Procurement Policies and Procedures

Transcription

1 SEQ CHAPTER \h \r 1 PURPOSE Procurement Policies and Procedures As a public institution of higher education, Snow College (herein after referred to as the College) is accountable in the use of public funds, following ethical practices, and maintaining impartiality and professionalism in its procurement practices. This policy specifies the College s general procurement policies and responsibilities ensuring that all goods and services purchased by the College shall be procured in compliance with applicable Federal, State, Board of Regents and College statutes, rules, guidelines, policies, and procedures, regardless of the funding source. The Procurement Policy and Procedures shall serve all College divisions, departments, and employees as the authoritative directive on all procurement activities and transactions. REFERENCES Utah Procurement Code, Utah Code Annotated, sections 63G-6a-101 et seq. Utah Procurement Code, Utah Code Annotated, 63A (2)(a) Construction Utah Board of Regents Policy R571, Delegation of Purchasing Authority Utah State Archives, Retention Schedules College P-Card Policy, Procedures, and Guidelines DEFINITIONS Annual Cumulative Threshold: The maximum total annual amount that may be expended to obtain procurement items from the same source without a contract. Business/Business Entity: A sole proprietorship, partnership, association, joint venture, corporation, firm, trust, foundation, or other organization or entity that engages in commercial business activities for profit making or non-profit purposes. College Employee: A person employed by the College as administration, staff,

2 faculty, or students, on a full-time or part-time basis. Members of the Board of Trustees, advisory committees/boards, or other boards, serving on a part-time or voluntary basis, are not considered College Employees. Construction: The process of building, renovating, or demolishing College structures or buildings; major development or landscaping of College real property. Construction does not include, the routine operation, repair, or maintenance of existing structures, buildings, or real property. Contract: Any legally executed College agreement for the procurement and/or disposal of equipment, goods, services, or construction. DFCM: The State of Utah Division of Facilities Construction & Management. DFCM provides oversight of capital development and capital improvement projects for the College as outlined in Board of Regents Policy R Gratuity (Bribe): Means anything of value, such as; money, loan, an award, employment, admission to an event, a meal, lodging, travel, a raffle, drawing or prize, or lottery, and entertainment for which a charge is normally made. Goods: Anything purchased other than services, construction, or real property. Hospitality Gift: Means a promotional or hospitality item, including, a pen, pencil, stationary, toy, pin, trinket, snack, nonalcoholic beverage, or appetizer. Individual Procurement Threshold: The maximum amount that a single item may cost before it must be bid. Interested Person: Means a person who is interested in any way in the sale or a procurement item or insurance to a public entity. Invitation to Bid: A formal procurement method for soliciting bids from vendors interested in providing requested goods or services to the College. Kickback: Means a gratuity or bribe given in exchange for favorable treatment in a procurement process or the administration of a contract. Noncompliant Purchase: A procurement transaction circumventing established procurement policies and procedures. Order Splitting: To divide, split, parcel, or otherwise manipulate a purchase into two or more smaller purchases with the intent to circumventing the procurement code, policies, and/or procedures.

3 Person: Any business, individual, group of individuals, union, committee, club, or other organization, not including a state agency or local public procurement unit. Procurement: The act of buying, purchasing, renting, leasing, or otherwise acquiring any equipment, goods, services, or construction. Procurement also includes all functions that pertain to the obtaining of any equipment, good, service, or construction including description of requirements, selection, solicitation of sources, preparation, and award of a contract, and all phases of contract administration. Procurement Participant: Means a person involved in: administering, conducting, making a decision regarding the procurement, those that make recommendations, evaluate, award the contract, ensures compliance, audits or enforces the contract. Public Advertised Threshold: The total dollar limit of a purchase when it has to be publically advertised for purchase. Purchase Order: A legal and binding written contractual document, reflective of an offer from a supplier/vendor, and acceptance of that offer by the College. A purchase order serves as a formal order of goods or services to a vendor/suppler, and sets forth all terms and conditions applicable to that order. A Change Order amends the original Purchase Order according to the change(s) effected. Purchasing Agent: Designated individuals who can legally bind the College for goods or services, include the President of the College, Vice President for Finance and Administrative Services, and the Director of Purchasing Services. Purchasing Services: College department that has responsibility for overseeing all procurement related activities. Real Property: Land and its permanently affixed buildings or structures. Request for Proposals (RFP): A procurement method for soliciting proposals from vendors/suppliers interested in providing requested goods or services to the College. Request for Quotation (RFQ): An informal procurement method for soliciting quotes from vendors/suppliers interested in providing the requested goods or services to the College. Requisition: A request for the purchase of goods or services, initiated through Banner, and received by Purchasing Services, which can be turned into a College Purchase Order.

4 Services: The furnishing of labor, time, or effort by a vendor/supplier, not involving the delivery of a specific end product, other than reports, which are merely incidental to the required performance. It does not include employment agreements or collective bargaining agreements. Single Aggregate Threshold: The maximum total amount that can be paid to one vendor at one time, without requiring a bid. Specification: Any description of the physical or functional characteristics or of the nature of any equipment, good, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a piece of equipment, good, service, or construction item for delivery. Substantial Interest: (1) The ownership, either legally or equitably, by an individual, his/her spouse, or his/her minor children, of at least 10% of the outstanding capital stock of a corporation, or a 10% interest in any other business entity; or (2) the holding of a position in a business entity as an officer, director, board member, or employee. Transaction: A formal or informal contract or agreement, expressed or implied, to which the College is a party that involves any transfer of consideration or payment of compensation. POLICY The Director of Purchasing Services, is the Chief Procurement Officer for the College, and has authority over all procurements. All goods and services purchased by the College shall be procured in compliance with applicable statutes, rules, guidelines, policies and procedures, regardless of the funding source, including state appropriations, federal appropriations, generated income, or funds from gifts, grants, and contracts. Purchasing Services oversees the procurement of all goods and services required by the College and all its divisions and departments. Purchasing Services provides assistance and advice regarding all procurement needs of the College; and establishes operating processes that ensure 1) adequate access to goods and services, consistent with legal, budgetary, and delivery requirements; 2) timely and economical acquisition of goods and services; and 3) compliance with all applicable statutes, rules, policies, procedures, and guidelines during the procurement process. A College Employee involved in a procurement process, must act in accordance

5 with College and State Code of Ethics and the ethical standards outlined in the Utah Procurement Code (63G-6a-101, et seq.) and must exercise prudent judgement to ensure that the commitment of funds is appropriate and justified for College operations. Individuals who do not comply with College policy when placing procurement orders may become personally liable to the vendor for the price of their order and may be subject to disciplinary action. As a Utah State Institution of Higher Education, the College must ensure that all College funds are used only to support appropriate College purposes and not purchases of a personal nature. When the expenditure is funded by a grant or contract, the use of such funds will be governed by the most restrictive conditions of the grant, contract, and College policy. Expenditures for compensation as defined by IRS code and/or Utah State Code are covered and must adhere to College policies, procedures, and guidelines. College funds expended by non-college organizations and component units will be in accordance with College policy, procedures, guidelines, and practices. Procurement activities shall be performed independent of any fund-raising endeavors of the College. Authorized operating units shall comply with all applicable College policies and procedures and use the same sound business practices when purchasing as those followed by Purchasing Services. Other operating units may be extended similar procurement exceptions at the discretion of the Director of Purchasing Services. By virtue of its unique service obligation and needs, Custom Fit Training program is authorized to solicit bids above the normal bid limits allowed for divisions and departments, but with a maximum limit established, in writing, by the Director of Purchasing Services, and in keeping with all written policies. Advance payments may not be made, except in certain cases as determined appropriate by a Purchasing Agent for the College. Advance payments above $5,000, that are determined appropriate by a College Purchasing Agent, are required to have a bond or other approved form of guarantee. Purchasing Services establishes, with the approval of the Board of Trustees, a maximum small-dollar purchase limit. Purchasing Services establishes procedures to govern purchases under this limit, in conformity with the Utah Procurement Code.

6 Under the Utah Procurement Code Annotated, sections 63G-6a-101 et seq, it is illegal to divide, split, parcel, or otherwise manipulate a purchase into two or more smaller purchases with the intent of circumventing procurement code, policies, procedures, and purchasing card policies. Criminal Penalties for illegal transactions, including felony and misdemeanor charges, and dismissal from employment will apply to individual(s) involved, as outlined in the Utah State Procurement Code (63G-6a , 2305, 2306). A purchase may not be divided, split, parceled or manipulated over a period of time with the intent to use the policy for small dollar purchase of goods or services. An invoice shall not be divided into multiple invoices of smaller amounts with the intent of making a larger purchase appear to be a small dollar purchase. PROCEDURES FOR PROCUREMENT POLICY In discharging its responsibilities, Purchasing Services may: Initiate, conduct, and conclude solicitations and negotiations for the purchase of goods and services for the College. Obligate the College for the purchase of goods or services. Recommend changes in quality, quantity, or kind of material requisitioned and/or suggest appropriate alternatives. Select qualified vendor/suppliers. CORRESPONDENCE WITH VENDORS/SUPPLIERS To avoid violating statutes, code, rules, policies, procedures, and guidelines, at the time when a College employee knows (or should have known) that a solicitation for quotes, bids, or proposals must be completed to acquire goods or services, all correspondence with potential vendors/suppliers, shall be processed through Purchasing Services through the time until the contract has been awarded. This requirement is not required when the total purchase is less than $5,000, or if the vendor currently has a State or College bid Contract. LIMITATIONS AND RESTRICTIONS ON PROCUREMENT The purchase of goods, services, or construction by College employees shall be

7 authorized only if (1) established procurement processes and codes are followed, (2) the purchase is conducted in compliance with a) the Utah Public Officers and Employees Ethics Act, and b) the College Conflict of Interest policy, and (3) there is evidence that the purchase price is fair and reasonable. Unless specifically approved in writing (or purchase order) by a purchasing agent of the College, orders or commitments for procurement by College employees are not binding on the College, except as permitted by the College using the small dollar limits and purchasing card. NONCOMPLIANT PURCHASES A noncompliant purchase may be rescinded or nullified. Restocking fees may apply, and will be paid for by the division, department, or College employee. Documentation detailing the facts that gave rise to a noncompliant purchase must be submitted to Purchasing Services in a timely manner. Documentation must include the associated invoice and written approval of the noncompliant purchase by the President or Vice President responsible for the individual who made the purchase College employees who make repeat noncompliant purchases may be subject to disciplinary action. SMALL DOLLAR PURCHASES OF GOODS AND SERVICES The Single aggregate procurement threshold is $5,000. The Individual procurement threshold is $5,000. The Public advertised threshold is $50,000 and above. The Annual Cumulative threshold is $100,000. This threshold does not include any pricing that has been competitively bid. Procurements for goods and services will be handled as follows: Goods and Services College divisions, departments, or employees may not independently apply for merchant-issued credit cards, or credit cards issued by other financial institution, in behalf of the College to make purchases.

8 Small dollar purchases are to be made at the departmental level and can be done independent of Purchasing Services for purchases under $5,000. Procedures for procurements up to $5,000. Departments/College employees may select the best-known source without seeking for competitive quotes. However, it is recommended that College employees compare multiple sources for pricing of goods or services before procuring them. It is highly recommended that departments get their pricing/quotes in written form. According to the Uniform Commercial Code, any offer over $500 has to be in written form, for it to be binding and enforceable. Procedures for procurements over the $5,000. Quotes must be solicited from at least three (3) different sources/vendors if available. Quotes must be in written format. Other acceptable forms are faxed, or quotes. It is suggested that they attach the documents to the appropriate payment method. Internet pricing are acceptable in the following areas: Books, DVDs, CDs, and other items commonly circulated by the College Library(s) Acceptable requisitioning procedures for procurements under $5,000 are; Purchasing Card (P-Card) - (See P-Card Policy) Requisition Process Procedures for procurements between $5,000 and $50,000 These procurements are conducted by Purchasing Services as informal procurements, via Request for Quotes (RFQ s), or Request for Proposals (RFP s) and in accordance with all applicable codes, policies, procedures, and guidelines. Must receive and retain written, faxed, or quotations Procurements over $50,000 are conducted by Purchasing Services as formal,

9 advertised purchases, via Invitation to Bid or Request for Proposal. Purchasing Services will make the award to the successful bidder/vendor, in consultation with the requesting department and in accordance with all applicable code(s) and policies, then issue a purchase order, or if approved, by a College Purchasing Card (P-card). Some goods and services may be available via State Cooperative Contract(s). The use of these contracts for purchases is highly encouraged, provided the good(s) or service(s) on contract meets the requirements of the requesting department or College employee. A list of State Cooperative Contracts can be viewed online via a searchable database though a web-link on the Purchasing Services webpage. The College or Purchasing Services may enforce the use of State or College contracts for small dollar purchases. Purchases which are for ongoing, continuous, and regularly scheduled procurement of goods or services must go through the proper bidding process, if the annual purchase amount is over $5,000. College employees may NOT use the small dollar purchase procedures to make these types of purchases. College divisions and departments are responsible for making small dollar purchases in compliance with College policies, procedures, and guidelines. Small dollar purchases are encouraged to be procured with a College P-card by authorized P-card cardholders, in compliance with the College P-Card policies, procedures, and guidelines, or through the requisition process. Good or Services that do not lend themselves to the bidding process, because of the competitive sector or nature of the business are not required to go through a competitive solicitation process are the following: Airfare Media advertising and marketing: - such as Television Radio Billboards Newspaper and Magazine Internet, website, new media Mobile, phone, tablet, digital media and publishing Social Media Sponsorships Direct Mail, postage, postal services, and fees Groceries

10 Fast Food Services Hotels PAYMENT FOR GOODS AND/OR SERVICES The methods of payment for goods or services to vendors/suppliers are as follows (in preferred order): Purchasing Card (P-Card) Purchase Order Check Request A check request should only be used if the vendor does not accept one of the first two methods. Examples of using a check request (but not limited to) would be as follows: Paying officials at athletic events Paying for professional entertainment, such as bands and entertainers which require payment upon arrival Speakers, Honorariums, etc. Payroll vendors - such as insurance, tax payments, etc. Returns for overpayments/fees The College President, Vice President for Finance and Administrative Services, and Director of Purchasing Services are authorized to determine if a check request is appropriate to be used instead of a P-card or purchase order. In the unlikely event that a College employee uses a personal credit card for payment of goods or services, they can seek reimbursement through the proper College channels. The College may or may not reimburse the individual for taxes associated with the purchase. Also, all benefits which may accrue by using an employee s personal credit/debit card may become the College s because College funds are used to pay for the goods or services. GRATUITIES & KICKBACKS In accordance with the Utah Procurement Code (63G-6a ) it is unlawful to use your position or influence to receive a gratuity, bribe, or kickback It is unlawful for a procurement participant to use the procurement participant s

11 position or influence to obtain a personal benefit for the procurement participant, or for a family member of the procurement participant, from an interested person. It is unlawful for a procurement participant to ask, receive, offer to receive, accept or ask for a promise to receive a kickback for a procurement participant or for another person. A person who violates this code is guilty of either a felony or misdemeanor charge, and shall be dismissed from employment (Utah Procurement Code 63G-6a , 2305, and 2306). Hospitality gift is acceptable when it is less than $10 in value and the person is not involved in any ongoing procurement. PROTESTS Aggrieved bidders, vendors, or potential bidders or vendors, may protest the solicitation s specifications or award decision in accordance with the Utah Procurement Code, Utah Code Annotated, (63G-6a-1601 et seq.) The aggrieved party may appeal a protest decision in accordance with the Utah Procurement Code, Utah Code Annotated, (63G-6a-1701 et seq.) CONSTRUCTION UNDER $100,000 Division or departmental requests for construction projects with an estimated cost under $100,000 must be coordinated through the College s Facilities Department. Facilities will submit a requisition(s) for construction projects. Bid bonds and performance bonds shall be required per DFCM requirements and guidelines. Performance bond requirements may be waived by Facilities Director or Vice President of Finance and Administrative Services as per DFCM instruction and authority. The DFCM construction contract template must be used for construction related procurement, unless using a State Cooperative Contract, in which the contract is already in place. EMERGENCY PURCHASES An emergency condition is defined in State Code as a situation which creates a threat to public health, welfare, or safety, such as those arising from natural disasters, epidemics, riots, equipment failures, or other reasons, as determined by the College administration.

12 A request for an emergency procurement must include written supporting documentation describing the nature of the emergency. An emergency condition creates an immediate and serious need for goods, services, or construction that cannot be met through normal procurement procedures. Emergency procurement requests shall be limited to only those goods, services, or construction immediately necessary to attend to the emergency. Purchase requests under emergency conditions, must be authorized in advance by the Purchasing Services Department and/or the President, or Vice President of Finance and Administrative Services. SOLE SOURCE PURCHASES When a good or service is available from only one source in the marketplace (meaning the good or service stands alone and is without competition), the good or service may be considered a sole source. A proprietary item does not justify as a sole source if more than one source exists for that proprietary good or service. Examples of circumstances which may necessitate a sole source procurement: The compatibility of equipment, accessories, replacement parts or service is the paramount consideration. A purchaser can demonstrate that a unique combination of features, functions and attributes is necessary or required for a particular application(s) or purpose of an otherwise competitively available item. A good or service is needed for a trial use, testing, or pilot program. Public utility services. Copyrighted material available from only one source. Transition to a new contract is cost-prohibitive. Transition to a new contract would cause critical loss of continuity. When a division or department advocates a good or service is a sole source (before making the purchase), a Sole Source Request form must be submitted to Purchasing Services. All questions outlined on the form should be completed to ensure adequate justification of a sole source purchase.

13 Purchasing Services will verify the justification and rationale and post a formal advertising of the intent to award a sole source as outlined below. If a sole source purchase is deemed appropriate by Purchasing Services, final approval must be authorized by the Vice President of Finance and Administrative Services. Only after final approval may departments proceed with the purchase. Sole source requests for goods or services require a formal advertised Sole Source Notification process to a wide competitive marketplace and for a specified time. This notification process is required by the Utah Procurement Code and provides potential competitors with the opportunity to respond with information regarding their ability to provide the requested good or service. If it is determined through this process that the good or service is not a sole source, the College will proceed with a competitive solicitation and advertisement process. CONTRACTS All contracts, before being signed, must be approved by the College s attorney or appointed Attorney General s Office attorney. All contracts for the College can only be signed by one of the College s Purchasing Agents. Signing authority for certain types of contracts can be delegated to another College employee by one of the Purchasing Agents. Examples include the Sevier Valley Center (SVC), or the Director of Student Life for Entertainment contracts. The contracts outlined in still require a review by the attorney representing the College, unless the vendor signs the approved Standard College contract. PURCHASES FOR OTHER GOVERNMENT AGENCIES The procurement of goods and/or services from other governmental agencies, including public institutions of higher education, and correctional industries, may be made without competition as determined by Purchasing Services. LIMITED PURCHASE DELEGATIONS A Limited Purchase Delegation is issued by a College Purchasing Agent to a Purchasing Services employee for the purpose of conducting procurement

14 activities on behalf of the College. A Limited Purchase Delegation may be issued by a College Purchasing Agent to another College employee for the purpose of conducting specific purchasing procedures for a specific good or service, as prescribed by the delegation. A written Limited Purchase Delegation prescribes the scope of authority, limitations and responsibilities of the delegate. The delegate must follow the Limited Purchase Delegation and all State and College code, statues, policies, procedures and guidelines. The Limited Purchase Delegation may be revised and rescinded at the discretion of the College Purchasing Agent. If an employee with Limited Purchase Delegation leaves their department or the College, the delegation becomes invalid and does not automatically reassign to the replacement employee, or to another department employee. ETHICAL REQUIREMENTS All College employees are subject to the provisions and penalties associated with provisions of the Utah Public Officers and Employees Ethics Act Utah Procurement Code - Ethical Requirements (63G-6a-2201 et seq.) Utah Procurement Code - Unlawful Conduct and Penalties (63G-6a-2301 et seq.) Utah Procurement Code - Gratuities Kickbacks (63G-6a-2303 & 2304 et. seq.) A College employee may not take for personal use, a rebate check, gift card, coupon, gift or promotional offer, intended for the College, as the result of a purchase made by the College with College funds (or reimbursed to the College employee). Free / Extra supplies, equipment, or materials furnished to the College and without charged to the College (such as buy 10 get 1 free, etc.), may be accepted but must remain the property of the College. If any free items over $10 in value are received, they must be reported to the College Advancement Office and Business office to assure that the gift is recorded. A College employee may not participate in the procurement process or in a purchase transaction between the College and a business entity in which the employee has a financial interest. The College employee must submit a written

15 disclosure of their business interest to Purchasing Services and to the College employee s immediate supervisor. A College employee is forbidden to receive compensation as a result of, or in connection with, any transaction between the College and a business entity in which the College employee has substantial interest. GIFTS See College Gift policy. FLOWERS See College Flower policy. TRAVEL EXPENSES See College Travel policy. See College P-Card policy. REAL PROPERTY See Board of Regents policy. RECORD RETENTION Procurement documents will be retained as prescribed by the applicable State Archives record(s) retention schedule. Approved: November 15, 2013

16 Procurement Policies and Procedures Adopted: November 15, 2013 September 2013 September 2013 September 2013 September 2013

17 September 2013 September 2013 September 2013 September 2013 Approved: November 15, 2013

18