PROCUREMENTMETHODS OF PURCHASING ANDCOMMON MISTAKES & ERRORS

METHODS OF PURCHASINGCheck RequestsPurchasing Card (P-Card)Purchase Requests

CHECK REQUESTS General Rule: A check request is a charge commitment. Purchases under check requests are limited. Failure to follow procedure results in an unauthorized purchase. The person who made the purchase or who directed that it be made, may be personally liable to pay the cost and settle the matter with the supplier.

CHECK REQUESTSUNLIMITED DOLLAR AMOUNTSPostage, postage meters Utility paymentsPayments for travel, registration feesFreight chargesMemberships, dues, participation fees associated with memberships and subscription charges stemming from membershipFor other allowable areas see Procurement Procedures: Check Request

CHECK REQUESTSLIMITED TO TOTAL COST LESS THAN $5,000AdvertisingBooks and subscriptions price support must accompany check requestMailing lists and mailing services including collating, packaging and sortingRepairs to equipment less than $5,000. Must involve billable labor.Laboratory/Chemical Analysis

CHECK REQUESTSLIMITED TO TOTAL COST LESS THAN $5,000Demurrage chargesConsulting Services Personal Services

See Procurement Procedures: Check Requests for complete list

CONSULTING SERVICESDefinition Services which involve the rendering of advice onlyUnder $5,000 can handle via check request$5,000 and over handle via purchase request Always use the standard consulting agreement available on administrative forms website www.busfin.uga.edu/formsNote: If a vendor is paid as a consultant, the vendor can not bid on any resulting purchaseAgreements should address fees for services and reimbursable expenses separately. Object code for services is 75113 and reimbursable expenses are 75210

PERSONAL SERVICESPersonal Services may include training and instructional services, graphic design, etc.Use the consulting services agreement until such time as a personal services agreement is availableSubmit to Procurement with purchase request and sole source justification if $5,000 or above

CHECK REQUESTSCOMMON MISTAKES AND ERRORSPurchase Construction ServicesPurchase Consulting Services of $5,000+Purchase Printing ServicesPurchase Supplies Non-inventoried equipmentRepairs that do not involve billable laborPurchase Software

CHECK REQUESTSCOMMON MISTAKES AND ERRORSServices confusion between unlimited and limited to $5,000No WCD approval or failure to show WCD approval number on the check request when paying monthly services (WCD = Wireless Communication Device)

PURCHASING CARD

PURCHASING CARDKnown as P-CardIt is a VISA card issued in an individuals name.Obtain one by submitting P-Card Request Form available at www.busfin.uga.edu/formsMust attend a mandatory training session$4,999 is maximum single transaction limitCan not purchase inventoried equipmentBenefits:Vendors realize faster paymentEnd user realizes more timely delivery

PURCHASING CARDINVENTORIED EQUIPMENTAny item which meets the followingIs basically nonconsumable and nonexpendable in nature; Any item with an estimated usable life expectancy of 3 or more years and an item acquisition cost of $3,000 or more; or,Any item or items which the agency feels should be included in personal property inventory even though it fails to meet the above criteria

The following are inventoried regardless of cost: Books procured through the Library Accounts, Firearms, Art Objects/Antiques, Vehicles The following are inventoried if the unit cost is under $3,000 but $500 or over: Electronic office equipment, computer equipment, A/V equipment and photographic equipment

PURCHASING CARDCOMMON MISTAKES AND ERRORSPurchase inventoried equipment especially in the $500 arena of computers, audio visual and photographicSplit purchases Exceed the cards single transaction limitCardholder not addressing in detail in WORKS what was bought, quantity, unit price, and why it was purchased

Purchasing CardCOMMON MISTAKES AND ERRORS - ContinuedManagers not requiring detailed information in WORKS and not reviewing the charge against the actual receipt/invoiceSales tax being chargedPurchasing statewide contract items from non-statewide contract vendors.Improper reconciliation of hard copy monthly statements

Purchasing CardCOMMON MISTAKES AND ERRORS - ContinuedMemberships being purchased allowable only via check requestAccount in WORKS not being changed especially important for conference and workshop expenses such as catering, food, etc.Failure to change object code in WORKS

Purchasing Card AuditingInternal Auditing completes approximately 30 audits each yearCurrently, in addition to the above audits, they perform 10 audits strictly on the p-card functionControllers Division will be conducting compliance reviews of p-card transactions.

Purchasing Card AuditingItems Reviewed by Internal AuditingHow is the p-card safeguarded?Is the p-card being used by other than the cardholder?Is adequate department review performed?Are hard copy documents being retained?Is appropriate account number being charged?

Purchasing Card AuditingItems included in the auditReview transactions by vendor and dollar amount

Review for questionable vendors that may indicate unauthorized useMealsTravel expensesInventoried EquipmentIntra-University Charges

Review for adequate documentation both hard copy and WORKS

Purchasing Card AuditingItems Included in AuditTimely approval in WORKSTimely cancellation of cards after employee termination or transfer to another departmentConsequences

PURCHASE REQUESTS

PURCHASE REQUESTSPARTS OF A PURCHASE REQUEST (1)Date the requestInclude account numbers, object codes, and dollar amounts.Recommended Vendor (at least one)Include a delivery date - specify mandatory if a certain delivery date is required.List items use a noun to describe the actual item, include quantity, unit of issue, cost per unit, description of item (specifications), extended price (Unit cost X qty). Include freight charges if known. Any priced line item on a quote should be a line item on the purchase request

PURCHASE REQUESTSPARTS OF A PURCHASE REQUEST (2)Attachments price support, quotes, drawings.Paperwork address where Procurement should send the department copy of the orderDeliver to Address specify if different than paperwork address this is where the vendor will deliver the service or item or where Central Receiving will re-deliver the items.Point of contact and phone number

PURCHASE REQUESTS SPECIFICATIONSMain Types:Fully competitive generic express minimum needs without any unjustified bias toward a specific brand.Brand Name or Equal List one brand name and list the required minimum characteristics to determine equality.Sole Brand see discussion on following pages.Sole Source see discussion on following pages.

PURCHASE REQUESTS SPECIFICATIONS - continuedDescription of need how and where items/services will be used.Use a noun to describe the item/servicePhysical Requirements Identify the measurable physical, quality and functional characteristics common to several manufacturers. Include types/grades of material, size, weight, shape, quality, etc. If not competitively bidding or bidding on an as equal basis list catalog numbers, part numbers, and manufacturer name. Installation RequirementsTraining RequirementsService/Warranty Requirements

PURCHASE REQUESTSSOLE SOURCE/SOLE BRANDOnly applies to purchases $5,000 or greater which are not available on a statewide contract or agency contract or available from a mandatory source.Sole Brand only one brand of equipment will meet the requirements of the end user.Sole Source A sole brand requirement where the equipment/service is only available from one source.

PURCHASE REQUESTS SOLE SOURCE/SOLE BRANDExamples of Valid Sole Source/Sole Brand Requirements:Components of a major assemblyCompatible items to be added to an existing system.Compatibility with substantial parts inventory and/or service capabilitiesPhysical design characteristics to satisfy aesthetic requirements.Matching and inter-changing with preponderance of existing equipment.One of a kind equipmentBooks, publications, subscriptions, etc.

PURCHASE REQUESTS ALL SOLE SOURCE REQUIREMENTS

The following must be received with the purchase request in Procurement:1. A completed sole source/sole brand form with both end user and department head signature form available on administrative forms website2. A letter from the original equipment manufacturer (OEM) stating they are the sole manufacturer and sole seller of the item - In the case where the sole source is a reseller, the letter from the OEM must state the reseller is the only authorized reseller TO the state of Georgia

PURCHASE REQUESTSSOLE SOURCE/SOLE BRAND ITEM COST $10,000+Matrix is requiredList minimum specifications down the sideList evaluated brands across the topShow how each brand meets or does not meet the minimum requirement specified

PURCHASE REQUESTSCHEMICAL PURCHASESCentral Research Stores is the sole agent for submitting purchase requests for lab chemicals to the Procurement Office - This applies only to main Athens campusLab chemicals can not be purchased on indefinite blanket orders.

PURCHASE REQUESTSRADIOACTIVE MATERIALSAll orders for radioactive materials must be placed via purchase request thru the Procurement OfficeDirect purchases from vendors are prohibitedAthens campus radioactive material deliveries will be made to Radiation Safety Must be classified as an authorized user and granted access to an electronic database by Radiation Safety which will issue a B number (authorization tracking number) for each item ordered - This number is unique and not reusable Include B number on purchase request

PURCHASE REQUESTSCONSTRUCTIONOnly use purchase request proceduresDefinition Construction involves one or more of the building trades, such as electrical, mechanical, heating, air conditioning, plumbing, carpentry, painting, acoustical or ceramic tiling, paving, excavating, grading, metal fabrication, landscaping, glass fabrication and/or installation, masonry, plastering, roofing, well drilling, concreting, building demolition, elevator installation, insulating, fencing, floor covering, environmental chamber construction and installation, greenhouse construction, etc.

PURCHASE REQUESTSEMERGENCIESHard copy fax directly to Contracts and Grants or Expenditure Control depending on funding - Can also be hand-carriedElectronic PR- Place a Y in the emergency field in the system. Do electronic emergency justificationAlways specify the required delivery dateAlways submit an emergency justification letterIf $5,000 or above and sole source/sole brand submit sole source/sole brand form - also matrix should be submitted if unit cost $10,000 or above

PURCHASE REQUESTSINFORMATION TECHNOLOGYIT includes computer systems, computer related equipment, peripherals, and softwareCESS Approval required for all IT purchases totaling $10,000 or moreCESS approval guidelines are at www.eits.uga.edu/cessStatewide contracts exist for microcomputer purchases Obtain current pricing information (less than 30 days old) from vendor and submit with purchase requestSee ordering guidelines for processing purchase requests with various vendors at www.busfin.uga.edu/procurement and then see the vendors listed under Commodities and ContractsDell get quote from Premier page

PURCHASE REQUEST COMMON MISTAKES AND ERRORS

All required information not submitted with purchase request Missing paperwork addressMissing delivery addressMissing departmental point of inquiryInadequate specifications- no catalog numberNo sole source/sole brand justification No letter from original equipment manufacturer certifying sole provider

PURCHASE REQUEST COMMON MISTAKES AND ERRORSVendor provided is not the statewide contract vendorNo quote from vendor sent to Procurement especially needed with Dell and other statewide contract computer vendors, and necessary for sole source procurements.No CESS approval for IT $10,000 +Failure to include B# for radioactive materials

PURCHASE REQUEST COMMON MISTAKES AND ERRORSFailure to include size/unit of issue for radioactive isotopes and research chemicals

Radioactive isotopes with short shelf life are ordered too far in advance of required actual delivery.

PROCUREMENT IN THE FUTUREResearching commercial web based procure to pay and E-Procurement systemsElectronic purchase requests- status tracking on lineMajor vendor catalogs available on-lineOrders submitted electronically to vendorsVisibility of minority and small business suppliers

QUESTIONS & ANSWERSContact Information:Annette EvansPhone: 706-542-7066Email: amevans@uga.eduwww.busfin.uga.edu/procurement