PURCHASING PRESENTATION Mike Thueson Jake Mecham

The Four P’s! Purpose Policy Practices Procedure

Purpose – Why We Exist Protect Tithing Funds - Stewardship of BYUI Degree of Separation Management/financial authorization controls Scriptural law of witnesses Mission Statement - web linkweb link Business Professionalism Negotiation experience and skill Analysis Communications/Information sharing Vendor relationship management Leverage/network with the Church, CES, and other purchasing organizations Provide established contracts, pricing, and relationships for many of our campus needs

Policy (University’s Procurement Policy) Purchases from $0 to $2,500 can be purchased with a purchasing card, no quote is required but comparison pricing is suggested, they can also be sent to the purchasing office in the form of a Purchase Requisition (PR). Purchases from $2,500 - $5,000 require a PR, Purchase Order (PO), and 2 verbal quotes. All purchases over $5,000 require a PR, PO, and two written quotes. Contracts $25,000+ & Purchases (POs) $90,000+: must be signed by an executive officer (definitions of contract & PO on web)  Don’t disclose information pertaining to pricing, budgets, or other vendors  The Purchasing Office is authorized to make commitments over $2,500 Exceptions Agency “University policy stipulates that unauthorized purchase commitments are the responsibility of the individual making the purchase and not the responsibility of BYU-Idaho.”

Best Practices for Procurement Organized Processes (RFI, RFQ, RFP) Competition Fairness Legal/Ethical Integrity- policy on information shared Long-term vendor relationship management Best Business Practice - Procedure

Procedure – Simple Purchase Works for consumer buying, not appropriate for institutional buying Expensive Actually more time Inefficient  Submission to the vendor, enslave ourselves  Lack of revelatory process NeedSolutionImplementation

Procedure – Best Case Scenario Control of process, on our terms The “studying of it out” allows for the Revelatory Process Plan Identify NeedTeam Formation Develop Study & AnalysisEvaluation Decision/Vendor Negotiation Execute AcquisitionImplementation Sustain Acceptance/Post Evaluation Long-term Vendor Management

Procedure – Best Case Scenario Flow Identify NeedTeam Formation Study & Analysis Evaluation Decision/Vendor Negotiation Acquisition Implementation Acceptance/ Post Evaluation Long-term Vendor Management

Plan Identify Need Project Charter, Environmental Impact, Strategic Value, Requirements, Specifications, Expectations, SOW Purchasing Involvement Potential Single Source If a need to contact a vendor arises, information sharing/disclosure Determine the right procurement strategy Team Formation Project/ Purchase Authorization  Benefits: maintain BYU-I control and power of information, avoid enslavement, allow for divine guidance

Develop Study & Analysis Develop additional information Plan marketplace involvement (RFI, RFP, Vendor presentations, visits, etc.)  Leverage/network with the Church, CES, and other purchasing organizations Evaluation Reach out to marketplace Solutions from marketplace (Proposal responses) Technical & business evaluation – price, terms, mitigate risk, ethical/legal Decision/Vendor negotiation Control of information is critical Develop implementation plan & schedule  Warnings: pilot, demo, webex, evaluation, commitment Disclosure timing – enslavement, getting hooked on vendor’s terms What not to say/what not to do – (group discussion)  Benefits: flush out issues, concerns, problems, etc. Better informed; mitigate risk, cost, possibility of failure; our terms vs. vendors terms Allows for revelation, inspiration, & guidance

Execute Acquisition Buy – Issue PO/Contract Implementation Implementation plan & schedule Delivery Work kick-off  Benefits: Planned/Smoother implementation Resourced – committed resources Better experience for ALL Communication & understanding is enhanced between vendor & stakeholders Faster deployment & go-live date More efficient Strengthen vendor relations/develop a partnership Maintain control

Sustain Acceptance/Post Evaluation How did it go? How did we all do? What can we learn?  Did the purchase meet our requirements, specifications, expectations, SOW? Is the need satisfied? Did we get what we needed? Long-term Vendor Management Strengthen & maintain vendor relations Maintain integrity & the good name of BYU-I and the Church  Benefits: BYU-I receives a solution to meet our needs, a vendor partnership for future opportunities

Thanks! Please allow us to help with your purchasing needs! Purchasing web link, how to find us on the web: Home page search Employee page: Employee Finances > Financial Services > Purchasing Employee Services ( click “more”) > Purchasing & Disbursements I-BUY (e-procurement marketplace) Questions/Discussion?