2. How To Get What You Want, When You Want It! An Overview of Purchasing Policies and Procedures

3. Trainer Information and background Where is Purchasing located?

4. Today’s Objectives  Navigate Purchasing Web site  Determine departmental responsibilities in purchasing responsibilities in purchasing process process  Learn to write accurate and complete specifications complete specifications

5. Web Site Navigation  Staff Contact Info  Goods and Services Page  Contract Vendors and EMarket

6. General Purchasing Information n Governing Authority is FSU Rules, FL Statutes, FAC (Florida Administrative Code) FSU Rules, FL Statutes, FAC (Florida Administrative Code) n OMNI Online Management of Networked Information

7. WHO IS ULTIMATELY RESPONSIBLE FOR VENDOR SELECTION AT FSU? WHO IS ULTIMATELY RESPONSIBLE FOR VENDOR SELECTION AT FSU?

8. Before You Act, Ask Us First! Before You Act, Ask Us First! n PLAN AHEAD! n Contact Purchasing before contacting vendors. Saves your time and effort n Considerations: EMarket vendors, strategically sourced contracts, state contracts, outside approvals, maximum pricing to be observed, or other factors to consider. n Visit our Web Site for Contract Information.

9. IF YOU ONLY REMEMBER ONE THING FROM TRAINING.…remember this! IF YOU ONLY REMEMBER ONE THING FROM TRAINING.…remember this!

10. NEVER PLACE AN ORDER WITH A VENDOR...... n UNTIL A PURCHASE ORDER HAS BEEN ISSUED. n YOU MUST NOTIFY PURCHASING THAT YOU PLAN TO PLACE THE ORDER WITH THE VENDOR, BUT n INSURE THE PURCHASE ORDER IS PROCESSED IN GREETS FIRST!

11. A COMMON MISPERCEPTION....... A COMMON MISPERCEPTION.......

12. IT’S MY MONEY! IT’S MY MONEY!

13. There are two kinds of money: n State Funds: - Appropriated by the legislature - Appropriated by the legislature - Contracts or Grants - Contracts or Grants - Student activity and service fees - Student activity and service fees - Auxiliary funds - Auxiliary funds - Vending funds - Vending funds Bottom Line: If there is an FSU budget number assigned, these are STATE FUNDS. Bottom Line: If there is an FSU budget number assigned, these are STATE FUNDS.

14. Two Kinds of Money, continued n Private funds: - Personal checkbook - Personal checkbook - Funds handled through a direct - Funds handled through a direct support organization, such as a support organization, such as a Foundation account. Foundation account.

15. If it’s “your money” you won’t need a requisition, nor will the payment be made by Payables and Disbursements. Be sure vendor does not bill FSU, or ship to the FSU Receiving Dept.

16. What is a purchase order? A BINDING CONTRACT BETWEEN FSU AND THE VENDOR. A BINDING CONTRACT BETWEEN FSU AND THE VENDOR. ( It serves other functions too!) ( It serves other functions too!) As a binding contract with the vendor….. As a binding contract with the vendor…..

17. THE PURCHASE ORDER......... n May not be unilaterally cancelled or changed by FSU, once received and accepted by the vendor (EMarket order pricing CANNOT be changed at all!) n You may request that the order be cancelled, but the vendor may or may not agree. n Once accepted by the vendor, the vendor may not change the prices, terms, or conditions without our consent. n EMarket purchase orders cannot be cancelled due to quickness of arrival of items.

18. Cancelling an Order n FSU MAY still be obligated to pay all or part of the contracted amount for expenses incurred by the vendor (shipping/restocking fees) n Contact the Purchasing before initiating a cancellation, unless vendor has agreed to cancel n Provide complete details on OMNI comments or on Change Request form to cancel PO

19. Reduction of Blanket Purchase Orders Use n Blankets are being evaluated for elimination due to the invoicing issues n Only certain blanket purchase orders are being authorized at this time on a case-by- case basis. n If a department believes they need a blanket purchase order, a request to obtain a waiver must be sent to Purchasing for review. Contact Purchasing for more information.

20. Blanket Purchase Orders (Con’t.) n P-Card and the FSU EMarket are replacements to the old blanket purchase orders n These options cost less and provide more detail for evaluation of what FSU buys - Contact Nancy Milburn for details - Contact Nancy Milburn for details

21. SPECIFICATIONS………... Does Your Dog Speak English? The Importance of Complete and Accurate Specifications!

22. Specifications Required Department is responsible to spell out in complete detail all elements of the contract or all requirements for the commodity or service you need to include: Department is responsible to spell out in complete detail all elements of the contract or all requirements for the commodity or service you need to include:

23. Specifications (Con‘t.) n Technical Specifications (brand, make, model, description, accessories, etc.) n Performance Specifications (capabilities, tasks required, speed, accuracy, etc.) - for example: if you expect an LCD projector to be compatible with MAC and PC, you must include that info. - for example: if you expect an LCD projector to be compatible with MAC and PC, you must include that info.

24. Specifications (Con’t.)  Delivery Requirements (date item(s) must be received by, date of performance or training) - Must be realistic dates – cannot bid this week and deliver scientific equipment that must be manufactured and configured by next week - Must be realistic dates – cannot bid this week and deliver scientific equipment that must be manufactured and configured by next week  Shipping (who will pay, what type, where to deliver on or off campus)  Now let’s try some and see how we do……

25. Sample Specifications: Example 1: - Department requires a new computer for an employee - Department requires a new computer for an employee - Specifications sent: Desktop computer with Windows 2000 software, CPU, scanner, printer, etc. to be included - Specifications sent: Desktop computer with Windows 2000 software, CPU, scanner, printer, etc. to be included - What is wrong with these specs? - What is wrong with these specs?

26. Sample Specifications (Con’t.) Example 2: - Department requires misc. laboratory supplies - Department requires misc. laboratory supplies - Specifications sent: 12 glass sample slide plates, 24 glass test tubes, 12 glass vials, and 4 pairs of latex laboratory gloves - Specifications sent: 12 glass sample slide plates, 24 glass test tubes, 12 glass vials, and 4 pairs of latex laboratory gloves - What is missing from these specs? - What is missing from these specs?

27. Specifications (Con’t.) Example 3: - Department requires safety books for a class - Department requires safety books for a class - Specifications sent: 10 copies of Social Control of the Drinking Driver, ISBN 0226469549, written by Michael Laurence - Specifications sent: 10 copies of Social Control of the Drinking Driver, ISBN 0226469549, written by Michael Laurence - Is anything missing? - Is anything missing?

28. Once Again… who does what?…... n Department (requisitioner or end-user) specifies quality n Purchasing determines the price and source of the purchase.

29. Pricing Policies n Like items received on same day may be combined for pricing purposes n Average Processing Time for all orders is based on receipt of complete requisition with all information required n If requisition is incomplete and must be returned, will cause delays

30. Pricing Policies: n Department may submit quotes, but is NEVER required to do so n Purchasing may re-quote if better pricing possible n Note: Purchasing frequently receives better pricing than departments, even from the same vendor!

31. Up to $6,000 n Purchasing may use the vendor recommended by the department or another vendor n Average Processing Time: 24 hours or less.

32. $6,000 To $15,000 n Normally, Purchasing will obtain quotes n Must have complete and accurate specifications to avoid delays – may send requisition back for clarification n Average Processing Time: 1 to 4 days

33. $15,000 To $74,999 n Purchasing selects the competitive solicitation method best suited to the purchase n Departments need not obtain their own quotes. Submit the requisition to Purchasing with complete specifications. n Average Processing Time: 2 to 5 days (quotes) or see formal bid information.

34. $75,000 and up n Purchasing department must issue formal bid by law n Department submits requisition(s) to Purchasing with complete specifications. n If uncertain of the budget number, contact the purchasing agent to begin the bid process prior to requisition being submitted.

35. Over $50,000 n At $70,000 the bid will be advertised on the Internet, through the state of Florida’s Internet bid system. n Average Processing Time: Depending on specifications, between 15 to 60 days. Contact the purchasing agent to discuss actual bid timeframes. Longer for over $70,000 purchases.

36. Over $1 Million.. Special Handling Required n The University president must sign all purchase orders for $1,000,000 or more n Average Processing Time: Depends upon president’s schedule. Contact the purchasing agent for details. Allow extra time to obtain required signature

37. Flow Chart for Purchasing Identify a need Determine what will Satisfy the requirement Determine Type of Procurement Low Cost, Send to Purchasing Through OMNI High Cost, Send specs. To Purchasing To Quote, Bid, etc. PurchasingProcesses Purchase Order Purchasing processes Quote, bid, or Proposal as Required Vendor determined Upon completion Of competitive Solicitation Input OMNI req. This process can take from 1 day to several months. Be sure You allow time for Process.

38. Receiving Department n Manager:James Lee n Phone: 644-2750 n Call James with ANY questions or problems regarding the Receiving Department.

39. In Review…we covered n Purchasing Web site navigation n Department responsibilities and time lines, etc. n Specifications and purchasing limits

40. FSU Purchasing Department We’re here to assist you! Give us a call! 644-6850