Purchase College - Business Office - Procedure Manual

Business Affairs

SECTION VIII

PURCHASING

The Purchasing Office is responsible for the procurement of commodities, goods, and services for the College with the exception of those considered to be direct pay, non-procurement items (Section II-C).

Requisitions for these types of items and services are processed by the Accounts Payable Office. If you have a question as to whether a purchase is of a competitive or direct pay nature, please contact either the Accounting or Purchasing Offices.

Procurement

The purchasing process begins by submitting a purchase requisition to the Purchasing office, via campus mail, hand delivery, or FAX (251-6075). It is important to provide the Purchasing office with any information concerning delivery deadlines, special shipping instructions, etc., which may affect a purchase.

While a primary function of the Purchasing Office is to identify reliable vendors, departments are encouraged to contact known vendors directly for pricing and availability of goods, and to provide whatever information they obtain to the Purchasing office via the requisition. Not only does this enable the Purchasing office to process the order quicker, it also provides the department with an estimate of the cost of the goods or services.

Upon receiving the purchase requisition, the Purchasing office encumbers the amount on the requisition to allow for payment at the time the goods or services are received. Requisitions for which there are insufficient funds in the designated account or object will be returned to the issuing department.

After the encumbrance has been completed, the purchase requisition is assigned to a purchasing agent, reviewed for all necessary information and documentation. If necessary, the purchasing office will contact the requisitioner with any questions he/she may have regarding the purchase.

The purchasing office proceeds to seek competitive price quotes as appropriate. The type and extent of competition required depends on the dollar amount of the purchase. Various State, SUNY, and campus policies result in the following procedures:
- Purchases valued at $5,000 or less, up to three quotes are usually obtained. Purchases between $5,001 and $10,000, a minimum of three written quotes are required.
- Purchases less than $10,000 can be made from certified minority - and women-owned firms without competitive pricing if the price is reasonable. The reasonableness of the cost must be determined to by the purchasing agent and can generally be ascertained by obtaining at least one other quote. Similar policy applies to the purchase of certified recycled and re-manufactured products and computers made or assembled in New York State.
- Purchases between $10,001 and $20,000 require a minimum of five sealed bids and compliance with legislation requiring advertising in the Contract Reporter. It is important to note that the process of advertising in the Contract Reporter adds approximately five weeks to the procurement process.
- Printing orders to commercial printers with a cost of $10,000 or more also require approval of the Office of the State Comptroller (OSC).
- Purchases exceeding $20,000 require five sealed bids and specific advertising in the Contract Reporter. It is important to note that the process of advertising in the Contract Reporter adds approximately five weeks to the procurement process. Departments should therefore plan accordingly.
- OGS Commodity purchases of $50,000 ($25,000 for printing) may require an Office of General Services (OGS) review. This process generally takes two to three weeks.
Questions regarding these policies should be addressed to the Purchasing Office at 251-6070.

When the purchasing office has acquired a sufficient response to the request for competition, the order is placed via a Purchase Order. Copies of the purchase requisition and purchase order are returned to the requisitioner. The purchase order should be reviewed by the requisitioner to ensure accuracy and to note possible changes in price, vendor, etc. Purchasing sends additional copies of the purchase order to the Accounts Payable Office and the Receiving Dock.

To change the order after it has been placed, the requisitioner should submit a memorandum stating the nature of the change and providing the purchase requisition or purchase order numbers. A change notice will be issued and sent to the vendor, requisitioner, etc.

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Documentation

The dollar amount of a purchase and nature of the item(s) being purchased may require additional information or documentation, such as:
- Sole source justifications
- Waivers from the appropriate administrative office
- Detailed specifications of item(s) to be purchased
- Samples of printed materials for commercial printing orders
- A statement of reasonableness of price for sole source purchases
Additional information/documentation may be requested when it is required or if it clarifies a request. Every purchase transacted through the Purchasing Office is subject to audit by a number of College and State offices. It is therefore necessary to maintain complete and sufficient documentation, which is able to withstand audit standards.

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Market Sources

The Purchasing office has available a wide variety of primary and open market sources for competitive purchases. Primary sources include:
1. State contracts - contracts, negotiated by the Office of General Services (OGS), which provide discounted pricing to all State agencies. Flexibility legislation provides for the College to purchase contract items from other vendors if we can get a price lower than the contract price
2. Multi-campus contracts - Occasionally a need common to a number of campuses arises and SUNY negotiates a contract that is available to all campuses. There are currently several active contracts for items, including computer software, software licenses, and forms.
3. Minority - and Women-Owned Business Enterprises (MWBE) - Article 15-A of the Executive Law encourages all State agencies to maximize business opportunities for minority and women-owned firms by making every effort to place orders with such firms. The College therefore places high priority on doing business with these firms.
4. Preferred sources - The College is required to purchase from preferred sources whenever possible. Examples of preferred sources include Department of Correctional Services (Corcraft), Industries for the Blind and Industries for the Handicapped. There is no requirement to seek competitive pricing when using these vendors. When placing orders for items sold by Corcraft (primarily office furniture), the Purchasing staff is required to contact Corcraft and obtain a release that allows the purchase of goods from commercial vendors. Purchasing staff should be contacted in the early stages of any planned purchases (such as office furnishings) that may be affected by these regulations.
The sources for open market purchases include:
1. A vendor database that includes all vendors with whom the College has conducted business with in the past three years and all vendors who request to be placed on our bid list.
2. The Thomas Register, a listing of vendors nationwide by commodity and service.
3. Catalogs supplied by vendors.
4. Vendors who subscribe to advertisements in the New York State Contract Reporter, a weekly publication which lists anticipated procurements of significant dollar levels by State agencies.
Occasionally a situation arises in which there is no need to seek competition. These situations are referred to as "sole service" and occur when there is only one vendor/contractor who can supply the goods or perform the service. In this case, the vendor/contractor is designated as a "sole source." Use of a sole source requires a written statement that the vendor selected is the only vendor able to supply the specified goods or services. "Sole source" purchases exceeding $20,000 are subject to requirements for Contract Reporter advertising.

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Special Purchasing Processes
1. Walk Throughs
  Occasionally situations arise in which goods or services must be ordered and/or delivered within a very short timeframe. The Purchasing Office has established a procedure to expedite these orders. Requisitions that are marked "WALK THROUGH" and delivered or FAXED to the Purchasing Office will be processed within one-half a business day.
2. Emergency Purchases
  In emergency situations, competition may be bypassed for the sake of immediate action. The Office of the State Comptroller defines an emergency purchase as a situation that requires immediate action to avoid death, injury, or serious damage. Please call the Purchasing Office for instructions if such an emergency situation occurs.
3. Confirming Purchases
  Confirming purchases occur when campus departments acquire goods or services without following Purchasing procedures. Payment for confirming purchases may be authorized by the Purchasing Office ONLY upon receipt of a satisfactory written justification. Monthly reports of confirming orders that exceed $500 (per account/department) are reviewed by the College Controller for possible action, should it be warranted. Individuals who authorize purchases outside of the official process (Purchasing Office) risk personal liability for the charges incurred.
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Contracts

The Purchasing Office is responsible for assisting and advising departments in preparing and processing service, consultant, and miscellaneous contracts. The office also assists and advises College faculty and staff with contract negotiations, document review, and other contractual and/or legal matters that require coordination and/or advice from the SUNY Counsel's office.

Formal contracts/agreements are required for all service and consultant arrangements in which (a) there is an exchange of monies between the College and the contractor (expenditure and revenue), (b) the terms and conditions of an agreement exceed those which can be represented on a Purchase Requisition; and (c) the College provides consideration other than money (the services of faculty and/or students, use of campus facility, etc.).

Contracts may also be required in certain situations, regardless of value, where (a) more than one payment is made to a contractor; (b) where the tasks performed by the contractor do not lend themselves to description on a regular purchase order; and (c) where the contractor imposes his/her contract on the College.
1. Contract Establishment
  Contracts are subject to the same competitive bidding and/or quoting requirements as purchases. Therefore, the dollar limits detailed in Section VIII-A are also applicable to expenditure contracts. Additionally, revenue contracts exceeding $10,000 must be approved by the Attorney General and State Comptroller.
  
  Depending on the complexity of the services or goods sought by the contract, it may be necessary to seek competition via a "Request for Proposals" (RFP). This document is created by the issuing department (with the assistance of the Purchasing Office, if necessary) and sets forth specifications, terms, and conditions that the College requires of any contractor interested in providing the requested goods and/or services. An RFP is typically issued for large dollar amount contracts, very technical purchases (such as computer or scientific equipment), or contracts that span a number of years.
  
  In any situation in which it is necessary to enter into a contract, please contact the Purchasing Office as soon as possible for procedural information.
  
  Departments planning to retain the services of a contractor may use standard consultant or service contracts developed by SUNY Counsel and approved by the State Attorney General and the State Comptroller. Copies and samples of these standard contracts may be obtained from the Purchasing Office.
2. Contract Authorization
  
  In accordance with SUNY Procurement Policy, Item 310, contracts and agreements entered into by the College may be signed ONLY by the College president, the vice president for finance and administration. Any other College employee who signs a contract or agreement may be held personally responsible for its performance (payment, liability, etc.).
  
  All contracts, license forms, and agreements must be submitted to the Purchasing Office. After review by the Purchasing Office, they are forwarded to the appropriate signatory and returned to the department or contractor, as required.
  
  Expenditure contracts with a value of under $35,000 and revenue contracts of less than $10,000 may be approved and signed by campus. Contracts that exceed these respective amounts must be approved by the campus, by the Offices of the State Attorney General and the State comptroller. Departments should anticipate the time required for obtaining these approvals (approximately three to six weeks) and keep in mind that the College can assume no responsibility for the terms of a contract without the comptroller's approval. Under no circumstances should work be authorized under a contract until the contract has been approved and signed by all appropriate parties.
  
  Some types of contracts also require SUNY Central review and/or approval. These are:
  1. Consulting services exceeding $50,000
  2. Multi-campus agreements
  3. Contracts with campus-related organizations, such as the Purchase College Association
  4. Contracts pertaining to capital facilities, such as construction contracts, building maintenance services, repair or rehabilitation of facilities, and real property leases.
3. Alternate Contracts/Contract Forms
  a) Consultant Contracts
  
  Payments to consultants of $2,500 or more require a consultant contract, samples of which are available from the Purchasing Office. Payments for less than $2,500 can generally be made by Purchase Order. Lecturers, guest speakers and performing artists providing services up to $2,500 may be paid through the honoraria process.
  
  b) Extra Service
  
  Occasionally departments contract for specific services with contractors who are also State employees. In these cases, the College cannot enter into a direct contract with that contractor/employee. Such cases are handled as "extra service" and must be processed through the College Office of Human Resources. In this circumstance, the State employee (even if he/she is not a College employee) receives payment in his/her regular paycheck for the extra service performed.
  
  c) Memorandum of Understanding
  
  Occasionally departments contract for specific services with State agencies. These services are usually defined and agreed to in a Memorandum of Understanding (MOU). The MOU sets forth many of the same elements as a contract (for example, services to be provided, payments to be rendered, performance timetables, etc.).
  
  d) Documentation
  
  Prior to submitting a contract to the Purchasing office for review and approval, contractors should sign the contract document. Depending on the dollar amount of the contract, three to five contracts with original signatures may be required. Please call the Purchasing Office for additional information.
  
  For most contracts, contractor signatures must be acknowledged by a Notary Public. In addition, all contracts must incorporate New York State standard contract clauses. Copies of blank acknowledgment forms and the standard clauses are available from the Purchasing Office.
  
  Along with the contractor's signed copies of the contract, the following documentation should be submitted to the Purchasing Office:
  - A requisition in the amount of the money to be encumbered for the current fiscal year.
  - Justification for the use of a consultant, which specifies why College staff cannot provide the consulting services, why this particular consultant is able to provide the services, and the qualifications of the consultant.
  - Any waivers which may be required by your department and/or division.
  In addition, if a contract is a sole source, a written statement to document the choice of vendor must be submitted. This explanation should detail why the vendor is uniquely qualified to provide the goods or service and provide proof that the cost is reasonable.
  
  If the value of the contract exceeds $20,000 the sole source statement is forwarded by the Purchasing Office to the State Comptroller for approval. The contract cannot be awarded until the sole source receives Comptroller approval.
4. Contract Amendments
  
  Contracts may be amended for any variety of reasons, but most typically to extend dates, increase or decrease costs, or change services. Changes to a contract or agreement must follow the same process as the original contract (i.e. signatures and OSC approval if the original was processed through that office). Please contact the Purchasing office for instructions regarding contract amendments.
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Insurance

As a State agency, the College is afforded protection against claims for legal damages through the New York State Court of Claims Act. This protection extends also to College employees, agents, and officers acting within the scope of their official duties. There are occasions, however, when it is necessary to purchase insurance, such as off-site field trips on private property, certain travel activities involving students, protection of valuable property on loan to the College.

Inquiries regarding the need for insurance for a specific occasion or activity should be directed to the Purchasing Office. The Purchasing Office can obtain appropriate insurance at a nominal cost through the Office of General Services.

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Small Claims

The Purchasing office is responsible for processing small claims filed against the College. Small claims are for recovery of damages of $5,000 or less.

The basis for an action under the College Small Claims procedure is negligence on the part of the College. It is important to note that in the context of small claims, negligence is defined ONLY as the act or omission of a State employee in carrying out his or her official duty. For example, a College employee, within the scope of his/her duties, takes an action that results in damages to another person; or fails to take action, which results in damages to another person.

The College is not liable for damages that occur accidentally, or as the result of natural causes; nor is the College liable for damages which occur because of the actions of students, independent contractors, or consultants.

Because the small claims procedure is based on a concession by the State of its liability, the facts constituting the liability should point very strongly to an act or omission on the part of the College.

All small claims proceedings must be initiated within ninety days after the incident relating to the small claim occurs. A claim is initiated by submitting to the Purchasing Office a Small Claim Request Form and additional supporting documentation clearly explaining the incident and how the College is being considered negligent.

The claimant should contact the Purchasing Office before initiating a small claim request.