Purchasing 101 Procurement Services Abe Reising Updated

Agenda Purchasing Thresholds & Methods Bidding & Methods Contracts & Contract Review Purchasing Flow-Chart Additional Resources

Purchasing Thresholds & Methods Under $2,500 –ProCard –Invoice to AP –Voucher Check –Reimbursements Over $2,500 –Purchase Order required –Quote or estimate required –Purchase Order must be approved before product/service is ordered

Additional Thresholds Over $25,000 –Competitive bids required –Bid Documentation Form completed Over $50,000 –Legal review required, and is initiated by Procurement After-the-Fact (ATF) Reporting –Data shared with executive areas –Annual goal of <5%

Special Situations Additional consideration should be given to: –Technology PC/laptops standards Network based software +$10,000 –Gift purchases (e.g. gift cards, gifts, other taxable income) –International payments –Crossing fiscal years –Conflicts of interest –Facilities

Bidding Required for purchases or contracts over $25,000 –Minimum of 3 quotes required, must submit copies of all quotes –Whole contract, not just phases –Ensure a fair process and no conflicts of interest –Buyers are experts within their categories, let them help! Preferred vendors exempt –Full list on website Exemptions –Must be requested via Procurement Services –Exemption memo, details exemption reasons Bid Compliance Reporting –Monthly reporting on non-bid compliance to executive areas –Annual goal <1%

Conducting a Bid Acceptable ways to bid a good/service –Quotes –Estimates –RFP Evaluating vendors –Price –Product/service/quality –Terms –Timeframe

When is a Contract Required? Services over $1,000 in value –Goods orders require a contract if over $50k or “Special Risk” Involves any “Special Risk”

“Special Risk” Intellectual property (logos, marks, artwork, symbols, or copyrighted materials) Indemnify or insure an outside party; Off-campus educational programs or activities (international affiliation agreements/grants, study abroad contracts, and student internship/service-learning contracts) Private or confidential information (information protected by FERPA, HIPAA, Gramm-Leach-Bliley) Significant risk or liability.

Form Contracts (OGC) Professional Services Contract (consultants) Performance Agreement (band, performer) Master Service Agreement (multiple projects, longer period) Honorarium Agreement (guest lecturer) Many more…

Contract Review Enter requisition prior to a signing any contract Try to use OGC Form Contract to simplify process Read the contract, especially if provided by the vendor Procurement is here to help determine if a contract requires further review

Contract Review Once notified that you are able to sign, all university contracts must be signed on behalf of “DePaul University” Only Officers and a limited number of “Specific Designees” authorized by the Officers may sign contracts –(OGC maintains authority list) Send a copy of the signed contract to the Procurement buyer Requisition will be approved

Purchasing Flow-Chart

Procurement Resources Procurement Services Website –Purchasing processes –eProcurement demos –Preferred vendor list –News –Forms –Demon Discounts (personal discount program) –Salvage Store (used items for personal purchase)

Additional Resources University Policies and Procedures Office of the General Counsel Contract Review & Standard Contracts Office of Sponsored Programs and Research (OSPR) Grant Assistance