Presentation on theme: "Purchasing 101 Basic Purchasing Training for FIU Departments."— Presentation transcript:
Purchasing 101 Basic Purchasing Training for FIU Departments
Agenda Regulatory Authority and Responsibility Purchasing Services Organization Purchase of Commodities and Contractual Services Sole Source Processes Research Bid Exemption Process Competitive Solicitations Purchasing Mechanisms Expenditure Guidelines Departmental Card Guidelines Allowable Unencumbered Purchases Procure-to-Pay Workflow Purchasing Category Codes Special Approvals Contracts Vendor Contracts Purchasing Services Workload Purchasing Services Goals Resources
Regulatory Authority and Responsibility The BOG, by statute, has been delegated authority for SUS purchasing of commodities and contractual services. Specifically, BOG Regulation , addresses the SUS procedures and practices used in purchasing commodities and contractual services. FIU BOT Regulation FIU-2201 governs purchasing of commodities and contractual services for FIU and tracks the requirements of the BOG Regulation. The Office of Controller/Purchasing Services administers the University’s purchasing program, is the University department authorized to commit funds for the acquisition of commodities or services, and is the initial point of contact for service contracts prior to any obligation or commitment by the University. The Purchasing Manual outlines all FIU Purchasing requirements and processes. Purchasing functions include preparing specifications for competitive solicitations; initiating formal quotations, proposals and bids; dispatching purchase orders; conducting public bid openings; facilitating evaluation of competitive solicitation proposals; and negotiating and awarding contracts. The FIU Office of Internal Audit and State Auditors audit Purchasing Services to ensure all processes are followed and all regulations are adhered to.
Purchasing Services Organization Kelly Loll, CPM Director of Purchasing Services Chandra Nix Purchasing Coordinator Kenia Junco Associate Director Emily Diaz Sr. Purchasing Agent Pamela Johnson Sr. Purchasing Agent Alex Valenzuela Support Specialist Tere Portuondo Sr. Purchasing Agent Back-Up to Cheryl Cobb Donald Corbitt Sr. Purchasing Agent Back-Up to Jacob Zade Crystal Herrera Purchasing Coordinator Cheryl Cobb Sr. Purchasing Agent Back-Up to Tere Portuondo Jacob Zade Sr. Purchasing Agent Back-Up to Donald Corbitt Contracts & Vendor Approval Oversee the Contracts, Sourcing and Vendor Unit & Major Solicitations Support Provided Solicitations & Contracts Vendor File Maintenance Support Provided Oversee the Purchasing Unit/ Functional & Technical Support Liaison/Posts Sole Sources IT Hardware & Software/ Telecom/ Audio-Visual/Advertising Furniture/Construction/ Maintenance/Vehicles Scientific/Medical/Uniforms/ Artwork/Gift Cards Athletics/Consulting Services/ Catering/Travel/Promotional/ SOBE
Purchase of Commodities and Contractual Services Vendor Registration Purchasing Thresholds: $0 - $14,999: Informal quotation may be solicited verbally $15,000 - $24,999: Up to two written or verbal quotes required $25,000 - $74,999: Two or more written quotes required $75,000 +: Competitive solicitation required Additional Option: Piggyback Agreements Exceptions: Emergency Purchases Sole Source Purchases Division of Research Bid Exemptions BOG Exemption (6)(d) The Purchasing Director may, at her discretion, waive the requirement for written quotations when it is in the best interest of the University.
Sole Source Processes Sole Source Purchases greater than $75,000 Before entering a requisition, Department must: Complete Sole Source Request Form per instructions on form. Submit completed form and backup documentation to Kelly Loll, Purchasing Director for review and approval. If the value of the purchase is $100,000 or greater, Presidential approval will need to be obtained by Purchasing. If approved, Purchasing Services will post the sole source to the Purchasing website for 72 hours, per regulatory requirement and notify the Department a requisition needs to be entered for the vendor listed in the documentation. After posting requirement is complete, PO will be dispatched by buyer. If there is a contract for the sole source purchase, contract process must be followed and PO will be dispatched upon execution of contract. Sole Source Purchases under $75,000 Before entering a requisition, Department must submit: Justification memo stating the reason for purchasing the goods/services from the specific vendor; Letter from the vendor or manufacturer stating they are the only authorized distributor. If approved, Purchasing Director will Department with approval and to enter a requisition for the vendor selected. The Department must attach the Purchasing Director’s approval, the justification memo, and the vendor’s letter to the requisition. A Sole Source Request Form is not required and posting of the sole source is not required.
Research Bid Exemptions & Purchases Vendor specified in Grant Submit requisition, attach copy of section from the grant that specifies the vendor. Requisition and back-up documentation will be reviewed by Kelly Loll, Purchasing Director and, if all is outlined appropriately, she will dispatch the PO. Vendor not specified in Grant Complete Research Bid Exemption Form per instructions on form. Submit requisition, attach completed, signed Form and back-up documentation. Requisition and back-up documentation will be reviewed by Kelly Loll, Purchasing Director and, if all is approved, she will dispatch the PO. Policies for Purchasing Items on Sponsored Projects Division of Research policies: Part B, Post Award: Purchase or Receipt of Items Requiring EH&S Prior Approval Sponsored Research Purchasing Exemption Subaward Preparation and Payment to Sub-recipients on Sponsored Projects
Competitive Solicitations Competitive Solicitation Process Requests for Information (RFI) Complete Competitive Solicitation Request form and submit to Purchasing Purchasing will review form and contact Department to discuss competitive solicitation options, timeline and requirements Types of Competitive Solicitations for the purchase of commodities and/or contractual services: ITB – Timeline: approx. 3 months RFP – Timeline: approx. 4 to 6 months depending on complexity ITN – Timeline: approx. 6 to 9 months depending on complexity
Competitive Solicitations INVITATION TO BID (ITB) Examples of procurement needs that may fall under this format include: scientific equipment/services, audiovisual equipment and installations and solid waste removal service. Price is the major consideration in the award determination REQUEST FOR PROPOSALS (RFP) Examples of procurement needs that may fall under this format include: software purchases, small trades and catering services. Factors other than price are to be considered in the award determination: Vendor experience, project plan, design features of the product(s) offered, scope of services, etc. Negotiations are limited in the RFP process and may only take place with the vendor(s) recommended for award and for specific points reserved in the RFP INVITATION TO NEGOTIATE (ITN) Examples of procurement needs that may fall under this format include the acquisition of consultants and complex services. Factors other than price are to be considered in the award determination: Vendor experience, project plan, design features of the product(s) offered, scope of services, etc. Extensive negotiations, with a shortlist of vendors, may be part of the ITN process
Purchasing Mechanisms When initiating a purchase use one of the following purchasing mechanisms: Departmental Card Allowable Unencumbered Payment Purchase Order Purchase Order must be obtained before receiving goods and services. Units are NOT authorized to process PO’s after the fact. Confirming orders are in violation of FIU Policy as defined in the Purchasing Services Procedures Manual, Section 3.4, “Departments are not authorized to place orders directly with vendors for goods or services. “ Blanket Purchase Orders should be requested at the beginning of the fiscal year for vendors from which multiple purchases of goods or services will be made throughout the year. Change Order requisitions are required to increase Purchase Order amounts and quantities.
Expenditure Guidelines Please refer to the Expenditure Guide by Fund Matrix located in the Office of the Controller Index page for a list of expenditures and the funds that allow for these type of purchases. If using concession funds, you must provide a statement detailing how the expenditure benefits the interest of higher education.
Departmental Card Guidelines In an effort to improve purchasing efficiencies, we encourage Departments to use a Departmental Card to facilitate payments for the following purchases: Academic Reviews Accreditation Fee Advertising All Catering Services Institutional & Departmental Memberships Lab Supplies & Non-Hazardous Chemicals Office Supplies Publication Fees Registration Fees for College Fairs, Seminars, Workshops, Conferences, and Conventions Rentals (non-contractual) Shipping via UPS and/or Fed-Ex For additional listing of allowable purchases under the Departmental Card Program, please refer to Page 21 of the Departmental Card Guidelines & Procedures Manual:
Allowable Unencumbered Purchases
Purchasing Category Codes Purchasing Category Codes are mapped to GL Expense Accounts. For Operating Capital Outlay (OCO) Purchases, the codes that begin with 999xx should be utilized. OCO refers to fixed assets valued at $5,000 or more. The following queries can be used to look up the codes before you set up your requisition: FIU_FSSS_PO_CATEGORY_LIST – Provides the complete list of active category codes. FIU_PO_CATEGORY_LIST2 – Allows you to search for category codes by the GL expense account.
Purchasing Category Codes Continued For subcontracts the first $25,000, if the subcontract is subject to Indirect Cost (IDC), should be loaded to category code (acct ) and any remaining balance should be loaded to category code (acct ). If the requisition goes over the initial $25k threshold please make sure that any amount over $25k is listed as a separate line on the PO and loaded to category (acct ). Gift Card Requests for Research Subjects should be coded as Participant Payments code (acct ). Links Research Gift Card Request Form: Gift Card Processes and Forms:
Purchases: Special Approvals All purchases of software, servers and IT contractual services over $1,000 require the CIO’s approval. Any purchases for software, including those under $1,000, where there is a University Wide License agreement also require the CIO’s approval. CIO’s approval must be obtained prior to submitting requisition and must be attached to requisition. Purchase of radioactive material must be approved by the Radiation Safety Officer in EH&S before submitting requisition and must be attached to requisition. Unless otherwise specified by the Radiation Safety Officer, the delivery address for all radioactive material is Environmental Health & Safety, SW 8 th St. CSC-162, Miami, FL University Vehicle acquisitions must be routed through Vehicle Services. A University Vehicle Justification Form must be completed by the requesting department and approved by the Department Head and Dean or Vice President. After all approvals obtained Department may submit requisition and all approval documentation must be attached to requisition. Insurance requirements are established by Alex Fals in Risk Management. Departments are responsible for obtaining insurance requirements and ensuring that the vendor has the proper insurance in place prior to the provision of goods or services.
Contracts FIU Contract Templates Purchase Order Independent Contractor Agreement* Term contract that allows for multiple payments to vendor Service/Performance Agreement* One-time Payment contract and service/performance must be on the allowable unencumbered payment list Cannot be used for foreign vendors * Refer to Contract Templates Procedure: FIU Master Agreements Hotels: Business Services: Click-thru Agreements Vendor Contracts
* Service and Performance/Entertainment Agreement (One Time Payment)
Purchasing Services Workload Buyer Productivity & Cycle Time FY2014 Fiscal Year No. of POs PO $ VolumeNo. of Contracts No. of One- Time Payment Contracts No. of Solicitations ,920$212,302,
Purchasing Services Goals Improve Cycle Time PO cycle time of six (6) business days Contract cycle time of five (5) business days Respond to department/vendor s and voic s within one business day Increase Compliance Training development (i.e. Purchasing 101, Contracts 101) Resource development (i.e. process flowcharts, Purchasing Manual) Technology (i.e. ePro, improvements in PS) Increase Savings Strategic Sourcing Consortium/Cooperative Agreements Negotiations
Resources Purchasing Services Web Site: Financial Systems and Support Services: OGC Forms: https://generalcounsel.fiu.edu/contract-forms/ Training Resources: https://professionaldevelopment.fiu.edu Office of the Controller Contact List: Office of the Controller Forms: Signature Delegation: