Purchasing 101

Procurement ServicesAbe Reising

Updated 3.26.15

Agenda

• Purchasing Thresholds & Methods

• Bidding & Methods

• Contracts & Contract Review

• Purchasing Flow-Chart

• Additional Resources

Purchasing Thresholds & Methods

• Under $2,500 – ProCard– Invoice to AP– Voucher Check– Reimbursements

• Over $2,500– Purchase Order required– Quote or estimate required– Purchase Order must be approved before

product/service is ordered

Additional Thresholds• Over $25,000

– Competitive bids required– Bid Documentation Form completed

• Over $50,000– Legal review required, and is initiated by Procurement

• After-the-Fact (ATF) Reporting– Data shared with executive areas– Annual goal of <5%

Special Situations

Additional consideration should be given to:

– Technology • PC/laptops standards• Network based software• +$10,000

– Gift purchases (e.g. gift cards, gifts, other taxable income)

– International payments– Crossing fiscal years– Conflicts of interest– Facilities

Bidding• Required for purchases or contracts over $25,000

– Minimum of 3 quotes required, must submit copies of all quotes– Whole contract, not just phases– Ensure a fair process and no conflicts of interest– Buyers are experts within their categories, let them help!

• Preferred vendors exempt– Full list on website

• Exemptions– Must be requested via Procurement Services– Exemption memo, details exemption reasons

• Bid Compliance Reporting– Monthly reporting on non-bid compliance to executive areas– Annual goal <1%

Conducting a Bid• Acceptable ways to bid a good/service

– Quotes– Estimates– RFP

• Evaluating vendors– Price– Product/service/quality– Terms– Timeframe

When is a Contract Required?

• Services over $1,000 in value– Goods orders require a contract if over $50k or “Special Risk”

• Involves any “Special Risk”

“Special Risk”

• Intellectual property (logos, marks, artwork, symbols, or copyrighted materials)

• Indemnify or insure an outside party;

• Off-campus educational programs or activities (international affiliation agreements/grants, study abroad contracts, and student internship/service-learning contracts)

• Private or confidential information (information protected by FERPA, HIPAA, Gramm-Leach-Bliley) 

• Significant risk or liability.  

Form Contracts (OGC)• Professional Services Contract (consultants)• Performance Agreement (band, performer)• Master Service Agreement (multiple projects, longer period)• Honorarium Agreement (guest lecturer)• Many more…

https://generalcounsel.depaul.edu

Contract Review• Enter requisition prior to a signing any contract

• Try to use OGC Form Contract to simplify process

• Read the contract, especially if provided by the vendor

• Procurement is here to help determine if a contract requires further review

Contract Review

• Once notified that you are able to sign, all university contracts must be signed on behalf of “DePaul University”

• Only Officers and a limited number of “Specific Designees” authorized by the Officers may sign contracts – (OGC maintains authority list)

• Send a copy of the signed contract to the Procurement buyer

• Requisition will be approved

Purchasing Flow-Chart

Procurement Resources

Procurement Services Website

http://procurement.depaul.edu

– Purchasing processes– eProcurement demos– Preferred vendor list– News– Forms– Demon Discounts (personal discount program)

– Salvage Store (used items for personal purchase)

Additional Resources• University Policies and Procedures

http://policies.depaul.edu

• Office of the General Counselhttp://generalcounsel.depaul.edu/Contract Review & Standard Contracts

• Office of Sponsored Programs and Research (OSPR)http://ospr.depaul.edu Grant Assistance