1. CHORI Purchasing Flow Chart
Procurement Thresholds
Lab Staff sends approved requisition to SPO
Under
$10,000
Grant Requirements Check
Budget Check Approval
Lab staff obtains PI signature on requisition
Lab staff prepares purchase requisition
PI plans purchase of supplies or equipment
Lab Requisitioning & Approval Processes
Lab staff submits signed requisition to SPO
approved
Continued Below
Over 10K but not to exceed $100K
SPO sends approved requisition to Supply Chain *
$10,000 - $99,999
not approved
SPO returns requisition to Lab staff for correction
$100,000 +
*See separate process for Capital Expenditures
Rev.9
Procurement Thresholds
Order Fulfillment
Payment
Procurement Policy Management
Supply Chain orders
goods
No additional checks required
Under $10,000
Supply Chain delivers goods
A/P pays invoice
Due Diligence Required
(Contract, Quotes, Price Reasonableness , etc.)
From Above
$10,001 - $100,000
Supply Chain
Reconcile invoice differences
Formal Contracting and Bidding
Required
D.Lynch Approval
Required
$100,000 +

2. Purchase Requisition Flow Chart
The following guide lines must be met before a PI’s request to purchase goods and or services can be forward to the Sponsored Programs Office.
The policy of the Children’s Hospital & Research Center at Oakland minimum dollar value for a sponsored award purchase order issue is $25.00, less than
$25.00 if required by the SPO award terms and conditions.
Purchase orders are issue upon completion of an approved Purchase Requisition Form.
Sponsored award transactions under $25.00 that are not required to be obtained through a purchase order should be handled via the following a) direct
expense reimbursements b) office petty cash.
Orders with a total value of $10, or less:
Sponsored award purchase order for goods and services with a total order value of $10,000 or less will be placed by the Supply Chain Management department
without completive bidding when placed with an approved supplier. The Sponsored Programs Office must approve exceptions to this procedure.
Orders with total value greater than $10, but no more than $100,000.00:
The PI is to work together in conjunction with the buyer to provide the following before submitting the purchase requisition to the SPO department
for approval. A) multiple phone bids listed on the requisition indicating the supplier, contact person, dates and
prices B) multiple written quotes are to be attached to purchase requisitions C) exception to this process are
existing contract or price agreements, single authorized distributor, cooperative or buying groups, duplication of
Investment or single sole-source justification form. The Sponsored Programs Office must approve exception to these
procedures.
Orders with total value greater than $100,000.00:
for approval. At least three (3) written bids will be attached with a noted bid summary supporting supplier selection A) Evaluation may include factors other
than price, such as quality, timely delivery, service, minority supplier consideration, etc. B) Orders will be awarded the lowest evaluated acceptable bidder.
Existing contract, price agreement, and cooperative or buying groups, or single authorized distributor. The Vice President of Research Administration must
approve exception to these procedures. Waivers for single or sole source procurement require a Single/Sole Source Justification Form approved by the Vice
President of Research Administration and verified by the Supply Chain Management Department..
Capital Asset Purchases:
for approval. PI and buyer to select multiple quotes from suppliers detailing all cost to include delivery/setup fees, together a supplier is selected a PI must then
create a Performa Capital Expenditure Expense form, forward this form to the Vice President of Research for approval once approved the purchase requisition
and all of the supporting documents are forward to the SPO department.
Upon completion of any one of the steps above the Supply Chain Management department will either approve or reject the purchase
requisition, If rejected the Supply Chain Management department will forward requisition back to the PI to make necessary corrections.

3. Capital Policy PI selects item sourcing best pricing
Quote[s] are obtained, detaining all costs including delivery and setup fees
Purchase form is create by PI
Performa Capital Expenditure Expense form) CER is created by PI
If this item can only be purchased through one vendor, signed Single Source document will be included
Performa CER is signed by VPRO
Bundle is submitted to SPO for approval bundle includes:
Signed Purchase Request
Quote[s]
Signed CER
Approved bundle is routed to Phillip Bollinger for processing
Bundle is scanned then ed to Jim Wong to evaluate best pricing has been obtained, The quote is send to ECRI for price reporting...prior to finance approval.
Bundle with purchase order is scanned and submitted to General Accounting
Item[s] are ordered
Copy to PI
Copy to general purchasing buyer
Copy held by Phillip for auditing purposes
Grant funded equipment purchase
Equipment is defined as tangible personal property (including information technology systems):
1.  Having a useful life of more than one year and
2.  A per-unit acquisition cost equal to or greater than $5,000.  (add SAAM reference here)
Extramurally funded projects are awarded to CHORI on behalf of the project director/principal investigator. Title to equipment acquired with external funds vests in CHORI, and must be used to carry out a project or program as awarded.  All grant-funded equipment must be requested, ordered, received and managed according to finance policies.
Item(s) purchased MUST be received through either CHORI receiving or BCHO receiving to be checked in and properly tagged.
If any item is delivered directly to the department by a vendor, it is your responsibly to contact shipping and receiving for proper documentation and asset tag placement.
If an item is delivered through BCHO Receiving, a copy of the receiving document must be sent to CHORI asset management so that asset databases can be properly updated.
If the equipment is moved from one location to another, it is the original recipient’s responsibility to notify CHORI asset management. Be prepared to supply the following:
Asset tag number
Serial number
Control Tag # if present
Item description
Original location
New location
Reason for move
Assets purchased with grant funds MUST be made available for annual inventory; a designate must be able to produce the item for inspection.
Items no longer needed (if a program completes or closes) are to be returned to CHORI for disposition.
Non-functioning items MUST be returned to CHORI for proper disposal.
It is the owner’s responsibility to decontaminate any lab equipment before transporting to CHORI.
Items may not be used as a trade-in without contacting CHORI asset management and General Accounting.
Items used for trade-in may not be used for less than the current Net-Book value.
Items may not be sold without contacting CHORI asset management and General Accounting.
Items used sold may not be sold for less than the current Net-Book value.
I have read and understand the above policy:
_________________________________________ ______________
Signature Date
________________________________________ ________________________
Print Name Departarment

4. Receiving Process All items are received into Meditech
Capital Orders to contain – asset tag & serial number to be placed on unit and added to filemaker database.
For details see attachment.

5. Receiving Process off Site Location
All packing list must be ed or faxed to Jenison (Supply Chain Management Receiving.
If capital equipment the end user must contact Jenison who will place the asset tag and obtain the serial of the equipment.

6. Receiving Exceptions
Items delivered directly to the end user without a packing slip will be handled as followed.
End user to contact buyer.
Buyer to contact supplier and request a duplicate copy of the packing slip.
Buyer will be notified via Meditech exception report (generated by invoice/receipt. variance).
Buyer will contact supplier and request both the packing slip and copy of the P.O.D to reconcile purchase order closure.