 Why code was updated ◦ Procurement code was old ◦ Various high-profile procurement-related issues  Update process ◦ 2012 Legislative Session ◦ 2013 Legislative Session ◦ 2014 Legislative Session  Effective Date: May 1,

 Procurement code declares Board of Regents as Rulemaking Authority  New Regent’s policy delegates this rulemaking authority to each institution 5

 Currently in Stage 3  Posted on the Policy website  New policies ◦ 241, University Procurement ◦ 242, Solicitation and Award of Procurement Contracts ◦ 243, Small Purchases ◦ 244, Requisitions and Purchase Orders ◦ 245, Receiving Goods and Services ◦ 246, Surplus Property 6

 Other affected policies ◦ 204, Appropriateness of Expenditures  Updating references to procurement policies  Updating format  Fixing some minor grammatical and syntax errors  Not changing expenditure procedures ◦ 421, Property and Equipment  Removing Surplus section only  Not updating format 7

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 Split Purchases  Unethical behavior ◦ Accepting Gratuities  Inflating contracts  Bid Rigging 9

 Under the Utah Procurement Code, it is illegal to divide, split, parcel, or manipulate a procurement, with the intent of making a larger purchase appear to qualify as a small- dollar purchase or to avoid an established dollar threshold.  Revocation of privileges (P-card, LPC)  Disciplinary action  Report to AG 10

 All individuals participating in a procurement, including contract administration, must adhere to the ethical requirements outlined in the Utah Procurement Code ◦ Gratuities ◦ Kickbacks ◦ Fairness ◦ Impropriety 11

 Know and obey the letter and spirit of laws, regulations, and policies  Prevent the appearance of unethical behavior  Protect confidential information  Avoid conflicts of interest  Do not accept gifts, gratuities, or kickbacks from vendors which may appear to influence purchasing decisions. 12

 Requisitions should have a good estimated amount ◦ No $1.00 requisitions  Change Orders submitted through website form  Additional items will not be added from invoice  Analyzed to ensure compliance with policies, procedures, and applicable contracts 13

 During a procurement process, no communication with vendors  Vendors must be directed to Purchasing 14

 Mishandling money  Lax control environment  Personal Reimbursements  “Intentional and willful disregard by certain employees for compliance with appropriate practices and policies.” 15

 “Any expenditure external to UVU that cannot be purchased with a limited purchase check or purchasing card must be obtained using a requisition through the Purchasing Department” (Policy 204.V.A.1.g).  Sales Tax.  Lack of proper controls. 16

 Should only be used if the expenditure cannot be feasibly made using an LPC, P- Card, or PO as determined by FaBS and PS.  Include a detailed explanation on the check request.  Check Requests received for reimbursement may be sent to the VP as a violation. ◦ See Policy 204.  Questions regarding Check Requests are referred to Scott Wood. 17

 Protest on I-15 CORE Project ◦ Criteria weighting was changed to favor a vendor ◦ Evaluation factors included in the RFP were not adhered to  Settlement: $13 million 18

 Specifications shall not be unduly restrictive or appear to favor one vendor over another  Rating criteria should be clear and concise  Rules can’t be changed during the process  Analysis on expenditures to ensure fairness 19

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 Emergency procurements are procurements needed due to an emergency situation ◦ Threat to public health or welfare ◦ Serious threat to the functioning of the institution ◦ Procurements made at Purchasing’s discretion  Urgent procurements are procurements that are needed due to a lack of planning or circumstances beyond the control of the requestor. ◦ All procurement policies and procedures must still be followed. 21

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 An unauthorized purchase is a purchase made without following the authorized procurement processes.  An after-the-fact purchase occurs when a University employee places an order without first completing a requisition and receiving a purchase order. 23

 Result in duplicate payments to the vendor, for which the department is responsible.  Result in higher costs for goods and services  Lead to significant vendor payment issues that can result in problems for other departments on campus.  Bypass the appropriate approval process.  Place the University at financial risk and create potential personal liability.  Create additional, often unnecessary, work for administrative support staff. 24

Ways to Avoid Violations:  If you have to place an order, create the requisition right away. Work with the Purchasing Office if you need the order expedited.  You must arrange a payment method BEFORE placing an order. “I didn’t know…,” is not a valid excuse for violating policy. 25

What to do if a violation occurs:  If a violation occurs, fill out all sections of the Purchase Violation Form. ◦ An explanation of why policy was not followed ◦ Future corrective action  Attach invoice and send for authorizing signatures  Vendor is paid  DO NOT enter a requisition. 26

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OldNew  Bid Limit ◦ $3,000 ◦ $5,000 (Construction)  Advertised Limit ◦ $30,000 ◦ $50,000 (Construction)  Small-Dollar Purchase Threshold ◦ $5,000 ◦ $15,000 (Construction)  Large-Dollar Purchase Threshold ◦ $50,000 28

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 Methods: ◦ Purchasing Card (P-Card)  Must comply with P-Card usage guidelines  Default Limit: $1,000 per purchase ◦ Limited Purchase Check (LPC)  Must comply with LPC usage guidelines  Limits: $150 and $500 ◦ Requisition/Purchase Order Process 30

 Default limit: $1,000  Auditing process ◦ New preliminary audit report ◦ Clearer deadlines ◦ Adjustment to the point system 31

 Ordered using a Stores Requisition ◦ Do not mix with regular stores items  Return documentation within five business days  Don’t return unused checks via intra-campus mail  Fewer violations 32

 Requisitions (Req) are not Purchase Orders (PO) ◦ Orders cannot be placed with requisitions  PO must be completed and approved before orders are placed  Orders placed before a PO is completed and approved are violations 33

 Must include all necessary information for purchasing and vendors to understand what is being procured ◦ Minimum specifications ◦ Product numbers and descriptions ◦ Names of individuals and Dates  Memberships, conferences, hotels, presenters, performers 34

 Reqs over the small-dollar purchase threshold  Performed by the Purchasing Office  Quotes gathered from at least two known vendors  Order placed with vendor providing the lowest price  Not required if items are available through a contract 35

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 Requisition/Purchase Order  Invitation for Bid Process  Enhanced Procurement Methods 37

 Publically advertised through BidSync.com ◦ Time frame set by buyer  Minimum ten calendar days  Minimum specifications listed in requisition ◦ Not brand specific ◦ Not unduly restrictive  Awarded to vendor providing lowest price 38

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 Multi-Stage Bid (MSB)  Request for Proposals (RFP)  Multi-Year Pricing Agreement/Contract  Requires justification ◦ Fill out Justification for Enhanced Procurement Method 40

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 Equipment needed to perform specific experiment  Specialized software needed to perform specific function  Specialized services 42

 An MSB is used when potential bidders or potential products must be pre-qualified before requesting priced bids. Objective criteria (pass/fail, quantitative) is used to determine if a potential bidder or potential product meets the minimum qualifications or specifications needed. 43

 Enter a requisition. ◦ Indicate MSB in the comments field  Fill out the Justification for Enhanced Procurement Method  If approved, buyer will provide an MSB Statement of Needs and Rating Criteria document  Work with the buyer to complete the document 44

 Bids performed in two stages ◦ Stage 1: Technical/Qualification  Allows vendors to submit technical (no cost) written bids outlining capabilities and qualifications.  May include demonstrations, presentations, trials, etc.  Bids are rated pass/fail based on meeting qualifications and specifications ◦ Stage 2: Cost bids  Cost bids are requested from vendors that successfully pass Stage 1  Awarded to vendor providing lowest price in Stage 2 45

 Technical bids are evaluated by at least three individuals ◦ Acceptable, Potentially Acceptable, Unacceptable  Discussions with vendors to clarify technical bids may be held during the evaluation process  Minimum timeframe: Two weeks – Stage 1 ◦ Timeframe set by buyer 46

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 In an RFP process, vendors are asked to submit proposals outlining how they would meet or exceed our needs. A committee evaluates the proposals and rates each proposal based on the criteria contained in the RFP. Following the technical evaluation, a cost evaluation is performed. The award is made to the vendor that will provide the best value to the University. 48

 Enter a requisition. ◦ Indicate RFP in the comments field  Fill out the Justification for Enhanced Procurement Method  If approved, buyer will provide an RFP Statement of Needs and Rating Criteria document  Work with the buyer to complete the document  Timeframe: Four to six weeks ◦ Timeframe set by buyer 49

 Evaluation is a three stage process ◦ Stage 1: Technical Evaluation  Proposals are evaluated subjectively by at least three individuals  Each weighted criterion receives a score 1-5  Technical points are combined for each proposal  Committee cannot have access to cost information 50

 Stage 2: Cost Evaluation ◦ The buyer calculates the cost score based on the formula 40 x (2 – Proposed Price / Lowest Proposed Price) ◦ The buyer may work with the committee to clarify proposed costs 51

 Stage 3 – Composite Score ◦ The technical and cost scores are combined to form the composite score  Cost is approx. 30% of total composite score ◦ The contract is awarded to the vendor whose proposal receives the highest composite score  May require a cost-benefit analysis 52

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 The purpose of an RFI is to obtain information, comments, or suggestions from potential bidders before issuing a solicitation. It can also be used to determine whether a solicitation should be issued or to generate interest in a future solicitation. RFIs are not considered a procurement process, but an information gathering process. 54

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 Bid or RFP Completed by the State or WSCA  No additional competition needed  Purchase directly 56

 Department ◦ Elevator Maintenance ◦ Uniforms  Campus-wide ◦ Buses 57

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 Computers ◦ Computer Shop  Printers ◦ HP  Audio/Visual Equipment ◦ Contact Media Services  Furniture 59

 Software, including apps ◦ Software Ordering System  Campus-owned cellphones/aircards  Office Supplies 60

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 Not allowed  Exceptions determined by Purchasing ◦ Deposits ◦ Progress Payments 62

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This is how it works regardless of: Fund source Sourcing method 64

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 Sole source procurement may be used when a requirement is only reasonably available from a single supplier ◦ Availability ◦ Compatibility ◦ Transition costs  Require justification ◦ New Sole Source Justification Form  Not reasons: price, time 66

 Services performed by individuals. ◦ No product ◦ No companies  Requires Responsible Party signature.  Second Level approval required for payments $1000 or more. 67

 Deemed “Independent” by FaBS and Human Resources.  Guest Speakers/Performers are always considered independent.  Form can be downloaded from the Finance and Business Services Website. ◦

 Personal reimbursement program  No P-Card or LPC  Travel Office 69

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