PROCUREMENT POLICIES AND PROCEDURES

SUMMARY OF PURCHASING GUIDELINES FOR PVAMRF PROJECTS

NOTES AND INSTRUCTIONS

a. $200 cost of total order.

b. $1500 cost of total order.

c. $2500 cost of single item or $2500 total cost of several of the same item.

UP TO $1500:

d. If a vendor will not accept a credit purchase, payment may be made out-of-pocket via cash and reimbursement claimed on a Reimbursement Voucher. A prepayment may be requested on an order requisition.

e. Orders may be placed by telephone. An order requisition is not required.

Advise vendor to submit bill to:

OVER $1500:

f. To initiate a purchase order, fill out an order requisition and forward it to the Prairie View A&M Research Foundation (PVAMRF). PVAMRF will encumber funds and place the order with the vendor.

g. If time is a factor, call your Research Administrator and request a verbal purchase order number. The order may then be placed by telephone and an order requisition prepared for CONFIRMATION ONLY. Give shipping instructions (be sure to include the department and someone's name), billing instructions and the PO number to the vendor. Fill out an order requisition with all the details, including the PO number, the person the order was placed with, the date placed and current pricing information. Mark the order requisition "CONFIRMATION ONLY - DO NOT DUPLICATE". Be sure someone with signature authority on the project signs approval at the bottom of the order requisition. Forward to the Research Foundation.

OVER $2500:

h. Competitive bids are required for higher value orders. Written bids from three sources are required. Fill out the order requisition and forward it to the Research Foundation to request a purchase order. Bids will be obtained by PVAMRF Purchasing, or if desired, by project staff. If bids are obtained by the staff, attach the bids to the order requisition. Bids may be obtained by telephone, but must be followed in writing.

PRAIRIE VIEW A&M RESEARCH FOUNDATION

PROCUREMENT POLICIES AND PROCEDURES

September 1995

Purpose/Objectives

The purpose of this manual is to inform those associated with the Foundation of its policies and procedures for procurement services. The policies and procedures outlined in this manual are designed to meet the following objectives:

1. To provide a well-defined, efficient purchasing system that will meet the needs of projects;

2. To provide a flexible and practical system that recognizes and accommodates "immediate need" situations;

3. To provide a system that:
promotes maximum competition and thereby secures for the user the most favorable prices and terms;
provides for prior review of proposed purchases to ensure allowability by sponsor;
provides the necessary documentation to meet audit standards;
places a fair proportion of total purchases with small business concerns and small disadvantaged business concerns.

Purchasing Policies

All purchases in excess of $1500 involving the purchase of equipment, supplies, services, fabricating work, rentals, leases, conference registrations, maintenance agreements, and publication of articles must be submitted to the Foundation on an order requisition prior to commitment. All such purchases must be reviewed and the commitments made by the Foundation Purchasing Office. Exceptions to this policy are:

• Freight charges
• Inter-campus purchases from The Texas A&M University System with the exception of the TAMU Micro Center and the Bookstore.
• Joint purchases over $1500 between Prairie View A&M University and the Foundation if a copy of the Prairie View A&M University purchase requisition is included with a copy of the invoice.

For all purchases of single items costing $2,500 or more, purchases of any number of the same item whose aggregate cost exceeds $2,500 competitive bids must be obtained from at least three vendors unless sole source justification has been provided. The bids may be obtained by the project staff or by the Foundation Purchasing Office using specifications required by the project and directed to vendors. The project staff should indicate any vendors that may be able to supply their needs and additional vendors may be chosen by the Foundation Purchasing Office. Verbal quotes can be obtained for purchases of items costing between $1,500 and $5,000 (unless the order has extensive, detailed specifications or several line items, in which case written quotes will be obtained to avoid possible errors). Written quotes will be obtained for purchases of items costing over $5,000 (unless the order is an emergency situation, in which case verbal bids will be obtained). Negotiations will be conducted if it is in the best interest of the Foundation.

1. Written justification will be required in all cases where the lowest bidder is not selected to receive the order. The justification will be reviewed by the Foundation before the final selection.
2. Purchases which are cost-shared between the Foundation and The Texas A&M University System must follow the State purchasing requirements. A copy of the Prairie View A&M University purchase voucher/requisition must be furnished to the Foundation.

Exceptions to the Competitive Bid Requirement

A. Only one source of supply is known;

B. The services to be performed are of a technical or professional nature by an individual instead of a company (Example: individual consultants);

C. Procurement is from government agencies or The Texas A&M University System Parts;

D. Providing the bidders with adequate specifications, plans, or other sufficiently detailed descriptions of the required material or services is impossible. (Example: architect, engineer or research and development services).

E. An item is available through a State purchasing contract or the Federal supply schedules;

F. A particular brand, although it may not be the only available brand, is required by the project and only available directly from the manufacturer.

A written quote from the vendor will be required for all exceptions except number B and E above. Written justification will be required for all exceptions except 5 above.

Emergency purchasing procedures are intended for use only in genuine immediate-need situations. Since emergency orders are a costly proposition, frequent use of these procedures by a project cannot be allowed.

A change order must be written in order to add, change, or omit work or material within the general scope of a contract or purchase order. The approval required for the change order is usually the same as required for the original purchase order. A change order must be requested on a new order requisition with clear reference to the original purchase order number. For minor changes, however, verbal approval is acceptable.

Purchasing Procedures

1. The Principal Investigator (or designee) shall complete and sign an order requisition and forward it to the Foundation (See Attachment A).
2. An order requisition requesting the purchase of radioactive materials must include a verbal approval by the Radiological Safety Office. This approval should be obtained by the Principal Investigator's staff.
3. When a vendor requires payment of an order prior to shipment of merchandise, it should be noted on the order requisition that the purchase order must be prepaid.
4. When an order requisition indicates that a piece of equipment or part of a piece of equipment (i.e.., spectrophotometer or upgrade to computer equipment) is being traded in, the Foundation will discuss ownership of equipment with the PI. When trading in TAMU System owned equipment, a system form FDP 414A must be attached to the order requisition.
5. After review by the Research Administrator and the Foundation Purchasing Office, the order requisition, if approved, will be typed on a purchase order form with a designated number and sent to the vendor (See Attachment B). If time is critical, the Foundation Purchasing Office can place the order by phone and issue a confirming order.
6. Purchase orders will normally be issued within three working days after receipt of the order requisition at the Foundation. Prepaid purchase orders will normally be issued within seven working days.
7. Controlled substances may require that the purchaser provide a license number, please include your license number on your order requisition.

Optional Procedures for Small Purchases (Less than $1500)

Any purchase, no matter how small, may be initiated and completed via the regular purchasing procedures outlined above. However, in the interest of practicability and convenience, the following procedures may be used for purchases of $1500, or less, if the purchase is allowable by sponsor regulations, allocable to the project being charged, and there are sufficient funds in the project being charged.

1. The Principal Investigator (or designee) may purchase the item using a Prairie View A&M Research Foundation purchase authorization card (See Attachment E to obtain an authorization card.). The vendor should be advised to submit the invoice to the Prairie View A&M Research Foundation, Project __, Box 667, Prairie View, Texas 77446.
2. The Principal Investigator (or designee) may purchase the item by telephone. The vendor should be advised to submit the invoice to the above address and reference the PI's project number for their purchase order number.
3. The Principal Investigator (or designee) may purchase the item using personal funds, personal credit card or petty cash account (if under $500.00). Reimbursement may then be obtained by submitting an expense account form or petty cash reimbursement form accompanied by an original, itemized receipt.

Emergency Purchasing Procedures

Situations may occur in performance of research where an immediate need arises and circumstances preclude using the regular purchasing process. The following procedures may be used to expedite processing:

Telephone Bids

1. Project personnel or the Foundation Purchasing Office may obtain emergency telephone bids.

2. Attachment C outlines guidelines for obtaining verbal bids.

Telephone Orders

1. The Principal Investigator (or designee) should contact the Foundation Research Administrator to obtain verbal approval and a purchase order number prior to purchase, and explain the justification for using the emergency procedures.

2. After approval by the Research Administrator, project personnel may initiate the purchase by phone using the purchase order number assigned to the purchase.

3. The Principal Investigator (or designee) should forward the confirming order requisition containing all order information and the assigned purchase order number to the Foundation within three days. Failure to forward a confirming order requisition within three days may result in cancellation of the order by the Foundation.

4. A written confirming purchase order will be sent to the vendor by the Foundation after receipt of the order requisition, unless the vendor has requested that a confirming purchase order not be sent.

Hand-Carried Orders

1. The Principal Investigator (or designee) should complete an order requisition and deliver it to the Research Administrator. After approving the purchase, the Research Administrator will send the order requisition to the Purchasing Office.

2. The Purchasing Office will review the order and, if approved, will encumber the funds and type the purchase order for project personnel to hand-carry to the vendor.

Invoice Procedures

Invoice Review

Upon receipt of an invoice which references an official RF purchase order, the Purchasing Office will review the invoice to confirm that it reflects the proper quantities and prices. Any discrepancies will be investigated.

Invoice Approval

All invoices are forwarded by Accounts Payable to the Principal Investigator for approval prior to payment. This approval indicates that all goods and services were received and accepted.

Receiving Freight Procedures

If you are required to receive freight shipments or if you supervise those who do, be sure you follow these basic steps to insure all damage is found upon receipt of merchandise.

1. Follow these steps at the time delivery is made:

¤ Do not sign the freight bill (bill of lading) until the incoming boxes and cartons have been inspected. A driver cannot leave until damaged boxes are checked and noted in writing on all copies of the freight bill, and the freight bill is signed.

¤ Always verify the carton quantities which are listed on the freight bill. You should have received exactly the same number of cartons as shown on the freight bill.

¤ Each carton should be in good condition when it arrives. If a carton is damaged, describe the damage completely on the copy of the freight bill with each carton. The driver should indicate the same on his/her copy, and both copies should be signed. If a carton appears to be damaged, insist that it be opened before the driver leaves, and make a joint inspection of the contents. Any concealed damage or shortages should be noted on the freight bill.
Note: Always retain your copy of the freight bill, and notify the Foundation Purchasing Office if assistance is needed.

2. Steps to take when visible or concealed damage is discovered:

¤ All damaged cartons should be retained, and should never be removed from your assigned receiving area.

¤ Call the carrier or the Foundation Purchasing Office. All damage must be reported to the local office of the freight carrier making the delivery. Request that an inspector be sent to look at the damaged freight. This should be done immediately after the driver leaves, or when the damage is discovered. The claim will be denied if the inspector is not requested within 15 days after delivery.

¤ Record the date and name of the person who was contacted at the carrier's office on the freight bill.

3. Steps to take when the damage is being inspected by carrier representative:

¤ Obtain the Principal Investigator's copy of the purchase order. Determine if the shipment was sent f.o.b. destination or f.o.b. shipping point.

¤ The inspector will complete a damage report which must be signed. If you do not agree with the inspector's conclusions, do not sign the report. Request replacement of the items from the inspector whenever possible. If you have problems contact the Foundation Purchasing Office.

¤ If the shipment is on a Foundation purchase order, forward copies of the inspection report and the freight bill to the Foundation Purchasing Office. The Foundation will negotiate with the company to replace the damaged merchandise.

4. After the inspection report is sent to the Foundation:

¤ The freight company will pick up the damaged merchandise, and a salvage receipt will be issued.

¤ The Foundation Purchasing Office will notify you as soon as the details of securing the new merchandise are complete.

Procedures for Returning Merchandise

1. If merchandise that has been ordered on a Foundation purchase order must be returned, the Foundation will make arrangements with the vendor if requested. If it is requested that the Foundation make arrangements for the return, call 857-2246. The Foundation Purchasing Office will need additional information for the merchandise to be returned.

2. If the project staff is returning the merchandise, the following will apply:

¤ Call the vendor to obtain the return authorization number, restocking charge (if applicable), and the address where the shipment should be returned. If the invoice is to be credited, request vendor to mail credit to:

Prairie View A&M Research Foundation
Box 667
Prairie View, TX 77446

¤ If return is due to the vendor's error, request that they call the United Parcel Service (UPS) for the call tag number, and the freight charges will be paid by the vendor. (UPS is usually the most inexpensive carrier.)

¤ Never return merchandise to a vendor without prior vendor authorization and shipping instructions.

¤ If your project is responsible for shipping the merchandise back to the vendor, be certain to insure the package. Record the carrier used, date shipped, and any other pertinent information. Never return merchandise to a vendor via regular mail. There is no way to trace the package if the vendor has no record of receiving it. After item has been returned, inform RF that a credit is forthcoming.

  Attachment A: Order Requisition Form pdf excel

ORDERING GUIDELINES

An order requisition must be completed and forwarded to the Research Foundation if the order is $1,500.00 or more. Orders under $1,500.00 can be ordered on your account number, and an order requisition is not necessary unless the vendor needs a hard-copy confirming Purchase Order. Upon receipt of your order requisition, the Research Foundation will issue an official Purchase Order to the vendor (approximately 3-day processing time for non-bid items and items for which sponsor approval is not required).

Bids are required for the following situations:

- Single items that cost $2,500.00 or over.

- $2,500.00 total cost of several of identical items.

- Sole source bid is acceptable only in exceptional cases when full justification is included with the order requisition.

(1) Date Order Requisition.

(2) Provide account number to which order should be charged.

(3) Fill in the complete vendor address. Include the telephone number, if known.

(4) Check appropriate box for vendor prepayment.

(5) Provide the name of the person and the address to which the item should be shipped.

(6) Write the number (1, 2, 3, etc.) as applicable for each item.

(7) State the quantity ordered for each item, providing as much detail as possible (ex: 10 boxes, 3 per box; 6 cases, 12 per case, etc.).

(8) Give the complete item description, include vendor catalog numbers.

(9) List the unit price if obtained from current pricing information. If unsure of the price, write a note asking Purchasing to check the pricing. Purchasing will contact the vendor and advise you of the current price and availability details. Please include the vendor's phone number if possible.

(10) Compute the extended price (quantity x unit price).

(11) Add all the extended prices to get the total amount of the order.

(12) Document the price quote by giving the quote number, salesperson's name, date quoted, or other pricing source, as applicable.

(13) Complete the F.O.B. point information. If you need additional information on the F.O.B. point, please indicate this and Purchasing will contact the vendor.

(14) State the delivery time quoted by the vendor or the date you would like to receive the merchandise, whichever is applicable.

(15) Complete only if you call in your order to the vendor. Call your Research Administrator to obtain a P.O. number. Mark the order requisition CONFIRMATION ONLY and forward to the Research Foundation.

(16) State the name of the person placing the order, if different from #17.

(17) The P.I. or delegate must sign the order requisition.

(18) Indicate Research Foundation inventory number if the items being purchased are upgrading or enhancing existing equipment.

(19) Will be completed by the Research Foundation.

Attachment B: Purchase Order Form pdf

Attachment C:

EMERGENCY TELEPHONE BID PROCEDURES

If there is an "emergency need" for the purchase of equipment or materials that require bids, use this as a guide for obtaining telephone bids:

¤ Bids must be requested from at least three vendors.

¤ Each vendor should be supplied with the same specifications, and the best price should be requested. Negotiations are not allowable at this stage.

¤ Note the response from each vendor on the Record of Telephone Bid Request form (see attached), including:

¤ Select the vendor based on the low bid. If a vendor other than the low-bid is selected, a written justification is required.

¤ If an extreme rush exists, contact the Foundation Research Administrator to obtain a purchase order number and place the order. When placing the order, it is very important to provide the vendor with the following invoicing information:

Prairie View A&M Research Foundation
Box 667
Prairie View, TX 77446

¤ If time allows, send the order requisition and all bid information to the Research Administrator for review and placement of the order.

¤ Upon completion of the telephone bid procedure, send the following information to the Foundation:

• A list of specifications supplied to the vendor;
• Telephone bid notes or the written quotations requested;
• Signed written justification for the order being placed with the vendor;
• A signed order requisition for the purchase.

Attachment D: Record of Telephone Bid Request pdf word

Back Table of Content