Procurement and Contract Services

000 Introductory Material

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised: 09/22/11

001: Introduction

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised:  11/27/12

 

The Procurement and Contract Services (PaCS) Policies and Procedures Manual was created by integrating the former Procurement, Contracts and Construction Contracting Policies and Procedure Manual with newly created policies and procedures.  In 2008, new Oregon Administrative Rules were implemented by the Oregon University System (OUS), necessitating a major revision of the PaCS policies and procedures.

The PaCS Policies and Procedures Manual provides the formal guidance for procurements, construction contracts and other contracts with the exception of those contracts outside of PaCS purview such as contracts managed by Real Property, Human Resources, Risk Management, Research, and the Office of Sponsored Programs.  The PaCS Policies and Procedures Manual is managed by the Procurement and Contract Services Department.  PaCS provides OSU colleges and departments with efficient processing of procurement and contract documents.  The policies and procedures contained in this manual reflect the requirements of applicable state and federal statutes, Oregon Administrative Rules, guidance from OUS Internal Audit and good business practices.  The Director of Business Services is responsible for the interpretation and administration of PaCS policies and procedures.

Corrections, changes, or suggestions regarding the PaCS Policies and Procedures Manual should be communicated to the PaCS Manual Coordinator, (541) 737-2067.  If you encounter a situation not covered in this manual, contact the Chief Procurement Officer at (541) 737-2067.

In the event of an inconsistency or conflict, applicable law and the State Board of Higher Education policies supersede University policies and University policies supersede college, department or subordinate unit, policies, or guidelines.

The University reserves the right to add, amend, or revoke any of the contained rules, policies, regulations, and instructions or incorporate additional ones, with or without notice, as circumstances or the good of the University community may require.

This online manual replaces earlier printed versions, which are no longer provided nor distributed.  A printout of this manual and each change to this manual, created from the original text source for the online version, is retained permanently as an official record at University Archives and is available for inspection.  Printouts of all revisions to online manuals will be similarly available.

002: Definitions

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised:  11/27/12

  • Y
  • Z

A

Addendum or Addenda

An addition to, deletion from, a material change in, or general interest explanation of a Solicitation Document.

Amendment

A document which changes a Contract except for a construction related Contract.  See Change Order below.

Analyst

Procurement analyst working in the Procurement and Contract Services department within Business Services.

Architect/Engineer (A/E) (Construction Contract)

The person appointed by the Owner to make drawings, Specifications and, to provide Contract administration of the Work contemplated by the Contract.

 

B

Bid

An Offer submitted in response to an Invitation to Bid.

Bidder

An Entity that submits a Bid in response to an Invitation to Bid.

Board

The Oregon State Board of Higher Education.

Business Center

Implemented business centers, each within seven thematic areas of OSU which are centralized and delegated certain business functions.

Buyer Code

As utilized in the Banner Financial Information System (FIS) Buyer Codes are used on FIS POs to identify the billing contact and address of an OSU Department or administrative group

 

C

Capital Lease

A Lease of personal or real property which is non-cancelable, meets one or more of the four capitalization criteria in Section .200.A of Oregon University System Fiscal Policy Manual policy, and meets or exceeds the $5,000 capitalization threshold at the inception date of the Lease.

Certificate of Insurance (COI)

A document issued by an insurance company listing the effective dates of the insurance policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability.

Certified MWESB: 

An MWESB certified by the Oregon Business Development Department (OBDD).

Change Order (Construction Contract)

A written change to a construction Contract or Supplement required to document a change in the quantity or type of services or materials to be provided under the construction Contract.

Closing

The date and time specified in a Solicitation Document as the deadline for submitting Bids or Proposals.

Code of Ethics (OAR 580-061-0000)

Ethical guidelines implemented by the Oregon University System in OAR 580-061-0000.  The Code of Ethics applies to Oregon University System employees in relation to OAR Chapter 580, divisions 60, 61, 62, and 63.

Competitive Process

The process of procuring goods and services and construction-related services by fair and open competition, under varying market conditions, with the intent of minimizing opportunities for personal preferences and assuring that Contracts or Purchase Orders are awarded equitably and economically using various factors in determining such equitability and economy.

Construction Manager/General Contractor (CM/GC)

A method of construction contracting whereby the construction Contractor is selected based on qualifications early in the design process in order to provide construction management services as well as perform as the general Contractor for the project.  The CM/GC works with the design team to provide constructability review, construction estimates as the project is developed, and propose alternate materials or method options in order to maintain quality while reducing costs.

Consultants

Architects, Engineers, planners, land surveyors, appraisers, managers and related Professional Consultants.

Contract

A written agreement for sale or other disposal, or a purchase, Lease, rental, or other acquisition, by an Institution of personal property, services, including personal services, Public Improvements, Public Works, minor alterations, or ordinary repair or maintenance necessary to preserve a Public Improvement. "Contract" does not include Grants. "Contract" may also mean a Purchase Order, Price Agreement, or other Contract document.

Contract Officer

The Vice President for Finance and Administration or those delegated by the Vice President for Finance and Administration as Contract Officers.  Contract Officers have the authority to negotiate and execute Contracts on behalf of OSU.  Institution Contract Officers are delegated officially in writing.

Contractor

The Entity awarded the Contract to furnish goods, services or Work to OSU.

 

D

Days

Calendar days, including weekdays, weekends, and holidays, unless otherwise specified.

Design/Build Contract

A form of construction Contract whereby both the design and construction is contracted through one legal Entity. 

Direct Costs

The cost of materials, labor, equipment, and machinery required for execution of the Work; and the additional costs of field personnel directly attributable to the Work.

Disadvantaged Business Enterprise (DBE)

A small business concern as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

Donation (non-construction related)

Financial or in-kind support to OSU that does not create an obligation or expectation on OSU.  No Contract or agreement is necessary for a Donation.  The Donation may require acknowledgment from OSU Foundation.

 

E

Emergency

An unexpected, serious situation that creates a significant risk of loss, damage, interruption of service, or threat to the public health or safety that requires prompt action to remedy the condition.

Emerging Small Business (ESB)

Means an Emerging Small Business as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

Energy Savings Performance Contract

A form of Contract whereby a single Entity is contracted to perform studies of energy usage in a building; make recommendations as to improvements that could be made to improve energy efficiency, including estimated energy savings associated with each option; design and construct the options selected; and guarantee achievement of the projected savings or payment of the difference between actual energy costs and the projected savings over a pre-determined period of time.

Entity

A natural person capable of being legally bound, sole proprietorship, corporation, partnership, limited liability company or partnership, limited partnership, profit or nonprofit unincorporated association, business trust, two or more persons having a joint or common economic interest, or any other person with legal capacity to contract, or a government or governmental subdivision.

 

F

Final Completion

The final completion of all requirements under the Contract, including Contract Closeout and the final payment and all Retainage, if any, released.

Finance Lease

See Capital Lease

F.O.B. (Free on Board)

Delivery to and placing on board a carrier at a specified point; determines the point at which title for the shipment passes from Vendor to purchaser (Origin or Destination) and designates who pays freight charges (Freight Collect, Freight Prepaid and Allowed or Freight Prepaid and Added).

 

G

General Conditions

The document which sets out terms and conditions of the construction Contract or construction related Purchase Order. 

Grant

An agreement under which OSU receives or provides money, property or other assistance for the purpose of supporting or stimulating a program or activity and in which no substantial involvement by the grantor is anticipated in the program or activity other than monitoring and compliance with grant conditions.

 

H

Historically Underrepresented Business (HUB): 

Certified and self-identified MWESBs and firms certified federally or by another state or entity with substantially similar procedures to the State of Oregon.

I

Independent Contractor

A person who provides services for remuneration and who, in the provision of the services:

  1. Is free from direction and control over the means and manner of providing the services, subject only to the right of the person for whom the services are provided to specify the desired results;
  2. is customarily engaged in an independently established business;
  3. Is licensed under ORS chapter 671 or 701 if the person provides services for which a license is required under ORS chapter 671 or 701; and
  4. Is responsible for obtaining other licenses or certificates necessary to provide the services.

Institution or Institutional

An OUS university under the authority of the Board, including the Chancellor's Office.

Interagency Agreement

An agreement between two different agencies of the State of Oregon.

Interdepartmental Agreement

Interdepartmental agreements are agreements between two or more departments of OSU. 

Intergovernmental Agreement

An agreement between two different governmental agencies.

Invitation to Bid (ITB)

A Solicitation Document for the solicitation of competitive, written, signed, and sealed Bids in which Specifications, price, and delivery (or project completion) are the predominant award criteria.

Invoice

A form used by Vendors to request payment for goods or services provided.  The invoice will state the description of the item(s) or service(s), price(s) charged, terms of payment, discounts (if any) allowed, freight charges (if any) included and preferably, reference the Purchase Order.

 

J

 

K

 

L

Lease

A legal Contract by which one party gives to another the use and possession of real or personal property for a specified time in exchange for periodic payments.

Lease Intake Form

Document required to be completed and submitted with Purchase Requisition when goods or services are being acquired through a Lease.

Lessee

The party who Leases personal or real property from a Lessor.

Lessor

The owner or owner's representative of the personal or real property that is Leased to a Lessee.

Locum

A person who temporarily fulfills the duties of or who works in the place of the regular doctor when that doctor is absent. These professionals are still governed by their respective regulatory bodies, despite the transient nature of their positions.

 

M

Management Plan

A plan to increase the diversity of a business’ workforce and to subcontract with or purchase from Historically Underrepresented Businesses. 

Memberships

Requests by departments or individuals to join a specific organization as a representative of Oregon State University.

Memorandums of Understanding (MOU)

A memorandum that provides for a mutual undertaking between two or more parties without detailing the specifications of the undertaking.  All parties are mutually interested in the aims and benefits, even though there may be a difference in the scope of that interest.

Minority Business Enterprise (MBE)

Minority Business Enterprise as defined in ORS 200.005 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

 

N

Notice to Proceed

Official notice to begin Work given to the Contractor by PaCS when all required documents pertaining to a Contract have been received and approved, and the Contract has been executed.

 

 

O

Offer

A Bid, Proposal, or other Written response, binding on the Entity submitting it in response to a Solicitation Document

Opening

The date, time, and place announced in a Solicitation Document for public opening of Bids or Proposals.

Operating Lease

A Lease of personal or real property that does not meet the Oregon University System Fiscal Policy Manual policy 200.A criteria for a Capital Lease.

Oregon Administrative Rule (OAR)

Agency rules adopted under the Oregon Administrative Procedures Act.

Oregon Revised Statues (ORS)

Statues of the State of Oregon.

Oregon University System (OUS)

The Oregon public higher education system that oversees and provides services to Oregon’s seven state Institutions(Eastern Oregon University, Oregon Institute of Technology, Oregon State University, Portland State University, Southern Oregon University, University of Oregon and Western Oregon University). 

Owner

The State of Oregon acting by and through the Oregon State Board of Higher Education, in its own right or on behalf of one of it’s Institutions as identified in the Solicitation Document, also known as the Oregon University System (OUS).

 

P

PaCS

Procurement and Contract Services

Payment and Performance Bonds

Legal documents issued by a Surety which guarantee payment for all Work, materials, and labor required to complete construction of a contracted project, should the Contractor become insolvent or for some other reason be unable to complete the Work or fail to pay suppliers and/or workers amounts required by the Contract. 

Personal Service

Service provided by an individual or company with specialized skills, knowledge, and resources in the application of technical or scientific expertise, or the exercise of professional, artistic, or management discretion or judgment.

Price Agreement

A nonexclusive agreement in which the Contractor agrees to provide specific items or services to an Institution at a set price during a specified period of time.

Professional Consultant

Architects, Engineers, planners, land surveyors, appraisers, construction managers and related Professional Consultants for the design, evaluation and management of construction projects or real property.

Proposal

A binding competitive offer submitted in response to a Request for Proposals.

Proposer

An Entity who submits a Proposal in response to a Request for Proposals

Public Improvement

A Contract for a Public Improvement. "Public Improvement Contract" does not include a Contract for Emergency Work, minor alterations, or ordinary repair or maintenance necessary to preserve a Public Improvement.

Public Work

Defined by the Bureau of Labor and Industries (BOLI) in ORS 279C.800(6).

Punchlist

The list of Work yet to be completed or deficiencies which need to be corrected in order to achieve Final Completion of the Contract.

Purchase Order (PO)

The Banner Financial Information System (FIS) Purchase Order or other written order that specifies goods or services ordered from a specific Vendor, and the price, terms, and conditions of that order.

Purchase Requisition

A term used to indicate a request for goods or services made by use of a purchase requisition form.

 

Q

Qualified Pools (Procurement)

Established under the Alternative Processes in OAR 580-062-0010(6), Qualified Pools are Vendors that have been pre-qualified, through a Request for Qualification process, to provide Services.

Qualified Rehabilitation Facility (QRF)

A nonprofit activity center or rehabilitation facility authorized by the Oregon Department of Administrative Services to provide goods or services.

 

R

Request for Information (RFI)

A Solicitation Document seeking information regarding products or services that an Institution is interested in procuring.

Request for Qualifications (RFQ) (Construction)

A document which provides a general description of a proposed project; indicates the type of Consultant or Contracting services needed; and requests each prospective respondent to provide a written response setting forth the respondent's specific experience and qualifications of performing the type of services required.

Request for Qualifications (RFQu) (Procurement)

A Solicitation Document utilized to establish a list of Contractors who have certain qualifications such as experience, licensing or certification.  Typically issued in order to pre-qualify potential Contractors from which to solicit Bids or Proposals. 

Request for Quotes (RFQ) (Procurement)

An informal Solicitation Document whereby quotes are submitted.

Request for Proposals (RFP) (Construction)

A document calling for qualifications and/or Proposals for specific services, and may be used for both professional and construction services.

Request for Proposal (RFP) (Procurement)

A solicitation of written, competitive Proposals or Offers, to be used as a basis for making an acquisition, or entering into a Contract when Specification and price will not necessarily be the predominant award criteria.

Responsible Bidder or Proposer

An Entity that demonstrates their ability to perform satisfactorily under a Contract by meeting the applicable standards of responsibility outlined in OAR 580-061-0130.

Responsive Bid or Proposal

A Bid or Proposal that substantially complied in all material respects with the criteria outlined in a Solicitation Document.

Retainage

A sum, not to exceed 5% of the total value of Work completed in the pay period, withheld from a construction Contractor’s monthly pay request.

Retainer Contracts (Construction Contracting)

A Contract by which, pursuant to a Request for Proposals or Invitation to Bid, multiple Contractors are authorized to provide specific supplies or equipment to or perform specific services for an Institution(s). Contractors on a Retainer Contract may provide goods or services on a non-exclusive and as-needed basis.

 

S

Ship-To Code

As utilized in the Banner Financial Information System (FIS) Ship-To codes are used on FIS POs to identify the shipping address of an OSU Department or administrative group.  

Solicitation Document

An Invitation to Bid, Request for Proposals, Request for Quote, Request for Qualifications, Request for Information, or other written document issued by OSU, including all documents incorporated by reference.

Sole Source

The only vendor reasonably available to provide a particular product or service.

Specification

Any description of the physical or functional characteristics, or of the nature of a supply, service or construction item, including any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery and the quantities or qualities of materials to be furnished under the Contract. Specifications generally will state the result to be obtained and may, on occasion, describe the method and manner of doing the Work to be performed. 

Subcontractor

A person having a direct Contract with the Contractor, or another Subcontractor, to perform one or more items required under the Contract.

Substantial Completion (Construction)

The date when the Owner accepts in writing the construction as having reached that state of completion when it may be used or occupied for its intended purpose.  Substantial Completion of facilities with operating systems occurs only after thirty (30) continuous Days of successful, trouble-free operation of the operating systems.

Supplement (Construction)

An Amendment to a consulting Contract, adding specific services for an agreed-upon fee.

 

T

Tax ID Number

A number assigned by the Internal Revenue Service identifying an individual or company or agency and its tax status.

Total Contracted Project Value

All purchased/contracted costs specifically applicable to a project.  If a piece of equipment (fume hood, furniture, carpet, etc.) is purchased specifically for the project, and a Contractor is hired to do the electrical Work, those costs are applied to the “total contracted project value”.  OSU staff labor to do painting or carpentry would not apply to the “total contracted project value”.

Trade Services

Service provided by an individual or company with skills, knowledge, and resources in the application of a manual or mechanical trade labor, including but not limited to, services such as janitorial, food service, farm labor, lumberman, electricians or building system maintenance.

 

U

Unit Administrator

Department head, division head, director, dean, manager, vice provost, provost, vice president or president authorized to determine and assign duties to University employees within a certain unit.

Used Property

Property or equipment used by a previous owner or user for a period of time and recognized in the relevant trade or industry at “used” at the time of University purchase.

 

V

Vendor

Defines a business or individual as a seller of goods or services to Oregon State University.  

 

W

Woman Business Enterprise (WBE)

A business that meets the eligibility standards set out in OAR 445-050-0030 and that maintains a current certification issued by the Oregon Department of Consumer and Business Services.

Work

The furnishing of all materials, equipment, labor and incidentals necessary to successfully complete any individual item or the entire Contract and the timely carrying out and completion of all duties and obligations imposed by a Contract.

004: Frequently Asked Questions

Procurement and Contract Services Policy & Procedures Manual
Section 000: Introductory Material
Effective: 1/04/2010
Revised: 09/22/11

Currently Under Development

100: Purchasing and Contract Ethics

Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised:  11/20/2012

 

PURPOSE:

To direct OSU faculty, administrators and staff in ethical and responsible procurement practices ensuring compliance with applicable laws, regulations, policies and procedures.

BACKGROUND:

OSU employees are expected to uphold the highest ethical standards in their relationships with one another, with students, with the wider community and in all of their professional pursuits.  Inherent in this responsibility is the obligation to follow the laws, regulations, policies and procedures that govern ethical and responsible procurement practices while exhibiting integrity expected of all employees.  Specifically, the regulations guiding employees are those contained in the Oregon Government Ethics Law, ORS 244 and the Code of Ethics, OAR 580-061-0000.  This policy will address ethical and responsible procurement and public contracting practices.

101: Employee Ethical Conduct

Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised:  12/24/2013

 

101-001: Financial Gain or Avoidance of Financial Loss

Employees are prohibited from using or attempting to use their positions to gain financial benefit or to avoid a financial cost for themselves, a relative, a member of their household or their business if the opportunity is available only because of the position held by the employee.

Employees with purchasing authority should not engage directly or indirectly in a personal financial transaction that primarily relies upon information obtained through University employment and is not otherwise common knowledge. 

Except when purchasing from or contracting with OSU employees as described in 101-002, it is inappropriate for employees to profit from OSU related business such as obtaining credit card bonuses obtained by purchasing items for OSU business on a person’s personal credit card and requesting reimbursement, thus keeping the bonus for personal financial benefit.

 

101-002: Purchasing from or Contracting with OSU Employees, Relatives of OSU Employees or Members of the OSU Employee’s Household

Any purchase or contract for the provision of goods or services, regardless of the dollar value, is subject to the provisions of this policy.  OSU may only purchase from or contract with OSU employees, relatives of OSU employees (relative as defined in ORS 244) or members of the OSU employee’s household if all of the following requirements are met:

a)    The purchase or contract is NOT for the Department, College or Administrative Unit that the OSU employee is currently working for or has worked for as an employee in the previous 6 months;

b)    The goods or services sought for purchase or contract are substantially different from the work the employee performs in their employment with OSU;

c)    OSU employee must complete the “PaCS Disclosure of Real or Potential Conflict of Interest” form and submit to PaCS for review.

d)    The OSU employee, relative of an OSU employee or member of the OSU employee’s household must be determined to be an Independent Contractor for the services being proposed;

e)    The OSU employee, relative of an OSU employee or member of the OSU employee’s household must have a federal tax identification number separate from their social security number; and

f)    PaCS must conduct a competitive solicitation in accordance with OAR 580-062-0020 (2) or conduct a sole source process in accordance with OAR 580-062-0020 (8). 

PROCEDURE:

1.    Departments or Business Centers must submit a Purchase Requisition or Personal Services Contract to the Procurement and Contract Services Office indicating that they wish to purchase or contract for goods or services from an OSU employee, relative of an OSU employee or member of the OSU employee’s household. 

2.    Procurement and Contract Services will conduct the competitive solicitation or a sole source process as appropriate and in accordance with OAR.

3.    Purchases or contracts that violate this policy will be considered an unauthorized purchase or contract and must follow the process for  Unauthorized Purchases or Contracts contained in PaCS 203.  Violations involving federally funded projects are subject to Conflict of Interest Violations Pertaining to Use of Federal Funds in PaCS 104-003.

 

101-003: OSU Employee Honorariums Guideline

OSU employees may not solicit or accept honorarium in excess of $50 for which the honorarium are solicited or received in connection with the official duties of the OSU employee.  OSU employees may solicit or receive honorariums in excess of $50 for which the honorarium is received in connection with a private activity of the OSU employee.  This does not authorize OSU to provide honorariums to OSU Employees.

 

101-004: Other State Employees Honorarium Guideline

OSU may not Contract with or pay an honorarium in excess of $50 to other State of Oregon employees for which the honorarium is being paid in connection with the State of Oregon employees official duties.  State of Oregon employees may solicit or receive honorariums in excess of $50 for which the honorarium is received in connection with a private activity of the State of Oregon employee.

 

101-005: Personal Purchases using OSU Funds

Employees may not make personal purchases using OSU funds.

 

101-006: Personal Purchases using OSU Contracts

OSU does not include discounts in OSU Contracts for purchases made by employees for their individual personal use.  Vendors, who are also OSU Contractors, may extend offers, special discounts or other incentives to employees.  Employees may only make personal purchases provided the following circumstances exist: 

a)    the product or service is available to other employee groups (in both private and public sector) on the same terms and conditions, and not exclusively to employees of the public agency; and

b)    the price of the goods or services are not better than the public agency has contracted.  Any more favorable arrangement than the public agency’s Contract may be a conflict of interest.

102: Interaction With Vendors

Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised: 08/05/2011

 

102-001: Vendor Gifts or Entertainment

An employee, relative or member of the household may not solicit or receive gifts with an aggregate value in excess of $50 during a calendar year, or receive payment for expenses for entertainment from a single source that has an interest in the agency in which the public official works.  Additionally, employees may not accept a favor, gratuity or special consideration from Vendors and Contractors doing or seeking to do business with the University in order to influence a purchase or secure a Contract.

 

102-002: Vendor Employment Promises

Employees may not solicit or accept the offer, pledge or promise of future employment based on an understanding that the employee will influence a purchase or Contract award for their future employer while still employed by OSU.  Employees involved in the preparation, solicitation, evaluation, award or approval of a solicitation or execution of a Contract may not be employed by the Contractor for a period of one (1) year.

 

102-003: Impartiality

Employees will conduct themselves and represent OSU in a manner which exhibits fair and impartial treatment to all Vendors.

 

102-004: Endorsement

OSU does not endorse goods or services offered by Vendors without entering into an endorsement agreement executed by a Contracts Officer detailing the terms and conditions under which such endorsement will be allowed.  Employees shall refrain from representing or implying that OSU will endorse a Vendor’s goods or services outside of an endorsement agreement.

103: Ethics in Purchasing and Contracting

Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised: 01/11/2013

 

Employment at Oregon State University is a public trust.  The ethical standards that OSU employees must maintain encompasses the highest standards of honesty, integrity, impartiality and professionalism in conducting business on behalf of the University.  As employees responsible for maintaining the integrity of the solicitation, procurement and contracting processes and as stewards of the University and taxpayers dollars it is especially important that OSU employees avoid even the perception of a conflict of interest.

103-001: Ethics Statement for Employees in the Procurement Process

Under Division 61 of the Oregon University System (OUS) Procurement and Contracting Code, OAR 580-061-0000 persons employed by Oregon State University (OSU) who purchase goods and services, or are involved in OSU’s procurement process must, on an annual basis, submit a statement that the employee has reviewed and will comply with the OUS Code of Ethics.  OSU employees not involved in the procurement process as part of their routine duties, but who will be involved in a particular project must submit a statement that the employee has reviewed and will comply with the OUS Code of Ethics at the commencement of their involvement in such project.  Employees may utilize the OUS online tool to review the OUS Code of Ethics and submit a statement that the employee has reviewed and will comply.

PROCEDURE:

1.    Access the OUS online tool at: http://www.ous.edu/qapp/ethics/

2.    Enter your first name, last name, email address, institution and faculty/staff ID.

3.    After logging in, thoroughly read the OUS Code of Ethics.

4.    If you agree to the OUS Code of Ethics, scroll to the bottom of the screen and click on “I agree” to complete the process.

5.    Once submitted, the system sends an automated email receipt of completion to the employee with a copy to the OSU Chief Procurement Officer.

 

103-002: Authority to Purchase or Enter into Contracts

Employees may not procure goods or services or enter into Contracts outside of the employee’s budget authority, purchase authority, Institutional authority or Contract signature authority.

 

103-003: Purchase/Payment Fragmentation

Employees shall not fragment purchases or payments in order to avoid following a regulation, policy or procedure.  Anticipated and estimated purchases shall be aggregated whenever possible to accurately reflect purchase totals and gain economies of scale as available with quantity purchases.

 

103-004: Process Circumvention

Employees may not circumvent regulations, policies or procedures by using personal funds for the purchase and then seeking reimbursement or by using an alternate funding source or contracting method which will be indirectly reimbursed or paid for by OSU.

 

103-005: Bid Shopping

Employees involved in the procurement process will not disclose a Vendor’s price to competitors in order to have a competitor beat the Vendor’s price.  Price results may only be given to Vendors once the final selection is made.

 

103-006: Collusion

Collusive behavior will not be tolerated from employees or Vendors.  Collusive behavior includes but is not limited to, making agreements or understandings between two or more persons to commit a fraudulent, deceitful, unlawful or wrongful act in order to provide an unfair advantage.

 

103-007: Document Fabrication

Altering, fabricating, destroying, misrepresenting, or forging Contracts or documents for personal gain or an unfair advantage is prohibited.

104: Conflict of Interest

Procurement and Contract Services Policy & Procedures Manual
Section 100: Purchasing and Contract Ethics
Effective: 01/04/2010
Revised: 08/05/2011

 

104-001: Declaration of Conflict or Potential Conflict of Interest

The procurement of goods and services at OSU must be free of the undue influence of outside interests. There may be situations in which financial or other personal considerations may compromise, or have the appearance of compromising, an employee's professional judgment in the execution of any part of the procurement  or contracting process.  Any conflicts or potential conflicts of interest regarding the procurement or contracting process must be reported to PaCS before making the procurement or executing the contract.  Conflicts of Interests regarding the research integrity of a research project or proposal are managed through the Research Office process.  Their decision on the conflict of interest relating to research integrity does not mitigate conflicts of interest in the procurement or contracting area.

PROCEDURE:

1.    Actual or potential conflict of interests may be resolved by full disclosure as well as making appropriate arrangements that clearly mitigate the conflict of interest.

2.    Employees should promptly disclose any real or potential conflicts of interest by filling out the “PaCS Disclosure of Real or Potential Conflict of Interest” form and submitting to PaCS for review and advice on mitigating the conflict of interest.

3.    PaCS will review the disclosure and determine if there is a conflict of interest and if the conflict of interest can be mitigated in order to eliminate the conflict.

4.    In some instances, actual or potential conflicts of interest may need to be referred to OSU Office of General Counsel.

 

104-002: Conflict of Interest for Selection Committee Members

Employees engaged as a Selection Committee Member must first execute the OUS Conflict of Interest Statement before participating in the evaluation or selection of a Contractor or Vendor under a Formal Procurement process.

 

104-003: Conflict of Interest Violations Pertaining to Use of Federal Funds

In compliance with all applicable Code of Federal Regulations code of conduct requirements, OSU standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the federal fund recipient. 

PROCEDURE:

In cases where it is determined that there has been a violation of PaCS Policies and Procedures pertaining to Conflicts of Interest PaCS will collaborate with the OSU Office of General Counsel, Office of Research Integrity and Office of Post Award Administration, and in some cases, the Human Resources Department in order to work with the Dean or Department head responsible for overseeing the college or department employee.  In consultation with these departments the Dean or Department head will determine an appropriate disciplinary action for the employee responsible for the violation.  Pursuant to Oregon Administrative Rules applicable to violations of university policy, (and/or a collective bargaining agreement in the case of represented employees) personnel may be disciplined for cause, including warning, reprimand, or a more severe sanction for cause, up to and including termination.

 

104-004: Segregation of Procurement and Accounting Functions

Administrators should structure the entire function and cycle of procurement so that purchasing, purchasing approvals and payment are adequately segregated to ensure ethical practices.  These duties should be divided among departmental personnel so that there is a distinct separation of those duties.  Separating the functions within the cycle of procurement should provide a series of checks and balances of all facets of purchasing.  It is important that administrators are aware of the purchasing function within their department and provide oversight and review of this function, ensuring the continued separation of purchasing duties.

 

ADDITIONAL INFORMATION:

Oregon Revised Statute 244

Oregon Administrative Rule 580-061-0000

OUS Financial Irregularity Policy

Code of Federal Regulations Title 40 Part 30.42

200: Authority and Records

Procurement and Contract Services Policy & Procedures Manual
Section 200: Regulations and Authority
Effective: 01/04/2010
Revised: 11/20/2012

 

Purpose:

To explain the regulations covering Oregon State University Purchasing and Contracting and the authority delegated.

Background:

The State of Oregon governing laws are contained in the Oregon Revised Statutes (ORS).  The Statutes are considered the primary authority for the State and provide a basic framework on which the Oregon Administrative Rules (OAR) are based.  This manual only covers a few of the relevant points from various statutes dealing with purchasing and contracting.  For access to the complete statutes, visit the Oregon State Legislature website at http://www.leg.state.or.us/ors/.

In public procurement, most State of Oregon public entities are guided by ORS 279A, B & C.  However, ORS 351 grants the Oregon University System (OUS) separate authority and releases OUS from following most of ORS 279A, B & C.  This is why OUS and its institutions have purchasing rules that differ from other State of Oregon agencies, counties, municipalities, or other public entities. 

OUS has created OAR 580 divisions 60 through 63, which govern all of the OUS purchasing activities.  Although OUS has its own OAR for purchasing goods and services, other sections of ORS and OAR may still apply such as those statutes and rules pertaining to:  Contracting with Public entities outside of Oregon, Tort Limits, Public Records, Qualified Rehabilitation Facilities, Tax Certification, Prevailing Wage Rates, and Financing.  The diagram below illustrates the hierarchy of statutes and rules for Oregon Public Purchasing.

 

hierarchy

Although OUS has its own OAR for procuring goods and services, parts of ORS 279A, B & C and other sections of ORS and OAR still apply to OSU’s purchasing and contracting activities such as regulations pertaining to: Review of Public Contracts, Contracting with Public entities outside of Oregon, Oregon Tort Claim Limits, Oregon Commission for the Blind, Public Records, Qualified Rehabilitation Facilities, and Tax Certification.  This list is not exhaustive, but is provided as an example of some of the other statutes and rules that may apply outside of OAR 580 divisions 60 through 63.

Additionally, federal laws exist that impact OSU purchasing and contracting terms and conditions such as the Family Educational Rights and Privacy Act (FERPA), Health Insurance Portability and Accountability Act (HIPAA) and the Gramm-Leach-Bliley Act (GLBA).  Language could be encountered when reviewing Contracts that requires for the release of student information, individually identifiable medical information, or consumer financial information which may be in violation of federal law.

 

Policy

201: Regulations and Applicability

Procurement and Contract Services Policy & Procedures Manual
Section 200: Regulations and Authority
Effective: 01/04/2010
Revised: 11/20/2012

 

Purchases on behalf of OSU shall be made in accordance with the applicable Federal, ORS, OAR, and PaCS policies and procedures.  It is the responsibility of all persons who purchase goods and services on behalf of the University to be aware of the applicable Federal, ORS, OAR and current PaCS policies and guidelines.  All such persons are expected to uphold the laws, rules and policies guiding the University. 

 

201-001: Funding Sources

All funds within OSU, with the exception of Agency Funds, are subject to the applicable statutes, rules, policies and procedures pertaining to procurement and contracting at OSU no matter what the source of funding.  This policy includes, but is not limited to, funding through E & G, Auxiliary, Research, OSU Foundation or the OSU Agricultural Research Foundation. 

 

201-002: Organizations

OSU can only purchase or contract on behalf of OSU. PaCS cannot purchase or Contract for entities that are not part of OSU. Often Oregon State University or OSU is used in conjunction with entities that have an affiliation with OSU but are not a unit within OSU.  Some examples of entities that are not OSU are:

  • OSU Bookstore is a 501(c) 3 non-profit organization
  • OSU Foundation is a non-profit organization
  • OSU Master Gardner’s Association

PaCS also cannot Contract or make commitments on behalf of students or OSU employees.  When a Contract Officer signs a Contract they do so in their position as an Oregon University System employee for an Oregon University System institution and as such, only have the authority to commit on behalf of OSU. 

202: Authorities

Procurement and Contract Services Policies and Procedures Manual
Section 200: Regulations and Authority
Effective: 01/04/2010
Revised: 3/14/2014

The four authorities relevant to the purchase of goods and services for the University are Budget Authority, Purchase Authority, Institutional Authority and Contract Signature Authority.

 

202-001: Budget Authority

Budget authority is delegated by the Office of the Provost, to the unit/department head or delegated person responsible for a university index and who must approve the expenditure of funds from that index.  Those with budget authority should review and approve that the proposed purchase or Contract has a related business purpose and meets the objectives related to the department’s and OSU’s mission.  They should also insure that there are sufficient funds available to incur the expense for the proposed purchase or Contract.  

 

202-002: Purchase Authority

Purchase authority grants the authority to units identified below to purchase goods and services* within the delegated dollar threshold after approval from the required approver. 

Dollar Threshold Unit Required Approver
Up to $4,999.99 Department Unit Budget Authority

$5000 - $24,999.99

Business Center  Business Center Administrator
$25,000 - $149,999.99 PaCS Unit Budget Authority and Business Center Administrator
$150,000 and above  PaCS

Unit Budget Authority, Business Center Administrator and Dean or Vice Provost

These dollar thresholds are in the aggregate and based on the value of the entire procurement known at the time.  In determining the amount of the procurement, all parts of a single integrated project must be included as well as amounts expended during the initial term and any renewal terms allowed under the Contract.  The amount must not be split in order to avoid using a particular process associated with the dollar thresholds.  If there is a chance that the purchase may exceed the dollar threshold due to additional phases of Work or additional funding, purchase according to the next highest dollar threshold.  Purchases at or above $25,000 must be competitively solicited or advertised as a Sole Source if a Sole Source exists.

* Excludes those purchases that are subject to Bureau of Labor and Industry (BOLI) Prevailing Wage Rates (PWR).  For those purchases there is no delegation of purchasing authority to departments or Business Centers.  See PaCS 504-05 or contact PaCS to determine if a purchase may fall under this exclusion.

PROCEDURE:

1. Unit/Department Purchases up to $4,999.99

Units or Departments have delegated purchase authority for purchases up to $4999.99. Purchases within this range may be made by direct purchase.  However, it is highly recommended that these purchases be competed whenever feasible by obtaining competitive quotes.  This will help realize savings on your purchases by providing Vendors an opportunity to compete on direct purchases.  This delegation does not include the authority to sign agreements or contracts other than the OSU Purchase Order

2. Business Center Purchases between $5,000 and $24,999.99

Business Centers have delegated purchase authority for purchases between $5000 and $24,999.99.  Purchases within this range may be made by direct purchase.  However, it is highly recommended that these purchases be competed whenever feasible by obtaining competitive quotes.  This will help realize savings on  purchases by providing Vendors an opportunity to compete on direct purchases as well as provide opportunities to Minority, Women-Owned, and Emerging Small Businesses that seek to do business with OSU.  This delegation does not include the authority to sign agreements or contracts other than the OSU Purchase Order.  Additional policies and procedures for purchases and payments apply from section PaCS 300 of this Policy and Procedures Manual.

3. Purchases equal to or above $25,000

PaCS is the only department authorized to make purchases equal to or above $25,000.  Purchases at or above $25,000 must be competitively solicited or advertised as a sole source.  Departments should submit a Purchase Requisition form to their appropriate Business Center.  The Business Center will review, sign and send the Purchase Requisition to PaCS for completion of the purchase.  PaCS Analysts will make purchases according to the appropriate policies and procedures pertaining to the type of purchase requisitioned. 

 

202-003: Institutional Authority

Institutional authority is granted from the Oregon State Board of Higher Education to an Institution to apply for and accept, on behalf of the Board, gifts or Grants and to negotiate Contracts.  Pursuant to OAR 580-042-0010, Institutions are delegated this authority so long as they do not result in:

  • Enrollments in excess of those on which budgets have been based;
  • Commitment of funds beyond those available in budgets approved by the Board, or the normal continuation thereof;
  • Development or support of activities inconsistent with the approved mission of the department and/or Institution;
  • Launching of new curricular programs that have not received prior Board approval;
  • Establishing or significantly expanding a clientele for services of an essentially non-research or non-instructional nature.

 

202-004: Contract Signature Authority

Contract signature authority is delegated to Contracts Officers from the Vice President for Finance and Administration to sign specific Contract types on behalf of OSU.  Contract signature authority may not be sub-delegated unless authorized by the Vice President for Finance and Administration. 

Only Contract Officers are authorized to sign and execute Contracts and other written instruments on behalf of OSU.  Any document required to be signed on behalf of OSU, regardless of dollar value or type of document, must be signed by an individual with Contract signature authority.  Persons who are not authorized and still sign documents or authorize services on behalf of the University, whether it be a procurement agreement, a Contract, an MOU, etc., take on personal liability for the commitments made therein.  A current list of authorized University Contracts Officers and their signature authority is maintained on the PaCS website. 

Exception to this policy:  Employees without designated Contract signature authority may sign Contracts or agreements between their department and another department at OSU (Interdepartmental Agreements).  This does not apply to Contracts or agreements between OSU and other Oregon University System Institutions.

PROCEDURE:

Those with Contract signature authority within PaCS must insure they only sign Contracts that are allowable under Institutional authority and that they review the Contract according to PaCS contract review standards.

203: Unauthorized Purchases or Contracts

Procurement and Contract Services Policy & Procedures Manual
Section 200: Regulations and Authority
Effective: 01/04/2010
Revised: 1/11/2013

 

A purchase or Contract made outside PaCS granted Purchase Authority or Contract Signature Authority is unauthorized.  Unauthorized purchases or Contracts are not legal or binding on OSU and are voidable at OSU’s discretion.  Individuals that purchase or sign Contracts beyond their granted authority may be held personally responsible for the purchase or Contract, which could include personal liability for payment to the vendor for the purchase or contract, or repayment to OSU.  The university must address unauthorized procurements or Contracts by documenting the circumstances and taking corrective action.

 

203-001: Rectification of Unauthorized Purchases or Contracts

Unauthorized purchase of goods may be rectified by cancellation of the purchase and return of the goods.  Unauthorized Contracts for goods or services may be rectified by cancelling the contract before receipt of goods or services.  If goods or services have been received, and return or cancellation is not an option without incurring a cost that must be paid, then ratification of the Unauthorized Purchase or Contract must occur.

 

203-002: Ratification of Unauthorized Purchases or Contracts

Unauthorized purchases or Contracts may be ratified if approval is granted through the ratification process described herein.  Payment for the procurement or Contract may not be made until after ratification has been granted by the appropriate Purchase Authority or Contract Signature Authority.   

PROCEDURE:

  1. Departments or Business Centers should first try to rectify unauthorized purchases or Contracts.

    If the purchase or Contract cannot be rectified and the unauthorized purchase or contract is a first time occurrence then someone from PaCS will contact the individual to counsel and education as appropriate given the specific situation.  The person responsible for the unauthorized purchase or contract should ensure they understand how the situation should have been managed and acknowledge the person they were working with in PaCS
  2. If there is a second occurrence, the individual will be required to sign an unauthorized procurement/contract Activity – 2nd Notice” letter of understanding. 
  3. Further occurrences will result in notification to the Dean or Department Head and may result in the individual facing being held personally liable to pay the contractor or repay the University

If legal review would have been required for the purchase or Contract, then ratification must be managed between PaCS and OSU Office of General Counsel.

204: Records and Reporting

Procurement and Contract Services Policy & Procedures Manual
Section 200: Regulations and Authority
Effective: 01/04/2010
Revised: 11/20/2012

 

204-001: Records Retention

By law, all records (paper and electronic) are required to be maintained for a certain period of time according to a schedule established by the Oregon Secretary of State Archives Division.  In general, all records including procurement records are subject to retention requirements as set forth in Oregon Administrative Rule 166-475.  A General Retention Schedule is available on the Oregon University System Records Management website:  http://www.ous.edu/about/records/retention-schedule   Documentation of purchasing and contracting transactions will be made available for inspection by OUS Internal Audit Division, Federal, State and Granting Agencies upon request.  The department, Business Center or PaCS will be responsible for maintaining the records for those purchases or Contracts for which they have authority to complete.

 

204-002: Public Records

OSU records are public records and are subject to the Oregon Public Records Law contained in ORS 192.

PROCEDURE:

  1. Periodically, there may be a request to see or obtain copies of public records. Requests should go through the procedures for making public records requests which are available at: http://oregonstate.edu/legal-counsel/node/3
  2. OSU may charge its costs for responding to public records requests.  In response to public records requests, estimates of the costs will first be provided, which includes the cost per page for copies at the then current established fee and the hourly rate of the persons responding to the request.  PaCS will use the lowest hourly rate employee available and able to respond to the request. 
  3. The estimate will be provided to the requestor who must decide whether they want to proceed.  Requested documents will not be provided until payment to cover the estimate has been made.  After gathering documents, the requester may need to pay additional costs or may receive a refund depending on the accuracy of the estimate.

 

ADDITIONAL INFORMATION:

Oregon Revised Statute 351

Oregon Revised Statute 192

Oregon Administrative Rule 166-475

Oregon Administrative Rule 580-042-0010

300: Purchasing

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 11/20/2012

PURPOSE:

To establish policy and procedures for responsible procurement practices ensuring compliance with applicable laws, regulations, policies and procedures.

BACKGROUND:

PaCS 202-002 specifies the dollar thresholds at which departments, Business Centers and PaCS have purchase authority.  This section guides those units with purchase authority in how to vet the purchase or contracting of the goods and services for policy adherence. 

POLICY:

301: Required Reviews and Approvals

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

The following purchases require review or approval from specified departments prior to making the purchase.  Departments or Business Centers submitting Purchase Requisitions or Contracts for PaCS review should ensure the required internal or other department policy holder review or approval is received prior to submittal.  PaCS will not be held responsible for delays in initiating purchases or contract development or review due to submitter’s failure to have them properly vetted.

 

301-001: Facility Modifications

Facilities Services should be consulted when a department is requesting work to be done such as Construction, Electrical, Design/Build, Architectural and Engineering, Autoclaves, Fume Hoods, Hazardous Materials, Telecommunications Wiring, Ducting, Heating, Air Conditioning, UPS Units, Roofing and anything related or requiring a permit.  For more detailed information see PACS 502-03.

 

301-002: Radioactive Material or Radiation-Producing Machine

The Facilities Services Department of Environmental Health & Safety (EHS) must authorize all purchases of radioactive material or radiation-producing machines, regardless of whether by purchase, gift, loan, transfer, or other means.   In accordance with the Radiation Safety Manual http://oregonstate.edu/ehs/rso/rsm-index authorization must be verified and documented prior to placing the order or accepting gifts, loans or transfers.

Most procurements of radioactive material are radiolabeled chemicals for use as tracers in laboratories.  The following is a “hot list” of other items that incorporate radioactive material or produce radiation, and also require prior approval of Radiation Safety:

  • Any device with the word “x-ray”, “diffraction”, “fluorescence” or “nuclear” in the description
  • Gas chromatographs equipped with electron capture detectors (ECDs)
  • Liquid scintillation counters
  • Gamma counters
  • Portable moisture/density gauges
  • Class IIIb or IV lasers

 

301-003:          Hazardous Materials

The Department of Environment, Health & Safety (EHS) must be notified by email and must approve all purchases classified as hazardous materials.

 

301-004:          Use of OSU Logos or Name

All purchases using any of the OSU logos or name are to be reviewed and approved by University Advancement. For more information on obtaining University Advancement authorization go to http://oregonstate.edu/marketing/.  Vendors and Contractors may not use the name of Oregon State University, any Oregon State University Trademarks or logos without the express written consent of the university. 

 

301-005:          Print Purchases and Copying

Pursuant to the Vice President for Finance and Administrations memo dated December 1, 2004, Printing and Mailing Services http://printmail.oregonstate.edu/policies-turnaround has been identified by the University as the sole agency for print purchasing and copying using state or university funds.  All purchases for printed materials and services should be directed to Printing and Mailing Services.

 

301-006:          Research Animals

All purchases of research animals must be approved by the Laboratory Animals Research Center (LARC) prior to purchase.  All Contracts for the housing, transportation or use and care of research animals must be approved through the Institutional Animal Care and Use Committee (IACUC).

 

301-007:          Vehicle Purchase and Leasing (Passenger Vehicles)

OSU has a central Motor Pool which rents vehicles to departments on an as needed basis.  While purchasing or leasing a vehicle for a department’s sole use is not prohibited, consideration should be given to the aspects involved in owning or leasing a vehicle such as registration, title, ownership, maintenance, gas purchases, insurance and driver eligibility.  Prior to purchasing or leasing a vehicle departments must work with the following groups to coordinate the aspects listed:

  • Motor Pool – Determination of whether a vehicle will meet minimum mileage usage requirements that justify full time vehicle assignment, vehicle title processing, insurance documentation for the vehicle, and fuel card usage.
  • Office of Risk Management - Determination of whether the vehicle qualifies for insurance coverage and safety requirements for road use and driver eligibility.

PROCEDURE:

Purchasing New Vehicles:

  1. Work with Motor Pool and the Office of Risk Management to make the determinations identified above.
  2. Check which vehicles are available from on contract by contacting your Business Center buyer or PaCS.  Purchasing a vehicle off any of Contract allows a significantly discounted price.
  3. To purchase a vehicle not on Contract, follow the procurement policies and procedures for the anticipated dollar amount of the purchase. 

Purchasing Used Vehicles:

  1. Work with Motor Pool and the Office of Risk Management to make the determinations identified above.
  2. While all used vehicles are not necessarily equal (e.g., mileage, accidents, condition or repair), competitive pricing comparisons should be considered at any dollar amount.  Follow the procurement policies and procedures for the anticipated dollar amount of the purchase.
  3. Departments can register and title a vehicle, but may wish to have Motor Pool manage this process.  Once the title is received the title should be scanned and sent to Inventory Management so that an asset number can be referenced on the title and confirmation can be made that the vehicle is on OSU inventory.

 

301-008:          Trade-Ins

If an item is used as a trade-in allowance toward purchase, the documentation must include an approved Property Disposition Request (PDR) located at the following website: http://inventorycontrol.oregonstate.edu/formList.cfm signed by the Surplus Property Manager, and written approval from Inventory Control confirming the item is University owned.  All Trade-Ins must follow the Property Management Policies and Procedures: http://oregonstate.edu/fa/manuals/pro/209 and approval must be confirmed prior to processing.  Purchases made with a trade-in are capitalized at their full value, not the amount after it was reduced by the trade-in allowance.  If multiple assets are being traded there must be a specific amount for each asset – not a lump sum for all.  For additional information related to Trade-In’s see PaCS 303-009.

 

301-009:          BOLI Procurement

Purchases of goods and services that are determined to be subject to the Bureau of Labor & Industries (BOLI), Prevailing Wage Rates (PWR) are excluded from purchase authority granted to departments or Business Centers regardless of dollar threshold.  See BOLI Procurement 504-05.  When unsure if a purchase qualifies for BOLI, immediately contact PaCS.   

 

301-010:          Restricted Fund Equipment Purchases

Purchases with an Account Number of 40101 and a restricted fund index number (an index that is not the typical E & G index of 3 alpha characters followed by 3 numeric characters) must have approval of the Office of Post Award Administration  (OPAA).  Purchaser will obtain this approval prior to completing the Purchase Order. 

 

301-011:          Purchases or Contracts using Federal Funds

Purchases or Contracts at or above $25,000 using federal funds may not be made to Entities or Vendors that are debarred, suspended or otherwise excluded from or ineligible for participation in federal assistance programs or activities.

 

301-012:          Audit Services

Contracts or procurements for auditing services must be reviewed and approved by the Vice President of Finance and Administration and Assistant Vice President and Controller of Finance and Administration.  After such approval is received, departments are to contact the Oregon University System Internal Auditor to develop the contract or procurement.

 

301-013:          Legal Review

Some procurement and contract documents require review by the Office of General Counsel.  This requirement varies by dollar value and/or type of purchase or contract.     PaCS may seek legal advisement outside of the requirement as necessary.

302: Requisitions

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 6/25/2013

 

302-001: Requisitions

Purchases over $25,000 and BOLI procurements at any dollar value (See PaCS 504-05) must be submitted to PaCS through the appropriate Business Center on a Purchase Requisition with the required approver’s signature(s) according to the purchase authority set forth in PaCS 202-002 and as indicated on the Purchase Requisition.  Purchases subject to BOLI PWR and those purchases made in excess of $25,000 without PaCS involvement will be considered unauthorized (See PaCS 200).  The total amount of the purchase price should be calculated in the aggregate of the reasonably known quantity of purchases not including equipment trade-in values.  PaCS does not process purchases for amounts less than $25,000 unless they are subject to BOLI PWR.  Those non-BOLI related purchases between $5,000 and $25,000 should be managed through the applicable Business Center according to the Business Centers Policies and Procedures.

 

302-002: Purchase Requisition Processing Timeline

When submitting Purchase Requisitions departments should allow at least 10-14 Days from Purchase Requisition submission to issuance of a Purchase Order for purchases between $25,000 and $149,999.99 and for BOLI Procurements.  For purchases equal to or greater than $150,000 allow at least 30 Days or more.  Timing depends on the complexity of the purchase, necessary authorizations, type of solicitation method being utilized, available resources and any necessary negotiations.

303: Purchase Orders

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/14/2014

 

The purchase authority dollar threshold indicates from where an authorized Purchase Order may be issued.  The unit issuing the Purchase Order is responsible for all aspects of the Purchase Order including but not limited to:

  • Obtaining the required approvals;
  • Setting up the appropriate commodity or document level accounting in Banner;
  • Ensuring the appropriate terms and conditions are indicated on the Purchase Order document and that any attached Vendor quotes do not reference the Vendors terms and conditions;
  • Making any changes, cancelations or modifications to the Purchase Order including liquidating the Purchase Order as necessary; and
  • Keeping and maintaining the official archival records.

Purchase Orders can be issued for purchasing standard goods or services that are “off the shelf” or fairly typical.  For more complex purchases, a different form of Contract should be contemplated.

 

303-001: PaCS Purchase Orders

PaCS is responsible for issuing Banner Purchase Orders for purchases that exceed $25,000.  Departments and Business Centers are not authorized to issue procurements that exceed $25,000.  Purchases may not be fragmented in order to circumvent the necessary processes associated with issuing purchases over the $25,000 threshold, see PaCS Policy and Procedure 103-002.

 

303-002: Business Center Purchase Orders

Except for purchases subject to BOLI PWR, Business Centers will issue OSU Purchase Orders for purchases between $5000 and $24,999.99 referencing the appropriate terms and conditions on the PaCS website.  Exceptions include those allowed in PaCS 303-012. 

 

303-003: Departmental Purchase Orders

Except for purchases subject to BOLI PWR, Departments may issue Departmental Purchase Orders or Banner Purchase Orders for purchases at and under $4999.99.

 

303-004: Purchase Order Terms and Conditions

Purchase Orders $5,000 and greater will be issued through Banner and reference the appropriate Standard Terms and Conditions listed on the PaCS website at: http://pacs.oregonstate.edu/terms-and-conditions.  Business Centers should contact PaCS if unsure about which terms and conditions apply to their purchase.  OSU Purchase Order Standard Terms and Conditions prevail over Vendor terms and conditions.  Under no circumstances should Department or Business Center staff allow or agree to make changes to OSU Purchase Order Terms and Conditions.  If a Vendor requests changes to the terms and conditions, submit request to PaCS for review.

 

303-005: Purchase Order Changes and Cancellation

Purchase Order changes and modifications should be initiated  by the unit that initiated the Purchase Requisition by sending their request for the change or cancelation to PaCS.  Only PaCS may cancel or change a Banner Purchase Order.   PaCS will review requests for changes and cancelations to determine feasibility prior to making any changes or cancelations.  In some cases, changes or cancellations may not be allowed.

 

303-006: Purchase Order Completion

Banner has an automatic function that disallows the completion and encumbering of a Purchase Order greater than $25,000 for Business Centers.  If a Department or Business Center requests completion of the Purchase Order, the unit completing the Purchase Order must review the signed Purchase Requisition, ensure any applicable approvals or processes have been completed and keep a record of the purchase.

 

303-007: Purchase Order Encumbrances

When a Purchase Order is approved in Banner an encumbrance is created against the Index.  When an invoice is entered into Banner and is not linked to the original Purchase Order, the Purchase Order encumbrance remains open.  Purchase Order encumbrances must be monitored by the Purchase Order issuer and the encumbrance deleted by the Purchase Order issuer before the end of the fiscal year.

 

303-008: Purchase Order Capital Assets

A capital asset is generally described as a single asset with a minimum value of $5,000 except in special cases approved by Property Management.  All Capital Assets shall be purchased according to the Property Management Polices and Procedures:  Software, consumables, minor equipment not permanently affixed to the equipment and maintenance cannot be considered part of the asset value.  Freight, training, and set up can be a part of the asset value.  The proper transaction account code must be used as indicated below:

  • 40101 Equipment
  • 40102 Livestock
  • 40103 Art/Museum Collections
  • 40104 Vehicles
  • 40199 Asset under Construction
  • 40201 Vessels


303-009: Purchase Order Trade-Ins

When an asset involves a trade-in, the original purchase order should reflect the original value of the asset without consideration of the trade-in credit.  The intent to make a trade-in and the value, which will be received for the trade-in, should be covered in item text.  The trade-in value will be given during invoice payment by using journal voucher processing.  When a trade-in is referenced, the department should be reminded they must check with Surplus Property and Inventory Control and complete a Property Disposition Request (PDR) before the purchase.  All Trade-Ins shall follow the Property Management Policies and Procedures.  A copy of the PDR and the Purchase Order shall be provided to Inventory Control. 

For additional information related to Purchase Order Trade-In’s see PCC 301-008.

 

303-010: Exchange of OSU Goods or Services for Discounts

Generally, an exchange of OSU goods or services for a Vendor’s goods or services in whole or at a discounted rate is not allowable.  This practice unfairly eliminates Vendors who may not wish to accept OSU goods and services and disproportionately lowers or eliminates the overall price of the goods without accounting for the trade or discount.

 

303-011: Purchase Order Discounts

When an asset involves a “discount” from a vendor, the purchase order should reflect the actual discounted cost paid rather than the inflated cost prior to discount.

 

303-012: Purchase Order Exception List

The following is a list of commodities and payees that do not require issuance of a Purchase Order prior to payment.  The following excludes procurement of items that are capitalized equipment:

  • Conference Fees for OSU employees to attend work related conferences
  • Departmental or Institutional Accreditation, Certification or Assessment Fees and related Maintenance
  • Doctor or Dentist Bills for OSU Student Athletes
  • Dues and Memberships for OSU employees work related dues and Memberships
  • Food purchased for University Dining and Memorial Union resale
  • Gasoline, diesel fuel, heating oil, lubricants, natural gas, and electricity and the associated transportation thereof
  • Insurance or service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145 for purposes of source selection
  • Offset printing under $25,000 for Printing and Mailing Department
  • Payments made in accordance with a Contract or agreement executed by an authorized OSU Contracts Officer
  • Payments related to overpayments made to OSU
  • Payments to the PAC-12 or National Collegiate Athletic Association that are required through the OSU Athletics membership in those organizations
  • Payment to OSU Bookstore by Intercollegiate Athletics for books for OSU athletes
  • Payroll, health benefits, retirement and life insurance payments
  • Royalty payments requested by the Research Office
  • Travel Advances or Travel Reimbursements as allowed by OSU travel policies
  • Tuition Reimbursements
  • Utilities  - when governed by federal, state or local regulatory agencies
  • When the following vendors are the payees:
    • Any State of Oregon Agency
    • OSU Foundation
    • OSU Beaver Athletic Student Fund (BASF)
    • United States Post Office

PROCEDURE:

For procurements under $25,000: Business Centers may pay using a Banner invoice. 

For procurements over $25,000:  unless granted Banner unrestricted invoice access by the Procurement and Contract Services Chief Procurement Officer and Business Affairs, Business Centers must request an invoice completion  from PaCS (see PaCS 304). 

Banner FIS unrestricted invoice access may be used for payments only as allowed on the Purchase Order Exception list or as approved by PaCS.  For audit documentation purposes, written justification for not issuing a Purchase Order should be stated in the document text of the Banner Invoice document.  When referencing use of a Contract, the contract number should be:

  • included in the document text, or
  • indicated on the invoice document image, or
  • a legible document image of the contract signed by an Institution Contract Officer should be linked to the Banner invoice document in Nolij

Unrestricted invoice access utilized in a manner that falls outside of this policy, procurement Oregon Administrative Rules or related PaCS policies and procedures may be rescinded by the Procurement and Contract Services Chief Procurement Officer and Business Affairs.

304: Invoices

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

304-001: Invoice Completion and Approval

Invoices for amounts equal to or greater than $25,000, that are not paid against a Banner Purchase Order, require Banner Invoice Completion and PaCS approval before payment will be issued.  The completion  process and approving officials will vary based on the dollar amount of the invoice.  For additional information on approval routing and related separation of duties see FIS 1108 Approval Routing

Banner Invoice completion and PaCS approval will consist of verification that accurate documentation is in place, the procurement was appropriate, conducted in a manner consistent with applicable regulations and within delegated authority.  Approval may be granted by the following individuals at the dollar thresholds.

Dollar Threshold Required Approving Officials
$25,000 - $499,999.99 Procurement and Contract Services Analyst
$500,000 - $999,999.99 Procurement and Contract Services Chief Procurement Officer or Procurement Supervisor  or Executive Director, Campus Operations
$1,000,000 and Above Procurement and Contract Services Chief Procurement Officer  or
Executive Director, Campus Operations 
and
Assistant Vice President and Controller or
Assistant Director of Accounting/Finance
and
Vice President of Finance and Administration or
Associate Vice President of Finance and Administration or
Director, Budget and Fiscal Planning
and
President, Provost, Executive Vice Provost or Vice Provost.

PROCEDURE:

  1. Submit an email to PaCS at pacs@oregonstate.edu requesting invoice completion.  Include the Banner Invoice document number and any supporting documentation or information for verification that the appropriate procurement method has taken place or that an existing contract is in place.  This explanation should be included in the Banner Invoice document text as well.
  2. The required approving official will review the invoice and documentation in order to make an approval determination.  If the purchase or contract is determined to be unauthorized, the process for rectification or ratification of the unauthorized procurement will be followed.
  3. Approvals for invoice amounts between $500,000 and $999,999.99 must be provided by the required approving officials indicated above in writing to Business Affairs.
  4. Approvals for invoice amounts equal to or greater than $1,000,000 must be provided by the required approving officials indicated above on a “Payment in Excess of One Million Dollars” form, which can be obtained from Business Affairs.
  5. Once approved by the required authorized approver, PaCS will complete the Invoice in Banner.

305: Commodities Prohibited for Purchase with State Funds

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

See  FIS 1402-02 for cash outs

and OSU Business Affairs OSU Purchasing Card Prohibited Uses

306: Purchasing and Payment Methods

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

Departments should utilize one of the methods of purchasing and payment for direct purchases.  As is the case with purchases, payments should not be separated or fragmented in order to circumvent rules and policies.

 

306-001: Procurement Card

Departments are encouraged to make direct purchases by using their procurement card for those purchases applicable under the OSU procurement card program.  This method of purchase is an, efficient method of acquisition and payment.  Instructions regarding how to utilize your Procurement Card are located at the OSU Business Affairs website http://oregonstate.edu/fa/businessaffairs/accountspayable/purchasingcard.php

OSU Accounts Payable oversees the OSU procurement card program through the credit card purchasing program established by OUS.  For more information go to the OSU Fiscal Operations Policy.

 

306-002: Purchase Orders

When it is not feasible to utilize other more efficient methods of direct purchasing, OSU departments or Business Centers may wish to issue a Purchase Order.  Departments may issue a departmental Purchase Order or a Banner FIS Purchase Order.  Once created, departments can send the Purchase Orders directly to the Vendor.  For purchases $5,000 and over issuing a Purchase Order is required unless an exception under 303-012 is utilized.

 

306-003: Store Credit Accounts and Applications

There are rare instances where use of the Procurement Card is not feasible and the Vendor will only accept a Purchase Order after OSU has been approved for a credit account with the Vendor.  In those rare cases, departments may initiate establishing such accounts as long as it does not exceed a credit limit of $5000, does not result in a commercial credit account, revolving credit account or credit card.  Only those individuals with Contract Signature Authority are authorized to  sign the credit application.

PROCEDURE:

To establish a credit account, departments or Business Centers should complete credit applications with the information that pertains specifically to their department such as the department name, contact information and billing address.  PaCS will complete the business credit information requested such as tax id number, references, DUNS number, and other financial information on the credit application.  Once the department has filled in their information, credit applications should be submitted to PaCS for signature via email at pacs@oregonstate.edu.  This is the preferred and most efficient method of submittal however if this method is not feasible departments may fax their request to (541) 737-2170 or via campus mail to PaCS. 

The submittal will be assigned to an analyst who will then review the credit application, modify any terms or conditions contrary to what OSU can agree to, attach the Business Credit Information attachment, sign and return to the appropriate Business Center or department.

 

306-004: Prohibited Procurement Mechanisms

The following procurement mechanisms are prohibited:

  • Commercial credit or revolving credit accounts
  • Credit cards other than the OSU Procurement Card, ghost card or other procurement cards maintained through Accounts Payable.
  • Any method that circumvents applicable approvals or procurement rules.

 

306-005: Auto Pay Vendors

Auto Pay is an OSU program where the monthly statement of all invoices from the vendor(s) is processed by Accounts Payable rather than by individual departments.  The Auto Pay program is managed by Business Affairs.  For more detailed information go to FIS 408.

 

306-006: Payment Terms

All Purchase Orders and Contracts should indicate payment terms of Net 30 even though pursuant to ORS 293.463 and OAR 580-061-0050 we are not required to pay interest on late payments until the 45th day after payment is due. Cash on delivery, prepayment or payment prior to receipt of any goods or services should not occur unless pre-payment conditions exist as noted below.  Cash to accompany orders must be managed by the department with Accounts Payable. 

 

306-007: Pre-Payment

Prepayment to vendors is highly discouraged because it renders payment for goods or services that have not yet been received.  This omits OSU’s ability to withhold payment when goods or services have not been delivered.  When a vendor requires prepayment the following conditions must exist:

  • There is no other vendor from which OSU can purchase the goods or services; and
  • Prepayment is required as part of the purchase order contract terms and conditions; and
  • PaCS has approved the prepayment by signing the purchase order or contract.

Vendor documentation may be required to verify that prepayment is the only acceptable form of payment.

 

306-008: IRS W9 Forms

PaCS maintains current expenditure and revenue W9’s for the University.   Tax ID number 93-6001786 is used by all OUS institutions for expenditure transactions or purchases.  The name listed on the W9 is “Oregon University System”.  Tax ID number 48-1278540 is used solely by OSU for revenue transactions.  The name listed on the W9 is “Oregon State University”.  The names listed on the W9’s are in accordance with the Internal Revenue Service records and should not be changed.  Departments will not be issued separate W9 forms.

Departments may not create or sign new IRS W9 forms or alternate W9 forms.  Occasionally a vendor may request OSU to fill out an alternate W9 form capturing information on the IRS W9 form as well as additional reporting requirements.  It is recommended that the department first try to use the already completed IRS W9 forms on file at PaCS using the appropriate Tax ID number for the type of transaction (expenditure or revenue) being conducted.  If the vendor does not accept the IRS W9 and requires the alternate W9 to be completed, send to PaCS for processing.

307: Sustainability

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

John A. Kitzhaber, M.D., Governor of Oregon issued Executive Order E0-00-07 on May 17, 2000 directing all State of Oregon agencies and employees to develop and promote policies and programs that will help Oregon meet the goal of sustainability by the year 2025.  Since Oregon State University is a land-grant institution committed to the citizens of Oregon and the sustainability of Oregon’s environment, compliance with this directive is essential to the long term health of the State of Oregon.  Oregon State University PaCS will utilize sustainable purchasing practices whenever feasible to do so. 

 

307-001: Reduce, Reuse, Recycle and Recover

OSU will use sustainable purchasing by applying the methodology of “Reduce, Reuse, Recycle, and Recover.”   Whenever practicable, attention should be given to the environment through the evaluation of this methodology along with performance, life expectancy, quality, and value for money.

 

307-002: Environmentally Preferable Purchasing Policies

When purchasing goods and services, Oregon State University will strive to balance short and long-term costs, maintenance, life cycle, and costs to the environment.  Oregon State University is committed to identifying goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods and services that serve the same purpose.  This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, and disposal of the product.  Oregon State University is also committed to identifying companies that utilize environmentally preferable products and services.  Companies that are able to supply environmentally preferable products and services (especially post-consumer recycled materials) that meet performance requirements will be encouraged to offer them in bids and proposals. 

 

307-003: Environmental Education

Oregon State University is committed to providing ongoing education to the university community about the importance of environmentally preferable purchasing.  This may be accomplished through training workshops, seminars, and creating a web site training page dedicated to assisting campus departments with sustainable purchasing techniques.  Existing environmentally friendly Contracts and agreements may be highlighted on the PaCS web page.

308: Informal Solicitations

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 6/25/2013

 

Informal Solicitations will be used for purchases between $25,000 and $149,99.99.  Informal solicitations are those which fall into a dollar threshold which require competition but do not require a formal procedure.  PaCS is the only department authorized to conduct informal solicitations.

The types of informal solicitations normally utilized are a Request for Quote (RFQ) and an Informal Request for Proposal (IRFP).  An RFQ will be used when pricing will be the only determining factor.  An IRFP would be used when the University wishes to award based on price and additional qualitative characteristics. 

 

308-001: Request for Quotes (RFQ)

An RFQ will be used when pricing will be the only determining factor.  An RFQ is the simplest method for obtaining competitive quotes.  It is usually used when purchasing a common item that can be easily identified.  PaCS will require a clear description of the item, which will be written in a standardized RFQ format.  With this type of request the lowest Responsive Responsible quote must receive the award unless the quote is rejected because it did not meet criteria in the RFQ.

 

308-002: Informal Requests for Proposals (IRFP)

An IRFP would be used when the University wishes to award based on price and additional qualitative characteristics.  PaCS will use the IRFP process when considering many elements and evaluation of those factors will be the basis for award criteria.

 

308-003: Clarifications

OSU may negotiate with an offeror to clarify its quote or informal proposal or to effect modifications that will make the quote or informal proposal acceptable or make the quote or informal proposal more advantageous to OSU so long as pricing is not revealed.

309: Formal Solicitations

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 6/25/2013

 

Formal solicitations are those which fall into a dollar threshold which require competition by following the procedure for a formal solicitation outlined in OAR 580-061 & 580-062.  Generally formal solicitations are used for purchases equal to or exceeding $150,000.  If a purchase does not equal or exceed $150,000 but a formal solicitation is used, the rules for the formal solicitation process must be followed. PaCS is the only department authorized to issue formal solicitations. The typical types of formal solicitations are an Invitation to Bid (ITB) and a Request for Proposals (RFP).  An ITB is used when pricing will be the only determining factor.  An RFP would be used when the University wishes to award based on price and additional qualitative characteristics.

 

309-001: Invitation to Bid (ITB)

PaCS will use the ITB process when price is the only relevant award criteria.  PaCS will prepare the ITB working with the department to clearly define specifications.  With an ITB the lowest priced bid will receive the award unless rejected pursuant to OAR.   

 

309-002: Request for Proposal (RFP)

PaCS will typically use the RFP process when a purchase requires consideration of many elements in addition to price, and evaluation of those elements will be the basis for award.  With an RFP the highest ranked Responsive Responsible Proposer after completion of all stages of evaluation will receive the award unless rejected pursuant to OAR.

 

309-003: Minimum Opening Timelines

Formal solicitations must be open to the public for a minimum of seven (7) calendar days.

310: Other Solicitations

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010

 

310-001: Request for Qualification (RFQu) - Procurement

A Request for Qualification (RFQu) is a procedure by which Procurement seeks vendors that meet a specific level of minimum qualifications.  This process is used to establish a qualified vendor list or Qualified Pool.  A Solicitation Document is issued establishing minimum qualifications and interested Vendors respond in writing by describing their experience with and qualifications to provide the services described in the Request for Qualification.  Generally further competition is required to select from this group of vendors who have met the qualifications and this is generally the initial step.

 

310-002: Request for Information (RFI)

A Request for Information (RFI) is a procedure by which the University can obtain information in preparation for another type of solicitation.  RFI’s are used for informational purposes and do not fulfill the requirements for competition, therefore a contract or award cannot be made from this process.  Generally an RFI is used when the University does not have sufficient information of the goods, services or vendor interest.  An RFI typically includes a basic outline of what the University is interested in doing and how vendors should provide responses.  Responses can be comprised of the vendors marketing materials, or answers to a series of questions.  Request for Information may be used by departments as a starting point to find information, but may not result in a purchase or a contract.

 

310-003: Qualified Pools

OSU may establish a pool of qualified Vendors (“Qualified Pools”) that can be used on a non-exclusive as needed basis for the selection of Contractors when Direct Procurement or Informal Procurement methods are otherwise authorized in OAR 580.  This process may not be applied to construction related services.

Contracts issued from the Qualified Pool may not exceed the dollar threshold for the Informal Procurement Method during a single fiscal year.  Selection of Contractors from a Qualified Pool will be made as follows: 

a)    Departments may make a direct purchase up to dollar threshold for Informal Procurements if:

  • The price or rate is established by OSU in the Request for Qualification and that price or rate remains the same upon issuance of a Contract; or
  • As part of the Request for Qualification the vendor was required to submit their price or rate and that price or rate remains the same or lower upon issuance of a Contract.

b)    Departments may obtain three quotes from Qualified Pool participants and make award up to the dollar threshold for Informal Procurements to the lowest priced respondent.

c)    Departments may interview or request presentations from three Qualified Pool participants and make award up to the dollar threshold for Informal Procurements of the highest ranking participant.

311: Posting Solicitations and Notices of Sole Source Procurements

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010

 

All solicitations and notices of sole source procurements equal to or greater than $25,000 must be advertised on the OUS website.  Solicitations must be advertised on the OUS website from the time the solicitation opens until it closes.  Notices of sole source procurements must be advertised for seven (7) calendar days.

312: Solicitation Process

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 4/30/2013

 

312-001: Reissuance of a Solicitation

Reissuance of a solicitation will be at the sole discretion of PaCS who may require a waiting period before reissuance of a solicitation.

 

312-002: Additional Purchase Based on a Previous Solicitation

Established under the Alternative Processes in OAR 580-062-0020(6), OSU may purchase additional goods based on a previous solicitation from the awarded vendor, without seeking further competition, if all of the following conditions are met:

a)    the goods were competitively solicited through an Informal or Formal Procurement Method in accordance with applicable statutes, administrative rules and policies and procedures;

b)    at least two Vendors responded to the original solicitation;

c)    the original solicitation was awarded within the immediate preceding six (6) month period from the date of the new Purchase Order;

d)    the goods are exactly the same as those identified in the original solicitation and any addendums to the solicitation made during the solicitation process;

e)    the awarded Vendor is willing to provide the goods at the same price offered in the previous solicitation; and

f)     the dollar amount of the purchase from the previous solicitation added to the dollar amount for the additional purchase does not exceed the dollar threshold for the type of solicitation conducted or create a requirement for legal review if legal review was not obtained during the previous solicitation.

 

312-003: Cancelling

Solicitations may be cancelled upon providing official notification of cancellation.  Solicitations can be cancelled before or after solicitation opening.  Any responses received will be handled in accordance with OAR 580-061-0140. 

 

312-004: Specifications

The requisition will be reviewed by PaCS to determine the appropriate solicitation type and to ensure the department has provided clear specifications or scope of work.  Only those specifications included in the solicitation document may be considered when determining responsiveness to that solicitation.

 

312-005: Sourcing

Departments may provide a list of Vendors that they wish to receive the solicitation.  If the department does not provide a list or in addition to their list PaCS can locate additional Vendors.  Procurement and Contract Services does not maintain a “bidder’s list” or list of Vendors to notify of upcoming solicitations.  Vendors can view the Oregon University System Website at https://secure.ous.edu/bid/ to view all Institutional opportunities over $25,000.

 

312-006: Legal Review

Certain commodity and services solicitation and contract types at varying dollar value thresholds require legal review.  PaCS will forward finalized documents to the Office of General Counsel for required legal review and for instances where legal advisement is needed.

 

312-007: Pre-Proposal/Pre-Bid Meetings

If applicable, PaCS will conduct a pre-Bid or pre-Proposal meeting insuring any information clarified or provided during the meeting is issued in a written Addendum to the solicitation.  A written attendance record of the Vendors present will be created.  If the meeting is mandatory only those attending will be allowed to respond to the Solicitation.

 

312-008: Solicitation Questions

If there are any questions from the Vendors, PaCS will act as liaison.  If the questions are related to the Specifications or scope of work PaCS may relay those questions to the department if necessary.  If the questions are related to the procurement procedure, PaCS will answer the question.  If the questions impart information that is not already contained in the Solicitation Document, PaCS will relay the information to all Vendors via an Addendum.  Vendors should not contact OSU key stakeholders or evaluation committee members during a solicitation process conducted by PaCS.  The reverse is true as well as key stakeholders or evaluation committee members should not contact Vendors during the solicitation process.  All Addenda to solicitations will be posted to the OUS website.

 

312-009: Due Date and Time and Public Opening

Formal solicitations will have a scheduled public opening on the due date and time.  The opening should be attended by the Analyst and include another person as a witness.  The public opening should be stated in the Solicitation document.   This is not required for informal solicitations.

 

312-010: Determination of Responsiveness

PaCS will conduct a post Opening review to determine Vendor Responsiveness.  This may include checking the Vendors’ calculations, tabulating totals and checking for required Specifications.  If there are mistakes which cannot be resolved under OAR or a Vendor does not meet the required Specifications, PaCS may reject the Offer by sending a letter to the Vendor indicating they are rejected and no longer under consideration and that they have the opportunity to appeal as provided in OAR 580-061-0130 (5)(a).

 

312-011: ITB/RFP Department Review

PaCS will forward the solicitation responses and the OUS Conflict of Interest Statement to the department.  OUS Conflict of Interest Statements must be completed and returned from anyone evaluating an ITB or RFP.  The low Bidder should be considered first unless the Bid Specifications offered are not equal to the required Specifications.  If the department does not want to place the order with the low Bidder, the department must provide documentation describing how the Offer is non-Responsible or non-Responsive.  RFP responses are evaluated based on the criteria and evaluation process identified in the RFP document, typically using a scoring methodology.

 

312-012: Contract Issuance

Once the department decides to make the purchase by selecting the highest scored Proposer or verified that the lowest bid meets specification requirements as defined in the solicitation document, PaCS will complete the purchase order or contract.

 

312-013: Notice of Intent to Award

All vendors submitting a response to a formal solicitation must be notified of OSU’s intent to award to the apparent successful bidder or proposer and provided with the appropriate protest information.  PaCS will issue this Notice of Intent to Award to all vendors that submitted a response.  Vendors responding to an informal solicitation are not typically notified of award unless requested.

 

312-014: File Availability after Notice of Intent to Award

After issuing a Notice of Intent to Award the procurement files are available for review only by those vendors who responded to the solicitation.  If a vendor requests to view the file PaCS will review those offers to make sure that no confidential or proprietary information is contained in the file.  Vendors should make an appointment and may not be allowed private or closed access to the documentation.

 

312-015: Post Closing Addendum

Under Development.

313: Purchases Exempt from Competition

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

Oregon Administrative Rule identifies those purchases which are exempt from Competitive Processes regardless of dollar value for all OUS Institutions. 

 

313-001 OAR Exemption Usage

OAR exemptions will be used at the sole discretion of PaCS.  PaCS will review and determine whether use of an exemption is appropriate given the circumstances and needs of the requesting department.   If use of an exemption is deemed unacceptable by PaCS, the procurement or Contract will be subject to the acceptable competitive methods of procurement and contracting.

314: Sole Source

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010

 

Sole Source procurements of $25,000 or more, are only allowed when it can be thoroughly documented that the contractor holds a unique (no other sources have it) set of skills or expertise that make it impossible for anyone else to do the work or that the goods are not available from another source. Departments must fill out the Sole Source Request Form and completely document the due diligence used to make the sole source determination which could include sources such as internet searches, scientific publications and colleague references.

 

314-001: Sole Source Advertisement

Sole sources must be advertised on the OUS website for seven (7) calendar days.  PaCS will make a written determination of the Sole Source.  Contracts or purchase orders will not be signed or issued until after it has been advertised for the requisite amount of time and the written determination has been made.

 

314-002: Protest of a Sole Source Determination:

Vendors may protest a sole source determination by submitting a letter of protest to the analyst listed in the advertisement.  The letter must be submitted to the analyst by the day and time established in the advertisement.  Late protests will not be considered.  The letter of protest must demonstrate that the vendor can provide the service or goods indicated in the sole source advertisement and include additional support documentation. 

PaCS will review the protest and make a determination to uphold or deny the protest.  If upheld, PaCS will issue a solicitation.  If the protest is denied, PaCS will notify the vendor indicating why the protest was denied and the sole source procurement may proceed.

315: Purchasing from Existing Contracts

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

OSU will use existing University-wide Contracts or Price Agreements set up for purchasing goods and services whenever possible.  The Contracts represent savings based on large dollar spend and will likely be better than the prices quoted outside of the Contract or, represent savings in administrative processing that may not be apparent on the face of the Contract.

 

OSU also has access to Cooperative Procurement Contracts from other organizations and may be able to use those Contracts in order to fulfill the requirement for competition.  OSU maintains and supports first those Contracts put in place by OSU, and then those organizations that OSU is affiliated with for Cooperative Procurements.  When using these Contracts or agreements the requirement for competition has typically already been met, however PaCS must review and document how the contract or price agreement and competitive method used to establish the contract or agreement meets requirements under applicable sections of OAR Divisions 61 and 62.

 

 

315-001: OSU Contracts and Price Agreements

OSU should use current Contracts or Price Agreements listed on the PaCS website.  The Contract number should be given to the Vendor when asking for a quote and referenced on the resulting Purchase Order, ordering documents and payments.   

 

315-002: State of Oregon Contracts and Price Agreements

As a State of Oregon agency, OSU may utilize existing State of Oregon Contracts or Price Agreements without seeking further competition if the specifications are equivalent.  All requests for procurements from an existing State of Oregon contract should reference the contract number and follow the order procedures identified in the contract.  When using a contract from the State of Oregon the terms and conditions of that contract will apply.  State of Oregon contracts can be viewed on the Oregon Procurement Information Network (“ORPIN”) and can be accessed at the State of Oregon Procurement website with a username and password.

 

315-003: Western States Contracting Alliance

The State of Oregon is a participating state in the Western States Contracting Alliance (“WSCA”) which is a cooperative multi-State contracting group established to achieve cost-effective and efficient acquisition of quality products and services.  All governmental entities within WSCA states as well as authorized governmental entities in non-WSCA states may use the approved Contracts.  Purchases from WSCA Contracts should match the specifications and follow the order procedures identified in the Contract.  When using a Contract from WSCA the terms and conditions of that Contract will apply.  Some Contracts require addendums to be established before a purchase order can be issued, and most minimally require a clause be added to the purchase order and Contract documents.  WSCA Contracts can be viewed on the web at http://www.aboutwsca.org/content.cfm/id/WSCA?CFID=503291164&CFTOKEN=77962624.

 

315-004: General Services Administration (GSA) Contracts

OSU is allowed to use the U.S. General Services Administration (GSA) Multiple Award Schedules (MAS) program also known as Federal Supply Schedule or GSA Schedules pursuant to OAR 580-062-0020(7)(d).  However, state and local government may only purchase from the GSA schedules when granted access through federal government regulations.  The federal government has granted very limited access to the schedules.  Contact PaCS if you wish to make a procurement under a GSA schedule.

 

315-005: Other Contracts and Cooperatives

Established under the Alternative Processes in OAR 580-062-0020(6), OSU may purchase from Contracts issued by Cooperatives, without seeking further competition, if OSU, or a Cooperative to which OSU belongs, was originally named in the solicitation and the following conditions are met:

a)    the goods or services were competitively solicited and awarded in a manner reasonably equivalent to the respective process established in OAR 580-061 through OAR 580-062;

b)    the Contract has not expired and will not expire before the goods and services are received;

PROCEDURE:

Submit your request to utilize a cooperative contract to PaCS.  An analyst will:

1.         Review the request and the subject contract and make a written determination, including any backup documentation, that the solicitation and award of the contract meets the conditions above.

2.         Review the terms and conditions in the awarded contract and verify that OSU can agree to the terms and conditions.  Negotiate any terms or conditions that may be objectionable to OSU.

3.         If needed, obtain legal review.

This process can take significant time to perform each of the steps listed.  In some cases it may be more expedient to issue a solicitation through PaCS.

 

315-006: Contracts Issued By Other Public Agencies

Established under the Alternative Processes in OAR 580-062-0020(6), OSU may make purchases from Contracts issued by other Public Agencies, without seeking further competition, if all of the following conditions are met:

a)    the goods or services were competitively solicited and awarded in a manner reasonably equivalent to the respective process established in OAR 580-061 through OAR 580-062;

b)    the solicitation or Contract indicates that other public agencies may make purchases from the Contract; and

c)    the Contract has not expired and will not expire before the goods and services are received;

PROCEDURE: 

Submit your request to utilize a cooperative contract to PaCS.  An analyst will:

1.         Make a written determination, including any backup documentation, that the solicitation and award of the contract meets the conditions above.

2.         Review the terms and conditions in the awarded contract and verify that OSU can agree to the terms and conditions.  Negotiate any terms or conditions that may be objectionable to OSU.

3.         If needed, obtain legal review.

This process can take significant time to perform each of the steps listed.  In some cases it may be more expedient to issue a solicitation through PaCS.

316: MWESB, Qualified Rehabilitation Facilities and Oregon Commission for the Blind

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/12/2013

 

316-001: Minority, Women, and Emerging Small Businesses (MWESB)Affirmative Action

OAR 580-061-0030 expands economic opportunities for Minority, Women and Emerging Small Businesses (MWESB) by offering them the contracting and subcontracting opportunities available through Institution Contracts.  Notices of all Contracts over $25,000 procured through a Competitive Process will be provided to the Advocate for Minority, Women and Emerging Small Business through the Oregon University System Procurement Gateway.

OUS Equity Contracting and Purchasing Policy and Data Reporting Procedures http://www.ous.edu/sites/default/files/dept/capcon/files/MWESB-Policy.pdf requires that sufficient business opportunities be provided to MWESBs.  In adherence with that policy PaCS must ensure sufficient solicitation efforts be utilized to provide such opportunities.  

Each Institution submits an annual MWESB report that provides data pertaining to expenditures with MWESBs.

 

316-002: Qualified Rehabilitation Facilities (QRF)

Qualified Rehabilitation Facilities (QRF) are qualified nonprofit agencies whose purpose is to provide employment to individuals with disabilities.  The following organizations support, represent or manage QRF’s as indicated below:

  • Oregon Department of Administrative Services certifies organizations as QRF’s.  For a listing of QRF’s go to the following website:http://dasapp.oregon.gov/qrf/index.aspx
  • The State Procurement Office (SPO) manages the products and services of the disabled program.
  • Oregon Rehabilitation Association (ORA) supports and represents QRF’s.  For more information see ORA’s website at www.oregonrehabilitation.org.

OSU must comply with with ORS 279.835 to 279.855 and OAR 580-061-0025.

PROCEDURE:

  1. Check to see if the goods or services required are listed in the DAS QRF Program Procurement List located at http://dasapp.oregon.gov/qrf/index.aspx.
  2. If the goods or services are listed, contact the QRF representative and discuss your specific requirements and timeframe.  If they can meet those requirements and timeframe, work with your Business Center or PaCS to get a purchase order or Contract in place.
  3. If a source is not located on the DAS QRF Program Procurement List for your specific requirements, proceed as normal with the procurement.

 

316-003: Oregon Commission for the Blind

Under ORS 346.510 to 346.570 persons who are blind and who are licensed under the provisions of ORS 346.510 to 346.570 by the Commission for the Blind, shall operate vending facilities in or on any public buildings or properties where, in the discretion of the head of the department or agency in charge of maintenance of such buildings or properties, such vending facilities may properly and satisfactorily operate.

PROCEDURE:

In order to be in compliance with the Statute, OSU must give the Commission for the Blind three types of notice:

  1. Periodic notice must be provided of all existing locations were vending facilities are operated or where vending facilities might be operated.
  2. Thirty (30) days notice prior to the reactivation, leasing, re-leasing, licensing or issuance of a permit for operating of any vending facility.  Providing a copy of the solicitation that meets the time limit would satisfy this requirement.
  3. Thirty (30) days notice to any new locations where vending facilities might be operated before a lease or license to operate such a facility is entered into.

317: Vendors and Contractors on Campus

Procurement and Contract Services Policy & Procedures Manual
Section 300: Purchasing
Effective: 7/01/2010
Revised: 3/14/2014

 

317-001: Visiting Campus

Vendors or Contractors must carry with them at all times documentation that associates them with their company.  Vendors are highly recommended to schedule visits with departments rather than drop in unannounced.  Vendors should maintain appropriate and professional behavior while on campus.  Vendor conduct should adhere to all OSU policies such as, but not limited to, the Smoke-Free http://oregonstate.edu/smokefree/sites/default/files/docs/smokefree_oar.pdf and Firearms http://www.ous.edu/sites/default/files/state_board/polipro/OUS-Policy-on-Firearms.pdf policies

 

317-002: Vendor Parking

Vendors and Contractors coming on campus must work with Transit and Parking Services to secure required permits for parking on campus.

 

317-003: Purchases from OSU

When accepting orders from OSU staff, Vendors or Contractors should get a form of payment such as a procurement card or Purchase Order, OSU contact name, OSU department and phone number.  If a Vendor receives an incomplete order from an OSU employee they should request additional information to document the purchase.

 

317-004: Contracts from OSU

Signed Contracts, agreements, Memorandum of Understanding, confirmations or any other form binding OSU to specific terms and conditions may only be signed by an individual designated as a Contracts Officer by the Vice President for Finance and Administration.  The list of designated Contract Officers is available on the PaCS website.

 

317-005: Vendor Invoices and Pricing

Invoices for valid purchases and Invoice or payment inquiries should be sent directly to the ordering department to initiate payment.  Vendors or Contractors will assess charges to OSU that accurately reflect the purchase.    Vendors and Contractors will not misrepresent charges whether for their own benefit or at the direction of OSU employees.  Doing so may result in termination of a Contract or disqualification from consideration for award of Contracts.

400: Contracts

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010

 

Purpose

This policy is to provide information about the various types of contracts and how best to contract for a variety of goods and services for OSU. The purpose of having a written contract is to set forth a binding set of obligations and expectations for each party.  Any time OSU is committed to an action, commits to the acceptance of an action by another party, or agrees to pay for goods or services, some form of written contract is required. 

Applicability

All employees authorized to procure goods or services for OSU.

Policy

401: Contract Basics

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010
Revised: 4/17/2012

 

401-001: Contracts Outside PaCS Purview:

The purchase and contract responsibilities  under PaCS purview do not include authority for processes managed by Real Property and Leasing, Inventory Control, Human Resources, Risk Management, Research Office, Office of Sponsored Programs, Technology Transfer, University Advancement or authority not allowed under ORS or OAR 580-042-0010.

 

401-002: Contract Form           

In order to acquire goods or services, the parties should enter into some form of a written contract regardless of the dollar value.  Written contracts may be in a variety of forms including but not limited to: Purchase Orders, Personal Services Contracts, Use Agreements, and Rental Agreements.  Contracts do not need to be labeled as such to be legally binding as interpretation is typically based on the content.  There are different types of instruments used to formalize the obligations and expectations of the parties. 

 

401-003: Oral Contracts

Oral contracts are not an acceptable form of contract and are not binding on the University. 

 

401-004: Contracting in Good Faith

OSU contracts in good faith.  It is our obligation to ensure that OSU contracts are enforceable, legal, fair, and represent terms and conditions under which OSU can agree. ORS, OAR and the Oregon Constitution contain certain restrictions which can obstruct or limit our ability to enter into agreements.  A contract must accurately represent the obligations, expectations and the time in which the contract is valid.

 

401-005: Independent Contractor

Contracts may only be issued to individuals or businesses that qualify as Independent Contractors.  An evaluation of the relationship between an individual and the University must be examined before determining independent contractor status.  Facts that provide evidence of independent contractor status fall into three categories: Behavioral, Financial and the Relationship of the Parties.  The degree of importance of each category varies depending on the type of work and individual circumstances.  An Independent Contractor Determination form must be completed whenever the university is contracting with an individual whether by PSC or other form of contract.

 

401-006: OSU as a Contractor

OSU may perform work as a Contractor to other entities only under certain conditions; the work must be consistent with OSU’s mission; and the fee charged must be approved and published in the OSU fee book.  Office of Sponsored Programs and Procurement both execute contracts on behalf of the University where the University acts as the contractor.  To determine whether PaCS or the Office of Sponsored Programs would handle the contract, refer to the Contract Type Characteristics matrix at http://oregonstate.edu/research/osp/submission/TestingAgreements_000.htm

 

401-007: Non-Negotiable Public Contracts

under construction

402: Contract Types

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010

 

OSU will strive to be consistent in the naming and use of certain agreement types defined in these policies in order to maintain consistency and continuity within the university.  The agreements will be written in a manner that clearly establishes the roles, responsibilities and obligations of the parties involved.  Any financial obligations should be clearly detailed including amounts and terms.  The following are some of the types of contracts and their intended use.

 

402-001: Interdepartmental Agreements

Interdepartmental agreements are intended to document agreements between OSU departments.  Interdepartmental agreements can be processed and signed by the departments.

 

402-002: Interagency Agreements (IAA)

Interagency Agreements are intended to formalize agreements or understandings between State of Oregon agencies.  Interagency agreements require review, approval and signature by the Contracts Office.

 

402-003: Intergovernmental Agreements (IGA)

Intergovernmental Agreements are intended to be used between OSU and other governmental agencies when an Interagency Agreement isn’t applicable.  Intergovernmental Agreements with agencies outside the State of Oregon may require review to insure compliance with ORS Chapter 190.  Intergovernmental Agreements require review, approval and signature by the Contracts Office.

 

402-004: Memorandums of Understanding (MOU)

A Memorandum of Understanding (a.k.a Memorandum of Agreement and Letter of Intent) is a document describing an intended common line of action and does not create a legally enforceable contract.  These are informal and understood as precursors to a formal legally binding contract.  Memorandums of Understanding require review, approval and signature by the Contracts Office.

 

402-005: Purchase Orders (PO)

Purchase Orders are contracts and are issued for the purchase of goods or services.  Purchase orders are legally binding contracts.

 

402-006: Personal Services Contracts

Personal Services Contracts (PSC) are used to contract for infrequent, technical or unique services performed by contractors with specialized, technical or scientific expertise of a professional nature.  Examples of professional services contractors include:

  • Accountants
  • Actuaries
  • Attorneys
  • Brokerage firms
  • Grant writers
  • Physicians
  • Public relations consultants
  • Recruiters

Personal Services Contracts must be issued when the dollar threshold will exceed $5000 cumulatively in one academic year for a department.  However, Personal Services Contracts may be used at any dollar level, and are highly recommended when detailed expectations or obligations are necessary.  The PSC must be used at any dollar level for Non Resident Aliens. 

Personal Services Contracts may not be issued to OSU Employees, OUS Employees, State of Oregon Employees or Federal Employees.

Contractors performing work on a PSC may not:

  • Supervise OSU personnel or other contractors; 
  • Be listed as an instructor of record for an OSU for credit course;
  • Be in contact with minors until contractor has passed a criminal background check as required in OAR 580-023;
  • Represent themselves as OSU or make promises on behalf of OSU;
  • Drive OSU vehicles; or
  • Transport students, unless specifically authorized to do so in the contract.  If authorized, contractor must meet OSU minimum driving standards in accordance with OAR 125-155.

 

402-007: Speakers and Entertainers

Under Devlopment.

 

402-008: Honoraria

Under Development.

 

402-009: Capital and Operating Leases

Equipment or real property leases can be very complex as there are various types of leases and OSU has strict rules it must follow in how leases are defined, structured, paid and reported.  The complexity of leases, even of minor, low dollar value equipment, is quite high.   For purposes of this Policy leases described herein apply to those leases in which OSU is the Lessee. 

There are two types of equipment leases, Operating Leases and Capital Leases.  OUS Policy .200 A. lists criteria that differentiates Capital Leases from Operating Leases:  http://www.ous.edu/cont-div/fpm/acco.05.281.php#.200

A Operating Lease (also called a Municipal or non-finance lease) is more like a fixed-term rental where the item has a residual value close to its market value at the end of the lease term.  OSU may enter into these types of leases at any dollar level.

A Capital Lease (also called a Finance lease) means that OSU will own the personal or real property which exceeds the $5,000 capitalization threshold at the inception of the date of the lease, with a minimal buy-out, at the end of the lease term.  OSU only has authority to enter into these types of leases up to $100,000.

Capital Leases exceeding $100,000 are particularly complicated and can take up to a year or longer to process.  Because of the associated complexities, necessary resources it takes to process and administrative costs involved, Capital Leases are highly discouraged.  Any Capital Lease exceeding $100,000 and meeting the following criteria shall be managed by the Oregon Department of Administrative Services and Oregon Department of Justice and must be reported to the Oregon University System: 

  • The agreement transfers ownership of property to OSU when the agreement ends.
  • The agreement contains a nominal or bargain purchase option.  A nominal or bargain purchase is a price less than fair market value at the time of purchase.
  • The term of the agreement is 75% or more of the economic useful life of the property.
  • The present value of the minimum payments under the agreement is at least 90% of the current fair market value of the property.  Minimum agreement payments include any penalty for terminating the agreement.

The OUS Fiscal Policy Manual states how all OSU lease accounting and fiscal management shall be managed:  http://www.ous.edu/cont-div/fpm/acco.05.281.php

The OUS Controller’s Division states how all leases shall be reported: http://www.ous.edu/cont-div/closing08_09/detailed_instructions.php#ci

Regardless of lease type, all equipment leases must follow the Property Management Policies and Procedures http://oregonstate.edu/dept/budgets/PROManual/PRO204.htm, http://oregonstate.edu/dept/budgets/PROManual/PRO205.htm and a copy of the final lease must be sent to Inventory Control to ensure the property is recorded on Banner records as required.

 

402-010:  Sponsorship Agreements

Sponsorship agreements are intended to document a vendor’s support of a specific event or activity.  In return the vendor typically received acknowledgement of the sponsorship and other benefits at the event.  The value of the sponsorship should be equivalent to or greater than the acknowledgement or other benefits received. 

403: Contract Content

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010

 

403-001: Contract Length and Perpetual Agreements

Contract length should be no more than 5 years.  Contracts requested to be in excess of five years are at the sole discretion of PaCS.  The University does not contract in perpetuity.  All contracts must have a definitive end date. 

 

403-002: Scope of Work

The scope of work should include the expectations and obligations of both parties and should provide enough clarity that an individual not party to the contract could read it and understand. 

Areas that are typically included in a scope of work are as follows:

  • Description of the work to be done in detail
  • Location of the work
  • Period of performance or the allowable time for projects
  • Deliverables schedule describing what is due and when
  • Industry standards to be adhered to in fulfillment of the contract
  • Acceptance criteria to determine if the product or services are acceptable
  • Special requirements such as certifications or travel requirements

 

403-003: Compensation

Describes the agreed upon fees and conditions that Contractor will be paid, what method and when, and where invoices should be sent to.  The rate of pay can be linked to a quantifiable unit of measure such as hour or performance and completion of deliverables.  The rate of pay can be tied to performance milestones, percentage of completion, units of work, or by hour.  If the rate is hourly it may be looked at closer to determine if this contractor should really be an employee.  The “Not to Exceed Amount” should be the total amount that the contract cannot exceed and include amounts for any travel and reimbursable expenses allowable under the contract.

 

403-004: Contacts

Identify Key Persons (persons key to performing the work), contract administrators, and to whom notices should be sent for both Contractor and OSU.

 

403-005: Contract Insurance Requirements

Under Development.

404: Contract Processing

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010

 

404-001: Department Review & Input Prior to Submittal

Departments will first review the contract to be certain the department and contractor are in agreement with the expectations or obligations in the contract.  If they cannot comply then they should discuss this and come to a mutual agreement articulated in the scope of work. 

 

404-002: Contract Submittal and Routing

Departments should submit the contract to their Business Center who will forward to PaCS for review and execution.  PaCS will coordinate all other necessary reviews.  PaCS may also work with the vendor and provide them with an OSU contract or negotiate the vendor’s contract terms and conditions.  Copies or electronic images of the contract are acceptable.

 

404-003: Contract Review

Under Development.

 

404-004: Signature Prior to Commencement:

Contracts must be signed by an OSU person with contract signature authority prior to commencement of work.  Contracts not signed prior to commencement will be considered unauthorized.

 

404-005: Electronic Signatures

Signatures on contracts must be inscribed on paper by hand.  Electronic signatures are not acceptable. 

 

404-006: Signatures prior to PaCS Review

Contracts which arrive already signed by the contractor without prior PaCS review, might not be accepted. PaCS advises against departments accepting agreements that have been signed prior to review. 

 

404-007: Signatures after PaCS Review

Generally the agency responsible for drafting the contract or agreement should sign the document last.  This allows the other agency time to review, negotiate and make changes with the drafting agency before execution.

 

404-008: Contract Amendments

Contract amendments may be made pursuant to OAR 580-061-0065. 

 

404-009: Amendment of Expired Contracts

Contracts should be amended or extended in advance of the expiration of the contract. Extension of an expired contract will be at PaCS discretion.

 

404-010: Certificate of Insurance Processing

Requests for Certificates of Insurance (COI) will only be processed when there is a contract in existence that has been reviewed by PaCS, executed by someone with contract signature authority and the contract document requires proof of insurance.  Requests for Certificates of Insurance must be made to Risk Management.

405: Contract Administration

Procurement and Contract Services Policy & Procedures Manual
Section 400: Contracts
Effective: 7/01/2010

 

405-001: Contract Administration

Contract administration involves those activities performed after a contract has been awarded to determine if the requirements and specifications of the contract were met. It encompasses all dealings between OSU and the contractor from the time the contract is awarded until the work has been completed and accepted or the contract terminated, payment has been made, and disputes have been resolved.  The level of contract administration necessary is dependent on the nature of the work, type of contract and experience and commitment of the personnel involved.  Good contract administration assures that the end users are satisfied with the product or service being obtained under the contract.

PaCS will perform contract administration for University-wide contracts.  Departments will perform contract administration for departmental contracts.  Departments will notify PaCS immediately in the event any of the following situations arise:

  • Contract modifications or amendments;
  • Irresolvable invoice or billing discrepancies Unsatisfactory/unacceptable work product;
  • Non-performance of work; or
  • Breach of the contract.

Duties involved in contract administration should include all of those duties listed below. 

 

405-002: Contract Monitoring

Contract monitoring should include the following:

  • Contract orientation meeting
  • Authorization of orders placed under the contract
  • Adherence to the scope of work and terms and conditions in the contract
  • Review and acceptance of deliverables
  • Monitor key dates throughout the entire term of the contract to ensure any necessary actions happen prior to these dates. 

 

405-003: Contract Documentation

Once the contract is in place, documentation of the contract should be maintained by the contract administrator.  Documentation should include:

  • Fully executed contract
  • Contract amendments/renewals
  • Solicitation (if done by the contract administrator)
  • Meeting notes
  • Orders placed under the contract
  • Performance issues or deficiencies
  • Written receipt of deliverables
  • Invoices

Contract documentation should be clear and discernable so that anyone reviewing the contract file can understand the history of the contract, current status, and all outstanding issues.

 

405-004: Contract Invoice Review

The contract administrators recommended approval of an invoice implies that to the best of their knowledge, the nature, type, and quantity of effort or materials invoiced are in general accord with the progress of work under the contract.  Invoices should be reviewed for:

  • Reasonableness of costs  
  • Vague references or ambiguity
  • Mathematical accuracy

500: Construction

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

Purpose

This policy is to provide information about the various methods of contracting and types of contracts required for professional services and construction-related procurement and contracting. 

Procurement thresholds for all construction-related services are established under the Oregon University System Oregon Administrative Rules, Division 580. 

Policy:

501: Procurement Thresholds for Professional Services and Construction Services

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

These procurement thresholds pertain to construction-related services and professional consultants as defined in OAR 580-063-0010, and are applicable to all construction-related contracting transactions.

 

501-01: Procurement Thresholds for Professional Services

Procurement thresholds for Professional Services are as follows:

a)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of between $0 - $25,000 may be secured using the “Direct Procurement” method as described in OARs 580-063-0020 and 580-063-0025.

b)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of between $25,001 - $100,000 may be secured using the “Informal Procurement” or “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0025.

c)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of over $100,001 mus be secured using the “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0025

 

501-02: Procurement thresholds for Professional Services Retainer Contract Procurements

Procurement thresholds for professional services retainer contract procurements are as follows:

a)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of between $0 - $100,000 may be secured using the “Direct Procurement” method as described in OARs 580-063-0020 and 580-063-0025.

b)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of between $100,001 - $250,000 may be secured using the “Informal Procurement” or “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0025.

c)    Contracts for professional consultants with a total value (including services and reimbursable expenses and any amendments) of between $250,001 and $1,000,000 must be secured using the “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0025.

 

501-03: Procurement Thresholds for Construction Services

Procurement thresholds for Construction Services are as follows:

a)    Contracts for construction services with a total value (including services and reimbursable expenses and any amendments) of between $0 - $25,000 may be secured using the “Direct Procurement” method as described in OAR 580-062-0015, except in cases where Oregon Prevailing Wage Law applies.  See PaCS 504-05.

b)    Contracts for construction services with a total value (including services and reimbursable expenses and any amendments) of between $25,001 - $100,000 may be secured using the “Informal Procurement” or “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0030.

c)    Contracts for construction services with a total value (including services and reimbursable expenses and any amendments) of over $100,001 mus be secured using the “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0030.

 

501-04: Procurement Thresholds for Construction Services Retainer Contract Procurements

Procurement thresholds for construction services retainer contract procurements are as follows:

a)    Contracts for construction services with a total value (including services and any change orders) of between $0 - $50,000 may be secured using the “Direct Procurement” method as described in OARs 580-063-0020 and 580-063-0030.

b)    Contracts for construction services with a total value (including services and any change orders) of between $50,001 - $500,000 may be secured using the “Informal Procurement” or “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0030.

c)    Contracts for construction services with a total value (including services and any change orders) of between $500,001 and $1,000,000 must be secured using the “Formal Procurement” method as described in OARs 580-063-0020 and 580-063-0030.

502: Project Requests, Preparation and Timing

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

PURPOSE:

The purpose of this Section 502 policy is twofold:

a)    To provide information on project requests and requirements in preparing requests for solicitation and/or contracting and contract management;

b)    To coordinate the efforts of the OSU departments of Facilities Services and Procurement and Contract Services (PaCS) prior to making certain purchases and arranging for design or construction activities.

APPLICABILITY:

Facilities Services, PaCS, and OSU personnel authorized to make purchases on behalf of the University, as well as architects, engineers and other consultants and contractors providing services for OSU.

POLICY:

502-01: Legislative Spending Limit for Capital Construction

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2014

 

Approval for expenditure of public funds for construction is required by the Oregon Constitution, regardless of the source of the funding.  If the project is to be contracted by a public agency (in this case, the Oregon University System), the expenditure must be approved in compliance with OAR 580-063-0005 and Oregon Law.

Legislative approval is required for every construction project in which the estimated total project cost exceeds $500,000.  The Board of Higher Education is allocated a specific “system-wide” limitation that may be allocated to any institution in the system for projects that total $500,000 or more, but less than $1 million, inclusive of all fund sources. 

Should the project exceed $1 million or there is inadequate system-wide limitation available, project-specific approval must be granted by the Legislature.

PROCEDURE:

Facilities Services staff provide information on the project scope of work, funding source, and request for spending authorization to the Chancellor’s Office, who then present the project to the Board of Higher Education for approval.  Upon receipt of Board approval, the project is submitted for legislative approval through the Governor’s office as part of the biennium budget request or to the Legislative Emergency Board if the project requires approval during a time when the legislature is not in session.

502-02: Project Submittals to PaCS Construction Contracting

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

Authorization to proceed with solicitation or execution of a contract to a consulting or construction firm must come in writing from Facilities Services or authorized departmental project and/or construction manager.  After authorization has been received by Facilities Services all submissions for construction or consultant solicitations or contracts shall be submitted to the Construction Contracts Supervisor in PaCS.

 

PROCEDURE:

a)    Design requests: Facilities Services or authorized departmental project manager or construction manager must send an email to the Construction Contracts Supervisor, including the following:

  1. Name of OSU project manager
  2. Index or Facilities Services work request number
  3. Description of project, estimated project budget, and authorization for expenditure of funds for design
  4. Design proposal containing the following:
    • Name, address, phone and email for design firm’s project manager
    • Description of project and services to be provided
    • Not-to-exceed fee for services and separate reimbursable expenses
    • List of personnel to be assigned to the project.

b)    Construction requests: Facilities Services or authorized departmental project manager or construction manager must send an email to the Construction Contracts Supervisor, including the following:

  1. Name of OSU project & construction managers
  2. Index or Facilities Services work request number
  3. Description of project, construction estimate, and authorization for expenditure of funds for construction
  4. Desired method of procurement
  5. Hard copies of drawings, one-sided set of specifications and review comment responses from the design consultant, if applicable.

502-03: Facilities Services Role and Interactions

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/12/2013

 

Facilities Services (Design & Construction section and Facilities Operations section), along with PaCS have established procedures of notification and approval for certain types of procurements that require professional design or may have critical impact on the structural integrity of a building.

PROCEDURE:

The following items require review and approval from Facilities Services Design & Construction section prior to issuing a contract:

  • Any architectural or engineering design work, whether new construction or remodel.
  • Any project involving air conditioners (or “move and cool” units), uninterruptible power supply (UPS) units; autoclaves and/or fume hoods; hazardous materials (including asbestos, lead, mold, silica, radiation); roofs or roof penetrations.
  • Any services that require a building permit or a building trade permit from the City or County.
  • Electrical work.
  • Design/build work
  • Telecommunications/wiring
  • When the estimated total cost of construction exceeds $25,000.

502-04: OSU Campus Standards Compliance

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

Oregon State University must incorporate design and materials consistent with the character and standards of the campus environment to; support the Campus Master Plan; and to facilitate the cost-effectiveness and ease of maintenance of campus buildings and systems.   Projects completed for OSU will utilize the OSU Design Criteria in the design and construction phases.

The campus design standards are specified in the OSU Construction Standards document which identifies OSU standard equipment, materials and building systems.  It provides guidelines and standards for design consultants, contractors, and/or OSU staff for use in developing campus construction contract documents.  The OSU Construction Standards  are reviewed periodically by a team of OSU staff under the direction of Facilities Services.

PROCEDURE:

OSU PaCS staff will provide the OSU Construction Standards document to contracted consultants and contractors, as applicable.  Prior to issuing a solicitation, plans and specifications will be reviewed by Facilities Services, PaCS, and departmental personnel for compliance to OSU Construction Standards.  The most current version of the OSU Construction Standards can be obtained from Facilities Services website at http://oregonstate.edu/facilities/cpd/ .

502-05: Projects Needing Professional Design

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2014

 

Facilities Services departments of Design & Construction , Facilities Operations, and Accounting, and PaCS have established procedures of notification and approval for certain types of small (under $100,000) procurements that require professional design or may have critical impact on the mechanical, electrical or structural integrity of a building.

Projects requiring Professional Consultant services as identified in OAR 580-063-0010 are required to be reviewed by Facilities Services and/or PaCS prior to selection of a design professional to ensure the project complies with existing building use standards established by the OSU Campus Planning Committee, that a qualified design professional has been selected using the appropriate solicitation process, and that adequate funding is in place.  A contract for professional services must be executed by PaCS, in compliance with OAR 580-061-0020.

PROCEDURE:

Upon determination by a department that alterations to a portion of a building, grounds or surrounding areas is desired, contact Facilities Services to determine if professional design services will be required.  If professional design services are required, Facilities Services or designated departmental personnel will contact PaCS to establish funding and submit a contract request by email. 

PaCS staff will review the request and, as applicable, prepare the contract or begin an appropriate solicitation process.

502-06: Timelines

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2014

 

The authority for contracts for repairs and public improvements is provided in OAR 580-063-0000.  Requests to solicit and/or execute contracts will be processed on a first-come, first-served basis, in as timely manner as possible given the available resources at the time.

For capital construction contracts for contractors and consultants, the timeline is dependent on multiple factors:

  • the solicitation method,
  • length of legal  review,
  • coordination of selection committee schedules,
  • in the case of consultants, the responsiveness of consultant during the contract negotiation phase, the accuracy and acceptability of the consultant’s proposal and the responsiveness of the consultant in returning signed agreements and insurance.

For smaller construction solicitations, the timeline is dependent on multiple factors:

  • the solicitation method (advertised, retainer, sole source),
  • coordination of project team schedules for the pre-bid walk through,
  • responsiveness of the awarded contractor in returning signed agreements, insurance, and bonds.

Generally, this process can take up to 10 weeks, depending on the above factors.

For smaller consultant solicitations, the timeline is dependent on multiple factors:

  • whether the consultant is on the OUS Retainer List
  • has done work on campus before, 
  • the accuracy and acceptability of the consultant’s proposal,
  • responsiveness of the consultant in returning signed agreements and insurance (if applicable). 

Generally, this process can take up to 1 month, depending on the above factors.

503: Methods of Competition

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

PURPOSE:

To provide information on the methods of competition for construction related procurements and contracts.

APPLICABILITY:

Facilities Services, PaCS, and OSU personnel authorized to make purchases on behalf of the University, as well as architects, engineers and other consultants performing services for OSU and  construction contractors performing work on campus

BACKGROUND:

This section pertains to construction-related services and professional consultants per OAR 580-063-0020, and is applicable to construction-related contracting transactions in accordance with the requirements of OUS administrative rules.

POLICY:

503-01: Request for Qualification (RFQ)

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

When factors other than price, such as a firm’s financial stability, project experience, ability to meet a specific schedule, experience of key personnel assigned to the project, etc., are desired to be taken into consideration when selecting a consultant or construction firm for any project, but most typically for capital construction projects, a Request for Qualifications may be issued prior to an Invitation to Bid where price is the only consideration or prior to a Request for Proposals.  Utilizing a Request for Qualifications assures quality workmanship on public projects and to encourage competition for contracts at the management skills level.

PROCEDURE:

Working in conjunction with a Facilities Services project manager, PaCS recommends the appropriate solicitation procedure and develops the solicitation documents in compliance with applicable statutes and Oregon Administrative Rules.

The Facilities Services project manager may work with the client to develop the project parameters and obtain necessary approvals.  Once permission to proceed is obtained, PaCS works with the project manager to assist with development of the solicitation and the schedule, arranges advertisement of the solicitation, and schedules the review of responses with the appointed selection committee to develop a “short-list” of firms to proceed to the next stage of the solicitation.

503-02: Request for Proposal (RFP)

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

When factors other than price, such as a firm’s financial stability, project experience, ability to meet a specific schedule, experience of key personnel assigned to the project, etc., are desired to be taken into consideration when selecting a consultant or construction firm for any project, but most typically for capital construction projects, a Request for Proposals may be issued.  The Request for Proposals may be issued in conjunction with a Request for Qualifications.  Utilizing a Request for Proposal assures quality workmanship on public projects and to encourage competition for contracts at the management skills level.

Working in conjunction with a Facilities Services project manager, PaCS recommends the appropriate solicitation procedure and develops the solicitation documents and contract form in compliance with applicable statutes and Oregon Administrative Rules.

PROCEDURE:

The Facilities Services project manager works with the client to develop the project parameters and obtain necessary approvals.  When permission to proceed is obtained, PaCS works with the project manager to develop the solicitation, contract documents, and outline the project schedule.   PaCS coordinates the development of the solicitation and contract documents consulting for legal review as applicable, and when all approvals are obtained, finalizes the project schedule, arranges for advertisement of the project, and:

1)   Distributes the responses to the appointed selection committee for review and to develop a “short-list” of firms to proceed to the final stage of the solicitation (interview or selection) (if no RFQ was issued); or

2)   Distributes the responses to the appointed selection committee to review the responses prior to interviews (if applicable); or

3)   Distributes the responses to the appointed selection committee to review and select a firm to perform the services; and

4)   Completes solicitation/selection and proceeds with contract negotiations or execution (as applicable).

503-03: Bid/Basic Bid

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2014

 

A bid (or also known as a basic bid) may be utilized when the scope of work and specifications are well defined and price is a major consideration.

Working in conjunction with a Facilities Services or departmental project manager, PaCS recommends the appropriate solicitation procedure (advertised bid or retainer bid) and develops the solicitation documents and contract form in compliance with applicable statutes and Oregon Administrative Rules.  This process is managed solely by PaCS staff.  The competitive bid process awards to the lowest responsive and responsible bidder.

PROCEDURE:

1)    Retainer:  Projects that are estimated to be between $50,000 and $500,000 (including any potential change orders) may be solicited using the OUS Retainer program.  OSU may invite a minimum of 3 contractors from the OUS Retainer list to submit a bid on the project.  Invitation letters are sent to the selected contractors.  Two sets of contract documents (plans and specifications) are provided to each contractor invited to bid.  Bids are received and evaluated for compliance.  The lowest responsive and responsible bidder is awarded the project.  Projects estimated to be between $500,000 and $1,000,000 must be offered to all contractors under the OUS Retainer Program for bidding.

2)    Advertised Bid:  Projects that are estimated to be in excess of $1,00,000 (including any potential change orders) are required by OAR 580-063-0030 to be advertised publicly.  PaCS staff will prepare the advertisement and solicit on the OUS website and, if determined to be in the best interest of the project, in various publications as well.  Contractors may purchase plans and specifications from the PaCS office and submit a bid on the project.  Bids are received and evaluated for compliance.  The lowest responsive and responsible bidder is awarded the project.

504: Types of Construction Contracts

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/14/2013

 

PURPOSE:

To provide information about the various types of required Construction Contracts and how they are utilized.

APPLICABILITY:

PaCS personnel, Facilities Services personnel, and OSU personnel authorized to make construction-related services on behalf of the University.

BACKGROUND:

Retainer Contracts:

In 1996 OUS, on behalf of its seven universities, first solicited and entered into contracts with qualified contractors to provide construction services to OUS institutions.  The successful contractors are to furnish all necessary labor, materials, and equipment necessary to provide construction services for future, undetermined renovation and/or improvement projects in the areas of carpentry, masonry, painting, electrical, plumbing, mechanical, roofing, paving/concrete, fire protection, and other trades generally associated with minor construction and renovation.

Successful contractors sign two-year retainer agreements that contain general terms and conditions between OUS and the contractor.  Entering into a retainer agreement does not assure selection to provide services.  It enables OUS institutions to select contractors on retainer to perform projects with direct construction costs under $1,000,000 for construction.  A supplemental project contract or supplement contains a description of services to be provided and the monetary consideration for each project.  Contractors are selected for projects based on factors the institutions deem appropriate.

Similar agreements are also in place for OUS-retained consultants to provide professional services up to $1,000,000 for design and engineering, soil studies, surveys, geotechnical or traffic study projects.

POLICY:

504-01: OUS Retainer Supplements for Professional Consultants, Construction and Design-Build

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Only PaCS staff are authorized to solicit and process contracts utilizing the OUS Retainer Agreement Program in accordance with OAR 580-063-0025 and 580-063-0030. 

The primary advantages of the Retainer Agreement Program over regular advertised projects are the savings in advertising costs, printing and mailing costs, and time.  Institutions do not have to advertise the projects.  The bidding period is also shortened, thereby getting the project underway quickly.

 

Procedure

To utilize the OUS Retainer Agreement Program for construction contracting services, contact Facilities Services at 541-737-2969 for assistance with scope, specifications, and document development.  Facilities Services and PaCS will solicit at least three contractors on the retainer list to participate in the bidding process.  A construction contract will be issued by PaCS to the lowest responsive and responsible bidder, with approval from Facilities Services and the department.

To utilize the OUS Retainer Agreement Program for professional consultants, departments must also work through Facilities Services, who will contact PaCS to determine the appropriate process for contacting a consultant on the retainer list and obtaining a written proposal for services. Once the proposal has been approved by the funding department and Facilities Services, the project or construction manager will request PaCS to issue a supplement.  PaCS will then issue a supplemental contract for these services.  See PCC 502-02.

504-02: Standard Advertised Bid for Construction

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Only PaCS personnel are authorized to solicit and process contracts utilizing the standard advertising process in accordance with OAR 580-063-0020.  Projects with an estimated construction cost of over $100,000 would follow the process for a standard advertised bid

Procedure

To advertise for a construction contract, begin by contacting Facilities Services at 541-737-2969 for assistance with scope, specifications, and document development.  FS will direct PaCS to proceed with putting the project out for bid once all design documents are developed and required review processes are completed.  PaCS will advertise on the OUS website, and possibly on the PaCS website and in local and trade publications, as well as provide documents to various plan exchanges throughout Oregon.  A construction contract will be issued by PaCS to the lowest responsive and responsible bidder, if the bids came within the anticipated budget, upon approval from Facilities Services and the funding department.

504-03: Professional Consultant Services

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

The selection and employment of architects, engineers, planners, surveyors and related professional consultants (collectively called “consultants” or “professional consultants”) for energy management, construction, construction management, facilities planning, improvements, repairs, deferred maintenance, technical services and related activities may only be accomplished through the designated authority of the Vice President of Finance and Administration, in accordance with OAR 580-063-0025.

Facilities Services must be contacted prior to the selection/management of professional consultants and their work.  Working in conjunction with Facilities Services, PaCS will recommend the appropriate solicitation procedure and develop the solicitation documents and contract form in compliance with the Oregon Administrative Rules.

Procedure

When using the OUS Capital Construction Retainer Program, the following procedure will be utilized, in accordance with OAR 580-063-0025:

  1. When the anticipated contract price (fees, reimbursable expenses, and amendments) is $100,000 or less, the University may select any qualified consultant firm from the retainer list.
  2. When the anticipated contract price (fees, reimbursable expenses and amendments) is between $100,000.01 and $250,000.00, the University will select a minimum of three firms from the retainer list to provide proposals to the University.  Selection of the consultant will be based on criteria provided in the solicitation document.
  3. When the anticipated contract price (fees, reimbursable expenses and amendments) is $250,000.01 to $1,000,000.00, the University will post an advertisement on the OUS procurement website, which provides the opportunity to all professional consultants on the OUS retainer list.  Selection of the consultant will be based on criteria provided in the solicitation document.

To employ a consulting firm which is not on the OUS retainer list, the following procedure will be utilized:

  1. When the anticipated contract price (fees, reimbursable expenses and amendments) is $25, 000 or less, the University may request a proposal from any qualified firm to provide consulting services.
  2. When the anticipated contract price (fees, reimbursable expenses and amendments) is between $25,000.01 and $100,000.00, the University may use an informal or formal procurement method as described in OAR 580-063-0020.
  3. When the anticipated contract price (fees, reimbursable expenses and amendments) is greater than $100,000, the University will use a formal procurement method as described in OAR 580-063-0020.

504-04: Construction Manager/General Contractor (CM/GC)

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

When factors other than price, such as a firm’s financial stability, project experience, ability to meet a specific schedule, experience of key personnel assigned to the project, etc., are desired to be taken into consideration when selecting a construction firm for capital construction projects, a project may be considered appropriate for the Construction Manager/General Contractor (CM/GC) process.

When a project’s direct construction cost is estimated to be greater than $5M, and/or the required completion date of the project requires an accelerated/phased construction schedule or other pertinent factors apply, the project is considered appropriate for the Construction Manager/General Contractor process in which the contractor provides consulting services during the design phase, and in some cases begins phased construction, beginning with site development, prior to completion of the entire building design.

Procedure

Working with Facilities Services Project Management staff, and in consultation with the funding department, PaCS develops an appropriate solicitation to secure the services of a contractor to provide CM/GC services.

504-05: BOLI Procurements

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

PaCS has established a procurement method for certain construction related procurements in order to comply with ORS 279C.800 through 279C.870 pertaining to the Bureau of Labor and Industries (BOLI) Prevailing Wage Rate (PWR) requirements.  All applicable BOLI procurements must be issued from PaCS, regardless of dollar value.  Departments and Business Centers have $0 in delegated purchasing authority for BOLI PWR projects.

BOLI prevailing wage rates apply on construction-related projects over $50,000 or on construction-related projects where $50,000 or more of labor and materials was provided within the same building (or site, in the case of the Agriculture Experiment Stations) within a 12-month window and the solicitation of all such services shall be processed through PaCS, regardless of dollar value. 

Purchase Orders may be utilized for those BOLI procurements that are:

  • generally valued at or under $25,000 or in some cases in excess of $25,000 where the procurement is mainly for equipment with minimal construction-related services for installation of the procured equipment. For those purchases exceeding $25,000, PaCS will review and determine the appropriate method of procurement
  • do not require or have obtained design or design related services
  • have no retainer contracts available for utilization 

Procedure

A fully completed and signed requisition (see PaCS 302), must be submitted to PaCS.  If the department has obtained 3 quotes, copies of the quotes must be included with the requisition submittal.  If the purchase is valued at $25,000 or less or being purchased off of an OSU contract or Price Agreement (See PaCS 315-002) PaCS will proceed with obtaining a final quote from the contractor utilizing the necessary BOLI solicitation and contractual language.  If no quotes are included and/or the purchase estimate exceeds $25,000, the PaCS analyst will issue the appropriate solicitation allowed under the OARs.  If the procurement is a sole source procurement in accordance with PaCS 314 then a Sole Source Justification form must be completed and submitted with the requisition. 

505 Bonds and Insurance

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Purpose

To provide information on the various types of bonding and insurance requirements.

Applicability

All OSU construction procurements and contracts.

 

PaCS personnel, Facilities Services personnel, and OSU personnel authorized to make construction-related services on behalf of the University.

505-01: Bid Bond

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

A bid bond or bid security requirement is stated in OAR 580-061-0090 and in the OUS Instructions to Bidders document.  Bid Bonds are required for all construction contracts not procured under the direct procurement process.  The bid bond is required at the time of bid submission and provides the University with a guarantee that if awarded the contract, the bidder will execute the contract and provide a performance and payment bond as required.

OSU requires the contractor to submit a bid bond, executed by the bidder and their surety, in an amount equal to 10% of the bid amount, at the time of bid submission.  A certified or cashier’s check may be submitted in lieu of a bid bond, in an amount equal to 10% of the bid amount.

Procedure

A standard OUS bid bond form is provided to each bidder upon procurement of plans and specifications for a construction project.  Instructions on bond execution are provided to the bidder in the OUS Instructions to Bidder included in the project solicitation documents.  The bidder must complete and have their surety execute the bond, then submit with their bid by the bid closing date and time.

505-02: Payment Bond

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

A payment bond is required at the time of contract execution, and provides a guarantee that all workers and suppliers providing labor, materials or equipment to the contractor awarded the contract, have an avenue for collection of payment should the contractor or any of its subcontractors fail to 1) pay workers or 2) pay for materials or equipment delivered for incorporation into the work of the project.  Payment bonds are required for all construction contracts, and may be required for purchase orders for construction-related services.

OSU requires the contractor to submit a payment bond, executed by the contractor and their surety, in an amount equal to the contract amount, after award and prior to execution of the contract on behalf of OSU. 

Procedure

A standard OUS payment bond form is provided to the contractor upon award of a contract for a construction project.  Instructions on bond execution are provided to the bidder in the OUS General Conditions for Construction Projects included in the project solicitation documents.  The bidder must complete and have their surety execute the bond, then submit with their signed contract form for execution on behalf of OSU.

505-03: Performance Bond

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

A performance bond is required at the time of contract execution, and provides a guarantee that all labor, materials, and equipment to be provided by the contractor awarded the contract will be provided should the contractor fail to complete the work to be delivered for incorporation into the work of the project.  Performance bonds are required for all construction contracts, and may be required for purchase orders for construction-related services on a case-by-case basis.

OSU requires the contractor to submit a performance bond, executed by the bidder and their surety, in an amount equal to the contract amount, after award and prior to execution of the contract on behalf of OSU. 

Procedure

A standard OUS performance bond form is provided to the contractor upon award of a contract for a construction project.  Instructions on bond execution are provided to the bidder in the OUS General Conditions for Construction Projects included in the project solicitation documents.  The bidder must complete and have their surety execute the bond, then submit with their signed contract form for execution on behalf of OSU.

505-04: Insurance

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

This policy pertains to all contracts for professional consultants and construction-related services, as defined in OAR 580-063-0010.

Coverage for (at minimum) general liability, auto liability, and worker’s compensation insurance is required at the time of contract execution, and provides for compensation to the University or other injured party should the contractor cause damage to OSU, public or private property in the performance of the contract, or should a worker, OSU staff member or member of the public be injured in the performance of the work.

OSU requires the consultant or contractor to submit evidence of coverage for liability and worker’s compensation insurance and is required prior to contract execution. 

Insurance requirements are included in the solicitation and contract documents, and are specific to the services being provided.  Additional forms of liability insurance are also required based on the type of services being provided.

505-05 Public Works Bond

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

ORS 279C.836 requires that a $30,000 Public Works bond be on file with the Oregon Construction Contractor’s Board for all contractors and subcontractors engaged to perform a Public Works project.  The OSU Construction Supplemental Instructions to Bidders additionally requires this bond to be in place prior to bidding.  In some cases, this bond may be waived for Purchase Order construction projects when the value of the work to be performed is less than $25,000.

505-06 Payment Bond Waivers

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

BOLI statute requires that before starting work on a contract for a Public Works project, a contractor or subcontractor must file with the contracting agency a payment bond issued by a corporate surety authorized to do business in Oregon in the full amount of the contract.

ORS 279C.625 holds the State of Oregon and the Contract Officers authorizing the contract jointly liable for the labor and materials used in performance of any work under the contract and for claims due the Industrial Accident Fund, the Unemployment Compensation Trust Fund and the Department of Revenue, on any contract that neglects to require the person entering into the contract to execute the payment bond.

While OSU must require Payment Bonds for all purchase orders subject to BOLI PWR, OSU has determined that it may be in the best interest of the University to waive the requirement for Payment Bonds on purchases with a total value not to exceed $50,000.  There may be instances where there is little risk involved and requiring the contractor to provide a payment bond may substantially impact the cost of the contract.

Policy

For Public Improvement projects or for on-site services portions of mixed contracts with total values of less than $50,000, the determination of whether or not to waive the Payment Bond will be based on the following:

  • Contractor’s performance and payment history with OSU or other Institutions and Entities;
  • The ratio of goods to on-site services;
  • The value of the contract or the on-site services portion;
  • Whether other contracted construction or installation services are being held at the same general time and within the same general area of the job site;
  • The contractor’s experience specific to the type of services being contracted
  • Whether or not the purchase is for furniture or carpet placed off of an OSU Contract or State of Oregon Price Agreement.  Special consideration may be given for these purchases;
  • Contractor’s financial standing;
  • Other factors that may indicate possible risks

PaCS will be the final authority on whether to waive any Payment Bond in these instances with consultation and a decision by the Associate Director of Facilities Design and Construction or Construction Contracting Supervisor.  The act of waiving the requirement of a Payment Bond does not influence or impact the other necessary requirements such as other types of bonds or insurance.

506 Contractors

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

506-01: Communication During the Competitive Process

To ensure fairness and provide consistent information to all potential bidders, all communication between OSU staff and potential bidders during a procurement process must be channeled through the individual PaCS staff member managing the procurement.

Procedure

All questions from potential bidders are to be directed to the PaCS staff member managing the procurement, who will then contact the Facilities Services or department project manager to obtain the requested information.  The PaCS staff member will then issue a formal addendum to all potential bidders.  Should OSU project management staff or the design consultant for the project become aware of information that potential bidders should take into consideration in the development of their bid, the PaCS staff member managing the procurement should be notified of the issue, and a formal addendum prepared for issuance to all potential bidders.

507 Other Construction Considerations and Processes

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

507-01: Funding Sources/Implications

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Projects are funded by a variety of funding sources and there are different requirements associated with spending/accounting for the different sources:

a)    Bond funds,

b)    Education and General Funds,

c)    Gifts,

d)    Grants or Contracts, and

e)    Student Fees

  1. There are two types of costs associated with Federal grant or contract funds; direct and Facilities and Administrative (F&A) (formerly “indirect costs”).  Direct costs are expenditures associated with grants, contracts, and cooperative agreements that are necessary for, and can be identified with, the performance of a specific sponsored project. Facilities and Administrative (F&A) costs are expenditures associated with a grant, contract or cooperative agreement that cannot be directly charged to nor specifically identified with individual sponsored projects.  These costs include maintenance of physical facilities, library services, administrative services, and departmental administration.
  2. Construction projects funded by Federal grant funds may have specific requirements for: information included in the solicitation, payment of wages to construction workers, specific approvals required by the funding agency for hiring of consultants or execution of construction contracts, etc.  PaCS must be informed of the funding source if Federal funds are part of the project funding and any specific requirements of the grant conditions that may affect procurement procedures, terms or conditions prior to the solicitation.

Refer to Budget Policies and Procedures for further information.

507-02: Bureau of Labor and Industries (BOLI) Prevailing Wage Law

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

ORS 279C.800 - 870 governs the requirements of BOLI prevailing wage law on public works projects.

BOLI prevailing wage rates apply on projects where total contracted value exceeds $50,000, or on projects where $50,000 or more of contracted labor and materials was provided within the same building (or site, in the case of the Agriculture Experiment Stations) within a 12-month window.  Projects subject to BOLI prevailing wage law must be processed through PaCS, regardless of dollar value of the individual purchase.

Procedure

For all projects subject to BOLI prevailing wage rate law, the Purchase Requisition and/or request must be submitted to the PaCS office, via email, fax, or hand-delivery.

See also PaCS 504-05 BOLI Purchase Orders.

507-03: BOLI Fees

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Per OAR 839-025-0200, Oregon State University is required to pay BOLI a fee for each contract where BOLI prevailing wage rates apply in the amount of one tenth of one percent of the contract amount.  However, the fee may be no less than $250 and not more than $7,500, regardless of the contract price.

Procedue

PaCS personnel, upon execution of a contract or a purchase order, must notify BOLI of the contract award using forms provided by BOLI.  In addition, the PaCS analyst must submit the BOLI Payment Information form and the BOLI Request for Payment Form to the Auxiliaries and Activities Business Center (AABC).  AABC will then process the payment of the BOLI fee and back-charging the funding department.

507-04: Procurement Method Determination

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

While OSU may elect to act as the “general contractor” on small construction-related procurements by issuing separate contracts or purchase orders for different trades and/or portions of the work, this process is not appropriate for all projects, and will generally be limited to projects with a total direct construction value of less than $100,000 and consisting of no more than three separate work packages (i.e. furniture, flooring, and painting) with no less than two of those services being procured through an existing price agreement.

For Public Improvement projects or for on-site services portions of mixed contracts with total values of less than $100,000, the determination of whether or not to permit multiple purchase orders/contracts will be based on the following:

  • Project includes mechanical, electrical and/or plumbing trades;
  • The ratio of goods to on-site services;
  • Whether other contracted construction or installation services are being held at the same general time and within the same general area of the job site;
  • Complexity of the work;
  • Project requires professional design services;
  • Availability of in-house project management services; and

Other factors that may indicate possible risks.

Procedure

PaCS will be the final authority on whether to issue a single “general contractor” procurement or issue multiple purchase orders/contracts to construct the project in these instances with consultation and a decision by the Design and Construction Associate Director or Construction Contracting Supervisor.  The act of splitting the construction delivery packages does not influence or impact the other necessary requirements such as types of bonds or insurance required, alter the applicability to Oregon Prevailing Wage law, etc.

507-05: Amendments and Change Orders

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

An amendment to a consulting contract for additional services that is reasonably related to the scope of Work under the original contract, including extra work or other change in the original scope of work that increases the original contract price or length of time, may be made with the consultant without using a competitive process provided that the amendment does not materially alter such a Contract.

A change order to a construction contract for additional services or materials that is reasonably related to the scope of Work under the original contract, including extra work, field orders or other change in the original Specifications that increases the original contract price or length of time, may be made with the contractor without using a competitive process provided that the change order does not materially alter such a Contract.

Upon determination by the OSU project manager that an adjustment to the contract is required, the project manager shall obtain from the contractor or consultant a description of the specific services to be added or deleted, along with back-up for any changes in price due to an increase or decrease of services or materials and provide that information to PaCS. 

Procedure

Upon PaCS’ review of the documents provided to ensure changes are in compliance with contract terms and conditions, PaCS will prepare the appropriate change order or contract amendment, obtain any necessary reviews or approvals (legal , etc.), and present the document to the contractor or consultant for signature.

507-06: Sustainability

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

In 2000 Executive Order E0-00-07 was issued by John A. Kitzhaber, M.D., Governor of Oregon.  This Executive Order directs all State of Oregon agencies and employees to develop and promote policies and programs that will help Oregon to meet a goal of sustainability by the year 2025.

All major facility projects will be planned, designed, constructed, and renovated to meet high performance building standards for energy efficiency and environmental sustainability as defined by the Department of Energy and the State of Oregon.

Green building design and construction is an integral part of OUS Capital Construction.  Institution projects should consider design standards that incorporate the “Leadership in Energy & Environmental Design” (LEED) Silver standards or higher standards, which promote buildings that significantly reduce or eliminate the negative impact of buildings on the environment and occupants.

507-07: Final Acceptance – Substantial Completion

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

Substantial completion occurs after a minimum of 30 days of trouble-free operation and/or when OSU personnel occupy and begin to use a space that has been under construction or renovation, and when all warranties for a project become effective. 

Final Acceptance occurs when the contractor has completely finished the work associated with the project including provision of the record documents and the University is ready to release final payment to the contractor.

Procedure

After 30 days of continuous, trouble-free operation of a newly renovated or constructed space or building, the Facilities Services project manager, along with the contractor, determine the date of substantial completion.  At this time, OSU personnel can begin to occupy the renovated or constructed space and the space has been put to its intended use.  The Facilities Services project manager may send a written request to the PaCS office to send a letter of substantial completion to the contractor, which will dictate the date that warranties become effective. 

Once the Facilities Services project manager deems it appropriate and is prepared to release final payment to the contractor, he or she will send another request to the PaCS office to close out (See PaCS 507-08 Closeouts) and accept the project in its entirety.  This letter authorizes the contractor to submit for final payment and is sent to Facilities Services Accounting to inform them of the accepted project.

507-08: Closeouts

Procurement and Contract Services Policy & Procedures Manual
Section 500: Construction
Effective: 7/01/2010
Revised: 3/19/2013

 

All construction projects contain a requirement for the contractor to provide official “Record Documents” before Oregon State University (OSU) formally accepts a project and warranties for the installed work become effective at substantial completion.  This ensures that OSU has complete information regarding building infrastructure, materials used, and operating and maintenance information for any equipment or systems installed, and all specified warranties.

All construction contracts are subject to provision of specific documentation upon completion of the project.  These requirements are set out within the contract documents.

Procedure

When a project has been completed, the contractor will prepare two sets of the record documents for submittal to the appropriate project manager, who then reviews them for compliance the project manual.  The project manager will email PaCS that the project is ready for final acceptance.

PaCS will review the project specifications to ensure all required warranties and other documents have been included in the record documents.  If all materials have not been provided, PaCS contacts the project manager who works with the contractor to make any required changes or provide the required warranty. 

Original required warranties are pulled from the record documents and are filed with Facilities Services for any possible use during the warranty period.  One complete set of the record documents are forwarded to Facilities Services for permanent record storage.  The second set of the record documents goes to the Operations section of Facilities Services for maintenance purposes or to the affected department (University Housing & Dining Services, Athletics, and Memorial Union) to maintain.

Manual Revision Record (MRR)

Procurement and Contract Services Manual
Section: Manual Revision Record
Effective: 04/27/2005

2014

Date Policy Summary of Change
3/14 303-004: Purchase Order Terms and Conditions updated links
3/14 303-009: Purchase Order Trade-Ins updated link to PCC 301-008
3/14 202-002: Purchase Authority updated Dollar Threshold numbers
3/14 317-001: Visiting Campus updated links

2013

Date Policy Summary of Change
01/11 203-002: Ratification of Unauthorized Purchases or Contracts Updated entire section
01/11 003: Exhibits

Updated exhibits for

01/11 103-003: Purchase/Payment Fragmentation Added Payment to title and text
3/12 301: Purchasing
Added reminder that departments and BC should have their agreements vetted for other department policies
3/12
301-007: Vehicle Purchase and Leasing (Passenger Vehicles) minor updates 
3/12 301-012: Audit Services Deleted.  Public Entities Outside the State of Oregon - Chapter 190 approval removed due to SB 242.  legal review no longer required.
3/12 301-012: Audit Services Added new policy "Audit Services".
3/12 301-013: Legal Review Changed to reflect post SB 242 changes
3/12 301-001: Facility Modifications Updated to reflect BOLI PWR considerations
3/12 303-002: Business Center Purchase Orders Updated to reflect BOLI PWR considerations.  Reference made to exceptions.
3/12 303-003: Departmental Purchase Orders Updated to reflect BOLI PWR considerations.    
3/12 303-005: Purchase Order Changes and Cancellation Changed to reflect Banner system limitations
3/12 303-006: Purchase Order Completion grammatical changes
3/12 303-110: Exchange of OSU Goods or Services for Discounts "Generally" added at beginning of sentence
3/12 303-012: Purchase Order Exception List This section was broadened to include more categories as allowed.  Procedure was added and 
3/12 304: Invoices Corrected grammatical errors and clarified invoice "Completion".
 
Department titles updated.  Linked to FIS Policy 1108 Approval Routing 
3/12 305: Commodities Prohibited for Purchase with State Funds website links updated
3/12 306: Purchasing and Payment Methods Clarification added
3/12 306-001: Procurement Card Procurement card link added
3/12 306-002: Purchase Orders clarifications added
3/12 306-003: Store Credit Accounts and Applications grammatical changes and clarification of the process added
3/12 306-005: Auto Pay Vendors Links added and department name clarified
3/12 306-005: Auto Pay Vendors department name clarified
3/12 307-003: Environmental Education Grammatical changes
3/12 308: Informal Solicitations Grammatical changes
3/12 308-001: Request for Quotes (RFQ) grammatical changes
3/12 309: Formal Solicitations Grammatical changes
3/12 309-002: Request for Proposal (RFP) Grammatical changes
3/12 312-002: Additional Purchase Based on a Previous Solicitation Changed to reflect SB 242 changes
3/12 312-005: Sourcing website links updated
3/12 312-007: Pre-Proposal/Pre-Bid Meetings grammatical changes
3/12 312-008: Solicitation Questions Clarification added 
3/12 312-010: Determination of Responsiveness grammatical changes
3/12 312-011: ITB/RFP Department Review grammatical changes and clarification of the process added
3/12 313: Purchases Exempt from Competition removed listing and referenced Oregon Administrative Rule since the listing was confusing
3/12 315: Purchasing from Existing Contracts Clarification added
3/12 315-001: OSU Contracts and Price Agreements Grammatical changes
3/12 315-003: Western States Contracting Alliance website links updated
3/12 315-005: Other Contracts and Cooperatives Clarification added
3/12 315-006: Contracts Issued By Other Public Agencies Clarification added and changed made to reflect SB 242 changes
3/12 316: MWESB, Qualified Rehabilitation Facilities and Oregon Commission for the Blind Grammatical changes
3/12 316-001: Minority, Women, and Emerging Small Businesses (MWESB)Affirmative Action Changes made to reflect OUS MWESB policy now in place
3/12 316-002: Qualified Rehabilitation Facilities (QRF) grammatical changes
3/12 317-001: Visiting Campus reference to smoke-free-campus policy made
3/12 317-002: Vendor Parking minor updates to reflect TAPS parking policies for vendors
3/19 500: Construction Updated all sections under 500
3/19 003: Exhibits Removed link for Request for Ratification of an Unauthorized Commitment Form
4/30 312-006: Legal Review updated entire section
6/25 302-002: Purchase Requisition PRocessing Timeline Replaced $99,999.99 with $149,999.99 to reflect new formal procurement level per updated OAR
6/25 308: Informal Solicitations Replaced $99,999.99 with $149,999.99 to reflect new formal procurement level per updated OAR
6/25 309: Formal Solicitations Replaced $100,000 with $150,000.00 to reflect new formal procurement level per updated OAR
8/1 003: List of Exhibits Updated link for Business Credit Information
12/24 101: Employee Ethical Conduct Updated to add and include c) The Employee must complete the "PaCS Disclosure of Real or Potential Conflict of Interest" form and submit to PaCS for review.

2012

Date Policy Summary of Change
4/16 401-007 Non-Negotiable Public Contracts removed section
11/20 000: Introductory Material Updated PaCS Manager title to Chief Procurement Officer.  Added and removed some definitions
11/20 100: Introduction Updated PaCS Manager title to Chief Procurement Officer.  
11/20 200: Authority and Records Removed references to pre-Senate Bill 242 requirements.  Updated PaCS Manager title to Chief Procurement Officer. 

2011

Date Policy Summary of Change
12/21/2011

200: Authority and Records

Updated content throughout entire section
10/04/2011 001: Introduction Removed 1st paragraph
09/23/2011 000: Introductory Material 8/5/11 Updated some introduction and  definitions.  Removed some definitions that aren't utilized in the Policies and Procedures Manual.  Removed some exhibits from 002 and added Exhibit "NOTICE OF POTENTIAL OR REAL CONFLICT OF INTEREST" and "COMMODITY LEASE INTAKE FORM".  Removed 004 Frequently Asked Questions. UPDATE- 09/23/11 Added definition for Trade Services
08/05/2011 100: Purchasing and Contract Ethics Section 101-002 Contracting with Current and Past OSU Employees previously under development was added under new title "Purchasing from or Contracting with OSU Employees, Relatives of OSU Employees or Member of the OSU Employee's Household.  101-003 OSU Employee Honorarium Guideline updated.  Added a Notice of Potential or Real Conflict of Interest form.  101-006 Personal Purchases using OSU Contracts updated.  102-004 Endorsement added.  103-001 Authority to Purchase changed to Authority to Purchase or Enter into Contracts and moved to 103-002.  103-001 now Ethics Statement for Employees in the Procurement Process - new policy and procedure per OAR and new process facilitated through OUS.  Subsequent titles moved down and renumbered.  104-001 Declaration of Conflict or Potential Conflict of Interest updated.  104-003 Conflict of Interest Violations Pertaining to Use of Federal Funds added

2010

Date Policy Summary of Change
01/04/2010 All Complete revision of all policies and procedures implemented due to new Oregon Adminstrative Rules in 2008 and removal of Research Contracts from PaCS in 2006

2008

Date Policy Summary of Change
10/17/2008

PaCS 303
Bidding Process

Updated link to Microsoft Work-AT-Home Distribution Procedures.

2/01/2008

PaCS 302-02
Bidding Process

Corrected dollar level under "Guidelines for Procurements."

2007

Date Policy Summary of Change
4/19/2007

PaCS 200
Research Contracting & Subcontracting

This section has been removed from the PaCS.

Policy and Procedures manual as it is now under the administration of the Office of Sponsored Programs. (Please see their manual for guidance.)

2/28/2007 PaCS 101-04
OSU Internal Controls Policy
Changed language from "Purchasing Authority Guidelines and Purchasing Authorization" to "Departmental Purchasing Guidelines" in the Departmental Expenditure Authorization section, and made minor textual edits. 

2006

Date Policy Summary of Change
11/09/2006 PaCS 101-04
OSU Internal Controls Policy
Updated compliance guidelines for department authorization designations.
9/13/2006 PaCS 403
Personal Service Invoice (PSI) vs. Personal/Professional Services Contract (PPSC)
Changed "FY" in the first bullets under Policy to "calendar year."
7/17/2006 PaCS 101-02
Department of Justice (DOJ) and Other Reviews and Thresholds
Added or updated the information in the first two bullet points in the POLICY section under "For Construction Processes" pertaining to "$25,000 - formal construction process threshold" and $50,000 - Bureau of Labor & Industries (BOLI) threshold per project (not per contract).
PaCS 304-02
Oregon Bureau of Labor and Industries (BOLI) Prevailing Wage Law (PWR)
Updated the APPLICABILITY section.
PaCS 304-04
Bidding Process
Updated the DEFINITION section and the POLICY section for contracts for projects using a non-standard (RFP, Design/Build or CM/GC) procurement process.
PaCS 304-012
Timelines
Revised what types of contracts need to be sent to the Department of Justice for legal sufficiency review in PROCEDURE section under "A".
PaCS 304-14
BOLI / Prevailing Wage Rate Payment Bonds
Integrated information into 304-02: Oregon Bureau of Labor and Industries (BOLI) Prevailing Wage Law (PWR) and Payment Bonds.
5/01/2006 PaCS 101-03
Signature Authority
Updated the list of personnel who have signature authority.

2005

Date Policy Summary of Change
12/22/2005 PaCS 301
Preferred Purchasing and Payment Methods for Small Dollar Purchases (Procurements Under $5,000)
Added information that prohibits personnel from using purchasing methods for the sole purpose of obtaining personal rewards (e.g. airline mileage on personal credit cards, rebate programs including personal Costco accounts and other credit cards, etc.).
6/30/2005 PaCS 302-06
Procurements not Requiring a Purchase Order (PO)
Added additional commodities and services to the list of items not requiring a purchase order (PO) in the policy section.
PaCS 304-14
BOLI / Prevailing Wage Rate Payment Bonds
Added policy to PaCS manual.
4/27/2005 All PaCS policies and procedures Combined Purchasing Manual & Contracts Handbook to create the PaCS Manual. Updated all policies and procedures and reformatted contents to comply with the PPMM Program.