Purchasing Handbook

Procurement Services Home Staff Rules, Policies & Procedures Policies & Procedures Procurement Communications Terms and Conditions Purchasing Handbook MUBOG Purchasing Policy FA-9 Code of Ethics Computer & Software Purchases Training Quick Guide Basic Training Guides Direct Award Training Contracts University Contracts WV Statewide Contracts WVNET Contracts Forms Vendor Resources Bid and Proposal Opportunities Vendor Registration & Euna Procurement Login Suppliers Guide Terms and Conditions Marshall Marketplace Punchout Catalogs Purchasing Handbook Whether you are a new employee joining the University for the first time or you are just interested in refreshing your knowledge of procurement procedures, this handbook is designed to guide you through Marshall University’s purchasing process. If you would prefer a downloadable PDF version of the Purchasing Handbook, please click here . OVERVIEW The Office of Purchasing The Marshall University Office of Purchasing maintains a central purchasing office that assists faculty and staff with the acquisition of goods and services. The purchasing office is responsible for academic, support, medical education departments of the University and the Marshall University Research Corporation. To give you the best possible service, one person will be assigned to your department. Other Information For further information about the purchasing process at Marshall, consult the Purchasing website and the Banner website. PURPOSE Purchasing exists to serve you, our customer. Our primary goal is to buy what you need as quickly and efficiently as we can at the best price from a responsible vendor. Very simply, we are here to help you get what you want for your department. Additionally, the office is the liaison between the University and Vendor communities. AUTHORITY TO PURCHASE AND OBLIGATE FUNDS West Virginia State Code vests the Board of Governors with the authority to purchase and acquire materials, supplies, equipment, services, construction and printing for the State’s colleges and universities. Authority is also given to the Board to set purchasing policy and prepare rules and regulations. Marshall University’s Office of Purchasing adheres to the Marshall University Board of Governors (MUBOG) FA9 Purchasing Policy. In accordance with the procedures, the President of the University appoints the Chief Procurement Officer (CPO) and Director of Purchasing. The CPO is responsible for the procurement of all goods and services for Marshall University. All of the guidelines and directives governing University purchasing policy are described in detail in State law, the Marshall University Board of Governor’s FA9 Purchasing Policy, the University’s Green book, MURC purchasing guidelines and this handbook. The University’s procurement officers and CPO delegated designees are the only individuals authorized to effect and sign non-credit card and non-essential service purchases, and agreements or contracts for Marshall University. Faculty and staff outside of Purchasing may not obligate University funds, regardless of source. The Attorney General, the Audit Division, and the Department of Finance and Administration only accept purchasing documents signed by procurement officers. Only University procurement officers or designees may issue confirming orders to vendors. Although the University is essentially its own manager in purchasing, numerous special instructions are often directed by outside agencies such as the Governor’s Office, the Attorney General’s Office, the Board of Governors, WVNET, or the Auditor’s Office. Both Purchasing and University departments are required to follow these guidelines. DELEGATED AUTHORITY For better management of both the budget and purchasing processes, it is highly desirable that one person in the department be responsible for submitting purchase requisitions. It is the responsibility of the department to accurately include all necessary accounting and purchasing data on the electronic requisition form. Accounts Payable has delegated authority to approve encumbrance documents for specific services Departments have delegated authority to spend on the purchasing card for procurements less than $10,000. Revocation of Delegated Authority The Chief Procurement Officer may revoke delegated authority to an individual or department at his or her discretion. When delegated authority is revoked, the Chief Procurement Officer shall, in writing, notify the State Auditor of the effective date of revocation. ETHICS West Virginia Governmental Ethics Act The West Virginia Governmental Ethics Act is applicable to all purchasing and receiving activities performed under the jurisdiction of the Governing Board. INTERNAL PURCHASING AUDITS The Chief Procurement Officer may provide for an independent audit of the University’s Procurement Services function, and for any delegations of purchasing authority. The Chief Procurement Officer may also carry out the audit at the request of the President, or the Senior Vice President of Operations / Chief of Staff. The audit will be documented in an internal report and provided to the University Auditor. AFTER-THE-FACT PURCHASES Purchases made without the prior approval of Purchasing are unauthorized purchases and become the personal responsibility of the person making the purchase. Known as “after-the- fact” purchases, they will require an explanation and justification that will be subject to approval. Those less than 30 days old will be reviewed by the Director of Purchasing. Those that are more than 30 days old will be reviewed by the Chief Operations Officer and also be approved by the appropriate departmental dean or higher level administrator. Original letters, e-mails, or faxed correspondence will be acceptable. Letters of Justification must: 1. Explain why University policy was not followed 2. Describe efforts instituted to preclude it from happening in the future. Any person who is not authorized to approve a purchase or contract, or who does so in a manner that is in violation of state law may be held personally liable for the cost of such purchase or contract as provided in state law. Purchases or contracts violating state law shall be void and of no effect. EXPLANATIONS FOR NON-COMPETING OR NOT ACCEPTING THE LOW BID An explanation is required from the department whenever they choose not to accept the low bid/quote or desire a sole source purchase over $25,000. A letter of explanation is expected from the department whenever the department has failed to utilize one of the procurement alternatives. If the situation was such that they could have “worked within the system” and did not, they have violated University policy and may be held personally accountable for obligating the University. Letters of justification for “after-the-fact” purchases less than 30 days old will be reviewed by the Director of Purchasing. Those that are more than 30 days old will be reviewed by the Senior Vice President of Administration and also be approved by the appropriate departmental dean or higher level administrator. PRE-PURCHASE ENCUMBRANCE OF FUNDS West Virginia state law requires that all expenditures be made within the limits of available appropriations and funds relating to expenditure schedules and quarterly allotments. Funds must be encumbered in advance of any purchase, agreement or contract being awarded. Exceptions require the prior approval of the Chief Financial Officer or designee. Estimates are encouraged. FUND SOURCES All funds deposited with the University, regardless of source, are University funds and must be managed in accordance with University policy. There are generally four kinds of funds at the University: State appropriated, State special appropriated, Federal grant and private funds in the Marshall University Foundation or Research Corporation. Each fund may have different expiration dates or other spending restrictions. VENDOR REGISTRATION In accordance with West Virginia State Code, every person, firm or corporation selling goods or services to the University in excess of $50,000 per order must complete and file a Vendor Registration and Disclosure Statement (Form WV-1 or WV1A) with the State Purchasing Division. A Vendor only has to register once. However, if the ownership, services offered or organizational structure change, the vendor must update the original registration by filling out a new form. The registration must be received by the State Purchasing Division in Charleston prior to award of a bid. When registering, the Federal Employer’s Identification Number (FEIN) of the firm or partnership must be given. If the registrant is an individual, his or her Social Security number must be supplied. After the form is completed, it must be signed, notarized and filed with the State Purchasing Division. A vendor may obtain a registration form by contacting the University’s Office of Purchasing or the State Purchasing Division. Also each fiscal year, vendors who have completed the WV-1 must pay a fee to the State. Vendors supplying sole source commodities are not required to pay the annual fee but must complete the WV-1A registration form. PURCHASES FROM WEST VIRGINIA VENDORS It is the policy of the Office of Purchasing to purchase as many goods and services as possible from West Virginia vendors. Departments are actively encouraged to support this policy for the benefit of these vendors and the State’s economy. Departments are especially encouraged to buy from state vendors who are minority, small, woman-owned, or disadvantaged businesses. FORMS There are several forms used to initiate the purchase of goods and services for the departments at the University. The following Marshall University forms are essential documents for the purchase of certain services, supplies or equipment. Instructions for completing these forms are provided with the form. These forms can be downloaded from the forms site. PROCUREMENT OPTIONS Elect