Function of Purchasing Services and General Purchasing Policies
Effective: August 1, 2005
Purpose
Scope
Policy
1. Function of Purchasing Department
2. Code of Ethics
3. Compliance with Purchasing Guidelines
4. Purchasing Authority
5. Purchase of Recycled Products
6. Authority to Question Quantity or Quality
7. State Contracts / Competitive Bidding
8. Service Contracts / Maintenance Agreements
9. Sole Source Purchases
10. Contract with Consultants
11. Contractual Arrangements
12. Conflict of Interest
13. Receipt of Gifts and Favors from Contractors or Suppliers
14. Campus Visits by Salespersons
15. Equipment Demonstration/Loans
16. Correspondence with Vendors
17. Complaints of Vendor Performance
18. Protest by Vendor of Contract Award
Purpose
Explains the various functions performed by Purchasing and general policies concerning the purchase of all materials, supplies, equipment, and services.
Scope
Applies to all school departments and activities. These procedures apply to purchases expended from all funding sources (including state-appropriated monies, federal and local funds, gifts, bequests, receipts, fees, and research or grant funds administered either by the State of North Carolina or by the North Carolina School of the Arts).
Exclusion: The only exception to the above is as follows:
If a donation were made for the specific purpose of purchasing certain articles, the conditions imposed by the donor would control. However, if the selection and purchase of the object were not controlled by the terms of the donation (the funds alone being provided to make it), the purchase would be subject to these procedures.
Policy
1. Function of Purchasing Department.
The mission of Purchasing is to provide direct support to the educational mission of the school by assisting departments in obtaining products and services of a high quality, at the lowest cost, and in the time needed. Purchasing achieves this mission by processing and expediting orders in an efficient manner and within the constraints of state purchasing requirements, NCSA policies, and the highest ethical standards.
To fulfill this mission, the functions of Purchasing Services are as follows:
- To organize and administer a purchasing program for all school departments and activities.
- To communicate and interpret state and federal guidelines governing purchasing practice.
- To train employees in the preparation of electronic requisitions and to administer this process.
- To provide the school with expertise on obtaining goods and services of the best quality at the lowest prices.
- To dispose of all obsolete, used or surplus materials, supplies and equipment.
- To coordinate the selection and purchase of federal and state surplus property.
2. Code of Ethics.
NCSA Purchasing Services abides by the National Association of Educational Buyers Code of Ethics, a copy of which may be obtained from Purchasing.
3. Compliance with Purchasing Guidelines.
All school purchase transactions shall be made in strict compliance with the provisions of the State of North Carolina as listed in this policy. Any employee circumventing established purchasing guidelines is subject to disciplinary action and may be held personally liable for the amount of the transaction. When a department is non-compliant with the purchasing procedure, a memorandum addressing the non-compliance will be sent to the responsible department head and to the next higher authority.
4. Purchasing Authority.
Authorization for NCSA purchases rests exclusively in Purchasing. NCSA departments or activities may not purchase or contract without requisitioning the purchase of goods or services through Purchasing.
5. Purchase of Recycled Products.
In keeping with state policy and to the extent economically practical, products made with recycled content are purchased.
6. Authority to Question Quantity or Quality.
Purchasing has the responsibility and full authority to question the quantity, quality, and kind of material requested by school departments and activities so that the best interests of the school may be served.
7. State Contracts/Competitive Bidding.
- Many items are under state contract and must be obtained from specified vendors.
- Other items, due to cost, must be obtained under a competitive bid process by Purchasing.
8. Service Contracts/Maintenance Agreements.
A service or maintenance contract is initiated by submitting a requisition to the Purchasing Office. The Purchasing Director must sign all maintenance contracts.
The Purchasing Office obtains Service contracts for most typewriters and copiers.
Once equipment is covered on a maintenance contract, service requests should be referred to the vendor for prompt response.
9. Sole Source Purchases.
N. C. General Statutes require the school to procure all materials, equipment, supplies, and services via competitive means whenever practicable. On some highly technical items, there will be only one known source. A sole source justification for a purchase of this type of item without competitive bidding must accompany the procurement request. The sole source justification form should be forwarded to the Director of Purchasing for approval and should give the following information:
- Name and address of the suggested supplier.
- Technical specifications that make the equipment unique.
- Names and addresses of other vendors that make similar equipment, and details of the ways such equipment fails to meet required specifications.
10. Contract with Consultants.
The definition of consultants means work or task(s) performed by independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel review, analysis or advice in formulating or implementing improvements in programs or services. This includes but is not limited to the organization, planning, directing, control, evaluation and operation of a program, agency; or department.
Before receiving authorization to seek consultant services, NCSA shall submit to State Purchase and contract written justification for its request for consultant services. This written justification shall at a minimum explain:
- What services the school desires to secure
- Why the work to be performed by the consultant cannot be reasonably accomplished by employees of the requesting school
- How the work to be performed relates to the proper functions of the school
- What benefits the school expects to receive from the consultant’s services
- What the school estimates to be the cost of the services sought and what funds will be used for this service
- What potential sources of consultant services, if any, the school has identified
The written justification shall be accompanied by a letter of endorsement for the proposed contract(s) from the Chancellor.
Exception: Individuals for instructional services, and for advising as to curriculum development and academically oriented research, are exempt from the above prescribed procedures. This exemption does not, however, include the use of consultants for the primary purpose of assisting Administrators with management decisions.
11. Contractual Arrangements.
All contractual arrangements for goods and services must be reviewed and approved by the Director of Purchasing.
12. Conflict of Interest.
- School departments shall not make purchases from individuals employed by the school.
- In addition, employees shall not use the purchasing power of the school and/or the state for personal advantage.
- Any transaction that may appear to be for individual personal gain, (as determined by Purchasing) must have approval from the appropriate Vice Chancellor before the transaction shall be completed. Any such transaction must comply with the NCSA policy concerning conflict of interest.
13. Receipt of Gifts and Favors from Contractors or Suppliers.
In accordance with N. C. General Statute 133.32, it is unlawful for any contractor, subcontractor, or supplier who:
- Has a current contract with a governmental agency, or
- Has performed under such a contract within the past year,
- Or anticipates bidding on such a contract in the future
to make gifts or favors to NCSA employees charged with the duty of:
- Preparing plans, specifications, or estimates for public contracts, or
- Awarding or administering public contracts, or
- Inspecting or supervising construction.
Likewise, it is unlawful for such employees to willfully receive or accept gifts or favors from such contractors, subcontractors, or suppliers.
Exclusion: This policy on gifts and favors is not intended to prohibit:
- Honorariums for participating in meetings
- Advertising items or souvenirs of nominal value
- Meals furnished at banquets
- Donations to professional organizations to defray meeting expenses
- Participation by NCSA employees and officers who are members of professional organizations in any scheduled meeting functions available to all members of the professional organization attending the meeting
- Customary gifts and favors between NCSA employees or officers and their friends and relatives (or friends and relatives of their spouse, minor children, or household members) when the personal relationship rather than business is clearly the motivating factor for the gift or favor.
However, a school employee who knowingly receives such gifts or favors must report it to his or her Vice Chancellor if a contractor, subcontractor, or supplier-doing business directly or indirectly with the school made the gifts.
14. Campus Visits by Salespersons.
- Salespersons (with the exception of textbook sales representatives who are on campus visiting faculty) may visit school departments or activities only upon prior approval by Purchasing of the vendor's visit. Salespersons visiting school departments or activities without purchasing approval should be directed to Purchasing Services.
- Approved visits will be scheduled by Purchasing, with ample notification to the school department or activity. Textbook sales representatives may schedule visits with faculty at the faculty member's convenience.
15. Equipment Demonstration and Loans.
Departments must obtain prior approval from Purchasing Services for equipment demonstrations or equipment loans. Departments may not accept goods on consignment, pending the issuance of a confirming purchase order.
16. Correspondence with Vendors.
Once a purchase order has been transmitted to a vendor, all correspondence concerning the purchase is to be handled by Purchasing Services. When the technical details involved make it advisable to delegate authority to others, the Purchasing Department must receive copies of all correspondence.
Exception: Faculty may correspond directly with textbook sales representatives concerning textbook publication and content, the availability of support materials (study guides, textbooks) and similar matters.
17. Complaints of Vendor Performance.
School departments should direct all complaints of vendor performance or service to the Director of Purchasing via a memorandum. The memorandum should include the following:
- Purchase order number
- Full name of the vendor
- Date of the purchase order
- Complete description of the problem
- Chronological listing of the events since the problem was discovered.
Departments may call Purchasing for assistance in preparing the memorandum. Upon receipt of the memorandum, Purchasing will contact the vendor for resolution of the problem and/or (as appropriate) will submit a "Complaint to Vendor" form to State Purchase and Contract. Purchasing will notify the department of the outcome.
18. Protest by Vendor of Contract Award.
Any vendor desiring to protest a contract award handled by NCSA must submit a written request to the Director of Purchasing. If a vendor indicating a desire to protest a contract award contacts a department, the department should refer the vendor to the Director of Purchasing, who will provide the vendor with appropriate instructions for filing a protest.
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