1. Purchasing Enhancement Program (PEP) Session 1: Introduction to Purchasing

2. What is PEP? PEP is a program to enhance the purchasing experience by introducing new electronic purchasing tools and provide an introduction to the purchasing process. PEP consists of three training modules: o Introduction to Purchasing (you are here) o Introduction to eProcurement (ePro) & GA First MarketPlace o Managing Purchase Requisitions, Desktop Receiving & Approving.

3. Introduction to Purchasing Purchasing serves the needs of our institution while being governed by all the rules and regulations of: o The Board of Regents http://www.usg.edu/fiscal_affairs/procurement/ o The Department of Administrative Services (DOAS) State Purchasing Division http://www.doas.ga.gov/StateLocal/SPD/Pages/Home.aspx

4. Associate Director of Logistics Jim Barnaby Purchasing MGR Vagillia Jackson Receiving Mgr John Swarn Clerk Vacant Buyer III Vacant Buyer II Zabrina Drake Buyer I Vacant Receiving Clerk Carlos Carter Receiving Clerk Vacant Receiving Clerk Keenan Marshall Surplus/ Risk Mgt. Queenie Gamble Inventory Coordinator Tyson Pulliam Buyer II Vacant Admin Assistant Sybil Davis (College Services) Card Mgr Mardina Woods Logistical Team

5. Purchasing Decision Wheel DOAS State Purchasing Vendor Board of Regents/GPC Requestor (You the Purchaser) P-Card or Purchase Requisition Allowable Purchase ? Order of Precedence Product or Service

6. Purchasing Methods Primary- Purchase Requisition Purchasing Cards Limited- Payment Requests (Used with Open POs, Dues, Fees, Student Stipend, travel, reimbursements & other approved goods or services) Petty Cash (Emergency Only)

7. Purchasing of Goods & Services Never Pledge credit, you must have a valid purchase order number or P-card prior to your purchase. This includes Agency and Grant Accounts The purchaser is liable for any purchases contrary to purchasing rules.

8. Purchasing of Good & Services Exceptions to the Rule: Emergency Purchases Payment Requests

9. Emergency Purchases Petty Cash –Limit to $100.00 or Less http://depts.gpc.edu/~gpcgov/policies/New300/317.pdf Purchase Order/P-Card Emergency situations include : Any situation that may seriously endanger the health, safety or welfare of any person and where direct action will alleviate the situation. Equipment or hardware is inoperable leaving personnel idle. A situation exists that is detrimental to the operation of the college and/or state business. Emergency purchases may be made upon approval of the department manager possessing budget authority without Logistical Services approval. Emergency purchases may only be made via P-Card, if purchasing limit allows, by purchase requisition or through personal funds. The emergency purchase must be communicated to Logistical Services the next business day with justification explaining the details of the emergency

10. Payment Requests Payment Requests are intended to serve as a payment initiator for “Open Purchase Orders”. Open Purchase Orders are used to encumber and earmark funds that we have an obligation for over a period of time. Example: AT&T Wireless service, monthly service plan is $55.00 x 12 months = $660.00 Obligation.

11. Other Uses for Payment Request Payment on Institutional Dues or Fees under $150.00. Conferences/Meeting registration once travel is approved via the Prior Authorization for Travel forms. Library Books & Periodicals. Student Stipends & reimbursements. Employee Reimbursements. Teacher Stipend (Non-Employee) Writers for the Chattahoochee Review, up to $200.00.

12. P-Card The purpose of the Program is to establish a faster, more cost-effective method for purchasing and payment. The Program was designed to streamline payment procedures and reduce the administrative burden associated with traditional and emergency purchasing of supplies, materials, equipment, and services under current small dollar purchase guidelines.

13. P-Card Rules Must pass Criminal Background and Personal Credit Check. Must attend new user training and annual refresher training. Must strictly adhere to all policies and procedures governing program. Must maintain purchase log, WORKS system, reconcile monthly BoA statements, and get management approval of all purchases.

14. Petty Cash Must not exceed $100.00 per purchase limit Purchases must be for “emergency” needs Purchaser must submit original receipts Reimbursement must occur within 30 days Budget Manager approval required for all purchases

15. Technology Purchases No Technology Purchases without OIT approval. (OIT assigns EDP #) o Technology defined as computers, printers, smart phones, net books, software and etc. o Technology purchases not allowed on P-card without special approval. o If unsure check with OIT. o List of approved computers and printers at: www.gpc.edu/~gpcoitds/standards/standards.htm

16. Purchase Requisition Purpose A purchase requisition is an internal electronic documents or form used to specify goods and services for purchase. A requisition is the first step in initiating a purchase using the GPC purchasing office and is a required document per the rules of the DOAS State Purchasing Division. The Budget Manager signature on the Requisition authorizes the Purchasing office to act on the department’s behalf.

17. Purchase Order The purchase order is the external document that is sourced from the Purchase Requisition and in most cases is issued to the vendor. A Purchase Order is a form of a contract with terms & conditions. The order obligates the vendor to comply with the terms once the goods are shipped. The purchase order is signed by the CUPO or designated representative.

18. eProcurement Process 1.A need is realized 2.Requester gets prices from a quote or other sources (no invoices). 3.Requester access PeopleSoft, eProcurement. 4.Check Order of Precedence and searches the Ga First MarketPlace for contracted items. 5.Determines if goods or services should be acquired through a “Special Request” or “MarketPlace”. 6.Requester enters data on requisition to include accounting chart string. 7.Requisition is routed the budget manager electronically based on the department ID or Grant Project number.

19. eProcurement Process Continued 8. Budget Manager will review, approve or deny. 9. If approved, requisitions will be electronically forwarded to any “Special Approvers” if need. Technology Approver Audio Visual Public Relations Hazardous Materials Assets 10. After review and approval the requisition goes to the Purchasing manager for review & approval. 11. Special Request Orders are budget checked and routed to a buyer for review, sourcing & dispatching. (Special Request will take additional processing time based on complexity & dollar amount) 12. MarketPlace Orders are budget checked automatically and electronically sent out to the vendor. This process occurs at 10:00am, 12:00pm, 2:00pm, 4:00pm, & 6:00pm daily. Note: If a purchase requisition goes into budget error it will cause a delay in the process. Only the budget office can clear up errors resulting from lack of funds.

20. eProcurement Process Continued 13. Goods are delivered to Central Receiving or directly to Requester. 14. Goods $3000.00 and greater are tagged & tracked in our Asset Module. 15. Requester creates a Receipt in eProcurement under Manage Requisitions. 16. Services will require acknowledgement of completion to Accounts Payable. 17. Payment is render by Accounts Payable if all documents match.

21. Purchase Requisition Tips Get a quote from the vendor and enter the data to mirror the quote. (Attach the quote) Monitor the progress of your Purchase Requisition. Inform Purchasing of any changes to your order. If you get an Invoice get it to Accounts Payable as soon as possible. Monitor electronic notifications and take action. Approvals Budget Errors Receipts Be detailed in your descriptions of the good or services.

22. Original S.U.V.

23. Requisition Decision Tree

24. Order of Precedence 1.Mandatory Statewide Contract ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_menu.jsp 2.Agency (GPC) Contract GPC specific contracts on the GPC Logistical Services website soon. Other State Entity contracts ssl.doas.state.ga.us/PRSapp/PR_AGENCY_contract_menu.jsp 3.GCI or Ga Enterprises www.doas.ga.gov/StateLocal/SPD/Contracts/Pages/Home.aspx 4. Statewide Convenience Contracts ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_menu.jsp 5. Open Market Purchases

25. Competitive Procurement Less than $25,000.00 Compare prices from at least three vendors Complete Purchase Requisition Purchasing Office will cut PO and send to preferred vendor. $25,000.00 or over Requires competitive bid Bids are advertised on the Georgia Procurement Registry (GPR) Duration of advertisement depends on the dollar amount. Bid method may is either a Request for Proposals (RFP) or Request for Quotes (RFQ). Award goes to the lowest responsible & responsive bidder or highest score.

26. Georgia Procurement Registry (GPR) This web-based advertising system is offered by DOAS’ State Purchasing for publicizing government sourcing opportunities. State and local governments can maximize competition by posting solicitations on the Georgia Procurement Registry. o http://ssl.doas.state.ga.us/PRSapp/PR_index.jsp http://ssl.doas.state.ga.us/PRSapp/PR_index.jsp

27. Bid Methods Request for Quote (RFQ) A Request for Quotation (RFQ) is a formal solicitation method that includes a well defined specification or scope of work and contains all contractual terms and conditions. The RFQ solicits quotations or bids through eSource from prospective vendors and seeks to obtain price quotes from qualified vendors using the lowest quote as the determining factor for awarding the contract. Lowest Price for specific product.

28. Bid Methods Request for Proposals (RFP) A Request for Proposal (RFP) is a formal solicitation method that seeks to leverage the creativity and knowledge of business organizations in order to provide a solution to a unique procurement. The RFP solicits sealed price proposals from prospective vendors and seeks to obtain the “best value” for the State. The RFP method does not use the cost of the project as the single determining factor, but rather uses a combination of lowest cost plus best proposed solution to determine the award. Best “Value” on a complex procurement usually involving products and services.

29. Bid Methods RFP Continued Complex development process to include response scoring. Requires vendor to complete both a technical and cost proposal. Requires a multi-functional (cross-functional) proposal evaluation team. Requires significant GPC and DOAS purchasing staff. Currently MINIMUM ninety (90) day process time.

30. Other Bid Methods Request for Qualified Contractor A RFQC is used in cases where the state is attempting to find vendors with the qualifications to produce the product or service desired. The required qualifications are known and each vendor is judged on its ability to meet or surpass the required qualifications. Those qualified contractors will go on to the second phase the RFP or RFQ. Request for Information The RFI is a request seeking information on products or services available on the market. This process is for information only and may be used in preparing an RFQ or RFP.

31. Sole Source/Sole Brand Sole Source Definition o A sole source occurs when the product you need is available ONLY through one vendor due to the manufacturer’s agreement with the vendor. Sole Brand Definition o A sole brand occurs when only one particular manufacturer’s brand will suffice. Product may be available from several vendor’s but we must have the particular brand. Both require justification AND posting on the Georgia Procurement Registry

32. Contracts Logistical Services needs to review terms & conditions on all contracts. Logistical Services ensures the contract follows State & BOR Policies. Will forwards to legal when terms are questionable. Only the Presidents designated representatives will enter into contracts. This process protects the college from termination fees and clauses that puts us at risk.

33. PEP II & III PEP Sessions 2 & 3 will introduce you to: eProcurement (ePro) system Special purchase requisitions Ga First MarketPlace purchase requisitions Departmental budget control Purchasing Life-Cycle monitoring Creating receipts Approving Requisitions

34. Job Aids Job Aids are located at http://depts.gpc.edu/~gpclogic/PEP.htm http://depts.gpc.edu/~gpclogic/PEP.htm ePro User Guide fro Information Technology Services (ITS) ePro Quick Reference Guide (Desktop Guide that highlights keys to each step in creating a PR) Purchasing Quick Reference Guide (Reviews purchasing methods & order of precedence. Desktop Receiving

35. Summary Purchasing rules and processes are complex by necessity and the rule of law. The P-Card or MarketPace are the best methods to procure your small value, everyday supplies. A Payment Request IS NOT a state approved purchasing method. State and Agency contracts are the best source for purchases. Open market competitive purchasing requires plenty of time and planning. Never pledge credit always use a p-card or have a valid purchase order prior to the receipt of any goods.