DIXIE STATE COLLEGE OF UTAH

POLICIES AND PROCEDURES MANUAL


Section: 6-Administration

Policy No: 8
Approved: 06/07/96
Revised: 10/05/06

Policy: PURCHASING

6-8 PURCHASING

8.1 PURPOSE

8.1.1 To outline requirements and procedures for the purchase of goods and services.

8.2 Purchasing Department Responsibilities

8.2.1 The Purchasing Department shall be responsible for the procurement of supplies and services and the selection of suppliers required by the College and all its departments within legal requirements. The Director of Purchasing, or a Purchasing Department designee in the Director's absence, may procure goods and services for the College. Exceptions to this policy include:

8.2.1.1 purchases specifically exempted under section 8.3 below, and

8.2.1.2 procurement relating to building construction and architecture/ engineering services obtained by the state Division of Facilities and Construction Management.

8.2.2 The Purchasing Department shall establish operating procedures to:

8.2.2.1 locate and ensure adequate and continuing sources of supply, consistent with legal, budgetary and delivery requirements of user departments; and

8.2.2.2 provide the necessary assistance to acquire such supplies and services on a timely and economical basis; and

8.2.2.3 assure compliance with all applicable federal, state, and college regulations during the procurement needs of the College.

8.3 Procurement Authority of Operating Units

8.3.1 By virtue of their special needs and the roles they fill at the College, the following operating units are authorized to solicit bids and award purchase orders without going through the Purchasing Department:

8.3.1.1 College Bookstore - Resale items only

8.3.1.2 College Food Service - Resale items only

8.3.1.3 College student fee account purchases are under the direction of the Vice President of Student Services.

8.3.2 The operating units specified above shall be expected to comply with applicable College policies and procedures and to use substantially the same sound business practices in their purchasing activities as those followed by the Purchasing Department.

8.3.3 The Athletic Department, in negotiating corporate sponsorships, may elect to offer exclusive rights to suppliers to perform work or provide products to the College athletic venues and athletic department only. These negotiations may eliminate the need to follow normal bidding procedures for related purchases. Athletics must, however, prepare and forward to Purchasing requisitions for the purchase of these goods or services, along with pertinent information regarding the supplier's corporate sponsorship agreement.

8.4 Procurement Limitations and Restrictions

8.4.1 The College shall not make purchases for the personal use of College employees.

8.4.2 The College shall not purchase goods or services from College personnel or from business firms in which College personnel serve as officers or directors or hold a substantial financial interest, unless special procedures are followed to avoid a violation of the Utah Public Officers' and Employees' Ethics Act (Utah Code § 67-16-1 et. Seq.).

8.4.3 Unless specifically approved in writing by the appropriate administrator, orders or commitments for procurement by faculty or staff members shall not bind the College.

8.4.4 Individuals who do not comply with College policy when placing procurement orders may become personally liable to the vendor for the contract price.

8.5 Use of Requisitions

8.5.1 Except as provided in section 8.5.5 below, or section 8.3 above, a requisition shall be submitted to initiate the procurement of supplies and services by the Purchasing Department.

8.5.2 Each requisition should be limited to similar or related items that are known or can reasonably be expected to be available from the vendor.

8.5.3 All equipment, supplies, or services that are intended to be acquired at or about the same time as component parts of a single transaction should be included in the same requisition or series of related requisitions submitted simultaneously. It is improper under the law to divide or split procurement transactions into small units that are artificially devised to avoid the bidding requirements and other procedures applicable to larger unit transactions.

8.5.4 Requisitions submitted to Purchasing will result in the encumbrance of departmental funds only upon issuance of a purchase order.

8.5.5 Items or services not requiring a requisition include:

8.5.5.1 Payroll

8.5.5.2 Travel

8.5.5.3 Petty cash purchases under $75. (See Policy 6-7).

8.5.5.4 Purchases from the Bookstore under $500, Food Service purchases, purchases under $500 where a purchasing card has been used and purchases under $300 where a "mini-purchase order" has been used.

8.5.5.5 Purchases approved for the Request for Payment. Check Request Forms are to be used to request payment for goods or services where obtaining an invoice would be impossible.

8.6 Mini Purchase Order Forms and Purchasing Cards

8.6.1 Mini Purchase Order Forms are used for pre-approved College purchases not to exceed $300.

8.6.1.1 Requires the appropriate budget administrator’s approval.

8.6.2 Purchasing Cards are used for pre-approved College purchases not to exceed $500.

8.7 Purchases

8.7.1 All advertising costs become part of the purchase price of an item.

8.7.2 Purchases of goods and services may be effected by the Purchasing Department (the Director or Purchasing Department designee) within the following guidelines:

8.7.2.1 Non-Contract Purchases (all purchases not included in Contract Purchase guidelines)

8.7.2.1.1 Purchases under $3,000 may be placed at the discretion of the Director of Purchasing.

8.7.2.1.2 Purchases between $3,000 and $9,999 must be bid either verbally or in writing from at least three vendors.

8.7.2.1.3 Purchases between $10,000 and $19,999 must be bid in writing from at least three vendors.

8.7.2.1.4 Purchases $20,000 and over require a bidding process and must be advertised in a newspaper with statewide circulation.

8.7.2.2 Contract Purchases (all purchases involving improvements to either land or buildings)

8.7.2.2.1 Purchases under $5,000 may be placed at the discretion of the Director of Purchasing.

8.7.2.2.2 Purchases between $5,000 and $9,999 must be bid either verbally or in writing from at least two vendors.

8.7.2.2.3 Purchases between $10,000 and $29,999 must be bid in writing from at least three vendors.

8.7.2.2.4 Purchases $30,000 and over require a bidding process and must be advertised in a newspaper with statewide circulation.

8.8 Restricted and Special Procurement

8.8.1 General Fund Acquisitions that Require Special Approvals

8.8.1.1 Repairs to and/or replacement of personal property (except automotive equipment) damaged while its owner is engaged in College business may be procured with the approval of the appropriate budget administrator.

8.8.1.2 Organization or association memberships paid from College-controlled funds may be procured only if necessary to meet program needs or to secure other benefits for the College, and must be approved by the appropriate budget administrator and the President.

8.8.2 Acquisition of Surplus Government/College Property

8.8.2.1 Information regarding the availability of surplus property may be obtained from the Purchasing Department. Also see Policy 6-10, Surplus Property.

Other revisions:

05/04/01
11/04/02