PURCHASING GUIDELINES AND PROCEDURES

Name	Phone Number	Email	Ext.
George Thorn, Jr. Director	908-737-5050	gthorn@kean.edu	75050
Joe Kang Assistant Director	908-737-5050	sjkang@kean.edu	75050
How to Contact Purchasing:
Purchasing Hotline For On-Line Requisitions: Ext. 75056
Judy Pavese	908-737-5056	jpavese@kean.edu	75056
Linda Robinson	908-737-5052	lrobinso@kean.edu	75052
Jean Marcantonio	908-737-5050	jmarcant@kean.edu	75050
Marie McSween	908-737-5050	mmcsween@kean.edu	75050
How to Contact Mail Services:
Eric Will	908-737-5070	ewill@kean.edu	75070
Luis Salgado	908-737-5070	lsalgado@kean.edu	75070
Joyce Spence	908-737-5070	jspence@kean.edu	75070
How to Contact Materiel Services
Ed Reilly	908-737-5080	ereilly@kean.edu	75080
Frank Vallero	908-737-5080	fvallero@kean.edu	75080
Wayne Edmundson	908-737-5080		75080

Purchasing Objectives

University Purchasing is the authorized designee to negotiate the purchase and lease of all supplies, equipment and services at Kean University. University Purchasing is responsible for procuring goods, and services in the most fair, competitive and equitable manner possible.

The objectives of University Purchasing are:

To purchase, rent or lease all goods and services to support the university’s educational and administrative operations, in accordance with university policy.
To maintain good relations with suppliers, and to ensure that goods and services are delivered on schedule.
To develop and implement sound cost-effective policies, procedures and systems regarding the procurement of goods and services needed to support educational and administrative activity.
To encourage open competition among vendors through fair negotiation, competitive bidding, and contract buying.
To develop and maintain a complete and current inventory of all capital and fixed assets belonging to the university.
To comply with all State and Federal requirements pertaining to the procurement of goods and services.

The Kean University Purchasing System

All purchases at Kean University are to be made through the online purchasing module in the Colleague Distributed Financials system.

Access to Distributed Financials requires a login ID and password; training is required to effectively use the system. Please call extension 75050 for information on upcoming training classes.

The following steps are utilized before a purchase requisition can be paid:

1. The online requisition is completed using Colleague Distributed Financials.

2. The dean or department head approves the requisition in the system.

3. The vice president of the appropriate department approves all requisitions over $1,000.

4. The requisition is sent electronically to University Purchasing upon completion and

authorization.

5. University Purchasing changes the requisition into a purchase order.

6. The purchase order is signed and mailed to the supplier.

7. The goods are shipped to the university based on the purchase order contract item

description.

8. Acceptance of goods or services is entered into the Distributed Financials system; this

sends a flag to Accounts Payable notifying them that the supplier can be paid.

9. Invoices must be sent directly to General Accounting.

10. General Accounting pays the invoice.

Use the requisition worksheet to record the product and vendor information that will be entered into the online Distributed Financials system. All the information needed to complete an online requisition is indicated on the requisition worksheet.

Purchase Orders

A purchase order contract is legal document governed by the Law of Contracts and the Uniform Commercial Code of Law (UCC). It is a contract between Kean University and a supplier for goods and services; therefore, it is the only method of acquiring goods and services for the university. University terms and conditions are also part of all contracts.

Prepayment

Some suppliers require prepayment with a purchase order; therefore, the exact price should be determined before prepayment is requested. Follow the steps below to process a prepayment order:

Send all order forms and invoices that will accompany the prepayment to University Purchasing.
Write the requisition number on the documentation being sent. (The requisition number is the number automatically assigned to a requisition through the online Distributed Financials purchasing system.)

Examples of pre-payments are: theater tickets, subscriptions, lectures, honorariums, consultants and memberships.

Bid Specifications

University Purchasing issues bid specifications that will permit fair and equitable consideration from qualified suppliers. Specifications should be written as openly as possible to avoid the exclusion of potential bidders.

The nature of certain goods and services may make it difficult to formulate specifications. In such cases, the user department may specify a brand name, model number, or item catalog number and should include the words "or equal" as part of item specifications.

Any alternates offered by the low bidder as "equal" should be reviewed for acceptability by the ordering department and University Purchasing. If alternates are not acceptable, the department must give written justification for each alternate rejected. This written justification is retained in the bid file and shall be open to the public for review, if requested.

Set Aside Purchases

It is the mission of University Purchasing to provide fair and equal treatment to all suppliers involved in the procurement process. All contracts for the purchase or lease of goods and services are awarded through competitive bidding or negotiation processes established by University Purchasing.

Kean University, in conjunction with the department of New Jersey Commerce & Economic Growth Commission in Trenton has established a Small, Minority and Women-owned Business Enterprise procurement program in the State of New Jersey.

The goal of this program is aimed at stimulating the growth of SBE’s, MBE’s and WBE’s by encouraging their participation in all phases of the procurement activities at Kean University.

The targets are to award 15% of the dollar value of contracts to eligible small businesses, 7% to eligible minority businesses and 3% to eligible female businesses.

University Purchasing attends conferences and trade shows supported by Small, Minority and Women-owned businesses in order to explain the university bidding process.

Ordering departments are also encouraged to be aware of this commitment by Kean University and they are encouraged to utilize these suppliers when available.

Bidding Procedures

University Purchasing maintains a list of qualified suppliers in most commodity areas and is responsible for selecting suppliers. User departments may also recommend suppliers; however, University Purchasing has the final authority in selecting the supplier for any purchase.

Pre-bid conferences or mandatory site-inspections may be conducted when it is apparent that because of the complexity of the request for goods or services, additional clarification is needed by suppliers.

Guidelines for Competitive Bidding

University Purchasing will determine when competitive bids for goods or services are required by estimating the value of the request and by reviewing the specifications and delivery requirements. The guidelines are as follows:

Purchases Up To $26,200 (effective March '06)

The University Purchasing buyer may solicit written bids, obtain telephone quotes or place orders immediately, depending on the competitive nature of the goods or services and the needs of the user department. This $18,600 amount is cumulative for a supplier during the fiscal year. A supplier cannot be used by the university once the threshold amount is reached.

Purchases Over $500.00

Note: If a requisition is $500.00 or more, the ordering department must provide a written quote from the vendor.

Purchases Over $26,200

The University Purchasing buyer will obtain three or more competitive sealed bids. These bids are opened and read at a public bid opening which may be attended by bidders and university personnel.

Bid Waivers

When the normal thirty day bidding process period is not acceptable, or the product or service is unique or, the dollar amount exceeds $18,600, the user department may request a bid waiver, in writing, indicating the circumstances for the waiver request. Please print out the form Request for Waiver of Public Advertising and Bidding and send to Purchasing.

The bid waiver request is issued to the Director of University Purchasing and the Associate Vice President for Administration and Finance; it is then submitted to the board of trustees for review and approval.

A responsible bidder is defined as:

A manufacturer, producer, or dealer, or a bona fide manufacturer’s agent, regularly employed on a salary or commission basis by one or more manufacturers.
One who has demonstrated sound judgment and integrity; showing a record of satisfactory performance and a financial status that will not present a risk to the university in its contractual relations.

If the director of University Purchasing concludes that a bidder lacks the ability to ensure adequate performance, their bid may be rejected even though it is the lowest bid.

Kean University retains the right to reject bids when costs are over budget, when bids do not meet specifications, or when it is in the best interest of the university to do so.

Unsatisfactory Supplier Performance

A. The goal of University Purchasing is to award contracts to responsible bidders who meet all bid specifications.

B. Unsatisfactory supplier performance must be described in writing and forwarded immediately to the director of University Purchasing.

C. Suppliers that fail to perform to an acceptable level will be removed from the bidder’s list.

D. The final authority for supplier removal from the university bidder’s list remains with the Associate Vice President for Administration and Finance.

Unauthorized Purchases

Placing a purchase order with an outside supplier without General Accounting approval and a university purchase order constitutes an unauthorized purchase. Payment to the supplier may be refused for unauthorized confirming requisitions. Repeated violations involving unauthorized purchases by the same department will be referred to the director of University Purchasing for resolution.

Purchases made with personal funds on behalf of the university are against university policy. Reimbursement to the individual may be refused or in cases where the goods or services could be purchased at a lower price, reimbursement may be limited to the lesser amount. Kean University is a tax exempt institution; therefore, sales tax paid with personal funds will not be reimbursed.

Resolution of Disputed Purchases

University Purchasing will review and refuse any requisition for goods and services if the purchase is contrary to university policy. Disputed purchases will be submitted to the director of University Purchasing for final resolution.

Emergency Requisitions

Emergencies are regarded by the university as life safety hazards, keeping vital equipment operative or preventing the deterioration of an experiment. Valid emergency purchases can be made with the verbal approval of University Purchasing after it has received budget approval. The user department may then process an authorized purchase requisition immediately using the online Distributed Financials purchasing system. An explanation of the emergency should be submitted to University Purchasing in writing.

Procedure for Placing an Emergency Order

A. Enter the ordering information into the Distributed Financials System; contact University Purchasing immediately to advise them of the emergency. The purchase order will be issued. University Purchasing will forward the purchase order to the supplier by fax or phone.

B. When preparing the requisition, the word "EMERGENCY" and "CONFIRMING ORDER" must appear in the body of the requisition.

C. Necessary after-hour purchases should be handled as emergency purchases. User departments may make the necessary purchases and contact University Purchasing on the next work day with details.

Contracts for Goods and Services

University Purchasing establishes contact with suppliers by bidding and negotiating for a variety of goods and services throughout the year. As a convenience to university departments, blanket purchase orders may be issued to contracted suppliers. See section on Blanket Requisitions.

State Purchasing Contracts

The State of New Jersey Purchase Bureau establishes contracts for a variety of products and services. The State Purchase Bureau permits the various sub-political bodies and agencies, to purchase goods and services against these state contracts. Blanket orders can be issued for these contracted suppliers. The list of state contract suppliers can be accessed via the internet at www.state.nj.us/treasury/purchase .

Some state contracts are awarded based on a specific dated price list and discount schedule. It is the responsibility of University Purchasing to obtain the price lists, catalogs and discount schedules, from the contracted suppliers. This material is kept on file in the University Purchasing department, and is available to user departments.

Blanket Requisitions

Blanket requisitions may be issued to outside suppliers in any dollar amount, when a university bid and state contract are used, blanket orders under the bidding threshold of $18,600 may also be issued.

Blanket requisitions enable university departments to purchase frequently ordered goods or services with a single order in place of multiple orders. Use the Distributed Financials on-line system to enter blanket order requisitions. Blanket orders may be issued to suppliers after the conditions of a contract have been established by University Purchasing.

The user department may issue releases against the blanket order after they receive the "Acknowledgment Copy", signifying that the order was processed to the supplier. Departments must review the charges against their blanket orders using the Distributed Financials system.

When funds against a blanket order have been depleted, an increase to the blanket order should be processed if the department wants to continue to utilize the order. Once approved by the director of University Purchasing, the amount of the blanket order will be increased in the Distributed Financials system.

To increase a blanket order:

ß Send an e-mail or memo to University Purchasing indicating the purchase order number of the original order issued.

ßIndicate that the request is to "increase" the blanket order.

ß Use the Distributed Financials online system to enter blanket order requisitions.

Service and Equipment Agreements

Equipment furnished on a rental, lease, or lease purchase basis should be covered by an agreement. Scientific, computer, and office equipment, should be maintained under service agreements to ensure continued operation.

All contracts and agreements for goods and services are to be signed by the director of University Purchasing or the authorized agent who has buying authority. Thus, departments receiving any of these documents from suppliers should forward all original copies to University Purchasing for signature.
User departments will receive fully executed copies of agreements for their records after the contract has been signed.
The original copy of this agreement will remain on file in University Purchasing until it expires. User departments are responsible for:

Initiating requisitions for agreement renewals.
Notifying University Purchasing of any agreement cancellations or changes.
Fulfilling all agreement provisions.

Price Estimates for Budget Planning

User departments may request a single informal quote from a supplier for budget purposes only. University Purchasing will also provide price quotations to departments for budget planning purposes and they may solicit additional quotations based on market conditions.

Major Equipment Purchases

Major equipment is defined as equipment requiring utility connections such as, electricity, water, sewer or gas. Small copy machines and other office equipment operating from standard electrical duplex outlets are not considered major equipment.

Electrical Requirements – When requesting equipment using electricity or the gas, consideration must be given to see if electrical outlets are available at the desired location and that the addition of this equipment would not cause an overload. Generally, the University requirement, other than 100-120 volts AC, is 208 volts 3 phase. Please check with the Facilities Department, at extension 75000 for more information.

Size and Weight – When ordering items, be sure to take the size of the item into consideration, so that getting equipment into the building will not require the destruction of any walls, or other structures. Always consider the size of the elevators, stairways, doors, and hallways when moving the item to its final destination. Ordering departments should be sure that the item will fit through these areas before ordering.

Installation – If possible, make sure installation is included with your purchase. Do not presume that the Maintenance Department will be able to install the item in time for use.

Assembly – Make sure that you know whether the items that you are requesting are pre-assembled before ordering.

Cancelling an Order

To cancel a purchase order, contact University Purchasing immediately. A purchase order, once issued to the supplier, is a binding contract; therefore, the supplier is not obligated to accept any cancellations.

If the order can not be cancelled, the ordering department is responsible for paying for the goods or services ordered. If cancellation is permitted by the vendor, a letter cancelling the original order will be processed by University Purchasing.

Shipping/Delivery Costs:

Shipping and delivery costs are considered part of the contract and do not require an addendum, even when they exceed the original purchase order amount.

Return of Equipment and Supplies for Credit

Suppliers are not obligated to give credit for equipment or supplies that were delivered as specified; however, University Purchasing will assist departments with the return of goods for credit. University Purchasing may be reached at extension 75050.

NOTE: Supplier restocking fees are a standard business practice.

Useful Transportation Definitions:

The F.O.B. Point (Freight-on-board) is the location where the title to the goods passes from the seller to the buyer.
F.O.B. (Freight-on-board) Destination Prepay and Add means the supplier is liable for loss or damage, and is also responsible for filing any claims with the shipper. The supplier will normally pay shipping charges and add it to the invoice, but this should be verified with the supplier in advance.
F.O.B. (Freight-on-board) Shipping Point means the ordering department is liable for loss, shipping cost, damage and the responsibility for filing any claims with the shipper.
BEST TERMS F.O.B. Destination means all shipping charges are included. The supplier is responsible for shipment and any damages.

Receiving and Inspection of Goods

Follow the procedures outlined below when a shipment is received that is contained in cartons from Central Receiving:

Verify that the number of pieces received match the description and quantity indicated on the purchase order and packing slip.
Examine the cartons closely for any damage
If the cartons are damaged, open them before signing the delivery receipt from Central Receiving.
Describe the damage on the delivery receipt. The shipper will not be responsible if the exact damage is not noted on the delivery receipt or Bill of Lading.
Save the cartons if you find any damage. The claims agent may wish to examine the cartons to determine how the damage occurred.
Departments will be liable for any damage or shortage if it is not noted on the delivery receipt or Bill of Lading.
Carriers are not liable for damage after fifteen calendar days; therefore, goods should be unpacked as soon as possible after receipt. Damage must be reported to the delivering carrier before the fifteen calendar-day limit has expired.

University-Owned Equipment (Fixed Assets)

University-owned equipment or Capital Equipment is defined as follows:

Category I

Items with an original cost of $5,000 or more, with a useful (depreciable) life of at least five years, an identity that does not change with continued use, and a shelf life that makes accountability practical.

Cost includes installation and freight charges, and the value of the trade-in if there is one. Standard university discounts are subtracted from the cost.

Category II

The following is also considered equipment when it meets the definition described in Category I.

Accessories or attachments: Items that cost more than $5,000, relate to another item of equipment, and are attached to or remain with that item.
Fixed Items: Equipment that is merely attached or fastened to the building and can be removed without the need for costly alterations or repairs to the building to make the space usable for other purposes. Examples of fixed items include appliances, athletic equipment and audio visual equipment.
Transferred Items: Items received from the Federal or State government or other institution that meet the definition of fixed items. Cost is the original acquisition dollar amount shown on the transfer document.
Equipment Gifts will be inventoried if they fulfill the definition of equipment. The valuation shown on the gift document will be used cost. If this is not available, the estimated value at the time of acquisition will be used.

Exceptions:

Items that are not considered equipment, even though they cost more than $500 include:

Part of a building or structure
Alterations to facilities
Replacement parts
Consumable supplies
Glass products
Books, films, microfilms, transparencies, tapes and records
Rented or leased equipment

Disposal of University-Owned Equipment Furniture or Other Property

All university-owned equipment, furniture and other items which are no longer needed by departments should be declared as "surplus". Notify University Purchasing, in writing, of all surplus equipment.

When trading-in used equipment towards the purchase of new equipment, it is the ordering department’s responsibility to list and describe each item to be traded-in on the purchase requisition. The description for each item must include the tag number and the manufacturer’s serial number.

University Purchasing is responsible for handling all fixed assets at Kean University. They will code the equipment as a traded-in and delete it from the financial records of the university. University Purchasing maintains files of purchase orders describing all trade-in transactions. These documents are kept for information and audit reviews.

Materiel Services, is the university authority for handling the disposition of all university-owned property. They can be reached at extension 75080.

University Service Departments

Materiel Services

Materiel Services provides various material handling services to university departments. The office hours are 8:00 a.m. to 4:00 p.m. Monday through Friday.

Receiving Depot

The Receiving Depot is staffed to receive incoming shipments of equipment and supplies. These incoming shipments are distributed to campus departments by the Warehouse.

Office Supplies

The Warehouse stocks over one hundred different commonly used office supplies such as pens, pencils, typewriter ribbons, staples, and other stationery items. To purchase items from the Warehouse, departments should complete the Stationery Supply Requisition and forward it to the Warehouse.

Fill in the stationery supply requisition completely.
The department supervisor or designee must sign the form.
There must be sufficient funds in the department’s budget to cover the purchase of the requested supplies.

Items sold to a department will be charged to their account at the current inventory price in the month of the purchase.

Allow three working days to fill and deliver an order.

Out of stock items will be indicated on the packing list copy of the Supplies Requisition form that is delivered with the requested items.

Emergency orders can be picked up between 8:00 a.m. and 4:00 p.m. provided that a signed Supplies Requisition form is presented.

The quantity delivered may differ from the quantity requested due to a limited supply or a difference between the standard unit of issue and the ordered quantity. If a requisition is not filled completely, the unfilled items must be re-ordered; the Warehouse does not back order any items.

Any questions about Warehouse stock items, forms or charges should be addressed directly to the Warehouse supervisor at extension 75080.