5.2 Purchasing And Contracting Procurement Policy

Policy: 5.2

Purchasing And Contracting Procurement Policy

Date of Policy Adoption: July 14, 2009

Revised Effective Date: July 14, 2009

Scope: All Employee Groups

Policy

Yavapai College’s Procurement Policies follow the rules and regulations of the State of Arizona. The Director of Procurement or appropriate departmental designee (referred to from this point as “Procurement Department”) will be responsible for the development of procurement procedures for all College funds. These procedures should be in sufficient detail to obtain all supplies, services and equipment at the lowest cost to the College consistent with the quantity, quality and availability of the items at the time of purchase. These procedures shall be in accordance with the Arizona Model Procurement Code and the Arizona Revised Statutes.

http://www.azspo.az.gov/

Procedure

5.2.0 Administrative Procedures for Procurement

5.2.0. A. Responsibilities and Objectives

1. The Procurement Department

A. The Procurement Department organizes and administers procurement services for all units of the College. In providing these services in accordance with sound business practices, the Procurement Department seeks to achieve the maximum value for every dollar expended.

B. To achieve this, the Procurement Department has the responsibility for the following:

1. Secure competitive bids or proposals whenever possible to obtain maximum value from the expenditures of College funds
2. Provide consistent updates of current contracted suppliers
3. Maintain liaison with vendors on behalf of the College
4. Coordinate the procurement of goods, equipment and services for all units of the College from responsible and responsive suppliers
5. Develop sources of supply to assure that the College has an adequate number of suppliers from which to obtain supplies, equipment and services
6. Final authority on selection of suppliers for all purchases
7. Review and approve all contracts, agreements, IGA’s etc. to confirm they are in the best interest of the College
8. Sign contracts and agreements on behalf of the college
9. Administer the Purchase Card Program
10. Conduct training for new liaisons and budget managers and host semiannual group training sessions
11. Offer updated Procurement Policies, guidelines, training materials and forms on the College’s Procurement web site. http://www.yc.edu/content/purchasing/default.htm
12. In accordance with the authority delegated to the Procurement Department all purchases, irrespective of the sources of funding, will be governed by the procedures outlined in this section.

2. Purchasing Liaisons

A. The Purchasing Liaison is the designated person responsible for small dollar purchases within each department.

B. The Procurement duties of a Purchasing Liaison include, but are not limited to the following:

1. Understand and follow all Procurement Policies and Procedures
2. Confirm that all college personnel in their respective departments also adhere to all policies and procedures
3. Be fiscally responsible with College funds
4. Attend all mandatory training sessions including all Banner Procurement training
5. Know what method should be used for each purchase (per quote/bid thresholds) such as purchase cards, check request forms or Banner requisitions
6. Utilize supply partners whenever possible
7. Complete requisitions on the Banner System with all required information send back-up documents to the Procurement Department to be included in Purchase Order file
8. Track electronic budget approvals for all requisitions (Budget Manager, VP, and President if required)
9. Complete the Purchase Card Monthly Transaction Detail Report on the JP Morgan Website and return all backup receipts and other documents to the Business Office on or before the 20th of the following month
10. Complete a Departmental Purchase Log to electronically submit to Procurement Department annually
11. Forward all contracts, agreements, IGA, MOU etc. to the Procurement Department with a completed CAF (contract authorization form) and any other required documentation

3. Budget Manager

A. The budget manager is responsible for the planning and the approving spending for a department’s budget. The Budget Manager does not have Procurement authority, but works with the purchasing liaison to approve budget spending.

B. It is the responsibility of budget managers to review and adhere to all Procurement policies and procedures and confirm that all college personnel in their respective departments also adhere to all policies and procedures.

C. It is the responsibility of the Budget Manager to approve all requisitions in the Banner System and manage all budget areas within their area of responsibility

4. Other Staff and Faculty

A. Other staff and faculty do not have Procurement authority, and must work with the department’s purchasing liaison to purchase equipment, goods or services.

5.2.0. B. Methods of Procurement

1. Purchase Card or Check Request

A. Purchasing Liaisons will be issued a purchase card (credit card) upon completion of liaison Procurement training. This card may be used to purchase items with a cost of up to $1000.00. Services cannot be paid via the purchase card but may be paid via a check request. A check request may also be used with those vendors that do not accept a purchase card for purchases under $1,000.00

B. Purchases or Travel over $1,000 may be paid by the A/P purchase card; purchases will be reviewed on a case by case basis. If there is an item that needs to be paid by Purchase Card and the item is over $1,000, bring completed and approved travel form to Business Office with all required information on whom to pay

2. Requisition/Purchase Order

A. All requests to purchase, over the purchase card/check request threshold, must be processed through the Procurement Department via a Banner requisition regardless of the sources of funds,

B. Budget Managers are allocated funds in their department budgets for a given period; this allocation is only an authority to request, not to purchase

C. Each unit is assigned an account number or numbers by Business Services. All requisitions must carry the complete number of the account to be charged (FOAP).

D. Requisitions are not to be submitted without sufficient funds to meet purchase obligations. Budget managers must approve all requisitions in the Banner system while confirming that they have funds within their area to cover all costs

E. Only the Procurement Department has the authority to obligate the College for purchased items in excess of the p-card amount; staff or faculty that obligate the College without proper authority may be held personally responsible for all amounts owing.

F. Additional approval may be required on some requisitions for specialized items; such approvals may be made via an e-mail to the buyer of record for the department:

1. Printing (except Business Cards, letterhead and envelopes) Advertising media and promotional services require prior approval from the Office of Public Information
2. Any item that will take up floor space, uses electricity office furniture require prior approval from Facilities
3. Telephones, computer software or hardware require prior approval from ITS
4. Photocopy Equipment require prior approval from Printing Services
5. Items purchased that may affect other Departments

G. A purchase order is completed in the Banner System using information from a requisition by the Procurement Department and sent to the supplier (terms and conditions are available on the YC purchasing website). Upon acceptance by the supplier the document becomes a contract to purchase. Only the Procurement Department is to assign a purchase order number to a requisition.

3. Selection of Vendors/Sources

A. Vendors are selected for their capability to serve the needs of the College in the most economical and efficient manner possible. Procurement will evaluate vendor performance and maintain pertinent records.

B. Departments are encouraged to suggest sources of supply for unusual items. Authority for the final selection of the vendor is the responsibility of the Procurement Department; decisions will be made that are in the best interest of the College.

Conflict of Interest

A. The College as a general rule does not purchase goods or services, or enter into any type of contract with students, faculty, staff or members of their immediate families. An acquisition from a business in which an employee has an interest is prohibited unless full disclosures of the background facts are presented in writing to the Procurement Department and quotes are received from two other vendors. Interest is deemed present if the employee and/or his or her spouse or un-emancipated minor children own ten percent or more of the assets of a business. Direct purchase by college staff or faculty from a company they have personal interest in is strictly prohibited.

5. Bids / Quotations/Proposals

A. Invitation for Bids/Quotations / Request for Proposals for purchases over $25,000.00: Competitive quotations, bids or request for proposals are solicited by the Procurement Department in accordance with procedural guidelines. This will only be done upon receipt of an approved requisition. The requisitioning unit is not to use multiple requisitions or multiple purchase card transactions to circumvent the bidding process.

B. Confidentiality of Quotations: Price quotations are given to the College in confidence and shall not be revealed to any other vendor or unauthorized person until after the contract is executed. College personnel will not provide pricing from one vendor to another to achieve better pricing from either. College personnel are not to discuss any aspect of the bid process with any vendor until after a contract is awarded; personnel will only speak to current vendors, who are part of the bid process, specifically about current work; Procurement will be notified of any such meeting in advance.

6. Sole Source Procurement

A. A situation created due to the inability to obtain competition which may result because only one vendor or supplier possesses the unique ability or capability to meet the particular requirement of the solicitation. The Procurement Department will enter into negotiations with sole source vendors to obtain the best pricing. The College requires justification (completed and approved sole source form) from the requisitioning unit to justify why this is the only source for the requirement.

B. Final responsibility in determining sole source rests with the Procurement Department; this decision may be based on the lack of competition, proprietary technology, copyright or a supplier’s unique capability. .

7. Single Source Procurement

A. A procurement decision whereby purchases are directed to one source because of standardization, warranty or other factors, even though other competitive sources may be available; this situation makes it impossible to obtain competitive bids. The Procurement Department will enter into negotiations with single source vendor to obtain the best pricing. The College requires documentation from the requisitioning unit to justify why the purchase is a single source.

B. Final responsibility in determining sole source rests with the Procurement Department.

8. Joint Purchasing and Purchasing Cooperatives

A. The Procurement Department is authorized to enter into purchase agreements with the State of Arizona, Cities, Counties, other public agencies, Colleges or Universities, and any Purchasing Cooperative which utilizes a competitive bid process for the purpose of joint bidding and /or utilizing any competitively bid contract. This method will meet all responsibilities for effective completive procurement. All College contracts may be utilized by these same agencies.

9. Emergency Orders

A. A purchase made due to an unexpected and urgent request where health and safety or the conservation of public resources is at risk. Usually formal competitive bidding procedures are waived. Emergency orders must be kept to a minimum. Failure to anticipate a need is not, of itself, considered a bona fide emergency.

10. Personal Orders

A. The Procurement Department cannot issue purchase orders for personal purchases. Vendors are under no obligation to offer discounts to individuals, and do so with the understanding that their offer places the College Procurement Office under no obligation to do business with them except within strict business practices.

11. Unauthorized Purchases

A. Purchases and or contracts that are in violation of the District’s Procurement Procedures are considered serious offences and will be dealt with per established procedures.

12. Misuse of Purchase Card

A. Utilizing the purchase card for unauthorized items, services or to circumvent the Procurement procedures is a violation of the current procedures and will be dealt with in accordance to established procedures including up to termination.

5.2.0. C Contracts

(includes agreements, lease/lease purchase, rental agreement, statement of services, independent contractor/consultant, IGA, MOU, facilities use agreements)

1. Contracts

A. All contracts, regardless of type, for the procurement of goods, services or equipment must be reviewed by a member of the Procurement Department and approved by the Vice President or designee. All contracts must be submitted with a completed CAF. Forms must be reviewed and approved by the budget manager, Vice President, Director of other effected department and Procurement Department. The Procurement Department shall be the holder of all contract documents.

2. Sales Agreements

A. It is in the best interest of the College to refrain from signing supplier sales agreements. If a supplier requires that a sales document be signed, the Procurement Department will sign on behalf of the College only after a properly executed requisition and a Contract Authorization Form (CAF) are received. A copy of the agreement will be retained in the Procurement Department.

3. Service Contracts

A. Certain items of equipment are covered by service contracts in order to assure continuing efficient operation. Forms required by service companies must be reviewed and approved on behalf of the College by the Procurement Representative and forwarded to the company. A CAF must accompany contract.

4. Independent Consultant/Statement of Services

A. All agreements with consultants, presenters or performers require a contract, a W9, an Independent Contractor Status Verification Form as well as a CAF and method of payment (check request or requisition).

5.2.0. D Additional Information

1. Insurance Requirements by both parties

A. Prior to the commencement of any work or services for the College, evidence of appropriate insurance coverage must be submitted by the vendor to the Procurement Department. The College will not provide insurance coverage to any party without a fully executed contract.

2. Government Surplus

A. The College shall follow Arizona State Statute 41-2602 when disposing of all College equipment.

3. Sales Representatives, Demonstrations and Sample Materials

A. College personnel who have direct contact with sales representatives are reminded that they are representing the College and to conduct business in a professional manner. They are not to verbally authorize any procurement and are to advise the prospective vendor that a purchase order will be issued by the authorized Procurement representative should a procurement decision be made. College personnel will not provide pricing from one vendor to another to achieve better pricing from either.

B. College personnel who would like to invite vendors for on-site visits or request samples or on-site demonstrations must contact the Procurement Department in advance for assistance. Vendors are to provide proof of insurance coverage for any equipment and/or material left at the College.

4. Gifts and Gratuities

A. College personnel will not accept personal gifts or gratuities, with a cost of over $25.00 from any potential supplier of goods, services or equipment. College personnel who hold a position of influence on vendor choice will not accept gifts or gratuities from a submitting vendor during the bid process or before contract is fully executed. Vendors will be disqualified and College personnel will be reported to the Vice President.

5.2.1 Normal Procurement Procedures

1. Requisition

A. Requisition is completed in Banner by the department’s purchasing liaison including adequate description of goods requested, actual or estimated cost including tax and shipping, possible supplier sources, date required, budget information for payment and department name and location for delivery; all required backup is forwarded to the Procurement Department with the requisition number clearly shown

B. Requisition is electronically transmitted to budget manager for approval and continues through the budget approval process until approved by all required parties

C. Requisition is transmitted to Procurement Department electronically who reviews all information, reviews backup submitted by Liaison, confers with suggested vendor and creates and issues a purchase order to purchase based on best value for the college

D. Order is delivered to Central Receiving Department or designee (referred to from here on as Receiving), verified against purchase order, received on Banner and delivered to the department by Receiving. Department checks and accepts goods.

E. Invoice is received by Accounts Payable, checked against Receiving and Procurement documents; if all documents match a check is created and mailed to supplier.

5.2.2 Emergency Procurement Procedure

A. Purchasing liaison in the requesting department may call the Procurement Department and request an authorization to purchase; they must state the nature of the emergency, the vendor’s name and address and the actual or estimated cost.

B. A confirming requisition must be completed within three business days of the emergency request following all other Procurement procedures.

5.2.3 Bookstore Purchases

A. The Bookstore will keep all liaison purchase card numbers on file

B. Bookstore bills the p-cards when items are purchased

5.2.4 This title has been repealed (Printing, Publishing and Broadcast Advertising)

5.2.5 This title has been repealed (Library Purchasing Procedures)

5.2.6 Clarification of Purchasing Procedures

A. All purchases of goods and/or services are to be via the purchase requisition process unless under the p-card/check request amount.

B. Budget Managers and designated administrators are responsible through their Vice President for maintaining budget integrity

C. Vice Presidents, designated administrators and Budget Managers are responsible for approving/disapproving budget requests within their areas consistent with overall guidelines established by the President.

D. A purchase requisition denotes suggested vendors only; the Procurement Department has the authority to obligate the College for purchased items.

E. "Confirming Purchase Orders" are to be used for emergency purchases only.

F. The role of the Procurement Department is not to approve or disapprove a purchase - that is the role of the Budget Manager, Vice President or designated administrator; it is to expedite the purchasing process through the best sources and at the best prices consistent with quality, delivery, service and any local vendor performances that may occur.

G. Approved purchases which may exceed $25,000 could require up to (30) thirty-days to process through bidding procedures prior to issuance of a purchase order.

H. Dollar cost amounts are intended to be the total purchase requisition, rather than individual items.

I. All purchases in excess of $10,000 require budget approval from the President or his designee.