Transcript Slide 1

Purchasing Rules &
Regulations
Overview of OUS & UO
Purchasing & Contracting Rules,
Regulations and Policies
Presented by:
Greg Shabram & Rachael Wolfgang
Purchasing Rules &
Regulations
This training is required to obtain
and exercise Level 1 and Level 2
Signature Authority
UO Purchasing & Contracting
Policy
• Based on Oregon University System
Oregon Administrative Rules (“OAR(s)”)
• Designed to provide solid purchasing
guidelines and provide greater flexibility as
afforded by the OUS rules for departments
engaged in purchasing and contracting
• Effective October 1, 2009
• Approved Forms Use Required Oct 5th
Oregon Administrative Rules
• Chapter 580 – Divisions 61 & 62
• OUS Code of Ethics
– Annual Statement
– Procurement Evaluation Declaration
• Participation in Competitive Procurement
– Family Members
– OUS Employees & Former Employees
– Gifts from Vendors
PCS Policy Page 1
Fundamental Concepts
• Ethics Requirements – OAR 580-061-0000
• Conflicts of Interest
– Family Relationships & Employment Conflicts of
Interest
• Gifts
• Internal Controls
– Fraud Factors
– Segregation of Duties
– Management Review
5
OUS Code of Ethics
https://casitweb.uoregon.edu/pcsforms/code-of-ethics
PCS Policy Page 1
OUS Procurement Evaluation
Declaration of No Conflict of Interest
http://pcs.uoregon.edu/pcs_files/OUS_Procurement_Evaluation_Declaration.pdf
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Conflicts of Interest
• ORS 244.040(1) – Prohibits an UO employee from using
employee’s position to obtain personal financial gain for the
employee or a relative if the personal financial gain would not
otherwise be available for UO employee’s position.
• ORS 244.120 – Concerns handling actual and potential conflicts
of interest. An “actual conflict of interest” means any action,
decision, or recommendation by an UO employee while acting
in the capacity as an UO employee which would be to the
private pecuniary benefit of that employee or that employee’s
relative. A “potential conflict of interest” means any action,
decision, or recommendation by an UO employee while acting
in the capacity as an UO employee which could be to the
private pecuniary benefit of that employee or that employee’s
relative.
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Family Relationships and
Employment
• OAR 580-22-0055(2) – No academic staff member,
without permission of the immediate supervisor, shall
participate in employment decisions, supervision or
grievance adjustment concerning or involving the
staff member’s spouse, child or stepchild.
• OAR 571-004-0005(1)(b) – No members of the faculty
or administration shall participate in making
recommendations or decisions involving
employment, compensation, promotion, leave of
absence, grievance adjustment, termination, or in the
supervision of their relatives without prior permission
of their immediate supervisor.
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Ethics Rules
• Possible to violate the law not just by
receiving something of financial value
but also by giving or providing
something of financial value to a
public official.
• The civil penalties for non-compliance
are substantial, and the individual is
personally liable for such penalties.
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Gifts
– During a calendar year, a University
employee or a relative or member of the
household of the employee may not
solicit or receive, directly or indirectly,
any gift or gifts with an aggregate value in
excess of $50 from any single source
that could reasonably be known to have
legislative or administrative interest in
the University.
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Activity 1
Class Materials Purchase
• Department X is purchasing curriculum
materials required for a specific class at
value of $500.
• The vendor set-up process reveals that
the owner of the company is a current UO
employee.
• Can UO purchase from this vendor?
Would the result be different if this vendor
was also teaching a workshop?
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Internal Controls
• More than one person involved in
purchase transaction
• Determine applicable policies &
procedures
• Consult staff/campus for advice
• Collect maintain documentation
• Staff Training
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Fraud Triangle
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Opportunity
• Access to funds
• Access to inventory
• Ability to process transactions
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Factors Contributing to Fraud
Occurring (2010 ACFE Report)
• Lack of internal controls
• Override of existing controls
• Lack of management review
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Segregation of Duties
• Department Purchasing Profile
• Examples of Duties:
– Commit Funds
– Approve Purchases
– Receive Goods/Services
– Process Invoice Payment
– Approve Invoices
– Management Review
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Importance of Management Review
• Perception of detection is directly
correlated to the occurrence of
occupational fraud.
• Management plays a key role in the
perception level of any operation they are
over.
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Authorities
Authority to Commit
Department Funds
(to allow use of budget funds)
vs.
Signature Authority
(enter into a written or oral contract)
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Authority to Commit
Departmental Funds
Authority to internally allow
use of department funds
(i.e. who allows the purchase within
your department – not who actually
makes the purchase.)
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Authority to Commit
Departmental Funds, Cont.
• Authority designated from Budget
Authority (Dean, Director or
Department Head)
• Part of Internal Controls
• No PCS required training
• NOT signature authority or
authority to enter into a contract.
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Authority to Commit
Departmental Funds, Cont.
– Examples of Authority to Commit
Funds
• Department director approves a staff
member to spend $1,500 in dept funds
for the purchase a laptop computer
• Department director approves a staff
member to submit a hotel agreement
for the department’s upcoming seminar
to PCS for processing and approval
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Authorities
Designation to Commit Funds
UO President
Budget Authority’s Supervisor
Budget Authority
Department Staff
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Signature
Authority
Authority to enter into an
oral or written contract on
behalf of UO
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Signature
Authority, cont.
– Examples of Contracts
• Proposals/Quotes/Estimates/Letter
Agreements submitted to UO by a
contractor for official acceptance
• Contracts/Agreements/MOU
• Purchase Orders
• Personal Services Agreements (PSC)
• Phone & Internet Orders
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Authorities
UO Contract Officers
Chain of Delegation
– UO Contract Signature Authority
Delegated to Contract Officers
by UO’s VP of Finance and
Administration
– August 30, 2012 Memorandum
regarding Delegation of Signature
Authority
https://pcs.uoregon.edu/content/commitment-funds-and-delegated-signatureauthority
State Board
Authorities
Level 1 and Level 2 Signature Authority
– Delegated by PCS Director
• Level 1 Signature Authority
– Less than or equal to $5,000
– Purchase Order, Direct Billing
Invoice
– Must use Approved PO Form
• Level 2 Signature Authority
– Less than or equal to $25,000
– Approved level 2 contract
forms
Delegated
Department
Personnel
Delegated
Department
Personnel
Delegated
Department
Personnel
PCS Policy Page 14-17
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UO Department Approval
Authorization
Obtain by completing
the Department Approval
Authorization Form
Available online at:
https://casitweb.uoregon.edu/pcsforms/
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Activity 2
Software Renewal
• Department X receives a renewal notice and
contract amendment from the vendor to renew
the software they use for managing their
projects.
• The original purchase was $15,000, the renewal
amendment gives them the option to renew for
an additional 3 years at $5,000/year.
• The Director of Department X tells the Project
Manager he approves the 3 year renewal.
• The Project Manager has Level 2 Signature
Authority.
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UO Purchasing & Contracting
Responsibilities
Programmatic Review
Budgetary Review
Compliance Review
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UO Purchasing & Contracting
Responsibilities
• Programmatic Review
– Does the purchase have a business purpose
that relates to department’s objectives and
supports UO’s mission?
– Review and confirmation is the primary
responsibility of Department’s Budget Authority
and their designees.
PCS Policy Page 2
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University Purchasing &
Contracting Responsibilities
• Budgetary Review
– Are funds available for purchase?
– Budgetary review is the primary responsibility of
the Department’s Budget Authority and their
designees.
– Departments must ensure funds are available
and properly budgeted prior to making any
purchasing commitment.
PCS Policy Page 2
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UO Purchasing & Contracting
Responsibilities
• Compliance Review
– Proposed purchase or contract meets all
applicable laws, regulations, policies,
procedural requirements and that the purchase
or contract is completed using good business
practices.
– Compliance review and confirmation is a shared
responsibility of PCS and a Department’s
Budget Authority and their designees.
PCS Policy Page 2
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Policies
• Qualified Rehabilitation Facilities (QRF)
• Minority, Women Owned, Emerging Small Business
(MWESB)
• Printing and Mailing
• Catering
• Confidential Recycling
• Property Control
– Surplus Property Disposal
– High Risk Equipment Tracking
• Public Records
PCS Policy Page 2
Internal Approvals
• See Approvals List
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–
–
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–
–
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Sponsored Projects Services (SPS (formerly ORSA))
Information Technology (CIO Approval)
Business Affairs Office
Furniture Purchases
Design and Editing Services
Marketing and Brand Management
UO General Counsel Review
– Only secured by PCS
PCS Policy Page 16
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Activity 3
Temporary Services
• Department X needs to hire or obtain
temporary services for a two week project.
• Temps, Inc. provides temporary workers with
hourly rates of $13/hour.
• Temps-r-Us, Ltd., a Qualified Rehabilitation
Facility (QRF), provides temporary workers with
hourly rates of $14/hour.
• Which vendor will Department X need to work
with to hire the temporary worker?
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What Dollar Level Requires a
Written Contract?
• Personal Services – ANY $ amount
– Personal Services are services requiring specialized
skills, knowledge, and resources. Examples include:
physician, consultant, artist, etc.
– Personal Services Contract template appropriate
• Goods and Trade Services - $5,000+
– Trade services generally do not require specialized skill
and certification. Examples include: janitor, photocopier
maintenance, etc.
– Purchase Order template appropriate
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UO Purchasing Methods
•
•
•
•
•
•
Invoice – under $5k
Direct Billing Account – under $5k
Purchase Order – required over $5k
UO Custom Contracts
UO Contract Forms
Vendor Contracts
PCS Policy Page 4-5
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Procurement Thresholds
• Direct Procurement
≤ $25,000
• Informal Procurement
$25,000.01 to $150,000
• Formal Procurement
$150,000.01 +
• Alternative Procurement
PCS Policy Page 4-12
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When Competition
is not Required
• Price Agreements: When competitive
requirements have been fulfilled & the
contract is open for UO to use.
– State of Oregon Contracts - ORPIN
– Other Public Entity Price Agreements
– Retainer Contracts
– Cooperative Agreements
PCS Policy Pages 7, 8
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When Competition
is not Required, Cont.
• Emergency Contracts
• Sole Source
• Special Entity
Note: PCS review and approval of ANY Emergency or
Sole Source contract is required before proceeding with
procurement.
PCS Policy Pages 9, 10
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When Competition
is not Required, Cont.
• Exemptions from Competition
– Department internally reviews and determines
if an exemption applies and if using the
exemption is in the best interest of the
department and UO
– PCS available for assistance and support
– PCS review and approval of exemptions
required before proceeding with procurement
PCS Policy Pages 10-12
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Activity 4
Computer Purchase
• Department X is purchasing 20 computers
for an estimated value of $1,500 per
computer.
• What considerations or steps need to be
taken when proceeding with this
procurement.
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Activity 5
Subscription Purchase
• Department X is excited as they are
purchasing enterprise-wide software
including hiring a consultant to customize,
install and deploy the software in the
amount of $300,000. The department just
learned that there is an exemption from
competition for software purchases.
• What approvals are required to complete
the purchase?
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Required Records
–
–
–
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Minimum specifications
All award criteria
Solicitation documents
Documentation of
advertisement
– Vendor communications
– Vendor quotes
– Copy of purchase
document
– Documentation of all
required approvals
– Documentation of
purchase completion
– Documentation of
purchase payment
– Notes page to document
vendor performance or
department satisfaction
PCS Policy Page 6 & 7
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Required Records, cont.
–Individual departments are the
department of record for
purchasing and contracting
transactions
–UO Archives Record Retention
Schedule
http://libweb.uoregon.edu/records/schedule/sections.html
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Activity 6
Public Records Request
• 3 year contract for hiring temporary personnel
is expiring.
• A potential vendor has submitted a public
records request to the Public Records Office to
obtain copies of the documentation for the prior
solicitation and all records related to the
current contract.
• The Public Records Office has requested
these records. What is your role in responding
to the request from the Public Records Office?
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Activity 7
Parent’s Guide
Department X would like to have “The Copy
Store” print and distribute a guide that will be
mailed to parent’s of potential students.
• 10,000 guides will be printed and mailed
• The cost to print each guide is $10
• The cost to mail each guide is $5
What are the steps and approvals needed for
this purchase?
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Activity 8
Hosting Conference
• Director of Department X tells his assistant
they will be hosting a conference at the
Red Lion and lunch will be covered as part
of the conference.
• The Director asks the assistant, who has
Level 2 Signature Authority, to place the
reservation and confirm attendance.
• The Red Lion sends over a letter with the
menu and attendance confirmation to be
signed.
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Activity 9
Consultant Purchase
• Department X is hiring a consultant to
analyze data generated via a campus
survey and is funded with grant $’s. The
contract may exceed $35,000 for year one
and they would like to have the option for
two additional years.
• A firm was named in the grant to perform
this work.
• Is competition required? If no, why not? If
yes, what type?
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•
•
•
Tools & Support
Policy
Practitioners Guide
Training
Templates
Written Procedures and Instructions
Website
Direct assistance from PCS Staff via phone, email and
in-person meetings; and
• Central Emails:
– [email protected]
– [email protected]
– [email protected]
– [email protected]
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Questions
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