PURCHASING DEPARTMENT MISSION STATEMENT
The mission of the
University of Iowa Purchasing Department is to obtain quality
goods and services at the lowest reasonable cost, while operating
at the highest standards of ethical conduct. We accomplish
this through cooperative team interaction and continuous quality
improvement in support of the overall goals of Finance and
Operations. Purchasing's authority is delegated from the
Board of Regents through the President of the University in
accordance with the statutes and administrative rules of the
State of Iowa and the procedures of the Board of Regents.
The purchasing process includes not only
the ordering of goods and services and the receipt of ordered
products, but extends to invoice processing and payment, involving
many people and departments. Requisition information is entered
into the Purchasing and Payables system, which Purchasing
Agents use to process Purchase Orders. Purchasing Agents also
work directly with vendors to negotiate fair and reasonable
contracts for quality goods and services.
Departmental Requesters fill a key role in
the purchasing and payment processes.
They are the liaisons between the ordering departments
and the Purchasing department. Since Requesters’ names and phone numbers appear
on Purchase Orders, Requesters are in many cases the first
contacts between The University and the vendors.
Depending on their department’s organization, Requesters
may be responsible for the completion and tracking of Requisitions,
accounting, and receiving products and services. In short,
The University relies on their valuable skills and expertise.
The Purchasing Policies and Procedures Guide
is written for individuals with departmental responsibility
and authority in The University’s purchasing and payables
processes. This guide
contains references to the State Code of Iowa, Regents, and
University policies, which govern the purchasing and payables
processes. The Purchasing Department welcomes any questions
that may arise regarding these policies and procedures. Names,
telephone numbers and areas of responsibility of Purchasing
Staff members are included. Faxes, voice mail and e-mail promote
timely responses to your inquiries.
The University
of Iowa
has three methods for ordering products and services.
E-Pro
is the new e-procurement web based application. It consists
of PReq
and e-Voucher
applications with a link to the ProTrav application. PReq initiates a purchase order which is required
for the purchase of goods & services greater than $3000.
It is optional for purchases less than $3000. E-Voucher initiates a payment which is required
for goods and services less than $3000. It is also used for
memberships & certification fees, subscriptions, refunds,
reimbursements, research subjects and utilities. ProTrav
is the procurement card reconciliation tool and web-based
travel system. It is for low dollar goods & services and
includes all travel processes & forms along with travel-related
reimbursements and payments. Detailed
descriptions of these processes can be found in the Requesters
Guide to Purchasing and Accounts Payable at www.uiowa.edu/~purchase
All individuals acting on behalf of The University
in authorizing purchases have the responsibility to ensure
compliance with the applicable Federal and State statutes
and Regents’ guidelines.
Policies and procedures for The University
purchasing and payments processes, detailed in this guide
reference the State Code of Iowa, Regents and University Policies
including but not limited to the 2004 edition of The University
of Iowa Operations Manual, Part V. Administration, Finance,
& Facilities, Chapter 11.
The Purchasing Department administers the
procurement of products and services for all University departments
by the authority delegated through the President by the State
of Iowa Board of Regents. The Director of Purchasing is vested with sole
authority to obligate University funds, while ensuring adherence
to the statutes and administrative rules of the State of Iowa and the policies and procedures of the
Board of Regents.
The Purchasing Department follows the Code
of Ethics of the National Association of Educational Buyers
(NAEP), the professional association serving the purchasing
and materials management professionals who support higher
education and not-for-profit health care organizations. For
the NAEP Code of Ethics see Appendix
C or www.naepnet.org/.
The Regents Policy Manual, 7.07, is explicit
regarding University business transactions with employees
of Regents institutions and should be consulted directly as
the need or question arises. "Employee shall mean a paid employee of
the State of Iowa,
the employee's spouse or minor children, and any firm of which
any of those persons is a partner or sole proprietor, as well
as any corporation of which any of those persons holds five
percent or more stock either directly or indirectly."
For more information on Conflict of Interest
as it relates to state employees, see Iowa Code Section 68B.2A
Conflicts of Interest at www.legis.state.ia.us/IACODE/1999SUPPLEMENT/68B/2A.html.
For more information on Conflict of Interest
as it relates to public bids being required -- disclosure
of income from other sales. See www.legis.state.ia.us/IACODE/1999SUPPLEMENT/68B/3.html
The Federal Government employs a slightly
different standard of conflict of interest which may affect
SUI employees purchasing goods and services with federal grant
or contract funds.
The Federal Government also states that even
the appearance of impropriety is to be avoided. The following
section from the Office of Management and Budget Circular
A-110 (OMB A-110) Uniform Administrative Requirements for
Grants and Agreements with Institutions of Higher Education,
Hospitals and other Non-Profit Organizations deals with conflicts
of interest.
“A-110.42 Codes of Conduct. The recipient shall maintain written standards
of conduct governing the performance of its employees engaged
in the award and administration of contracts. No employee,
officer, or agent shall participate in the selection, award,
or administration of a contract supported by Federal funds
if a real or apparent conflict of interest would be involved.
Such a conflict would arise when the employee, officer, or
agent, any member of his or her immediate family, his or her
partner, or an organization which employs or is about to employ
any of the parties indicated herein, has a financial or other
interest in the firm selected for an award. The officers,
employees, and agents of the recipient shall neither solicit
nor accept gratuities, favors, or anything of monetary value
from contractors, or parties to sub-agreements. However, recipients
may set standards for situations in which the financial interest
is not substantial or the gift is an unsolicited item of nominal
value. The standards of conduct shall provide for disciplinary
actions to be applied for violations of such standards by
officers, employees, or agents of the recipient.”
For a complete listing of purchasing guidelines
when using federal funding refer to the Office of Management
and Budget Circular A-110 at the following address: www.whitehouse.gov/omb/
Personal relationship means relationship
with another sufficiently close that a reasonable person would
believe that it would be most difficult for a faculty or staff
member to deal with the person as he or she would deal with
a stranger.
Financial relationship means a partnership
or other commercial relationship involving a joint venture
between the faculty or staff member and another person.
a)
Purchases from faculty or staff members exceeding $1,000 for
one transaction or $2,000 in one year must be approved by
the Board of Regents, State of Iowa.
b)
Services of faculty or staff, or members of their immediate
household other than those in established businesses providing
such services as outside contractors, unless approved in the
budget or in advance by the Vice President for Finance and
Operations, are approved only after Purchasing has determined
the services are either uniquely exclusive or otherwise beneficial
to the University in comparison to other available sources
of the required services.
c)
University faculty or staff members cannot be interested,
directly or indirectly, in any contract to furnish material
of any kind to or for the University. In addition, participation
in direct sales (pyramiding) ventures is considered a direct
or indirect interest in a contract and is encompassed by this
policy. Based on special approvals, faculty or staff members
may be reimbursed for out-of-pocket expenditures on presentation
of approved vouchers with receipts or other acceptable evidence
of actual amounts paid for items purchased for University
use.
d)
Faculty or staff members who would benefit personally from
the supplying of goods or services to the University by any
prospective supplier may not participate in the decision process
leading to the choice of supplier. Specifically, faculty or
staff members who have or who reasonably anticipate having
either an ownership interest in, a significant executive position
in, or a consulting or other remunerative relationship with
a prospective supplier may not participate in the recommendation
of, drafting specifications for, or the decision to purchase
the goods or services involved. Faculty or staff members who
know that a member of their family (or any other person with
whom they have a personal or financial relationship) has an
ownership interest or significant executive position in a
prospective supplier are also disqualified from participating
in the purchasing of the goods and services. However, faculty
or staff members whose sole ownership interest in a potential
supplier is held by a fiduciary (such as TIAA-CREF, a blind
trust, or a mutual fund) that has the power to acquire or
dispose of the interest without consultation with the faculty
or staff member are not disqualified from participation in
the purchase decision.
e)
When a faculty or staff member is disqualified from participating
in a procurement decision, the fact of the disqualification
and the reason for it must be reported to others involved
in the decision. If necessary, a substitute may take the faculty
or staff member's place under procedures established by the
Vice President for Finance and Operations. Consult the Purchasing
Policies and Procedures Guide for details.
The Purchasing Department maintains a significant
file of catalogs, reflecting current prices for equipment,
goods and services for the information of all departments.
Negotiations for purchases, including requests for quotations,
or requests for proposals, must be accomplished through the
Purchasing Department.
When
possible, and when it makes good Purchasing sense, requisitions
should be directed to Iowa Targeted Small Businesses. All
state agencies have a goal of 10% of their overall business
going to these minority and women-owned TSB. Sources of supply
are also sought from the state and federal small business
community to satisfy various social, economic, and political
requirements.
State agencies are also encouraged to direct
business to Iowa Prison Industries. Orders are reviewed for appropriateness, based on quality and competitiveness.
Requests for items that are available from
the U of I General Stores are directed to them. Orders
for printing and copying services are directed to the U of I Printing Department. Orders that
the Printing Department cannot fulfill are directed to outside
vendors and paid on State Printing Orders, which the Printing
Department issues. Bids for printing to outside vendors are
also handled by the Printing Department.
Requisitions
are also reviewed for possible purchase based on existing
contracts and, if the items ordered are under contract, the
purchase is directed to the appropriate vendor for the contracted
price. Examples of
the various available contracts are: University of
Iowa, Joint
Regent, E & I, State, CICPC, and UIHC Novation.
Acquisitions of products and services under
$5000 may be handled three ways:
Submission of a PReq, a e-Voucher,
or use of a procurement card or PCard. Purchasing authority has been delegated to each
department for those transactions <$5000. Purchasing encourages the use of the Procurement Card for
these transactions, but other factors may be considered when
making this purchasing decision.
Every department is encouraged to apply
for a departmental Procurement Card to process their transactions under
$5000. This eliminates significant costly processes
such as order writing, mailing or faxing of orders, processing
invoices, and check writing. The card is issued in the name
of the employee responsible for ordering supplies for the
department
The Department creates the requisition on
the PReq
system and sends it to Workflow. Both are accessed via the U of I Self-Serve. The PReq system assigns a Buyer to each requisition
based on the Category Code of the first line item. Requisitions are routed via Workflow to the
specified Purchasing
Agent (Buyer) after the final departmental approval.
The Purchasing
Agents review, edit, and approve the requisitions in their
Workflow inbox. After the Purchasing
Agent has approved the requisition, and if no additional
approvers remain on the Workflow path, the PReq system assigns
a purchase order number. Three times daily PReqs load to PeopleSoft as Open Purchase Orders.
The Purchasing Agent
does final PO edits to the
Tolerances, Freight Terms, Payment Terms, PO Type, Dispatch
Method, Match Action, and Match Rule, if needed and approves
the order.
PReqs for supplies and equipment over $10,000
are entered by the department and sent to Workflow.
After the final departmental approval the requisition
is routed to the Purchasing Agent. They must be competitively bid unless existing
contracts are in existence or the user can provide justification
for directing the order to a sole source.
If the products are unique and cannot be supplied by
any other known vendor, the sole source justification included
with the PReq is completed. The sole source should also be
documented in an RFQ Recap along with the quote from the vendor.
All competitive bids must be posted to the
State’s TSB 48 Notice Web Site prior to sending out
the bid. This allows Iowa Targeted Small Businesses to review all of the state agency bids
and to seek potential opportunities for business by responding
to whatever bids they feel they are capable of supplying those
products or services.
All RFQ/RFPs
require a minimum of three bidders.
This is a requirement of state law and Regent Policy. See the Board of Regents Policy Manual at www2.state.ia.us/regents/Policies/Chapter~7/chapter7.htm for detailed
information. However,
there often are good reasons to include more than three vendors. When selecting a vendor it is advisable to contact
the Purchasing department if you are developing a vendor list
at the department level. Purchasing often has pre-approved
vendors and Targeted Small Vendors they would like to have
included. When developing
a vendors list the following sources can be useful; telephone yellow pages, Thomas Registry, sales
representatives, industry contacts, trade journals, previous
bids, and from peers and colleagues at other universities.
Requests $25,000 and over are entered by
the department and sent to workflow.
After the final departmental approval the requisition
is routed to the Purchasing Agent. The Purchasing Agent approves the requisition.
The requisition is routed to the Director of Purchasing
as the final approver in the Workflow path. The PA forwards all necessary supporting documentation
(RFQ, Sole Source documentation, contracts etc) to the Director
of Purchasing.
Capital equipment requests $250,000-$1,000,000
must be submitted to the Board of Regents Executive Director
for review and approval prior to order writing.
Capital equipment requests in excess of $1,000,000
must be put on the Board docket and approved by the Regents
at their monthly meeting.
If you are trading in University of Iowa
tagged equipment against a new purchase, create a separate
line item and include the Property Management tag number in
the item description field and the trade-in amount, as a negative
dollar amount, in the extension field on the Requisition form.
Property Management uses this information
to remove assets and to correctly record the amount of the
newly purchased equipment in the asset books for your department,
or “in The University ledgers.”
If disposing of U of I tagged equipment,
be sure to complete the Surplus Form and route to Property
Management to review and pass on to Surplus.
Surplus will assist departments in reselling equipment
or disposing of obsolete equipment. Depending on the type and value of the item
being resold, a percentage of the proceeds may be returned
to the department. Contact Surplus Stores at 5-5001 for more
information.
For additional information on disposing of
equipment, see The University of Iowa Operations Manual, Division
V, Chapter 12 at www.uiowa.edu/~our/opmanual/v/12.htm
Due to a variety of legal factors, including
risk of loss, liability, audit trails, ownership, etc., the
following protocol has been established to assist University
departments wishing to test or evaluate equipment prior to
purchase:
Equipment requested by University departments
from vendors on a trial, loan, demonstration or evaluation
basis does not constitute a commitment to purchase said equipment.
The requesting department must inform Purchasing before any
equipment with a fair market value exceeding $10,000 is to
be tested or evaluated for more than five days.
Vendors wishing to make arrangements for
demonstrations of their product or equipment must coordinate
these plans with the appropriate Purchasing Agent. The individual
receiving the equipment for their department must submit a completed Equipment on Loan
or Demonstration Agreement form to Purchasing prior to accepting
the equipment for demonstration, testing, or evaluation.
User department personnel should not indicate
to vendors that the loan, demonstration, testing, or evaluation
of equipment constitutes a preference for that equipment or
will result in an order to purchase that equipment. Competitive
purchasing processes will be used as required by University
policies and procedures. If the vendor who loaned the equipment
is the successful vendor, new equipment must be supplied unless
alternate quotations were allowed for or requested in the
competitive purchasing process.
All moving, handling, transportation and
applicable installation costs associated with equipment of
this nature are the sole responsibility of the vendor. The
University will not incur any costs associated with equipment
on trial, loan, demonstration, test or evaluation.
In the event of a loss, the department will
contact Risk Management for instructions and claim forms.
Zero dollar requisitions for trial basis
equipment cannot be entered into the PReqs system. Contact
the Purchasing Agent for assistance with orders for trial
merchandise.
For a copy of the Equipment on Loan or Demonstration
Agreement form see Appendix B for
cover letter and print form by accessing it at www.uiowa.edu/~eforms/prch/eldaf.pdf
Sole source items are items performing a
certain function for which no other items are known to exist.
Superior products with new patents or uniqueness (art
work) may limit the purchase to a sole source.
Justification for specifying such items is extremely
important and must be documented. Sole-source situations, however, can be minimized
by use of performance specifications, and Requests for Proposals.
Single source, or sole source, purchases
are for items which are restricted to one manufacturer or
source because of an emergency situation or standardization
decisions. In some
cases, emergency requests can be phone or fax quotes for price
verification. Where
standardization is justified, many purchases can be bid through
several distributors. The justification may be that the supplier
is the only source for the commodity, or they may operate
in a limited competitive market where the manufacturer only
authorizes one dealer for its products in each sales area. The vendor could have a patented design or feature,
or merely be the closest producer from a transportation standpoint. They may have a higher quality product, have
better engineering support, or have the best production capacity
for the buyer’s needs. They
may also be the only supplier willing to deal with small volume.
Other justifications may include superior customer
service, low reject rates, favorable payment terms, or a good
delivery track record.
The Purchasing Agent has the authority to
approve or reject the justification.
Approval does not preclude the Purchasing Department
from securing a formal quotation for the product or service.
Purchasing Agents are empowered to negotiate more favorable
agreements or solicit better pricing, terms and conditions.
Sole Source Justification forms can be obtained by accessing
the e-forms web site at: http://www.uiowa.edu/~eforms/ or contacting
the Purchasing Department.
The Office of Naval Research (ONR) has Federal audit responsibility for
all federal funds granted to The University, and the equipment
obtained with those funds. Every 2-3 years ONR audits The
University of Iowa purchasing system and equipment inventory
system to evaluate compliance with Federal Acquisition Regulations.
The results of this audit determine The University's eligibility
to compete for Federal funds. The ONR regional audit offices
recommend approval or disapproval of these systems to other
Federal agencies based upon their audit findings regarding
the degree of The University's compliance. The State Auditors
and our own Internal Audit staff also ensure frequent, thorough
review of our processes.
The University is exempt from paying sales
tax on the gross receipts from goods and services rendered
in fulfilling its purpose as an educational institution. Taxes
are collected on the gross receipts of any activities for
which an admission fee is charged, including athletic events,
theater, concerts, student organization activities, and others.
The University collects sales tax on sales of goods, food,
and services which are available to the general public.
Please see: www.uiowa.edu/~gencouns/salestax.shtml
for more information.
When ordering scientific instruments, educational
or other goods from foreign countries, Departments must apply
for duty-free entry into the United
States. For information on
how to apply for duty-free entry, contact the one of the brokers
below.
Make a note on your Requisition for foreign
vendors to use the following broker for Customs clearance.
| Scan Global Logistics, Inc. - Chicago
1254 Mark Street
Bensenville, IL 60106
Phone: 630/616-8800
Fax: 630/616-8801
Website: www.scanlogistics.com |
Contacts:
Import
Account Manager –Jennifer Hamm jeha@scanlogistics.com
Export Account Manager –Nicole Roberts niro@scanlogistics.com
|
|
●
Contact Sherri Dusenbery at 5-1207 for further information
or questions. |
By law, University employees are prohibited
from receiving any gift, token, membership, gratuity or service
from a vendor as related to any purchase made on behalf of
The University of Iowa. Immediately notify your supervisor(s), The University’s
Internal Auditor, or the Office of the State Auditor if you
become aware of any state employee or vendor involved in the
purchase or bid process accepting or offering a kickback,
gift, token, membership, gratuity or service of any kind that
might compromise the buyer-vendor relationship. (See Appendix D, for further reference information.)
In 1992 the legislature passed the Iowa Public
Officials Act which amended the gift law in Iowa Code chapter
68B. The gift law was further amended in 1993. A
gift is anything of value given to you for which you did not
give something of equal or greater value in return.
The law prohibits public officials, public employees,
candidates for public office, and members of their immediate
families from soliciting or accepting gifts from a “restricted
donor.” An example
of accepted items would be available free of charge
to members of the general public and non-monetary items worth
three dollars or less, such as pencils or bumper stickers.
A transaction is prohibited if all three
of the following exist:
(1)
the recipient (donee) is a public employee, a public official
or one’s immediate family member (defined as spouse or dependent
child);
(2)
the recipient receives a “gift” as defined by the law; and,
(3)
the donor (person giving the gift) is a “restricted donor.”
The gift law applies only when the donor is within one of four categories
defined in the statute. The law uses the term "restricted
donor" to mean a giver who is within these four categories.
·
Anyone who contracts with your agency or is
seeking to contract with it. This includes persons involved
in sales, leases, purchases, or other contracts. The term
"agency" includes all public bodies covered by the
statute, including a city, school district, or county. (Certain
agricultural commodity production boards are excluded.)
·
If you are an official or employee of one of
the 16 listed "state regulatory agencies,” a "restricted
donor" is also any person who is the subject of, or a
party to, a matter pending before that part of the regulatory
agency (or "subunit") in which you have discretionary
authority as an officer or employee. The agent of persons
with matters pending before your subunit is also a "restricted
donor." Thus, for example, a member of the Board of Medical
Examiners could not accept a gift from a doctor who is the
subject of a pending investigation before that board nor from
the doctor's lawyer. However, this would not make the doctor
a "restricted donor" as to employees or officials
of unrelated units in the Department of Health.
·
Anyone who will be directly and substantially
affected financially by performance or nonperformance of your
official duties in a way that is greater than the effect on
the general public or a substantial class to which the person
belongs (such as all members of a profession or residents
of a region). An agent of such a person is also a "restricted
donor."
·
Anyone who is a "lobbyist," or a client
of a lobbyist, regarding matters within your agency's jurisdiction. A lobbyist is described as any individual who,
for the purpose of encouraging the passage, defeat, approval,
veto, or modification of legislation, a rule, or an executive
order, by members of the general assembly, a state agency,
or any statewide elected official, by acting directly, does
any one or more of the following:
o
Receives compensation
o
Is a designated representative
of an organization
o
Represents the position
of a federal, state, or local agency in which the person serves
or is employed as the designated representative
o
Makes expenditures
of more than $1,000.00 in a calendar year to communicate in
person (other than to compensate another for lobbying services
or to communicate with a person's own legislators).
See University Operations Manual Division
II, Chapter 17: www.uiowa.edu/~our/opmanual/ii/17.htm.
The personal use of the purchasing or payment
process is prohibited by law and can result in discipline,
up to and including dismissal from employment.
(from Chapter VII - Business Procedures)
at www2.state.ia.us/regents/Policies/Chapter~7/chapter7.06.htm
Purchasing
The Regents affirm that the best interests
of the state of Iowa and the Regent institutions
are served through implementation of a fully competitive purchasing
system.
1.
The Board of Regents is authorized by statute
to contract for goods, services, and capital improvements
(Iowa Code §8A.122, §8A.302, and §262). Capital improvements
are addressed in Chapter 9 of the Board of Regents Policy
Manual.
2.
The Board delegates authority to approve agreements and contracts
for all goods and services purchased by the institution, except
for capital improvements, fire protection, legal services,
and engineers. (681
IAC 8.2(3))
3.
Remedies for breach of contract shall be in accordance with
Iowa Code § 554.
1.
The Board of Regents shall establish policies and maintain
oversight of all procurement functions. The Board Office and
institutions shall meet regularly to insure coordination of
purchasing policies and procedures.
2.
Goods and services are purchased by the chief business officer
of each institution, acting through the institutional purchasing
director, on the basis of competitive procedures. Such purchases
need not be reported to or approved by the Board of Regents,
provided that the chief business officer has determined that
there is no unusual circumstance which requires the special
attention of the Board, and provided the purchase does not
involve a lease which must be approved or reported.
Policies related to capital projects, including bidding, bid
security, selection of architects/engineers for Regent institutions
are in Chapter 9 of this Policy Manual.
3.
Each Regent institution, through an institutional purchasing
department, shall be responsible for purchasing goods and
services. Institutions may delegate purchasing responsibility
to departments. Low
dollar procurement authority may also be delegated to institutional
units through the use of credit cards or other appropriate
procurement instruments, consistent with prudent, contemporary
business and audit practices.
4.
Each Regent institution shall establish a purchasing procedure
for goods and services.
5.
Each Regent institution shall maintain a purchasing policy
and procedure document.
6.
Each Regent institution shall be custodian of its purchasing
records, including but not limited to purchase requisitions,
requests for quotations, purchase orders, vendor correspondence
and related documents and shall maintain such records in accordance
with applicable law.
7.
Iowa State
University
will process purchases of $5,000 or more for the special schools.
8.
Under the Iowa Code and the Iowa Administrative
Code vendors may only charge a maximum interest of 1% per
month in some situations when a claim remains unpaid after
60 days. This does not apply to claims against the state under
Chapters 25 and 669 or claims paid with federal funds. (Iowa
Code §8A.514 and 681 IAC 8.2(4))
The provisions of Iowa Code § 551, "Unfair
Discrimination," shall not apply.
9.
The provisions of Iowa Code Chapter 551, "Unfair Discrimination,"
shall not apply.
10.
Regent institutions shall adhere to the professional ethics
embodied in the code of the National Association of Educational
Buyers.
11.
Employees, officers, and members of the Board of Regents shall
comply with the Iowa Code § 68B, "Conflicts of Interest
of Public Officers and Employees" and Regents Conflict
of Interest Policy (681 IAC 8.9).
a)
Board of Regent institutions shall take appropriate
steps to notify employees, vendors, and suppliers of Regent
policy on conflict of interest.
b)
This policy shall be incorporated in the operations manual
of Regent institutions, along with any other provisions relating
to the subject of an explanatory or more specific or restrictive
character.
12.
Definitions:
a)
Moveable equipment is defined as any moveable property valued
at a unit acquisition cost of at least $5,000 which is identifiable,
is not a replacement part, and has a useful life of one year
or more.
Fixed equipment
is defined as permanently affixed/installed furniture, fixtures
and equipment. Examples include but are not limited to: elevators,
kitchen cabinets, laboratory casework, building directories,
library shelving, drinking fountains, signage, plumbing fixtures,
building mechanical systems, fixed electronic equipment, and
fixed theater or classroom seating, as well as other fixtures
and equipment installed with the intent of permanent use in
that location. Fixed
equipment, which is part of a capital project, is exempt from
the requirements of the following subsections
b)
Equipment purchases are subject to the following review procedures
prior to the issuance of a purchase order or any other purchase
commitment by the institution.
(1)
Equipment with a unit cost of less than $250,000 or a total
purchase cost less than $500,000, will be purchased by the
chief business officer of each institution, acting through
the institutional purchasing agent, as outlined in Section B.2 of this Policy Manual.
(2)
Equipment with a unit cost greater than $250,000 or a total
purchase cost of $500,000 to $1,000,000 will be submitted
to the Board Office for approval. The Executive Director will notify the Board
of such actions. At
the discretion of the Executive Director, the equipment purchase
may be submitted to the Board for approval.
(3)
Equipment costing more than $1,000,000 will be submitted to
the Board for approval.
c)
The Executive Director may approve emergency purchases which
exceed $1,000,000 to be followed by Board ratification.
Emergency purchases are defined in 681 IAC 8.9(4).
d)
Any request submitted to the Board Office for approval pursuant
to sections 12(b) and 12(c) of this policy will include the
following information regarding the equipment to be purchased.
(1)
Description of the equipment.
(2)
Justification of the need for the equipment.
(3)
Any known alternatives to the equipment proposed.
(4)
Estimated cost and source of funding.
1.
Each institutional purchasing department shall maintain a
master list of prospective suppliers.
This list is a resource to be used at the discretion
of the Purchasing director.
2.
Any person, agency, or firm wishing to supply goods or services
in a category may request, in writing, that its name be added
to the institutional master list.
The name is added to the institutional master list
if, in the professional judgment of the purchasing director,
the addition would aid in fostering a competitive situation. The purchasing director may require the requesting
party to furnish information on qualifications to supply the
item(s) indicated and financial responsibility prior to determining
whether to add a vendor’s name to the institution’s master
list.
3.
Third party bid subscription services, who themselves do not
supply goods or services utilized by Regent institutions,
are not approved vendors. The institutions need not add these bid services
to their institutional master list of suppliers, nor provide
electronic access for downloading copies of bids, if access
is reserved for approved vendors.
Third party bid subscription services and non-approved
vendors may request copies of bids under public records statutes.
Institutions providing copies may charge a reasonable
fee to cover the costs including, but not limited to, copying,
labor, and postage. The
opportunity to receive copies may be suspended should reimbursement
of such costs not be made promptly.
(Iowa Code §§ 22.3 – 22.4)
4.
Non-responsive and Non-responsible Vendors. Once a supplier is added to the master list,
the name shall not be removed from the list by an institution
except for good and sufficient reasons.
Such reasons shall include, but not be limited to,
the following:
a)
Delivery of goods and services that do not comply with specifications;
b)
Failure to deliver within the specified time;
c)
Refusal to deliver after submitting a quotation, bid, or proposal
and after receiving an order;
d)
Withdrawal of quotations, bids, or proposals prior to the
placing of an order;
e)
Failure to have qualified service available in the area to
set up, check out, or instruct personnel in use of goods or
failure to have parts to service goods, if a part of the agreement
or warranty, written or implied;
f)
Bankruptcy or other evidence of insolvency, or any other fact
which might cause substantial doubt about the supplier's ability
to continue as a responsible source and fulfill obligations;
g)
Failure to comply with the Regent Equal Employment Opportunity
Policy;
h)
Illegal purchasing practices;
i)
Failure to respond to requests for prices;
j)
No longer in business;
k)
No bids or orders issued in the last consecutive two-year
period;
l)
Failure to timely cure one or more noncompliant deliveries;
m)
Removal from an institutional master list of another Regent
institution.
5.
Removal for cause is not to exceed three years, except upon
specific authorization of the Board.
Reinstatement requires application to the institution.
Vendor appeal procedures are currently under revision
and will be updated later
1.
Vendors
a)
A vendor who wishes to appeal removal from a Regent institution's
qualified vendor list shall, initially, attempt to resolve
the issue at the institutional level.
b)
If the vendor is dissatisfied with the institution's response,
the vendor may notify the executive director in writing of
the vendor's dissatisfaction and request Board Office assistance.
c)
Complainants are required to exhaust administrative remedies
at the institutional level before making a written request
for review to the executive director.
2.
Board Office
a)
The executive director or designee may then take steps to
assist the vendor and the institution in resolving the issue(s).
b)
If the issue(s) remain(s) unresolved, the executive director,
at the request of the vendor, may docket the matter for review
by the Board. Any complaints
from vendors received by Board members shall be referred to
the Board of Regents Office for investigation.
Results of the investigation shall be sent to each
Board member. The vendor's written request and supporting
information shall also be sent to the institution involved
and that institution shall file a written response with the
Board Office supporting the institution's position.
c)
If the complaint is docketed, the executive director will
prepare a recommendation for the Board to consider. If the complaint is docketed, the results of
the investigation shall constitute the basis of the executive
director’s recommendation.
If the complaint is not docketed, the results of the
investigation shall be sent to each Board member.
d)
A copy of the recommendation with notice of the date, time,
and place of the meeting for which the matter has been docketed
shall be sent to the vendor and the institution within a reasonable
time. The recommendation and the Board action shall
constitute a final report.
3.
Institutional
Copies
of any written complaints received by the institution shall
also be sent to the Board of Regents Office if there are inter-institutional
implications.
The
following policies establish the competitive conditions under
which Regent institutions shall operate.
1.
Competitive Procedures
Each purchasing director or chief business
officer - shall be responsible for establishing procedures
to ensure that goods and services are competitively selected.
Written bids are required for purchases, which are
expected to exceed $10,000. Competitive selection may incorporate multiple
criteria of award, with awards made based on bidder whose
proposal provides the best value as determined by the institution/purchasing
department.
Negotiated,
noncompetitive, and sole source purchases are recognized by
the Regents as proper procurement procedures in appropriate
circumstances where the public will be served.
With appropriate institutional review, both competitive
negotiation and noncompetitive negotiation processes may replace
written competitive bidding when the purchase is anticipated
to exceed $10,000. Regent
institutions shall justify the use of negotiated, non-competitive,
and sole source purchasing procedures upon request.
2.
Bidding
Two types of bid solicitations, either formal or informal shall
be used. The determination
of which type of bid to be used shall be at the discretion
of the institutional purchasing department, except as otherwise
provided by law or administrative rule.
a)
Formal Sealed Bid.
Public notice is required for formal sealed bidding with a bid
opening at a specified place on a scheduled day and at a scheduled
time. Sealed bids will be publicly opened and read at
the date and time specified in the written notice, unless
otherwise indicated in the bid documents.
b)
Informal Quotation.
This is a request for prices or quotations that is mailed, faxed,
communicated by telephone, emailed, or otherwise delivered
electronically by the institutional purchasing department
with due date and time noted. There is no public reading of bids or quotations.
Institutional purchasing departments shall provide an opportunity
for qualified prospective vendors to prepare timely bids or
quotations.
c)
Bids or quotations
are tabulated in the purchasing department.
A buyer either makes the award decision or consults with the
requesting department for assistance in the decision, particularly
when alternate products are offered by bidders.
The names of the bidders and the amounts bid shall be supplied
to any person upon request after the opening of the bids and
as soon as the evaluation of the bids is completed and the
award is made. Information will not be released in situations
in which the release would provide a competitive advantage
to any of the bidders.
Nothing contained in these conditions shall be construed to mean
that the lowest priced goods or inferior or substandard goods
must be purchased. The
Regent institutions are to purchase goods at the lowest cost
consistent with the quality and service required.
Should a buyer recommend an award to other than the low compliant
and responsible bidder, a review of the recommendation shall
be conducted by the institutional purchasing director or designee. It shall be the responsibility of the chief
business officer or his/her designee to monitor the low bid
rejections.
d)
Withdrawal of Bids.
Bids may be withdrawn prior to the time set
for receipt of bids. Bids
shall not be withdrawn after that time, except as noted herein,
without penalty.
Only in the event of an obvious and documented
error where it would be a manifest injustice to require the
vendor to perform, can a vendor withdraw a bid after the time
set for receipt of bids. Such withdrawal of bids can
be done only upon the recommendation of the institution under
procedures approved by the executive director.
e)
Procedure for Withdrawal
of Bids
(1)
A request to withdraw a bid shall be provided in writing to
the institutional purchasing director or designee of the institution
taking such bids.
(2)
A vendor is required to provide written documentation of any
alleged error.
(3)
Each request for withdrawal will be considered on its own
merit.
(4)
An investigation into the request of the vendor to withdraw
a bid shall be carried out by the institutional purchasing
director or designee.
(5)
A request for withdrawal of bids shall be made part of the
vendor’s record.
(6)
Any future request for bid withdrawal by the same vendor may
be cause for removal from all Regent institutions' bid lists
as an indication of a non-responsible vendor.
f)
Bid Security.
Regent institutions
have discretion to use bid security as an incentive to vendors
to enter into contractual requirements.
g)
Common Conditions for
Use of Bid Security
Bid security shall be used in cases where
the purchasing director determines there is a need to protect
the interest of the institution.
The need for bid security may, in part, be determined
by the size of the proposed purchase, the item or items being
bid, the competitive conditions surrounding the purchase,
and the history of such purchases, including general reliability
of vendors being requested to bid a particular purchase.
Occasionally, it may be appropriate to require
bid security from prospective buyers.
Bid security, when utilized for purchasing, shall follow
bid security requirements as set forth in the 681 IAC 8.6(2
& 4).
3.
Sole Source Purchases
The Regents recognize
that in some instances scientific, mechanical, and technical
equipment or supplies or services may be required which are
obtainable only from a sole source.
4.
Emergency Purchases
The Regents recognize
that in some emergency situations the taking of competitive
bids or quotations is not feasible or possible. In such
situations the requirements to do so may be waived.
Emergency purchases are defined in 681 IAC 8.9(4).
5.
Iowa Prison Industries
Regent institutions
are encouraged to purchase products produced by Iowa Prison
Industries unless the exceptions in the Iowa Code apply. Iowa
Code § 904.808. Nothing
herein shall require Regent institutions to procure items
from Iowa Prison Industries when such items are purchased
from Targeted Small Businesses.
6.
Iowa Products and Labor
All state agencies shall use those products
produced within the state of Iowa, when they are of a quality
reasonably suited to the purpose intended, and can be secured
without additional cost over foreign products or products
of other states. (Iowa
Code §§ 73.1).
7.
Targeted Small Business
It is the policy of the Board of Regents,
State of Iowa to provide contract
opportunities to targeted small businesses.
All laws and rules pertaining to solicitations, bid
evaluations, contract awards, and other procurement matters
apply to targeted small businesses.
(681 IAC 7.7, Regent Policy Manual § 5.05).
8.
Professional Service
Contracts.
“Professional Service
Agreements are contracts for unique, technical and/or infrequent
functions performed by an independent contractor qualified
by education, experience and/or technical ability to provide
services. In most cases
these services are of a specific project nature, and are not
a continuing, on-going responsibility of the institution. The services rendered are predominately intellectual
in character even though the contractor may not be required
to be licensed. Professional
service agreements may be with partnerships, firms or corporations
as well as with individuals.
a)
Selection of a Provider.
Professional
service agreements for greater than $25,000 must be selected
through a competitive Request for Proposal (RFP) process unless
the service is a sole source purchase that is appropriately
documented. The $25,000 threshold is not based on a one-time
cost, but rather on a cumulative cost for on-going services
under the terms of the project engagement.
Professional service agreements, which are less than
$25,000 over the course of service, may be entered into without
using the required competitive bidding process.
Total payment to a professional services provider for
services provided to any one university department may not
exceed $25,000 in a fiscal year, unless subject to competitive
bidding or review and approval by the institutional purchasing
department. Selection
of a professional service provider shall be based on a variety
of criteria including, but not limited to, demonstrated competence,
knowledge, references and unique qualifications to perform
the services, in addition to offering a fair and reasonable
price that is consistent with current market conditions. Additional criteria may be used as appropriate
to the circumstances.
b)
Provider Accountability.
Work
requirements should clearly define all performance objectives,
work expectations and project milestones, and hold the contractor
accountable for successful completion of the resultant agreement. Requirements may include, but not be limited
to, reports, training sessions, assessments, evaluations or
other tangible services.
c)
Provisions of Professional Service Agreements.
The
following terms and conditions must be addressed:
(1)
Performance Requirements.
Performance
requirements should be precise and written in such a way that
it can easily be determined if and when the contractor has
successfully fulfilled his/her obligations under the Agreement.
Consequences for noncompliance such as non-payment
and/or termination of the contract must also be defined.
Scheduled due dates that specify milestone targets
must be clearly identified and may include, but not be limited
to, regular meetings scheduled to evaluate progress, identification
of problem areas to determine actions to be taken to resolve
any concerns, dates for formal written reports, required oral
progress reports, and contract monitoring requirements.
(2)
Period of Performance.
The
resultant agreement must specify a start date and a completion
date. While there may be exceptions, in most circumstances
an end date to the agreement will be required. If an end date cannot be determined, a maximum
time limit or maximum number of hours must be stated. Agreements with organizations are typically
written for a specific term of successive years. In some instances, these agreements are annually
renewable. Other provisions
of an agreement may include a renewal clause beyond the original
term of the agreement. Extended
term agreements for individuals are discouraged.
(3)
Compensation and Payment.
Compensation
and payment terms include elements relating to cost and payment,
such as maximum cost, (i.e. not to exceed cost), cost per
deliverable, hourly rates for individuals providing services,
number of hours required, allowable expenses and total authorized
for expenses, payment and invoicing procedures. Compensation and payment terms should also include
a statement as to whether the Regent institution will pay
expenses incurred by the contractor and if so, which ones. Such expenses may include, but not be limited
to, airfare (economy or coach class), lodging and subsistence
necessary during periods of required travel; expenses incurred
during travel for telephone, copying and postage, and private
vehicle mileage. If other types of expenses are allowed, they
must be clearly defined.
(4)
Performance Monitoring.
The
institution shall monitor the compliance with the terms and
conditions of the agreement and applicable laws and regulations.
(5)
Provision of Liability.
The
provider may be required to show proof of insurance coverage
and workers compensation in compliance with statutory requirements,
in the form specified by the institution.
1.
Consistent with the Board's purchasing policies and procedures,
institutions, when establishing standards and specifications
and size of orders for goods and services, shall give due consideration
to the ability of Iowa businesses to compete in bidding for
those goods or services. The institutions shall continue to observe the
goals of quality and economy in purchasing while meeting the
needs of the institutions.
2.
Specifications shall be prepared to assure that they do not
restrict or preclude competition.
3.
All requests for bids and proposals for goods and services
and other needed articles to be purchased at public expense
shall, whenever possible and practical, be made in general
terms addressing functional specifications rather than brand,
trade name, or other individual mark. Brand names and numbers, when used, are for reference
purposes and indicate the character or quality desired. If brand names are used, the specifications shall
contain an “or equal” or "or acceptable alternate"
clause. The institutional purchasing director shall
determine what is an acceptable alternate.
4.
Recognition is also given to standardization and compatibility
requirements which should be maintained for purposes of economies
in replacement and maintenance.
5.
Life cycle cost and energy efficiency shall be included in
the criteria used by institutions under the Board of Regents
in developing standards and specifications for purchasing
energy consuming products. Life cycle cost means the expected total cost
of ownership during the life of a product.
(Iowa
Code §8A.311) Institutional
procedures may identify the parameters for which energy consuming
products are subject to this section.
“Preference shall be given
to purchasing American-made products and purchases from American-based
businesses if the life cycle costs are comparable to those
products of foreign businesses which most adequately fulfill
the institution's need.”
Iowa Code addresses purchasing
paper and other recycled products.
(Iowa
Code §262.9(4-6)).
6.
Standard terms and conditions, contained on requests for bids,
quotations, and purchase orders, are intended to ensure that
all the basic considerations relevant to the agreement are
covered. For purposes of internal consistency all Regent
institutions shall standardize general terms and conditions
on purchase orders and bid solicitations.
Such terms and conditions shall include, but not be
limited to, exclusive agreements between parties, acceptance
agreements between parties, acceptance conditions, guarantees
and warranties, rights of inspection, termination, and listing
of specific federal regulations.
7.
Regent institutions
are encouraged to use specifications for flexible fuel vehicles
when purchasing light-duty vehicles and when equivalent flexible
fuel models are available.
Flexible fuels are defined in Iowa Code §8A.362(5)
and include E85. The provisions outlined in this policy do
not pertain to those used for the purchase of vehicles used
for law enforcement, off-road maintenance work, or to pull
loaded trailers. Flexible fuel vehicles operated by Regent institutions
are encouraged to operate on E85 fuel when an E85 fueling
station is available. Regent
institutions are also encouraged to use biodiesel blends in
diesel vehicles when the blends are available.
1.
When practical and feasible, Regent institutions should test
and evaluate all goods.
2.
Product association testing reports, independent research
laboratories or governmental testing reports may be utilized
in evaluation criteria.
3.
An inspection of goods shall be performed at time of receipt
and/or use.
1.
Regent institutions are encouraged to exchange price information,
vendor lists, bidder histories, and standard specifications
and to implement inter-institutional purchasing arrangements
wherever practical and feasible so that maximum value can
be obtained.
2.
Regent institutions are encouraged to participate in interagency
cooperative purchasing agreements. It is the Regents’
intent that such cooperative purchasing continue to provide
the lowest competitive price consistent with quality and service
requirements of Regent institutions.
3.
Regent institutions may purchase from state central purchasing
contracts if it is in the best interest of the institution.
4.
State agencies, by prior agreement, may purchase items through
Regent institutions providing that such purchases shall not
jeopardize educational discounts accruing to Regent institutions.
5.
Regent institutions are encouraged to participate in inter-institutional
cooperatives with other universities, health care organizations,
and similar affinity groups to gain better prices and choices.
An
annual report on purchasing, including purchases from Regent
employees, shall be submitted by each institution to the Board
Office.
III.
ORDERING PRODUCTS and SERVICES VIA PURCHASE ORDER
The Procurement Timeline
The DEPARTMENT…
The Requester…
●
Order request from
faculty or staff
●
Requisition is entered
in PReqs Application by the department and sent through workflow.
●
Orders under $5000
are completed after the last person from the department approves
the requisition. A Purchase Order number will be assigned
to the requisition.
●
Orders $5000 and greater
will be routed to Purchasing in Workflow.
PURCHASING
The Purchasing Agent (Orders $5000 and greater)…
●
Review high-dollar Requisitions online, edit and approve OR
●
Submit for bid for orders greater than $10,000
●
After receiving bid, edit and approve Requisition
●
After Purchasing Agent approves a Requisition, a Purchase
Order number will be assigned
●
Requisition uploaded to PeopleSoft as an open PO
●
Purchase Order is approved in PeopleSoft by the Purchasing
Agent
(Orders over $250,000 approved by Board of Regents first; orders
over $1,000,000 go on Board of Regents Docket and require
60 days advance notice.)
ÄThen
PURCHASING…
●
Prints all Purchase Orders following overnight batch process
●
Faxes or Mails Purchase Order to vendor, except Confirming
Orders
●
Purchase Order report will be available for departments
The VENDOR…
●
Receives Purchase
Order
●
Ships products or
provides service to department
●
Mails invoice to Accounts
Payable
ACCOUNTS PAYABLE…
Receives invoices
●
Verify invoice to
Purchase Order online
●
Enter invoice into
the Purchasing and Payables system
●
Create "Assumed
Receipt <$10,000 Voucher" or "Capital Equipment
and/or >$10,000 Voucher" and email notification to
Requester
The DEPARTMENT…
●
Receives products
or services from vendor
●
Receives Assumed Receipt
Voucher email, notes date received and files (Notifies Accounts
Payable to withhold payment if necessary) OR
●
Receives Capital Equipment
and/or >$10,000 Voucher email and paper copy, approves,
notes date received, completes Asset Management Information.
Returns one copy to Accounts Payable and files department
copy
ACCOUNTS PAYABLE
On scheduled payment date OR when department
approves payment, generates a check and mails payment to the
vendor.
IV.
THE PURCHASE REQUISITION PROCESS
Departments
enter Requisitions for goods and services into the Purchase
Requisitions Application (PReqs) on the FUS Self Service page
at https://hris.uiowa.edu/portal/ under
Purchase Requisitions Production.
The information required on the Requisition form varies
depending upon the type of order, however all required fields
must be completed. The Requisition is validated and submitted
to Workflow for the department approvals. After the departmental
approvers have approved the requisition, the requisition is
then routed to Purchasing via Workflow.
Requisitions less than $5000 are completed, and a Purchase
Order number is assigned, after all of the departmental approvals
are obtained.
Requisitions
$5000 and greater are routed to the Purchasing Agent after
the final departmental approval.
The Purchasing Agent reviews and edits the requisition,
and approves it in Workflow . The purchase order number is
assigned and the PReq is then uploaded to PeopleSoft as an
open purchase order. Orders are then approved in PeopleSoft,
printed, and dispatched to vendors. (Note: Under normal circumstances
Confirming Purchase Orders are not sent to vendors.)
The
printed Purchase Order contains the Requester name and phone
number and the Purchasing Agent name and phone number.
If a question arises, the vendor may contact either
the Purchasing Agent or the Requester.
After
the invoice has been received and processed by Accounts Payable,
a voucher is created. After
approval of the voucher by the department, a check for payment
is issued to the vendor.
To
view step-by-step instructions for completing a requisition
on the Purchase Requisition (PReqs) System see the on-line
tutorial on the Training menu at: www.uiowa.edu/~purchase/purchase
Plan Ahead
Allow
30 days or more for Requisitions for purchases over $10,000,
which will require competitive bidding. For large capital
equipment purchases or projects requiring the purchase of
multiple pieces of equipment, contact Purchasing well in advance
with specifications and lists of potential bidders. Purchases
of $500,000 or greater must be submitted to the Board of Regents
for approval.
Vendor
Prior
to starting a Requisition, plan ahead and do a vendor search
in PReqs. PReq vendor searches will only show Active,
Approved vendors. https://preqs.its.uiowa.edu/preqs/
●
Create New Req.
●
Click the Magnify Glass
●
Search vendor
Searching
for vendors ahead and discovering they are not on the system
will allow plenty of time for the following:
●
Sending out Vendor Application Form
●
E-mailing Purchasing Vendor Team for help.
Enter
Requisitions completely and accurately on the PReqs System
at https://hris.uiowa.edu/portal/ under
Purchase Requisitions Production
●
All fields on the Requisition form are required except for
the Comments section.
●
A 10-digit Requisition number is assigned electronically to
each requisition. Example:
W000000001. Requisition
numbers begin with W.
●
Indicate if the item pricing is quoted. Reference quote number and/or person providing
quote. Put this information
in the line item field or in the Vendor comments field.
●
If pricing is estimated, enter a comment in the Internal Comment
field. Departments
should attempt to get firm pricing before approving orders
under $5000.
●
Orders under $5000 are not routed to Purchasing for approval.
A Purchase Order number is assigned to the Requisition
after the last departmental approval.
●
The Purchase Requisitions system will not allow zero amount
Purchase Orders.
●
Orders $5000 and over are routed to the Purchasing Agent.
After the Purchasing Agent approves the order a Purchase
order number is assigned.
●
The Item Description should include, where applicable, the
vendor product number, catalog number, item and/or model number(s).
This number should be first in the Item Description
field, followed by descriptive text.
●
If no product, catalog or model number is available, provide
a complete description.
●
Be precise when specifying the quantity and the corresponding
unit of measure. Is
the box of 12, 24 or 144?
Make sure the unit price is accurate for the quantity
and unit of measure you have indicated.
●
“Confirming Order Do Not Duplicate” is an important phrase
to understand. This
phrase should be in the Vendor Comments on every Confirming
order. A “Confirming Order” is one that has been previously
placed with the vendor verbally, via fax, or by email irregardless
of whether or not an advance purchase order number was used.
This includes all orders placed on a vendor’s website and
orders already received and/or invoiced.
●
A minimum of two electronic signatures on the Requisition
Form is required at the departmental level.
●
Remember to check the Attachments box on the PReq if attachments
must accompany your order. Send Attachments to Purchasing
via Campus Mail, fax, or email.
●
For orders $5000 and over, address the Attachment to the Purchasing
Agent. Indicate the Purchasing Agent’s name, Requisition ID,
Requester name and Requester phone # on the Attachment.
●
For orders less than $5000, address the Attachment to the
Req/PO Team. Indicate the PO
number, Requester name, Requester phone #, and date on the
Attachment.
UI has negotiated rates with preferred vendors
for both inbound/outbound shipments.
Business and residential rates are included in our
contract.
1.
Preferred Freight
Vendors
●
Packages:
o
Federal Express Packaging/Ground (www.fedex.com)
o
United Parcel Service (www.ups.com)
●
Long Hauls (cross
country)
o
Yellow Freight System (www.myyellow.com)
o
Roadway Express (www.roadway.com)
●
Short Hauls
(in or around state of IA)
o
Dohrn (www.dorhn.com)
a)
Freight Terms in PeopleSoft
(1)
DEST-UI: The University takes ownership of goods once
they are delivered to their destination. The freight charge
is paid by the vendor to the freight company and then added
to the vendor’s invoice to us.
(2)
DEST-VNDR: The University takes ownership of goods once
they are delivered to their destination. The vendor pays the
freight cost. It is not billed back to us on the vendors’
invoice.
(3)
FOBDEST-UI: The University takes ownership of goods once
they are delivered to their destination and pays the freight
cost directly to the freight carrier. The freight is billed
to a U of I freight account.
(4)
FOBSHIP-UI: The University takes ownership of the goods
as soon as they leave the vendor’s shipping point. The University
pays the freight cost directly to the freight carrier. The
freight is billed to a U of I freight account.
(5)
SHIP-UI: The University takes ownership of the goods
as soon as they leave the vendor’s shipping point. The freight
charge is paid by the vendor to the freight company and then
added to the vendor’s invoice to us.
(6)
SHIP-VNDR: The University takes ownership of the goods
as soon as they leave the vendor’s shipping point. The vendor
pays the freight cost. It is not billed back to us on the
vendors’ invoice.
The
default freight terms in PeopleSoft
are DEST-UI. The Purchasing
Agent is responsible for changing the freight terms on
the purchase order, if necessary, based on a vendor’s quotation
or other information related to the order. Departments are
encouraged to provide their carrier account numbers on their
PReqs so that this information can be provided to the vendor
on the PO and we can take advantage of the University’s freight
discounts. See additional
information in the following section.
A
Blanket Order is a Purchase Order from which goods and services
may be purchased over a given period of time rather than in
a single transaction. Contact your Purchasing Agent for more
information about Blanket Orders. Blanket Orders differ from
standard Purchase Orders as follows:
●
are used for more than a single transaction
●
$5000 per year minimum
●
may be used for items under contract
●
are not to be used for the purchase of equipment items
●
do not encumber funds
●
may have limits on dollar amounts set by your department
●
may have other restrictions set by your department
The
Purchasing Department has sole discretion to waive competitive
bidding requirements in certain situations, including but
not limited to:
It
can be demonstrated without question that the requiring department
could not have foreseen the required purchase in sufficient
time for normal purchasing procedures to be used.
Life
will be endangered, property will be destroyed, or considerable
cost will be incurred because of events beyond the control
of the department if the procurement is not completed without
delay.
There
is only one person or firm that can provide the requirement.
No other known person or firm is available with an equivalent
service or supply. Departments must complete a sole source
justification form (see www.uiowa.edu/~eforms) and receive approval
from Purchasing prior to commencing the purchase process.
In
order to justify a sole source purchase, one or more the following
criteria must be substantiated in support of the justification:
a)
Compatibility with existing equipment.
This
justification may be used if the goods or services are being
purchased to directly interface with or attach to equipment
of the same manufacturer, and no other manufacturer's goods
will correctly interface with existing equipment.
This
justification may be used if the goods are being purchased
to supplement existing equipment in a classroom. The goods
must match the existing equipment and is being purchased to
provide uniformity for instructional purposes.
This
justification may be used if the main purpose for acquiring
equipment or supplies is to replicate specific experiments,
using the exact goods that produced the original results.
You may also use this justification if you are collaborating
with another researcher and can show that identical goods
are required to fulfill your part of the research grant or
contract.
Only
one supplier can be identifie | 
