Purchasing Presentation

1. Purchasing Presentation Mike Thueson Jake Mecham

2. The Four P’s! • Purpose • Policy • Practices • Procedure

3. Purpose – Why We Exist • Protect Tithing Funds - Stewardship of BYUI • Degree of Separation • Management/financial authorization controls • Scriptural law of witnesses • Mission Statement - web link • Business Professionalism • Negotiation experience and skill • Analysis • Communications/Information sharing • Vendor relationship management • Leverage/network with the Church, CES, and other purchasing organizations • Provide established contracts, pricing, and relationships for many of our campus needs

4. Policy (University’s Procurement Policy) • Purchases from $0 to $2,500 can be purchased with a purchasing card, no quote is required but comparison pricing is suggested, they can also be sent to the purchasing office in the form of a Purchase Requisition (PR). • Purchases from $2,500 - $5,000 require a PR, Purchase Order (PO), and 2 verbal quotes. • All purchases over $5,000 require a PR, PO, and two written quotes. • Contracts $25,000+ &Purchases (POs) $90,000+:must be signed by an executive officer (definitions of contract & PO on web) • Don’t disclose information pertaining to pricing, budgets, or other vendors • The Purchasing Office is authorized to make commitments over $2,500 • Exceptions • Agency • “University policy stipulates that unauthorized purchase commitments are the responsibility of the individual making the purchase and not the responsibility of BYU-Idaho.”

5. Best Practices for Procurement • Organized Processes (RFI, RFQ, RFP) • Competition • Fairness • Legal/Ethical • Integrity- policy on information shared • Long-term vendor relationship management • Best Business Practice - Procedure

6. Procedure – Simple Purchase • Works for consumer buying, not appropriate for institutional buying • Expensive • Actually more time • Inefficient • Submission to the vendor, enslave ourselves • Lack of revelatory process

7. Procedure – Best Case Scenario • Control of process, on our terms • The “studying of it out” allows for the Revelatory Process

8. Procedure – Best Case Scenario Flow

9. Plan • Identify Need • Project Charter, Environmental Impact, Strategic Value, Requirements, Specifications, Expectations, SOW • Purchasing Involvement • Potential Single Source • If a need to contact a vendor arises, information sharing/disclosure • Determine the right procurement strategy • Team Formation • Project/ Purchase Authorization • Benefits: maintain BYU-I control and power of information, avoid enslavement, allow for divine guidance

10. Develop • Study & Analysis • Develop additional information • Plan marketplace involvement (RFI, RFP, Vendor presentations, visits, etc.) • Leverage/network with the Church, CES, and other purchasing organizations • Evaluation • Reach out to marketplace • Solutions from marketplace (Proposal responses) • Technical & business evaluation – price, terms, mitigate risk, ethical/legal • Decision/Vendor negotiation • Control of information is critical • Develop implementation plan & schedule • Warnings: pilot, demo, webex, evaluation, commitment • Disclosure timing – enslavement, getting hooked on vendor’s terms • What not to say/what not to do – (group discussion) • Benefits: flush out issues, concerns, problems, etc. • Better informed; mitigate risk, cost, possibility of failure; our terms vs. vendors terms • Allows for revelation, inspiration, & guidance

11. Execute • Acquisition • Buy – Issue PO/Contract • Implementation • Implementation plan & schedule • Delivery • Work kick-off • Benefits: • Planned/Smoother implementation • Resourced – committed resources • Better experience for ALL • Communication & understanding is enhanced between vendor & stakeholders • Faster deployment & go-live date • More efficient • Strengthen vendor relations/develop a partnership • Maintain control

12. Sustain • Acceptance/Post Evaluation • How did it go? • How did we all do? • What can we learn? • Did the purchase meet our requirements, specifications, expectations, SOW? • Is the need satisfied? Did we get what we needed? • Long-term Vendor Management • Strengthen & maintain vendor relations • Maintain integrity & the good name of BYU-I and the Church • Benefits: BYU-I receives a solution to meet our needs, a vendor partnership for future opportunities

13. Thanks! Please allow us to help with your purchasing needs! • Purchasing web link, how to find us on the web: • https://www.byui.edu/financial-services/purchasing • Home page search • Employee page: • Employee Finances > Financial Services > Purchasing • Employee Services ( click “more”) > Purchasing & Disbursements • I-BUY (e-procurement marketplace) • https://eprocurement.esmsolutions.com/?me=byu-id • Questions/Discussion?