PURCHASING3001August 2015 Chapter 3 PURCHASING Section: 3:001 Methods and Requirements UM System Supply Chain UM Supply Chain assists departments in acquiring goods and services: That meet user needs. At best value. With minimal use of University resources. Through a process that meets the University’s ethical, legal and fiduciary responsibilities. Delegation of Authority See: BPM-301 Delegation of Authority http://www.umsystem.edu/ums/rules/bpm/bpm300/manual_301 Methods of Procurement Items and services obtained from external sources should be procured in an appropriate manner, using either a University Purchasing Card or Purchase Order. Reference the Payment Method for Expenditures – Quick Reference Guide for a summary list of various items/services and the appropriate procurement method to utilize for each. Purchasing Card: Cardholders may use a University-issued purchasing card for non-routine, miscellaneous purchases totaling $5,000 or less. All purchases must comply with the University of Missouri Purchasing Card Policy Manual. Purchase Order: Purchases that are exempt from the purchasing card or that exceed $5,000 should be requisitioned through UM Supply Chain. A requisition must be entered and approved in PeopleSoft before the order is placed with the vendor. , Procurement Limitations and Requirements The following requirements apply to University purchases, based on the total cost of acquisition: Purchases Less Than $5,000: Bids are typically not required. The University purchasing card is the preferred method of procurement/payment, except as limited by the purchasing card policy. Note: Purchasing card limitations include, but are not limited to, all on-site services and any purchase requiring a signed agreement. Purchases Between $5,000 & $10,000: UM Supply Chain will determine whether it is in the best interest of the University to issue a request for bids. If it is determined that no additional savings or benefit would result from a solicitation of bid, a Purchase Order will be issued. A firm quote from the vendor is required prior to issuance of a direct order. Purchases in Excess of $10,000: The issuance of a bid or proposal is required unless the item/service is: (1) Already on contract with the University. ; or (2) Approved by UM Supply Chain as a sole source purchase. A sole source purchase requires that the item or service be unique in nature and available only from one specific source, as detailed in the “Sole Source Purchases” information below. Bids and Proposals See: BPM-303 Bids and Proposals http://www.umsystem.edu/ums/rules/bpm/bpm300/manual_303 Sole Source Purchases Some items/services cannot be competitively purchased due to their sole source nature. In such a case, the unique characteristics of the product or service must be clearly described. In addition, it must be documented that an exhaustive search revealed that no comparable alternatives exist in the marketplace. The related documentation should be provided to UM Supply Chain on the electronic Sole Source Justification Form within the PeopleSoft Requisition module. Note: If an item/service is available from the manufacturer and/or multiple distributors, the purchase would not be approved as a sole source.
Chapter 3
PURCHASING |
Section: 3:001
Methods and Requirements |
Adopted:
Revised: 08/2015; 11/06/2018
UM System Supply Chain
UM Supply Chain assists departments in acquiring goods and services:
- That meet user needs.
- At best value.
- With minimal use of University resources.
- Through a process that meets the University’s ethical, legal and fiduciary responsibilities.
Delegation of Authority
See: UM Policy 26101 – Procurement Authority
Methods of Procurement
Items and services obtained from external sources should be procured in an appropriate manner, using either a University Purchasing Card or Purchase Order. Reference the Payment Method for Expenditures – Quick Reference Guide for a summary list of various items/services and the appropriate procurement method to utilize for each.
- Purchasing Card: Cardholders may use a University-issued purchasing card for non-routine, miscellaneous purchases totaling $5,000 or less. All purchases must comply with the One Card Procedures manual.
Purchase Order: Purchases that are exempt from the purchasing card or that exceed $5,000 should be requisitioned through UM Supply Chain. A requisition must be entered and approved in PeopleSoft before the order is placed with the vendor.
Procurement Limitations and Requirements
The following requirements apply to University purchases, based on the total cost of acquisition:
- Purchases Less Than $5,000: Bids are typically not required. The University purchasing card is the preferred method of procurement/payment, except as limited by the purchasing card policy. Note: Purchasing card limitations include, but are not limited to, all on-site services and any purchase requiring a signed agreement.
- Purchases Between $5,000 & $10,000: UM Supply Chain will determine whether it is in the best interest of the University to issue a request for bids. If it is determined that no additional savings or benefit would result from a solicitation of bid, a Purchase Order will be issued. A firm quote from the vendor is required prior to issuance of a direct order.
- Purchases in Excess of $10,000: The issuance of a bid or proposal is required unless the item/service is: (1) Already on contract with the University. ; or (2) Approved by UM Supply Chain as a sole source purchase. A sole source purchase requires that the item or service be unique in nature and available only from one specific source, as detailed in the “Sole Source Purchases” information below.
Bids and Proposals
See: UM Policy 26201 – Bids and Proposals
Sole Source Purchases
Some items/services cannot be competitively purchased due to their sole source nature. In such a case, the unique characteristics of the product or service must be clearly described. In addition, it must be documented that an exhaustive search revealed that no comparable alternatives exist in the marketplace. The related documentation should be provided to UM Supply Chain on the electronic Sole Source Justification Form within the PeopleSoft Requisition module. Note: If an item/service is available from the manufacturer and/or multiple distributors, the purchase would not be approved as a sole source.