SUPPLY CHAIN MANAGEMENT POLICY

Transcription

1 SUPPLY CHAIN MANAGEMENT POLICY PURPOSE The purpose of this policy is to ensure timely and fiscally sound procurement processes. The University of Texas MD Anderson Cancer Center (MD Anderson) will assume no liability for payment of obligations except those incurred in accordance with this policy. POLICY STATEMENT It is the policy of MD Anderson to purchase goods (to include supplies, materials, and equipment) and services in accordance with statutory and regulatory requirements. MD Anderson will assume no liability for payment of obligations except those incurred in accordance with this policy. Authority to obligate institutional funds (all fund groups) for purchases is granted by the President of the institution; accordingly, only MD Anderson representatives with actual delegated authority may commit the institution to legal and/or financial obligations, including contracts. Vendor agreements for goods, services, maintenance, proprietary licensing, or any other agreements which obligate the funds of the institution in any manner are invalid unless executed by an authorized individual. An individual is authorized to enter into such agreements if delegated authority in writing by the President. If an unauthorized individual enters into such agreements and thereby attempts to obligate funds of the institution, the requested goods or services may be returned to the individual placing the order and the individual may become personally liable for such goods or services. All purchases must be made in accordance with the Procurement Process Decision Matrix maintained by Supply Chain Management (SCM). See the SCM Procurement Process Decision Matrix. It is the policy of MD Anderson to promote full and equal opportunity for all businesses to supply the goods and services required to support the operational, administrative, and logistical mission of the institution. MD Anderson commits to a good faith effort to increase participation by Historically Underutilized Businesses (HUBs) and Small Business Concerns (SBCs) (i.e., small, small disadvantaged, woman-owned, HUBZone, veteran, and service-disabled veteran) in all phases of the procurement process to include bid solicitation and contract award. Such participation shall be consistent with HUB and Federal Small Business Program guidelines and goals. SCOPE Compliance with this policy is the responsibility of all MD Anderson workforce members. Page 1 of 9

2 TARGET AUDIENCE The target audience for this policy includes, but is not limited to, all MD Anderson workforce members. DEFINITIONS Bilateral Agreement: A reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party s act. Buyer: An employee of the Supply Chain Management (SCM) department authorized to issue Purchase Orders (POs), in accordance with their delegation of authority to procure goods and services for MD Anderson using specific funding sources (includes Sr. Buyer; Supervisor, Purchasing Services; Manager, Purchasing Services; and Associate Director, Purchasing Services). Capital Lease: A lease in which the lessor only finances the leased asset, and all other rights of ownership transfer to the lessee. This results in the recordation of the asset as the lessee s property in its general ledger, as a fixed asset. Consulting Services: The service of studying or advising a state agency under a contract that does not involve the traditional relationship of employer and employee. (See Government Code ) Customer: The MD Anderson department requesting that goods and/or services be procured for use by the institution. Electronic Purchase Requisition: An online form used by departments within MD Anderson to communicate to a Buyer or Procurement Specialist its requirement for goods and/or services (also known as an eprocurement requisition). Emergency Purchase Order: Used when delaying an order would subject the institution to a safety hazard, financial loss, or loss of operational capability and processed in connection with the SCM Emergency Purchase Policy. Exclusive Acquisition: The procurement of goods and/or services that exceed the direct procurement dollar threshold of $15,000 from a single vendor without soliciting competitive offers or proposals. This includes proprietary/sole purchases where the product or service is only available for purchase through the specific identified vendor. An Exclusive Acquisition Justification Form must be submitted by the Customer and approved by SCM prior to the approval/dispatch of the PO. Group Purchasing Organization (GPO) is a purchasing program established by (1) a state agency that is authorized by law to procure goods/services for other state agencies, such as the Texas Procurement and Support Services Division of the Texas Comptroller of Public Accounts and the Texas Department of Information Resources, or any successor agencies; or (2) a group purchasing organization in which MD Anderson participates as authorized by Texas Education Code ; or (3) the UT System Alliance. These GPOs leverage the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Operating Lease: A contract wherein the owner, called the lessor, permits the user, called the lessee, the use of an asset for a particular period which is shorter than the economic life of the asset without any transfer of ownership rights. Premier: MD Anderson s GPO. Procurement Card (ProCard): The credit card program for MD Anderson used to acquire a selected group of products/services, usually for small dollar value, one-time purchases, for which there is not an MD Anderson contracted vendor. Page 2 of 9

3 Procurement Specialist: An employee outside of the SCM department authorized to issue POs, in accordance with their written delegation of authority to procure goods and services for MD Anderson using specific funding sources (includes Sr. Procurement Specialist and Contract Administrator). Professional Services: Services within the following scope of practice, as defined by state law: accounting, architecture, landscape architecture, land surveying, medicine, optometry, professional engineering, real estate appraising, or professional nursing, provided in connection with the professional employment or practice of a person who is licensed or registered as either a certified public accountant, an architect, a landscape architect, a land surveyor, a physician (including a surgeon), an optometrist, a professional engineer, a state certified or state licensed real estate appraiser, or a registered nurse. (See Government Code ) Purchase Order (PO): A legal document used to purchase goods and/or services from a vendor that is created from an Electronic Purchase Requisition that describes all terms and conditions of a purchase. Purchase Services: Services for which we are paying an outside vendor to provide system/process, implementation, maintenance and support, and any form of staff augmentation. Service Order: A PO, as defined above, used for the purpose of procuring a service with a dollar and time limitation, predetermined by the Customer. Standing Order: A PO, as defined above, used when there are set delivery dates for a specified list of goods and period of time. Total Contract Manager (TCM): A contract life cycle management software that allows for the proactive, methodical management of a contract through initiation, authoring, negotiations, awards, compliance, and renewal. Unauthorized Purchase: Procurements involving institutional funds by someone who has not been delegated this authority by the President of the institution, or is otherwise in error as set forth in Section 16.0 of this policy. Workflow: An automated approval process in the PeopleSoft application to ensure appropriate authorization has been obtained. PROCEDURE 1.0 Consulting Services 1.1 Consulting Services require a detailed scope of work listing the services the vendor will perform, contract deliverables, and measurable performance standards required from the vendor. Consultant agreements must require the consultant to submit a written report at the end of each consulting engagement. This report is in addition to any other reporting requirements as may be defined in the scope of work or vendor deliverables schedule. 1.2 Consulting Services require a bilateral agreement between the vendor and MD Anderson unless otherwise determined by SCM. 1.3 Consulting Services should be distinguished from Professional Services or Purchase Services as defined above. The department must complete and submit the Consulting Authorization Justification Form to SCM via Total Contract Manager (TCM). Once approved by designated MD Anderson leadership, SCM will process the Electronic Purchase Requisition. 1.4 The Customer is required to document that the required services cannot be provided by current MD Anderson personnel, or from any other state agency, and that there is a Page 3 of 9

4 substantial need for the services. Questions regarding these types of services should be directed to SCM at: 2.0 Electronic Purchase Requisition 2.1 To request the purchase of goods and/or services, Customers are required to submit an Electronic Purchase Requisition via PeopleSoft. 2.2 PeopleSoft will facilitate appropriate Workflow approvals prior to submittal to SCM. 2.3 Electronic purchase requisitions will be processed in accordance with the SCM Procurement Process Decision Matrix. 3.0 Emergency Purchase Orders 3.1 Emergency purchases will be processed in accordance with the Emergency Purchase Procedure in the SCM Emergency Purchase Policy. 3.2 The Emergency Purchase Procedure must only be used outside of Purchasing Services' normal business hours (Monday through Friday, 8 a.m. to 5 p.m.). 4.0 Exclusive Acquisition 4.1 Exclusive Acquisitions may be used in accordance with the SCM Procurement Process Decision Matrix. 4.2 If SCM determines that a purchase does not qualify for an Exclusive Acquisition, SCM will work with the Customer to bid out the purchase, either formally or informally, based on the total dollar amount of the purchase; or SCM may determine that the item may be procured from an existing vendor. 4.3 Specifications may not be written inappropriately, in such a manner as to promote exclusivity and avoid the competitive bidding process. The exclusive nature of the specifications must clearly justify the product or service and designated vendor as being essential to the efficient operating performance of the institution. 4.4 SCM is authorized and required to review and evaluate the proprietary nature of the written specifications and conditions of the purchase. 4.5 See the Exclusive Acquisition Justification Form. 5.0 Inspection of Goods Received 5.1 Customers are responsible for inspecting shipments received for damage and ensuring compliance with Purchase Orders within two business days of receipt. 5.2 If the goods are damaged or incorrect, the Customer is required to immediately contact the appropriate Buyer or Procurement Specialist. Note: Please retain original containers/packing facilities until inspection is completed and any problems are resolved. Page 4 of 9

5 6.0 GPO and Institutional Agreements 6.1 GPO and institutional agreements are existing contracts for goods and/or services that have been previously awarded based on an acceptable procurement process. SCM will determine if it is advantageous to utilize such agreements, which are subject to best value determinations. 6.2 If you need assistance in determining whether an agreement exists for your purchase, please contact SCM at Procurement Card (Credit Card) 7.1 Procurement Cards may not be used to bypass appropriate purchasing procedures. Procurement Card purchases may be limited by merchant commodity codes (type of product or service) and value of the purchase. 7.2 The MD Anderson Procurement Card Program may be used to pay small dollar transactions that are low-volume and non-repetitive. Common instances would be for conference payments and memberships to institutionally approved professional organizations. 7.3 For more information, please visit the Procard page. 8.0 Purchase Order (PO) Changes 8.1 The preferred method for changes to the PO that affect the total amount is for a new Electronic Purchase Requisition to be entered that will be added to the existing PO; however, if a PO is dispatched to the vendor and the vendor s confirmation or invoice(s) total amount is within $250 of the original PO total amount, the Buyer/Procurement Specialist has the discretion to increase the PO. 8.2 Buyer/Procurement Specialists will communicate price increases to the department to prevent future pricing invoice exceptions. 8.3 Verbal requests for PO changes will not be accepted. 9.0 Purchase Order Pre-approvals 9.1 A request to procure certain goods or services such as firearms, non-clinical isotopes, live animals, etc., requires pre-approval by the appropriate functional management department prior to SCM receiving the Electronic Purchase Requisition or beginning the acquisition process. These pre-approvals are processed electronically through a Workflow process. 9.2 The pre-approvals required by this section provide SCM the authority to process the Customer s Electronic Purchase Requisition; however, such approvals do not waive/supersede MD Anderson s procurement process, including any appropriate competitive bidding requirements Purchases from Employees 10.1 Please refer to the Conflict of Interest and Conflict of Commitment Policy (UTMDACC Institutional Policy # ADM0255) for guidance on purchases from employees To request approval to purchase from an employee, you must complete the Request to Purchase from Employee Justification Form. Page 5 of 9

6 10.3 Due to Internal Revenue Service (IRS) guidelines, it is not permissible to pay an MD Anderson employee through the Purchase Order process Once SCM has approved the request to purchase from an employee, a check request must be submitted online to the attention of Purchase from Employees. The check request must indicate in the description area whether the payment to the employee is to be grossed-up for payroll taxes or whether the payroll taxes are to be deducted from the payment Returns 11.1 Customers must contact the vendor to obtain a Return Authorization Number and complete the online Vendor Return Request Form. Vendors usually require products to be returned in the original shipping packaging. The Customer will be responsible for all re-stocking charges, if applicable Goods will not be returned if the value is under $60.00, unless the reason for the return is vendor error Service Orders 12.1 Service Orders require a detailed scope of work listing the services the vendor will perform, the contract deliverables, and measurable performance standards required from the vendor Service Orders require a bilateral agreement between the vendor and MD Anderson unless otherwise determined by SCM Standing Orders 13.1 Standing Orders for goods may not exceed 12 months and must have a current quote or contract indicating that the price of each item will not change during the term listed on the quote or contract A Justification to use a Standing Purchase Order Form must be submitted by the Customer and approved by Purchasing Services management prior to approval/dispatch of the PO Trade-In Equipment 14.1 If, in conjunction with the procurement of goods or services, a trade-in of MD Anderson-owned equipment becomes necessary or desirable, the owned equipment must be fully described on the Electronic Purchase Requisition, including the property identification tag number, along with specifications for the desired new equipment. Description of the equipment offered for trade-in must include its age, condition, manufacturer s make, model, serial number, and estimated current value. This information must also be recorded and approved on the Asset Management Trade-In Asset Form, prior to the creation of the Electronic Purchase Requisition. The completed Trade-In Asset Form must be signed by the property officer/custodian, scanned, and attached to the Electronic Purchase Requisition All agreements that include trade-in equipment must state that equipment transfer is on a "where-is and as-is" basis. The decision to accept or reject an offer will be made by SCM as part of the procurement process. Page 6 of 9

7 15.0 Trial/Evaluation Products 15.1 All goods provided by any vendor for trial or evaluation must be in accordance with the Value Analysis Team Policy (UTMDACC Institutional Policy # ADM0130) If SCM approves the acceptance of the goods for trial or evaluation, MD Anderson's Product Trial Agreement Form must be signed by the vendor and the respective SCM Contract Manager prior to the commencement of the trial or evaluation Unauthorized Purchases 16.1 Only certain employees have the authority to obligate funds of the institution. This delegated authority originates in writing from the President. Attempting to authorize funds without this designation is considered an Unauthorized Purchase, and the individual may become personally liable for payment of the goods or services Some common examples of Unauthorized Purchases are: A. Placing an order with a vendor using a PO number that has not been dispatched. B. Placing an order with a vendor using a PO that is closed or does not have enough funds to cover the amount of the purchase. C. Placing an order with a vendor using a number that is not recognized as a PO number such as a person s name, account number, etc Equipment Leasing 17.1 MD Anderson may enter into Operating Leases after conducting a lease versus buy analysis Operating Leases must comport with Financial Accounting Standards Board (FASB) Statement 13 and must be approved by MD Anderson s Office of the Comptroller before a lease may be executed An Operating Lease is a contract and therefore is subject to delegation of authority provisions Operating Leases should be paid by Purchase Order to ensure accurate managerial accounting of lease payments Operating Leases are an off balance sheet liability, which must be reported annually to the state of Texas MD Anderson may not enter into a Capital Lease Vendor Performance Management 18.1 MD Anderson is required to monitor and manage the ongoing performance of vendors in accordance with the known business and legal risks that are documented in the contracts and the terms and conditions Vendors are principally managed through the customers evaluation and acceptance of a contractual deliverable, which may be a good or a service. Customers with non-conforming vendor deliverables may contact SCM to engage in remediation. Page 7 of 9

8 18.3 MD Anderson Supply Chain Management, the Customer, and the Vendor may develop vendor performance management tools which may take a number of forms such as defined deliverables, key performance indicators (KPIs) and Service Level Agreements (SLA), as well as defined acceptance testing criteria in the contract statement of work The KPIs and SLAs should be objective, specific, and measurable and should comport with the scope, value and risk of the contract The vendor or Customer may be required to track vendor performance and submit performance reports, as well as corrective action plans to MD Anderson. Page 8 of 9

9 ATTACHMENTS / LINKS Asset Management Trade-In Asset Form. Consulting Authorization Justification Form. Exclusive Acquisition Justification Form. Procard page. Product Trial Agreement Form. Request to Purchase from Employee Justification Form. SCM Emergency Purchase Policy. SCM Procurement Process Decision Matrix. Justification to use a Standing Purchase Order Form. Vendor Return Request Form. RELATED POLICIES Conflict of Interest and Conflict of Commitment Policy (UTMDACC Institutional Policy # ADM0255). Value Analysis Team Policy (UTMDACC Institutional Policy # ADM0130). JOINT COMMISSION STANDARDS / NATIONAL PATIENT SAFETY GOALS None. OTHER RELATED ACCREDITATION / REGULATORY STANDARDS Government Code Government Code Texas Education Code REFERENCES None. Page 9 of 9

10 POLICY APPROVAL Approved With Revisions Date: 12/21/2017 Approved Without Revisions Date: Implementation Date: 12/21/2017 Version: 23.0 RESPONSIBLE DEPARTMENT(S) Supply Chain Management Page 10 of 10