EBC PROCUREMENT GUIDELINES JANUARY 2017 UPDATE

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Elinor Simon
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1 EBC PROCUREMENT GUIDELINES JANUARY 2017 UPDATE State procurement laws have been changing along with the University of Utah s required and/or preferred methods of purchasing. It is important to follow procurement guidelines. Please work with your department accountants for guidance before you make purchases. You always need to fill out a Request for Purchase form and get it signed by your supervisor or manager before making a purchase. The accountants will help you work with Purchasing for any purchases that you may have questions about. See the RFP form below that is used by KUER, Jo Ann and Jessica from UETN and by KUED staff for non-technical purchases. For Technical purchases, use the Request for Purchase forms that are provided by Sheralyn and her group of accountants. At least 3 bids are required for all purchases, whenever possible, if you are not using a sole source vendor or a state contract vendor, with your RFP form when you submit it to Accounting. Then we know you have looked for the best price for the item(s) you want to purchase. If one of the 3 bids is from a business that is owned by a relative of an EBC employee, the purchase decision must be made by someone other than the employee. It would be a violation of the State Ethics Act if an employee steered business to a family member. All computers must be purchased through Jill Doty. This includes Apple computers that will be purchased through the University Campus Store. Please look over the new procurement guidelines and consider using state contracts or University of Utah services for your purchases when possible. Below is a link to the University of Utah procurement website which has links to all of this information. Guidelines for making a purchase. Quick Guide - Making a Purchase If you have a purchase that will amount to more than $5,000 in total, to one vendor, it must go through purchasing to go out to bid or obtain a PO with a state contract vendor (State Contract Search ). If you have a purchase for over $5,000 using a vendor that isn t a state contract vendor and that vendor is the only

2 vendor for the purchase, you will be required to justify that on a Sole Source request form (see below). The form includes requirements that must be met to justify this type of purchase. If you have an emergency purchase over $5K, purchasing will work with you to get you what you need and may make the purchase for you. But you must plan ahead. Purchasing needs time to consider your request. At least 3 bids are required, whenever possible, if you are not using a sole source vendor or a state contract vendor. Purchases over $50,000: Purchasing must solicit bids unless it meets an exception criteria. You must set up an unbiased evaluation committee to review the bids that come back from Purchasing in order to promote competition so the University gets the highest quality product at the best price. You are required to go with the lowest responsive and responsible bid unless you can justify going with a higher bid based on the specifications listed on the purchase order. You cannot accept gifts or meals from a vendor that would improperly influence or reward you if you have purchasing authority. UETN and UIT are not to accept any gifts, regardless of value. KUED and KUER are following the guidelines that an occasional non-financial gift with an annual accumulated value of less than $50 is ok. The limit for a one-time gift is $10. Sole Source purchases over $50k need to be posted for 7 days before being awarded. Check in advance with your Accounting Department before assuming your vendor will be considered sole source by Purchasing. Plan ahead the bid process can take 6 weeks or more. Your Request For Purchase must include: Ø Specification details Ø Criteria that will be used to evaluate proposals Ø (Optional) Contact information for vendors that you want Purchasing to solicit for bids See this link for Purchasing bid limits Purchasing Bid Limits The Purchase Card department monitors activity on cardholders accounts. To ensure the integrity of the University Purchasing Card Program, they will contact you and your department to inquire if a transaction(s) was appropriate and authorized per procurement guidelines.

3 They will contact a cardholder concerning multiple charges to a merchant made on the same day or within a period of time that accumulate to an amount over a cardholder s limit and/or $5k. These transactions appear to be a split transaction and you may lose your purchase card. Purchasing Card Website Plan ahead: if over a fiscal year multiple pcard charges to a single merchant will accumulate to over $5k, inquire about setting up a PO. Violations of State procurement laws can have personal liability if violated There are criminal penalties for Order Splitting. Don t split orders when using your purchasing cards or Ushop for non-catalog orders to avoid exceeding $5,000 when making a purchase, See the link below for an explanation of unlawful conduct and penalties relating to the violation of the Utah Procurement Code. Title 63G Chapter 6a Part 24 See the link below for the full State Procurement Law State Procurement Law. Title 63G Chapter 6a Multi-Year Contracts 5 year limit unless Industry Standard or other business reason. Check with your Accounting staff for assistance. Plan ahead for renewing Contracts. There are limitations on extensions without competition. Check with your Accounting staff for assistance. Purchasing has restrictions on prepayments to Vendors. Check with your Accounting staff for assistance. Remember, we are here to assist you with your purchasing needs. Let us know if you have questions or concerns. Lisa and Becky and the accounting staff.

5 SOLE SOURCE REQUEST FORM ALL SOLE SOURCE REQUESTS OVER $5,000 MUST BE PRE-APPROVED BY THE PURCHASING# DEPARTMENT.# A Sole Source Procurement is appropriate if Purchasing approves in writing that: (a) there is only one source for the procurement item; (b) the award to a specific supplier, service provider, or contractor is a condition of a donation that will fund the full cost of the supply, service, or construction item; or (c) the procurement item is needed for trial use or testing to determine whether the procurement item will benefit the procurement unit. The following does not meet the requirements of a sole source procurement: o An urgent or unexpected circumstance or requirement for a procurement item. o The only supplier in Utah. o Personal preference with a single supplier. o Business needs alone do not meet the legal criteria for sole source purchase without also o meeting one of the particular sole source criteria. Price, promo discounts, quote expiration, etc. (Final price is negotiated after sole source approval but is not considered as a sole source criteria). Please see Utah State Law 63G-6a-802 below for questions regarding the State Law requirements for award of sole source procurement and University Rule R3-100B (links listed at bottom of form). A Sole Source request for a purchase valued at $50,000 or more is publically posted on the Purchasing Department s website for 7 consecutive days. This is required by the Utah Procurement Code and University Regulations to allow for public/supplier input. An emergency as defined by University Policy as a threat to public health, welfare, safety, property, or other harm including risk of causing financial harm to the University or significantly disrupting University operations. Emergency procurement requests should be made directly to the Purchasing Department, , and should not be made using this form. Instructions: Complete each section and provide as much information as needed to fully respond. Department Name: Requisition Number: Department Contact/Requestor (include first and last name, phone number, and address): Description of Product / Service to be Purchased: Total Cost for the Purchase or Total Cost for Entire Term of the Contract: Supplier Name:

6 Quotation/Scope of Work/Detailed Specifications from Supplier are attached. Yes Define why there is only one source by checking all that apply below and completing the corresponding action at the right. There is only one source for the procurement item. Compatibility with existing equipment, technology, software, accessories, replacement parts, or service, including professional services, is the paramount consideration. Transitional costs from existing equipment, technology, software or a service including professional services are unreasonable or cost prohibitive. The award to a specific supplier, service provider, or contractor is a condition of a donation that will fund the full cost of the supply, service, or construction item. A procurement item is needed for trial use or testing to determine whether the procurement item will benefit the business unit. Complete section A Complete section B Complete sections A and B Complete section C Complete section D Please complete all fields in your selected section(s) below. Requests missing information will be returned to requestor for completion. Section A: ONLY ONE SUPPLIER 1. Explain in detail why the service or product is only available from a single supplier. For equipment, please define in detail the proprietary specifications and how they apply to your intended use. Explanation must include a statement that the requester validates this is the only source. 2. Explain why variations or modifications cannot be made to the product/service in order to allow for competition. 3. Explain the market research performed to make the sole source recommendation? 4. List the names of other similar vendors contacted, contact person(s), and a summary of their response, if there is only one source for the procurement item. 5. Complete disclosure must be included with this request if the requestor has any personal, financial, or fiduciary relationship with the recommended vendor. (Please Attach) Section B: COMPATIBILITY OF EQUIPMENT/TRANSITIONAL COSTS 1. Describe the existing equipment, technology, software, accessories, replacement parts, or service, hereafter referred to as equipment, with which this purchase must be compatible; include original purchase price and date of purchase for the existing equipment. 2. Please supply the following: a. Requisition number and/or PO number for the existing equipment b. Asset number for the existing equipment

7 3. What is the actual or estimated remaining life expectancy of the existing equipment? 4. What are the transitional costs for moving to new equipment? (please see Utah State Code 63G-6a-802: Title 63G Chapter 6a Part 8 Section 802 for definition of transitional costs) a. Cost Benefit Analysis (required as part of transitional cost justification) Section C: THE AWARD TO A SPECIFIC SUPPLIER, SERVICE PROVIDER, OR CONTRACTOR IS A CONDITION OF A DONATION THAT WILL FUND THE FULL COST OF THE SUPPLY, SERVICE, OR CONSTRUCTION ITEM Is the award to a specific supplier, service provider, or contractor a condition of a donation that will fund the full 1. cost of the supply, service, or construction item? 2. Who made the donation? 3. Documentation and terms of donation specifying the named supplier is attached. Section D: A PROCUREMENT ITEM IS NEEDED FOR TRIAL USE OR TESTING TO DETERMINE WHETHER THE PROCUREMENT ITEM WILL BENEFIT THE BUSINESS UNIT 1. Why is the trial use or testing necessary? (Explain the purpose of the trial use or testing of the procurement item.) 2. What is the anticipated end result of the trial or test? 3. Do any other similar vendors provide this product or service? a. If yes, list the company names: b. Will their products be tested? 4. What criteria were used to choose this vendor? 5. What is the scope, size, and location of test or trial? 6. Contracts for trial and testing must follow the criteria listed in Utah State Law 63G-6a (see below). Yes 7. The period for a trial use or testing of a procurement item under a trial use contract may not exceed 18 months, unless the procurement officer provides a written exception documenting the reason for a longer period. Note: Contact the purchasing department when trial period is almost over or has ended for further procurement requirements if the trial product or similar product is desired. Yes Reference State of Utah Procurement Code)

8 63G-6a-802. Award of contract without competition -- Notice -- Extension of contract without engaging in standard procurement process. Title 63G Chapter 6a Part 8 Section 802 Reference University Procurement Rule University Rule 3-100B: Solicitation of Bids, Proposals, Sole Source and the Award of Procurement Contracts. University Rule 3-100B Version: July 2016

This policy will outline the requirements for competitive bids on goods and services purchased by the College.

This policy will outline the requirements for competitive bids on goods and services purchased by the College. Policy Name: Procurement Sole Source/Competitive Bid Policy Updated/Reviewed: August 10, 2017 Effective Date: November 15, 2010 Office with Primary Responsibility: Procurement Services Offices with Secondary