University of Houston Clear Lake PROCUREMENT TRAINING

1. University of Houston Clear LakePROCUREMENT TRAINING

4. PROCUREMENT DEPARTMENTIS LOCATED IN BAYOU BUILDING ROOM 2123 PHONE: 281/283-2150HOURS: 8:00 – 5:00 M-F

5. PROCUREMENT/PAYABLES PROCUREMENT DEPARTMENT • Jeanne Cumpian, CTPM Director of Procurement & HUB Activities • Barbara Minderhout, CTP Procurement Specialist II • Simone Parker Purchasing Assistant PROCUREMENT & PAYABLES • Debra Carpenter, CTPM Executive Director of Procurement & Payables • Patti Bozeman, CTCM Contract Administration Specialist • Alicia Gookin Staff Assistant

6. DO I NEED A CONTRACT OR A PURCHASE ORDER?

7. DO I NEED A CONTRACT? A contract is required if the subject matter involves: • Human performance that renders a service to the University. • An off-campus event that requires facilities, catering or service to the University. Example: Speaker, consultant, performer, or professional service

8. DO I NEED A PURCHASE ORDER? A Purchase Order is used when the deliverable is a tangible product. Example: Office supplies, furniture, etc.

9. WHAT IS A CONTRACT? A contract is an agreement between two or more persons that creates an obligation to do or not to do a particular thing.

10. TYPES OF CONTRACTS • Purchase Orders NOTE: A purchase order is a formal contract. However, if there is a separate agreement that the vendor requires UHCL to sign, then the agreement has to be sent to the Office of the General Counsel (OGC) for their review and approval to form. The legal review process takes approximately 6-8 weeks. • Affiliation Agreements (also known as Internships or Field Practicums) • Software/License Agreements (Requires legal review)

11. WHAT DOES THE PURCHASING/CONTRACTS OFFICE DO? • Approximately 2,500 purchase orders a year • Approximately 250 Contracts • Approximately 280 Change Orders • Serve as legal liaison for purchasing/contracts • Attend 24 hours professional development classes a year to maintain certification • Follow up purchase orders • Sponsor Historically Underutilized Business (HUB) Fair • Process 2,500 receiving reports • Vending service calls

12. PURCHASE ORDERS

13. IF YOU NEED TO MAKE A PURCHASE… PLAN AHEAD THE TIME REQUIRED TO ISSUE A PURCHASE ORDER VARIES

14. THE PURCHASING CYCLE • Need Defined • Procurement Method Selected • Solicitation • Receipt of Bids • Evaluation and Award • Inspection and Acceptance • Contract Administration • Payment • Disposal of Property

15. Purchases under $500.00 Department should use P-card or pay on voucher

16. PURCHASING PROCEDURES $0 - $500.00DEPARTMENTS PLACE ORDERS DIRECTLY WITH VENDOR. DEPARTMENT PAYS WITH P-CARD OR VOUCHER. PROCUREMENT WILL NOT ACCEPT PURCHASE REQUISITIONS UNLESS REQUIRED BY VENDOR. $500.01 - $1,000.00DEPARTMENT HAS THE OPTION TO PLACE ORDERS USING P-CARD, VOUCHER OR REQUISITION. $1,000.00 - $5,000.00Departments will recommend a vendor. Purchasing has the option of issuing bids Or placing order directly to the suggested vendor. $5,000.01 - $24,999.99DEPARTMENT WILL RECOMMEND A VENDOR. PURCHASING WILL ISSUE TELEPHONE OR FAX BIDS. A MININUM OF TWO (2) HUBS WILL BE SOLICITED. $ 25,000.00 > Departments will recommend a vendor. PURCHASING WILL SOLICIT FORMAL written bids. A MINIMUM OF TWO (2) HUBS WILL BE SOLICITED. THE PURCHASE MAY BE POSTED TO THE ELECTRONIC STATE BUSINESS DAILY FOR A MINIMUM OF FOURTEEN (14) DAYS. EMERGENCY PURCHASES MAY BE POSTED FOR LESS THAN 14 DAYS.

17. PURCHASES UNDER $500.00 VOUCHER or P-CARD PURCHASES Departments should order directly from vendor and pay for items on a voucher in accordance with Accounts Payable guidelines or use P-Card. Exceptions: • Bottled water delivery • TIBH ORDERS • VENDOR REQUIRES PO TO PROCESS ORDER • ORDERS USING STATE FUNDS • Advertisements (get approval from office of communications or human resources.) *All computer-related items must get UCT approval, BEFORE PLACING ORDER.

18. Important When ordering items under $500.00, department must give vendor the following information: • Department name • UHCL Contact • Building and room number • Phone number This information is necessary for Receiving Dock to know where items are to be delivered. The Receiving Dock will not issue a receiving report for these items.

19. Average Less than $5,000 (Call and Place Order)…………………..3 days $5,001 - $24,999 (Telephone or Faxed Bids)……………...5-10 days Greater than $25,000 (Formal Written Bids) and posted to Electronic State Business Daily………….15+ days HOW LONG DOES IT TAKE FORPROCUREMENT TO PROCESS A PURCHASE ORDER?

20. Purchasing will follow up on late orders. If there is a long delay in delivery, Departments will be notified by E-mail. Departments are NOT to contact vendors unless you have placed order with P-Card or voucher. PURCHASE ORDER FOLLOW-UP

21. SPECIFICATIONS

22. Good Specifications RequiredA specification is a description of a product or service to be purchased. Specifications are the primary means of communications between a department, Purchasing, and the vendor. Specifications must include: • Name of item (Example: Desk) • Material - Metal or wood • Size/dimensions • Color • Brand, model number/product code • Special features (Example: has lock, drawers on left or right pedestal) • Installation requirements (FMC does not install or put together furniture)

23. Characteristics of Effective Specifications:simple:Avoid unnecessary detail, but be complete enough to ensure that requirements will satisfy their intended purpose.CLEAR:Use terminology that is understandable. Use correct spelling and appropriate sentence structure.ACCURATE:Use correct units of measure that are in PeopleSoft. All quantities and packing requirements should be clearly identified.COMPETITIVE:Identify a manufacturer’s available brand, make, or model that will satisfy the intended purpose.FLEXIBLE:Avoid inflexible specifications.PURPOSE:Intended Use.sole source:Justification is required. Explain why only one manufacturer or vendor can provide. Specify unique features or characteristics. State the reason other sources were not satisfactory.

24. SUBSCRIPTIONS REGISTRATIONS AND MEMBERSHIP FEES

25. Subscriptions Memberships PAY ON VOUCHERREGARDLESS OF AMOUNT & Registrations

26. PURCHASE ORDER CHANGES

27. CHANGING PURCHASE ORDERS Please AVOID if possible • Difficult to change in PeopleSoft • Run PO Status Report • Change Purchase Order • Change Requisition • May involve: • Originator of requisition • Purchasing • Business Coordinator • Receiving Dock • PeopleSoft Systems Analyst • Accounts Payable • Vendor

28. TYPES OF PURCHASE ORDER CHANGES • Add/delete lines • Cancellation of Purchase Order • Cost center changes • Change of merchandise description • Increase/decrease dollar amounts • Increase/decrease quantities

29. RETURN OF MERCHANDISE

30. If for any reason you need to return items ordered on a purchase order… Notify Receiving Dock (x2204 / x2205) within 24 hours of receipt of items. If merchandise has been received and payment has been made, departments are required to contact vendor for refund or credit. Call Purchasing Department for procedures of applying credits to future orders. Department may be required to pay restocking charge. Department may be required to pay returned shipping charges. Purchase orders cannot be changed in PeopleSoft once they are paid and finalized. RETURN OF MERCHANDISE

31. PURCHASES UNDER $500.00RETURNS FOR CREDIT & P-CARD USE • Be sure what you order and receive is what you want. • Departments are responsible for returning merchandise and obtaining credit. • Purchasing and Receiving Dock are not involved in voucher OR P-CARD purchases. THE RECEIVING DOCK WILL PROVIDE A transmittal slip ONLY AT DELIVERY. • Contact your Business Coordinator before processing these type of purchases. • Business Coordinator determines if your department may use A P-Card.

32. SPECIAL PURCHASES

33. RUSH ORDER Unexpected need – Not poor planning within department. EMERGENCY ORDER University will suffer financial or operational damage if goods are not secured immediately. Requestor must furnish justification form. SOLE SOURCE ORDER (Proprietary) Only one (1) item “Like It in the Whole Wide World” Sole Source justification letter is required. SPECIAL PURCHASES DEFINED

34. Purchase order issued for a good or service for which an agency has a recurring need on an “as needed” basis. EXAMPLES: Bottled water delivery, Paper, Toner cartridges Vendor will not accept a purchase order. Vendor requires payment before shipment of merchandise. Check must accompany order. Must use Local Funds PURCHASES FOR PERSONAL USE, DON’T DO IT ! BLANKET ORDER ADVANCED PAYMENT ORDER

35. Departments are encouraged to pick up items from vendor by due date on Purchase Order. Print Receiving Report, sign, scan as a PDF file, send to UHCL A/P and UHCL Procurement mailboxes. BOOK ORDERS Local Funds - Contact UHCL Bookstore directly. State Funds – Purchase Order required. Textbooks (adoptions) – Order from UHCL Bookstore Books that are distributed in classroom at no charge to student may be ordered on purchase order. PICK-UP PURCHASE ORDER

36. HOW TO PRINT RECEIVING REPORTS FOR ITEMS NOT DELIVERED BY RECEIVING DOCK . Steps to Print Receiving Report in PeopleSoft: 1. PeopleSoft Main Menu 2. Custom Reports 3. PO 4. Print PO Receiving Copy 5. Search by Purchase Order PLEASE SEE REQUISITION WORKFLOW TRAINING DOCUMENTS LOCATED ON THE BUDGET OFFICE PAGE OF THE UHCL WEBSITE.

37. PURCHASING GUIDELINES-Ledger 5 The basic purchasing university policies involving expenditure of Research Administration Funds (RAF) (Ledger 5) are as follow: • To abide by the general procurement standards of the Office of Sponsored Programs(OSP) Circular A-110. • To provide free and open competition when and wherever possible. • To provide for sole source procurement. • Approval of Office of Sponsored Programs is required. • Follow University local fund guidelines.

38. ELECTRONIC STATE BUSINESS DAILY

39. Purchases exceeding $25,000 will be advertised a minimum of: 14 days if posting entire bid/proposal package 21 days if not posting entire bid/proposal package Purchases from State (Term) Contracts are not posted to ESBD. ESBD Electronic State Business Daily

40. CMBL & HUB PROGRAM

41. WHAT IS THE CENTRALIZED MASTER BIDDERS LIST (CMBL) ? The CMBL is a master database used by State of Texas Purchasing entities to develop a mailing list for vendors to receive bids based on the products or services they can provide to the State of Texas. It is maintained by Comptrollers of Public Accounts (CPA). This list is used when searching for a vendor that sells a particular item. A search can be done on the CMBL website to retrieve vendor information by a combination of the fields listed below: • VENDOR NAME • FEDERAL EMPLOYER IDENTIFICATION NUMBER (FEIN) • AVAILABILITY OF HUBS • COMMODITY CODE

42. WHO IS A HUB VENDOR? A for-profit business which is 51% or more owned by a Black American, Hispanic American, Asian Pacific American, Native American and/or American woman-owned. Legal source-Texas Government Code, Title 10, Subtitle D, Section 2161

43. HUB Program The HUB program is to promote full and equal business opportunities for minority and woman owned businesses. Each state agency is required by State Law to make a good faith effort to meet or exceed the following goals: State Goals UHCL Goals Heavy construction (other than building contracts) 11.2% 0% Commodities 21.9% 40% Professional Services 23.6% 8% Building Construction 21.1% 20% Special Trade Construction 32.7% 15% Other Services 24.6% 8%

44. UNIVERSITY COMMITMENT • Fair and equal treatment of all vendors • Solicit competitive bids from HUBs • Award bids to those businesses that meet the best value requirement • Departments can help achieve these goals by obtaining quotes from HUBs If you are not aware of a HUB vendor, use the CMBL to search for certified HUBs. http://www.window.state.tx.us/procurement//cmbl/cmblhub.html

45. HUB Recognition State Ranking Percent Year • FY 2012UHCL ranked #20in State26.83% • FY 2010UHCL ranked #7in State 40.14% • FY 2009 UHCL ranked #13in State 34.24% • FY 2008 UHCL ranked#7 in State 37.96% • FY 2007UHCL ranked #5in State 35.82% This ranking is for an agency spending more than $5 million. There were 212 reporting agencies.

46. HUB The University’s focus is: • University annual HUB Fair • Local minority councils-Houston Minority Supplier Development Council (HMSDC) and Women’s Business Enterprise Alliance (WBEA). • Expos sponsored by HMSDC and the City of Houston. • State Economic Forums • HUB visitation • Mentor protégé OUTREACH

47. 1st CHOICEPRODUCTS(Recycled Products)STATE FUNDS ONLY

48. 1st CHOICE (RECYCLED) PRODUCTSAll state agencies are required to purchase 1st Choice Products when using state funds.Per Texas Government Code, Title 10, Subtitle D, Section 2155.448, each fiscal year the CPA, in coordination with the Recycling Market Development Program, by rule, may identify recycled, remanufactured, or environmentally sensitive commodities or services and designate purchasing goals for the procurement of those commodities and services by state agencies for that fiscal year.

49. For fiscal year 2011, the 1st Choice Products are as follow: • Re-refined Oils And Lubricants • Recycled Content Toilet Paper, Toilet Seat Covers And Paper Towels • Recycled Content Printing, Copier, Computer Paper And Business Envelopes • Recycled Paper Must Be Requested For Off-campus Printing • Plastic Trash Bags • Recycled Containers • Plastic-covered Binders • Energy Star Labeled Copiers

50. If the virgin equivalent of the item must be purchased, a letter of justification must be signed by the President of the University and sent to Comptroller of Public Accounts (CPA). If your department needs this letter of justification, please contact the Purchasing Department. The requesting Department will be responsible for obtaining the signature from the President. Notice