Policies and Procedures: PSU Purchasing

Departmental Links:

Policies and Procedures

General Policies

Agency Purchase Authority

Local Bid Policy

Exceptions to General Policies

Maintaining Records

Use of Petty Cash

Additional Information

The following policies and procedures have been established to help University personnel by speeding up the purchasing process. The policies are based upon State of Kansas statutes and Department of Administration policies. They are specific in nature to stay within the laws and regulations of the State of Kansas, and must be carefully observed when making purchases. Dollar limits refer to the total purchase and not a per item cost.

GENERAL POLICIES

Purchases up to $2,000.00 (total purchase, not per item)
Departments are strongly encouraged to obtain at least (3) competitive bids when possible. Departments will not be required to submit bid documents to the Purchasing Office. Records should be maintained and available for audit in the department. See Local Bid Policy below.

Purchases from $2,000.00 to $4,999.99 (total purchase, not per item)
The user departments will obtain at least three (3) competitive bids using standard bid documents provided by the Purchasing Office. Departments will submit purchase requisitions including bid documents to the Purchasing Office for approval prior to making the purchase. Required records will be maintained in the Purchasing Office.

Purchases of $5,000.00 or more
The Purchasing Office will obtain competitive bids through a formal bid process. This process takes approximately two weeks for bids less than $50,000.00 and approximately four weeks for bids of $50,000.00 or more (depending on the commodity).

Regardless of other policies and limitations, the University should seek competition in bidding whenever possible.

There are some exceptions to the above listed General Policies.

POLICIES FOR LOCAL BIDS UP TO $2,000.00

Purchases up to $2,000 (total purchase, not per item) can be made by the department and do not require submission of a tab sheet to the Purchasing Office. Departments taking bids up to $2,000 should enforce the following guidelines:

Always give the vendor a quotation number when taking a bid. Departments can use their DPR number for this purpose.
Verify the shipping and payment terms. If a vendor bids "FOB Origin" ask if it is "Freight Paid" or is it "Prepay and Add Freight to Invoice"? Either way, make sure that the vendor has included all freight cost in his bid or made you aware of what the freight cost will be.
NEVER give a vendor quoted prices received from other vendors.
Always note the name (first and last) of the person that gave you the bid.
Bids may be taken verbally, by e-mail, or by fax.
The departmental tab sheet should include a full item description, vendor information, and any other necessary information such as specifications. Tab sheets are available at the Purchasing Office web site.

AGENCY PURCHASE AUTHORITY REQUIREMENTS

When making purchases under agency purchase authority, the University is subject to the following state policies:

Seek competition in bidding whenever possible.
Not intentionally split purchases or invoices to avoid established limitations.
Not establish specifications in a manner to effectively exclude any responsible bidder offering comparable supplies, materials, equipment or contractual services.
Purchase from the lowest responsible bidder conforming with specifications, terms of delivery and other conditions imposed in the call for bids.
Maintain records of all transactions for five years.
Provide public access to transaction records at all reasonable times.
Conform with other applicable statutory provisions governing the State.

EXCEPTIONS TO GENERAL POLICIES

Items on state "open end" contracts must be purchased from those contracts.

Emergency purchases - contact the Purchasing Office.

Sole Source purchases - submit Prior Authorization form to the Purchasing Office.

REQUIRED RECORDS TO MAINTAIN

1) Copy of departmental purchase requisition (DPR).

2) Copy of signed purchase order (if one is issued).

3) Record the following information of bids received (minimum of three):

Name of bidder.
Name of person talked to (telephone bid).
All information on item bid including manufacturer, model number, dimensions, and other pertinent specifications.
Price quoted.
Terms.
Delivery.
Date of bid or conversation.

4) Copies of internal or external correspondence relating to the purchase, if any.

5) A written justification if the award is to be made to other than the low bidder.

USE OF PETTY CASH FUNDS FOR SMALL PURCHASES

Eligible purchases may be made and reimbursed by available petty cash funds subject to the following limitation:

Purchases from local funds-$30.00(Funds 142,342,208,209,844)

Purchases from State funds-$100.00(All funds not listed above.)

Petty Cash may not be used to purchase products or services if the outcome avoids a purchase from a State Contract, or avoids a purchase from the Industries for the Blind and Handicapped catalog.

ADDITIONAL INFORMATION

Your cooperation in meeting State and University policies is essential. Thank you for your help.

If special circumstances exist that are not provided for in the preceding policies, contact the Purchasing Office