Buying for the University of Iowa

Every employee at The University of Iowa plays an active role in the purchasing process. Whether you're a...

	professor requesting a particular text book
	student employee that enters an on-line requisition
	an administrative assistant who makes arrangements for delivery with the supplier

...Everyone has an active role in making purchasing decisions on behalf of the University. Because that role affects virtually every employee, a concerted effort to follow certain steps is required in order to ensure the purchase of the best quality goods or services at the best price.

Departments are responsible for purchases less than $3000 by using established contracts, ensuring best price, following guidelines and ethics and act as a University of Iowa Buyer.

Step 1
Request of Need for Goods and/or Services

	Is there a Vendor in mind?
	Is there a Vendor that is firmly recommended and/or requested?
	Check out the Purchasing Contracts on the Purchasing website.

If yes, proceed to Step 2

If no, consider the following:

	Have you compared pricing (and other specifications) between at least 2 vendors?
	Can the goods/services be purchased under the terms of an existing contract?
	Can the purchase be made internally? General Stores, Maintenance Stores, Material Services Stores, Print Services, etc.

Step 2
Have all methods of procuring the needed goods/services been considered?

Purchase Order - A purchase order is the offer of a contract between the University and an off-campus vendor for the purchase of goods/services.

	If the cost of goods/services is over $3001, an on-line requisition should be created.
	Is a certain type of PO needed to make the purchase more efficient? (i.e.: Blanket)

Procurement Card - Purchases made with the PCard provide expedited payment to the vendor, uphold our tax exempt status and eliminate the use of an employee's own funds.

	Does the vendor selected accept the University's Procurement Card?
	Is the cost of the goods/services within the allowable limits of your Procurement Card $3000 and less per transaction?

e-Voucher - The e-Voucher is an e-form that designates the items that can be purchased without the creation of a requisition or purchase order.

	If the goods/services being purchased are on the approved list (e-Voucher List) and within any specified limit, proceed with submitting the invoice directly to Accounts Payable.
	No Value added by a Purchasing Agent.

Internal University of Iowa Departments - Using the on-line General Stores application or paper requisition form for the other internal departments is a practical and easy method of procuring goods/services within the University (i.e. Stores or Print Services). For more information contact the internal department.

Step 3
Are goods/services being purchased with in the appropriate bid limits?

	Submit for bid (Purchases of Goods and Services over $10,000 and Professional Services over $25,000), edit and approve after bid results are obtained.
	Orders over $250,000 require approval by Board of Regents.
	Orders over $1,000,000 go on Board of Regents Docket and require 60 days advance notice.

If yes, proceed to Step 4

If no,

	Submit a Sole Source on the on-line PReq system for approval (select the appropriate justification criteria to waive the bid process)
	Commence efforts with Central Purchasing Purchasing Agent to send out for bid (if unable to justify waiver of bid).

Step 4
Is there any possibility that any Ethics laws could have been violated in orchestrating the purchase of the needed goods/services?

If no, proceed to Step 5

If yes,

	Return any personal gifts or gratuities provided by the vendor
	Remove oneself from a direct connection with said purchase of vendor could be relative, close friend, etc.; initiate the transfer of the purchasing responsibilities to another buyer.
	If uncertain, refer to the Ethics Law information shown on Purchasing Department's website.

Step 5
Is there a contract or service agreement associated with the purchase of the needed goods/services?

If no, proceed to Step 6

If, yes

	Send copy of the contract or service agreement to Purchasing of review and approval
	Do not sign a contract or service agreement on behalf of your department or the University. The Purchasing Department has been designated by the Office of Legal Affairs to review and approve all purchasing related contracts or services agreements. Regardless how simple the contract may appear, do not sign it...you may become personally liable for the contract provisions.

Step 6
Initiate purchase based on the steps from above.

Requisition Process
A requisition identifies goods or services to be acquired from an off campus supplier. The requisition is sent to the Purchasing Department by direct entry into the Purchase Requisition on-line application.

Note: Information about entering an On-line Requisition is available on the Purchasing website under PReq information.

In order to ensure your requisition is processed in a timely and accurate manner:

	Plan purchases in advance.
	Enter your requisition via the PReq on-line system.
	Group similar items on a single requisition.
	Allow ample time for suppliers to provide large quantities or custom items.
	Be aware that requests for goods and services exceeding $10,000 may be subject to competitive bidding.

Tip 1: Requests for goods or services available from University department should be obtained through General Stores on-line system or paper requisition to the other internal departments.

Optional requisition information that might be included:
Departments are encouraged to provide a suggested supplier name and address. Central Purchasing Agents will work with the department in an alternated supplier offers a better value (e.g. contract pricing) or helps to meet minority program goals. Additional information that may be included in the body of the requisition includes:

	Date and from whom a quote was received
	Special delivery requirements
	Reference to attachments
	FOB point and who pays freight
	Freight account number (University of Iowa has Freight Contract)
	Remind the vendor of the University's exempt status (The University of Iowa is tax exempt). Although not required by law, Exemption Certificates may be provided to vendors in order to document the exempt status of the University. Purchases made by the University outside of Iowa, may not be exempt from another state's sales and use tax. Please review the University's tax policies.
	Negotiate the payment terms our standard terms are Net 30. However, we encourage department to request or ask for cash discount terms i.e. 2%15

Attachments that should accompany a requisition:
Attachments can help clarify the goods or services to be acquired. Examples include:

	Additional specifications
	Written quotation or service report
	Supplier's order form
	Contracts, leases, purchase, license, or maintenance agreements (require Purchasing Department signature)
	Drawings, plans or schematics
	Products samples or literature

Tip 2: Departments that create requisitions on-line should forward attachments to the Purchasing Department, clearly identifying the department requisition number.

Purchase Order Process
A purchase order is the offer of a contract between the University and an off-campus supplier. The purchase order can be viewed on the AP/PO Web application. The original, signed purchase order is faxed to the supplier by Purchasing.

Bid Process
The Purchasing Department has the responsibility to solicit formal bid inquiries from two or more suppliers when the estimated dollar value of the requested purchase is $10,000 or greater for goods (equipment, materials and supplies) and services, unless the items can be obtained under existing contracts. The Purchasing Department may competitively bid any request, regardless of the dollar amount, when it best serves the University. Generally, the buyer responsible for processing your request will contact you in preparation for bidding. Each bid has a unique bid number.

RFQ (also called a bid or price inquiry) - a document provided to bidders requesting prices for goods or services.

RFP - a request for bidders to provide a customized response, often for services or goods that include a service element. Responses may include pricing, enhancements, implementation plan and timeline.

RFI - a request issued to suppliers within the scope of a specific commodity or market to determine the viability of a concept. No award is made from a RFI.

Invoicing and Payment
An invoice is a billing document that provides itemized descriptions and prices for the goods and/or services a vendor has provided. Unless otherwise stipulated on the purchase order or contract, all invoices or packages do not reference a University Purchase Order number. When invoices are received in Accounts Payable the invoice is compared and verified against the Purchase Order and vouchers are created

	Assumed Receipt Voucher
	Capital Equipment and or greater than $10,000

Payment is made based on scheduled due date.

Prepayments:

In some situations, the vendor requires payment before any merchandise will be shipped of offers a discount if the order is paid in advance.

Prepayments Less than $3000

Prepaid purchases totaling less than $3000 do not require a Requisition.

	e-Voucher - Include the complete department delivery address in the "Ship-to" box, as this is the only delivery information then vendor will receive. They will not receive and accompanying Purchase Order.
	Price Verification from the vendor.

Prepayments greater than $3001

For purchases totaling more than $3001 submit the following to Purchasing, 202 PCO:

	Purchase Requisition Form with "Prepayment" noted in the body
	Price Verification from the Vendor
	Exception: No purchase order required when an agreement has been signed by Michael J. Finnegan, Business Manager. In this case, prepare a Voucher and Invoice.

e-Voucher:
The on-line e-Voucher form allows departments to initiate payment to vendors. Use them with prepaid orders or to set up payment for invoices received at your department. Create the e-Voucher via E-Pro for miscellaneous Non-Purchase Order transactions, prepayments and any low-dollar transactions totaling less than $3,000 to the Accounts Payable Department, 202 PCO. Do not use this form for prepayments greater than $3,000 and procurements, which require a PReq.

e-Voucher provides departments the flexibility to order products and services under $2,000 (including shipping and handling) directly from the vendor. Accounts Payable audits and reviews the e-Voucher before payment is made to ensure all charges are appropriate. The department assumes the responsibility for maintaining sufficient order records, answering vendor questions and handling credits.

Reimbursements A reimbursement is the paying back of money that has been spent on behalf of the University. Reimbursements differ from refunds in that a refund is the paying back of money that has been paid to the University. See the University of Iowa Operating Manual Policy and Procedures and How to Procure at the University of Iowa Manual.