1. Purchasing at the University of Maryland

2. MISSION In support of the University’s mission of excellence in education, research, outreach and collaborative partnerships with the greater community, the Department of Procurement and Strategic Sourcing will: Establish and administer contracts effectively Procure facilities, goods and services for best value Delegate procurement authority to promote efficiency Provide value-added physical distribution services Ensure University business is conducted in a fair and open environment, in full compliance with applicable laws and regulations Promote sustainability and reduce environmental impact

3. Contacting Procurement Procurement & Strategic Sourcing Home Page –www.Purchase.umd.edu Main Information 301-405- 5813 Main Fax 301-314-9565 KFS Help Desk 301-405-2603 –Email: fp-KFS-support@umd.edu

4. 6 Steps to Procurement Step 1 Consider borrowing or purchasing used or environmentally friendly Step 2 Are the goods or services available in-house? Step 3 Does the State require that we purchase the goods or services from “Preference Providers”?

5. 6 Steps to Procurement (con’t) Step 4 Is the transaction within Delegated Procurement Authority? Step 5 Submit a Requisition for Purchase to the Department of Procurement and Strategic Sourcing. For competitive purchases include: Requisition for Purchase Specifications Performance requirements Estimated dollar amount Funding source

6. 6 Steps to Procurement (con’t) Step 6 Contact the Department of Procurement and Strategic Sourcing with questions/concerns –Main Information 301-405-5813 –Main Fax 301-314-9565

7. Code of Ethics Give Vendors Fair and Equal Consideration Strive to obtain the maximum value for each dollar of expenditure Do Not Accept Gifts or Gratuities such as –Tickets to sporting or entertainment events, golf outings, meals

8. Code Of Ethics (Continued) Avoid Appearance of Conflict of Interest –Do not place orders with relatives or firms with whom you have some ownership or relationship Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation

9. Types of Procurements Delegated to Departments Processed by Procurement & Strategic Sourcing: –Micro –Simplified –Formal –Sole Source –Construction/Facilities Procurement

10. Procurement Lead Time Goals Purchases using the Purchasing Card Transaction under $5,000 handled in Procurement Greater than $5,000 less than $100,000 Greater than $100,000 Same Day 3 days 10 -14 days Milestone Plan

11. Delegated Procurement

12. Campus has authority to spend up to $5,000* *Purchasing Card *Automatic Purchase Orders *Consultant Contract up to $5,000 Vendor Contracts (Formerly Master Contract) Travel Card

13. Delegated Procurement Primary Tool: Purchasing Card Cardholder Agreement and Training with Test Required Purchases limited to $5,000 or less per transaction Certain Items/Services Restricted

14. Purchasing Card Issued in Individual’s Name Not for Personal Purchases No Cash and Cash Equivalents (gift cards, etc.) Not for Travel or Restaurants Cards Must NOT be shared No Splitting Orders to Bypass Procurement Regulations Pay Fair and Reasonable Prices

15. Vendor Contracts (Formerly Master Contracts) Approx. 70 Vendor Contracts available Many Vendor Contracts with Small and Minority Vendors Office Supplies, Computer Peripherals, MRO Supplies available through General Stores Listing on website (requires UM user ID and password)

16. Types of Procurements Processed by Procurement & Strategic Sourcing

17. Classification by Size $5,000 and under Micro Procurement –Delegated to Campus $5,000 - $100,000 - Simplified Acquisition (Procurement) Over $100,000 - Formal Procurement

18. Requisition for Purchase Transaction is generally initiated by creating a Requisition and submitting it to Procurement via Kuali Financial System https://kualifinancial.umd.edu/K FS/index.html –- click on “training” drop downhttps://kualifinancial.umd.edu/K FS/index.html Assignment of Requisition Based on Staff Workload

19. Requisition Must Have Approval by authorized signatory Clear specifications/scope of work Complete information –who, what, where, when, why Sufficient time for process –Realistic delivery date, not ASAP

20. Writing Specifications 3 Major Types of Specifications 1. Design – Identify minimum requirements 2. Performance – Describe what you expect the good or service to produce 3. Combination of design and performance

21. Simplified ProcurementSimplified Procurement $5,000 to $100,000 Handled by Procurement and Supply except Vendor Contract Releases –Goal is to issue purchase order within 14 days Simplified refers to the more streamlined process Procurement Specialists in Procurement and Strategic Sourcing use to execute these transactions

22. Request For Quotation Typically the Procurement Specialist will send a Request For Quotation (RFQ) to several suppliers. Will be considered for SBE/MBE procurement Based only on criteria stated in the solicitation –RFQ - low price that meets the specifications

23. Formal Procurement Greater than $100,000 Request For Proposals (RFP) Invitation For Bid (IFB) Handled by Procurement and Strategic Sourcing Customer Prepares the Statement of Work Customer Assists in the Development of a Milestone Plan Requires More Teamwork between Procurement and Customer Award Based on Best Value

24. Publication of the Requirement e-Maryland Marketplace Others as necessary –Length of time before due date is now flexible

25. RFP Process Pre-Proposal Conference Evaluation of Technical Proposals –By Committee –Written Clarifications/Oral Presentations Evaluation of Price Proposals Award by Best Value

26. What is a “Sole Source” Purchase? Sole Source Procurement: “ A situation created due to the inability to obtain competition. May result because only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation.” –NIGP Online Dictionary Equipment, Supplies and Consumables: –Products can only be purchased directly from a manufacturer that has NO resellers or distributors. –If resellers are available the purchase is NOT a sole source. Consultants and other Specialized Services –A Consultant has a unique set of knowledge, skills and abilities that make him/her the ONLY consultant that can do the required work. –A Scope of Work is required for all consulting contracts.

27. What is Not a Sole Source? A company offers a great price or deal, much better than its competitor. A company has the quickest delivery time. A company is known for providing the “best” product. A contract with the company already exists. This company provided the product last time. Sold by the manufacturer but there are resellers.

28. Sole Source Contract Formal proposal from Contractor Contractor Reviews and Signs our Terms, Conditions, Affidavits and Certifications

29. Sole Source Contract Procurement Determines Price Reasonableness Procurement Determines Contractor Responsibility –Past Performance –Technical Capabilities –Financial Stability Procurement Issues Contract

30. Vendor Contract Review Only Procurement can sign vendor contracts, agreements Insurance –University is self insured –Need a certificate of insurance? Contact Risk Manager, Donna McMahon, DES Vendor Agreements, Licenses, Waivers, Contracts and Contract Modifications –All such documents, regardless of cost, require Procurement’s review for objectionable terms

31. Consulting Agreements Consulting services are, in principle, no different from any other contract for services Contracts over $5,000 must be coordinated with Procurement Contracts less than $5,000, use UM consulting agreement on website Travel and accommodations costs can be included in the contracts –travel and accommodations should be consistent with University travel guidelines.

32. Consulting Agreements Cannot treat consultants as employees, nor can a consultant have been an employee during the calendar year To avoid conflict with IRS rules consult with Procurement before giving the consultant a notice to proceed when within delegated procurement

33. Furniture Purchases Maryland Correctional Enterprises (formerly State Use Industries) must be evaluated for all furniture purchases If Maryland Correctional Enterprises (MCE) can satisfy your requirements we must use MCE Furniture showroom in Physical Distribution with Representative Use Vendor Contract MCE, #12140 in KFS

34. AND Small Business Reserve Program Minority and Disadvantaged Business Enterprise Program AND Small Business Reserve Program

35. Minority Business Enterprise Minority Business Enterprise (MBE) State socioeconomic program to support historically underutilized businesses. House Bill 306 - Maryland Law sets goals

36. Certification for MBE Contractors To be counted, a firm must be certified by Maryland Department of Transportation Approx. 4000 firms certified Database available at –http://www.mdot.state.md.us/cgi- bin/mbedir/mbedirectory –link from Procurement’s web site

37. Minority Business Participation Goal Goal is 25% of dollars to be spent with MBE contractors or subcontractors 10% sub-goal for women owned businesses and 7% for African American owned businesses

38. Review of Each Procurement Procurement and Strategic Sourcing will review each procurement to determine if MBEs are available for solicitation Each Procurement over $100,000 should have MBE contract or subcontract goal

39. Small Business Reserve It’s the Law! 10% of dollars spent with Certified Small Businesses Designed to stimulate small business growth and strengthen the Maryland economy Requires delegated purchases from SBEs to meet mandate

40. Small Business Reserve Program Certain solicitations will be restricted to competition among State-certified SBEs Look up certified SBEs at: https://www.smallbusinessreserv e.maryland.gov

41. Review of Each Procurement Procurement and Strategic Sourcing will review each procurement to determine if SBEs are available for solicitation Procurement Creates Master Contracts with Small Businesses (identified with SBE icon)

42. Chancellor and President Support MBE and SBR Programs UM and USM Board of Regents supports the State’s efforts to increase business opportunities for MBE’s and SBE’s –Firms that have demonstrated time and again the ability to provide excellent products and services Increasing the MBE participation to 25 percent is a significant challenge. Mandate of SBE participation of 10% also a challenge We also need the assistance and aggressive effort of every unit on campus to achieve these new MBE goals and SBE mandate.

43. Contract Administration Delegated and Simplified Procurement or Aquisition –contract administration may be no more than verifying that the ordered item was received on time, at the right location and the price on the invoice is equivalent to the price on the purchase order, P-Card order, etc Complex Procurement –contract administration is a responsibility that is shared between Procurement and Supply and the customer (End-User, Department)

44. Contract Administration Early and effective communication between all parties (including Procurement) Detailed documentation of performance –Good or Bad!

45. Physical Distribution

46. Goods Received by the Requestor Review Delivery/Shipping Documents Inspect Shipment If count is incorrect or damage is apparent –Record discrepancy on delivery document (short one piece, etc.) –Have delivery person sign acknowledgement of statement with signature or initials –Make a copy of the signed document for your records –Sign document and accept delivery –Contact Procurement for Assistance if necessary. If UPS or FedEx and shipment is damaged, record discrepancy and refuse shipment

47. Shipping Goods from Campus Get a “Return Authorization” Keep accurate records FedEx and UPS Contracts Contact Traffic Manager for assistance (Doug Waterman, 301- 405-5852)

48. Household Moves Procurement has contracts for household moves Contact Doug Waterman, 301- 405-5852 for assistance Please allow approximately four weeks for the bid process, especially during peak season (June, July and August)

49. Secure Storage Inside and Outside Storage Inside: Sensitive Items Outside: 31 Units @ 10’ x 20’ each

50. Disposal of Surplus Property Terrapin Trader is the University’s Surplus Property Operation Property Control Free Pick Up from Departments Items Sold through TT Showroom and Bid Process

51. General Stores MRO Contract with MSC Industrial Supplies Office Supply Contracts and Computer Peripherals Contracts –Officemax A Boise Company –Rudolph's Office & Computer Supply, Inc.

52. Questions Contact: Jim Haley 301-405-5837 Vickie Underwood 301-405- 5840