Transcript Slide 1

University of Nebraska–Lincoln
Procurement Services
What You Need to Know
About the
Procurement Process
http://purchasing.unl.edu
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Welcome
This will cover the basics of procurement:
•
An overview of Procurement Service’s role
and responsibilities
•
Effect of new policy changes on departments
•
Requirements for departments
If you have any questions about the purchasing
process, please call us.
Procurement Services
472-2126
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Purchasing Thresholds
New Limits
Board approval required
$400,000+
Sealed bids required
Includes written specifications,
formal vendor bids, bidding
timelines and deadlines.
$150,000+
Informal bid process
by UNL Procurement Services
Verbal or written quotations
conducted by UNL Procurement
Services required.
$25,000 $149,999
Informal bid process by
requesting unit
Verbal or written quotations
conducted by requesting unit
$5,000 $24,999
No bids required
Department option.
Less than
$5,000
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Board of Regents
Policies & Procedures
As a public institution, UNL’s day to day business
operations follow the policies and procedures
outlined by the Board of Regents. UNL’s
purchasing activity must pass numerous audits and
reviews, and therefore, must be conducted in an
organized and business like manner.
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Procurement Svcs Duties
and Responsibilities
Insuring compliance with and enforcing the Board of
Regents purchasing policies and procedures
Applying and enforcing standards and specifications
Obtaining maximum value for each dollar of
expenditure
Granting all vendors/suppliers fair and equal
consideration
Promoting fair, ethical and legal trade/business
practices generally following the Uniform Commercial
Code
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Types of Procurement
 On Campus Stock Purchases
 Contract Procurement/Purchases
 Competitive Sealed Bids and Request for
Proposals (RFP)
 Departmental Purchases
 Sole Source
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On Campus Stock Purchases
Requisitions for stock purchases may be sent through
SAP, campus mail, faxed, or hand carried to the
designated UNL Department.
Information Services/Computer Sales –
maintains an inventory of computers and computer
related items.
Printing and Copy Services – makes name
plates, signage and does printing and copy services.
University Bookstore – located in the Nebraska
Unions
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Contract Procurement
 A contract established by Procurement Services for
commonly used items or services.
 Awarded to lowest responsive bidder and/or
negotiated.
• Lowest responsive bidder: One who has submitted
a bid or proposal which conforms in all material
aspects to the bid request and has the capability
to perform all requirements in a manner which will
assure reliability and good performance in
addition to the offered price.
 Prime Vendor Contracts
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Competitive Sealed
Bids/Request for Proposals
 Used when estimated cost exceeds $150,000
 Solicited for a minimum of 15 days
 Publicly opened at a specified opening time and
date
 Awarded to the lowest responsive bidder
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Competitive Sealed
Bids/Request for Proposals
 Purchases between $250,000 and $399,999 must
be reported to the Board of Regents at the next
Board meeting by the Vice Chancellor for Business
and Finance.
 Before commitment of funds, purchases
exceeding $400,000 must be submitted as a
formal agenda item to the Board of Regents for
their approval at the next scheduled meeting.
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Competitive Sealed
Bids/Request for Proposals
Time frames on purchases requiring Board approval:
 Agenda/Report Items must be received by the
Vice Chancellor for Business & Finance
approximately 30 days prior to any scheduled
Board Meeting.
 Other time factors:
• Bid preparation
• Solicited for 15 days (minimum)
• The bidding/evaluation/selection/ approval
process can take 45-120 days.
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Competitive Sealed
Bids/Request for Proposals
The approval process may involve any or all of
these levels:
 Reporting Vice Chancellor
 Vice Chancellor for Business & Finance
 Chancellor
 Vice President for Business & Finance - Central
Administration
 University Legal Counsel
 President of the University
 The Board of Regents
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Departmental Purchases
Departmental purchases authorized by the
University directly from the vendor
Examples:
 Procurement Cards ($0 - $4,999)
 Framework Orders
 Informal Competitive Bids
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Informal Competitive Bids
by Departments
 Strongly suggested for purchases
greater than $5,000 and less than
$24,999.
 Total dollars spent is total of entire
order, not per item.
 Obtain vendor pricing.
 Award is made to the lowest
responsive vendor.
 Documented and filed.
 Quotes attached to
purchase order in SAP.
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Request for
Quotation (RFQ)
 Request for Quotation and UNL Standard Terms
and Conditions can be found in SAPPHIRE under
“Business Forms”.
 The UNL Standard Terms and Conditions should
be included with your Request for Quotation.
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What to Do
Departments are responsible for purchases from
$0 - $24,999.
Identify potential vendors/suppliers.
Provide written specifications.
Select a date for suppliers to submit pricing and
allow them adequate time to respond.
Request written confirmation of quote.
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What Not to Do
 Don’t make specifications brand or company
specific (possibly limiting competition). Be receptive
to equals/alternates.
 Don’t change specifications without notifying all
potential suppliers.
 Don’t do “Auction Pricing” – i.e., don’t use one
vendor’s pricing to leverage additional price
concessions from their competitor(s).
 No pyramiding – multiple purchases/same item
 Restricted Items for Purchase Orders can be found
under Procurement Service’s Policies and
Procedures
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Signature Authority
 With the new levels of signature authority,
campus department heads have authority to
sign professional services contracts (excluding
Architects, Engineers, Landscape Architects or
Land Surveyors) for $1 – $4,999, not exceeding
1 year.
 Use a “Contract Template for Individual” or
“Contract Template for Company” consulting
agreement form which can be found in
SAPPHIRE under “Business Forms”.
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Single/Sole
Source Purchases
 Any purchase made from only a single
contractor or vendor without competitive
bidding.
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Single/Sole
Source Purchases
 Single/Sole source purchases up to $24,999 are
to be approved by Dean, Director or Department
Chair.
 Keep copies in your files (3 years plus current
year and grants for the life of the grant plus 3
years).
 Single/Sole Source Justification form can be
found in SAPPHIRE under “Business Forms.”
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Requirements in
Dealing with Vendors
 Plan ahead. Be realistic as to the expected
delivery date.
 If assistance is needed in locating vendors and
developing a procurement plan, please contact
Procurement Services (472-2126).
 Contact more than one vendor (strongly suggest
three) and retain pricing, terms, etc., and related
contact information in departmental files.
 Provide the same information and specifications
to all vendors.
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Requirements in
Dealing with Vendors
 Investigate all costs and aspects of product usage
(maintenance, supplies, guarantees, warranty
coverages, etc.).
 NEVER accept gratuities of any kind from vendors.
 Beware of vendor created crisis – “Price goes up
after the first of the month,” or unrealistically low
prices if we act immediately, etc.
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Requirements in
Dealing with Vendors
 Beware of solicitations via phone calls, emails...
 Maintain all documentation (written, email, etc.)
 Give primary consideration to the objectives and
policies of our institution.
 All information relating to the procurement
process is subject to public review.
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Requirements in
Dealing with Vendors
 Conduct all business transactions in good faith.
 Obtain prior consent of vendor before using
designs, ideas, or drawings.
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When Contacting a Vendor
 Get the name of the person taking your order.
 Give them relevant contact information (name,
delivery address, phone, email, etc.)
 Items to be purchased and specifications
(catalog #, unit size, quantity, etc.)
 Get unit cost of each item, shipping costs,
payment terms and expected delivery date.
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When Contacting a Vendor
 Are there any special shipping and delivery
instructions (regular, 1 day, 2 day, special
packing, etc.)?
 Does the vendor require a copy of the purchase
order? (If yes, please secure the vendor’s
mailing address or fax #).
 Once a purchase order is created, Procurement
Services will release the order. A purchase order
is a binding contract.
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When Contacting a Vendor
Your billing and delivery address:
University of Nebraska-Lincoln
Name of Your Department
Attn: Departmental Contact
Room # and Name of Building
City, State and Zip Code
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Keep in Mind
 A purchase order must be created for all equipment
exceeding $5,000 to meet State guidelines.
 Construction/renovation projects must involve Facilities
Management and Planning.
 Certificate of Insurance - always forward a copy to
Procurement Services to include in database – for a list
of current vendors go to http://purchasing.unl.edu
under “Vendor Certificate of Insurance”
 Performance Bond Requirements
 Conflict of Interest
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Certificates of Insurance
*Whenever a Contractor, Vendor, Supplier,
Consultant, or Engineer comes onto
University property we need to be
concerned about insurance coverage
regardless of the cost of the goods or
services being provided.
* At a minimum we require $1,000,000
General Liability Insurance.
*The Board of Regents of the
University of Nebraska MUST
be named an additional insured.
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Performance Bonds
 Labor and Material performance bonds are
required on any construction project
exceeding $15,000.
 Liens -- cannot be filed on University
property, thus the reason for Labor and
Material performance bonds.
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Conflicts of Interest
Board Policy 6.2.1 states:
 Section 11:
•Financial or beneficial personal interest
forbidden: gifts and rebates prohibited.
 Section 12:
•Purchase involving University personnel:
purchases for personal use are
prohibited.
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Section 11.a
No officer or employee of the University involved in an advisory or
decision-making capacity relating to any University purchase and no
member of his or her other immediate family shall be financially
interested, or have any beneficial personal interest, either directly or
indirectly, in such a purchase, or in any bidder, contractor, lessor or
vendor for such purchase. No such officer or employee or
member of his or her family shall receive or accept, either
directly or indirectly, by rebate, gift or otherwise, any money
or other thing of value whatsoever, or any promise, obligation
or contract for future reward or compensation from any
person, firm, corporation or other entity which has submitted
or intends to submit a bid or proposal in connection with any
University purchase or which has otherwise been contacted by the
University relating to a proposed University purchase.
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Section 12.a
No article or service shall be purchased from any
University faculty or staff member without prior
approval by the Principal Business Officer, and
any such purchase approved by the Principal
Business Officer shall comply fully with the
requirements of the conflict of interest provisions
of the Nebraska Political Accountability and
Disclosure Act.
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Section 12.b
University funds shall not be expended for
articles or services which are for personal use of
staff or faculty members.
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Special Circumstances
 Radioactive and Hazardous Materials
 Lab Animals
 Firearms and Ammunitions
 Vehicles
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Radioactive and
Hazardous Materials
You must contact Environmental Health & Safety
for purchase or removal of radioactive materials
and/or radiation producing devices.
Environmental Health & Safety
3630 East Campus Loop
402-472-4925
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Laboratory Animals
All requests for the purchase of laboratory
animals must be sent to the Animal Care
Program, 110 Mussehl Hall, or fax to 472-5887,
for approval before Procurement Services will
process the requisition/order.
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Firearms and Ammunitions
Contact Procurement Services
472-2126
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Purchase of Vehicles
 Transportation Services is responsible for the
procurement, licensing, titling, ownership, and
assignment of all vehicles owned by the
University of Nebraska-Lincoln.
 Only certain vehicle types may be purchased by
Departments.
 For questions concerning motor vehicles contact
Transportation Services, 472-2422.
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Definitions
 Purchase Order: A purchase order is a legal
document used by the University which authorizes a
supplier to provide a product or service to the
institution.
 Solicitation: The process of notifying vendors/
suppliers that the University wishes to receive bids or
proposals on a set of requirements. Solicitation may
include public advertising, the mailing of Sealed Bids
or RFQ's, letters inviting offers, and telephone calls to
prospective vendors/suppliers.
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Definitions
 Offer: Technically, an offer is an "act of one person that
gives another person the legal power to create a
contract to which both of them are parties." In practice,
the bid or proposal submitted by a supplier is an offer.
Sealed Bids and Request for Quotations (RFQ’s) solicit
offers. Acceptance of these creates a contract.
 Lowest Responsive and Responsible Bidder: One
who has submitted a bid or proposal which conforms in
all material aspects to the bid request and has the
capability to perform all requirements in a manner
which will assure reliability and good performance in
addition to the offered price.
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Call Us
For any questions regarding the purchasing
process, please call:
Procurement Services
402-472-2126
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University of Nebraska–Lincoln