PURCHASING PROCESS & GUIDELINES Policy Id: Bus.001 Purchasing Process and Guidelines Contact: Last Modified: July 2013
CONTENTS: Policy Statement 1 Related Documents 1 Contacts 1 Policy 3 Overview 3 Requisition Process 3 Purchase Request Information 3 Submission of Request 4 Authorized Purchasing Representatives 4 Prohibited Items 5 Items Requiring Additional Approval 5 Purchasing Guidelines 7 Purchases/Payments not to exceed $250 7 Purchases Between $250 - $5,000 7 Purchases Between $5,001-$19,999 9 Printing Between $10,000-$19,999 9 Purchases $20,000 and Above 9 Split Ordering 9 Prompt Payments 10 Fiscal Year End Cut Offs 10 2
PURCHASING PROCESS & GUIDELINES : Overview: The procurement process originates when an approved Requisition is submitted into the e-procurement System (EPS). The College uses CUNY s web based EPS to process all Tax Levy, Technology Fee, and Minor Repair purchases. All purchase requisitions are to be approved by senior administrators or their designees. Only the Purchasing Department is authorized to issue orders and enter into contracts and agreements with vendors. Please complete the Authorization for E-Procurement form if you need access to EPS. Requisition Process: Purchase Requisition Information A Purchase Requisition must include: A description of the item or service (model #, dimensions, color etc.) A reasoned justification of its necessity in the performance of college business. Your Vice President will be better informed and Business Services will have a justification during an audit. As examples, a simple statement will clarify an issue "plants being purchased by the Science department are for class analysis and not intended for use as office decor which is not permitted"; or a project listing will tie an expenditure to an outcome - when ordering paint, Buildings and Grounds should indicate the office(s) or area(s) to be painted. If known, a Purchase Requisition should also include: Vendor name, address, a specific company contact name, phone and fax numbers, and company's federal tax payer ID#; Order or confirmation number if order has been placed. Persons Authorized to Purchase on Behalf of John Jay College: There are only four State authorized college representatives who may purchase on behalf of John Jay College The Senior Vice President, the Executive 3
Director of Business Services, the Director of procurement and the Purchasing Manager. These college representatives are solely authorized to sign Purchase Orders generated by the Purchasing Unit in response to Purchase Requisitions that have been appropriately approved and processed. Bulletin No. G-195 from the Office of the State Comptroller clearly states: "any employee who directs a vendor to start providing goods or services without appropriate approval may be personally liable for any indebtedness that is ultimately held to be owed to the contractor." Should an employee choose to place an order with a vendor without written approval from their chair/director and their Vice President in the form of a signed Purchase Requisition, the College is under no obligation to honor that order and pay the vendor. The employee should be prepared to personally assume the liability to the vendor. Should an employee choose to purchase an item with his or her own funds rather than prepare a Purchase Requisition, the College is under no obligation to honor a request for personal reimbursement. Faculty or staff who chooses to purchase office supplies in lieu of ordering from the Stockroom must explain the need to purchase from an outside vendor as well as the need for the item(s) to their Vice President. The employee should also be prepared to personally assume the liability for payment for their personal preference. Prohibited Expenses The College is under no obligation to purchase or reimburse for the following: Tax on an item Alcoholic beverages Pictures or frames for office decor Plaques or awards for students, faculty, or staff Home office furnishings (computer tables, file cabinets, snack trays) Coffee service to individuals or departments Imprinted items other than for admissions/recruitment (-pens, shirts, calendars) Textbooks Some special educational programs (such as SEEK, College Now and the like) receive OTPS funds to be used toward the purchase of textbooks for students. Texts, like any other item, should be ordered following Purchasing guidelines to assure the best price. Barnes and Noble is the College's official bookstore - they are the sole authorized vendor allowed on campus to sell texts and related college items to students. The bookstore contract committee received bids from bookstores and chose the one that would provide the best benefits and services to our students. This does not mean that Barnes and Noble provides the best price on each textbook. Thus, those who are authorized to buy texts for students 4
with tax levy funds should follow the purchasing guidelines set forth below. Purchasing Guidelines The dollar amounts noted below refer to the gross total of the order to be placed NOT the price of an item. For example, if you are ordering 5,000 health booklets @ 50cents per booklet, your order is not looked upon as a 50 cent order but as a $2,500 aggregate order; thus you should follow the directions in Section B. Purchases/Payments not exceeding $250 1. Purchase Requisition completed as noted above 2. Signed invoice(s) and packing slip(s). Purchases Between $250 - $5,000 1. As per New York State Procurement guidelines, it should be determined if goods or services could be obtained through a NYS preferred source (Corcraft, Industries for the Blind of New York State, New York State Industries for the Disabled and Office of Mental Health). These vendors should be contacted in the specific order listed. 2. If none of these sources is able to provide the goods or services requested, it should be determined if the goods or services might be obtained via a NYS centralized contract. You can find NYS contracts on the Internet at www.oqs.state.nv.us. You may also utilize Federal GSA, City of New York, Board of Education, and any other State's pre-approved contracts. The order of preference is as follows: New York State - provide contract number (normally shipping charges are not allowed) New York City - provide contract number and pricing page Federal General Services Administration (GSA) - provide contract number, cover page and pricing list with specific items indicated Board of Education- provide contract number, cover page and pricing list with specific items indicated Any other State's pre-approved contract 3. If a purchase cannot be made by using a NYS contracted vendor, the requesting department (Purchasing Department will provide assistance) must establish the reasonableness of price by one of the following justified methods: Vendor providing a discount from published retail price. State the specifics on the requisition. 5
Vendor providing an educational discount. State the specifics on the requisition. Vendor previously provided approved services - quote a previous order from within a fiscal year (i.e., bid completed within past several months and current price remains the same or less) - state this on the requisition. Reference the previous purchase order number on the requisition. Vendor quoted the best price from among three vendors - for purchase of merchandise up to $5,000 contact at least three vendors for price quotes. Fill out the Summary of Quotations form (see attached) and attach the completed form to the requisition. The written quotations/proposals (attached to the requisition as evidence) will ensure that both parties clearly understand the scope of service as well as all terms and conditions. 4. Actual or estimated shipping charges should be included for inside delivery (as required) and must be indicated on the requisition. Special instructions regarding installation appointments, staff pick-up, specific time for delivery, etc Purchase Between $5,001 -$19,999 If merchandise or services are not from an existing contract (State, City, GSA, etc.), the Purchasing Unit MUST prepare an Invitation to Bid form (ITB) and mail it to a minimum of five vendors. These are written sealed bids that will be analyzed by the Purchasing Unit for compliance. A Purchase Order will be issued to the lowest responsible bidder. This process usually takes about two weeks. Printing Between $10,000 - $19,999 After following bid procedure outlined in Section III, the Purchase Order must be sent to Albany for prior approval before sending confirmation of award to the vendor. Purchases $20,000 and Above NOTE: If this type of procurement is not on New York State, City, Board of Education, or GSA or any other State's pre-approved contract, the minimum lead time required is (6) months. 1. Detailed specifications and justification are required from the department. 2. (The Purchasing Unit can assist in the specifications and justifications, especially if there have been similar recent purchases within CUNY.) 6
3. Purchasing will prepare and submit a CUNY Board Resolution in accordance with CUNY Board of Trustees meeting schedule. 4. Purchasing will prepare contract documentation for approval "As to form" by the CUNY Office of General Council. 5. Purchasing will advertise in The New York State Contract Reporter. 6. After public bid opening and approvals from CUNY's Board of Trustees, New York State Office of the State Comptroller, and the New York State Attorney General's Office, the contract will then be awarded. Split Ordering Splitting purchases at any threshold to circumvent the procurement process is prohibited. Knowingly treating purchases of similar goods/services as separate orders is a violation of procedure. Payments Prompt payment legislation requires the college to pay vendors in a timely manner (this includes payment to the College Bookstore as well as MBJ Catering). Receiving reports should be forwarded as soon as possible to the Accounts Payable department. If the Purchasing Unit must pay interest to a vendor as a result of late submission of an invoice or receiving report by the ordering department, the interest will be added to the cost of the item and deducted from the department's OTPS account. 7