1. Purchasing Rules and Regulations www.utsa.edu/purchasing TX CLASS: AM580

2. PURCHASING AND DISTRIBUTION SERVICES DEPARTMENT 2  Purchasing Buyers  Paul Duke, ext. 4064  Julie Gohlke, ext. 5076  Patty Burrier, ext. 4062  Sandra Calderon, ext. 8680  Mariano Alaniz, ext. 5077  Brian Bird, ext. 4068  Interim Director  Lane Brinson  Purchasing Business Analyst  Yvette Medina, ext. 4974  eProcurement Specialist  Elizabeth Raymond, ext. 4598

3. ORGANIZATIONAL CHART 3 Purchasing and Distribution Services Department Purchasing Central Receiving Mail Services (Main Campus) Mail Services (DT and ITC)

4. COURSE OBJECTIVES 4 Discuss and evaluate Purchasing Rules Examine compliance in relation to Purchasing Outline HUB requirements from the state and university Evaluate Ethics in regards to self and working with vendors Review Spending Thresholds for procurement Breakdown and demonstrate various Procurement Methods Differentiate and discuss Small vs. High dollar procurement Demonstrate the uses of the UTSA Supplier Mall and Purchasing website

5. Questions before we get started?

6. PURCHASING TERMS  Requisition – A request to purchase goods or services  Quotation – Obtaining a price for a good or service  Purchase Order – A formal agreement to purchase based on an offer to sell  Informal Bid – Low value, low risk procurement conducted through informal methods  Formal Bid – High value, high risk procurement conducted utilizing formal purchasing methods  Receiving Report – A report informing appropriate parties of goods received by the University  Invoice – A request for payment for goods or services which were delivered  Category Code - A code describing a commodity or a group of commodities pertaining to goods classification.  UNSPSC 8 digit codes 6

7. 7 PURCHASING RULES

8. COMPLIANCE (STATE AND UTSA PURCHASING) 8 Section 51.9335, Education Code definition of “Best Value“ The Board of Regents' Rules and Regulations UTSA's HUB (Historically Underutilized Businesses) policies Senate Bill 20 To Standards of Ethical Conduct All Applicable Laws, Rules, and Regulations

9. HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PROGRAM 9 What is the purpose of the HUB Program? What classifies a HUB? Why are HUB’s Important to UTSA? HUB Program Events Quarterly Newsletter HUB Awards Ceremony (November) Vendor Fair (March/April)

10. HISTORICALLY UNDERUTILIZED BUSINESS (HUB) 10 UTSA HUB Program Contact: Phone: 458-6491 Website: www.utsa.edu/hubwww.utsa.edu/hub

11. PROCUREMENT ETHICS 11 Ethics of self and university Tax Payer Impropriety Ethics with vendors No Special Consideration Equal Opportunity Further information of U.T. System Ethics Policies and Guidelines is available on UT systems web site. U.T. System Ethics Policies and Guidelines

12. PROCUREMENT SPENDING THRESHOLDS Dollar RangeProcedure $0.01 to $15,000.00 (Small Dollar) Authorization limit for department buyers. Bids are not required. Small dollar requisitions are created by Department Buyers Use HUBs (Historically Underutilized Businesses) when available $15,000.01 to $50,000.00 (Informal Bid) Purchasing must compete the purchase order by competitive bidding (soliciting to a minimum of two certified HUB vendors) Purchase Orders are completed by Purchasing $50,000.00 and over (Formal Bid) Purchasing must compete the purchase order by a formal proposal (soliciting to a minimum of two certified HUB vendors) with posting requirements Purchase Orders are completed by Purchasing 12

13. Questions?

14. 14 PROCUREMENT METHODS

15. 15 Best Value Best Value Competitive Bid Competitive Bid Group Purchases Group Purchases Sole Source Sole Source Request for Proposal (RFP) Request for Proposal (RFP) Emergency Purchase Emergency Purchase Exempt Purchases Exempt Purchases

16. BEST VALUE PROCUREMENT 16 Best value - optimum combination of economy and quality through specifications of its end user and the University. House Bill 1545 Senate Bill 20 The university uses an evaluation criteria other than price alone to determine Best Value.

17. COMPETITIVE BIDDING 17  What is competitive bidding?  Why compete goods and services?  Restrictions to Competitive Bidding:  Set Specifications  Limited Ability to Negotiate

18. GROUP PURCHASES 18 What is a group purchase? Types of Group Purchases Group Cooperatives State Contracts Link to Group Purchasing Organizations www.utsa.edu/purchasing/suppmall/index.cfm Govern Abbott Directives – Competitive Process on GPO’s

19. SOLE SOURCE 19 A Sole Source is defined as having availability from ONLY one source. Sole Source can only be used when: Sole Manufacturer – NO distributors or retailers Sole Brand – to avoid warranty issues Exclusive Acquisition Justification

20. REQUEST FOR PROPOSAL (RFP) 20 What is a RFP? When do I need a RFP? What is the process of a RFP procurement?

21. EMERGENCY PURCHASES Purchase of good(s) or service(s) so badly needed that UTSA will suffer financial or operational damage unless secured immediately Require written justification approved by Purchasing with Signature Authority The reason for the emergency The financial or operational damage/risk possible to the University Why standard procedures could not be used to obtain the products/services The reason and process used for selecting the vendor 21

22. EXEMPT PURCHASES 22 Exemption is given to specific commodities and services Exempt purchases do not require a competitive procurement process Exempt purchases do not need a sole source justification For a full listing of Exempt commodities and services, visit the Purchasing website. Purchasing

23. Questions?

24. 24 PeopleSoft Requisition PURCHASE REQUISITION PeopleSoft Requisition

25. SMALL DOLLAR REQUISITION 25 “Small Dollar” or Low Risk / Low Value Department authorized and approved Informal purchasing process Requires quote(s) from vendor(s) HUB participation is strongly encouraged Utilization of Sustainability Vendors and Products Orders under or equal to $15,000 may be processed by the department and should not be sent to purchasing.

26. SMALL DOLLAR REQUISITION 26 Transition Phase – Until February 1, the Purchasing Office will continue monitor and review purchase requests before system release. Service Based PO’s Scope of Service Vendor Selection Accuracy and Precision

27. SMALL DOLLAR – EXCEPTIONS Orders containing the following commodities should be submitted to purchasing for processing: Processing small dollar exceptions using UTShare PeopleSoft Follow the instructions listed on Purchasing with UTShare PeopleSoft (www.utsa.edu/purchasing/PS_Purch_Forms.cfm).www.utsa.edu/purchasing/PS_Purch_Forms.cfm Radio Active Material Leases (space) Anything requiring a signature 27

28. HIGH/LARGE DOLLAR REQUISITION 28 Initiates the Purchasing Process Representative of High Risk or High Value Purchases Can range in cost from $0.01 to $??? Routes to Purchasing

29. Orders $15,000 - $50,000 Purchasing involvement required Requires solicitation of HUB vendors Pricing obtained by informal procurement Orders over $50,000 Purchasing involvement required Requires solicitation of HUB vendors Pricing obtained by formal procurement Public Posting HIGH DOLLAR REQUISITION PROCESS 29

30. Questions?

31. and Additional Purchasing Information PURCHASING WEBSITE and Additional Purchasing Information

32. Purchasing Resource Contracts with volume discounted pricing Efficient ordering method Emphases on HUB presence Purchases can be made by Purchase Order or Procard (as applicable). UTSA SUPPLIER MALL 32

33. Find contract information for Preferred Suppliers in the following commodities:  Office Supplies  Printer Purchases (HP, Dell, Lexmark)  Cylinder Gas  Moving/Relocation Services  Scientific Supplies  Technology Supplies  And more!! Visit: www.utsa.edu/suppliermall for further information or contact your departmental buyer.www.utsa.edu/suppliermall WHAT'S IN THE UTSA SUPPLIER MALL?? 33

34. Interim Processes Requisition Approvals New Procurement Procedures Purchase Order Corrections Radio Active Orders Return to Vendor Process PeopleSoft Training Information User Productivity Kits (UPK’s) UTSHARE PEOPLESOFT PURCHASING RESOURCES 34

35. ADDITIONAL PURCHASING INFORMATION 35 Contract NEVER sign contracts or agreements Only the President can delegate authority to sign contracts OGC (Office of General Counsel) provides sample contracts Departments should submit all purchasing contracts to the Purchasing Department Construction, Renovations & Facilities Any proposed construction and/or renovations are to be routed through UTSA Facility Services via a work order Facility Services will determine the best way to procure the renovations Information Technology Any request for hardware or software should be coordinated through Information Technology. Visit the OIT website for Computer Standards.

36. THANK YOU