Purchasing 101 Training (ppt) - Office of Finance & Administration

Purchasing 101
Basic Purchasing Training for FIU Departments
Regulatory Authority and Responsibility
Purchasing Services Organization
Purchase of Commodities and Contractual Services
Sole Source Processes
Research Bid Exemption Process
Competitive Solicitations
Purchasing Mechanisms
Expenditure Guidelines
Departmental Card Guidelines
Allowable Unencumbered Purchases
Procure-to-Pay Workflow
Purchasing Category Codes
Special Approvals
Vendor Contracts
Purchasing Services Workload
Purchasing Services Goals
Regulatory Authority and
 The BOG, by statute, has been delegated authority for SUS purchasing of
commodities and contractual services. Specifically, BOG Regulation 18.001,
addresses the SUS procedures and practices used in purchasing commodities
and contractual services. FIU BOT Regulation FIU-2201 governs purchasing of
commodities and contractual services for FIU and tracks the requirements of
the BOG Regulation.
 The Office of Controller/Purchasing Services administers the University’s
purchasing program, is the University department authorized to commit funds
for the acquisition of commodities or services, and is the initial point of contact
for service contracts prior to any obligation or commitment by the University.
The Purchasing Manual outlines all FIU Purchasing requirements and
 Purchasing functions include preparing specifications for competitive
solicitations; initiating formal quotations, proposals and bids; dispatching
purchase orders; conducting public bid openings; facilitating evaluation of
competitive solicitation proposals; and negotiating and awarding contracts.
 The FIU Office of Internal Audit and State Auditors audit Purchasing Services
to ensure all processes are followed and all regulations are adhered to.
Purchasing Services Organization
Kelly Loll, CPM
Director of Purchasing Services
Kenia Junco
Associate Director
Support Provided
Support Provided
Chandra Nix
Purchasing Coordinator
Crystal Herrera
Purchasing Coordinator
Oversee the Purchasing Unit/
Functional & Technical Support
Liaison/Posts Sole Sources
Pamela Johnson 7-6585
Sr. Purchasing Agent
Donald Corbitt
Sr. Purchasing Agent
Back-Up to Jacob Zade
IT Hardware & Software/ Telecom/
Solicitations & Contracts
Emily Diaz
Sr. Purchasing Agent
Tere Portuondo
Sr. Purchasing Agent
Back-Up to Cheryl Cobb
Vendor File Maintenance
Alex Valenzuela
Support Specialist
Cheryl Cobb
Sr. Purchasing Agent
Oversee the Contracts, Sourcing
and Vendor Unit &
Major Solicitations
Contracts & Vendor Approval
Back-Up to Tere Portuondo
Jacob Zade
Sr. Purchasing Agent
Back-Up to Donald Corbitt
Artwork/Gift Cards
Athletics/Consulting Services/
Purchase of Commodities and
Contractual Services
 Vendor Registration
 Purchasing Thresholds:
$0 - $14,999: Informal quotation may be solicited verbally
$15,000 - $24,999: Up to two written or verbal quotes required
$25,000 - $74,999: Two or more written quotes required
$75,000 +: Competitive solicitation required
Additional Option: Piggyback Agreements
 Exceptions:
Emergency Purchases
Sole Source Purchases
Division of Research Bid Exemptions
BOG Exemption 18.001(6)(d)
The Purchasing Director may, at her discretion, waive the requirement for written quotations
when it is in the best interest of the University.
Sole Source Processes
Sole Source Purchases greater than $75,000
Before entering a requisition, Department must:
 Complete Sole Source Request Form per instructions on form.
 Submit completed form and backup documentation to Kelly Loll, Purchasing
Director for review and approval. If the value of the purchase is $100,000 or
greater, Presidential approval will need to be obtained by Purchasing.
If approved, Purchasing Services will post the sole source to the Purchasing website
for 72 hours, per regulatory requirement and notify the Department a requisition
needs to be entered for the vendor listed in the documentation.
After posting requirement is complete, PO will be dispatched by buyer. If there is a
contract for the sole source purchase, contract process must be followed and PO will
be dispatched upon execution of contract.
Sole Source Purchases under $75,000
Before entering a requisition, Department must submit:
 Justification memo stating the reason for purchasing the goods/services from the
specific vendor;
 Letter from the vendor or manufacturer stating they are the only authorized
If approved, Purchasing Director will e-mail Department with approval and to enter a
requisition for the vendor selected.
The Department must attach the Purchasing Director’s e-mail approval, the
justification memo, and the vendor’s letter to the requisition.
A Sole Source Request Form is not required and posting of the sole source is not
Research Bid Exemptions & Purchases
 Vendor specified in Grant
 Submit requisition, attach copy of section from the grant that specifies the vendor.
 Requisition and back-up documentation will be reviewed by Kelly Loll, Purchasing
Director and, if all is outlined appropriately, she will dispatch the PO.
 Vendor not specified in Grant
 Complete Research Bid Exemption Form per instructions on form.
 Submit requisition, attach completed, signed Form and back-up documentation.
 Requisition and back-up documentation will be reviewed by Kelly Loll, Purchasing
Director and, if all is approved, she will dispatch the PO.
 Policies for Purchasing Items on Sponsored Projects
 Division of Research policies:
 Part B, Post Award:
 Purchase or Receipt of Items Requiring EH&S Prior Approval
 Sponsored Research Purchasing Exemption
 Subaward Preparation and Payment to Sub-recipients on Sponsored Projects
Competitive Solicitations
 Competitive Solicitation Process
 Requests for Information (RFI)
 Complete Competitive Solicitation Request form and submit to
 Purchasing will review form and contact Department to discuss
competitive solicitation options, timeline and requirements
 Types of Competitive Solicitations for the purchase of
commodities and/or contractual services:
 ITB – Timeline: approx. 3 months
 RFP – Timeline: approx. 4 to 6 months depending on complexity
 ITN – Timeline: approx. 6 to 9 months depending on complexity
Competitive Solicitations
Examples of procurement needs that may fall under this format include: scientific
equipment/services, audiovisual equipment and installations and solid waste removal service.
Price is the major consideration in the award determination
Examples of procurement needs that may fall under this format include: software purchases,
small trades and catering services.
Factors other than price are to be considered in the award determination:
 Vendor experience, project plan, design features of the product(s) offered, scope of services,
 Negotiations are limited in the RFP process and may only take place with the vendor(s)
recommended for award and for specific points reserved in the RFP
Examples of procurement needs that may fall under this format include the acquisition of
consultants and complex services.
Factors other than price are to be considered in the award determination:
 Vendor experience, project plan, design features of the product(s) offered, scope of services,
 Extensive negotiations, with a shortlist of vendors, may be part of the ITN process
Purchasing Mechanisms
 When initiating a purchase use one of the following purchasing
 Departmental Card
 Allowable Unencumbered Payment
 Purchase Order
 Purchase Order must be obtained before receiving goods and
 Units are NOT authorized to process PO’s after the fact.
Confirming orders are in violation of FIU Policy as defined in
the Purchasing Services Procedures Manual, Section 3.4,
“Departments are not authorized to place orders directly with
vendors for goods or services. “
 Blanket Purchase Orders should be requested at the beginning
of the fiscal year for vendors from which multiple purchases of
goods or services will be made throughout the year.
 Change Order requisitions are required to increase Purchase
Order amounts and quantities.
Expenditure Guidelines
Please refer to the Expenditure Guide by Fund Matrix located in the
Office of the Controller Index page for a list of expenditures and the
funds that allow for these type of purchases. If using concession funds,
you must provide a statement detailing how the expenditure benefits the
interest of higher education.
Departmental Card Guidelines
In an effort to improve purchasing efficiencies, we encourage Departments to
use a Departmental Card to facilitate payments for the following purchases:
Academic Reviews
Accreditation Fee
All Catering Services
Institutional & Departmental Memberships
Lab Supplies & Non-Hazardous Chemicals
Office Supplies
Publication Fees
Registration Fees for College Fairs, Seminars, Workshops, Conferences, and
 Rentals (non-contractual)
 Shipping via UPS and/or Fed-Ex
For additional listing of allowable purchases under the Departmental Card Program, please refer to
Page 21 of the Departmental Card Guidelines & Procedures Manual:
Allowable Unencumbered Purchases
Allowable Unencumbered Payment List
Note: Foreign vendors, regardless of type of product or service, cannot be paid unencumbered.
1. Service Agreements: Under $75,000 (must include signed Agreement as back up
documentation, if over $5,000 or required by either parties).
a. Academic Reviews*
b. Artistic Services*–Music, dance, drama, folk art, creative writing, painting, sculpture,
photography, craft arts, industrial design, costume design, fashion design
c. Entertainers/Performers
d. Lectures/Guest Speakers*
2. Athletics:
a. Athletic Service Providers for Sporting Events – Stat Crew, Official Book, Scoreboard
Operator, Clock Operator, Referees
b. Doctors Bills *
c. Hospital bills *
d. Medical Co-payments *
e. Other emergency expenses for student athletes
3. Other:
a. Financial Aid ( Third Party )
b. Fire Marshall Fee
c. FIU Foundation
Allowable Unencumbered Purchases
Procure-to-Pay Workflow
Purchasing Category Codes
 Purchasing Category Codes are mapped to GL Expense Accounts.
 For Operating Capital Outlay (OCO) Purchases, the codes that begin with
999xx should be utilized.
 OCO refers to fixed assets valued at $5,000 or more.
 The following queries can be used to look up the codes before you set up
your requisition:
FIU_FSSS_PO_CATEGORY_LIST – Provides the complete list of active
category codes.
FIU_PO_CATEGORY_LIST2 – Allows you to search for category codes by
the GL expense account.
Purchasing Category Codes
 For subcontracts the first $25,000, if the subcontract is subject to Indirect
Cost (IDC), should be loaded to category code 95701 (acct 772951) and
any remaining balance should be loaded to category code 95702 (acct
772952). If the requisition goes over the initial $25k threshold please
make sure that any amount over $25k is listed as a separate line on the
PO and loaded to category 95702 (acct 772952).
 Gift Card Requests for Research Subjects should be coded as Participant
Payments code 95703 (acct 711991).
 Links
Research Gift Card Request Form:
Gift Card Processes and Forms:
Purchases: Special Approvals
 All purchases of software, servers and IT contractual services over $1,000
require the CIO’s approval. Any purchases for software, including those
under $1,000, where there is a University Wide License agreement also require
the CIO’s approval. CIO’s approval must be obtained prior to submitting
requisition and must be attached to requisition.
 Purchase of radioactive material must be approved by the Radiation Safety
Officer in EH&S before submitting requisition and must be attached to
requisition. Unless otherwise specified by the Radiation Safety Officer, the
delivery address for all radioactive material is Environmental Health & Safety,
11200 SW 8th St. CSC-162, Miami, FL 33199.
 University Vehicle acquisitions must be routed through Vehicle Services. A
University Vehicle Justification Form must be completed by the requesting
department and approved by the Department Head and Dean or Vice
President. After all approvals obtained Department may submit requisition
and all approval documentation must be attached to requisition.
 Insurance requirements are established by Alex Fals in Risk Management.
Departments are responsible for obtaining insurance requirements and
ensuring that the vendor has the proper insurance in place prior to the
provision of goods or services.
 FIU Contract Templates
 Purchase Order
 Independent Contractor Agreement*
 Term contract that allows for multiple payments to vendor
 Service/Performance Agreement*
 One-time Payment contract and service/performance must be on the
allowable unencumbered payment list
 Cannot be used for foreign vendors
*Refer to Contract Templates Procedure:
 FIU Master Agreements
 Hotels: http://finance.fiu.edu/purchasing/4contra_master_hotel_agreements.html
 Business Services: http://shop.fiu.edu/
 Click-thru Agreements
 Vendor Contracts
Vendor Contracts
*Service and Performance/Entertainment
Agreement (One Time Payment)
Purchasing Services Workload
Buyer Productivity & Cycle Time FY2014
No. of
PO $ Volume
No. of
No. of OneTime
No. of
Purchasing Services Goals
 Improve Cycle Time
 PO cycle time of six (6) business days
 Contract cycle time of five (5) business days
 Respond to department/vendor emails and voicemails within one
business day
 Increase Compliance
 Training development (i.e. Purchasing 101, Contracts 101)
 Resource development (i.e. process flowcharts, Purchasing
 Technology (i.e. ePro, improvements in PS)
 Increase Savings
 Strategic Sourcing
 Consortium/Cooperative Agreements
 Negotiations
Purchasing Services Web Site:
Financial Systems and Support Services:
OGC Forms:
Training Resources:
Office of the Controller Contact List:
Office of the Controller Forms:
Signature Delegation:
Please complete the course survey.

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