Purchasing

1. Purchasing Why can’t I just purchase what I need without all the hassle? (and other important questions)

2. Because we must follow the guidelines of the West Virginia Purchasing Division • The mission of the West Virginia Purchasing Division is to provide valued services to their customers by making sound and effective decisions in accordance with state law.  • The Purchasing Division was created for the purpose of establishing centralized offices to provide purchasing, travel, and leasing services to the various state agencies. • State procurement officers and their support staffs are required to use the handbook to perform procurement and other related activities.

3. Without guidelines, we would have too many cases of Purchasing Gone Wild!

4. So Where Do I Start • Each section will be assigned a designated Purchasing Agent. This person will be available to help you with purchasing; this person is not required to complete the basic steps of purchasing for you. However, this person will be available to you if you have questions or need assistance. • Your Purchasing agent will also be responsible for reviewing your completed work, assuring compliance with purchasing requirements, and signing completed paperwork.

5. What exactly are the steps? • First, define your need. • Next, determine the cost. If the purchase is $2500 or less, competitive bids are usually not required. Some purchases, however, do require three verbal bids, such as printers and furniture (which are on the Statewide Contract). • Your purchasing assistant should be able to help you determine which purchases require bids.

6. Mandatory Resources • Next, check mandatory resources. These resources include Statewide Contracts, State Surplus, Department of Corrections and the West Virginia Association of Rehabilitation Facilities (WVARF).

7. Ok, I checked the Mandatory Contracts – What do I do now? • If the product/service is normally available through the mandatory contracts but they are currently unable to provide it (out of stock, etc) – you will need a waiver, which we will keep in our purchasing file. • If the mandatory contracts DO have the items you need, follow the guidelines and purchase the items.

8. What are the Guidelines? • Fill out a Purchase Request. • Obtain signature approval from: 1. Your supervisor ……. 2. Your Director ……...… 3. Finance …………………. 4. The Commissioner…. YOU WANT WHAT?? Are the forms filled out? Are they filled out correctly?? Do we have the $ for this?

9. Purchase Request NOTE: WV-88 is the form we use for a Purchase Order. This form is to be used as a purchase request only. First line completed by our Purchasing person The rest of this form MUST be filled out completely. Your Section Purchasing person will give you the Account information Must include Total Estimated Cost Director of Admin MUST approve You must have your supervisor’s approval and your Director’s approval

10. Agency Purchase Order (WV-88) The Form WV-88, Agency Purchase Order, should be used when making purchases that cost $2,500 - $25,000. This form is easy to complete.

11. Release Order (WV-39) Form WV-39 is to be used for orders against most statewide and open-end contracts. Before you place an order, ask your purchasing person to fill this form out.

12. Ok, forms are filled out, requests are signed – Now What? • Once the request has been signed by all indicating you have permission to purchase the desired product/service, find out if verbal bids are required (your purchasing assistant should be able to assist you with this). • If bids are not required, determine your method of payment.

13. WHAT ARE THE PAYMENT OPTIONS? There are two payment options, P-Card and Invoice. • State Purchasing Card (P-Card). • If paying with a State Purchasing Card, locate a person in the Agency who has a Purchasing Card (P-Card), present your paperwork to them, and ask them to place your order. • For orders under $2500, this is usually the preferred method of payment.

14. What other options do I have? Vendors can issue our agency an invoice. • If you choose this method of payment, you must first determine if the Vendor is registered in FIMS and TEAM. If they are not, you are responsible for providing the Vendor with the forms required to register (W9 and Vendor Registration form) • When it is determined that the Vendor is registered in FIMS and TEAM, and they are not on hold, place your order.

15. Okay, I placed my order, what now? • Wait until you receive your order. • Order must be checked within 24 hours of recepit. • Once you receive your order, regardless of payment method, put your paperwork together (make sure it’s all there) and take it to the person responsible for making payment. • More information regarding P-Card payments and payment by invoice will be presented by our Financial Services staff.

16. Purchases $25000 or less • In accordance with the Legislative Rules and Regulations, state agencies may make purchases in the amount of $25,000 or less of certain commodities and services. • The $25,000 limit shall be determined based on: a one-time payment, monthly payments or periodic payments. • Issuing a series of requisitions or purchase orders to circumvent competitive bidding or to defeat the State P-Card transaction or delegated purchasing limit, commonly referred to as ‘stringing’ is prohibited by law.

17. Purchases $2500.01 to $5000.00 I want to purchase We’re having a sale! How much??? • A minimum of three verbal bids are required, when possible, and must be present in the file. Signed faxed bids and electronic bids are acceptable. • A purchase order is required for purchases exceeding $2500. • As with purchases under $2500, you must first check mandatory resources. These resources include Statewide Contracts, State Surplus, Department of Corrections and the West Virginia Association of Rehabilitation Facilities (WVARF).

18. Verbal Bid Quotation Summary (WV-49) This form is for documenting verbal bid requirements for small purchases up to $5,000. PLEASE NOTE: A ‘No Bid’ is NOT a bid! We must contact 5-6 Vendors who provide ‘No-Bid’ before a ‘No-Bid’ is acceptable. The person who receives the verbal bid MUST sign this form. Reason for award is required, i.e., lowest bid, availability, etc. How much is that doggy in the window?

19. Purchases $5000.01 to $25000 • A minimum of three written bids are required, when possible, and the lowest bid meeting specifications must be awarded the purchase order/contract. • All bids must be present in the file. All written bids must be signed by the Vendor. • After the lowest bid is awarded, you must sign a Certification of Non-Conflict of Interest form. This form must also be signed by our Procurement Officer.

20. Required Forms • The following forms are required when making purchases. Most forms are relatively easy to complete. • If you have questions regarding the purpose of a form or are confused as to which form should be filled out, your section’s purchasing assistant will help you. Who? What? Where? When?

21. Request for Quotation (WV-43) The WV-43 Request for Quotations form should be used by all agencies when obtaining written quotations. These quotations must be retained by the agency on purchases $5,000 to $25,000. The WV-43 form is a fast, easy and uniform method of obtaining written quotations. Vendor MUST sign this form NOTE: If the bid is $5,000 or more, the Vendor MUST complete the Purchasing Affidavit form and return it with your bid

22. Purchasing Affidavit A Purchasing Affidavit is given to any Vendor who receives $5000 or more. This Purchasing Affidavit certifies that the Vendor does not owe any debt to the State of WV which would preclude them from receiving a purchase order. This form must be signed and dated by the Vendor and the signature must be notarized. The notary date and Vendor Signature date must be the same date.

23. Certification of Non-Conflict of Interest form This form is used by employees or members of an evaluation committee to certify they have no conflict of interest with any of the participating vendors. This basically means you are not personally associated with this vendor. PONumber goes here Conflict of Interest Example: A purchasing agent hires her brother-in-law to provide vending services to the company lunch areas.

24. Agreement (WV-48)Contractual Services This form is used for all contractual services (if the Vendor does not provide one). This form is also required when hiring people for events such as Vandalia. It is NOT required when using WVARF or Temp Services through the State Wide Contract. A Vendor MUST be registered in FIMS and TEAM before signing this contract. Fill out completely Check appropriate box Vendor must sign before Agency signs

25. Agreement Addendum (WV-96) If a Vendor has our agency sign their Agreement, the Vendor MUST sign this Agreement Addendum BEFORE the agency signs the Vendor’s Agreement. The purpose of this agreement is to assure that in the event of a conflict between this addendum and the agreement, this addendum shall control. Vendor must sign before Agency signs

26. Agency Purchase Order (WV-88) The Form WV-88, Agency Purchase Order, should be used when making purchases $2,500 - $25,000. This form is easy to complete.

27. Purchase Requisition (WV-35) Form WV-35, Purchase Requisition, is to be used for purchases over $25,000 (commodities, printing and services). All purchases greater than $25000 MUST be made by our Procurement Officer. You will first obtain approval from your Director and then meet with the Procurement Officer to provide pertinent information which includes specifications, etc. Your Procurement Officer will fill out Form WV-35 and complete the purchase.

28. Emergency Purchases What is an emergency purchase? • Emergency purchases are purchases necessary when unforeseen causes arise. • Emergency purchases are not to be used for hardships resulting from neglect, poor planning, or lack of organization by the spending unit. • Failure to plan does not make it an emergency situation. 911 – what’s your emergency?

29. Emergency Purchases • Simply said: • An emergency purchase is a short term solution to fix a problem. It is not to be used as a permanent or long term solution. It is not to be used to avoid the bidding process. • Emergency purchase procedures allow for a solution to an immediate problem until it can be properly bid. • Agencies must first examine statewide and/or piggyback contracts for availability of the product or service and utilize such, if available. Help! I need to purchase something now!!

30. Emergency Purchases • An emergency purchase requires the written approval of the Purchasing Director. The decision for an Emergency Purchase is made on reasonable and sufficient grounds, such as sudden or unforeseen circumstances that create a situation requiring that commodities or services be immediately purchased. • A report of any such purchase, together with a record of the competitive bids upon which it was based, is to be submitted to the Purchasing Director. It’s all here…

31. Emergency Purchases of $25,000 or Less To make emergency purchases of $25,000 or less: • A minimum of three (3) written bids, if possible, should be obtained. Original written bids and a written agency justification must be attached to the agency file. • An Agency Purchase Order (WV-88) or a TEAM generated purchase order is required if the purchase exceeds $2,500. I have three bids, justification, and a purchase order – I’m ready to go!

32. Emergency purchases over $25,000 for emergencies that occur during normal business hours: • For emergencies occurring during normal business hours, purchases require verbal approval by the Purchasing Director or his designee prior to making the purchase or the execution of any work. • A written explanation must be provided immediately via fax which should include the estimated cost of the purchase. I’ll fax the facts

33. Emergencies occurring after business hours, on a holiday or weekend • Agency may proceed with the emergency purchase and provide immediate justification of the action to the Purchasing Director or his designee on the first working day following the emergency. I need it now!!

34. Considerations while preparing an emergency purchase: • Exercise sound judgment and discretion. Apply the highest levels of honor and integrity. Strive to avoid the appearance of perceived impropriety. • Do not corruptly combine, collude, or conspire with one or more persons to lessen competition, cause a higher price to be paid, or cause one vendor to be preferred over other prospective vendors. • Written justification is required for any award not made to the lowest responsible bidder explaining why the low bid was rejected. • Documentation is to be complete and orderly.

35. Sole Source Purchases What is a sole source? • Competition not available • Only one known source • Unique or special in nature • Not an attempt to circumvent the normal bid process Sole Source

36. Determining Sole Source Vendor For purchases $25,000 or less: • Determine the need. • Determine validity. • Market research. • Quote from vendor – Vendor Must put in writing that they are Sole Source. Purchasing Requires: • Description. • FOB point of shipment. • Price. • Signature and date.

37. Remember… • Contact the purchasing assistant in your section if you have any questions or need assistance. • Instructions for purchasing, including this power point, are available on the S drive to assist you. • If your purchasing assistant is unavailable or does not know how to proceed, our Procurement Officer and our Financial Services office will be happy to assist you. Help me

38. We are here if you need us! Gloria