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Background

Georgia Code 50-5-51 gives procurement authority to the Department of Administrative Services (DOAS).  Included is the authority to contract for the rental, lease, purchase or other acquisition of all supplies, materials, services (other than professional and personal employment services) and equipment required by the state government or any of its institutions, to contract for telephone services, have general supervision over all storerooms and to contract for state printing.

The Board of Regents policy manual states “The University System shall utilize the sources of the central purchasing agency for the State of Georgia rather than establish a separate control purchasing office.”  The Board further “directs that each of its operating units comply with the various statutes, rules and regulations governing purchases with state appropriated funds.  In addition, the same regulation shall apply to purchases from funds to which the University System has title.”

DOAS State Purchasing Office (SPO) has delegated general purchase authority not to exceed $100,000 (for E&G funds) to the Procurement and Contract Services Department at Georgia Southern.  Additionally, special delegated authority for specific commodities and non E&G funds are given in unlimited dollar values.

 The Purchasing Section is established to manage the procurement of supplies, materials, equipment and contractual services for the University.  It has the responsibility for preparing, negotiating, executing, awarding and administering all contracts other than some personal service and all Public Works contracts.  Further, it serves to coordinate the University’s procurement activity with appropriate State agencies.  In addition to state statutes, the University adheres to policies established by the Board of Regents of the University System of Georgia, the University and recommendations furnished by the state and internal auditors.

Specific service goals of the department are to define economies, assist in the planning of purchases, develop standard specifications and reduce administrative costs and inventories.

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Authority for Approval of Purchases

The University budget establishes funds to be used for certain purposes under the authority of the designated budget head that has the primary responsibility for approval of all purchases charged against their accounts.  The budget head may delegate this authority to other persons by memorandum to the Purchasing Section of Procurement and Contract Services.

The requisition form is the primary vehicle used to initiate a purchase for a department. Specifications must be provided by the department and must be specific enough in order to indicate to vendors what it is that the department is looking for.  Departments are discouraged from simply attaching a catalog page from a particular vendor.  Using another products specification as minimum specifications may be considered as “lock-out” specifications and therefore considered unlawful.  It is possible to reference another product as “meeting desired minimum technical and quality levels”.

Timeliness of Purchase and Lead Times

The Purchasing section is committed to completing departmental purchases in a timely manner. Many factors determine the time to complete a purchase including, but not limited to: state procurement regulations, buyer workload, commodity purchased, availability of funds, vendors, time of year and other contract considerations. The following lead times (from receipt of requisition to issuance of purchase order) are considered to be necessary to ensure that procurements can be completed correctly and within established regulations:

a. Bids (greater than $5,000 and not otherwise exempted)                  30 working days

b. Sole Source/Sole Brand                                                                  10 working days

c. Open Market purchases (less than $5,000)                                                 7 working days

d. Contract Releases (purchased against state or agency contracts)     10 working days

Authority to Commit University Funds

The authority to commit University funds for supplies, materials, equipment and certain contractual services has been delegated to the Procurement and Contract Services Department within limits established by the Department of Administrative Services, State Purchasing Office.  This policy of purchasing centralization provides for economies and efficiencies. 

University departments are currently delegated authority up to $3,000 per transaction. Purchases must comply with other regulations as indicated elsewhere within this document.  Departments may not “split” purchases to avoid this transaction limit.  Purchases by departments which do not conform to regulations and policy may be determined to be “unauthorized purchases”.  When such a purchase is detected, the appropriate Department Head shall be notified in writing and an explanation requested as to the circumstances surrounding the violation.  A final determination shall be made by the Director of Procurement and Contract Services.

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Relationships between Procurement and Contract Services and other departments

The Department of Procurement and Contract Services is a service unit, and in order to be of the most benefit to the University, is largely dependent upon the cooperation and assistance of all University units, offices and departments.  In order to define the relationship between the Department of Procurement and Contract Services and other University units, offices and departments as definitely as possible, the following governing practices are set forth:

·        Only Procurement and Contract Services should formally solicit quotations from vendors.  Departments are encouraged to contact vendors for informal quotations or budget pricing.  All vendor pricing obtained should be submitted to Procurement and Contract Services when submitting a requisition.

·        The Procurement and Contract Services Department should conduct all correspondence with the State Purchasing Office (SPO).

·        All formal correspondence with vendors should be either handled through or pre-approved by the Procurement and Contract Services Department.  Formal communications is defined as those which obligate either the vendor or the University to specific contractual actions.  This is particularly true once a solicitation to bid is in process.  Again, departments are encouraged to seek technical advice and product availability information directly from vendors.

·        The degree of success that Procurement and Contract Services Department has is dependent upon receiving timely information from departments concerning upcoming events and requirements.  This allows us to be proactive vice reactive.  We encourage departments to:

¨      E-mail or telephone us advising of upcoming projects or needs

¨      Seek our participation in meeting with vendors

·        The University seeks to deal fairly, consistently and openly with all vendors in the spirit of cooperation.  There are situations, however, where the bargaining position of the University could be compromised when vendors receive information regarding orders, prices or future plans.  Departments should refrain from revealing information not absolutely necessary.

·        Contact the Purchasing Section when solicited by a vendor offering a suspicious “good deal”.  This office is in contact with other Purchasing offices throughout the country and often has knowledge of scams in progress.

·        Departments contemplating accepting equipment on a “trial” basis should contact Procurement and Contract Services first.  Vendors, and sometimes departments, may need to be made aware of certain risks or obligations especially with regards to risk management and liability issues.

·        Relationships with vendors should be kept on a business like basis.  Refrain from accepting any gifts and especially those of greater than nominal value.

·        Keep the Purchasing Section notified of pertinent information relayed by vendors such as potential or actual price increases, new products etc.  This is especially true if the vendor indicates a price change during the term of a contract.

·        Departments are cautioned against signing any agreement or contract.  Agreements or contracts signed by personnel without the requisite contracting authority are illegal contracts and the person signing may assume personal liability.

·        In order to administer a contract, it requires a joint effort between Purchasing and the user department(s).  Close coordination and communication is the key.

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Evaluation Criteria

Under competitive bidding, the award should be made to the vendor offering the lowest price for materials or services meeting the required specifications.  Quality and service standards in specifications must, therefore, be adequately defined.

Purchasing Methods/Limits

Three primary methods are used to obtain goods and services:

a.       purchase orders

b.      *petty cash (administered by Accounts Payable)

c.       *Purchasing card

* denotes purchasing methods delegated to departments at established levels.

The general dollar value limits listed below are either delegated by DOAS or established by University policy:

$1,000 or less              Limit for use of Petty Cash (minimum reimbursement of $50 – see page 13)

$3,000                         Level for taggable equipment (plus all computers and weapons)

$3,000 or less              Limit for departmental purchases and VISA limits

$5,000 and greater      Capitalized assets (depreciable assets)

$5,000 and greater      Limit requiring competitive solicitation

$100,000                     Sealed Bid limit

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Mandatory Sources of Supply

The State of Georgia and DOAS have established a number of mandatory sources of supply.  These include:  DOAS Statewide Contracts, Georgia Correctional Industries, and other Sheltered Workshops.  The Procurement and Contract Services web page offers links to the Georgia Statewide Contracts and Georgia Correctional Industries.  These commodities are subject to change.  For further information, call the Purchasing Section.

The University also maintains Agency contracts which are unique to Georgia Southern University.  Examples include janitorial supplies, security services, bus charter and food supplies. 

The precedence for using these mandatory sources are:  Statewide Contracts, Agency Contracts and then Georgia Correctional Industries.  Off contract purchases should only be made where the desired good or service is not carried under a contract indicated above.  These mandatory sources of supply apply to departmental purchases (Procurement Card) as well as those submitted through Procurement and Contract Services.

Purchasing Contracts

The Procurement and Contract Services Department is responsible for administering the many statewide contracts issued by DOAS and used by the University.  Many of these contracts are mandatory sources of supply (Statewide Contracts, Georgia Correctional Industries) and must be used before soliciting other vendors.  Additionally, depending upon need, the Procurement and Contract Services Department will enter into contracts with vendors for repetitive items and/or services in support of the campus department’s mission (Agency Contracts).  The use of supply contracts and blanket orders usually improve the University’s position with regards to price and delivery and are encouraged whenever feasible.  Departments having repetitive needs for certain commodities are encouraged to contact Purchasing regarding the possibility of establishing an annual contract.

Taxes

Georgia Southern University, as a unit of the State of Georgia, is exempt from payment of Georgia Sales and Use Tax and most Federal Excise taxes.  Student and Athletic funds are also exempt.  Generally, the only State taxes paid by the University are the Georgia Motor Fuel Tax and the scrap tire tax.  Generally, the University is not liable to pay state sales taxes of other states if the transaction is consummated in the State of Georgia.  A tax exempt form may be obtained from the Purchasing Office and is also available on our website.

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Purchases for the personal use of employees

It is unlawful (Georgia Code 50-5-80) for the University to make purchases for the personal use of its employees. The Board of Regents manual further states that

“employees of the University System shall not purchase goods or services through channels used in the purchase of goods and services for the operation of the University System."

Some items, the nature of which indicates that their end-use is more personal than official are prohibited from purchase without prior approval of the Procurement and Contract Services Department.  These items include but are not necessarily limited to: holiday decorations, cut flowers, coffee makers, entertainment and/or refreshments, portable table radios, watches, ground-breaking shovels and other items to be granted as a donation or gratuity in favor of a person, corporation or association, employment agency placement fees, greeting cards, trophies and other awards and shoes.

If a department routinely buys items listed above (for example:  Catering buying flowers for official functions), then it should submit an exemption request via memo to the Purchasing Office.  We will respond in writing keeping a copy of your request on file for audit purposes.

Purchases using Contracts, Grants or Gifts

Purchases using funds derived from contracts, grants or gifts are subject to State of Georgia regulations, Board of Regents and University policies and will be expended in the same manner as University funds.  All requisitions citing these funds must be approved by the Office of Research Services and Sponsored Programs (ORSSP) and Financial Accounting Office prior to receipt by the Purchasing Section.

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Emergency Purchases

Emergency situations include the following:

• Academic, research or technical personnel can not perform any significant activity in their field due to the lack of needed materials or services.
• A system or piece of equipment ceases to functions or malfunctions to the extent that it ceases normal activity and leaves personnel idle.
• Circumstances resulting in an extremely detrimental effect on the operation of the University.
• Any situation in which inaction may seriously endanger the safety of any person and where direct action will alleviate the situation.

Should an emergency arise during normal working hours, contact the Purchasing Section by phone as soon as possible.  A member of the staff will review the situation with you and make a decision on the appropriate course of action.  The Purchasing Section is required to report to DOAS all emergency purchases so it is imperative that this office be notified immediately. 

Should an emergency take place after hours, weekends and/or holidays, the department should make the purchase or acquire the services.  If necessary, the department can furnish the vendor with their VISA card number or advise the vendor that Purchasing will contact them the next work day with either a purchase order number or a VISA card number.  Departments must contact the Purchasing Section on the next working day.  Proper follow up action will be discussed and taken at that time.

Sole Source/Sole Brand Procurements

Two of the more closely audited items during a purchasing audit are the use of sole source and sole brand procurements.  Both of these are heavily regulated by the state and require certain minimum justifications as indicated below.

Sole source simply means justifying that only one company can provide the good or service that is being requested.  Justifications must address the following:

• Information to establish the context of the sole source (i.e. the item’s function, how it is to be used, operational environment and/or previous experience or history)
• Identify efforts to locate other possible sources.  This includes department searches as well as purchasing attempting to find other sources.
• Provide proposed suppliers unique/exclusive capabilities making them the only company/person who can complete the task.  Some examples include:

o           Exclusive source can furnish services because of its previous experience with the University and hiring another source would result in excessive cost to the University.  The excessive cost must be quantified.  Simply stating that a vendor “did a good job before” is not justification for sole source.

o           Exclusive source has unique technical competence or expertise. Explain.

o           Exclusive source possesses patents or other exclusive rights to the item being furnished.  Provide documentation.

Sole source may not be used as an attempt to contract with a favored service provide or a favored product (see Sole Brand).  This is perhaps the largest abuse of sole source in purchasing and carefully scrutinized by the audit staff.

While sole source refers to only one vendor being able to furnish the goods or services, sole brand does not necessarily limit competition.  A common justification for sole brand involves “standardization” meaning the item must match existing items.  For example:  uniforms or scientific lab equipment where training, spare parts and maintenance are issues involving which brand to buy and reduced costs to the University.

Departments desiring to purchase an item or services under sole source and/or sole brand justifications must complete the sole source form found in the forms gallery on our web page.  A member of the purchasing staff will review it to ensure all the above minimum requirements are met.  If not, it will be returned to the department.  If additional sources or brands meeting specifications are found, purchasing will issue the solicitation as a competitive bid.

Effective 2005 all Sole Source and Sole Brand procurements must be posted on the Georgia Bid Registry for a minimum of three business days before an award may be made.  If a legitimate challenge is made to the Sole Source or Sole Brand then a competitive bid must be prepared and the competitive process followed.

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Unique/Prohibited/Restricted/Controlled Procurements

The following commodities require special procedures and/or approvals.  Departments having need of the following should contact the Purchasing Section for further details.

1. Ethyl Alcohol
2. Purchases of Government Surplus Materials
3. Electrical equipment – compatibility
4. Printing Services
5. Vehicle Purchases/Donations
6. Purchases involving trade-ins.
7. Purchases requiring a written agreement/contract
8. Professional Services
9. Computer and other technology associated purchases
10. Communications equipment/services.
11. Food purchases using E&G funds.
12. Equipment repair
13. Real Estate rentals.
14. Hazardous materials, chemicals and biological agents
15. Consulting Agreements
16. Used Equipment/Antiques

1. Ethyl Alcohol:  The University official appointed to sign or issue all applications and other required documents pertaining to the purchase, storage and use of ethyl alcohol is Dr. Oscar Pung in the Biology Department.  A permit has been granted to the University under the following conditions of use:  “For purely scientific research, instructional and medical use as a solvent, reagent, cleaner, chemical extractant, fuel and pharmaceutical in the classes, laboratories, hospitals, infirmaries and departments.”

2. Purchases of government surplus materials:  All purchases of State and Federal government surplus should be done through Procurement and Contract Services.  The department acquiring such equipment is responsible for complying with utilization and disposal restrictions which may apply.  A one day pass obtainable through Property Control is necessary to screen and obtain equipment from the state distribution centers. 

3. Electrical Equipment:  When writing specifications for electrical equipment, care should be taken to consult with Physical Plant if the equipment exceeds 115V, single phase, 60 Hz.  This is to ensure that there is adequate power available within the building. Indicating on the requisition that Physical Plant has been contacted will greatly speed up the procurement process.

4. Printing Services:  All requests for printing should be processed through the Purchasing Section, except as provided below.  For this purpose, a requisition should be completed and forwarded through the usual route.  Exceptions:  Print jobs not exceeding the $3,000 departmental spending authority may be ordered directly from a commercial printer by use of the Procurement Card or from Georgia Southern Printing Services by use of the Procurement Card or departmental transfer of funds.  Jobs that fall between $3,000 and $5,000 (bid limit) do not require competitive bidding.  A vendor’s quotation and printing specifications should be submitted along with the requisition for these requests.  Printing Services may be listed as a recommended vendor and they will be sent an Invitation to Bid or Quote Request along with other printers. 

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Printing Services: