WELCOME TO PURCHASING: 101

1. WELCOME TO PURCHASING: 101 AN INTRODUCTION TO PURCHASING POLICY & BEST PRACTICES

2. TODAY’S AGENDA • Purchasing Mission • Elements of a Good Quote • Competitive Solicitations • Category Specific Purchase Information • My USF Tips • The Future of Purchasing • Additional Resources

3. OUR MISSION The mission of Purchasing Services is to Support the University of South Florida by… • Providing service • Reducing price • Mitigating risk

4. WHO ARE WE?

5. METHODS OF PURCHASE INCREASING PURCHASING INVOLVEMENT • UNENCUMBERED This includes such things as utility, freight bills, subscriptions, memberships, postage, petty cash, and reimbursements • PCARD Non Asset Commodities up to $1,000 & Travel • REQUISITION /PURCHASE ORDER

6. REQUISITION VS. PURCHASE ORDER • Requisition (REQ) • Request • Prior to services and/or goods being ordered http://usfweb2.usf.edu/usfgc/gc_pp/admsv/gc5-001.htm • Funding source • Purchase Order (PO) • Executed contract with terms & conditions • Dispatched to Vendor by Purchasing BOTH CONTAIN: VENDOR INFORMATION, ITEM DESCRIPTION, QUANTITY, DELIVERY INSTRUCTIONS, BILLING INSTRUCTIONS, & DESIRED DELIVERY DATE

7. STARTING THE PURCHASING PROCESSLET’S BEGIN! DEFINE YOUR NEED. WHAT ARE YOU BUYING? • Is there an existing contract? Check the Purchasing website: http://usfweb2.usf.edu/purchasing/ • Contact Purchasing: 974-2481 or contact a Purchasing Agent by accessing listing of Purchasing Agents on the Purchasing website at: http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf

8. SELECTING A VENDOR WATCH OUT FOR CONFLICT OF INTEREST!!! Ensure you aren’t selecting a company in which you have a personal interest. • Florida Statue 112.313(3) and University policy do not allow you to purchase from “a business entity in which you, your spouse or child have a material financial (more than 5% of stock or assets) or managerial interest (officer, director, partner, or proprietor)”

9. SELECTING A VENDOR (cont’d) For additional information: • Conflict of Interest in sponsored research: http://usfweb2.usf.edu/usfgc/gc_pp/genadm/gc309.htm (this is a policy) • Conflict of Interest faculty: http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-107.htm (this is a regulation) • Conflict of Interest in staff: http://usfweb2.usf.edu/usfgc/ogc%20web/currentregs/USF10-206.htm (this is a regulation)

10. SELECTING A VENDOR (cont’d) USF SUPPLIER DIVERSITY PROGRAM • To seek out, identify, and utilize Florida Certified Minority Businesses and the Small Business Administration (SBA) certified (8)A program participants, SBA Certified HUB Zone Firms, and SBA Certified Small Disadvantaged Businesses that provide services, commodities, and construction services which are purchased by the University of South Florida contact: Desiree Hanson, Supplier Diversity Manager (813) 974-3292 email dhanson@admin.usf.edu Website: http://usfweb2.usf.edu/supplierdiversity • Departments can also access the State of Florida Certified Minority Business Enterprise online Directory and the SBA Dynamic Small Business Search Directory via the Supplier Diversity Site at http://usfweb2.usf.edu/supplierdiversity/department_info.htm

11. ELEMENTS OF A GOOD QUOTE When contacting Vendors: • Identify yourself as the University of South Florida • Record the date, contact information & the person’s name who gave you the information • Ensure you provide detailed information: • item description • item number • quantity

12. ELEMENTS OF A GOOD QUOTE (cont’d) …..AND…… • Warranty • Expiration date of price quote • Delivery Time • Vendor payment terms • Vendor File • Discounts

13. VENDOR PAYMENT TERMS **Contact Purchasing about changing payment terms on a Purchase Order* • The university payment terms are NET 40

14. SHIPPING /FREIGHT COSTS • TWO KEY QUESTIONS… • Does the quote include freight? • Who pays the freight costs? PREPAID – Vendor pays the carrier and adds it to the invoice COLLECT – USF pays the carrier directly

15. FREIGHT TERMS MORE KEY QUESTIONS… • Where does title transfer? • Is it Covered by insurance? • FOB • Origin/Shipping Point • Destination Example: Quote says:Destination Prepaid and Allowed Which Means: Supplier pays freight & title passes at USF’s loading dock.

16. VERBAL/WRITTEN PRICE QUOTES$5,000 - $25,000 2-3 QUOTES REQUIRED • Comments regarding verbal/written quotes must be placed in Header Comments in the requisition with the company name, individuals name that provided the quote, and the date price quote was given. • Fax written quotes/back-up to Purchasing (Include requisition # on all quotes)

17. WRITTEN PRICE QUOTES$25,000 - $50,000 3 WRITTEN QUOTES REQUIRED • Contains all the elements of a good quote… • Comments regarding verbal/written quotes must be placed in Header Comments in the requisition with the company name, individuals name that provided the quote, and the date price quote was given. • Fax written quotes/back-up to Purchasing (Include requisition # on all quotes) • Minimum of 3 written quotes required • Is it covered by a State, University, or other kind of contract?

18. TOTAL PURCHASE ABOVE $50,000 • University of South Florida Procedure 6c4-4.02030 (1) • “The purchase of commodities or contractual services exceeding $50,000 shall be awarded pursuant to a competitive solicitation..”

19. COMPETITIVE SOLICITATION INVITATION TO BID (ITB) • Used for commodities or Services that are well-defined • Can be used for annual contracts resulting in multiple orders • Creates a contract • Awarded on price

20. COMPETITIVE SOLICITATION (cont’d) REQUEST FOR PROPOSAL (RFP) • Used when the need is not specifically defined • RFP describes the desired result and the vendors propose one solution • Evaluation is based on specifically stated criteria • Price is not the sole consideration

21. COMPETITIVE SOLICITATION (cont’d) INVITATION TO NEGOTIATE (ITN) • Similar to an RFP • Used when the need is not specifically defined • Price is not the sole consideration • ITN describes the desired result and the Vendors may propose more than one solution • University has the ability to negotiate

22. “PIGGY-BACKING” … THE USE OF A COMPETITIVE BID CONTRACT • If a Vendor can provide pricing based on a competitively bid contract then it does not require public solicitation… • EXAMPLES • State Contracts • Other Schools • Other Governmental entities • Educational Cooperatives and Consortiums

23. DSR EXEMPTION The Division of Sponsored Research (DSR) has been granted authority to waive the bidding process if “it is necessary for the efficient or expeditious management of a research project.” USF Policy 0-303 DSR WEBSITE: http://www.research.usf.edu

24. “SOLE SOURCE” PURCHASE • A sole source means that the item/service is unique and that the vendor is the sole provider from whom the item/service can be obtained. • The Sole Source Form is available from the purchasing website: http://usfweb2.usf.edu/purchasing/forms.html

25. “SOLE SOURCE” PURCHASE (cont’d) MUST INCLUDE • Vendor Quote • Reasonable price justification: i.e. historical pricing, cost analysis, or comparable price • A thorough explanation written in layman’s terms – what is unique and how it is relevant to the work being done MUST BE • Completed and signed by the Professor/PI • Publicly posted and open to protest for seventy-two (72) hours/three (3) business days

26. CATEGORY-SPECIFIC & OTHER PURCHASING INFORMATION

27. CONTRACTUAL SERVICES • DEFINITION: Non-USF employee providing a defined service for fees • CONTRACT SPECIFICATIONS • “Rates, Dates & Deliverables” • Rate of Payment • Dates of Service • Thorough description of services being provided and expected outcome • PO may serve as the contract, or “Contract for Services” template from Purchasing website • Independent Contractor Form for 1099 Consulting & Professional Services Worksheet required NOTE: Quote & competitive solicitation dollars levels still apply!!!

28. CONTRACTUAL SERVICES (cont’d) INDEPENDENT CONTRACTOR WORKSHEET • Available from the Purchasing website • Required when hiring an individual or sole proprietor • Who is not a foreign national providing the service from their home country • Each time a requisition is initiated • Signed by Vendor and Department Chair • Independent Contractor Form ensures that the University is not paying Vendors as independent contractors when the IRS would consider them to be employees

29. EQUIPMENT MAINTENANCE AGREEMENTS THINK: • About the value, age, and condition of the equipment • The frequency of use and critical nature of the equipment • Maintenance Agreement cost vs. number of service calls CONSIDER: • ASSUMED RISK (SELF-INSURED): • No contractual agreements • Department pays as the item is fixed • REGULAR MAINTENANCE AGREEMENTS: • Departments pays for a maintenance agreement with manufacturer may include repairs and Preventative Maintenance visits (parts additional)

30. FURNITURE • State of Florida contracts available from Purchasing website • Excellent quality at highly discounted rates • Special needs chairs need pre-approval by the Environmental Health & Safety Department • Written justification is required for furniture purchase above these guidelines: • Office Chair - $600 • Sofa - $1,400 • Love Seat - $1,200 • Club Chair - $800. • End Table - $400 • Coffee or 48” Conference Table - $600

31. FOOD Can only be purchased when there is a clear business purpose & funding source allows it… • STATE & APPROPRIATED FUNDS • The food is used directly in research • CONTRACTS & GRANTS • The food is specifically provided for in the terms of a contract, grant, or donation • COLLECTED FEES • Fees have been collected for the express purpose of paying for such items and the advertising documents indicates there will be food provided as part of the negotiations cost • STUDENT GOVERNMENT • When approved by the Student Government Finance Office • ALCOHOLIC DRINKS • Non-Fee collected events – Foundation funds only

32. LEASE OF SPACE • Review Regulations for Lease of Space @ http://usfweb2.usf.edu/usfgc/gc_pp/admsv/gc5-004.htm • Standard Lease Agreement for Office/Warehouse space can be found on the Purchasing website @ http://usfweb2.usf.edu/purchasing/forms.html • Purchasing is the contracting authority for Lease of Space

33. MOVING • Must fill out an “Approval to Pay Moving Expenses” Form & have Dean, Director, or VP (for > $15,000) signature • Enter a requisition with complete address & contact information. Requisition will not be processed until Purchasing receives the contract information with Request for Authority to Pay Moving Expenses Form • Guidelines for both commercial and self moves can be found at http://usfweb2.usf.edu/purchasing/rules-redtape/rules2.htm • All forms located on the Purchasing website at http://usfweb2.usf.edu/purchasing/forms.html • Contact Bill Gill @ 974-3340 or via email: bgill@admin.usf.edu • Physical Plant handles office and lab moves. Contact Greg Gard @ 974-4983 or via email: ggard@admin.usf.edu

34. VEHICLES USF DIRECTIVE – ALTERNATIVE FUEL VEHICLES ONLY • Purchasing has a listing of alternative fuel vehicles by vehicle type and class • Equivalent “gas only” vehicles may also be considered under the following circumstances: • DSR grants an exemption • No alternative fuel vehicle exists within the vehicle type and class needed NOTE: The purchase of used vehicles will also adhere to this directive

35. MY USF TIPS • Make sure the Description contains everything the Vendor needs to know • Write the Requisition number on all quotes & back-up materials • When entering requisition, don’t forget to check the “send to vendor” box in header comments so that important comments to vendors will print on your purchase order. • Remember: Some categories route requisitions to different purchasing agents that would be assigned to your department or the commodity or service that you are purchasing. Do not insert the buyer’s name when entering requisitions. If you copy a requisition, you should also remember to delete the buyer’s name.

36. MY USF TIPS (cont’d) • Select “SPL” when creating requisitions for Contractual Services • Ensure that you designate distribution by amount vs. quantity • OCO & Expense items should be listed on separate line items on the requisition. • The contact name, location, Bldg., and room # must be placed in the Header Comments of the requisition and the “send to vendor” box must be checked so that this information prints on the PO. Property personnel use this information identified on the po’s to easily locate the OCO items for tagging/decaling purposes.

37. CONFIRMATION ORDERS DEFINITION: When product/services are received and no PO is in place • Bad Business Practice • University isn’t covered by terms & conditions • Vendor waits for payment • Provide after-the-fact justification by notating in “Header Comments” why a requisition wasn’t created prior to ordering • Insert the following in Header Comments: “Confirming Order – Do Not Duplicate”. Remember to check the “send to vendor” box to ensure that this comment is printed on the PO.

38. AMOUNT ONLY PO’S DEFINITION: • Amount only PO’s do not provide detailed purchasing information. The University ‘s use of them will limit Purchasing and Property Services’ ability to negotiate the best possible prices from our Vendors. • NOTE:Purchasing Cards should be used in lieu of Amount Only PO’s whenever feasible.

39. AMOUNT ONLY PO’S (cont’d) • Limited to 1 year • $1,000 minimum to open • Need the beginning & ending dates • Not to exceed $50,000 unless covered by University or State contract or sole source • List at least 3 examples of items to be bought • Include authorized department personnel

40. CHANGE ORDERS • Change Orders should be submitted to Purchasing by fax @ 974-5362 or scan & email to the Purchasing Agent that issued the Purchase order • A change request to a PO is only done to change the following: • Description • Quantity • Unit Price • Due Date • Delivery Locations • Fund • Account OR • Cancel the PO before it’s received or vouchered • All Change Orders must be signed by the accountable officer.

41. THE FUTURE OF PURCHASING • Strategic Sourcing • More Purchasing Classes & Training • Updated Website

42. SUSTAINABILITY • USF supports the purchase of products that will minimize any negative environmental impacts on our work. • “Environmentally Preferable Products” have a lesser impact on human health and the environment when compared with competing products • “Recycled Products” are manufactured with waste material that has been recovered or diverted from solid waste • USF personnel will purchase recycled and environmentally preferable products whenever practicable.

43. HELPFUL HINT • EARLY PURCHASING INVOLVEMENT SAVES TIME ON LARGE OR COMPLICATED PURCHASES AND/OR CONTRACTS

44. ADDITIONAL RESOURCES

45. PURCHASING WEBSITE www.usf.edu/purchasing WEBSITE INCLUDES… • Complete directory of all Purchasing Staff with their respective responsibilities • Exhaustive listing of the category codes • University and State Contract Listing • Purchasing Directives • Supplier Diversity Program Information • Minority Business Enterprise Vendor Directory • P-Card Information • Property Information

46. IMPORTANT CONTACT INFORMATION • PURCHASING • Phone #: 974-2481 …. • Staff listing: View Contact Listing of Purchasing on the Purchasing Website at: http://usfweb2.usf.edu/purchasing/purchasing_Staff.pdf • P-CARD • Contact: Tom Scott • Phone #: 974-2481 …. • P-CARD Website: http://usfweb2.usf.edu/pcard • SUPPLIER DIVERSITY PROGRAM • Contact: Desiree Hanson • Phone #: Call: 974-3292 …. • Supplier Diversity Website: http://usfweb2.usf.edu/supplierdiversity • PROPERTY • Contact: Iris Wiggins • Phone #: 974-6025 …. • Property Website: http://usfweb2.usf.edu/purchasing/property.html

47. QUESTIONS • PURCHASING: usfpurchasing@admin.usf.edu • P-CARD: PCard@admin.usf.edu • Supplier Diversity Program: dhanson@admin.usf.edu • Property: usfproperty@admin.usf.edu

48. THANK YOU FOR COMING!