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Slide 1 University of Illinois Library Purchasing Updates


									 Purchasing Updates
 Faculty and Staff Presentation
 Fall, 2010
Senate Bill 51: welcome to area 51
  Recent Changes in Procurement State Law
      What and Why You Need to Know

• WHAT has changed – top five:
  1.   Prior Contract Authorization
  2.   Sole Source Purchase Requirements
  3.   Vendor Authorizations & Certifications
  4.   Material Communications Reporting
  5.   Organizational Structure/Authority/Governance
  Recent Changes in Procurement State Law
      What and Why You Need to Know

• WHY you need to know
  – Added procedures and time to complete procurements.
     • Ensure your faculty and staff understand the new
        requirements—and that what could be rushed or
        managed as a last minute purchase is no longer
     • Help us help you by contacting your departmental
        business person and the Purchasing Office as soon as
  – Failure to comply with new requirements could lead to
    termination of employment
1. Prior Contract Authorization
“Vendors shall not be paid for goods that were received or services rendered
    before the contract was reduced to writing and signed by all parties.”

•    Purchase Requisitions entered into the Banner system after the goods or
     services have been received are “Non-Conforming” orders. They violate
     the requirement for prior contract authorization
•    A new process is in place for managing “Non-Conforming” orders
•    Under new law, in certain circumstances, the University may not be able
     to make payment for goods and services received without prior contract
     Ensure faculty and staff understand a Purchase Order or executed
     Contract must be complete before goods or services are received from
     a vendor. Note – all orders in iBuy automatically create Purchase
     Orders in Banner. Voyager POs reference procurement code
2. Sole Source Purchase Requirements
   All Sole Source purchases must be posted to the Procurement Bulletin
   for 14 days prior to a required public hearing.

• Sole Source hearings are held on a regular schedule every other
• There is a new required Sole Source Justification Form
• Training for the new Sole Source process will be provided to faculty
  and staff later this fall
• Naming of a product or service in a grant proposal does not
  constitute justification for a Sole Source: Library must comply

    Ensure faculty and staff understand the added time and
    requirements for all Sole Source procurements. In some cases,
    this could be a month or MORE as vendors may not return
3. Vendor Authorizations & Certifications
   New requirements for businesses to register with the State of Illinois and
   disclose certain information in order to be a vendor for the University.

• Business registration requirement
   – Must be a legal entity authorized to do business in Illinois
     prior to submitting a bid, offer or proposal or LICENSE
   – Similar to Board of Elections registration, but now a fee
• Financial disclosure by vendors for all purchases that exceed
• Business Enterprise Program (BEP) utilization plan (if
  applicable) for minority and female owned businesses
   The new requirements for vendors may result in the
   University not being able to make purchases from vendors
   who have not complied, even if we have purchased from
   them in the past.
4. Material Communications Reporting
   Beginning January 1, 2011, ALL State employees must enter a report of
   communications with vendors into a Web-based system.

• The Executive Ethics Commission of the State of Illinois is
  responsible for coordination and training related to this
  requirement. We don’t know the final details of this yet.
• Web-based tool will provide reports to the Procurement Policy
  Board (PPB)
• All material communications for current or potential procurement
  opportunities with a vendor must be reported

  Caution faculty and staff about talking with vendors or potential
  vendors; consider contacting vendors through the Purchasing
  Office. Negotiation for library materials is handled centrally
5. Organizational Structure/Authority/Governance
• University procurements are approved by the Chief
  Procurement Officer (CPO) for Higher Education
• CPO is now selected by the Executive Ethics Committee
  for a five year appointment
• State Procurement Officer (SPO) for UIUC is Maxine
  Sandretto, Assistant Vice President for Business and
• New role of Procurement Compliance Monitor

  The Chief Procurement Officer shall exercise all
  procurement authority created by the Illinois
  Procurement Code.
     Details of Legislative Changes
• Senate Bill 51/ Public Act 96-0795
   – Effective 07/01/2010
   – The major state agencies (IDOT, CMS, CDB, Higher Ed) formed
     subcommittees to review the requirements and provide
     recommendations and interpretation
• Several subsequent Public Acts
   – PA 96-0920 - requires financial disclosures from vendors for all
     purchases over $25K, delays material communications reporting
   – PA 96-1064 – requires reporting of disadvantaged business
     utilization plans

  *Procurement Policy Board 30 day review period
             University Responses
• Informing and educating faculty and staff
   – Scheduling presentations to department faculty (request
     department business staff be present for the presentation).
   – Preparing Sole Source process training
   – Developing “Purchasing 101” class to cover all current
     purchasing requirements
• Implementing a University-wide Contract Management
  System (all contracts except those for sponsored research)
• Initiating a new program to place trained Purchasing Office
  staff in shared services units within departments and
                 Library summary
• Do NOT initiate an order outside of a valid purchase
  order process: there will be repercussions
• PLAN ahead if looking at large expenditures: examples
   – sole source hearing process and maybe the bid process
• Remember that we need to have vendor paperwork
  completed for anything that requires signature if over
  5K licenses included and that is difficult paperwork
• Vendor negotiation is now formal and documented: use
  common sense
            What Can I Sign?
• Other than your paycheck – you are not
  authorized to sign anything on behalf of the
• Not even Paula has signature authority.
• If in doubt ask Kathie, Rod, or Susan.

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