Purchasing Policy and Procedures 5 - Methods of Procurement

Methods of Procurement

Methods of Procurement

All procurement of goods and services must comply with the established purchasing methods as defined below. Employees who procure goods or services and fail to follow the policies described below should be prepared to accept full responsibility for the payment for those goods and services.

1. Purchase Order (PO) - A PO is the preferred method of purchasing goods and services. Presenting a PO to a supplier constitutes a legal offer to purchase products and services, and clearly establishes deliverables such as types, quantities and prices prior to the actual delivery of the goods and services. Acceptance of a PO by the seller typically forms a contract between the buyer and the seller and no such contract exists until the PO is accepted. There are three types of PO's:

1.1 Standard PO - Uses one PO number for each purchase from a supplier and lists specific items or services to be purchased, prices and delivery dates
1.2 Blanket PO - Uses one PO for multiple purchases from the same supplier, typically used to cover long term service or maintenance agreements, as well as, standing orders for goods or services, will encumber a budget and therefore should be established to cover a period of time (not to cross fiscal years) and a maximum dollar value (typically by semester)
1.3 Emergency PO - True emergencies do exist. Emergencies are defined as circumstances or situations beyond anyone's control, such as major facility failures, damages due to disaster, or purchases necessary to address immediate public health, safety or security issues. In these instances, Purchasing will expedite orders as quickly as possible. Once an emergency PO number has been issued, the purchase may proceed.

2. Purchasing Card (P-Card) - The P-Card should be used primarily for travel, however, limited purchases at retail locations for emergency supplies, or on secure websites for goods and services where a PO is not accepted are allowable. Cardholders must adhere to the individual card transaction limits, the policies outlined in the P-Card Manual,this Purchasing Policy and the Purchasing Product Matrix.

3. Direct Pay Request - A direct pay request is submitted directly to Accounts Payable (AP) for payment for goods and/or services obtained without the use of a Purchase Order or the P-Card. Consult the Purchasing Product Matrix to determine if a specific purchase may be direct paid.

4. Reimbursements - Occasionally it is necessary to purchase an item using personal funds and then request reimbursement from the College. This includes employee, Board of Trustees member and non-campus advisor reimbursements, as well as, non-employee travel reimbursements. This is acceptable only under the following conditions

4.1 The individual does not have a College issued P-Card (If an employee has a college issued P-Card, it must be used.)
4.2 The College issued P-Card does not work
4.3 The College issued P-Card is not practical to use (For example, certain travel related expenses such as parking meters or tips for baggage handling.)
4.4 The items purchased are goods, not services or honorariums
4.5 Receipts must be submitted with the request
4.6 Travel related expenses are reimbursed only after the travel has been completed