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Purchasing
IntroductionThe Purchasing Office's goal is to acquire the products and services your department needs at a reasonable cost, consistent with your quality and time requirements, and in compliance with state and federal laws and regulations. Specifically, we:
Basic Procurement PoliciesOur purchasing authority is contingent upon strict adherence to various state, CSU, and campus procurement regulations. The procurement policies we follow ensure our compliance to these regulations and that the University is receiving the best procurement value for its money. There are only seven basic policies from which all the procurement regulations flow. It is important that you understand and comply with these policies when obtaining products and services for your department. These policies apply to all funds administered through the University Accounting Office, regardless of source. The seven basic policies are: 1. Authority to Contract:You must have specific authority to obligate the University to pay for goods and services. Campus departments have been delegated the authority to purchase only those products and services that qualify for the petty cash, procurement card, or direct payment process. All other purchases must be made by Purchasing. Please do not sign any contracts or agreements with a vendor. Instead, send it to Purchasing for review. Buyers are familiar with state laws governing the CSU system's authority. Also, buyers may be able to negotiate a better contract for you. Web requisitions submitted to Purchasing after the order has been placed with the vendor or after the University has received the products or services are called Confirming Orders. Confirming orders are not allowed. There are several potential problems associated with confirming orders; such as the receipt of duplicate shipments, violations of legal requirements, the issuance of redundant payments, missed discounts, delays in settlements, lost items, and unidentified invoices. Any faculty or staff member who buys products or services without going through the Purchasing Office assumes the possibility of personal liability for payment. 2. Open Process:As a public institution, the University's purchases are open to public inspection and oversight. Formal sealed bids are opened publicly and the amount of each bid is announced and recorded. Formal sealed proposals are also announced publicly, with only the names of the proposers announced and recorded. Completed solicitations are public records and available for inspection by the public. 3 . Selection of Vendors:The University purchases from the lowest cost vendor who can meet our requirements. Vendors are selected by the informal bid, formal bid, or formal proposal process. There are two exceptions: Sole Brand and Sole Source purchases. Sole brand items have unique performance features not found in other items, but are available on the open market from multiple sources. Sole source items have unique performance features not found in other items and are available only from a single manufacturer or from a dealer with exclusive distribution rights. If you think your web requisition order may qualify, please complete either the Sole Brand/Sole Source Justification form. 4. Vendor Outreach Programs:The University seeks to do business with small businesses and disabled veteran businesses. We do this by setting annual purchasing goals; instituting changes to purchasing procedures that will enhance the program; and documenting, tracking, and reporting our success to the CSU Chancellor's Office. 5. Competition:The state requires that the University purchase on a public competitive bid basis and award orders to the lowest responsible bidder meeting specifications. Best value is assured when the University obtains products and/or services of the highest quality required at the lowest possible price.
6. Standards:Certain commodities are standardized to take advantage of quantity discounts, avoid numerous small orders, and comply with state legislation. All office supplies should be ordered from Office Max to take advantage of reduced prices negotiated by Purchasing. State legislation has mandated that 50% of all purchases by state agencies must meet recycled product guidelines, so recycled products should be ordered whenever possible. All copy paper ordered from Office Max must be a recycled product unless no recycled product is available for that item. Another example of standardization is the Campus Copier Program. 7. Conflict of Interest:University employees may not personally benefit from their official positions or decisions. Any University employee who has, or whose relative has, a substantial interest in providing a product or service to the University, shall make known that interest and shall refrain from participating in the procurement decision making process. University employees shall not accept or solicit, directly or indirectly, anything of economic value as a gift, gratuity, favor, entertainment, or loan which is or may appear to be designed to influence official conduct in any manner, particularly from a person who is seeking to obtain contractual or other business or financial arrangements with the University (e.g. a vendor, who has interests that might be substantially affected by the performance or nonperformance of the employee's duty). University employees may accept from vendors: unsolicited advertising or promotional material such as pens, pencils, scratch pads, and calendars; occasional food and refreshments of insignificant value; and other items of nominal or minor value (e.g. a box of candy or donuts) that are merely tokens of appreciation and not related to any particular transaction. Blanket OrdersBlanket Orders are primary source agreements designed to accommodate campus needs on an on-going basis for a specified period of time. They usually specify a category of products and/or services that can be purchased, a maximum dollar amount, and a time period based on the fiscal year (July 1st through June 30th). If you expect to need products and/or services from the same vendor more than once or twice during the fiscal year and your order qualifies for the web requisition pathway, please submit a web requisition for a blanket purchase order. Using only one purchase order for the entire year is the most efficient way to pay for multiple purchases. Change OrdersChange orders are official changes made to a purchase order. Most change orders are done to increase or decrease the dollar amount on a blanket order; change the unit price, quantity, or description on an order; add a new item; or cancel a line item, purchase order or requisition entirely. If you need to change anything on a purchase order (excluding chartfields), please submit a Change Order Request form to Purchasing. Code of Ethics
Emergency OrdersEmergency orders are authorized only in the event of life, health, or property threatening situations. They must be processed through the Purchasing Office during regular working hours. Any emergency commitments made by a department outside of normal campus office hours and the corresponding services rendered or commodities provided by a vendor or contractor must be made known to the Purchasing Office at the earliest opportunity. Such commitments must be for valid emergencies only and must fit the definition described above. Personal liability damages can be sought by the campus or by the state for misrepresentation of an emergency situation. InsuranceInsurance is required of any contractor that is providing service to the campus. For example, McKesson Water, Office Max, caterers, and copier repairmen are required to submit proof of insurance before coming on campus. The buyer will work with the vendor to explain the University's insurance requirements. Policy Manual for Contracts and ProcurementThe San José State University Policy Manual for Contracts and Procurement is intended to serve as a general guideline for campus employees (including Procurement & Support Services Office administrators, buyers, and other department personnel) in the conduct of campus business transactions. The CSU and the SJSU campus are committed to maintaining high standards of performance based upon fair, ethical and professional business practices. Such standards have been incorporated into this Manual. Public WorksA public works project is defined as the erection, construction, alteration, or improvement of any public structure, building, road, or other public improvements of any kind. Do not submit requisitions for public works projects; instead, please contact Facilities Development & Operations (FD&O) at 924-1950. Request for ProposalWhen an order must be formally bid, but exact specifications are not available (specifically when ordering services), a Request For Proposal (RFP) is created by a buyer and sent to vendors instead of a formal bid. The RFP is more flexible than a formal bid because the entire proposal package is reviewed and evaluated for best value rather than just best price. Rush OrdersEven with the best planning, unexpected needs arise. Rush orders are those products or services needed immediately, but are not life, health, or property threatening situations. When this happens, contact Purchasing right away. We will work with you to get what you need fast. TrainingTraining is always available on anything that you may need to know about this department. Please call 924-1538 for training opportunities.
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Alex Lebedeff, Manager San José State University Located in Clark Hall 500 |
