Docstoc

usf_purchasing_101_presentation

Document Sample
usf_purchasing_101_presentation Powered By Docstoc
					         WELCOME TO
       PURCHASING: 101




AN INTRODUCTION TO PURCHASING POLICY &
            BEST PRACTICES
                                     1
         TODAY’S AGENDA

Purchasing Mission
Elements of a Good Quote
Competitive Solicitations
Category Specific Purchase Information
My USF Tips
The Future of Purchasing
Additional Resources                     2
              OUR MISSION

The mission of Purchasing Services is to
Support the University of South Florida by…
  Providing service
  Reducing price
  Mitigating risk

                                              3
                WHO ARE WE?

Purchasing is the primary              Jeff Mack
                                 Assistant Vice President
                                   Campus Business
 contracting authority for the          Services

 University.
Purchasing is comprised of          Tom DiBella
                                       Director
                                 Purchasing & Property
 Purchasing & Property                 Services

 Services, reporting to the
                                        Bill Gill
 Assistant Vice President          Associate Director
                                 Purchasing & Property
                                       Services
 of Campus Business Services                                4
         METHODS OF PURCHASE
UNENCUMBERED




                                                         INCREASING PURCHASING
  This includes such things as utility, freight bills,




                                                              INVOLVEMENT
  subscriptions, memberships, postage, petty cash,
  and reimbursements

PCARD

  Non Asset Commodities up to $1,000 & Travel

REQUISITION /PURCHASE ORDER
                                                                                 5
       REQUISITION VS. PURCHASE ORDER
Requisition (REQ)                      Purchase Order (PO)
  Request
                                          Executed contract with
  Prior to services                       terms & conditions
  and/or goods being
  ordered                                 Dispatched to Vendor
  http://usfweb2.usf.edu/usfgc/gc_pp/      by Purchasing
  admsv/gc5-001.htm

  Funding source

                             BOTH CONTAIN:
   VENDOR INFORMATION, ITEM DESCRIPTION, QUANTITY, DELIVERY
  INSTRUCTIONS, BILLING INSTRUCTIONS, & DESIRED DELIVERY DATE       6
 STARTING THE PURCHASING PROCESS
            LET’S BEGIN!
DEFINE YOUR NEED. WHAT ARE YOU BUYING?

 Is there an existing contract?
   Check the Purchasing website:
   http://usfweb2.usf.edu/purchasing/

 Contact Purchasing: 974-2481
  or contact a Purchasing Agent by accessing
  listing of Purchasing Agents on the Purchasing
  website at:
                                                           7
  http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf
           SELECTING A VENDOR
      WATCH OUT FOR CONFLICT OF INTEREST!!!

Ensure you aren‟t selecting a company in which you have a
personal interest.

 Florida Statue 112.313(3) and University policy do not allow
  you to purchase from “a business entity in which you, your
  spouse or child have a material financial (more than 5% of
  stock or assets) or managerial interest (officer, director,
  partner, or proprietor)”
                                                                 8
       SELECTING A VENDOR (cont’d)

For additional information:

• Conflict of Interest in sponsored research:
  http://usfweb2.usf.edu/usfgc/gc_pp/genadm/gc309.htm
  (this is a policy)

• Conflict of Interest faculty:
  http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-107.htm
  (this is a regulation)

• Conflict of Interest in staff:
  http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-206.htm
  (this is a regulation)
                                                                     9
      SELECTING A VENDOR (cont’d)
                     USF SUPPLIER DIVERSITY PROGRAM

 To seek out, identify, and utilize Florida Certified Minority Businesses and the
  Small Business Administration (SBA) certified (8)A program participants, SBA
  Certified HUB Zone Firms, and SBA Certified Small Disadvantaged Businesses
  that provide services, commodities, and construction services which are purchased
  by the University of South Florida contact:

    Desiree Hanson, Supplier Diversity Manager
    (813) 974-3292
    email dhanson@admin.usf.edu
    Website: http://usfweb2.usf.edu/supplierdiversity

 Departments can also access the State of Florida Certified Minority Business
  Enterprise online Directory and the SBA Dynamic Small Business Search
  Directory via the Supplier Diversity Site at
  http://usfweb2.usf.edu/supplierdiversity/department_info.htm                   10
     ELEMENTS OF A GOOD QUOTE
When contacting Vendors:

 Identify yourself as the University of South Florida

 Record the date, contact information & the
  person‟s name who gave you the information

 Ensure you provide detailed information:
    item description
    item number
    quantity                                            11
ELEMENTS OF A GOOD QUOTE (cont’d)

…..AND……
 Warranty

 Expiration date of price quote

 Delivery Time

 Vendor payment terms
    Vendor File
    Discounts                      12
     VENDOR PAYMENT TERMS

**Contact Purchasing about changing payment
  terms on a Purchase Order*

 The university payment terms are NET 40


                                            13
       SHIPPING /FREIGHT COSTS

 TWO KEY QUESTIONS…

    Does the quote include freight?

    Who pays the freight costs?

PREPAID – Vendor pays the carrier and adds it to the invoice

COLLECT – USF pays the carrier directly
                                                          14
                 FREIGHT TERMS
MORE KEY QUESTIONS…

   Where does title transfer?
   Is it Covered by insurance?
    FOB
    Origin/Shipping Point
    Destination

                             Example:
            Quote says: Destination Prepaid and Allowed
  Which Means: Supplier pays freight & title passes at USF’s loading dock.   15
 VERBAL/WRITTEN PRICE QUOTES
        $5,000 - $25,000
              2-3 QUOTES REQUIRED
 Comments regarding verbal/written quotes must be placed in
  Header Comments in the requisition with the company name,
  individuals name that provided the quote, and the date price
  quote was given.

 Fax written quotes/back-up to Purchasing (Include requisition
  # on all quotes)
                                                             16
           WRITTEN PRICE QUOTES
              $25,000 - $50,000
             3 WRITTEN QUOTES REQUIRED

 Contains all the elements of a good quote…

    Comments regarding verbal/written quotes must be placed in Header
     Comments in the requisition with the company name, individuals name
     that provided the quote, and the date price quote was given.
    Fax written quotes/back-up to Purchasing (Include requisition # on all
     quotes)
    Minimum of 3 written quotes required
    Is it covered by a State, University, or other kind of contract?    17
 TOTAL PURCHASE ABOVE $50,000

University of South Florida Procedure
 6c4-4.02030 (1)

“The purchase of commodities or
 contractual services exceeding $50,000
 shall be awarded pursuant to a competitive
 solicitation..”                              18
     COMPETITIVE SOLICITATION

          INVITATION TO BID (ITB)
Used for commodities or Services that are well-
 defined
Can be used for annual contracts resulting in
 multiple orders
Creates a contract
Awarded on price
                                                   19
COMPETITIVE SOLICITATION (cont’d)

     REQUEST FOR PROPOSAL (RFP)

Used when the need is not specifically defined
RFP describes the desired result and the vendors
 propose one solution
Evaluation is based on specifically stated criteria
Price is not the sole consideration
                                                       20
COMPETITIVE SOLICITATION (cont’d)

     INVITATION TO NEGOTIATE (ITN)

Similar to an RFP
   Used when the need is not specifically defined
   Price is not the sole consideration
ITN describes the desired result and the Vendors
 may propose more than one solution
University has the ability to negotiate             21
“PIGGY-BACKING” … THE USE OF A
   COMPETITIVE BID CONTRACT
If a Vendor can provide pricing based on a
 competitively bid contract then it does not require
 public solicitation…

EXAMPLES
   State Contracts
   Other Schools
   Other Governmental entities
   Educational Cooperatives and Consortiums           22
                   DSR EXEMPTION
The Division of Sponsored Research (DSR) has
been granted authority to waive the bidding process
if “it is necessary for the efficient or expeditious
management of a research project.”




USF Policy 0-303   DSR WEBSITE: http://www.research.usf.edu   23
     “SOLE SOURCE” PURCHASE


A sole source means that the item/service is
 unique and that the vendor is the sole provider
 from whom the item/service can be obtained.

The Sole Source Form is available from the
 purchasing website:
   http://usfweb2.usf.edu/purchasing/forms.html
                                                   24
“SOLE SOURCE” PURCHASE (cont’d)
                       MUST INCLUDE
 Vendor Quote
 Reasonable price justification: i.e. historical pricing, cost
  analysis, or comparable price
 A thorough explanation written in layman‟s terms – what is
  unique and how it is relevant to the work being done

                         MUST BE
 Completed and signed by the Professor/PI
 Publicly posted and open to protest for seventy-two (72)
                                                                  25
  hours/three (3) business days
CATEGORY-SPECIFIC &
 OTHER PURCHASING
   INFORMATION

                      26
          CONTRACTUAL SERVICES
 DEFINITION: Non-USF employee providing a defined service for fees

 CONTRACT SPECIFICATIONS
    “Rates, Dates & Deliverables”
      Rate of Payment
      Dates of Service
      Thorough description of services being provided and expected
        outcome
      PO may serve as the contract, or “Contract for Services” template
        from Purchasing website
      Independent Contractor Form for 1099 Consulting & Professional
        Services Worksheet required

   NOTE: Quote & competitive solicitation dollars levels still apply!!!   27
  CONTRACTUAL SERVICES (cont’d)
         INDEPENDENT CONTRACTOR WORKSHEET

 Available from the Purchasing website

 Required when hiring an individual or sole proprietor
    Who is not a foreign national providing the service from their home
     country
    Each time a requisition is initiated
    Signed by Vendor and Department Chair

 Independent Contractor Form ensures that the University is not
  paying Vendors as independent contractors when the IRS would
  consider them to be employees                                            28
         EQUIPMENT MAINTENANCE
              AGREEMENTS
THINK:
 About the value, age, and condition of the equipment
 The frequency of use and critical nature of the equipment
 Maintenance Agreement cost vs. number of service calls

CONSIDER:
 ASSUMED RISK (SELF-INSURED):
    No contractual agreements
    Department pays as the item is fixed

 REGULAR MAINTENANCE AGREEMENTS:
    Departments pays for a maintenance agreement with manufacturer may
     include repairs and Preventative Maintenance visits (parts additional)   29
                        FURNITURE
 State of Florida contracts available from Purchasing website
    Excellent quality at highly discounted rates
 Special needs chairs need pre-approval by the Environmental
  Health & Safety Department
 Written justification is required for furniture purchase above
  these guidelines:
    Office Chair - $600
    Sofa - $1,400
    Love Seat - $1,200
    Club Chair - $800.
    End Table - $400
    Coffee or 48” Conference Table - $600                    30
                                FOOD
Can only be purchased when there is a clear business
purpose & funding source allows it…
 STATE & APPROPRIATED FUNDS
    The food is used directly in research
 CONTRACTS & GRANTS
    The food is specifically provided for in the terms of a contract, grant, or
     donation
 COLLECTED FEES
    Fees have been collected for the express purpose of paying for such
     items and the advertising documents indicates there will be food
     provided as part of the negotiations cost
 STUDENT GOVERNMENT
    When approved by the Student Government Finance Office
 ALCOHOLIC DRINKS                                                            31
    Non-Fee collected events – Foundation funds only
                LEASE OF SPACE

 Review Regulations for Lease of Space @
  http://usfweb2.usf.edu/usfgc/gc_pp/admsv/gc5-004.htm

 Standard Lease Agreement for Office/Warehouse space can
  be found on the Purchasing website @
  http://usfweb2.usf.edu/purchasing/forms.html

 Purchasing is the contracting authority for Lease of Space

                                                               32
                                  MOVING
 Must fill out an “Approval to Pay Moving Expenses” Form & have Dean, Director, or VP
  (for > $15,000) signature

 Enter a requisition with complete address & contact information. Requisition will not be
  processed until Purchasing receives the contract information with Request for Authority
  to Pay Moving Expenses Form

 Guidelines for both commercial and self moves can be found at
  http://usfweb2.usf.edu/purchasing/rules-redtape/rules2.htm

 All forms located on the Purchasing website at
  http://usfweb2.usf.edu/purchasing/forms.html

 Contact Bill Gill @ 974-3340 or via email: bgill@admin.usf.edu

 Physical Plant handles office and lab moves. Contact Greg Gard @ 974-4983 or
  via email: ggard@admin.usf.edu                                               33
                           VEHICLES
 USF DIRECTIVE – ALTERNATIVE FUEL VEHICLES ONLY

 Purchasing has a listing of alternative fuel vehicles by vehicle type
  and class

 Equivalent “gas only” vehicles may also be considered under the
  following circumstances:
    DSR grants an exemption
    No alternative fuel vehicle exists within the vehicle type and class
     needed

   NOTE: The purchase of used vehicles will also adhere to this directive   34
                        MY USF TIPS
 Make sure the Description contains everything the Vendor needs to
  know

 Write the Requisition number on all quotes & back-up materials

 When entering requisition, don‟t forget to check the “send to vendor”
  box in header comments so that important comments to vendors will
  print on your purchase order.

 Remember: Some categories route requisitions to different
  purchasing agents that would be assigned to your department or the
  commodity or service that you are purchasing. Do not insert the
  buyer‟s name when entering requisitions. If you copy a requisition,
  you should also remember to delete the buyer‟s name.                35
                 MY USF TIPS (cont’d)
 Select “SPL” when creating requisitions for Contractual Services

 Ensure that you designate distribution by amount vs. quantity

 OCO & Expense items should be listed on separate line items on
  the requisition.

    The contact name, location, Bldg., and room # must be placed in the
     Header Comments of the requisition and the “send to vendor” box must
     be checked so that this information prints on the PO. Property personnel
     use this information identified on the po‟s to easily locate the OCO items
     for tagging/decaling purposes.
                                                                            36
             CONFIRMATION ORDERS
                            DEFINITION:
When product/services are received and no PO is in place
 Bad Business Practice
     University isn‟t covered by terms & conditions
     Vendor waits for payment

 Provide after-the-fact justification by notating in “Header Comments” why a
  requisition wasn‟t created prior to ordering

 Insert the following in Header Comments: “Confirming Order – Do Not
  Duplicate”. Remember to check the “send to vendor” box to ensure that
  this comment is printed on the PO.                                        37
               AMOUNT ONLY PO’S
                        DEFINITION:

 Amount only PO‟s do not provide detailed purchasing
  information. The University „s use of them will limit Purchasing
  and Property Services‟ ability to negotiate the best possible
  prices from our Vendors.


 NOTE: Purchasing Cards should be used in lieu of Amount
  Only PO’s whenever feasible.
                                                                38
       AMOUNT ONLY PO’S (cont’d)

Limited to 1 year
$1,000 minimum to open
Need the beginning & ending dates
Not to exceed $50,000 unless covered by University
 or State contract or sole source
List at least 3 examples of items to be bought
Include authorized department personnel
                                                      39
                     CHANGE ORDERS
 Change Orders should be submitted to Purchasing by fax @ 974-5362 or scan
  & email to the Purchasing Agent that issued the Purchase order

 A change request to a PO is only done to change the following:
    Description
    Quantity
    Unit Price
    Due Date
    Delivery Locations
    Fund
    Account
   OR
    Cancel the PO before it‟s received or vouchered

 All Change Orders must be signed by the accountable officer.            40
     THE FUTURE OF PURCHASING

Strategic Sourcing

More Purchasing Classes & Training

Updated Website

                                      41
                  SUSTAINABILITY
 USF supports the purchase of products that will minimize any
  negative environmental impacts on our work.

 “Environmentally Preferable Products” have a lesser impact on
  human health and the environment when compared with
  competing products

 “Recycled Products” are manufactured with waste material that
  has been recovered or diverted from solid waste

 USF personnel will purchase recycled and environmentally
                                                                 42
  preferable products whenever practicable.
            HELPFUL HINT




EARLY PURCHASING INVOLVEMENT SAVES TIME
 ON LARGE OR COMPLICATED PURCHASES
 AND/OR CONTRACTS

                                       43
ADDITIONAL
RESOURCES

             44
                    PURCHASING WEBSITE
                                   www.usf.edu/purchasing
WEBSITE INCLUDES…

 Complete directory of all Purchasing Staff with their respective responsibilities

 Exhaustive listing of the category codes

 University and State Contract Listing

 Purchasing Directives

 Supplier Diversity Program Information

 Minority Business Enterprise Vendor Directory

 P-Card Information
                                                                                      45
 Property Information
                  IMPORTANT CONTACT
                     INFORMATION
 PURCHASING
    Phone #: 974-2481 ….
    Staff listing: View Contact Listing of Purchasing on the Purchasing Website at:
      http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf
 P-CARD
    Contact: Tom Scott
    Phone #: 974-2481 ….
    P-CARD Website: http://usfweb2.usf.edu/pcard
 SUPPLIER DIVERSITY PROGRAM
    Contact: Desiree Hanson
    Phone #: Call: 974-3292 ….
    Supplier Diversity Website: http://usfweb2.usf.edu/supplierdiversity
 PROPERTY
    Contact: Iris Wiggins
    Phone #: 974-6025 ….
                                                                                       46
    Property Website: http://usfweb2.usf.edu/purchasing/property.html
               QUESTIONS
PURCHASING: usfpurchasing@admin.usf.edu

P-CARD: PCard@admin.usf.edu

Supplier Diversity Program: dhanson@admin.usf.edu

Property: usfproperty@admin.usf.edu                 47
THANK YOU FOR
   COMING!

                48

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:43
posted:12/13/2010
language:English
pages:48