Ohio State Newark Purchasing Policy

 Introduction
    Purpose
    Ethics
    Location

 Purchase of Goods/Services/Supplies
    Requisition

 Purchase Orders
    One Time Purchase Order
    Blanket Purchase Order
    Change to Requisition and Purchase Orders

Procurement Card

 Purchasing Agent Role

 Bidding
    Types

 Quotations

 Waiver of Competitive Bid

 Authorization for Procurement
    Signing Authority
    Special Approvals/Review
    Board Approval

 Special Buying Considerations
    Ohio Industry for the Handicapped
    Ohio Penal Industries
    Independent Contractor vs. Employee Relationship

 Contracts
    1. Types of Contracts
    2. Campus Term Contracts
          Inter University Counsel (IUC) Purchasing Group
          Price Agreement
    3. State of Ohio Contracts
    4. Educational and Institutional (E&I)
          Cooperative Contracts
    5. Prime Supplier Agreements

    6. U.S. Communities Contracts

 Renovations/Construction Buying
    Prevailing Wage
    Contract Compliance

 Coordination with Other Departments

 Accounting

 Accounts Payable
    1. Invoice
    2. Reimbursement
    3. Prepayment/Advances
    4. Check Request Document
    5. Tax Exemption

Courier Service

 Receiving Department

Introduction

Purpose
The policy guidelines set forth in this document are intended to ensure compliance with the guidelines set forth by the State of Ohio Revised Code, the State of Ohio administrative Code, the Board of Trustees and the Columbus Campus for all authorized Campus funded purchases.

It is not the purpose of this document to supercede or invalidate requirements or restrictions that may be in effect in individual departments, provided these are within the Campus’ guidelines. Each purchaser needs to be aware of his/her department’s own policy restrictions regarding purchases

Ethics
All Purchasing Department employees and all other campus personnel authorized to conduct purchasing activities must adhere to the principles and standards of the Ohio Ethics Law, Chapter 102 and Section 2921.42 of the Ohio Revised Code. It is contrary to the college’s policy for any employee to accept any gratuities, premiums, or other incentives. As a member of the National Association of Educational Buyers, the campus also subscribes to their code of ethics. Each employee involved in the expenditure of public funds is held at the highest degree of public trust and will abide by the following:

• Give first consideration to the objectives and policies of the institution.
• Strive to obtain the maximum value of each dollar of expenditure.
• Decline personal gifts or gratuities.
• Grant all competitive suppliers equal consideration in so far as State and Federal statute and policy permits.
• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
• Demand honesty in sales representation, whether offered a verbal or written statement in advertisement or a sample of the product.
• Receive consent of the originator of proprietary ideas and design before using for competitive purchasing purposes.
• Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier, and/or be willing to submit any major controversy to arbitration for others to review.

[top]

A Purchase Order is an offer of a contract between the Campus and a supplier. Purchase Orders are issued through the Purchasing Department with an appropriate Purchase Order Number. Purchase Order terms and conditions address legal and contractual obligations of the supplier and the campus on each purchase order issued. Purchase orders also specify delivery to the Receiving Department and direct billing to Accounts Payable.

Purchase Orders are sometimes supplemented by a formally executed contract. See contract section for additional information. The V.P. of Administration in Columbus has approval authority for most legal contracts. Please note the campus may find it necessary to consult with legal counsel before signing contracts.

Requisition

A requisition is a campus form used to communicate a request for the purchase of goods, bids, or services from off campus suppliers. Requisitions are:

• Initiated by a campus department for the purchase of goods or services;
• Submitted to the Purchasing Department for processing;
• Should include all appropriate information about vendor, item description, quantity, etc. before it is submitted;
• Should include all budget organization codes;
• Should also include all appropriate authorization(s) at time of submission;
• Precedes the issuance of a Purchase Order by the Purchasing Department.

[top]

Purchase Order is issued by the Purchasing Agent to specific supplier(s) as an authorization for purchase and commitment of future payment.

• Issued to off-campus suppliers
• Issued and authorized by the Campus Delegated Buyers for less than $5,000 or have an additional authorization by the Columbus Campus for all Purchase Orders issued over $5,000.

• Each Blanket Purchase Order will be issued to a single supplier and may not exceed $25,000 for goods and $50,000 for services.
• Each Blanket Purchase Order will have a unique Purchase Order number,
• For a Blanket Purchase Order where monthly billing of goods or services vary, the invoice must be approved by appropriate department representative prior to payment.

Procurement Card

  1. The cardholder agrees to abide by all State laws, University Board resolutions, University purchasing policies, the department's Internal Control policies and other applicable codes or laws. Per policy, all transactions must be recorded and authorized with a signature on the PCard transaction form. The cardholder agrees to become familiar with, abide by and utilize purchasing manuals and procedures, and to attend cardholder-training sessions as needed. Such manuals and procedures can be found on this site (OSU PCard), as well as:

          OSU Purchasing
  Controller's Office

2. Fraudulent use or misuse of the card will result in revocation of the card. The University will seek restitution for any inappropriate charges made to an account. Misuse of the card may result in corrective action up to and including termination and/or possible criminal action.

3. All purchases are to follow customary University purchasing guidelines. The National Association of Educational Procurement (NAEP) Code of Ethics applies to all individuals purchasing on behalf of The Ohio State University. (OSU Purchasing Ethics Reference)

4. The cardholder agrees to purchase goods that are available under University contracts, pricing agreements and/or prime suppliers. A complete list of these offerings is available at OSU Purchasing Contracts Reference.

5. Capitalized equipment costing over $3,000 must not be purchased with a procurement card. The procurement card does not generate the required equipment inventory tracking information.

6. The University does not pay sales tax or use tax in Ohio and other states that have a sales tax exemption. Purchasers are responsible for making sure that tax is not charged, when applicable.  If sales tax is charged in error, reasonable attempts should be made to recover the charges.  Sales tax charges of $10 or more must be recovered from the supplier or the individual who made the purchase.

7. All purchases made using the Procurement Card must be for official university business (NO PERSONAL USE).

8. The PCard must not be used for OSU Research Foundation (OSURF) purchases.

9. Every type of transaction (i.e.: in-person, telephone, fax, Internet) must have an original, itemized receipt documenting the purchase. Receipts must be provided to the designated Reconciler promptly.

10. The PCard may be used by an Individual Cardholder to purchase over the Internet after ascertaining that the website is secure.

11. Do not share your card if it’s embossed with your name (does not apply to department cards)

12. The use of the procurement card is subject to a single transaction limit of $1,000 and a monthly spending limit of $5,000.

13. Purchases must not be split to bypass the single transaction limit. Meaning one purchase may not be broken into multiple transactions by the vendor.

14. A Card User cannot accept cash or a due bill for a return; instead a credit must be applied to the account.

15. If you terminate employment at the University, or transfer to another department, your card must be cancelled within 30 days of your departure.

16. Cardholders who are on a leave for purposes that benefit the University, i.e. professional, administrative, or research-related leave, may retain possession of the PCard during the leave period with the approval of the college or administrative senior fiscal officer. Cardholders who are on any other type of leave status must cancel their PCard(s) immediately.

17. The following is a list of restricted purchases:

•  All services including independent contractors

•  Goods that require the purchaser to sign a contract or document that requires administrative review (i.e. agreement that accompanies software purchase)

•  Advertising (except classified ads under $1,000)

•  Cash advances or ATMs

•  Gas cylinders

•  Gasoline (except rental vehicles)

•  Guns, weapons, ammunition and explosives

•  Internet connectivity (and associated Internet expenses) except while on travel status

•  Letterhead

•  Painting services

•  Personal expenses

•  Portable and mobile radio equipment

•  Purchases on sponsored programs through the Research Foundation

•  Radioactive material

•  Satellite dishes/antennas

•  Security alarm systems

•  Telecommunications/telephone equipment and services

•  Signage and graphics

18. Misuse of card:

Progessive disciplinary steps for Purchasing Card infractions are outlined in each College/VP area's financial control structure policy.  these steps include verbal notification, written notification, temporary suspension and/or permanent loss of privileges.

Fraudulent use of  the Purchasing Card will result in immediate revocation of the card and may result in corrective action up to and including termination and/or criminal action.  In addition, the University will seek restitution for any inappropriate charge.

19. Internal Control Policy

[top]

Purchasing Agent Role

The Purchasing Office reserves the option to purchase from other than suggested vendors, or supply alternate items for comparable services, supplies, and/or equipment if obtainable at a lower price or total cost. This may include items which are part of a pre-purchase contract. If changes are made to the requisition request for other reason(s) the requisitioner will be consulted.

[top]

Bidding

The Columbus Purchasing Department has a responsibility to solicit bid requirements from two or more suppliers when the estimated value of the requested purchase is $25,000 or greater for goods (equipment, materials, supplies) or $50,000 or greater for services, unless the items can be obtained under existing contracts. The Board of Trustees in Columbus established the bid thresholds. The Purchasing Department may bid any request regardless of the dollar amount when, in their judgement, it best serves the campus. It is the responsibility of the Purchasing Department in Columbus to maintain an approved bid list.

Request for Proposal (RFP)
This is a request of suppliers to provide a customized response, usually for services or good that include a service element. The supplier response generally includes pricing, proposed implementation plan, and timeline for delivery of goods or services.

Request for Information (RFI)
This request is issued to suppliers within a specific commodity or market to determine the viability of a concept and to obtain market information. No award is usually made from this process.

Quotations The Newark Purchasing Department reserves the option to solicit quotes from two or more suppliers when the estimated value of the requested goods or supplies is $5,000 or greater.

[top]

Waiver of Competitive Bidding

 The campus secures goods and services competitively wherever applicable. The Columbus Purchasing Department office may waive competitive bidding or quotes and approve waiver request(s) when justified with the following Waiver form. Following are reasons to consider granting a waiver of competitive bidding or quotations:

Sole Source: There is not another company who provides goods or services similar to the requested purchase; the request for goods or services is unique in design, performance, or user specification.

Emergency: The goods or services are needed to correct or prevent an emergency repair or replacement of existing equipment essential for daily operation.

Economics: Responsible economics procurement relieves the campus of potential additional expense that will result from not making a purchase; use of another supplier would require considerable training, time and money to evaluate; the goods or services are used in on-going, long-term projects; and/or the product or services offered is at a substantial discount due to current market conditions and price structures.

[top]

AUTHORIZATION FOR PROCUREMENT

Signing Authority
In general all administrative Unit Budget Managers (UBM) have the authority to complete requisitions without Senior Administrative approval up to $1,000. Senior Administrators may choose within individual departments to change this approval level. Senior Administrators have signing authority up to $10,000 for items within their budgetary supervision. Exceptions to this policy which increase signing authority, are in writing, approved by the Dean/Director, and kept on file in the Finance Division, with a copy in the Purchasing Department.

Prior to submitting a Requisition or Request for Payment to Purchasing , it is the responsibility of the person submitting the document to obtain proper signature authorization. After receiving the document in the appropriate office, funds must be available in the corresponding operating budget to continue processing the document. All incomplete documents will be returned to the UBM for appropriate follow up.

Special Approvals Review
The following purchases require additional approval of designated individuals or their representatives in the areas noted, and must be processed through the Purchasing Department:

• Advertising (except classified advertising): Director of Marketing & Public Relations
• Capital Equipment: Chief Fiscal Officer and Dean/Director
• Classified Advertising: Director of Human Resources
• Computer Equipment/Software: Chief Information Officer
• Construction: Project Manager and Chief Fiscal Officer
• Entertainment contracts for student community events: Director of Student Affairs
• Equipment Leasing: Chief Fiscal Officer
• Insurance (Health): Director of Human Resources
• Letterhead and Business Cards: Director of Marketing & Public Relations
• Off-campus Lease Space: Chief Fiscal Officer and Dean/Director
• Renovations: Project Manager and Chief Fiscal Officer
• Signage and Vehicle Graphics: Director of Marketing & Public Relations and Project Manager
• Telephone Equipment and Services: Chief Information Officer
• Temporary Employment Services: Appropriate Senior Administrator, Chief Fiscal Officer and Dean/Director and Director of Human Resources
• Video Production: Director of Marketing & Public Relations
• Alcohol ONLY with prior approval by Dean/Director

[top]

SPECIAL BUYING CONSIDERATIONS

Ohio Industry for the Handicapped
Sections 4115.31- 4115.35 of the Ohio Revised Code directs state entities to use a qualified non-profit agency for the purchase of products and/or services which are available from an agency employing persons with disabilities, notwithstanding any law requiring the purchase of products and services on a competitive basis.

Ohio Penal Industries
Sections 5147.07 of the Ohio Revised Code directs state entities to utilize the Department of Rehabilitation and Corrections for the purchase of products and/or services available from State Corrections and Penal institutions.

Independent Contractor vs. Employee Relationship
Policies that determine the difference between an employee and an independent contractor are based on case law and Internal Revenue Service (IRS) interpretation.

If workers are incorrectly classified as independent contractors, the IRS can impose fines and penalties for uncollected taxes, including income taxes and social security taxes. Consequently all non-employee arrangements should be clearly documented, and the documentation maintained in the Accounts Payable Department. The following list identifies some situations when an individual could be an independent contractor.

• Infrequent guest performance or artists not affiliated with the campus
• Guest speakers or lecturers with a particular expertise brought in on a short-term basis
• Individuals providing professional services such as attorneys, accountants, and other technical or administrative experts

Final determination of the employee vs. independent contractor status will be made on a case by case basis by the Director of Human Resources, in consultation with the Chief Fiscal Officer.

[top]

CONTRACTS

A purchase contract is usually the result of a bidding process identifying and combining volume requirements. Contracts with firm pricing or discounts for specific goods, services, and terms are established to obtain the best possible value for the campus. Contracts are generally written for specific period with the option for at least one additional year extension. Once the contract is awarded, individual purchases may be made against this contract without requiring additional bidding.

Contracts will be reviewed for several components:

1.  A statement of compliance/enforcement based on Ohio law.
2.  Notification of compliance with all applicable Equal Opportunity Laws.
3.  Proper indemnification language.
4.  Certification of funds language.
5.  Proper confidentiality language based upon the State of Ohio's public record laws.

Contracts must be approved by the appropriate Senior Staff member, reviewed by the Chief Fiscal Officer and authorized by the Dean/Director. The Chief Fiscal Officer reviews for insurance liability, budgetary considerations, and determination/coordination of legal opinion from appropriate attorney of record. Final approval must be obtained from legal counsel in Columbus and the V.P. of Administration, if deemed necessary.

[top]

Types of Contracts

The Purchasing Department encourages use of all contracts as follows:

Campus Term Contracts

To combine needs specific to the unique needs of the campus. Examples include consultants, media buys, etc. Negotiation and approval of term contracts as coordinated by the Purchasing Manager.

Inter-University Council (IUC) Purchasing Group Price Agreement

The IUC is a buying consortium commissioned by the Ohio Board of Regents. Its members represent 38 State institutions of higher education in Ohio to combine needs.

Bidding responsibility of a contract is delegated to specific schools.  Changes to existing price agreements require the approval of the membership.  The IUC Executive Secretary, located within Ohio State’s Purchasing Department distributes contracts.

Purchases from an IUC vendor will be coordinated by the campus Purchasing Manager.

State of Ohio Contracts

These contracts are available for use by State of Ohio agencies.

Campus copies of State of Ohio contracts are maintained by the Purchasing Department

Educational and Institutional Cooperative (E&I) Contracts

E&I Contracts is a national line consortium comprised of colleges and universities, used as a competitive bid source when appropriate.

Prime Supplier Agreements

These Agreements are a contract for a specific commodity group. Awarded to a primary supplier for an extended period of time.  Typically used for gas, electric, and other utility purchases.

U.S. Communities Contracts

U.S. Communities is a nationwide strategic sourcing program designed by public purchasing professionals for use by government agencies and public-benefit non-profits throughout the country.  Used as a competitive bid source when appropriate.

[top]

Renovations/Construction Buying

The campus defines construction as building maintenance, repair, renovation and new construction. This may include changes in walls, doors, electrical, plumbing, heating, venting, air conditioning systems, site work, etc.

Requisitions for a renovation project (less than $15,000) are processed after review and approval by the Project Manager and Chief Fiscal Officer. Requisitions for construction project (greater than $15,000) are processed after review and approval by the Project Manager, the Chief Fiscal Officer and Dean/Director.

The Chief Fiscal Officer or designee is responsible for monitoring contract costs associated with renovation and construction. Changes to contracts will be coordinated through the Purchasing Office and appropriate other levels of review.

Prevailing Wage

Chapter 4115 of the Ohio Revised Code relating to the payment of prevailing rates of wages on public improvements states that prevailing wages must be paid. These rates are adjusted effective the first day of January of every even numbered year.  Click here to view information.

Contract Compliance
 The Project Manager, Chief Fiscal Officer, and Purchasing Manager will monitor all construction contracts to ensure compliance with State and Federal laws regarding affirmative action. These guidelines are set forth in the Ohio Revised Code sections 3345.27-3345.30. The contract compliance procedures are in effect for all campus-funded construction, renovation, and/or maintenance project bids on the campus with an estimated value of $15,000 or more.
 
 [top]

Coordination with Other Departments

Accounting

Each purchase or payment must be charged to an authorized organization number. Individual Unit Budget Managers and Senior Administrators’ signing authority is listed in another section and is applicable to a unique organization number assigned to each department.

Accounts Payable and Travel

Invoice
An invoice is a billing document that provides itemized descriptions and prices for the goods and/or services of an off-campus supplier. Invoices are matched with Purchase Orders and packing slips to create an authorization for payment. Therefore, the supplier should send invoices directly to Purchasing unless otherwise noted on the Purchase Order. If a department receives an invoice or packing slip, it should be submitted directly to Purchasing.

Reimbursement
A reimbursement is the repayment of funds that have been expended by an individual on behalf of the campus. Reimbursement differs from refunds in that a refund is the repayment of money that has been paid to the university. Efforts should be made to use the university’s regular purchasing procedure whenever possible to avoid reimbursement in the normal course of day-to-day business.

Items which can be reimbursed:

• Business related meals
• Reception cost
• Expenses related to travel
• Low cost emergency business supplies

Prepayment/Advances
Under policies established by the Auditor of the State, prepayment for goods and services is not permitted except for the following items:

• Preregistration for conferences
• Transportation (air, train, bus) when payment is required at the time of reservation
• Magazine subscriptions
• Memberships & Dues

Tax Exemption
The campus is tax exempt. Click on link for blank Certificate of Exemption .

Expenditure Policies
The Columbus Campus has specific guidelines for certain types of expenditures. See the Expenditure Policy on the controller's website.
 

[top]

Courier Service

In an effort to provide quality intercampus delivery, here is a list of general guidelines and information about the use of courier service.

1. The courier's primary focus is the Newark Campus intercampus deliveries. This includes delivery of packages/supplies/equipment to various offices on campus. Special delivery requests (paper, items from storage, etc.) will be completed in 2 to 3 working days.
2. The courier travels to Coshocton every Tuesday, Columbus and Pataskala every Thursday (*see below) and to Mount Vernon on Wednesdays.
3. This person is also the campus Receiving Clerk. Since the campus receives between 50 to 250 packages a week, a major portion of the courier's time is spent checking in and delivering these packages. Our goal is delivery within 24 hours. However, it could take 2-3 working days.
4. Finally, the courier also occasionally assists with local pickup or deliveries for the campus with a one week notice to the Purchasing Office.

*The courier travels to Columbus on Thursdays throughout the year, carrying supplies, mail and other items. The courier leaves for Columbus at approximately 9:30 a.m. Faculty and staff may use this service by contacting the Purchasing Office at ext. 234.

There are several regular stops.   "Hand" deliveries are available at any of those buildings and others upon request.

1. Mailroom Kenny Rd
2. Corner Store
3. Chemical Warehouse
4. Blankenship Hall
5. Lincoln Tower
6. Lord Hall

NOTE: Packages/mail dropped at the Columbus Campus Mailroom will be delivered same or next day to the appropriate office, per the Columbus staff.

Overnight delivery and individual hand delivery to Columbus is also available from external agencies. The Services Center supplies the special envelopes and/or boxes. This expense will be charged to an individual budget.

Requests submitted less than one week in advance or errands not limited to pick up or delivery service only are the responsibility of individual departments. If you need an item picked up which does not fit these guidelines, please call the Purchasing Office to review your options.

Receiving Department

The Receiving Department serves as central receiving and distribution for inbound shipments of merchandise received on orders issued by the Purchasing Department. All packages delivered to campus will be opened and forwarded to the appropriate person/department.  When goods are delivered to the person/department they become their responsibility at the time of receipt.  All items should be checked for receipt and damage and then forward all documents enclosed to Purchasing.

The Purchasing Department is responsible for expediting replacement shipments and filing claims for damaged shipments. Contact the Purchasing Department @ 234 for further information.

Have questions? email Maggie Snyder, Purchasing Manager, extension 233

[top]