1. Purchasing Rules & Regulations
Overview of UO Purchasing & Contracting Rules, Regulations and Policies
Presented by:
Allie O’Connor & Catherine Susman

2. Purchasing Rules & Regulations
This training is required to obtain and exercise Level 1 and Level 2 Contracting Authority

3. UO Purchasing & Contracting Policy
Based on Oregon Administrative Rules (“OAR”) , 061, and 062 (now UO Policy , 061, and 062)
Changes
Governance Transition occurred on July 1, 2014
Uniform Guidance Procurement Standards adopted by UO Board June 18, 2015
Per Policy requirements, you must use PCS Approved Forms for contracting activities
All Forms were updated as part of the Governance Transition – please go to PCS’ Website to obtain latest copies of forms.

4. Fundamental Concepts UO Policy 580-061-0000 – UO Code of Ethics
Annual Statement –required
UO Procurement Evaluation Declaration
Participation in Competitive Procurement
Conflicts of Interest and Ethical Considerations
Family Members
UO Employees & Former Employees
Gifts from Vendors

5. UO Code of Ethics
Found in UO Policy Library:

6. UO Procurement Evaluation Declaration of No Conflict of Interest

7. Conflicts of Interest
ORS (1) – Prohibits an UO employee from using employee’s position to obtain personal financial gain for the employee or a relative if the personal financial gain would not otherwise be available for UO employee’s position.
ORS – Concerns handling actual and potential conflicts of interest. An “actual conflict of interest” means any action, decision, or recommendation by an UO employee while acting in the capacity as an UO employee which would be to the private pecuniary benefit of that employee or that employee’s relative. A “potential conflict of interest” means any action, decision, or recommendation by an UO employee while acting in the capacity as an UO employee which could be to the private pecuniary benefit of that employee or that employee’s relative.

8. Family Relationships and Employment
UO Policy OAR (2) – No academic staff member, without permission of the immediate supervisor, shall participate in employment decisions, supervision or grievance adjustment concerning or involving the staff member’s spouse, child or stepchild.
UO Policy – No members of the faculty or administration shall participate in making recommendations or decisions involving employment, compensation, promotion, leave of absence, grievance adjustment, termination, or in the supervision of their relatives without prior permission of their immediate supervisor.

9. Ethics Rules
Possible to violate the law not just by receiving something of financial value but also by giving or providing something of financial value to a public official.
The civil penalties for non-compliance are substantial, and the individual is personally liable for such penalties.

10. Gifts
During a calendar year, a University employee or a relative or member of the household of the employee may not solicit or receive, directly or indirectly, any gift or gifts with an aggregate value in excess of $50 from any single source that could reasonably be known to have legislative or administrative interest in the University.

11. Activity 1 Class Materials Purchase
Department X is purchasing curriculum materials required for a specific class at value of $500.
The vendor set-up process reveals that the owner of the company is a current UO employee.
Can UO purchase from this vendor? Would the result be different if this vendor was also teaching a workshop?

12. Fraud Triangle

13. Factors Contributing to Fraud Opportunity
Lack of internal controls
Override of existing controls
Lack of management review

14. Internal Controls
More than one person involved in purchase transaction
Determine applicable policies & procedures
Consult staff/campus for advice
Collect maintain documentation
Staff Training

15. Importance of Management Review
Perception of detection is directly correlated to the occurrence of occupational fraud.
Management plays a key role in the perception level of any operation they are over.

16. Segregation of Duties Department Purchasing Profile
Examples of Duties:
Commit Funds
Approve Purchases
Receive Goods/Services
Process Invoice Payment
Approve Invoices
Management Review

17. Authorities vs. Contracting Authority
Authority to Commit Department Funds
(to allow use of budget funds)
vs.
Contracting Authority
(enter into a written or oral contract)

18. Authority to Commit Departmental Funds
Authority to internally allow use of department funds
(i.e. who allows the purchase within your department – not who actually makes the purchase.)

19. Authority to Commit Departmental Funds, Cont.
Authority designated from Budget Authority (Dean, Director or Department Head)
Part of Internal Controls
No PCS required training
NOT contracting authority or authority to enter into a contract.

20. Authority to Commit Departmental Funds, Cont.
Examples of Authority to Commit Funds
Department director approves a staff member to spend $1,500 in dept funds for the purchase a laptop computer
Department director approves a staff member to submit a hotel agreement for the department’s upcoming seminar to PCS for processing and approval

21. Designation to Commit Funds
Authorities
Designation to Commit Funds
Budget Authority
Department Staff

22. Contracting Authority
Authority to enter into an oral or written contract on behalf of UO

23. Contracting Authority, cont.
Examples of Contracts
Proposals/Quotes/Estimates/Letter Agreements submitted to UO by a contractor for official acceptance
Contracts/Agreements/MOU
Purchase Orders
Personal Services Agreements (PSC)
Phone & Internet Orders

24. Authorities UO Contract Officers
Chain of Delegation
University Board
UO Contracting Authority Delegated to Contract Officers
by UO’s VP of Finance and Administration
August 30, 2012 Memorandum regarding Delegation of Signature Authority (still effective)

25. Authorities Level 1 and Level 2 Contracting Authority
Delegated by PCS Director
Level 1 Contracting Authority (L1CA)
Less than or equal to $5,000
Purchase Order, Direct Billing Invoice
Must use Approved PO Form
Level 2 Contracting Authority (L2CA)
Less than or equal to $25,000
Approved PCS level 2 contract forms
Delegated Department Personnel
Delegated Department Personnel
Delegated Department Personnel

26. UO Department Approval Authorization
Obtain by completing
the Department Approval Authorization Form
Available online at:

27. Basic Contract Principles
Dollar Value of Contract
Calculated based on the entire procurement/project (include all phases).
Best Value
Allows consideration of factors other than price in making a purchasing decision.

28. What Dollar Level Requires a Written Contract?
Personal Services – ANY $ amount
Personal Services are services requiring specialized skills, knowledge, and resources. Examples include: physician, consultant, artist, etc.
Personal Services Contract template appropriate
Goods and Trade Services - $5,000+
Trade services generally do not require specialized skill and certification. Examples include: janitor, photocopier maintenance, etc.
Purchase Order template appropriate

29. Activity 2 Software Renewal
Department X receives a renewal notice and contract amendment from the vendor to renew the software they use for managing their projects.
The original purchase was $15,000, the renewal amendment gives them the option to renew for an additional 3 years at $5,000/year.
The renewal notice provides the renewal may be completed via signing the amendment or via calling the sales representative with approval of amendment.
The Director of Department X tells the Project Manager he approves the 3 year renewal.
The Project Manager has Level 2 Contracting Authority.

30. UO Purchasing & Contracting Responsibilities
Programmatic Review
Budgetary Review
Compliance Review

31. UO Purchasing & Contracting Responsibilities
Programmatic Review
Does the purchase have a business purpose that relates to department’s objectives and supports UO’s mission?
Review and confirmation is the primary responsibility of Department’s Budget Authority and their designees.

32. University Purchasing & Contracting Responsibilities
Budgetary Review
Are funds available for purchase?
Budgetary review is the primary responsibility of the Department’s Budget Authority and their designees.
Departments must ensure funds are available and properly budgeted prior to making any purchasing commitment.

33. UO Purchasing & Contracting Responsibilities
Compliance Review
Proposed purchase or contract meets all applicable laws, regulations, policies, procedural requirements and that the purchase or contract is completed using good business practices.
Compliance review and confirmation is a shared responsibility of PCS and a Department’s Budget Authority and their designees.

34. Contracting with Individuals
All individuals must be Independent Contractors.
- No UO direction and control
- Rarely UO employees (requires PCS review and approval)
- External review when services are provided in foreign countries
- Must complete Independent Contractor Certification (See Supplement)

35. Policies Qualified Rehabilitation Facilities (QRF)
Minority, Women Owned, Emerging Small Business (MWESB)
Printing and Mailing
Catering
Confidential Recycling
Property Control
Surplus Property Disposal
High Risk Equipment Tracking
Public Records

36. Internal Approvals See Approvals List
Sponsored Projects Services (SPS)
See Chart for sub-recipient vs. vendor relationship
Information Technology (CIO Approval)
Business Affairs Office
Furniture Purchases
Marketing and Brand Management
UO General Counsel Review – Only secured by PCS

37. Activity 3 Temporary Services
Department X needs to hire or obtain
temporary services for a two week project.
Temps, Inc. has a UO contract to provide temporary workers at an hourly rate of $13/hour.
Temps-r-Us, Ltd., a Qualified Rehabilitation Facility (QRF), provides temporary workers with hourly rates of $14/hour.
Which vendor will Department X need to work with to hire the temporary worker?
May Department negotiate a higher hourly rate?

38. UO Purchasing Methods Invoice – under $5k
Direct Billing Account – under $5k
Purchase Order – required over $5k
UO Custom Contracts
UO Contract Forms
Vendor Contracts

39. Procurement Thresholds
Direct Procurement
≤ $25,000
Informal Procurement
$25, to $150,000
Formal Procurement
$150,
Alternative Procurement

40. When Competition is not Required
Price Agreements: When competitive requirements have been fulfilled & the contract is open for UO to use.
State of Oregon Contracts - ORPIN
Other Public Entity Price Agreements
Retainer Contracts
Cooperative Agreements

41. When Competition is not Required, Cont.
Emergency Contracts
Sole Source
Special Entity
Note: PCS review and approval of ANY Emergency or Sole Source contract is required before proceeding with procurement.

42. When Competition is not Required, Cont.
Exemptions from Competition
Department internally reviews and determines if an exemption applies and if using the exemption is in the best interest of the department and UO
PCS available for assistance and support
PCS review and approval of exemptions required before proceeding with procurement

43. Activity 4 Computer Purchase
Department X is purchasing 20 computers for an estimated value of $1,500 per computer.
What considerations or steps need to be taken when proceeding with this procurement.

44. Activity 5 Subscription Purchase
Department X is excited as they are purchasing enterprise-wide software including hiring a consultant to customize, install and deploy the software in the amount of $300,000. The department just learned that there is an exemption from competition for software purchases.
What approvals are required to complete the purchase?

45. Required Records Minimum specifications
All award criteria
Solicitation documents
Documentation of advertisement
Vendor communications
Vendor quotes
Copy of purchase document
Documentation of all required approvals
Documentation of purchase completion
Documentation of purchase payment
Notes page to document vendor performance or department satisfaction

46. Required Records, cont.
Individual departments are the department of record for purchasing and contracting transactions
UO Archives Record Retention Schedule

47. Activity 6 Public Records Request
3 year contract for hiring temporary personnel is expiring.
A potential vendor has submitted a public records request to the Public Records Office to obtain copies of the documentation for the prior solicitation and all records related to the current contract.
The Public Records Office has requested these records. What is your role in responding to the request from the Public Records Office?

48. Activity 7 Hosting Conference
Director of Department X tells his assistant they will be hosting a conference at the Red Lion and lunch will be covered as part of the conference.
The Director asks the assistant, who has Level 2 Contracting Authority, to place the reservation and confirm attendance.
The Red Lion sends over a letter with the menu and attendance confirmation to be signed.

49. Activity 8 Consultant Purchase
Department X is hiring a consultant to analyze data generated via a campus survey and is funded with grant $’s. The contract should not exceed $25,000 for phase one. The department may have two additional phases.
A firm was named in the grant to perform this work.
Is competition required? If no, why not? If yes, what type?

50. Tools & Support Policy Training Templates
Written Procedures and Instructions
Website
Direct assistance from PCS Staff via phone, and in-person meetings; and
Central s:

51. Questions