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General Procurement Services Policy

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  A. General Policy

  This policy outlines the procedures to be followed by all University personnel engaged in a purchasing transaction.

  The function of the Procurement Services Department is to centralize purchasing services for the University. By providing this service in accordance with sound business practices, the Procurement Services Department seeks to realize the maximum value of every dollar the University expends. The University is committed to both the adequacy of internal control over transactions and reduction of the administrative costs of acquiring goods and services.

  The actions of the Procurement Services Department directly influence the public perception and image of the University. Therefore, the highest possible standards of business ethics, professional courtesy and competence are required.

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  B. Authority for Purchasing

  Procurement Services Department personnel are authorized to commit the University for materials, equipment supplies and services. In such cases, the Procurement Services Department has the responsibility for making the final determination of source of supply and price. The authority to issue Purchase Orders shall be vested in the Procurement Services Department and each order shall bear the signature of the Director or Buyer.

  The authority to purchase is based on verification that all allocations are approved and budgeted in the current fiscal year.

  All funds, regardless of their source, are considered to be University funds and are to be expended according to University policies and procedures. No individual may make a purchase directly by letter, telephone, fax or any other means. Purchases made without the proper approvals and procedures may become the personal obligation of the person originating such purchases.

  Approval authority

  The following administrators are authorized to approve expenditures on behalf of the University:

  Administrators authorized to approve expenditures

  Authorized Signature	Amount of Purchase
  For Academic and Student Service Areas: Associate Deans, Assistant Deans, Directors and Chairs	$0-$2,500
  Academic Unit Dean or Administrative Department Director, Associate Vice Presidents	$2,501-$10,000
  Vice President	$10,001-$50,000
  President	More than $50,000

  An individual cannot approve expenditures for which she/he is the payee, such as with an expense reimbursement or travel advance, or if she/he is the direct beneficiary such as membership dues, conference fees, or cell phone charges.

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  C. General Responsibilities

  Procurement Services Department

  1. Pre-qualifying suppliers with joint input from the requisitioning Department.
  2. Preparing Requests for Quotations (RFQ).
  3. Receiving and evaluating quotations.
  4. Negotiating with suppliers.
  5. Awarding the business for supply of goods or services.
  6. Releasing award information.
  7. Monitoring all purchasing activities for compliance with purchasing policies and procedures.
  8. Establishing and maintaining standards of quality.
  9. The Procurement Services Department acts as a resource in assisting academic and administrative areas to achieve their objectives in terms of cost, vendor selection and projected purchases in relation to special projects. Procurement Services also provides cost estimates in order to assist departments in budget preparation.

  Requisitioning Department

  1. All requisitions over $10,000 must have: a contract or three competitive bids or a bid waiver.
  2. Preparing purchase requisitions.
  3. Allowing Procurement Services Department reasonable lead time for processing orders (Contact Procurement Services for lead time, which varies depending on the product).
  4. Providing accurate specifications when requested.
  5. Assuring that contract and grant requirements are met.
  6. Verifying that funds are available and securing the appropriate budget manager's signature.
  7. Verifying delivered orders for accuracy.
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  D. Code of Ethics and Conflict of Interest

  All employees are required to comply with the University's policy on Conflict of Interest and Code of Ethics. The University is a member of the National Association of Educational Buyers (NAEB) and has adopted the NAEB Code of Ethics which appears in Appendix A.
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  E. Vendor Selection

  Vendors shall be selected based on their ability to service the needs of the University in the most economical and efficient manner. It is the policy of the 91¸£ÀûÉç to provide equal opportunity to all vendors.

  The requisitioning department may indicate suggested vendors. The final selection of a vendor is made by Procurement Services, in collaboration with the requisitioning department.

  Only personnel authorized to obligate the University in a purchase transaction may formally refer vendors to Procurement Services Department.

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  F. Requests for Bids

  The Procurement Services Department, in collaboration with the requisitioning department, solicits competitive quotations or bids in accordance with the following guidelines:

  
  

  Competitive Quote or Bid Guidelines

  Amount of Purchase	Guideline
  up to $10,000	The Procurement Services Dept. decides whether or not to solicit quotations depending on the competitive nature, price of the items required, and risk factor.
  $10,001 and up	The Procurement Services Dept will obtain or require that the requesting department obtain at least three competitive written quotations. Sole source purchases will submit a Bid Waiver that may be obtained from Purchasing. Exceptions are determined by the Procurement Services Dept. depending on the competitive nature, price of the items required, and risk factor.

  
  

  The Procurement Services Department is responsible for assuring that all quotations submitted by vendors meet the quality standards that are stipulated by the requesting department.

  An exception is made (1) in the case of repetitious purchasing of standard items and (2) for items available only from a sole source.

  For consumable supplies and contracted services, bids will be renegotiated on a periodic basis; in most cases a Blanket Purchase Order will be issued annually. Procurement Services, in cooperation with the requisitioning department, will select vendors.

  In the event that the requisitioning department has obtained the quotations directly from the vendors, the documentation supporting these quotations must accompany the requisition that is sent to the Procurement Services Department. Proposals, bids or any other original documentation pertaining to the order are to be filed in the Procurement Services Department.

  Quoted prices are to be held in confidence by the person responsible for purchasing and each transaction shall be considered on its own merits. Bids and price information are considered confidential and are not to be shared with competing vendors.

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  G. Delivery

  Mail Services is the control point for all goods received by the University. In some instances, however, arrangements are made to ship to another designated location.

  Delivery time varies by product, company and according to the availability of the item. If an order is not received by the promised delivery date or within seven to fourteen working days, the requisitioning department should call Procurement Services for a status report on the order.

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  H. Shortages and Damages

  Each requestor is responsible for facilitating their own returns. Shortages should be addressed with the vendor.
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  I. Return Merchandise

  In the event that a department needs to return merchandise to a vendor, the department needs to contact vendor to retain the Return Authorization number before returning the item.

  If the account is credited - please make Accounts Payable (AP) aware. Credit memos should be sent to AP at accountspayable@udmercy.edu.

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  J. Invoices

  All invoices must be sent directly to Accounts Payable at accountspayable@udmercy.edu rather than to University departments to expedite a timely payment.

  Invoices are required in order to initiate the payment process. Invoices that relate to properly approved purchase orders or contracts do not require any further approvals. Invoices which have not been approved through the purchase order or contract procedure will be forwarded to the respective department to start the approval authority process.

  If for any reason the invoice should not be paid, the requesting department needs to notify Accounts Payable immediately.

  In the case of a discrepancy in information between the invoice and the purchase order, the Procurement Services Department must resolve the discrepancy.

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  K. Types of Orders

  • Purchase Requisition – this represents the internal authorization document to commit the University to make the requested expenditure. It must contain adequate explanation of the goods or services and be authorized in accordance with Section B of this policy.
  • Purchase Order – this represents the commitment document from the University to the vendor for the purchase of the goods or services. It must be signed by the Procurement Services Director or Buyer.
  • Blanket Purchase Order – this represents general authorization to make purchases of goods or services from a specific supplier up to a stated amount. This is generally used when purchases must be made for various departments or cover an extended period of time.
  • Revision of Purchase Order (Change Order) – represents a change to the previously issued Purchase Order. The appropriate signature approvals are obtained in accordance with Section B of this policy whenever such revisions are requested.
  • Contract Approval Signature Form – must be used whenever the nature of the expenditure requires that the University must sign a contract or agreement document. In addition to the signatures required in Section B of this policy, the Contract Approval Signature Form requires the approval of the Controller's Office, the Budget Office and the 91¸£ÀûÉç Senior Attorney. The signature of the President is required on the Contract Approval Signature Form for all contracts and agreements that exceed $50,000. Only the President and Vice Presidents are authorized to sign the respective contract or agreement document.
  • Check Request – the Check Request Form may be used to make a cash disbursement when other disbursement documents will not be available for the transaction. It must contain adequate explanation of the goods or services and be authorized in accordance with Section B of this policy. The approver of the document cannot be the payee.
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  L. Prepaid Orders

  In the event that a vendor requires full or partial prepayment of an order, the requisitioning department must obtain an invoice from a vendor. Once the requisition is submitted, reach out to Purchasing to provide the requisition number in question. There will be additional processing time for such transactions in order to comply with the Accounts Payable Check Processing schedule.

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  M. Emergency Orders

  In the event services or supplies are needed in an emergency, the requisitioning department will notify the Procurement Services Department of the urgency of the item, after submitting a requisition.
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  N. COD

  The University does not pay cash on delivery (COD) for purchases.
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  O. Sales Tax

  The University is exempt from Michigan State Sales and Use Tax. The tax exempt number is stated on the Purchase Order. Upon request, the Procurement Services Department will furnish a State tax exemption document.
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  P. Restricted Funds

  Restricted funds are provided by various government agencies and private donors for specific University projects. Use of such restricted funds is controlled by the conditions, rules and regulations of the funding source, as well as by applicable University guidelines.
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  Q. Specific Purchases and Services

  1. Service Contracts, Consulting Services, Maintenance Agreements and Leases
     (excluding employment), leases and rentals must be submitted to the Procurement Services Department for review and approval prior to entering into an agreement with the company.  A copy of the agreement will be maintained on file.  In addition to the approval signatures discussed in Section B and Section K, refer to Section C for purchases over $10,000. However, if the contract is for a highly specialized service where a public bid would not be appropriate, a bid waiver may be requested. 
     
     
  2. Travel/Conference Registration
     Generally, Purchase Orders are not used for travel, conferences or seminars. The "Travel Request Form," must be completed and returned to Accounts Payable (Find Forms). When air travel is required, a TR number is assigned when you request a TR Number from accountspayable@udmercy.edu.  Employees are required to submit an approved Employee Expense & Reimbursement Form within 30 days of their return from the business trip. Please refer to the separate instructions and detail policy for Travel Expenditures.
      
  3. Moving/Relocation
     When employment at the University requires a new employee to relocate, the President may authorize payment of moving expenses by the University. Departments are to submit their request to Procurement Services on a Purchase Requisition. Contact Human Resources with questions.
     
     
  4. Personal Purchases
     Because of the tax-exempt status of the University, the Procurement Services Department cannot issue purchase orders for personal purchases. Vendors may not offer discounts to employees unless there is a University-wide program that is available to all employees.
     
     
  5. Construction, Renovation and Refurbishing
     All requests for construction, renovation and refurbishing must be approved by Facilities Operations. As a general rule, requests for such expenditures should be submitted as part of the annual budget process so they can be considered for inclusion in the deferred maintenance and capital expenditures plan. .
     
     
  6. Copiers
     Procurement Services is responsible for the selection, purchase and maintenance contract for all University copiers. Questions regarding copiers or service should be directed to Millenium at 313-993-1661.
     
     
  7. Office Supplies
     See 
     
     
  8. Purchase of Computer Hardware, audio-visual equipment, software, and telecommunications equipment
     To acquire the above, University departments are to consult with with the Information Technology Services Dept. (ITS) Pre-Purchase/Inventory Dept. before initiating a requisition to verify existing products are not already owned by the university or to ensure their compatibility within the University's environment. See ITS Quote Information.
     
     For acquisitions that occur outside of the standard requisition process such as PCard purchases, University Amazon orders or reimbursement purchases, the requesting department remains responsible for consulting with ITS prior to the acquisition.  If not approved, ITS will not support. Approval of PCard transactions and reimbursement is to be secured from ITS prior to purchase.
     
     
  9. Printing — Routine duplicating jobs must be handled through the Copy Center. Printing jobs that are considered high-end require three written quotations, one of which must be from Hatteras. Such quotations must be attached to the Purchase Requisition that is forwarded to the Procurement Services Department. Each high-end printing job must have a separate Purchase Order. See Printing Services
     
     
  10. Mail Services — 91¸£ÀûÉç uses a centralized approach for providing mail services in order to minimize costs and maximize efficiency. Accordingly, all requests for such services must be handled through the Mail Services Department.
      
      

  11. Gift Cards — Gift cards can be purchased from two preferred vendors:

      • Amazon Capital Services (T02139705) 
        Amazon gift card purchases require access to our gift card sub-group on the Amazon website. Access can be obtained by emailing purchasing@udmercy.edu. A purchase order is still required, but you will be prompted to provide the credit card number at checkout.
        

      • Telenations Inc. dba Giftogram (T0276169).
        When using Giftogram, be sure to request physical cards as some have had difficulty with paper or email versions.

  All gift card purchases require: a record of who received a card, amount, date of receipt and their initials for supporting documentation and audit purposes. Please forward this information to accountspayable@udmercy.edu.

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  R. Unallowable Expenditures

  In accordance with University policy, the following expenditures are NOT considered legitimate charges against the University budget:

  • Office refreshments, including coffee makers and supplies.
  • Flowers, greeting cards and personal gifts.
  • Holiday decorations.
  • Personal ornamental items for offices.
  • Personal expenditures of any type.
  • Any expenditure not supported by a valid invoice from the person selling such goods and services.
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  S. Surplus Property

  Excess and surplus property (e.g., office furniture) is maintained, distributed and/or disposed of by Facilities Department.
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  Appendix A

  Procurement Services Department Code of Ethics

  The University is a member of the National Association of Educational Buyers (NAEB). The University has adopted the following NAEB Code of Ethics:

  1. Give first consideration to the objectives and policies of this institution.
  2. Strive to obtain the maximum value for each dollar of expenditure.
  3. Decline personal gifts or gratuities.
  4. Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permits.
  5. Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
  6. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement or a sample of the product.
  7. Receive consent of the originator of proprietary ideas and designs before using them for competitive purchasing purposes.
  8. Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier, and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of this institution permit.
  9. Accord a prompt and courteous reception, insofar as conditions permit, to all who call on legitimate business missions.
  10. Cooperate with trade, industrial and professional associations and with governmental and private agencies for the purpose of promoting and developing sound business methods.
  11. Foster fair, ethical and legal trade practices.
  12. Counsel and cooperate with NAEB members and promote a spirit of unity and a keen interest in professional growth among them.

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  I. Definitions/Forms

  1. "Employee" — any officer, administrator, faculty member, or staff member who submits a claim for travel reimbursement and is entitled to actual, reasonable and necessary expenses.
  2. "Authorizing Signer" — the appropriate Vice President, Associate Vice President, Dean, Associate Dean, Manager or Department Head with budgetary responsibility who is designated to authorize travel for University purposes.
  3. Responsibility of the Authorizing Signer:
     1. To attest the University's Policies and Procedures have been read and understood and the expenditures being authorized adhere to those policies.
     2. To attest the expenditure is for official University business and is authorized based on the needs for the University.
  4. Conflict in Terms

     If differences or inconsistencies exist between this policy and any union agreement, the terms and conditions of the union agreement shall be controlling.

  5. Travel Request Form

     The Travel Request form (TR) is used to preauthorize the employee's travel. The form is to be filled out by the employee when making flight reservations through Carrousel Travel. The travel authorization number (TR#) issued by Accounts Payable must be given to Carrousel Travel when making flight reservations. (See Section II A).

  6. Employee Advance Request Form

     Subject to the approval of an authorizing signer, travel advances may be issued when an employee's estimated travel expenses are expected to exceed $250. Estimated expenses should be detailed on the Employee Advance Request form and submitted to Procurement Services. For the Employee Advance Request form and Travel Advance Request instructions document, see the Forms page. Please note that all travel advances will be paid to the employee as a direct deposit. (See direct deposit instructions in Section XI) Employees wishing to receive a travel advance must enroll in direct deposit for Reimbursement/Advance. (See Section X).

  7. Employee Expense and Travel Reimbursement Form

     The Employee Expense and Travel Reimbursement form (EE&TR) is to be completed by the employee for any type of expense incurred for which the employee is seeking reimbursement from the University (University or 91¸£ÀûÉç), including hotel, airline, mileage for usage of a personal vehicle, business meeting expenses, etc. (See Section XI)

     Please note: 1) all reimbursements must be submitted within 30 calendar days after the expense(s) has occurred or trip completed; 2) all reimbursements will be paid to the employee as a direct deposit. Employees requesting a reimbursement must enroll in direct deposit for reimbursement and advances through My Portal self-service. Even if you are enrolled for direct deposit for payroll, separate enrollment is required for reimbursement and advances.

  8. Hospitality

     Hospitality expenditures include the provision of food, beverages, activities, or events for the purpose of promoting and furthering the mission of the University. (See Section IX).

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  II. Transportation — Air

  Reimbursement requested for the cost of air travel shall not exceed the cost of the most direct form of transportation provided by a public carrier.

  If an individual, for personal convenience, does not use the most direct route or most direct form of transportation, and incurs additional expense, such additional expenses will not be reimbursed.

  The University does not provide reimbursement for the incremental cost of travel in private aircraft, or first-class or business-class accommodations.

  The University's corporate travel agency is Carrousel Travel. By coordinating travel arrangements through Carrousel Travel, the employee's airfare will be directly charged to the University, so the employee will not have to pay for this cost in advance of the trip and WILL NOT have to seek reimbursement from the University after the trip.

  1. Air travel reservations should be made through Carrousel Travel: See the Travel page.
  2. Fill out 91¸£ÀûÉç's Travel Request Form (under travel section) with the pricing given to you and have all necessary authorized signatures and FOAP information.
  3. Send completed Travel Request Form to accountspayable@udmercy.edu with the subject line: "Travel Request Form". A Travel Request Number (TR) will be provided and sent back to you directly (typically within 24 hours of receipt).
  4. Send the new provided Travel Request Number (TR) to Kim Bedford/Julie Carr to complete your reservations. You will receive an itinerary and all necessary information to complete your travel request.
  5. Any questions regarding this process, please reach out to Billy Sawyer,  Accounts Payable Manager, at 313-993-1606.

   

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  III. Transportation — Automobile

  A. Personal Car

  1. 1. Employees who are authorized to use their personal vehicle for University business shall be reimbursed at the current . The IRS rate is communicated to the 91¸£ÀûÉç community at the beginning of each calendar year via an email from the Procurement Services Department.

        
        The IRS business mileage rate includes all costs of operating a vehicle. No other costs of operating a personal vehicle will be reimbursed.

        Traffic citations, parking tickets and other traffic violation expenses are the personal responsibility of the employee.

     2. If the destination warrants air travel but the employee chooses to drive for his/her own convenience, the reimbursement will be limited to the lesser of the cost of airfare, as quoted by Caroussel Travel, or reimbursement for driving a personal vehicle or rental car.

        
        Reimbursement for meals and lodging shall not exceed what would ordinarily have been required had the most practical form of transportation been used.

        The employee will be responsible for submitting a written quote for the cost of airfare along with a cost estimate of driving. Complete the Travel Comparison Worksheet to support the cost of driving.

        The Procurement Services Department shall give due consideration to the circumstances in each case when determining the most practical means of transportation.

     3. An employee's privately owned vehicle should be used rather than obtaining a rental car for travel within the state or Great Lakes Region if it is more cost effective to do so.

        
        Use the Travel Comparison Worksheet to determine the cost.

     4. Mileage will be calculated using the most direct route. The EE&TR must include the point of origin, destination, dates of travel, business purpose and the number of miles driven per day.

        
        An explanation must be provided for mileage in excess of normal mileage necessary for conducting official University business.

     5. When an employee travels directly from their place of residence, commuting mileage (from the employee's home to primary campus work site) must be excluded from total business mileage claimed. Attach MapQuest/Google maps to the EE&TR to support the business mileage.
     6. Mileage for travel between 91¸£ÀûÉç campuses will not be reimbursed except for necessary and approved mileage by non-exempt (hourly staff) employees.
     7. The EE&TR should also be used to claim reimbursement for local mileage. Business mileage for local appointments should be accumulated on a log noting the date, starting point and destination point, round trip mileage and the client/customer affiliation and purpose for the visit.
        
        

        Attach a mileage log to the EE&TR to support the total business mileage claimed for reimbursement. Local business mileage should be accumulated and reimbursement requested at least monthly for frequent travelers.

     8. Carpooling is encouraged when several 91¸£ÀûÉç employees will be traveling to the same destination.
     9. In the event an employee is involved in an accident in his/her personal vehicle while traveling on 91¸£ÀûÉç business, the employee is responsible for damage to the vehicle and any bodily injury or property damage to others they may cause. The employee is expected to maintain appropriate insurance covering damage liability and medical costs.
     10. Employees should obey all laws and operate their vehicle with the utmost safety in mind.

  B. Car Rentals

  1. 1. The University has contracted with Enterprise Rent-a-Car (Enterprise) for all authorized university business transportation needs on a local basis. Enterprise will bill the University directly for the related rental charges.
     2. To rent a car, the driver must be a 91¸£ÀûÉç employee with a valid driver's license.
     3. Only the reasonable cost of compact models is reimbursable unless Enterprise documents that such models are not available.
     4. Procedure to rent a car:
        1. Follow the information to rent a care on our travel web page.
        2. The employee must inspect the vehicle for damage before and after the rental period and no