                               to PO date is the actual turn around time for
     The buyer assign date in most cases is not the            the order.
     buyer start date and the end user might perceive       - The time between the buyers assign date
     this date as the date the buyer starts working on         and the start date is a workload measure.
     the request.                                              To reduce overall cycle time, the time
                                                               between the assign date and start date
     The Partnership for Performance measures has              should be short.
     metrics for the average purchase order                 - Track the dates for a RFI, RFQ or RFP.
     processing days. These averages include RFI,              The documents detail the schedule dates
     RFP and formal RFQ that have long cycle times             but this is not tracked systematically.
     and PO for example controlled substances that          - Track the number of quick quotes, formal
     take one day. The processing times for the                quotes, RFI, RFP, and Sole Source.


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     different types of purchase processes should be
     separated for better information.                     This will provide measures to gauge the
                                                           success of any changes that are implemented
                                                           like the Accelerated Order Program.

                                                           If a RFX system is implemented the system
                                                           will automatically log these dates.
c)   Buyer Assignment                                      Buyer assignment should be automated based
     The buyer assignment is currently assigned            on the commodity code and order type,
     manually by the Manager and the control desk          delegation amount and buyer’s workload. The
     enters the assign date into the DaFIS system          manager should have the ability to distribute
                                                           the workload at all time.
     There is limited alignment between the buyers
     and the commodities.                                  Right now the assignment process is not the
                                                           bottleneck because of the number of open PR
                                                           at the buyers desk. But once the efficiencies
                                                           in the system take into effect, the buyer
                                                           assignment might well cause the slow down.

                                                           Have to consider buyer backup process.
                                                           Assignment process can be team based with
                                                           team leaders.

                                                           When the document initiator is entering the PR
                                                           they should be able to see the buyers it is
                                                           going to go to (like the look ahead feature in
                                                           Routing) for clarifications.

                                                           Having buyer team and aligning the teams
                                                           with the commodity.
d)   Lack of order tracking system for end users.          The technical contact or the PR requester
     The requester or end user (technical contact in       should be able to track the status of the
     the PR process) cannot access any information         request at all times. This will help in providing
     about their order status and depend on the            real time information. This tracking
     document initiators for information. The users        mechanism has been likened to the HR
     can contact the buyer for information but this does   position tracking system (input from ESS).
     not occur often.
     Once the PO has been completed the end user           This automated customer service function will
     does not get the information and has to rely on       provide users with faster access to
     the document initiator to relay the status.           information, and minimize the time that
                                                           Purchasing department employees spend
                                                           acting as information intermediaries.

                                                           At the completion of the PO, an email should
                                                           be sent out to the technical contact and
                                                           requesting feedback on the order process.
                                                           The feedback questions could be used to build
                                                           a performance metrics based on Balanced
                                                           Score Card (with input from Education and
                                                           Support Services). The email should also
                                                           provide information on vendor performance
                                                           evaluation.
e)   Vendor performance is not captured and                The vendor performance should be captured


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     sometimes this information is shared late during       either after the PO has been completed or
     another process (e.g. after bid closing the            during the invoice process after the product is
     department mentions past poor service by the           received.
     selected vendor). There is an online form
     (Vendor performance report, Exhibit) but it is not     The measures to rate vendor performance
     used and buyers do hear about vendor                   include on-time delivery, customer service,
     performance during the bid but this is not logged      product satisfaction etc.
f)   Evaluate the value of doing the quick or telephone     These PR’s with Departmental quick quotes
     quotes at Purchasing. Many Departments                 should be included in the Accelerated
     already provide quotes for multiple vendors on the     Ordering Program.
     PR.                                                    The vendors selected should be in the central
                                                            bidder repository of approved vendors for
     Purchasing provides valuable service in the RFI,       quick processing.
     formal RFQ and RFI process. The expertise lies         Other possible solutions are training and
     in these areas and the buyers should be able to        delegating these types of bids to the
     concentrate in these areas.                            departments.
g)   Attachments to the PR are faxed, emailed or            Attachment functionality
     mailed to Purchasing. The Control desk spends          The DaFIS system should support the ability
     time matching the attachment to the PR and             to attach supporting documents at the source.
     ensuring all the attachments have been received.       This will reduce the paperwork that has to be
                                                            moved around and associating the documents
                                                            with a PR.
                                                            Fax/Email functionality
                                                            The buyers should be able to fax or email
                                                            bids, Purchase Orders directly from the
                                                            system.
h)   Approval by Equipment Management is a manual           Approvals by Equipment Management could
     process. Right now the control desk manually           be part of the Special Conditions Routing
     takes all PR’s to Equipment Management for             during the PR approval process. This way all
     approval (all specific PR’s are taken because the      information will be logged during and be part
     departments don’t use the commodity codes              of the process.
     correctly and sometime use the supply object           Alternatively this process should be part of
     code instead of equipment object code).                Purchasing.

     When there is a change e.g. commodity code was         Note: Current efforts are being made to raise
     wrong or the lines items have to be clubbed the        the equipment threshold to $5,000 in FY 2005.
     PR is cancelled. The department initiates a new
     document and the document has to once again
     go through Account Manager and Special
     Conditions Routing.
i)   Equipment orders between the $1,500-$2,500             If the equipment threshold and high value
     dollar range are sent through the PR process           dollar limit are the same then there is no need
     because they need Equipment Management                 to unlink these two processes.
     approval. These requests account for about 1000
     orders.
     The buyers have the same process for $1,500 or
     a $2,500 requests.
j)   Vendor – commodity information.                        A best practice is to have a contract data
     Each buyer keeps their list of vendors and bids        repository that should include the right supplier
     are sent out to this list (bids are posted on the MM   for right purchasing need. This increases
     website too) but there is not central repository       procurement efficiency and reduction in time
     with this information.                                 spent or sourcing a supplier. The information
     No vendor- commodity information (contract data        could be structured by commodity code.


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     repository should include right supplier for right
     purchasing need. (Having this increases              The departments should be able to see the
     procurement efficiency and reduction in time         vendor information too.
     spent or sourcing a supplier. Improves the
     operation of the company’s supply chain as
     delay’s associated with identifying supplier are
     reduced)
k)   No formalized process of requesting emergency        Any order processed by Purchasing should be
     orders, RFI.                                         formalized; The system should behave
                                                          differently depending upon the request.

                                                          Facilities work order process?
l)   Campus communication and Training                    When any changes are made to DaFIS tables,
                                                          let the Education and Support Services know
                                                          about it. They can make a determination if
                                                          this should be advertised to the campus.
     - On the purpose and how to use quotes (Note:
       this needs further analysis whether having         Making the DaFIS messages informative.
       quotes expedites the process at Purchasing)        When items are restricted on the document
     -                                                    the message should be clear.

                                                          Consistency in relaying messages from buyers
                                                          and AP processors.

                                                          Training should address:
                                                          - Policy compliance and knowledge
                                                             (document initiators as well as requesters)
                                                          - Sending information early e.g. software
                                                             licenses that need Purchasing department’s
                                                             signature should be sent early to avoid
                                                             delays.
                                                          - Meaning of sole source
                                                          - Training offered should be different for new
                                                             and experienced users. Having a what’s
                                                             new training.
                                                          - Commodity based training (advanced online
                                                             training?)
m)   Better flow of information between Purchasing        Systematically there is a lack of integration
     and AP                                               between the two modules. Information needs
                                                          to flow both ways
                                                          There needs to be consistency in policy and
                                                          procedures between the two divisions e.g.
                                                          reimbursements, uniformity between PO-VI
                                                          processing.
                                                          Discuss changes in one division that might
                                                          affect the other.
n)   Compliance with grants terms and conditions          Each fund/account should have the terms
     Each grant has terms and restrictions as             systematically associated with it and be
     mandated by the funding agency but this              automatically added to the bid or contract.
     information is not always incorporated in bid or     The COA and sub fund groups can be used
     contract document.                                   for this purpose.
                                                          This will ensure that we are compliant and will
                                                          reduce any manual redundancy of adding the


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                                                          terms each time.
p)   If PO/DPO is a contract – why is it being modified
     later in the process?
     Receiving module?
q)   To request blanket renewals, departments enter a     See change order process.
     new PR. Purchasing cancels the PR and enters a
     change order to process the renewal.
r)   Providing the buyer’s information regarding the      The buyers should have a report of all open
     different PR’s requested so that bulk purchasing     PR’s for a commodity. This will enable them to
     can be done (if possible).                           bulk purchase if possible.
s)   The criteria for sole source can be confusing to     The determination whether an order is sole
     the user and many times whether the order is sole    source should be before Buyer assignment.
     source or bid is determined after the buyer starts
     working on the order.                                An online sole source form integrated with
                                                          DaFIS is being developed. The users will be
                                                          able to identify sole source early and complete
                                                          the sole source justification form.
t)   Managers are involved in many day-to-day tasks       With the above process improvements the
     like buyer assignment, email requests for            Managers should have the time to negotiate
     emergency, change orders.                            better prices with vendors, work with
                                                          departments to use agreements.
u)   Confirming orders add additional workload at         Possibly raise the threshold for confirming
     Purchasing and sometimes the end user’s              orders processed on DC’s to $2,500 from
     emergency purchase order results in confirming       $500.
     purchase order.

     The Purchasing Department processed 421
     confirming purchase orders from Jan ’03 to Feb.
     ‘04. 151 of these Purchase orders exceeded
     $2,500.
v)   Need for written internal procedures
w)   Buyers are spending significant amount of time       Buyers should get calls/emails related to a
     answering help desk/PR status related questions      order versus general calls. This way they will
                                                          have more time to focus on the PR’s.
     - Status of PR (highest time spent)
     - How to do invoice (second highest time spent)      -       Order Status tracking system
     - How to do DPO/DaFIS forms                          -       Calls should be directed to help desk
     -       How to do sole source                        -       Need for ‘How to’ training
     -       How to do agreements
     -       Questions on travel
     -       Questions on Small Business Program
     -       How to get property tag number
     -       How to process confirming order
     -       Questions on commodity code
     -       Questions on drug orders
     -       Questions on household moves
     -       Questions on Change Order
     -       Questions on employment reimbursement
     -       Tax related questions
x)   Buyers require continued/more training such as:
     Professional buyer training                          - Can the senior buyers provide some of the
     Negotiating skills                                   training?
     Finance (e.g., interest, lease purchase)


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       Accounting (e.g., fund accounting, accounting
       principles)
y)     There is need for support staff to complete tasks     Can Business Contracts and Purchasing
       such as the change order.                             share a support resource?
                                                             If there are other process improvements, can
                                                             the control desk perform some of these tasks?
z)     Improve Buyer morale
       - Buyers only hear when Campus is not happy
       - Policy enforcement is not consistent
       - Need top management support/backing (this is
         also related to policy enforcement)
       - Measure Buyer as whole not just days in
         processing a PR. Buyer should have the ability
         to see the Buyer turnaround report
a.1)   Other DaFIS system gaps
       - Split funding: should be able to enter amounts
           instead of percentage for better accuracy and
           ease.
       - Liens are not reflected correctly in DaFIS this
           results in lack of data integrity and
           workarounds for campus and Accounting.
       - . Liens are not correctly reversed on non-
           taxable items (External Focus Group).
       - Too many Commodity codes and Object
           codes making it difficult to select the correct
           code and it use.
       - Better integration
           . The AP Credit Memo document does not
           update Purchasing with returned items.
           . Better integration with CAMS for equipment
           purchases (Focus group feedback and TP2
           analysis)
       - Date needed field on the PR document
           should be more meaningful
       - Email notifications to the approvers during
           Special Conditions Routing (External Focus
           Group).
       - Discount terms table is broken (Internal Focus
           Group)
       - Ability to change the object code without
           having to do it later
       - Link the default and item account information
           when the document is templated.
a.2    DaFIS System Gaps: TP2 identified the receiving
       module – is this needed?




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6.2 Exhibit A: DaFIS Purchase Requisition




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6.2 Exhibit B: Cover Sheet
                                                               EXHIBIT A
                                                               Section 350-
                                                          25
                                                               Date: 3/14/02
                                                               Page: 1 of 1
                              COVER SHEET
                                   for
              PURCHASE REQUISITION ATTACHMENTS

TO: Purchasing Department
      Fax: (530)757-8624
      Attention:                         PLEASE CHECK ALL THAT APPLY:

FROM:                                        Blueprints

                                             Coupon(s)
Department Name:
                                             Proposed Rental Agreement

Department Contact:                          Samples

                                             Sketches
Telephone number:
                                             Software License Agreement

Fax number:                                  Sole Source Justification

                                             Supplemental Specifications
E-mail Address:
                                             Vendor Estimate(s)

                                             Others (describe below)
ORGANIZATION CODE:


DOCUMENT NUMBER:

Instruction to Buyer:




                  PAGE 1 OF    PAGES IN THIS TRANSMITTAL




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6.2 Exhibit C: Purchase Requisitions Listing




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6.2 Exhibit D: Purchase Requisition




6.2 Exhibit E: Federal Fund Information




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6.2 Exhibit F: Buyer Workload Report




   ABC




   XYZ




6.2 Exhibit G: Aged Requisition Report




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6.2 Exhibit H: Sole Source Justification and Disclosure Statement

                                            Sole Source Justification
                                            & Disclosure Statement
                                    Reference: UC Davis Policy & Procedure Manual
                            Section 350-25, Procurement Through The Purchasing Department

   This form must accompany the Purchase Requisition whenever a sole source purchase is requested. State law subjects the University
   of California to competitive bidding rules. Purchase Requisitions for goods and services that are to be purchased from a specific
   vendor or limited to a specific brand, where substitutes to the suggested vendor or brand are unacceptable, must be accompanied by a
   written justification explaining the circumstances that make alternatives unacceptable. The justification must be signed by the
   principal investigator, department chair, or director. The individual signing the justification must disclose in writing whether or not
   he/she has a potential or actual conflict of interest. University employees are not to make or participate in any purchasing decision
   that places them in a conflict of interest between their official university duties and any other interest or obligation. University
   employees who have a business relationship or financial interest (including that of a near relative) in the suggested vendor, who are
   conducting research for the suggested vendor, or who have received or anticipate receiving gifts, honorarium, or research grants
   from the suggested vendor must disclose the conflict of interest. Anyone who has a conflict of interest can not participate in the
   decision to sole source the purchase.

   The Director of Materiel Management or his/her designee will determine whether the justification is appropriate. Sole source
   justifications are to be supported by factual statements that will pass an internal or Federal audit. It is the salient features of a
   product that make it a sole source.

   Instructions
   1. Please check all applicable categories (1a. through 1e) below and provide additional information where
       indicated.
            __ a. The requested product is an integral repair part or accessory compatible with existing
                equipment.
                              Existing                                                               Equipment:
                                  ____________________________________________________
                              Manufacturer/Model                                                        Number:
                                  ____________________________________________
                              Age:         _________________                               Current        Value:
                                  _________________________________
            __ b. The requested product has unique design design/performance specifications or quality
                requirements which are
                   essential to my research or teaching needs and are not available in comparable products.
            __ c.          The requested product is essential in maintaining research continuity or to remain in
                compliance with
                      established University standards. (Check applicable category below.)
                              __ Requested product is being used in continuing research experiments;
                              __ Other investigators have used this product in similar research and, for
                                  compatibility 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.
            __ d. The requested product is one with which I (or my staff) have specialized training and/or
                extensive expertise.
                      Retraining would incur substantial cost in time and/or money.
            __ e. Other factors (provide detailed explanation in #2 below)

   2.   Provide a detailed explanation for categories checked in 1a. through 1e. above. Attach additional
        sheets if necessary.
   ________________________________________________________________________
      _____________________________________________________________________
      _____________________________________________________________________
      _____________________________________________________________________
      _____________________________________________________________________
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                                                     Disclosure Statement
                                              for Proposed Sole Source Purchase
Each individual involved in making the recommendation to sole source a purchase must complete, sign, and submit a Disclosure Statement with the applicable Purchase
Requisition. Please copy this Disclosure Statement as necessary for each individual to complete. Attach additional sheets if needed.

6. Does the company you are recommending to sole source sponsor research that you or any other member of your staff are currently
   involved in or were involved in during the past 12 months? Please explain below.
____________________________________________________________________________________________
   _________________________________________________________________________________________
   _________________________________________________________________________________________
   _________________________________________________________________________________________
   ______________________________________________________________________________________

7. Are you or any member of your department staff currently pursuing research with this suggested company, or do you anticipate that
   this company will sponsor research that your department will be involved in during the next 12 months? If so, please name the
   project and indicate the amount of research or other grant below.
____________________________________________________________________________________________
   ______________________________________________________________________________________

8. Please indicate if you have received any honoraria (over $250) from this company during the past 12 months.
____________________________________________________________________________________________
   ______________________________________________________________________________________

9. Please list any other income or gifts you received from this company during the past 12 months.
____________________________________________________________________________________________
   ______________________________________________________________________________________

10. Please list any financial interests (stocks, shares, investments, etc.) you may have in this company.
____________________________________________________________________________________________
   ______________________________________________________________________________________

11. Is there any type of professional or other business relationship between you and this company?
____________________________________________________________________________________________
   ______________________________________________________________________________________
12. To the best of your knowledge, does any member of your departmental staff have a business relationship with this company?
____________________________________________________________________________________________
   ______________________________________________________________________________________

13. Do you or any of your near relatives have any financial interest in this company?
____________________________________________________________________________________________
   ______________________________________________________________________________________

14. Please provide any additional information you believe should be disclosed at this time.
____________________________________________________________________________________________
   ______________________________________________________________________________________

15. I certify that the above information is true:


     ____________________________________                        ____________________________________                        _______________________
                           Signature                                             Printed Name and Title                                       Date




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6.2 Exhibit I: RFQ Access Program




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6.2 Exhibit J: Quick Quote




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6.2 Exhibit K: Department Response to Quote




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6.2 Exhibit L: DaFIS Purchase Order




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6.3 Purchasing Agreements

     PURCHASING                            BUSINESS CONTRACTS
     BUS 43, BUS 77                        Bus 34, P& P 330-05
     P & P 350 (10-95)                     Use of non-university facilities for other
     Purchase of supplies, services,       than storage space, exhibition booths,
     equipment.                            and catering
     Rental or lease of equipment,         Consultants
     storage space, exhibition booths,     Performers and non-academic speakers
     catering.                             Affiliation agreements for training or other
     Software licenses                     services.
     Temporary worker agreements with
     qualified staffing agencies.          Lease or rental of real property (ORMP)
     Independent contractors               Use of proprietary or copyrighted
     (individuals)                         materials (OVCR)
                                           Acquisition of health care services
                                           (UCDHS)

UC System-wide planned purchasing agreements
These agreements combine the purchasing power of all UC campuses and laboratories to obtain
advantageous pricing, terms and conditions. Each campus takes responsibility for certain commodity
areas and has an assigned commodity specialist responsible for surveying requirements, bidding and
negotiating final contracts. There are currently 164 system-wide agreements and UC Davis uses 38 of
these agreements. Examples include Fischer and FedEx. These agreements are entered directly in the
agreement table in DaFIS. Departments use the DPO to release orders against these agreements.
Competitive agreements (no inventorial equipment) generally don’t carry a dollar limit and the use of
these agreements is required unless Purchasing grants exception. Price schedules agreements may be
used within a limit of $5,000 per order. Orders over the $5,000 limit have to be processed on a Purchase
Requisition. Maintenance agreements may have a higher limit at the approval by Purchasing.

Workflow

                                                    Competitive agreements generally don't carry
                     Issue a             Place      a dollar limit and the use of these agreements
                       DPO               Order      is required unless Purchasing grants
                                                    exception.
Department
                                                    Price schedules agreements may be used by
                       Setup                        the depts. within a limit of $5,000 per order.
                    Agreement                       Orders >$5,000 are processed on PR.
                     in DaFIS                       Maintenance agreements may have a higher
                                                    limit at the approval by Purchasing.
Purchasing


Campus Local Area Agreements (M3)
Local area service and supply agreements use the combined purchasing power of UCD campus to obtain
advantageous pricing terms and conditions from local vendors. There are currently 48 local area
agreements; examples include bottled water, reagents, and hotels. Purchasing enters a PR in the DaFIS
system to setup the agreement. Departments use the DPO to release orders against these agreements.
Competitive agreements (no inventorial equipment) generally don’t carry a DPO dollar limit and are for
supplies and services not covered on a competitive Planned Purchasing Agreement. Price schedules




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agreements may be used within a limit of $5000 per order. Agreements for lodging, conference room
rental, and/or catering have no limit.

Workflow

                                                         Competitive agreements (no inventorial equipment)
                              Issue a        Place       generally don't carry a DPO dollar limit and are for
                                DPO          Order       supplies and services not covered on a competitive
Department                                               Planned Purchasing Agreement.

                                                         Price schedules agreements may be used within a
             Enter a         Generate an                 limit of $5000 per order. Agreements for lodging,
               PR            Agreement #                 conference room rental, and/or catering have no limit.
Purchasing


Departmental Blanket Agreements
Contracting Services establishes annual blanket agreements of $5000 or more for departments for
supplies and services that are unique to individual departments on an as required or frequent basis. The
agreements has to be for at least 12 orders per year for at least $5,000 and are issued when there is no
mandatory local area agreements or system-wide agreements. Blanket Agreements cannot be issued for
inventorial equipment.    Departments request the blanket on a Purchase Requisition document and
process a DaFIS DPO to order items on the blanket agreement and encumbrances are established at this
point. Exception to blanket agreement limitation include request to hold pricing for an extended period
and to negotiate and set crucial terms and condition for purchase. Competitive or sole source
agreements will have both the agreement and DPO limit the same. Negotiated agreements have a
maximum limit of $50,000 for both the agreement and DPO order limit.
Purchasing monitors the use of these agreements occasionally like the IT outsourcing agreements.
Departments request a blanket agreement against the main agreement. A PR is entered and the
department has to adhere to the restrictions and terms of the agreement.

Workflow

      Blanket agreements are unique to individual dept and are setup
      for supplies and services on an as required or frequent basis.


                 Initiate                                   Place
                                           Process
                   PR                                     order with
                                            DPO
                                                            vendor
Department




                Process                      Setup
                  PR                       Agreement
                                              (PO

Purchasing


Independent Contractor
Contracting Services also sets up agreements for Independent Contractor’s. Per policy, the University
has the right to control the result of the Independent Contractor service but not the manner of service. To



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process this service the departments have to complete the Independent Contractor pre-hire worksheet
and get the approval from the Human Resource recruiter. HR’s initial review is required to determine,
among other things, whether an employer-employee relationship exists and the employee hire process
needs to be followed, or the services should be contracted through the Purchasing Department as an
independent contractor to comply with IRS rules. Departments then need to initiate a PR and send a
copy of HR’s pre-approved Pre-hire Worksheet (same as any other PR attachment) to the Purchasing
Department citing the PR number on the fax cover sheet.

Workflow

                  Submit                                   Initiate
                  Pre-hire                                   PR
                 Worksheet
                                      Send as attachment




Department


                       Approve
                       Request



Human Resource



                 Consultation        Process                          Process
                                       PR                               PO

Purchasing


Miscellaneous Agreements/Credit Application
These types of agreements are not captured in DaFIS and are processed separately by the buyer. These
agreements are maintained in the individual buyer’s spreadsheet. There are about 500 agreements and
examples include exhibitions, hotel, rooms, conference, travel, catering, software licenses and credit
applications. Other agreements are signed when required by the vendor like Sprint wireless. The
departments make the payments as utility bills on a Direct Charge document.




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Workflow
      Agreements for exhibitions, hotel, rooms, conference,
      travel, catering, software licenses and credit applications

                 Send
                Request

Department


                 Setup                             Document
               Agreement                        Agreement Info
                                                in spreadsheet
Purchasing


Consultant and Professional Services
This type of service is processed mainly at Business Contracts. Per policy, the University does not
control either the service or the manner of performance. But when the service needs to be bid, the
request is sent to Purchasing. After Purchasing completes the bid analysis, the bid documents are sent
to Business Contracts. Business Contracts completes the contract based of the bid.

Workflow

                     Request
                    Consultant/
                   Prof. Services
Department




                            Receive             Bid?    No                  Write up
                            Request                                         Contract
                                                  Yes




Business Contracts


                      Receive                   Yes            Bid
                                         Bid?
                      Request                                Analysis
                                           No




Purchasing




Process Improvement
    Improvement Areas                                            Recommended Best Practices
a) There is no formalized method of requesting                   The request should be captured like any other
    agreements and this information is not captured              requisition and the buyer should be able to
    systematically. Each buyer keeps their list of               generate an agreement.
    agreements.
b) Departments should have the ability to use all                The departments should be able to purchase
    agreements on a DPO and not have to go through               furniture directly. The use of mandatory



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     Central Purchasing.                                  agreements can be evaluated through post
     The furniture agreement with campus is a             audit reports.
     mandatory agreement and the departments have         Better training, use of brochures.
     to place this order through the Purchasing
     department.                                          In the e-procurement model the users will be
                                                          able to purchase directly from the vendor
                                                          catalog.
c)   Communication with campus regarding the buying       The continued feasibility of Agreements should
     power using agreements.                              be evaluated yearly. The results should be
                                                          communicated with campus for better buy in.

                                                          Purchasing has hired a Marketing Analyst to
                                                          act as a liaison with the Campus and to
                                                          improve training.
d)   Agreements like Fischer cause additional workload    With the e-procurement initiative underway this
     for campus. They have to generate a DPO              feed will be replaced.
     number. About 40% of the feed invoices are
     rejected and campus has to process these on a
     DaFIS VI.
e)   Departments are often confused which service         With the 2 units merging there is an opportunity
     requests should come to Purchasing versus            to make the agreement request process
     Business Contracts.                                  transparent.




                              Request         There should be one
                              Process         request process but
                                              with different outputs.



Department




                      Sole        Emergency                   Change      Business
          Bid                                 Agreement
                     Source         Order                      Order/     Contracts
                                                              Renewal



Purchasing




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6.4 Purchasing Card

Overview
The Purchasing Card program is a Procurement Card System to purchase low value items, which are
also transacted using a DPO using a corporate MasterCard. This program was administered to enable
prompt payment to vendors, eliminate purchase orders and invoices, and combining order, recording and
payment for goods at the point of sale. The Purchasing Card is a MasterCard with built-in controls for
restricted purchases and the bank pays the vendors within 48-72 hours. This reduces any out of pocket
or petty cash reimbursements. Most orders that can be purchased on a DPO can also be purchased
through Purchasing Card. The Card has dollar and transaction limits of $2500 per vendor per day, $5000
per day limit, 100 transactions per day and 1000 transaction per month with $50,000 limit.
The cardholder is a university employee and needs to have pre-approval from the Department
Head/Designee before requesting the card. The card requester needs to complete the Purchasing Card
training before requesting for the card. The requester must complete the online Purchasing Card
application and submit it. The Account Manager has to then go online and approve the request and
specify the account to be charged. The Cardholder and the Account Manager application forms are
routed to the Campus Administrator and an email notification is sent to the Account Manager. The
Account Manager has to respond to the email certifying that it is an approved application, proper training
has been provided and there is justification for use. The signed Cardholder Agreement form must be
            o
submitted t the Campus Purchasing Department in order to initiate the bankcard application process,
and a copy of the documents is maintained at the department. The form is reviewed by the Campus
Purchasing Card Administrator and submitted to the Bank; a second email notification is sent to the
account manager. The Bank processes the request with 7-10 days and sends the Cards to the
Administrator. The Administrator informs the Account Manager and the Card has to be signed (on the
Chain of Custody form) for release before issuing it to the Cardholder. After the Cardholder has signed
for the card, the account manager must return a copy to Purchasing. The Cardholder needs to activate
the Card (like any other card) before using it. Purchasing cards are automatically reissued to all active
Cardholders prior to the card expiration date.
The Department must immediately notify the campus Purchasing Card Administrator when the
Cardholder transfers or leaves UCD service. The online form has been developed using Cold Fusion and
the data is stored in an Oracle DB. Validations (like Account Manager) are done against DS. Once the
Card Administrator receives the card, it is swiped and this triggers the transfer of data from the
Application table to the DaFIS Credit Card table.

Workflow




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                                                             Cardholder
                      Acct
                      Mgr                                 Get pre-approval
                                                          from Dept. Head/


                                    Online Approval
   Maintain list of                                           Designee
  Cardholders and
       review
                                                             Complete
                                                                                              Pickup
                                                               PCard
                                                                                               Card
                                                              Training

                                                         Complete PCard         Dept
                                                           Appln and            Head/




                                                                                               Sign/Pickup
                                                           cardholder          Designee




                                                                                                             Notify
                                                           agreement           approval
Department
                                                                Email




                               E-mail                 Receive request for        File          Receive
                             notification              PCard; Review &       Documentation      Card
                                                            Submit
Purchasing


                                                        Process request
                                                        within 7-10 days
Bank


The Cardholder can place the order with the Vendor by fax, phone, mail or in person. Once the good is
received, the cardholder forwards the packing slip, receipt or invoice to the Department Designee. In the
case of errors or disputes the Cardholder contacts the vendor and the bank. All actions are followed up
with written documentation. All transactions occur at the point of sale and the bank pays the Vendor and
transmits transaction data to DaFIS. Purchases are posted to the default G/L account and the Account
Manager receives the DaFIS Feed Payment Distribution (FPD) document.                        The Account
Manager/Designee can choose to accept the transaction or choose to transfer an expense from the
default FAU cited on a Purchasing or CTS card to another FAU or to transfer from the default object code
for the transaction to a more specific object code for the expense. The Department is the Office of
Record for all receipts and documentation.

The Cardholder should ensure that any credit transactions due to erroneous charges, returns or
adjustments are processed and appear on subsequent statements. The Account Manager should verify
the accuracy and the appropriateness of the expenditure. Accounts Managers should monitor double
taxation, this occurs when Use tax accruals made by A&FS for out-of-state vendors duplicate state sales
tax collected by the vendor at the time of purchase. The Account Manager can use the DaFIS
Purchasing Card and CTS Modifications document to change information associated with the card after
the card has been issued.
Departments can use Transaction Listing query (2) to reconcile ledger and track transaction activity,
Credit Card Payment Lookup (252) to track Purchasing transactions and Credit Card Payment Detail



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(250) to view specific transaction details. The Campus Purchasing Card Administrator has several
internal reports available for reviewing purposes.

Workflow

               Cardholder           Receive Good;          Acct Mgr receives
                                                                                        File
                places                Forward              FPD document; if
                                                                                      receipts
                 order                Receipts            needed change acct
                                                                  info
                          Deliver
                  Place




Department


                Vendors
                delivers
                 good
Vendor


                Make
               Payment
Bank


                                                           Purchase are                  DS
                                      Feed
                                                          posted to default            reports
                                                              account                 available
DaFIS


                                                                Audit
                                                            transactions
Purchasing


Controls and Reviews
a) Departments can control the Cardholder’s expenditure limits by changing the limits on the application.
b) Merchant Category Codes (MCC) is a four-digit categories used to restrict Cardholder purchasing by
   product commodity types. The Purchasing Card has been prearranged to use specific MCCs only
   and not accept restricted purchases such as travel and entertainment.
c) It is the department’s responsibility to ensure that separation of duties is maintained (Authorizing
   purchase, placing order, certifying receipt and ledger review).
d) The Campus Purchasing card Administrator monitors all Card requests and has several
   reports/queries available. The account manager/designee cannot have a Purchasing Card.
e) The Purchasing Card desk reviewer is charged with reviewing the transactions for correctness and
   compliance.

Process Improvement
    Improvement Areas                           Recommended Best Practices
a) The Account Managers find the                The Account Managers could issue multiple cards for
    account reconciliation process              each user and assign a fixed account to each Purchasing
    cumbersome.                                 card.
                                                Other??
b)   Purchasing Card online training has        Providing an alternate method of training for users that
     been developed but not used.               cannot attend a class. Having online training will eliminate
                                                (or reduce) the need for internal department training.


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c)   Reduce invoice processing.              More campus end user buy in for Purchasing cards so that
                                             the number of PO handling and invoices are reduced.
d)   Some Departments do not use the         Continuing to work with departments with Purchasing
     card effectively.                       Card best practices. E.g. Single invoice payment to a
                                             vendor instead of multiple payments to the same vendor in
                                             the same day.
e)   Double taxation for out-of state
     vendors.
     Communication from AP when the tax
     is reversed (External Focus Group)

6.4 Exhibit A: Purchasing Card Application




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6.4 Exhibit B: Cardholder Agreement Form




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6.4 Exhibit C: Purchasing Card Application – Account Manager




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6.4 Exhibit D: Commercial Card Cardholder Account Form




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6.4 Exhibit E: DaFIS Feed Payment Distribution (FPD) Document




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6.5 Department Purchase Delegations
6.5.1 Departmental Purchase Order (DPO)
Overview
Department delegated purchase transactions are completed on the DaFIS Departmental Purchase Order
(DPO) document to formalize transactions with a vendor (Exhibit A). There are three types of
Departmental Purchase Orders:
    a) Open Vendor (OV) - Used by individual organizations for the purchase of supplies when the order
        total amount is less than, or equal to, that organization's delegation amount.
    b) Published Materials (U3) - Used for the purchase of published materials, periodicals, films, etc.
        There is no established dollar limit on U3 purchases made on a DPO.
    c) Established Agreements (D3 or M3) - The Departmental Purchase Order is also used to place
        orders against approved purchasing agreements by citing the appropriate agreement number.

Controls and Reviews
   a) The document has routing capability such as review hierarchy and account manager.

Process Improvement
    Improvement Areas                                      Recommended Best Practices
a) The transactions are not reviewed for correctness       Post audit reports to ensure compliance.
    and policy compliance.                                 Purchasing Department has hired reviewer
                                                           for this purpose.
b)   Departments modify the VI even though the             If the DPO is truly a contract then the VI
     department and vendor signed a contract.              should not be modified (except for adding a
                                                           line item for freight, account information).
c)   DaFIS system gaps
     - Liens should be reflected correctly.
     - System bug causes unused DPO to count
        against total dollar amount.
     - Requires quantity for any commodity e.g. wages


6.5.1 Exhibit A: DaFIS Departmental Purchase Order (DPO)




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6.5.2 Departmental Repair Order (DRO)

Overview
Departmental delegated repair orders are completed on the DaFIS Departmental Repair Order (DRO)
document (Exhibit A). The DRO is used to place a repair order with an outside vendor to maintain/service
UC Davis equipment.

Process Improvement
    Improvement Areas                                    Recommended Best Practices
a) Cannot process maintenance agreements on the          Departments should be able to complete a
    DRO.                                                 DRO using maintenance agreements.
b) The repair order process is completely different      Open: Need to look at this during analysis of
    from the purchase process.                           departmental ordering process including
                                                         insurance.
c)   DaFIS system gaps
     - Insurance requirements should depend on repair
     site e.g. for off-site repairs the system should
     check only general liability.


6.5.2 Exhibit A: DaFIS Departmental Repair Order (DRO)




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6.6 Purchase Order Modification
6.6.1 Change Order Process

Overview
Departments can send requests to modify the Purchase orders via emails (both specific and blanket) to
Purchasing and only Purchasing Department can make changes using the DaFIS Change Order
document (Exhibit A). The document can be used to cancel, close or re-open PO’s and allows
modification to information that has already been sent to the vendor. All the data from the current PO is
brought forward to the change order but only some of the fields are editable like header information
(except Agreement Number and Order Type), organization information (except Chart and Org), item
information, accounting distribution information, agreement information, equipment certification
information and terms and conditions. Upon submission external encumbrances and reversals are
generated.
The CO document is used for multiple reasons like:
     1) To change the original contract: quantity, item description/scope of work, agreement period, price,
         add-on, cancellation, terms & conditions and lease rental buy outs
     2) Workaround when a VI is marked ‘paid in full’ any other VI for the same PO cannot be processed.
         The buyer has to first create a change order to reopen the document and a second change order
         to change the information.
     3) When all vendor invoices are paid but the VI was not marked as closed, the buyer has to close
         the PO using the CO document.
     4) Changing the commodity code for equipment reporting.
     5) When Equipment Management requests combining/separating line items into one due to
         inventorial tracking.
     6) To make adjustments due to vendor credits (credit memo).
     7) Renewals are processed on a Change order and the buyer cancels the PR.
     8) Cancellation: Bookstore has interdepartmental recharge and requests are processed on PR with
         a PO being issued. After the bookstore feed payment is done, the PO is cancelled.
     9) The PO’s for certain commodities like feed, animals, printing, conferences, household moves are
         estimates and later require change orders.
     10) Fixing the amount when the percentage payment on the quantity is not done incorrectly.

After the CO is processed in DaFIS, if the change order needs to be sent to the Vendor the buyer
manually re-enters the information in the Change Order Access Database. The change order form is
then sent out to the vendors (Exhibit B). The look and feel of this change order form is different from the
Purchase Order to help the vendor differentiate between the two.
The CO document is also used for other purposes like adjusting line items, fixing the dollar amounts due
to credits etc.




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Workflow

                               Req     Blanket
                   Specific   Type?


                Email                     Enter      Cancel PR
               Request                   new PR
Department


                                                                                   The CO
                                                                                   document is
                 Buyer                                                 Buyer       also used for
                                 DaFIS                               (Blanket)     other purposes
                                                                                   like adjusting
                                   Enter DaFIS                                     line items, fixing
                                  Change Order                                     the dollar
                                                                                   amounts due to
                                                                                   credits etc.
                                                      Fax/ Mail CO




                                        CO
                                      Access
Purchasing                              DB


                                                 Receive
                                                   CO
Vendor



Departments can complete changes to the DPO on the Department Purchase Change order document.
See high-level workflow.

Process Improvement
    Improvement Areas                                                  Recommended Best Practices
a) Buyer has to manually enter the information in the                  DaFIS should have the capability of printing the
    Change Order database for printing.                                Change Order form. Either the buyer should
                                                                       be able to designate the information that needs
     The number of Change Orders processed in                          to be printed or the system should able to
     DaFIS and Access database are:                                    identify the modified data.
      FY        Access      DaFIS
      00-01     288         4182
      01-02     195         4241
      02-03     223         4612
      03-04     120         2515
     The number of Change Orders entered in the
     Access database is a measure of redundant
     manual workload the buyers have.
b)   Price adjustments or credits on Purchase Orders                   There should be backward integration with the



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     are handled on the Credit Memo but this           Credit Memo.
     information is not updated backwards to
     Purchasing. The liens are also not adjusted and
     the balance shown is not accurate.
c)   No consistent and formalized method for change    When Agreements are extended or renewed,
     order request.                                    the department initiates the Purchase
                                                       Requisition and buyers enter a Change Order
                                                       and Cancels the PR. There is lack of
                                                       consistency with processing the Specific and
                                                       Blanket Change Orders. There is a need for a
                                                       process to capture the requests for changes
                                                       and this request should be assigned to the
                                                       original buyer. A DaFIS solution might be to
                                                       open the document for department initiation
                                                       and then Purchasing approval.
d)   Any inefficiency in the PR-PO or DPO process      See PR-PO process improvement.
     result in workarounds on this document.
e)   DaFIS system gaps (should address the
     workarounds mentioned in the overview)
     - The CO document should check for RPL or VI
         in routing.
     - Changes should update the Purchasing Tables
     - Automatically close PO when lien equals zero.
     - After bookstore feed payment is done the PO
         should be cancelled automatically.



6.6.1 Exhibit A: DaFIS Change Order




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6.6.1 Exhibit B: Change Order Form




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6.6.2 Redistribute Purchasing Liens (RPL)

Overview
Departments can adjust accounting information for orders that were placed via a PO, DPO, DRO, or NPA
on the DaFIS Redistribute Purchasing Liens (RPL) document (Exhibit A). A RPL can also be used to
reopen a canceled or closed DPO or DRO through the RPL.

Workflow
See high-level workflow

Process Improvement
    Improvement Areas                                  Recommended Best Practices
a) DaFIS system gaps
    - Does not reflect liens correctly
    - The RPL document should check for CO or VI
       in routing.



6.6.2 Exhibit A: DaFIS Redistribute Purchasing Lien




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6.7 Small Business Program

Overview
The Small Business Program’s main function is to ensure equal opportunity practices for the purchase of
goods and services and to satisfy State, Federal and other publicly funded program requirements. This
program includes small disadvantaged, women- owned businesses and Disabled Veteran Business
Enterprises.
When a PI needs to include a small business due to grant requirements or other reasons, Purchasing is
approached to identify a supplier. This program has not been fully developed at this point.

Process Improvement
    Improvement Areas                                Recommended Best Practices
a) Alerting buyers to small business vendor          When a PR is associated with a Federal grant with
    requirements during the purchase process         small business vendor requirement (e.g. when a
    (DPO or PO).                                     grant is more than $500,000), the buyer should be
                                                     alerted.
b)   This program has the potential for further      Develops outreach activities that improve UCD's
     development.                                    access to qualified small businesses
c)   Departments should be able to find the Small    Add this information to the vendor table and the
     Business vendors.                               Departments should be able to search by this field.




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6.8 Insurance Review and Setup

Overview
For a particular contract or order if insurance is required, the certificate of liability insurance is obtained
before the contract is signed or the order placed (Exhibit A). The amount of insurance required varies
depending on the size of the company and the service type. Risk Management Services has published
guidelines that the Purchasing buyers use while obtaining insurance (Exhibit B). The Purchasing
Manager also can execute a query to see the vendors for whom the certification is expiring. Generally,
the PO requires insurance certification within ten days of expiration. Once the vendor sends the
insurance information, Purchasing files the insurance and updates the vendor file in DaFIS.

Workflow

                 Repair
                 order

                                               No
                                    DRO?
                              Yes

                  If expired,                       Process
                obtain Vendor                         PR
                  Insurance



                          Process
                           DRO
Department


                                   Vendor              If expired,         Process
                                 Insurance           obtain Vendor           PO
                                Maintenance            Insurance

Purchasing
                                      update




                                Vendor File
DaFIS


Process Improvement
    Improvement Areas                                         Recommended Best Practices
a) Maintaining current vendor insurance when the              The system should automatically alert the
    insurance expires.                                        buyer and manager when the insurance is
                                                              nearing expiration. The vendor should be
                                                              emailed or faxed from the system requesting
                                                              renewal.
b)   Many times the departments are waiting for the
     insurance from the vendor and cannot complete
     the orders. This can be time-consuming when the
     equipment is broken and needs to be fixed soon.


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c)   Most repair orders are processed on a DaFIS DRO
     and the department has to obtain the insurance for
     these orders.
     There is no guidance on the amount or type of
     insurance that needs to be obtained.




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6.8 Exhibit A: Liability Insurance




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6.8 Exhibit B: Insurance Requirements (as published on the Risk Management Services website
http://rms.ucdavis.edu/blanketexceptions.htm)

This matrix is a general guideline that rates events as high, moderate, and low risks.

High Risk                       Moderate Risk ($1 mil)          Low Risk (No Ins.)
GL-$5,000,000 aggregate         GL-$300,000 aggregate           WC

$500,000 occurrence             $300,000 occurrence             *Sheep shearing
                                                                *Farriers (for UC horses)
$5,000,000 products             $300,000 products               *Animal nail clipping
                                                                *Livestock appraisers
                                                                *Landscape maintenance
$1,000,000 personal injury      $300,000 personal injury
Additional Insured              Additional Insured

AL- $1,000,000 occurrence       AL-$300,000 occurrence WC
WC
                                *Non-medical/scientific
*Transportation (see BUS-63     equipment
for special limits)-aircraft,   maintenance/install
ground, watercraft, patient     *Non-hazardous medical/
transportation                  scientific equipment
*Food service/catering          *Moving services
*Hazardous materials            *Independent contractors
involved (special llimits for   (non-medical)
asbestos)                       *Farriers (non-UC horses)
*Independent contractors        *Security services (unarmed)
(medical services)              *Buildings & grounds (tree
*Construction projects (see     trimmers, pavement striping,
special BUS-63 requirements)    window cleaning, janitorial,
*Medical/scientific equipment   and similar)
maintenance installation        *Delivery services
(potential hazards)             *Application of non-hazardous
*portable seating & bleachers   chemicals




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