Purchasing

1. Purchasing What you need to know to expedite purchases

2. Rensselaer’s Responsibility • Research Institute – receives federal funding • Compliance with Federal Acquisition Regulations • Procedure consistency throughout Institute, regardless of funding source

3. Federal Guidelines • Free and open competition to maximum extent practical • Justification for non-competitive purchases • Fair and Reasonable Pricing • Vendor Diversity Policy • Vendor Diversity Database • http://www.admin.rpi.edu/SBPS/index.html

4. Bid Solicitation • Less than $2,500 • 1 quote required • Must secure reasonable prices • Greater than $2,500 • Three written quotations must be obtained whenever possible – Check vendor diversity database for quote opportunities • Exceptions at discretion of Purchasing Dept.

5. Capital Equipment • All capital equipment purchases for less than $50k must be budgeted in the department’s operating budget. • All other capital equipment purchases (in excess of $50k) need to be approved by the Finance Division • During budget process • Submit CER (Capital Equipment Request)

6. Types of Solicitation Always feel free to contact purchasing for help or assistance in any purchasing endeavor. • Request for Quote – suppliers commit to price • Request for Proposal – method to gather information and pricing when some elements are unknown (Contact Purchasing) • Request for Information – Formal method to gather information (Contact Purchasing)

7. Exceptions from Bidding • NY State Contracts • Need NYS Contract number • Due diligence for fair and reasonable pricing • Competitively Bid Consortium Contracts • Obtain qualified consortium organizations from Purchasing • Due diligence for fair and reasonable pricing • Sole / Single Source Purchases • Written justification • Statement as to only vendor • Document vendor search • Reasonableness of Price

8. Sole / Single Source • Sole source – Only 1 vendor is capable of providing a particular item or service • Single source – Product is available from other vendors, however, for specific reasons it must be purchased from a specified vendor

9. Insurance Requirements • Any services being performed on campus need to be submitted on purchase requisitions due to potential insurance requirements. (The Purchasing Dept. needs to make this determination.)

10. Contract Review • All contracts are reviewed in an effort to mitigate risk for Rensselaer • Terms and conditions are negotiated after review is complete • Only those individuals with signing authority may sign contracts – please forward contracts to Purchasing for review and signature

11. Preferred Vendor Agreements • Purchasing has begun to establish these agreements based upon historical yearly spend • Provides opportunities for cost savings to Rensselaer based on aggregation of buying power • Success is dependent on campus involvement and usage of these agreements

12. Very limited use: Advertising Honorariums Awards / Prizes Insurance (Risk Mgmt only) Books Memberships / Dues Business Dinners /Lunches Medical Services (Infirmary Only) Conference Registrations Postage Employee Reimbursement (Not Travel) Express Mail/Freight Subscriptions Fees Utilities (incl. Cable) Direct Payments

13. About the Purchasing Card • Our card offers a “one card solution” for purchase transactions, capital equipment purchases, travel and cash/ATM withdrawals • The Card is in the user’s name, but Rensselaer pays the bill and is responsible for any liability incurred • The only person authorized to use The Card is the person to whom it was issued and who is responsible for all transactions processed on The Card

14. Cardholder/Liaison Responsibility • Abide by all policies and procedures governing the use of the card • Maintain a monthly purchase transaction log and/or travel transaction log • Edit transactions to reflect current accounting information to be charged • Notify Bank One or the Card Administrator of unauthorized charges • Reconcile transactions recorded on a monthly purchase or travel log against the monthly bank statement • Retain all purchasing card records in the department, readily available for review or audit

15. Limits and Exclusions • Spending Limits per Transaction • Determined by individual department, but no greater than $2,500 unless authorized in writing by the appropriate cabinet member or dean, and approved by the President. • Spending Limits per Cycle • Monthly cycle begins on the 24th and ends on the 23rd • Expenditure Type Exclusions • Other restrictions governed by the Purchasing Policy and Procedure Manual

16. Purchasing Capital Equipment, Component or Fabrication Parts • The total cost must be less than $2,500 • Purchases must comply with the Office of Property Administration’s policies • The account code must be edited in Banner to a valid capital equipment account code • A listing of property account codes and descriptions is available in the Purchasing Department’s Online Card Manual

17. Purchase Process Make a Purchase *Educ Discounts *Tax Exempt *Shipping Info *Obtain Receipt Record Trans. on Purchase Log Maintain Records Receive Item Review Vendor Invoice/Receipt Edit Journal Voucher in Banner Reconcile Log to Bank Statement Match Receipt to Purchase Log

18. Purchasing Card Non-Compliance Policy • Cardholders are required to abide by all policies and procedures governing the use of the card. • Infractions may require corrective action, retraining, or may result in card suspension or revocation. The policies are outlined in the Purchasing Card Manual online at • http://www.admin.rpi.edu/purchasing

19. Supplier Diversity

20. Rensselaer’s Small Business Policy • Endorsed by Dr. Shirley Ann Jackson – 2000 “I am in full agreement with this policy and expect each department to extend its best effort to comply with it. Every department needs to be knowledgeable of the policy and optimize the use of small business concerns”. www.admin.rpi.edu/sbps

22. Communiversity City of BusinessInitiatives

23. Troy Spend Goals • 2001 $2.60 million • 2002 $2.60 million • 2003 $2.73 million • 2004 $2.86 million • 2005 $3.00 million

25. HigherMarkets eProcurement Solution • One Window Solution • On-Line Requisition Process • Procurement Card • Automated Approval Process • Budgetary Approvals • Special Approvals • Sourcing Functionality • Preferred Vendor On-Line Catalogs • Catalog Content • Punch-Out • Hosted

26. HigherMarkets eProcurement Solution • Integration with Banner • 3 Phase Integration • Phase 1 - On-Line Requisitioning and PO Issuance • Completion expected January 2005 • Phase 2 – On-Line Receiving, PO Changes, and FAMIS • Completion expected June 2005 • Phase 3 - Settlement

27. HigherMarkets eProcurement Solution Expected Benefits • Improved Order Cycle Time • Elimination of Paper and Manual Processes • Improved Control through Workflow • Cost Savings • One Easy Way to Purchase

28. Additional Training Available: • Requisition Completion • Indefinite Delivery / Indefinite Quantity Agreements • Blanket Purchase Agreements

29. Don Ammerman Purchasing Agent ammerd@rpi.edu x3265 Linda Cook Purchasing Agent cookl@rpi.edu X 2156 Ron Hajduk Purchasing Agent hajdur@rpi.edu X 6104 Mike Higgins Purchasing Agent higgim@rpi.edu X 8692 Kathy McAuley Strategic Procurement Manager mcaulk@rpi.edu X 2577 Ann LoPonto Director Materials Management lopona@rpi.edu X 8439 Eddie Jackson Associate Director Small Business Procurement Services jackse@rpi.edu X6597 Eileen Biggins Procurement Card Administrator biggie@rpi.edu X2724 Contact InformationPlease visit our websites:www.admin.rpi.edu/purchasing/ie40_index.aspand www.admin.rpi.edu/sbps