COTC Purchasing Policy

 Highlights of the Purchasing Policy

 Introduction
    Purpose
    Ethics
    Location

 Ohio Ethics Commission

 Purchase of Goods,Services,Supplies
    Requisition

 Purchase Orders
    One Time Purchase Order
    Blanket Purchase Order
    Change to Requisition and Purchase Orders

 Purchasing Agent Role

 Bidding
    Types

 Waiver of Competitive Bid

 Authorization for Procurement
    Signing Authority
    Special Approvals/Review
    Board Approval

 Special Buying Considerations
    Ohio Industry for the Handicapped
    Ohio Penal Industries
    Independent Contractor vs. Employee Relationship

 Contracts
    1. Types of Contracts
    2. Campus Term Contracts
         Inter University Counsel (IUC) Purchasing Group
         Price Agreement
    3. State of Ohio Contracts
    4. Educational and Institutional (E&I)
         Cooperative Contracts
    5. Prime Supplier Agreements

 Renovations/Construction Buying
    Prevailing Wage
    Contract Compliance

 Coordination with Other Departments

 Accounting

 Accounts Payable
    1. Invoice
    2. Reimbursement
    3. Prepayment/Advances
    4. Tax Exemption

Courier Service

 Receiving Department

Highlights of the Purchasing Policy

The attached purchasing policy was developed as a result of a review of the Ohio Revised Code, the Ohio Administrative Code and conversations with other colleges and universities. It is a requirement of the Ohio Revised Code that the Board of Trustees approve a purchasing policy for the college. This document was previously presented in December to the Board Finance Committee whose comments have been incorporated into the document. Highlights of the document include:

• The policy includes all legal components of the Ohio Revised Code, Ohio Administrative Code and regulatory interpretation applicable to two-year technical colleges.
• It improves the campus internal control while decentralizing and empowering Unit Budget Managers. This is done by increasing signing authority to $1,000 for individual budgets.
• In recognition of inflation the formal bid requirements have been increased to $20,000 for goods and $30,000 for services, (previously $10,000 for both).
• This policy establishes a threshold of $5,000 for quotes for aggregate goods and/or services. This will ensure competitive pricing on purchases.

The policy defines the Purchasing Agent’s role on campus as the primary agent for the purchase of goods and services and to coordinate contract services.

Introduction

Purpose
The policy guidelines set forth in this document are intended to insure compliance with the guidelines set forth by the State of Ohio Revised Code, the State of Ohio Administrative Code, and the Board of Trustees for all authorized Campus funded purchases.

It is not the purpose of this document to supercede or invalidate requirements or restrictions that may be in effect in individual departments, provided these are within the Campus’ guidelines. Each purchaser needs to be aware of his/her department’s own policy restrictions regarding purchases

Ethics
All Purchasing Department employees and all other campus personnel authorized to conduct purchasing activities must adhere to the principles and standards of the Ohio Ethics Law, Chapter 102 and Section 2921.42 of the Ohio Revised Code. It is contrary to the college’s policy for any employee to accept any gratuities, premiums, or other incentives. As a member of the National Association of Educational Buyers, the campus also subscribes to their code of ethics. Each employee involved in the expenditure of public funds is held at the highest degree of public trust and will abide by the following:

• Give first consideration to the objectives and policies of the institution.
• Strive to obtain the maximum value of each dollar of expenditure.
• Decline personal gifts or gratuities.
• Grant all competitive suppliers equal consideration and in so far as State and Federal statute and policy permits.
• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
• Demand honesty in sales representation, whether offered a verbal or written statement in advertisement or a sample of the product.
• Receive consent of the originator of proprietary ideas and design before using for competitive purchasing purposes.
• 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 controversy to arbitration for others to review.

Purchasing Department
Founders Hall, Room 160
1179 University Drive
Newark, Ohio 43055
Phone: 740-366-9233
Fax: 740-364-9595

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PURCHASE OF GOODS/SERVICES/SUPPLIES

A Purchase Order is an offer of a contract between the Campus and a supplier. Purchase Orders are issued through the Purchasing Department with an appropriate Purchase Order Number. Purchase Order terms and conditions address legal and contractual obligations of the supplier and the campus on each purchase order issued. Purchase orders also specify delivery to the Receiving Department and direct billing to Accounts Payable.

Purchase Orders are sometimes supplemented by a formally executed contract. See contract section for additional information. The President/Dean/Director has signature authority for most legal contracts. Please note the campus may find it necessary to consult with legal counsel before signing contracts.

Requisition
A requisition is a campus form used to communicate a request for the purchase of goods, bids, or services from off campus suppliers. Requisitions are:

• Initiated by a campus department for the purchase of goods or services;
• Submitted to the Purchasing Department for processing;
• Should include all appropriate information about vendor, item description, quantity, etc. before it is submitted;
• Should include all budget account codes;
• Should also include all appropriate authorization(s) at time of submission;
• Precedes the issuance of a Purchase Order by the Purchasing Department.

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Purchase Orders

Purchase Order is issued by the Purchasing Agent to specific supplier(s) as an authorization for purchase and commitment of future payment.

One time Purchase Order
A one-time Purchase Order is issued to identify a specific requirement at a firm price, generally with a single delivery. One-time orders are:

• Issued to off-campus suppliers;
• Identified by a unique Purchase Order number;
• Issued and authorized by the Campus Purchasing Agent for less than $10,000;
• Or have an additional authorization by the Vice President/Director of Finance or designee for all Purchase Orders issued over $10,000 and/or any item that has been bid.

• Each Blanket Purchase Order will be issued to a single supplier and may not exceed $10,000 for goods and $20,000 for services except for the following items:
• Utilities
• Telephone Service
• Reoccurring payments on leases or mortgages
• Other items as deemed necessary by the Purchasing Agent and approved by the Chief Fiscal Officer,
• Each Blanket Purchase Order will have a unique Purchase Order number,
• For a Blanket Purchase Order where monthly billing of goods or services vary, the invoice must be approved by appropriate department representative prior to payment.

Changes to Requisitions and Purchase Orders
Requests to cancel or modify a Requisition or Purchase Order, which has not been processed, should be made directly to the Purchasing Department either in writing or by phone. If substantial changes are made to a requisition, a new Requisition with appropriate approval should be resubmitted. If a Purchase Order number has been issued, the requisitioner should consult the Purchasing Department to determine the status of the goods or services and the potential for canceling or modifying the order.

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Purchasing Agent Role

The Purchasing Office reserves the option to purchase from other than suggested vendors, or supply alternate items for comparable services, supplies, and/or equipment if obtainable at a lower price or total cost. This may include items which are part of a pre-purchase contract. If changes are made to the requisition request for other reason(s) the requisitioner will be consulted.

Bidding

The Purchasing Department has a responsibility to solicit bid requirements from two or more suppliers when the estimated value of the requested purchase is $20,000 or greater for goods (equipment, materials, supplies) or $30,000 or greater for services, unless the items can be obtained under existing contracts. The University’s Board of Trustees establishes these competitive bid thresholds as a part of this policy. The Purchasing Department may bid any request regardless of the dollar amount when, in their judgement, it best serves the campus. It is the responsibility of the Purchasing department to maintain an approved bid list for the campus. After a bid has been solicited, any changes to the bid requirements will be open to all potential suppliers.

Request for Quotation (RFQ)
This document is supplied to suppliers who request pricing for bids or services provided for the campus.

Request for Proposal (RFP)
This is a request from suppliers to provide a customized response, usually for services or good that include a service element. The supplier response generally includes pricing, proposed implementation plan, and timeline for delivery of goods or services.

Request for Information (RFI)
This request is issued to suppliers within a specific commodity or market to determine the viability of a concept and to obtain market information. No award is usually made from this process.

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Waiver of Competitive Bidding

The campus secures goods and services competitively wherever applicable. The Chief Fiscal Officer and President/Dean/Director may waive competitive bidding and approve waiver request(s) when justified. They may authorize the Director of Purchasing to purchase without competitive bidding, goods, or services that exceed the bid threshold.

The following are reasons to consider granting a waiver of competitive bidding.

Sole Source: There is not another company who provides goods or services similar to the requested purchase; the request for goods or services is unique in design, performance, or user specification.

Emergency: The goods or services are needed to correct or prevent an emergency repair or replacement of existing equipment essential for daily operation.

Economics: Responsible economics procurement relieves the campus of potential additional expense that will result from not making a purchase; use of another supplier would require considerable training, time and money to evaluate; the goods or services are used in on-going, long-term projects; and/or the product or services offered is at a substantial discount due to current market conditions and price structures.

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AUTHORIZATION FOR PROCUREMENT

Signing Authority
In general all administrative Unit Budget Managers (UBM) have the authority to complete requisitions without Senior Administrative approval up to $1,000. Senior Administrators have signing authority up to $10,000 for items within their budgetary supervision. Exceptions to this policy are in writing, approved by the President/Dean/Director, and kept on file in the Finance Division, with a copy in the Purchasing Department.

Prior to submitting a Requisition to Purchasing or Check Request to Accounts Payable, it is the responsibility of the person submitting the document to obtain proper signature authorization. After receiving the document in the appropriate office, funds must be available in the corresponding operating budget to continue processing the document.

All incomplete documents will be returned to the UBM for appropriate follow up.

Special Approvals Review
The following purchases require additional approval of designated individuals or their representatives in the areas noted, and must be processed through the Purchasing Department:

• Advertising (except classified advertising): Director of Marketing & Public Relations
• Classified Advertising: Director of Human Resources
• Computer Equipment/Software: Chief Information Officer
• Construction: Project Manager and Chief Fiscal Officer
• Entertainment contracts for student events: Director of Student Services
• Entertainment contracts for community events: Director of Marketing & Public Relations
• Equipment Leasing: Chief Fiscal Officer
• Insurance (Health): Director of Human Resources
• Insurance (Risk Management): Chief Fiscal Officer
• Letterhead and Business Cards: Director of Marketing & Public Relations
• Off-campus Lease Space: Chief Fiscal Officer and President
• Renovations: Project Manager and Chief Fiscal Officer
• Signage and Vehicle Graphics: Director of Marketing & Public Relations and Director of Physical Facilities
• Telephone Equipment and Services: Chief Information Officer
• Temporary Employment Services: Appropriate Senior Administrator, Director of Human Resources
• Video Production: Director of Marketing & Public Relations
• Alcohol ONLY with prior approval by President

In general, Board of Trustees approval needed only for new budgeted items more than $10,000 (may be done by mail). Exception can be made for emergency repairs to building or grounds. Approval must be obtained at next opportunity.

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SPECIAL BUYING CONSIDERATIONS

Ohio Industry for the Handicapped
Sections 4115.31- 4115.35 of the Ohio Revised Code directs state entities to use a qualified non-profit agency for the purchase of products and/or services which are available from an agency employing persons with disabilities, notwithstanding any law requiring the purchase of products and services on a competitive basis.

Ohio Penal Industries
Sections 5147.07 of the Ohio Revised Code directs state entities to utilize the Department of Rehabilitation and Corrections for the purchase of products and/or services available from State Corrections and Penal Institutions.

Independent Contractor vs. Employee Relationship
Policies that determine the difference between an employee and an independent contractor are based on case law and Internal Revenue Service (IRS) interpretation.

If workers are incorrectly classified as independent contractors, the IRS can impose fines and penalties for uncollected taxes, including income taxes and social security taxes. Consequently all non-employee arrangements should be clearly documented, and the documentation maintained in the Accounts Payable Department. The following list identifies some situations when an individual could be an independent contractor.

• Infrequent guest performance or artists not affiliated with the campus
• Guest speakers or lecturers with a particular expertise brought in on a short-term basis
• Individuals providing professional services such as attorneys, accountants, and other technical or administrative experts

Final determination of the employee vs. independent contractor status will be made on a case by case basis by the Director of Human Resources, in consultation with the Director of Financial Services.

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CONTRACTS

A purchase contract is usually the result of a bidding process identifying and combining volume requirements. Contracts with firm pricing or discounts for specific goods, services, and terms are established to obtain the best possible value for the campus. Contracts are generally written for specific period with the option for at least one additional year extension. Once the contract is awarded, individual purchases may be made against this contract without requiring additional bidding.

Contracts will be reviewed for two basic components. First, a statement of compliance/enforcement based on Ohio law and second, notification of compliance with all applicable Equal Opportunity Laws.

Contracts must be approved by the appropriate Senior Staff member, reviewed by the Chief Fiscal Officer and authorized by the President. The Chief Fiscal Officer reviews for insurance liability, budgetary considerations, and determination/coordination of legal opinion from appropriate attorney of record.

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Types of Contracts

The Purchasing Department encourages use of all contracts as follows:

Campus Term Contracts

• To combine needs;
• Specific to the unique needs of the campus;
• Examples include consultants, media buys, etc.

Inter-University Council (IUC) Purchasing Group Price Agreement

The IUC is a buying consortium commissioned by the Ohio Board of Regents. Its members represent 38 State institutions of higher education in Ohio.

• Combines needs;
• Bidding responsibility of contract is delegated to specific schools;
• Changes to existing price agreements require the approval of the membership;
• The IUC Executive Secretary, located within Ohio State’s Purchasing Department distributes contracts.
• Purchases from an IUC vendor will be coordinated by the campus Purchasing Agent

• Available for use by State of Ohio agencies
• Campus copies of State of Ohio contracts are maintained by the Purchasing Department

• E&I Contracts is a national line consortium comprised of colleges and universities;
• Used as a competitive bid source when appropriate

• A contract for a specific commodity group;
• Awarded to a primary supplier for an extended period of time;
• Typically used for gas, electric, and other utility purchases.

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Renovations/Construction Buying

The campus defines construction as building maintenance, repair, renovation and new construction. This may include changes in walls, doors, electrical, plumbing, heating, venting, air conditioning systems, site work, etc.

Requisitions for a renovation project (less than $30,000) are processed after review and approval by the Project Manager and Chief Fiscal Officer.

Requisitions for construction project (greater than $50,000) are processed after review and approval by the Project Manager, the Chief Fiscal Officer and President. All constructions projects greater than $50, 000 must be bid with a request for Minority Business Enterprise partnership.

The Chief Financial Officer or designee is responsible for monitoring contract costs associated with renovation and construction. Changes to contracts will be coordinated through the Chief Fiscal Officer.

Prevailing Wages
Chapter 4115 of the Ohio Revised Code relating to the payment of prevailing rates of wages on public improvements states that prevailing wages must be paid on reconstruction, enlargements, alteration, repair, remodeling, renovation or painting projects of $22,166 or more, $73,891 for new construction. The Project Manager will monitor compliance for the campus in all public improvement projects.

Contract Compliance
The Project Manager, Chief Fiscal Officer, and Purchasing Agent will monitor all construction contracts to ensure compliance with State and Federal laws regarding affirmative action. These guidelines are set forth in the Ohio Revised Code sections 3345.27-3345.30. The contract compliance procedures are in effect for all campus-funded construction, renovation, and/or maintenance project bids on the campus with an estimated value of $15,000 or more.

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COORDINATION WITH OTHER DEPARTMENTS

Accounting

Each Purchase Order must be charged to an authorized account within the campus’ central accounting system. Individual Unit Budget Managers and Senior Administrators’ signing authority is listed in another section and is applicable to a unique account number assigned to each department.

Accounts Payable

Invoice
An invoice is a billing document that provides itemized descriptions and prices for the goods and/or services of an off-campus supplier. Invoices are matched with Purchase Orders and packing slips to create an authorization for payment. Therefore, the supplier should send invoices directly to Accounts Payable unless otherwise noted on the Purchase Order. If a department receives an invoice it should be submitted directly to Accounts Payable.

Reimbursement
A reimbursement is the paying back of money that has been spent on behalf of the campus. Reimbursement differs from refunds in that a refund is the paying back of money that has been paid to the university. Efforts should be made to use the university’s regular purchasing procedure whenever possible to avoid reimbursement in the normal course of day-to-day business.

Items which can be reimbursed:

* Business related meals
* Reception cost
* Mileage expenses or overnight travel with pre-approval
* Low cost emergency business supplies

Note: Sales tax not refundable unless part of travel

Prepayment/Advances
Under policies established by the Auditor of the State, prepayment for goods and services is not permitted except for the following items:

* Registration for conferences with pre-approval
* Travel arrangements paid directly to the vendor 
* Travel credit card for use on specific expenses with pre-approval
* Magazine subscriptions
* Memberships and dues

Submission of appropriate reconciliation forms with receipts and/or backup is required for payment.

Tax Exemption
The campus is tax exempt.  Accounts Payable or Purchasing can issue a blank Certificate of Exemption when requested or it may be obtained via the following web page: http://www.newarkcampus.org/faculty/Purchasing%20forms/COTC%20Tax%20exempt%20form.doc

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Courier Service

In an effort to provide quality intercampus delivery, here is a list of general guidelines and information about the use of courier service.

1. The courier's primary focus on every day (except Thursdays) is the Newark Campus intercampus deliveries. This includes mail service to various buildings, delivery of packages/supplies/equipment to various offices on campus. Special delivery requests (paper, items from storage, etc.) will be completed in 2 to 3 working days.
2. The courier travels to Coshocton every Tuesday, Mount Vernon every Wednesday and Columbus and Pataskala every Thursday (*see below).
3. This person is also the campus Receiving Clerk. Since the campus receives between 50 to 250 packages a week, a major portion of the courier's time is spent checking in and delivering these packages. Our goal is delivery within 24 hours. However, it could take 2-3 working days.
4. Finally, the courier also occasionally assists with local pickup or deliveries for the campus with a one week notice to the Purchasing Office.

*The courier travels to all the above extended campuses throughout the year, carrying supplies, mail and other items. The courier leaves approximately 9:30 a.m. Faculty and staff may use this service by contacting the Courier at ext. 476

There are eight regular stops.   "Hand" deliveries are available at any of those buildings and others upon request.

1. Mailroom Kenny Rd
2. Blankenship Hall
3. Lincoln Tower

NOTE: Packages/mail dropped at the Columbus Campus Mailroom will be delivered same or next day to the appropriate office, per the Columbus staff.

Overnight delivery and individual hand delivery to Columbus is also available from external agencies. The Services Center supplies the special envelopes and/or boxes. This expense will be charged to an individual budget.

Requests submitted less than one week in advance or errands not limited to pick up or delivery service only are the responsibility of individual departments. If you need an item picked up which does not fit these guidelines, please call the Purchasing Office to review your options.

Receiving Department

The Receiving Department serves as central receiving and distribution for inbound shipments of merchandise received on orders issued by the Purchasing Department. All packages delivered to campus will be opened and forwarded to the appropriate person/department.  When goods are delivered to the person/department they become their responsibility at the time of receipt.  All items should be checked for receipt and damage and then forward all documents enclosed to Accounts Payable.

The Purchasing Department is responsible for expediting replacement shipments and filing claims for damaged shipments. Contact the Purchasing Department @ 234 for further information.

Have questions? Email Maggie Snyder, Purchasing Agent, extension 233

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