PURCHASING

PENDING INSTITUTIONAL UPDATE TO ENSURE COMPLIANCE WITH OREGON
ADMINISTRATIVE RULES, 580, DIVISION 60, 61, 62, AND 63.  August 12, 2008

Processes for Procurement of Goods and Services

1. Formal: The formal procurement process shall be used, unless other exemptions apply, for all purchases of supplies, equipment and services where the estimated cost exceeds $50,000.00.
   1. Multiple contracts, purchase orders and verbal orders shall not be issued separately with the intent to circumvent the formal purchasing process.

   2. The formal process may be accomplished in either of two ways:
      Purchase Order Required, Formal Documentation
      1. Invitation to Bid (ITB): The formal bid process will require that the invitation to bid be advertised in a manner that will reach bidders. The contract under process shall be awarded to lowest responsible bidder who meets the specifications of the contract. Please contact the Purchasing Office for formal bid procurement.

      2. Request for Proposal (RFP): The formal Request for Proposal process shall follow the same guidelines as ITB except that the specifications and price will not necessarily be the predominant award criteria. Award criteria shall be detailed in the Request for Proposal. Please contact the Purchasing Office for formal RFP procurement.

2. Informal: The informal process may be used for all purchases of supplies, equipment and services where the estimated cost exceeds $5,000.00 but does not exceed $50,000.00. The informal process may be accomplished through the solicitation of three (3) competitive quotes. Solicitation can be by advertisement, written, oral, or electronic quotes. The information in regard to vendors, prices and names of quoting personnel are required and must be documented. If another form of procurement is used, see examples below, the justification must be fully documented.

   Purchase Order Required, Informal Documentation:

   1. Other forms of justification, please call Purchasing Office before purchase
      1. Sole Source

      2. Emergency

   2. Procurement Cards/Departmental Index numbers
      1. Procurement cards: The use of procurement cards are another means of purchasing goods and services. This method can be used for purchases below $2,500.00. Purchase orders and documented quotes are not required for purchases at this level. The use of a procurement card has certain limitations set forth in the reference material you received with the card. Some of the non-use areas are listed below:
         Capital equipment, travel, fees/services, maintenance/repairs, cash advances, personal purchases, awards, entertainment, moving expenses, memberships

      2. Index Number Use: The use of index numbers is the most commonly used method of purchasing goods and services. This method can be used for all purchases below $5,000.00, with the only exception being Contract Release Orders or Price Agreement purchases. Documented quotes are not required for purchases at this level.

      3. Use of Contract Release Orders/Price Agreement Contracts: The new rules state that we are not required to use Department of Administrative Services contracts, although you may choose to do so. If you choose to use a DAS contract, you must comply with DAS rules. If you purchase from the contract, a Contract Release Order must be completed and mailed or faxed to the vendor.

      4. Retainer Agreements: The rules state that we now may enter into "retainer agreements" with vendors using appropriate competitive procedures that take into account qualifications, reputation, price structure and ability or willingness to respond to requests. Examples of this would be plumbers, electricians or other service personnel.

      5. Personal Service Agreements (PSA's): Departments will submit all PSAs to the Administrative and Finance Office, complete with index code and amount. Do not type PSAs on a purchase order, please contact the Vice President for Administration and Finance Office for more information.

3. Helpful Guidelines and Hints
   1. Orders Under $5,000.00: Purchase Orders are not required under $5,000.00, unless you elect to use a Department of Administrative Services contract (CRO), or if the vendor requires a purchase order. For all orders in which a purchase order will not be used, please use the following guidelines:
      1. Order the item directly, make sure to give the vendor your index code and your department's address and any other bill to/ship to information.

      2. When the invoice arrives, please pay the invoice using the appropriate payment form. Please make sure to use the invoice number exactly as stated, and take advantage of any discount which might be available to your department.

   2. Orders over $5,000.00:
      1. Purchase orders and three (3) quotes are required for purchases of more than $5,000.00. The quotes may be solicited and received in written, oral or electronic form. The quotes should be documented within the purchase order line item text, with the print toggle set to "N". The information should include vendor name, contact person, date and the prices. This information will become part of the permanent purchase order record. If you have questions in regard to any part of purchase order creation, call the Purchasing Office.

      2. When creating a purchase order, please be as complete and concise as possible. This will help the vendor better identify the products you need and lower the possibility of error. The product description field should include item description, catalog or product number, model number, or the name of the manufacturer if applicable. If you have questions, call the Purchasing Office.

   3. Orders $5,000.00 - $50,000.00:
      1. Purchase orders and three (3) quotes are required for purchases of more than $5,000.00. For purchases over $5,000.00, you need to determine whether what your purchasing is capitalized equipment. Equipment is defined as tangible personal property with a unit value of $5,000.00 or more and a useful life of more than two (2) years.

      2. Please be sure and use the40101 Account Code on the accounting page when purchasing capitalized equipment. The purchasing form is integrated with the fixed asset module, and this information will become part of the permanent fixed asset record. If you have questions in regard to equipment purchase, please call the Purchasing Office.

   4. Orders $50,000.00 or Above:
      Purchase orders and formal bid documentation is required for purchases exceeding $50,000.00. These quotes must be sent out in a formal package to the vendor, and a formal permanent record will be established. If you need to make a purchase that will exceed $50,000.00, please contact the Purchasing Office for assistance.

[Responsible for Accuracy: Richard Poese, Director of Business Services- Last Verified: 7/28/03]