Purchasing 101 James Chiang Sr. Purchasing Tech & Training Coordinator
Meet the Purchasing Staff Lane Nestman, Director
Claire Anderson, HUB Assistant
Carolyn Cross, Associate Director
James Chiang, Sr. Purch Tech/Training Coordinator
Christine East, Asst Dir – Contract Admin
Lacy McMillon, Purchasing Tech
Joe D’Andrea, Procurement Manager
Sallie Morris, Procurement Card Administrator
Xavier Velarde, Senior Buyer
Barry Sullenberger, Senior Buyer
James (JB) Bocks, Buyer
Debbie Hall, Sr. Administrative Assistant
Marlaina Cain, Sr. Administrative Assistant
Virgie Flores, Sr. Administrative Assistant
Overview • • • • • • • • •
Basic Legal Requirements Quotes, Bids & Request For Proposals (RFP) Historically Underutilized Business (HUB) Vendors Emergency & Proprietary Purchases Funding Sources Contracts ePro Procurement Cards Q&A
Basic Legal Requirements
A Quote to Remember… “Private sector buyers can do whatever is not prohibited by law, whereas public sector buyers can only do what is authorized by law.” UNTHSC is a State of Texas agency governed by Texas Government Code, Education Code and applicable state and federal statutes.
State of Texas Rules State of Texas employees involved in the procurement of goods and services have a responsibility to uphold Texas procurement laws and to serve the best interests of the state. This responsibility requires a thorough knowledge of the Tex. Gov’t Code, Title 10, Subtitle D and Texas Administrative Code (TAC), Title 34, Part 1 as well as the procedures in the State Procurement Manual.
Purchasing Code of Ethics • A state employee may not: – Participate in work on a contract if the employee, or member of their immediate family has an actual or potential financial interest in the contract. – Solicit or accept anything of value from an actual or potential vendor. – Be employed by, or agree to work for, a vendor or potential vendor. – Knowingly disclose confidential information for personal gain.
Compliance The Purchasing Department’s mission is to assist UNTHSC departments with making legal purchases. If you should have questions regarding compliance in this area, please contact: UNTHSC Compliance Office (817) 735-2029 [email protected]
Quotes, Bids and RFPs
Purchasing Department Responsibilities • Review expenditures & ensure compliance with federal and state statutes as well as institutional policies; • Assist departments with specifications, proprietary justifications & appropriate purchasing processes; • Competitively bid & award contracts for goods & services; • Vendor outreach & promotion of HUB program; • Assist departments in all aspects of procurement by offering customer service & training.
Responsibilities of Departments • Following proper purchasing procedures; • Submitting complete and accurate documentation with requisitions; • Monitoring vendor performance;
• Monitor expenditures; • Review the Purchasing internal site regularly; • Utilize Purchasing HelpDesk ([email protected]
or ext. 0403)
Purchasing Cycle 1. Requisition
3. Purchase Order
4. Place Order with Vendor
Getting Quotes - Department • After identifying a need, contact vendor of choice (preferably a HUB vendor) to obtain a quote for purchases under $5000. – Search State of Texas CMBL for HUB vendors • http://www.window.state.tx.us/procurement/cmbl/cmblhub.htm
– Identify yourself as an employee of UNTHSC • Let the vendor know we are Tax Exempt
– Ask for “our price” for the item(s) and/or service(s) required • Ask for the “delivered” price, if there are any additional fees or surcharges, etc.
– Make note of the person who provided the quote • Let the vendor know that this is only a quote and an official purchase order is required for an actual order OR use the P-Card for the purchase
Getting Quotes - Purchasing • Quotes are required on purchases of $5000 to $25,000. – Minimum of three (3) quotes, if available – At least two (2) HUB vendors must be contacted
• The Purchasing Department will obtain quotes when required. – Buyer must have a complete understanding of your needs and may contact requisitioning department for additional information.
• The estimated process for purchases in this dollar range from 4 – 7 days, depending on the complexity of the procurement.
Formal Bidding • For purchases over $25,000, formal bids must be solicited by the Purchasing Department. – The Purchasing Department will work with the requesting department to prepare specifications for the bid – Department should recommend vendors to invite to bid – The estimated time for completing a purchase in this dollar range is from 15 – 60 days, depending on the procurement START EARLY!!!!
Specifications • CONCISE • CLEAR • ACCURATE • COMPETITIVE • FLEXIBLE
Requesting the Purchase • A requisition is a request • You are now ready to initiate the purchase: – Create an ePro requisition – Complete P-Card transaction, keeping all required documentation
• For ePro requisitions (if P-Card is not an option): provide all required information – Electronically attach quotes, email, forms, etc. – Clearly note any special instructions (e.g. handling)
Additional Requirements Depending on funding source, dollar amount and type of good or service – additional State requirements may exist. • Contracted Workforce Form • Proprietary Justification • Membership Justification • Original receipts • Other justifications
“After-the-Fact” Orders NO INDIVIDUAL HAS THE AUTHORITY TO ENTER INTO PURCHASE CONTRACTS OR IN ANY WAY OBLIGATE FUNDS OF UNTHSC EXCEPT THE DIRECTOR OF PURCHASING, VP OF FINANCE, PRESIDENT OR CHANCELLOR. COMMITMENTS FOR MATERIALS OR SERVICES SHALL NOT BE MADE WITHOUT A PURCHASE ORDER (or other approved tool). The Health Science Center will assume NO liability for payment of obligations made in any other manner
Emergency and Proprietary Purchases
Definition of “Emergency” • The State of Texas defines an emergency purchase as a purchase that may be warranted to prevent an unforeseen hazard to life, health, safety, welfare, property or to avoid undue additional cost to the state • Requisitions for emergency purchases require justification documenting the nature and cause of the emergency
• Lack of planning does not qualify as an emergency
Definition of Proprietary • A proprietary product or service has a distinctive characteristic that is not shared by competing products or services • When the specification limits consideration to one manufacturer, product or service provider, a written Proprietary Justification must be included with the ePro requisition.
Definition of Proprietary (continued) Some common reasons for proprietary purchases are: – Items that are available from only one source because of patents, copyrights, secret processes, or natural monopolies; – Captive replacement parts for existing equipment; – Sole distributorships; – For continuity or consistency in research projects Departments are not required to justify their needs – but why a proprietary item or service is needed to meet those needs.
State Funds • Appropriated by the state • Dept. IDs include: 1000 – 49999 State Education, Research & General Funds 61000 – 61999 HEAF Funds 62000 – 62099 Permanent Health Funds 62200 – 62299 Tobacco Endowment Funds 8xxxx HEAF and local Plant Funds
Local Funds • Not appropriated • Dept. IDs include: 5xxxx 60xxx, 63000 – 69999
Auxiliary Funds Designated Funds (including UNT Health Funds)
70xxx – 75xxx, 77xxx
Gifts, Grants, Contracts or Dept. IDs beginning with a letter
Other Institutional Funds • Dept. IDs include: 76000 – 76999 78000 – 78999 90000 – 99999
Scholarships Loans Foundation Funds
• All funds must follow state guidelines except the ones listed above. • These institutional funds follow different guidelines.
What is a Contract? • A contract is an agreement between two parties that is legally binding and sets forth what each party has agreed to exchange • Only authorized individuals are allowed to sign contracts on behalf of UNTHSC: – – – –
Director of Purchasing VP of Finance President Chancellor
Types of Contracts • • • • • • • • • • •
PURCHASES CLINICAL TRIALS GRANTS LICENSES INTELLECTUAL PROPERTY LEASES PROFESSIONAL SERVICES UNT HEALTH CLINCIAL ACADEMIC AFFILIATION EVENT VENUES OTHER
Purchasing Contracts • Any contract that requires expenditures are referred to as Purchasing Contracts. – Must follow UNTHSC Contract Review and Routing Process – Requisition required – Purchase Order not issued until the contract is fully executed – Processing contracts takes the cooperation of many parties
Purchasing Contract Cycle 1. Department Review & Approval 7. Contract Execution & PO Award
2. Vendor Signature
6. Required Approvals
3. Routing Sheet
5. Purchasing Review
Steps for Purchasing Contracts • Initiating department reviews vendor-signed contract • Department forwards to Purchasing – Three (3) originals of the contracts – Purchasing Contract Routing Sheet – ePro requisition in the amount of the contract (per fiscal year)
• Purchasing determines if all requirements are met and routes the contract for required approvals • Once internal approvals are obtained: – One original contract is sent to the Office of General Counsel – One original contract is sent to the initiating department – One original contract is sent to the vendor with a purchase order
Contract Questions For questions, contact: Christine East Assistant Director of Contract Administration EAD 600 x2685 or [email protected]
Electronic Procurement (ePro) • Each department has one or more ePro Coordinators • Each Dept. ID or Project ID has an individual who is responsible for expenditures on that Dept. ID or Project ID • The Purchasing Department offers ePro training to all new coordinators and approvers • Visit the Purchasing Department intranet site for more information
ePro Help • For questions, contact: Lacy McMillon Purchasing Technician or James Chiang Sr. Purchasing Technician/Training Coordinator Email: [email protected]
Helpdesk: Ext. 0403
Procurement Cards (P-Card) The procurement card program is offered to help simplify your small dollar purchasing needs. Examples include: – – – – – –
Office supplies Registrations Research supplies Subscriptions Small office equipment Computer supplies
Procurement Card Questions For questions, contact: Sallie Morris Procurement Card Administrator EAD 600 x2679 or [email protected]
Visit the Purchasing intranet site for more information.
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