1. What You Need to Know About the Procurement Process
University of Nebraska–Lincoln
Purchasing Department
What You Need to Know
About the
Procurement Process

2. Purchasing Department
Welcome
This session will cover the basics of procurement:
An overview of Purchasing’s role and responsibilities
Effect of new policy changes on departments
Requirements for departments
If you have any questions about the purchasing process, please call us.
Purchasing Department

3. PURCHASING POLICY CHANGES EFFECTIVE JULY 1, 2006
BOARD OF REGENTS
PURCHASING POLICY CHANGES
EFFECTIVE JULY 1, 2006
Old Limits
New Limits
Board approval required
$250,000+
$400,000+
Sealed bids required
Includes written specifications, formal vendor bids, bidding timelines and deadlines.
$40,000+
$75,000+
Informal bid process
by UNL purchasing
department
Verbal or written quotations conducted by UNL purchasing required.
$10,000 - $39,999
$25,000 - $74,999
Informal bid process by requesting unit
Verbal or written quotations conducted by requesting unit
$5,000 - $10,000
$5,000 - $24,999
No bids required
Department option.
Less than $5,000

4. Board of Regents Policies & Procedures
As a public institution, UNL’s day to day business operations follow the policies and procedures outlined by the Board of Regents. UNL’s purchasing activity must pass numerous audits and reviews, and therefore, must be conducted in an organized and business like manner.

5. Purchasing Duties and Responsibilities
Insuring compliance with and enforcing the Board of Regents purchasing policies & procedures
Applying and enforcing standards and specifications
Obtaining maximum value for each dollar of expenditure
Granting all vendors/suppliers fair and equal consideration
Promoting fair, ethical and legal trade/business practices generally following the Uniform Commercial Code

6. Types of Procurement On Campus Stock Purchases
Contract Procurement/Purchases
Competitive Sealed Bids and Request for Proposals (RFP)
Departmental Purchases
Sole Source

7. On Campus Stock Purchases
Requisitions for stock purchases may be sent through SAP, campus mail, faxed, or hand carried to the designated UNL Department.
Information Services/Computer Sales – maintains an inventory of computers and computer related items.
Printing and Copy Services – makes name plates, signage and does printing and copy services.
University Bookstore – located in the Nebraska Unions

8. Contract Procurement
A contract established by the Purchasing Department for commonly used items or services.
Awarded to lowest responsive bidder and/or negotiated.
Lowest responsive bidder: One who has submitted a bid or proposal which conforms in all material aspects to the bid request and has the capability to perform all requirements in a manner which will assure reliability and good performance in addition to the offered price.
Prime Vendor Contracts

9. Competitive Sealed Bids/Request for Proposals
Used when estimated cost exceeds $75,000
Solicited for a minimum of 15 days
Publicly opened at a specified opening time and date
Awarded to the lowest responsive bidder

10. Competitive Sealed Bids/Request for Proposals
Purchases between $250,000 and $399,999 must be approved by the Vice Chancellor for Business & Finance and reported to the Board of Regents at the next Board meeting.
Before commitment of funds, purchases exceeding $400,000 must be submitted as a formal agenda item to the Board of Regents for their approval at the next scheduled meeting.

11. Competitive Sealed Bids/Request for Proposals
Time frames on purchases requiring Board approval:
Agenda/Report Items must be received by the Vice Chancellor for Business & Finance approximately 30 days prior to any scheduled Board Meeting.
Other time factors:
Bid preparation
Solicited for 15 days (minimum)
The bidding/evaluation/selection/ approval process can take days.

12. Competitive Sealed Bids/Request for Proposals
The approval process may involve any or all of these levels:
Reporting Vice Chancellor
Vice Chancellor for Business & Finance
Chancellor
Vice President for Business & Finance - Central Administration
University Legal Counsel
President of the University
The Board of Regents

13. Departmental Purchases
Departmental purchases authorized by the University directly from the vendor
Examples:
Procurement Cards ($0 - $4,999)
Framework Orders
Informal Competitive Bids

14. Informal Competitive Bids by Departments
Strongly suggested for purchases greater than $5,000 and less than $24,999.
Total dollars spent is total of entire order, not per item.
Obtain vendor pricing.
Award is made to the lowest responsive vendor.
Documented and filed.

15. Request for Quotation (RFQ)
Request for Quotation and UNL Standard Terms and Conditions are available in your handouts and can be found at or SAPPHIRE
The UNL Standard Terms and Conditions should be included with your Request for Quotation.

16. What to Do
Departments are responsible for purchases from $0 - $24,999.
Identify potential vendors/suppliers.
Provide written specifications.
Select a date for suppliers to submit pricing and allow them adequate time to respond.
Request written confirmation of quote.

17. What Not to Do
Don’t make specifications brand or company specific (possibly limiting competition). Be receptive to equals/alternates.
Don’t change specifications without notifying all potential suppliers.
Don’t do “Auction Pricing” – i.e., don’t use one vendor’s pricing to leverage additional price concessions from their competitor(s).
No pyramiding – multiple purchases/same item
List of Restricted Items - see handouts and

18. Signature Authority
With the new levels of signature authority, campus department heads have authority to sign professional services contracts (excluding Architects, Engineers, Landscape Architects or Land Surveyors) for $1 – $4,999, not exceeding 1 year.
Use a “Work-Made-For-Hire” agreement found at go to “Contracts for External Consultants” or go to SAPPHIRE Business Forms

19. Single/Sole Source Purchases
Any purchase made from only a single contractor or vendor without competitive bidding.

20. Single/Sole Source Purchases
Single/Sole source purchases up to $24,999 are to be approved by Dean, Director or Department Chair
Keep copies in your files (3 years plus current year and grants for the life of the grant plus 3 years)
Single/Sole Source Justification form can be found at (see Quick Reference Index) and SAPPHIRE’s “Business Forms”

21. Requirements in Dealing with Vendors
Plan ahead. Be realistic as to the expected delivery date.
If assistance is needed in locating vendors and developing a procurement plan, please contact the Purchasing Department ( ).
Contact more than one vendor (strongly suggest three) and retain pricing, terms, etc., and related contact information in departmental files.
Provide the same information and specifications to all vendors.

22. Requirements in Dealing with Vendors
Investigate all costs and aspects of product usage (maintenance, supplies, guarantees, warranty coverages, etc.).
NEVER accept gratuities of any kind from vendors.
Beware of vendor created crisis – “Price goes up after the first of the month,” or unrealistically low prices if we act immediately, etc.

23. Requirements in Dealing with Vendors
Beware of solicitations via phone calls, s...
Maintain all documentation (written, , etc.)
Give primary consideration to the objectives and policies of our institution.
All information relating to the procurement process is subject to public review.

24. Requirements in Dealing with Vendors
Conduct all business transactions in good faith.
Obtain prior consent of vendor before using designs, ideas or drawings.

25. When Contacting a Vendor
Get the name of the person taking your order.
Give them relevant contact information (name, delivery address, phone, , etc.)
Items to be purchased and specifications (catalog #, unit size, quantity, etc.)
Get unit cost of each item, shipping costs, payment terms and expected delivery date.

26. When Contacting a Vendor
Are there any special shipping and delivery instructions (regular, 1 day, 2 day, special packing, etc.)?
Does the vendor require a copy of the purchase order? (If yes, please secure the vendor’s mailing address or fax #).
Once purchase order is created, Purchasing will release the order. A purchase order is a binding contract.

27. When Contacting a Vendor
Your billing and delivery address:
University of Nebraska-Lincoln
Name of Your Department
Attn: Departmental Contact
Room # and Name of Building
City, State and Zip Code

28. Keep in Mind
A purchase order must be created for all equipment exceeding $5,000 to meet State guidelines.
Construction/renovation projects must involve Facilities Management and Planning.
Certificate of Insurance - always forward a copy to Purchasing to include in database – for a list of current vendors go to “Vendor Insurance Look-up Form”
Performance Bond Requirements
Conflict of Interest

29. Certificates of Insurance
*Whenever a Contractor, Vendor, Supplier,
Consultant or Engineer comes onto
University property we need to be
concerned about insurance coverage
regardless of the cost of the goods or
services being provided.
* At a minimum we require $1,000,000
General Liability Insurance
*The Board of Regents of the
University of Nebraska MUST
be named an additional insured

30. Performance Bonds
Labor and Material performance bonds are required on any construction project exceeding $15,000.
Liens -- cannot be filed on University property, thus the reason for Labor and Material performance bonds.

31. Conflicts of Interest Board Policy states: Section 11:
Financial or beneficial personal interest forbidden: gifts and rebates prohibited.
Section 12:
Purchase involving University personnel: purchases for personal use are prohibited.

32. Section 11.a
No officer or employee of the University involved in an advisory or decision-making capacity relating to any University purchase and no member of his or her other immediate family shall be financially interested, or have any beneficial personal interest, either directly or indirectly, in such a purchase, or in any bidder, contractor, lessor or vendor for such purchase. No such officer or employee or member of his or her family shall receive or accept, either directly or indirectly, by rebate, gift or otherwise, any money or other thing of value whatsoever, or any promise, obligation or contract for future reward or compensation from any person, firm, corporation or other entity which has submitted or intends to submit a bid or proposal in connection with any University purchase or which has otherwise been contacted by the University relating to a proposed University purchase.

33. Section 12.a
No article or service shall be purchased from any University faculty or staff member without prior approval by the Principal Business Officer, and any such purchase approved by the Principal Business Officer shall comply fully with the requirements of the conflict of interest provisions of the Nebraska Political Accountability and Disclosure Act.

34. Section 12.b
University funds shall not be expended for articles or services which are for personal use of staff or faculty members.

35. Special Circumstances
Radioactive and Hazardous Materials
Lab Animals
Firearms and Ammunitions
Vehicles

36. Radioactive and Hazardous Materials
You must contact Environmental Health & Safety for purchase or removal of radioactive materials and/or radiation producing devices.
Environmental Health & Safety
3630 EC Loop

37. Laboratory Animals
All requests for the purchase of laboratory animals must be sent to the Animal Care Program, 110 Mussehl Hall, or fax to , for approval before Purchasing will process the requisition/order.

38. Firearms and Ammunitions
Contact Purchasing

39. Purchase of Vehicles
Transportation Services is responsible for the procurement, licensing, titling, ownership, and assignment of all vehicles owned by the University of Nebraska-Lincoln.
Only certain vehicle types may be purchased by Departments.
For questions concerning motor vehicles contact Transportation Services,

40. Definitions
Purchase Order: A purchase order is a legal document used by the University which authorizes a supplier to provide a product or service to the institution.
Solicitation: The process of notifying vendors/ suppliers that the University wishes to receive bids or proposals on a set of requirements. Solicitation may include public advertising, the mailing of Sealed Bids or RFQ's, letters inviting offers, and telephone calls to prospective vendors/suppliers.

41. Definitions
Offer: Technically, an offer is an "act of one person that gives another person the legal power to create a contract to which both of them are parties." In practice, the bid or proposal submitted by a supplier is an offer. Sealed Bids and Request for Quotations (RFQ’s) solicit offers. Acceptance of these creates a contract.
Lowest Responsive and Responsible Bidder: One who has submitted a bid or proposal which conforms in all material aspects to the bid request and has the capability to perform all requirements in a manner which will assure reliability and good performance in addition to the offered price.

42. Purchasing Department
Call Us
For any questions regarding the purchasing process, please call:
Purchasing Department

43. Questions

44. Thank You!

45. University of Nebraska–Lincoln