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: 7/15/2014

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

Financial Accounting & Analysis maintains current W9’s for the University.  There is one Tax ID number used by all Oregon State University units for expenditure transactions, purchases, and/or revenue transactions.  The name listed on the W9 is “Oregon State University”.  The name listed on the W9 is in accordance with the Internal Revenue Service records and should not be changed.  Departments will not be issued separate W9 forms.

Units 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 form on file using the appropriate Tax ID number.  If the vendor does not accept the IRS W9 and requires the alternate W9 to be completed, send it to PaCS for processing.

OSU’s Tax ID number is a sensitive data element, and accordingly university staff are asked to be prudent in its use and to safeguard access and distribution of this information.  The Tax ID number should only be utilized when it is necessary for staff and employees to conduct official OSU business.  It is inappropriate for student organizations to have access to, and use of the OSU Tax ID number as part of the process to establish their organizational structure and associated activities.  Student groups are considered separate legal entities that are external to OSU and should use their own Tax ID number for these purposes.

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: 6/10/2014

 

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

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 State University Business and Bid Opportunities website.

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 OSU must ensure sufficient solicitation efforts be utilized to provide such opportunities.  

OSU 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 QRF 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 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: 6/10/2014

 

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. OSU has also adopted policies applicable to all Vendors/Contractors that prohibit sexual harassment and that the Vendor’s/Contractor’s company and employees are required to adhere to institutional policies prohibiting sexual harassment in their interactions with members of the institutional community.

 

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.

 

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.