TX Class: AM 580

1. TX Class: AM 580 Purchasing Rules and Regulations www.utsa.edu/purchasing

2. Purchasing and Distribution Services Department • Director • Robert Dickens • Assistant Director of Purchasing • Lane Brinson • Purchasing Buyers • Paul Duke, ext. 4064 • Julie Gohlke, ext. 5076 • Amanda Alvarado, ext. 4598 • Patty Burrier, ext. 4062 • Sandra Calderon, ext. 8680 • Mariano Alaniz, ext. 5077 • Contracts • Richard Wollney, ext. 4069 • Nancy Wood, ext. 4899 • Frank Grijalva, ext. 4975 • Purchasing Business Analyst • Yvette Medina, ext. 4974

3. Organizational Chart

4. COURSE OBJECTIVES • Discuss and evaluate Purchasing Rules • Examine compliance in relation to Purchasing • Outline HUB requirements from the state and university • Evaluate Ethics in regards to self and working with vendors • Review Spending Thresholds for procurement • Breakdown and demonstrate various Procurement Methods • Demonstrate the uses of the UTSA Supplier Mall and Purchasing website • Differentiate and discuss Small vs. Highdollar procurement

5. Purchasing Terms • Requisition – A request to purchase goods or services • Quotation – Obtaining a price for a good or service • Purchase Order – A formal agreement to purchase based on an offer to sell • Informal Bid – Low value, low risk procurement conducted through informal methods • Formal Bid – High value, high risk procurement conducted utilizing formal purchasing methods • Receiving Report – A report informing appropriate parties of goods received by the University • Invoice – A request for payment for goods or services which were delivered • Commodity Code - A code describing a commodity or a group of commodities pertaining to goods classification.

6. Purchasing Rules

7. Compliance (State and UTSA Purchasing) • Section 51.9335, Education Code definition of “Best Value“ • The Board of Regents' Rules and Regulations • UTSA's HUB (Historically Underutilized Businesses) policies • To Standards of Ethical Conduct • All Applicable Laws, Rules, and Regulations

8. Historically Underutilized Business (HUB) Program • What is the purpose of the HUB Program? • What classifies a HUB? • Why are HUB’s Important to UTSA? • HUB Program Events • Quarterly Newsletter • HUB Awards Ceremony (November) • Vendor Fair (March/April)

9. Historically Underutilized Business (HUB) UTSA HUB Program Contact: Cynthia Davis Email: cynthia.davis@utsa.edu Phone: 458-6551 Website: www.utsa.edu/hub

10. PROCUREMENT ETHICS • Ethics of self and university • Tax Payer • Impropriety • Ethics with vendors • No Special Consideration • Equal Opportunity • Further information of U.T. System Ethics Policies and Guidelines is available on UT systems web site.

11. Procurement Spending Thresholds

12. Mini Quiz • UTSA employees should avoid acts that are _______ or give the ______ of impropriety. • A. improper, appearance • B. good, idea • For orders over $5,000.00, how many HUBs should be given an opportunity to bid? • A. 2 • B. 3 • Name an objective of this course. • Name a Buyer in the Purchasing office.

13. Procurement Methods

14. PROCUREMENT METHODS • Best Value • Competitive Bid • Request for Proposal (RFP) • Group Purchases • Sole Source • Emergency Purchase • Exempt Purchases

15. BEST VALUE PROCUREMENT • Best value - optimum combination of economy and quality through specifications of its end user and the University. • House Bill 1545 • The university uses an evaluation criteria other than price alone to determine Best Value.

16. COMPETITIVE BIDDING • What is competitive bidding? • Why compete goods and services? • Restrictions to Competitive Bidding: • Set Specifications • NoAbility to Negotiate

17. REQUEST FOR PROPOSAL (RFP) • What is a RFP? • When do I need a RFP? • What is the process of a RFP procurement?

18. GROUP PURCHASES • What is a group purchase? • Types of Group Purchases • Group Cooperatives • State Contracts • Link to Group Purchasing Organizations • www.utsa.edu/purchasing/suppmall/index.cfm

19. Mini Quiz • What is a benefit of using a Group Purchasing Cooperative? • A. Deeper Discount • B. No bidding required • C. All of the above • What is the definition of Best Value? • Name two Group Purchasing Organizations. • When is a RFP appropriate?

20. SOLE SOURCE • A Sole Source is defined as having availability from ONLY one source. • Sole Source can only be used when: • Sole Manufacturer – NO distributors or retailers • Sole Brand – to avoid warranty issues

21. Emergency Purchases • Purchase of good(s) or service(s) so badly needed that UTSA will suffer financial or operational damage unless secured immediately • Require written justification approved by Purchasing with Signature Authority • The reason for the emergency • The  financial or operational damage/risk possible to the University • Why standard procedures could not be used to obtain the products/services • The reason and process used for selecting the vendor

22. Exempt Purchases • Exemption is given to specific commodities and services • Exempt purchases do not require a competitive procurement process • Exempt purchases do not need a sole source justification • For a full listing of Exempt commodities and services, visit the Purchasing website.

23. Mini Quiz • When do you use a Sole Source? • When is an Emergency Purchase necessary? • Name a method to purchase by. • Which of the following is not an example of an Exempt Purchase? • A. Direct Publication • B. Purchase of a microscope • C. all are exempt

24. Additional Purchasing Information Contract • NEVER sign contracts or agreements • Only the President can delegate authority to sign contracts • OGC (Office of General Counsel) provides sample contracts • Departments should submit all purchasing contracts to the Purchasing Department Construction, Renovations & Facilities • Any proposed construction and/or renovations are to be routed through UTSA Facility Services via a work order • Facility Services will determine the best way to procure the renovations Information Technology • Any request for hardware or software should be coordinated through Information Technology. Visit the OIT website for Computer Standards.

25. Purchasing Websiteand Additional Purchasing Information

26. Purchasing Website • Resource for faculty, staff, and vendors • Purchasing Policies and Procedures • Forms • Buyer Assignments • Purchasing Terms and Conditions • Purchasing Announcements • Coming Soon… Purchasing UTShare PeopleSoft information

27. UTSA Supplier Mall • Purchasing Resource • Contracts with volume discounted pricing • Efficient ordering method • Emphases on HUB presence • Purchases can be made by Purchase Order or Procard (as applicable).

28. What's in the UTSA Supplier Mall? • Find contract information for Preferred Suppliers in the following commodities: • Office Supplies • Printer Purchases (HP, Dell, Lexmark) • Cylinder Gas • Moving/Relocation Services • Scientific Supplies • Technology Supplies • And more!! • Visit: www.utsa.edu/suppliermall for further information or contact your departmental buyer.

29. Purchase RequisitionPurchase Request (PB0 and PB4)

30. Small Dollar – PURCHASE REQUEST • “Small Dollar” or Low Risk / Low Value • Department authorized and approved • Informal purchasing process • Requires quote(s) from vendor(s) • HUB participation is strongly encouraged • Utilization of Sustainability Vendors and Products • Orders under or equal to $5000 may be processed by the department and should not be sent to purchasing.

31. Small Dollar – EXCEPTIONS • Orders containing the following commodities should be submitted to purchasing and issued on a “High Dollar” purchase request:

32. High Dollar – PURCHASE REQUEST • Initiates the Purchasing Process • Representative of High Risk or High Value Purchases • Can range in cost from $0.01 to $??? • Routes to Purchasing for processing

33. High Dollar – PURCHASE REQUEST Orders $5,000 - $25,000 • Purchasing involvement required • Requires solicitation of HUB vendors • Pricing obtained by informal procurement Orders over $25,000 • Purchasing involvement required • Requires solicitation of HUB vendors • Pricing obtained by formal procurement

34. Mini Quiz • Name a type of “commodity” that should be submitted to Purchasing, regardless of the dollar value. • Who are the ONLY delegated authorized signers of university contracts? • In the UTSA Supplier Mall, which of the following are preferred contracts? • A. Printer Purchases • B. Office Supplier • C. Temporary Employment Services • D. All of the above

35. NOTES After the fact orders: After the fact orders are NOT permitted. Purchase orders must be APPROVED and issued before the merchandise or service is received. Order Splitting: Orders may not be split into smaller procurements in an effort to avoid the competitive bidding requirements.  Procedures are in place to check for this.  Please do not do it. State Funds: No food, drink, entertainment, or floral arrangements. Memberships: Memberships dues paid with state funds require approval of the VPBA. Federal Grant Funds: All orders placed using Federal Grant Funds ( 26 Accounts) must be reviewed by the Office Post Award Administration. Animal Orders: All live Animal orders must have prior approval by the Animal Lab. Vehicle Purchases: All vehicle purchases must have the prior approval of the UTSA Fleet Manager. Advertisements for faculty/staff positions All Advertisements for faculty/staff positions require approval by Human Resources (HR)