Purchasing Overview

1. Purchasing Overview Carol Luckey Purchasing Manager

2. Overview • Departmental Purchase Authority • Completing Advantage Documents • Documentation/Backup • Receiving and Payment

3. Departmental Purchasing Authority • PD and P-card purchases • Up to $5,000 • The Policy for Departmental Purchase Orders can be found at: http://www.nau.edu/purch/Procedures/304.05_Departmental_PO.htm • Limits • $0 - $5,000 PD or P-card • $5,000 - $25,000 PO • $25,000 - $50,000 PO with 3 Quotes • $50,000 and up Sealed Bid Process

4. Departmental Purchasing Authority • PD’s and PO’s are not a Payment Document • All Purchase Orders should be used when placing the order with the vendor • RQS’s should be the start of the request to place a PO over $5,000

5. Completing Advantage Documents • Header Table • Shipping Location • Building # where the goods are to be delivered • Shipping Additional Information • Room # or Location within the building where goods are to be delivered • Delivery Date • This date should have been agreed upon by department and vendor Very important so shipping and receiving delivers to the correct department. • Vendor Table • Vendor #

6. Completing Advantage Documents Commodity Table Commodity Code Line Type Item Qty Unit Unit Price Service Contract Amount Extended Description Description of what is being purchased; this should be in Capital Letters Tax Tax will be added by Purchasing on PO’s Special Instructions Special Instructions will be added by Purchasing on PO’s

7. Completing Advantage Documents • Accounting Table • Department/Unit • Object • 7300’s for Non Capital • 7830’s for Capital (if an individual item is over $5,000) • Sub Object • Send PD’s as PO to Vendor; the printed purchase order contains acceptance of order and acceptance of all terms and conditions.

8. A Purchase Order has many important details

9. Documentation/Backup • Documentation should be attached to PD’s • Quote for procurements below $25,000 • The following shall be sent to Purchasing if procurement is over $25,000 • 3 quotes • Any Justification • A Contract along with a completed Contract Signature form • Approved insurance for vendors coming on campus • Asbestos survey and FS-13 forms • RQS number should be written on all documentation

10. Receiving and Payment • Once the good(s) and/or service(s) have been supplied by the vendor and the vendor has submitted an invoice. The department shall process a receiver (with appropriate approvals) and deliver the invoice, with the RC # recorded on the invoice, to Accounts Payable.

11. Questions

12. Procurement Contracts Denise Downum Contracts Administrator

13. Contract Administration • Identifying a Contract • Signature Authority • Required Provisions • Contract Signature Request Form

14. Identifying a Contract • A contract is defined as offer and acceptance, for which consideration is exchanged. • For our purposes, it is a contract if there is a written document with terms and conditions set forth, and a signature is required of NAU in order to bind NAU to the vendor’s terms and conditions.

15. Signature Authority • For all contracts for procurement of goods and services for NAU, the President has delegated authority to sign contracts and to bind the University to the Director of Procurement, Becky McGaugh, and to the Purchasing Manager, Carol Luckey. • Authorized Signers List: http://www4.nau.edu/comptr/cms_pdfs/authorizedsigners.pdf • An unauthorized signature may mean that the one signing is personally bound by the contract’s terms. • So, if there are terms and conditions on any document given to you by a vendor, and a signature is required, Purchasing needs to receive the contract for authorized signature.

16. Required Provisions • Correct Name: In all contracts, the contracting party for NAU is the “Arizona Board of Regents for and on behalf of Northern Arizona University”. • Indemnification clauses must be stricken; NAU is prohibited from indemnifying another party by state law. (Exception: other Arizona state agencies) • NAU’s Addendumof Arizona State Agency provisions is incorporated into nearly every contract. (The basic Addendum is revised in some contracts, such as when special insurance is required or when NAU is contracting with another Arizona state agency.) • Full Execution: The contract must be approved and signed by bothparties.NAU must have the vendor or other contracting party sign the contract, including NAU’s Addendum, initial any changes to provisions, and return a copy to Purchasing. (If you are sending the contract to the vendor for their signature, please make sure that they know that Purchasing needs a signed copy back.)

17. ADDENDUM • NAU’s Addendumof Arizona State Agency provisions is incorporated into nearly every contract. (The basic Addendum is revised in some contracts, such as when special insurance is required or when NAU is contracting with another Arizona state agency.)

18. Contract Signature Request Form • Can be found on NAU Purchasing Services Website, Forms • Please use current, updated version • Send this with every contract, addressed to Denise Downum, Purchasing, Box 4124 • Departmental Representativemust complete and sign, indicating they have read and can administer the contract • The form gives Purchasing directions as to how the department wants the contract processed (whether to send to vendor, or back to department, etc) • Submit to Purchasing as soon as possible, giving us two weeks to process. (Some contracts will be renegotiated or are complex, and require more time) • Let Buyer know that a contract is coming to Purchasing when doing your requisition; the contract should be completed before the purchase order is generated

19. Contract Signature Request Form http://www.nau.edu/purch/Forms/Forms.htm

20. Questions