Purchasing Policy
Introduction
The purchasing function involves the procurement of goods and services that meet community needs at the lowest possible cost consistent with the quality needed for the proper operation of the various departments. In general, purchases should be handled in a manner that creates the greatest ultimate value per dollar expended.
The Purchasing Department is responsible for assisting the purchasing function of the college by providing the community with "best procurement practices" guidelines; maintaining College procurement systems, and communicating the purchasing policies and procedures of the College. Operating within the guidelines described in this document, authorized department representatives may initiate purchases with funds available in their approved budgets.
- Conduct all purchasing in accordance with College policy as outlined in this guide and the National Association of Educational Procurement (NAEP) Code of Ethics.
- Stimulate competitive bidding and provide interested vendors with an opportunity to offer their products to the College.
- Strive to maintain strong and enduring relationships with vendors of proven ability and desire to meet our needs. To accomplish this, our purchasing activities will be conducted so that vendors will value our business and make every effort to furnish our requirements on the basis of quality, service and price.
- Employees must not become obligated to any supplier. No member of the staff of the Purchasing Department or College employee shall receive any benefit or profit from any contract or purchase made by the College.
- The Purchasing Department shall not knowingly issue a purchase order when there is evidence of a conflict of interest.
- There must be funds available in the departmental budget before considering any purchase.
- Employees are not allowed to make purchases with College funds for personal use.
Methods of Procurement
- Purchase Order Request Form – to obtain a purchase order from the Business Office.
- College Visa card – a convenient and recommended method of payment.
- Personal Funds reimbursed by the College. Potential sales tax issues which are not reimbursable.
- Departmental Petty Cash for purchases under $100.
Some suggestions before making that purchasing decision:
Use preferred vendors whenever possible. These contracts have been negotiated on behalf of the college or groups of colleges. Departments are encouraged to seek information on products and services from the suppliers included in our consortium agreements.
- E&I (Educational & Institution Cooperative) http://www.eandi.org
- ACTC (Associated Colleges of the Twin Cities) http://www.actc-mn.org
- US Communities http://www.uscommunities.org
- Provista http://www.provistaco.com
- State of Minnesota http://www.mmd.admin.state.mn.us
- Office Supplies- Innovative Office Solutions (http://www.innovativeos.com/stateofmn/). Office supply items found in the Innovative Office Supply catalog or at their web site are shipped overnight to the College provided the order is placed prior to 4:00 p.m. Monday through Friday. To reduce natural resources consumed by packaging and delivery, please coordinate and order office supplies only once a month. The Bookstore is another resource for ordering office supplies and you can order on-line at www.carletonbookstore.com
If you require items that are not found in the Corporate Express catalog or at www.eway.com or if you require a large quantity of an item, contact the Corporate Express account representatives to obtain pricing.
If you are not able to use a preferred vendor:
- Contact more than one vendor. Comparison shopping does help.
- Give each vendor the SAME information. It is good business ethics and gives each vendor an equal opportunity. Do not disclose the quoted price that you receive from competing vendors.
- Discuss every area of your need, including the cost of items needed to operate the purchase, such as toner for a printer. Discuss the cost of maintenance for the item and shelf life of items purchased as well as repair costs.
- Don't be taken in by sales pitches indicating pricing will rise if you don't order now, or "if you don't give me your order right now I can't guarantee the same pricing." Refer the salesperson to the Purchasing office.
When in doubt call the Purchasing Department, Randie Johnson x4178.
Purchase Order Request Form
A purchase order request form is the basic document used for initiating the procurement of supplies, services, or equipment and may be obtained from the Purchasing Department or retrieved from http://apps.carleton.edu/campus/business. Faculty/staff must obtain the signature of their supervisor before sending the request form to the Purchasing Department.
Please make sure all information is accurate and that proper signatures and account codes are obtained. Use the account code which best describes the type of expenditure.
ALWAYS, check your budget to ensure you have sufficient funds to cover the expenditure.
Requests for Quotations
Price negotiations are always an important consideration, and comparing pricing between vendors is encouraged at any dollar amount. The College tries to match the procurement strategy closely with the specific item being purchased in order to minimize procurement costs while getting the best results. As a general rule, the higher the expenditure, the more care must be taken to plan and execute a careful procurement strategy.
Consistent use of the E&I (Educational & Institution Cooperative), ACTC (Associated Colleges of the Twin Cities), US Communities, Provista, and State of Minnesota contracts will save time and effort and get the best price. For questions please contact Randie Johnson at ext. 4178.
If using an E&I, ACTC, US Communities, Provista, or State of Minnesota contract, no other price checking is required on any item. When no contract applies, follow these guidelines in deciding how best to check prices:
- Under $1,000: Check one or more prices first
- $1,000<$10,000: Compare two or more prices. Telephone or faxed quotes are acceptable.
- Over $10,000: A formal Request for Proposal or Request for Quotation is required, unless using an existing contract.
- Construction Projects Over 25,000: A formal Request for Proposal or Invitation for Bid is required, unless using an existing contract.
- Keep strictly confidential all information and quotations submitted by competing vendors until the purchase award has been made.
Purchasing recognizes that departments have specific expertise in their area and may wish to do their own price checking or write their own bid. Departments can choose to do it themselves, ask the Purchasing Department to handle it, or work in conjunction with the Purchasing Department using a team approach. Consult with the Purchasing Department to work out a strategy. When possible, alternative sources of supply will be developed to encourage competition and provide goods and services in emergency situations.
Requirements for a contractor or consultant
Prior to a contractor or consultant performing work or providing service, they must submit the following:
- Insurance Requirements and Indemnification Agreement
- Certificate of Insurance listing Carleton College as additional insured.
Please contact Randie Johnson at 222-4178 for assistance with this process.
Bids and Quotations for Purchases over $10,000.
It is the policy of the College to obtain competitive bids and price quotations whenever practical, on all purchase requests for material and equipment purchases with an aggregate value of $10,000 or more. This is accomplished by negotiated pricing agreements, soliciting requests for proposal, and formal bidding procedures. Departments can obtain quotes on their own as part of their decision making process or the Purchasing Department can assist the departments.
Note: For equipment purchases over $5000 involving Federal funds, completion of the Vendor Selection Form is required.
All vendor bids and quotations are evaluated on the basis of product quality, technical compliance with specifications, total cost, and the vendor’s acceptance of the College’s terms and conditions. Bids should be requested from at least two (2) vendors, whenever possible.
The primary objective of this procedure is to obtain goods and services at the lowest overall cost commensurate with quality and service. As a result the College benefits when suppliers realize they are vying for the award of business and must be competitive in cost and service.
The requirement for competitive quotations depends upon the total cost of goods or services to be procured during the term of the agreement; such cost may be incurred either at one time or over a period of time, as in the case of a lease or rental agreement.
The requirement to obtain competitive quotations may be waived in certain situations such as the following:
• Procurement can be made under an existing agreement.
• An emergency situation exists.
• The price and terms are known to be substantially identical among all suppliers.
• The request is for an identical requirement that has been procured recently through the quotation procedure.
• The available supply is limited and procurement must be made immediately or an opportunity will be lost.
• The vendor is the only vendor in the world who sells the particular item requested.
• The decision to do so is in the best interests of the College.
DESCRIPTION AND/OR STATEMENT/SCOPE OF WORK (SOW)
The item description/statement/scope of work describes the quality and quantity of goods and services required by the College. Quality is determined by our needs. The purpose is to procure those items to suit the intended use at the lowest ultimate cost. Be as specific as possible; cite the specific performance, service, or deliverables that are required. Brand names may be used to establish a baseline comparison, but the words “or equal” must be included whenever possible and appropriate. A brand name may also be used when it is needed to match existing equipment or the item has been pre-approved as a standard by the college. In this instance "NO SUBSTITUTES" will be accepted.
BID DEPOSITS
When deemed necessary by the Department, bid deposits and/or performance bonds and payment bonds may be required. Unsuccessful bidders will be entitled to return of the deposit after award of bid. Successful bidder's deposit will be returned after satisfactory performance of the bid contract. It has been the policy of the College not to require bid deposits and performance bonds and payment bonds except when necessary. We believe this facilitates and encourages more competition with less cost to the bidders and the College. However bid deposits and performance bonds are required when it is in the best interest of the College such as in construction bids. Payment bonds ensure that our contractors pay their subcontractors.
BID SUBMITTALS
All formal bids must be submitted in a sealed envelope and identified with the following information; BID TITLE, BIDDERS NAME AND ADDRESS, DATE AND TIME OF BID OPENING. Bids may be delivered personally or by mail. It is the sole responsibility of the bidder to have his bid in the office of the Using Department by the date and time designated.
BID OPENINGS
Bids are opened privately by the Using Department after the designated bid opening time.
REJECTION OF BIDS
Read the bids carefully. Any deviation, alteration, or omission in the bid document may disqualify your bid. Read the specifications carefully to ensure all requirements are met. Below is a list of the most common errors found in bid documents.
1. Be sure you have properly signed and provided a seal on ALL required pages.
2. NO ERASURES ARE PERMITTED. If a correction is necessary, draw a single line through the entered figure and enter the corrected figure above it. All corrections (manual, typewriter, or whiteout) MUST BE INITIALED BY THE PERSON SIGNING THE, BID. Any illegible entries, pencil bids or corrections not initialed will not be tabulated and will result in disqualification.
BID RECOMMENDATIONS
After all documentation is reviewed a recommendation is made as to the lowest and best.
AWARD
The Using Department reserves the right to reject any or all bids and to waive any technicalities in bids received. A College purchase order or letter of intent is sent to the vendor awarded the bid. The College purchase order is a binding contract between the College and the Vendor and the bid is by reference made part and parcel of this contract.
Purchase Orders
The Purchase order is a contract that legally obligates the College when accepted by the Vendor.
Complete a purchase order request form in detail, to include the description, quantity, unit price and estimated cost of each item and have the worksheet signed by the Department Chair or supervisor.
Submit the purchase order request form to Purchasing in the Business Office. A purchase order will then be generated. Purchase order request forms received in Purchasing prior to noon will turn into a purchase order in the afternoon. If you list a fax number on the worksheet, it will be faxed directly to the vendor.
Please use these 6 easy steps when processing a purchase request for goods and services
- Fill out the Purchase Order Request Form: Be certain to include as much information as possible. Catalog number(s), description of item(s), size(s), color, grade (if applicable), contact person and fax number, costs and the budget number should be noted on each requisition. The purchasing staff will be happy to assist you in attaining this information.
- Forward the completed form to the Purchasing Department: If any of this information cannot be determined, the Purchasing Department will obtain them after the request form arrives for processing. Bear in mind that Purchasing may be able to secure the requested good/services from another more effective source and will advise you on vendor selection when appropriate.
- Estimated prices are to be entered on the requisition when actual costs are not known.
- Enter a date wanted (delivery date) on each requisition: Please specify a date. ASAP, RUSH, IMMEDIATELY are usually ineffective.
- To insure your requisition is processed as quickly as possible, please be sure all appropriate signatures are attained BEFORE forwarding to the purchasing office. If you submit the request form prior to noon it will be mailed or faxed out after 3:00pm the same day.
- Please include any bid documents with your requisition. When a department specifies a single vendor for materials, service or equipment costing $10,000 or more, the requisitioner must provide a supporting statement as to why competitive prices cannot be obtained.
Blanket Order
You may find yourself using a particular supplier many times during the course of the year for small dollar purchases. In this case, a "Blanket Purchase Order" may be the best means of conducting business. A blanket Purchase Order is a simplified method of filling repetitive needs for small quantities of supplies or services with qualified sources. Blanket Purchase Orders are designed to reduce administrative costs in accomplishing small purchases by eliminating the need for issuing individual orders. If you think you need a blanket Purchase Order, please contact the Purchasing Department to discuss your options.
Standing Orders
A Standing Blanket Order is used by a requesting department when a specified quantity is to be delivered at a specified set time, the requesting department would set up a specified delivery schedule with specific quantities to be delivered on a specific day, week, etc.
Sales Tax
Carleton College, as a non-profit educational institution, is exempt from the payment of Minnesota sales tax on the purchase of goods and services in the state of Minnesota. However, we must pay certain taxes, such as hotel, and restaurant taxes. The College's MN sales tax exempt number is 20389. The College will not reimburse departments or individuals for sales taxes paid for equipment and supplies. Do not use this number for personal expenses. Certificate of Exempt Status is available at http://apps.carleton.edu/campus/business
FOB Terms
FOB Origin means that the seller bears the risk until it loads the goods onto an appropriate carrier, after which the buyer assumes risk of loss and must claim against the carrier for damage or loss in-transit. Also, the buyer assumes the cost of freight.
FOB Destination means that the seller bears the risk until the goods are transported to the buyers dock, after which the risk will pass to the buyer. Also, the seller bears the cost of freight.
Returned Goods Procedure
Occasionally it becomes necessary to return materials ordered because the goods are no longer required, excess material were ordered, or the material, as received, is not acceptable. In order to document the return of goods, the following procedure will be used.
The end user will make contact with the vendor, negotiate a return, get the returned goods authorization number and set up pick-up of the return materials. Do not write on the packages to be returned because they must be "Re-Sellable" for the vendor to issue credit. The following information may be required by the vendor:
|
Damaged Goods
When your order is received, compare the invoice or packing slip to the purchase order. Open cartons immediately to check for damage. The truck driver can wait until you do this. If you see obvious damage to the carton or goods upon delivery, either refuse the delivery or make note on the bill of lading that goods were damaged. If you accept the shipment and find hidden damage, save the carton that the product came in and report the damage to the vendor.
Credit Card Purchases
Credit cards can be used for purchasing please refer to the Purchasing Card manual for further details.
Internet Purchases
College credit cards may be used for purchases over the Internet. Please make sure you are on a secure site when using your credit card.
Legal Contracts
The Vice President and Treasurer must sign all legal contracts, leases, agreements that will obligate the College to any vendor with a value exceeding $25,000.
Recycled Products
The College's commitment to integrating social and environmental responsibility into the educational enterprise extends to all aspects of its affairs, including the purchasing function. As a vital part of this commitment, emphasis is placed on locating and promoting suppliers for products which promote waste reduction, either through the product's recycled content, or through the product's ability to be reused or recycled. Please consider product alternatives containing recycled content when the quality and price are comparable.
As the primary source of paper used in copiers and printers on the Carleton College campus, Printing Services has adopted the policy and practice of filling such orders with uncoated white paper with a minimum of 30% post-consumer recycled content. Use of virgin paper is discouraged; however it will be available for customers who deem it necessary for their work.
Energy Star Products
Look for the ENERGY STAR label when you’re shopping for items like DVD players, CD players, and computers. http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductCategory&pcw_code=OEF
It means that the product meets rigorous energy-efficiency guidelines.
ENERGY STAR-qualified products work just as well as standard products, and they are better for the environment.
Surplus Property
Items declared as surplus by any department must be offered or placed within the College to the extent feasible or may be used as a trade-in if economically feasible. Employees are not allowed to personally take surplus property. Surplus property may be contributed to other non-profit organizations with a Deed of Gift authorized by an officer of the College. Contact the Business Office for more information.
Prohibition of Firearms
Carleton College prohibits contract employees, to the maximum extent permissible under Minnesota law, from carrying or possessing any firearms on campus. Contractors who fail to comply with this paragraph shall be determined to have a material breach of contract and shall entitle Carleton to terminate their Agreement immediately and without notice.
Sweatshop Verification
Carleton is a member of two groups that can give you information on the garment industry and they monitor factories for violations of codes of conduct. Worker Rights Consortium can be found at www.workersrights.org Click on "Factory Disclosure Database" and you can search by college, by vendor, by country, or by factory. Fair Labor Association can be found at www.fairlabor.org Click on "Factory Database". The information given is contact information for the vendor, not actually factory information. It's not as useful as the WRC site. You can, however, enter "Carleton" and see a partial list of the vendors from whom we purchase.
Contracts with Independent Contractors
Skills needed for limited or intermittent periods may be obtained from an independent contractor/consultant when other means are impractical. To determine whether an individual qualifies as an independent contractor, you must work with Human Resources to complete the Employee/Independent Contractor Checklist.
If the service provider is actually an employee approval must be made through the Human Resources hiring process and include associated fringe benefit costs, employer payroll taxes and insurance risks inherent with employees. Misclassification of service providers as independent contractors exposes the College to penalties from the IRS and other regulatory agencies.
Insurance Certificates
If a vendor will be performing any work or service on the Carleton campus, an insurance certificate must be obtained before they begin their work. Insurance is required to protect Carleton in the event of an accident. The vendor would contact their insurance carrier to provide the certificate.
The current insurance requirements are:
Comprehensive General Liability
$1,000,000 – occurrence
$3,000,000 – aggregate
Comprehensive Automobile Liability
Including owned, non-owned and hired autos
$1,000,000 – combined single limit
Workers Compensation as required by law
Carleton College must be listed as named insured on the certificate.
Employee Recognition
The College values its employees. College Relations coordinates employee recognition events on an annual basis. Other celebratory events and gifts to honor an individual for personal reasons (e.g., wedding, new job, baby shower, birthday, housewarming, promotion, etc.) may not be charged to College funds. Personal funds should be used to pay for these and other kinds of staff parties and for gifts for such events. Gifts and awards received by employees may be taxable.
Taxing of Gifts, Prizes and Awards
1. Monetary awards, including gift cards and gift certificates, for any amount, are subject to federal, state and FICA withholding, and as taxable income, are reported on an employee’s Form W-2.
2. Recognition leave. Any recognition leave awarded to an employee is considered income and will be subject to federal, state and FICA taxes when used by the employee.
3. Non-monetary awards. The Carleton Business Office is responsible for determining whether or not non-monetary awards are taxable, in accordance with IRS guidelines. While non-monetary awards having a value equal to or greater than $100.00 (includes single or multiple awards) are not subject to federal, state, or FICA withholding, the value of such awards will be added to the employee’s gross wages and reported on the employee’s W-2. Non-monetary awards with a value less than $100.00 are not taxable or reportable (unless the total non-monetary award(s) and monetary award(s) to the employee equal $600.00 or more within the fiscal year).
Centralized Purchasing
Computers
In order to ensure an accurate record of all computer hardware owned and maintained by the college, all computer purchases are coordinated through Information Technology Services.
Furniture
In order to ensure buildings and equipment across campus are consistent in quality and the ambiance of the buildings is maintained, carpeting, furniture, and wall covering purchases are coordinated through the Facilities Department. Please use the Facilities Work Order and/or Facilities Change Request to initiate purchases.
Paper
If copy paper is needed, it can be secured from Printing and Mailing Services.
Door Signs
Door signs should be coordinated with Facilities. It is the desire of Carleton College to standardize these purchases. The department obtaining the purchase will be charged for the cost.
Stationery - letterhead & business cards
Letterhead and business cards should be coordinated with Publications. It is the desire of Carleton College to standardize these purchases. The department obtaining the purchase will be charged for the cost.
Telephones
Telephones can be acquired and installed by contacting Telecommunications. Any telephone request must be approved by the Department Head as there is a monthly charge assessed for each telephone used and each department is responsible for paying any long distance charges incurred. If a voluntary telephone move is requested, the department must pay for the charge.
Expectations of our Customers
Keeping to the following guidelines will help us to do a better job for the College community:
Revised 11/9/2010 |