Purchasing 101

1
Purchasing101

• Presented by
• Brian Richardson
• Assistant Director of Purchasing
• Ray Barger
• Warehouse Manager
• Central Receiving Stores

2
Objectives

• Purchasing Philosophy
• Typical Requisition Flow
• Purchasing No Nos
• DPR Direct Pay Request
• Printing and Promotional items
• Contracts
• Consultant Services
• P-Card
• Signature Authority
• Receiving and Stores

3
Purchasing Department
4
Definition of Public Purchasing

• Public procurement is the acquisition,
  management, and disposition of goods and services
  in accordance with the basic tenets of public
  contracting.

5
Purchasing Philosophy

• To do whatever is possible within the limitations
  of resources and legal requirements to promptly
  obtain the best goods and services to facilitate
  the mission of the University.
• To provide a service to the departments in the
  acquisition of goods and services
• Ensure that the University Policies and
  Procedures are properly administered to comply
  with Federal, State and Local Laws.

6
Purchasing Process

• Contact Purchasing with any questions.
• All formal correspondence with vendors must be
  made by the Purchasing Office.
• Common sense and policy requirements should be
  considered.
• Safety, Environmental and Ethical Considerations
• Coordination of Function, Effort and Resources
• Policy Statement 50

7
Initiating a Request for Goods or Services

• By Requisition
• Full description of item needed
• Proper funding
• A recommended vendor
• A realistic delivery date
• By Central Stores
• Central Stores Requisition/Invoice
• By Petty Cash
• Items under 100 being picked up by department.
• Over 100 is you get prior approval from
  Purchasing
• Return Goods Notification

8
What are the Purchasing thresholds and lead
times?

• Under 5,000 Obtain goods or services from best
  source using state term contracts and informal
  bids.
• Between 5,000 and 25,000 -- Local Bid --
  (Purchasing will get oral, written or fax
  quotes).
• One to two weeks
• Between 25,000 and 500,000 -- Formal Bid--
  (Purchasing posts bid on the PC IPS website).
• Two to four weeks
• Contracts Over 500,000 -- State Bid
  (Purchasing will forward requisition to P C for
  solicitation).
• Four to eight weeks or hibernation

9
Exemptions

• Emergency purchases
• Sole Source acquisitions
• Purchases of used equipment
• Purchases of items for resale
• Purchases of published materials
• Certain personal services
• Services provided by individuals by direct
  employment with the State
• Perishable articles

10
Purchasing No Nos

• The DPR is not an order form.
• Placing orders without a purchase order.
• Splitting orders to avoid competitive bidding.
• Bid shopping to find a lower price.
• Receiving material in Banner that has not been
  received. (especially at year end)

11
Direct Pay Request

• DPR
• For small and incidental items
• Common use is registrations, subscriptions,
  advertisements, membership dues, periodicals and
  honoraria.
• For a commodity when the vendor will not take a
  purchase order. Pre-Payment Authorization form
  must accompany this request.
• All services must be run through the Purchasing
  Office. Why?

12
Printing and Promotional items

• Wallace Printers has won the bid again for our on
  campus contract printer- they get first right
  of refusal or first chance at a project
• Fill out the information form that Wanda will
  send you by email
• After completion, submit your request with the
  information you provide to Wallace Printing first
• Once Wallaces quote is obtained, please review
  it
• If you are happy with it, just simply complete
  Wallaces own printing form. If the amount is
  over the 5000 bid limit, since Wallace is our
  contract printer, a bid will not be necessary if
  you choose Wallace.
• Continued next page

13
Printing and Promotional items

• If you are not happy with Wallaces quote, Wanda
  will obtain other quotes for you.
• If the quotes are above 5000, the item will need
  to go out for bid, and Wallace will still be
  included in the bid
• Once a printer has been chosen, simply complete
  the requisition in Banner as usual and Wanda will
  complete the purchase order.

14
Contracts

• Types of Contracts
• State Contracts
• Standing Orders
• Maintenance Contracts
• Consulting Services
• Signature Authority (who has it?)
• www.legal.uncc.edu/policies/kauthority.html
• Contract Checklist (what is it?)
• http//www.legal.uncc.edu/contract.html

15
Consultant Services

• Definition
• Exemptions
• 6 Questions
• Waiting for approval to bid from the Governors
  Office
• Committee review of proposal submissions
• Back to State P C for approval for award

16
Central Receiving and Stores
17
Central Receiving Stores

• Why Stores?
• Provides prompt delivery of commonly used high
  volume items. (marking devices, decals, signs)
• Enables all users to benefit from volume pricing
  and quantity discounts.
• Eliminates the cost of processing numerous small
  volume purchase orders for repetitive items.
  (batteries, toner cartridges, paper, rags)
• Simplifies the billing process.
• UPS Campus Ship
• Lwbarfie_at_uncc.edu

18
Central Receiving Stores

• Central Stores offers a distribution system for
  some state contract items
• Furniture
• Software Orders
• http//receiving.uncc.edu//Software20Orders.htm
• Bottled Gases
• http//receiving.uncc.edu//Gas20Ordering.htm
• Staples Office Supplies
• https//www.stapleslink.com/webapp/wcs/stores/serv
  let/malllogon?storeId10101

19
Staples Office Supplies

• Staples Link Ordering Process
• E-mail Larry Barfield at Lwbarfie_at_uncc.edu
• Supervisor's name, FOAPL, Department, Building,
  Room number

20
Inventory Control Surplus Property

• The Role of inventory Control
• http//receiving.uncc.edu/inventory/index.htm
• Conducts annual departmental inventory as
  mandated by State Guidelines.
• Verifies and tags departmental assets exceeding
  5,000, laptop computers and desk top projectors
  costing 1,500 or more.

21
The Role of Surplus Property

• How can I dispose of State owned property?
• Call John Cashion x 7-4991
• Transfer surplus property between departments.
• Picks-up unwanted merchandise from user
  department
• Conducts weekly bid sales of surplus property.
• Conducts an open house every Thursday from 9
  a.m. to noon for the campus community to view
  surplus items.

22
Forms

• Department Pick-Up/Town Run Authorization
• Receiving Stores Requisition/Invoice
• Direct Pay Request
• Pre-Payment Authorization
• Return Goods Notification
• Sole Source Justification Checklist
• Equipment Disposition/Transfer

23
UNC Charlotte Purchasing

• Questions??