I. Procurement. Procurement Authority. Ethical Conduct, Conflict of Interest. DU Procurement Policy

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1 I. Procurement Procurement of goods and services for the university must be conducted in an open and competitive environment to ensure that prices paid are fair and reasonable. Purchasing activities are conducted in Procurement and Contract Services as well as by academic and administrative departmental employees. Purchasing activities include obligations for proper transaction documentation, fiscal responsibility, ethical behavior, adherence to federal and state government regulations, and compliance with University policies. Procurement and Contract Services provides support to the University community in the selection, acquisition, use and disposal of goods and services by: A. Maximizing the university s purchasing power by focusing on strategic sourcing and obtaining the best value B. Leveraging its expertise in contract negotiations and supplier management C. Streamlining processes and investing in new technologies to provide administrative efficiencies D. Ensuring that purchases are made in accordance with all applicable university policies, laws, regulations, codes, and ordinances E. Minimizing risk exposure while maintaining flexibility in procurement activity II. III. IV. Procurement Authority The Limits of Authority Policy authorizes specific officers and employees to enter into contractual and other obligations on behalf of the University of Denver (Colorado Seminary) (the "University"). The following designations of authority are intended to recognize the scope of responsibility of University employees, control the creation of unauthorized or unintended liabilities, and maintain the orderly conduct of the University's business affairs. This policy also provides for a review procedure for certain types of contracts. Taxes The University of Denver is exempt from State of Colorado and local sales tax when the purchase is used for educational and charitable purposes. To receive tax exemption purchases must be delivered to a DU address. The University s tax exempt number should be provided to suppliers when making purchases. Ethical Conduct, Conflict of Interest A. Unless specific written exception has been obtained from the Vice Chancellor for Business and Financial Affairs, no employee, officer, or agent of the University shall participate in the selection, award or administration of purchases or contracts where 1 P age

2 to their knowledge the employee, their immediate family, or partner has a financial interest in the supplier's organization. B. Employees, officers, and agents of the University shall neither solicit nor accept cash, gratuities, favors, or anything of monetary value from suppliers or potential suppliers. C. To insure objectivity and eliminate unfair competitive advantage, suppliers who participate in the development or drafting of specifications, requirements, request for quotes, or request for proposals should be excluded from competing for business related to their participation. D. Employees, officers, and agents of the University who knowingly violate this policy will be subject to such disciplinary actions as deemed appropriate by the Vice Chancellor for Business and Financial Affairs. V. Confidentiality University employees must handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. University employees may not tell outside parties the prices, terms, or conditions quoted by other suppliers. Procurement and Contract Services must pre-approve all communications with outside parties regarding potential or anticipated procurement-affiliated relationships. VI. VII. Purchasing that Reflects the University s Values Inclusiveness, integrity and innovation are central to the University s mission. The University is committed to providing business opportunities to suppliers who help the University honor these values. Competitive Bidding Guidelines A. Good business practice and the responsibility for the expenditure of University funds dictate that the University follows a policy of obtaining competitive bids/quotations. In so far as practicable, purchases shall be made on the basis of competitive prices, considering quality, suitability, delivery and service. University policy requires acceptance of the best bid, prices and other factors considered. B. The following minimum guidelines have been established to promote competitive bidding. Requisitioners should realize that these are minimum requirements and that bids should be solicited, whenever the item(s) can be purchased from several different, responsible suppliers. Upon request Procurement and Contract Services will assist departments in locating potential suppliers and obtaining pricing and product availability information. C. To insure objectivity and eliminate unfair competitive advantage, suppliers who participate in the development or drafting of specifications, requirements, request for quotes, or requests for proposals should be excluded from competing for business related to their participation. 2 P age

3 VIII. Bid Levels A. No Quotes Required -Not To Exceed $5,000 Purchasing may solicit bids when it is determined by the Director of Procurement and Contract Services to be in the best interest of the University. B. Verbal Quotations- $5, $25,000 All purchases over $5, but not exceeding $25, require at least two (2), and preferably three (3) quotations from responsible vendors. The quotations may be in writing, via telephone, or via facsimile. If by telephone, a complete record of the transaction must be maintained, to include, as a minimum, the following for each supplier contacted, including suppliers from whom quotes were solicited, but did not bid or respond: i. Supplier Name ii. Quoted By (Name) iii. Date of Quotation iv. Quoted Price Requisitioners may directly solicit bids or request that Purchasing and Contract Services solicits bids and provides a tabulation of bids for the requisitioner's review and evaluation. If the low bid is found unacceptable because of some factual circumstance, the department head or principal investigator should write a clear, concise, and factual justification for not accepting the lowest bid. C. Written Quotations Over $25,000 All purchases over $25, require at least three (3) quotations from responsible vendors. The quotations may be in writing or via . Requisitioners may directly solicit bids substantively following the guidelines below, or request that Procurement and Contract Services solicits bids and provides a summary and copies of quotes for the requisitioner's review and evaluation. D. Documentation for purchases over $25,000 shall include the following: i. Copy of the "Request for Bids" or the letter soliciting quotes. ii. Names and contact persons for suppliers solicited. iii. Copy of quotes from all responsive suppliers. iv. Basis for supplier selection and award price. v. Justification for lack of competition when competitive bids were not obtained. E. Solicit Bids-Solicitations for quotes or proposals shall set forth all requirements that the bidder must fulfill for their bid to be evaluated by the University. Solicitations should be based upon a clear and accurate description of the technical requirements. i. Complete information should be provided including, but not limited to, quantity, description, delivery requirement, special conditions, drawings, specifications, bid due date and time, etc. ii. Specifications or requirements should not unduly restrict competition. iii. Whenever a "brand name or equal" description is used to define performance or other salient requirement, the specific features of the named brand must be clearly specified. 3 P age

4 IX. F. Evaluate Proposals-When evaluating quotes, consideration may be given, but not necessarily limited to some or all of the following: i. Price ii. Bidder's previous record of performance and service. iii. Ability of bidder to render satisfactory service in this instance (i.e., training, maintenance and repairs). iv. Availability of bidder's representative to call upon and consult with the end users. v. Quality and conformance to specifications. vi. Delivery Schedule vii. Life Expectancy viii. Warranty ix. Disposal Value G. If the low bid is found unacceptable because of some factual circumstance, the cognizant principal investigator or department manager should write a clear, concise and factual justification for selecting other than the low bid. H. Unsuccessful vendors shall be notified that the bid is closed and awarded. It is not necessary to note the successful bidder. I. The University reserves the right to reject any bids, waive informalities and award the contract in the best interests of the University. Sole Source Purchasing A sole source purchase is one where an item can only be purchased from a single source. This situation makes it impossible to obtain competitive bids. The requisitioning department shall furnish documentation to justify why the technical characteristics inherent in the item make it essential to purchase that item in preference to another brand of lower cost but similar capabilities. Written documentation of some form of price or cost analysis is required on all sole source purchases with an aggregate expenditure in excess of $5,000. Appropriate documentation may include copies of published price lists, advertised pricing in established magazines, journals, and newspapers, and similar indices. Final responsibility in determining whether an item is a proprietary item and may be purchased from a sole source rests with the Assistant Director of Procurement and Contract Services or their designee. X. After the Fact Purchases An After-the-Fact (ATF) purchase occurs when an organizational unit makes a commitment over $5,000 before PCS issues a purchase order. For example, authorizing a vendor to begin work before the PCS issues a purchase order even though the organizational unit has submitted a requisition is an ATF. 4 P age

5 Similarly, obtaining goods or services on credit and subsequently submitting the invoice for payment is an ATF. An ATF is the personal obligation of the individual who ordered the goods or services and incurred that obligation unless the ATF is reviewed and approved in accordance with the following procedures. An ATF must be approved in order for the University to process the vendor s invoice. A. Identification and Notification of After-the-Fact Purchases i. ATFs may be identified by the initiating organizational unit or by PCS. When an ATF is identified by PCS, PCS notifies the organizational unit, copying the appropriate Division lead or director. ii. The organizational unit must investigate and explain the ATF by submitting an After the Fact and noting it in the requisition. The requires the following information: Description of the ATF Requisition number in the subject field of the Explanation of why the ATF arose before the purchase was authorized Evaluation of pricing Confirmation that the organizational unit has the available resources to pay for the ATF Description of preventive steps B. Processing of After-the-Fact Purchases i. Review and approval of the After the Fact form is accomplished by PCS. ATFs of $50,000 or less must be approved by the Shared Services Director or designee. ATFs over $50,000 must be approved by the University Controller or delegate. ii. All vendor inquiries must be handled by the initiating organizational unit. Vendor inquiries will be handled by the PCS only after completion of the ATF process and then only if the ATF is approved. iii. If the ATF is approved, the After the Fact requisition will be processed by the PCS into a purchase order. iv. If the ATF is not approved the individual(s) responsible for ordering the goods or services and incurring the unauthorized obligation must either: a. pay for the purchase personally, without reimbursement from the University; or, b. return the purchased goods to the vendor, explaining that the University is under no obligation to pay for them. C. Exceptions -There are no exceptions to this procedure. XI. Unauthorized Commitments The primary responsibility of Procurement and Contract Services is to ensure the proper, prompt and responsive purchasing of all supplies, equipment, material, and services for the various departments in accordance with the federal regulations and the policies and procedures promulgated by the Board of Trustees and the University Administration. This charge applies to 5 P age

6 all University funds be they University appropriated, Federal, or gift. Therefore, all purchasing activity shall be done either by the Assistant Director of Procurement and Contract Services or under their direct order, guidance, supervision, or approval. The University cannot and will not be obligated for supplies, equipment or services, except those legal obligations created by Procurement and Contract Services. Any commitment incurred otherwise shall be a personal obligation of that employee. X. References: A. University Policies: Alcohol Purchase ( ) Allowable Business Expenditures ( ) Gifts and Gratuities ( ) Official Function/Entertainment ( ) Property Control ( ) Propriety of Expense ( ) Supplier Code of Conduct ( ) Travel Expense Policy ( ) Code of Business Conduct ( ) Conflicts of Commitment and Interest ( ) Limits of Authority ( ) 6 P age