Procurement Code Revisions Campus Training

Audit of Utah’s Department of Alcoholic Beverage Control Operational Audit – processes Violated “Open Meeting” Laws Conflicts of Interest – Commissioner’s owned businesses in which the DABC did business – wasn’t disclosed. Fair bid practices were not conducted Real estate acquisitions were not per state guidelines

Sole Source Procurements A formal letter must be provided to the Purchasing Office which will include an explanation on why there are no other possible sources. Where a Sole Source has been authorized, the project must still be posted for public view for 10 days prior to moving ahead. Purchases that cannot be considered “Sole Sources” Software Consultants Most Service Programs

Request for Proposal – RFP’s RFP Request Form must be completed prior to project start Proposal Analysis – Two-Step Process. Selection Committee will evaluate and select a proposal WITHOUT pricing or cost data. Prior to award, a complete Cost Analysis (value to the campus) will be completed.

Leasing – Code 63G-6a-1209 “Procurement Officer determines that it is in the best interest of the procurement unit to lease the procurement item, after the procurement officer Investigates alternative means of obtaining the procurement item; and Considers the costs and benefits of the alternative means of obtaining the procurement item; All conditions for renewal and cost are included in the lease; The lease is awarded through a standard procurement process…; The lease is not used to avoid competition…”

Contract Prepayments 63G-6a-1208 “A procurement unit may not pay for a procurement item before the procurement item is received by the procurement unit, unless the procurement officer makes a written finding that it is necessary or beneficial for the procurement unit to pay for the procurement item before the procurement item is received by the procurement unit” Exceptions – When it’s “customary in the industry to prepay for a procurement item” If the “Procurement Unit will receive an identifiable benefit by prepaying…” A prepayment request by a vendor will require them to provide a 100% performance bond

Gratuities and Kickbacks 63G-6a Hospitality Gift – Under $10 – “a promotional or hospitality item, including, a pen, pencil, stationary, toy, pin, trinket, snack, nonalcoholic beverage, or appetizer” – Does NOT include “money, a meal, a ticket, admittance to an event, entertainment for which a charge is normally made, travel, or lodging” SUU Employees are “Procurement Participants” Section 3 and 4 – Unlawful to offer or accept a gratuity Total Hospitality Gifts from a single person or vendor per calendar year - $50 Philanthropic exceptions All Vendors must contact the Purchasing Office prior to coming on campus

Gratuities and Kickbacks – Penalties A person who violates this section is guilty of: a felony of the second degree if the total value of the gratuity or kickback is $1,000 or more; a felony of the third degree if the total value of the gratuity or kickback is $250 or more, but less than $1,000; a class A misdemeanor if the total value of the gratuity or kickback is $100 or more, but less than $250; or a class B misdemeanor if the total value of the gratuity or kickback is less than $100 Code 63G-6a-2302 – Factual Information to Attorney General if unlawful or anticompetitive practices suspected.

Splitting a Purchase 63G-6a-408 Subsection 8 - Small Purchases – “It is unlawful for a person to intentionally or knowingly divide a procurement into one or more smaller procurements with the intent to make a procurement qualify as a small purchase…” “A person who violates Subsection 8 is subject to the criminal penalties described in Section 63G-6a-2305”

63G-6a Penalties for artificially dividing a purchase A person who violates 63G-6a-408 is guilty of: a felony of the second degree if the total value of the divided procurements is $1,000,000 or more; a felony of the third degree if the total value of the divided procurements is $250,000 or more, but less than $1,000,000; a class A misdemeanor if the total value of the divided procurements is $100,000 or more, but less than $250,000; or a class B misdemeanor if the total value of the divided procurements is less than $100,000

Reminders Any violation of Gratuities/Gifts or Splitting Transactions codes will, per statute, result in loss of employment. No one can sign a contract or agreement; regardless of the value Bid limits are still at $2,000 – over $5,000 projects are required to be done by the Purchasing Office Purchasing Cards – no split transactions; do not let anyone else use your card, regardless (no one is authorized to instruct an employee to let someone else use his or her card); keep all receipts and documentation; no unauthorized meals may be purchased.