PURCHASING 101 BASICS FOR BEGINNERS SEASONED PURCHASERS Topics

PURCHASING 101 BASICS FOR BEGINNERS & SEASONED PURCHASERS

Topics • • • Conflict of Interest University Purchasing Procedure Delegated Local Authority Purchasing Exceptions Contracts

Code of Ethics K-State is a member of the National Association of Educational Procurement (NAEP), and we conform with their Ethics Policy.

Conflict of Interest • Avoid situations that could appear to be a conflict of interest. As an employee of a state-funded University, it is imperative to exhibit high ethical standards. • A vendor, or potential vendor, may not offer, give, or agree to give an employee anything of value to secure an order or contract. • K-State Conflict of Interest Policy https: //www. kstate. edu/conflict/

Purchasing Procedures K-State PPM Chapter 6310 can be found at https: //www. kstate. edu/policies/ppm/6300/6310. html

Types of Purchases • State Use Program • Delegated Purchases are purchases that department have the authority to process. • Non-Delegated Purchases are purchases that departments must go through Purchasing to process.

State Use Program • Why is it mandatory to purchase State Use items? • State Statute K. S. A. 75 -3321: Any person or officer authorized to purchase materials and supplies for a State agency or Unified School District operating in Kansas shall purchase, from the State Use Catalog, when the item meets the need of the agency or school district. • https: //admin. ks. gov/offices/procurement-and -contracts/state-use-program

State Use Program Available Items • Air filters • Bags • Cleaning Supplies • Inmate Apparel • Medical Scrubs • Office Supplies • Safety Equipment • Skin Health and Hygiene Products http: //www. ksstateuse. org/2018 -State-Use-Catalog. 7. 30. 18. pdf

Delegated Purchases • Departments authorized to purchase goods and services up to $10, 000 including freight. • Best Practice – – Get 2 -3 quotes – check pricing Ask for discounts if 5+ items or over $5000 Include freight get a “not to exceed” (NTE) quote DO NOT pay for orders in advance • Use K-State Contracts • No Splitting of Orders

How to Purchase • Use a K-State approved contract, listed at https: //www. kstate. edu/finsvcs/purchasing/contract. html • Click on Contracts (opens in a new window) • Click on the magnifying glass and then type in the name of the item or vendor you are looking for. • If using the same vendor for multiple purchases in a one year period and the TOTAL amount is over $10, 000. 00 these items or services must be competitively bid.

Non-Delegated Purchases • Purchases at $10, 000 or more must be processed through the Purchasing Office. • Purchase Requisitions (PR) require clear specifications of what goods or services you are wanting to procure.

Purchase Requisition (PR) • Provide funding information Project, Source Org, and Object code • Provide Description of Material or Service • Provide three (3) suggested vendors with email address and phone number • Attach a Word document with the complete specifications – Specifications should be clear and concise – Vendor quotes or brochures are NOT specifications

E-Forms

Purchasing Exceptions What is a purchasing exception? • • • Equipment/supplies that must be compatible with existing equipment. Computer software expansions or upgrades Single source supplier Used equipment Emergency – – What happened? When did it happen or was it discovered? What is the estimated damage/loss? Department gets phone bids

Prior Authorization (PA) • If only one vendor possess the unique and singularly available capability to meet the requirement of the solicitation, such as technical qualifications, ability to deliver at a particular time or services from a public utility. • If grant funds, must comply with both KSU policies and procedures and 2 CFR Uniform Guidance requirements. Over $250, 000 must be competitively bid. • If state funds, best to competitively bid.

Contracts • What is a contract? Invoice Terms Memorandum of Agreement (MOA) Purchasing Agreements Services Contract Lease MOU Service Agreements

Contracts General Counsel must review ALL contracts. See PPM Chapter 3070 - https: //www. kstate. edu/policies/ppm/3000/3070. html – KSU-146 a (standard required terms) – OGC Contract Review Checklist

Purchasing Information Check our web page for information https: //www. k-state. edu/finsvcs/purchasing/ Need guidance or assistance? Contact us at kspurch@k-state. edu 785 -532 -6214