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Procurement Overview for EHS

Sara MalconianDavid Petricone

June 18, 2013

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• Procurement Training Overview: Abbreviated Version

• Procurement/EHS Collaboration– Common Challenges– Procurement Procedures– Common Initiatives

• Questions, and discussion: How can we best support you

What We Will Cover Today

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Our Focus Developing and maintaining efficient and customer-

friendly methods of buying products and services

Establishing relationships with partner/preferred suppliers based on the needs of the MIT community

Providing the highest level of customer service while maintaining compliance for the MIT community

Working to yield significant savings to MIT

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How Can We Help

Finding and purchasing the right products and services

Requests for Proposals and Quotes (RFP/RFQ) Negotiating with vendors Review/negotiate terms and conditions General purchasing Vendor problems/disputes

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Value of Our Services to MIT Protect you and the interests of MIT Facilitate required approvals for purchases to

assure compliance with MIT policies and federal regulations (CAC, OSP, radioactive materials, property, etc.)

Develop and manage relationships with preferred suppliers

Collaborate with Accounts Payable to ensure prompt payment to providers

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Making a Purchase: 4 Options

Preferred methods of purchasing products and services for MIT:

①MIT Procurement Card (ProCard)

②Electronic Catalogs (eCat)

③External Purchase Requisitions (POs)

④Internal Providers

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Preferred buying tool for low-dollar orders (< $3,000)Laptops, PCs, servers < $1,000One-time purchases with new vendorsRecurring purchases such as FedEx, bottled water, cell phone bills, etc.

For more information contact: procard@mit.edu

Option 1: ProCard

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MIT’s electronic catalog and ordering service:Electronic routing of requisitions for required authorizationsDirect link to many of MIT’s partner and preferred suppliersFastest option for purchasing goods under $10,000Individual profile established for faster ordering on subsequent buys

Option 2: eCat

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MIT’s electronic requisitioning system:

Allows for electronic routing of requisitions for departmental financial review and approval

Includes search functionality for requisitions, purchase orders and invoices

Best suited for services and high dollar or complex purchases (capital equipment, custom or specialty items, etc.)

Option 3: SAP Requisitions

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Purchase items and services from various internal service providers such as:Audio/Visual ServicesCopy CenterCatering ServicesCryogenic Laboratory OperationMail ServicesCertain IS&T services

No Purchase Order (PO) generated by Procurement for internal orders.

Option 4: Internal Providers

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Requisition Process Overview

If Over $10KProcurement

Buyer Assigned

If Over $50K, Property Notified

Buyer Sends Purchase Order

to Supplier

Buyer Creates Purchase Order

OSP NotifiedProcurement

Reviews Terms & Conditions

Complex Contracts

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Review Terms & Conditions associated with the purchase of a good or service

Create purchase order contracts for professional services using MIT’s Terms & Conditions.

Review many different types of contracts outside of SAP, including major projects, software, database, equipment, maintenance, leases, events, hotel.

Note: Purchase orders beginning with a “57” are used to create purchase order contracts for professional services

Complex Contracts Group

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Terms and Conditions: MIT Terms and Conditions are the negotiating tool of choice.

Much longer process if negotiating from vendor’s Terms and Conditions.

Large vendors usually want to use their own Terms and Conditions

Negotiating the Contract

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Restricted & Sensitive ItemsProcurement & Sourcing Alcohol Firearms Needles and syringes Hypodermic needles Travel

Department of FacilitiesConstruction workFire extinguishers

Environment Health & Safety Toxins/Poison Radioactive materials Animals Bio-toxins

Office of Sponsored ProgramsMemorabiliaPromotional materialFlowersHoliday parties

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Who to Contact

FurnitureGas, BulkCylinders

Scientific &Lab Supplies

Office Supplies, Temporary Help

Andrew Barnes617-253-8362

apbarnes@mit.edu

David Petricone617-253-8393

petricon@mit.edu

Stephen Newman617-253-8373

sfnewman@mit.edu

Derek Welcome617-258-5825

welcomed@mit.edu

Marketing & Communications

Minerva Tirado617-258-9310

minerva@mit.edu

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Who to Contact

EquipmentOver $50K

Travel ProcurementCard

AccountsPayable

Contracts

Jimmy Kontoravdis617-253-2756

jravdis@mit.edu

Ann Julian617-253-8350

amjulian@mit.edu

Tony Flaherty617-253-8268

aflahert@mit.edu

Kim Harmon617-253-8360

kharmon@mit.edu

John Larkin617-253-2729

jlarkin@mit.edu

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Procurement web site (SmartBuy found here)http://vpf.mit.edu/procurement

ProCardhttp://vpf.mit.edu/pcard

SAP via Atlashttps://atlas.mit.edu/atlas/Home.action#purchasing_0

eCathttps://web.mit.edu/ecat/ecat3/

Procurement Formshttp://vpf.mit.edu/procurement/forms

Electronic Request for Payment (eRFP)http://vpf.mit.edu/erfp

Online Tools and Services

18 Introduction to Sourcingand Procurement at MIT

Procurement/EHS Collaboration

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Compliance with MIT and regulatory policies and procedures

Early engagement with labs (proactive vs reactive)

Lack of transparency into what is or has been purchased

Proper training of lab staff

Common Challenges

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Checklist for buyers

Material codes to flag purchases

Blocked items on eCat and PCards

Pre-approvals

Procurement Procedures

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Restricted Item Material CodesMaterial Code Description

1810 Agents and Reagents (antibody, DNA)1820 Animal Purchases1830 Animal Supplies1320 Chemicals1580 Drugs and Pharma1550 Gases1010 Lab and Research Equip1460 Lab Supplies1050 Medical Equip1390 Medical Supplies1930 Radioactive Materials

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eShipGlobal

Lab coats

Chemical Tracking and Inventory system

Shop Equipment upgrades

Export controlled items (ITAR, etc.)

Emergency notification services

Procurement/EHS Initiatives

23 Introduction to Sourcingand Procurement at MIT

Questions, DiscussionHow can we best support you?