How To Do Business with Procurement and Materials Management How To Do Business with Procurement and Materials Management.

How To Do Business How To Do Business with Procurement and with Procurement and Materials ManagementMaterials Management

We will cover ...We will cover ...

• Introduction - Who We Are• Where to Find Purchasing

Information• Purchasing Lead Times• Delegated Purchasing Tools• Purchasing Ethics

We will Cover...We will Cover...• Explanation of the Competitive Procurement

Process• Sole Source Procurement• Procurement using Federal funds• Minority, Small and Disadvantaged Vendor

Programs• Procurement File Documentation • Receiving and Shipping Procedures • Contract Administration• Disposal of Surplus Property

MISSIONMISSION

In support of the University’s mission of excellence in education, research, outreach and collaborative partnerships with the greater community, the Department of Procurement and Materials Management will:

• Establish and administer contracts effectively.• Procure goods and services for best value.• Delegate procurement authority using the Purchasing

Card program to promote efficiency.• Provide materials management services, including

central receiving, physical distribution, and property control functions that add value for campus customers.

MISSIONMISSION

• Coordinate the State’s self insurance program and provide risk management services.

• Provide campus wide forms management coordination.• Support the State of Maryland Minority Business Enterprise

program and the Federal Small and Disadvantaged Business Programs.

• Participate in campus sponsored community outreach.• Ensure University business is conducted in a fair and open

environment, in full compliance with applicable laws and regulations.

In support of the University’s mission of excellence in education, research, outreach and collaborative partnerships with the greater community, the Department of Procurement and Materials Management will:

Procurement and Procurement and Materials ManagementMaterials Management

Blair BlankinshipDirector of Procurement and Materials

Management X 5714

Nancy WrightContract SpecialistX 5715

Nancy WrightContract SpecialistX 5715

Toni WallingtonAssistant DirectorX 5130

Toni WallingtonAssistant DirectorX 5130

Diana “Dee” McGhinP-Card Program ManagerX 5717

Diana “Dee” McGhinP-Card Program ManagerX 5717

Lisa

Edwards Property Control SpecialistX 5242

Lisa

Edwards Property Control SpecialistX 5242

Wally

Humphrey Receiving SpecialistX 5381

Wally

Humphrey Receiving SpecialistX 5381

Procurement Procurement Administrative Lead Administrative Lead

TimeTime• Purchases using the UB

Purchasing Card• Transaction under

$5,000 handled in Procurement

• Greater than $5,000 Less than $100,000

• Greater than $100,000

• Same Day

• 3 days

• 10 to14 days

• Milestone Plan

Code of EthicsCode of Ethics• Give Vendors Equal Consideration

• Strive to obtain the maximum value for each dollar of expenditure

• Do Not Accept Gifts or Gratuities such as– Tickets to sporting or entertainment

events, golf outings, expensive after hours dinners

Code Of Ethics Code Of Ethics (Continued)(Continued)

• Avoid Appearance of Conflict of Interest – Do not place orders with relatives

or firms with whom you have some ownership or relationship

• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.

Where to Find Where to Find Purchasing Purchasing InformationInformation

Procurement & Materials Management Home Page

• Listed under “Administrative Offices”

• http://www.ubalt.edu/template.cfm?page=412

DELEGATED DELEGATED PROCUREMENTPROCUREMENT

• The Purchasing Card• Cardholder must sign Cardholder

Agreement• Purchases limited to $5,000 or less

per transaction• Certain items are restricted.

Purchasing CardPurchasing Card• Simple to Use, Saves Paperwork

• Place order immediately - no waiting

• No Cost for Card

• Vendors Paid within 3 Days

• Major Cost Avoidance for the University

Purchasing Card Purchasing Card

• Not for Travel or Restaurants

• Cards Must NOT be shared

• Issued in Individual’s Name

Purchasing Card Purchasing Card AbuseAbuse

• Man who abused county credit card must repay $27,000, serve probation

– Ex-supervisor also gets two weekends in jail

– By Andrea F. Siegel

– Sun Staff - Originally published February 22, 2001

– The former Anne Arundel County warehouse supervisor who used a county-issued credit card to buy himself dozens of items that ranged from a "Star Wars" pinball machine to Raisinettes was ordered yesterday to repay the county nearly $27,000, spend two weekends in jail and five years on supervised probation.

– The judge was unsympathetic to Middleton's assertion of financial difficulties…she said. Chiding him for betraying the public's trust, Judge Davis-Loomis asked, "How closely does an employer have to monitor an employee whom they trust?"

– The maximum punishment for a felony theft scheme, to which Middleton pleaded guilty last month, is 15 years in prison and a $1,000 fine. However, he has no criminal record, and his sentence was within state guidelines of probation to six months.

– Copyright © 2001, The Baltimore Sun

How To Get How To Get Purchasing Cards?Purchasing Cards?

• Submit Cardholder Agreement to Procurement

• Cardholders Attend Cardholder Training to get Card (Allow 2 wks)

• Complete form for PeopleSoft®

access

Special ApprovalsSpecial Approvals• First the good news!

– No More BB-4 form– No More RIP form– Board of Public Works (BPW) now

$500,000 for construction and services (no longer $25,000)

• Other State Agencies still saddled with old rules.

Special ApprovalsSpecial Approvals

• Alcoholic Beverages – purchase of such beverages with

University-controlled funds is not permitted except when purchased for resale or student fees.

• Certain Printed Materials– business cards, letterhead – Get approval from University

Relations

ApprovalsApprovals

• Purchases Affecting Buildings and Utilities. – Heavy items, very large items, utilities

hook‑up, modification to a structure, or pose hazardous or safety concerns, must be reviewed and approved.

• Legal Representation – Hiring of Attorneys must be approved by

Maryland AG’s Office - coordinated with Procurement before you contact the lawyer or law firm.

Special ApprovalsSpecial Approvals• Insurance

– University is generally prohibited from purchasing insurance.

– Need a certificate of insurance? Contact Blair Blankinship, 410-837-5714

• Vendor Agreements, Licenses, Waivers, Contracts and Contract Modifications. – All such documents require Procurement’s review for

objectionable terms. – Other University personnel are not authorized to sign

such documents and may be personally liable for the obligations in the agreement.

Special ApprovalsSpecial Approvals

• Purchase of Food– Only when UB benefits. Not for parties or regular

staff meetings. See Food Policy • OTS to Approve Computer Purchases

– To ensure new equipment works in our network• Purchases Using Sponsored Programs

Funds– equipment or services over $5,000 must first be

approved by the Director of Sponsored Research. • Motor Vehicles

– Purchase or leasing of motor vehicles requires prior approval by the Fleet Administrator.

Special ApprovalsSpecial Approvals• Real Property

– Purchase, leases and rentals of land and structures require special processing and approval

• Radioactive and Hazardous Materials

• Live Vertebrate Animals– Animals with backbones must first have

their Animal Care Protocol approved by campus Animal Care and Use Committee.

Consulting Consulting AgreementsAgreements

• Consulting services are, in principle, no different from any other contract for services.

• Contracts over $5,000 must be coordinated with Procurement.

• Cannot treat consultants as employees.

• To avoid conflict with IRS rules consult with Procurement before giving the consultant a notice to proceed.

Furniture PurchasesFurniture Purchases

• Maryland Correctional Enterprises (formerly State Use Industries) should be evaluated for all furniture purchases.

• If Maryland Correctional Enterprises (MCE) can satisfy your requirements we must use MCE.

MCE FurnitureMCE Furniture

• Five exceptions are recognized by law for not purchasing from MCE:– MCE cannot provide the items in a reasonable time– MCE cannot meet reasonable specification.– The cost of purchasing from MCE exceeds the

budgetary allowance.– The procurement is an emergency procurement as

defined by law - necessary to avoid or to mitigate serious damage to public health, safety and welfare.

– The item is not available from MCE.

• You must document the reason!

Special ApprovalsSpecial Approvals• Contracts for construction or

services over $500,000 require prior approval of the MD Board of Public Works.– Who? The Governor, Comptroller

and Treasurer.• Contracts over $5 Million require

prior approval of the USM Board of Regents.

Exemptions from Exemptions from Standard ProceduresStandard Procedures

• Several categories of items are excluded from the USM Procurement Policies and Procedures– Real Property– Disposal of Surplus Property– Collaborative Undertakings– Intergovernmental contracts– Purchases for resale– Cultural, entertainment and

intercollegiate athletics

ExclusionsExclusions• Protection and administration of intellectual

property rights• Housing, food and related supply and

service contract for conference facilities• Contracts for programs and operations

located or implemented overseas or out-of-state

• Procurement in conflict with a governing federal law or the terms of a gift

• purchase, use or development of curricular materials

Procurement ProcessProcurement Process

RequirementP-Card or Requisition

If under $5,000 and not restricted, place order with

P-Card

If over $5,000 or restricted create

PeopleSoft Requisition

Amount Approval by Department

Budget CheckTo Procurementfor Processing

ProcurementProcurement

Review Req.•Approvals

•Who, what, •where, when,

•why, how

Select Appropriate Procurement Process

RFQ, RFP, Sole SourceState Use

etc...

Issue Solicitation

TabulateResponses

Review Result with Department

Award and Issue Purchase Order

Procurement to Procurement to PaymentPayment

RequisitionSolicitationRFQ, RFP, IFB

etc...

Purchase Orderor Contract

Vendor Ships,Sends Invoice

ReceivingVoucher from

A/P to Annapolis

Payment fromAnnapolis to

Vendor

Pre-Encumbrance Encumbrance

Expense

Simplified Acquisition Simplified Acquisition and and

Formal ProcurementFormal Procurement

Classification by SizeClassification by Size

• $5,000 and under Micro Procurement– Delegated to Campus

• $5,001 - $100,000 - Simplified Acquisition – Handled by Procurement and Supply

• Over $100,001 - Formal Procurement

Simplified AcquisitionSimplified Acquisition• $5,001 to $100,000• Handled by Procurement and Supply

except Master Contract Releases– Issue purchase order with 14 days

• Simplified refers to the more streamlined process Procurement Specialists in Procurement and Supply use to execute these transactions

Requisition for Requisition for PurchasePurchase

• Transaction is generally initiated by creating a PeopleSoft Requisition.

Requisition Must HaveRequisition Must Have

• Must be approved and budget checked in PeopleSoft

• Complete information– who, what, where, when, why

• Sufficient time for process– Give a realistic date for delivery - not

ASAP

Priority of Procurement Priority of Procurement Sources Sources

• Share Equipment or Buy Used

• UB In-House Services

• Maryland Correctional Enterprises (formerly State Use Industries)

• Blind Industries & Services of MD

• Maryland Sheltered Workshops

• Master Contracts

• Small & Minority Vendors

Request For QuotationRequest For Quotation

• Typically the Procurement Specialist will send a Request For Quotation (RFQ) to several suppliers.

• If your requirement is a Sole Source, attach the Sole Source Justification

Formal ProcurementFormal Procurement

• Greater than $100,001• Handled by Procurement and Supply• Customer will assist in the

development of a milestone plan• Requires more teamwork between

Procurement and customer• Milestone Plan

– Documentation of action items, person responsible and due date

MBE Subcontract GoalMBE Subcontract Goal

• Procurement and Supply will establish a Minority Business Enterprise subcontract goal for each procurement over $100,000.

• Goal is determined for each procurement based on the availability of MBE contractors in that market and the nature of the requirement.

Small Business Small Business ReserveReserve

• 10% of dollars to be spent with small businesses

• Small Business Reserve Procurement – reserved for competition among small businesses

• Businesses must be certified as being small by DGS see https://www.smallbusinessreserve.maryland.gov/

The SolicitationThe Solicitation

• Request For Quotations– Lowest Price that meets

requirements

• Request For Proposals (RFP)– Best Value

Publication of the Publication of the SolicitationSolicitation

RFQ or RFP will be advertised on:• e-Maryland M@rketplace• UB web page• Others as necessary

– Length of time before due date is now flexible

Pre-solicitation Pre-solicitation conferenceconference

• Prospective contractors may ask questions about the work to be preformed or about the procurement process.

• May also include a visit to the site where the work will be performed.

Evaluation of OffersEvaluation of Offers

• Based only on criteria stated in the solicitation– RFQ - low price the meets the

specifications– RFP - best value with separate

evaluation of technical proposal and price

Sole Source Sole Source ProcurementProcurement

• Procurement without competition is authorized under limited conditions and subject to written justification documenting the conditions that preclude the use of a competitive process.

• Customer makes request and justification.

Sole Source Sole Source DeterminationDetermination

• Procurement reviews justification.• Performs independent research.• Writes Sole Source Determination• Approved by Director of

Procurement

Procurements Funded by Procurements Funded by

Federal FundsFederal Funds

Purchasing Rules Apply Purchasing Rules Apply Regardless of Funding Regardless of Funding

SourceSource• University Procurement Rules Apply to

Grants and Contracts• Has responsibility for obligating funds

for procurements and signing contracts

• Responsibilities include– Seeking Maximum Practical Competition– Making Formal Determinations – Issuing Purchase Orders & Contracts– Establishing Master Contracts

Which Firms are Which Firms are Small, Women-Owned, Small, Women-Owned,

Etc?Etc?

• www.pro-net.sba.gov– Identify a specific firm– List small firms for a specific SIC

code

• www.sba.gov/hubzone– See handout– Identify by County

Report ofReport ofSmall Business Small Business

SpendingSpending• SF 294 Form

– Individual contract over $500,000

• SF 295 Form – Summary of all contracts for each

sponsor• Reports generated twice each

year by Procurement with assistance from OTS

Minority, Small and Disadvantaged

Business Enterprise Program

Minority Business Minority Business EnterpriseEnterprise

• Minority Business Enterprise (MBE)

• State socioeconomic program to support historically underutilized businesses.

• House Bill 306 - Maryland Law sets goals

Certification for MBE Certification for MBE contractorscontractors

• To be counted a firm must be certified by MD Dept. of Transportation

• Approx. 4000 firms certified• Database available at

– http://www.mdot.state.md.us/cgi-bin/mbedir/mbedirectory

– link from Procurement’s web site

Minority Business Minority Business Participation GoalParticipation Goal

• FY 06 goal is 25% of dollars spend to be spent with MBE contractors or subcontractors

• 10% sub-goal for women owned businesses and 7% for African American owned businesses

• Included - not additional

Small Business Small Business ReserveReserve

• The University of Baltimore fully supports the State’s Small Business Reserve Program and is committed to the growth and success of small businesses.

• State mandate of 10% of expenditure contracted to Small Businesses.

• The University seeks maximize participation of small and disadvantaged businesses in compliance with Public Law 95-507, which requires outreach to small and disadvantaged businesses and development of plans for contracting or subcontracting with small and disadvantaged businesses when the University spends federal grant or contract funds.

Review of Each Review of Each ProcurementProcurement

• Procurement will review each acquisition to determine if MBEs are available for solicitation.

• Each Procurement over $100,000 will have an MBE subcontracting goal.

• Certain procurements will be reserved for competition between small businesses only.

Documentation of Documentation of Procurement FilesProcurement Files

DocumentationDocumentation

• The procurement process is complex and detail oriented. Good business judgement as well as policy and procedure dictate that complete and accurate records must be created and maintained.

DocumentationDocumentation• Each file should be well documented

– understand the need for and nature of the procurement

– know who requested, who funded and who issued/authorized the contract

– understand the rights and responsibilities of all parties

– understand how contractor was selected– understand the price of the contract and

price analysis performed to determine that the price is fair and reasonable

– understand the rationale that supports the finding that the contractor is “Responsible”

– understand all important contract dates

Documentation of P-Documentation of P-Card TransactionsCard Transactions

• Completed Purchasing Card Transaction Log clearly describing the goods or services, detailed receipts, and a reconciled Visa statement for each billing period. – The Transaction Log must be signed

by the cardholder and assigned reviewer.

Receiving and ShippingReceiving and Shipping

Goods Received by Goods Received by the Requestor the Requestor

• Review Delivery/Shipping Documents• Inspect Shipment• If count is incorrect or damage is apparent

– Record discrepancy on delivery document (short one piece, etc.)– Have delivery person sign acknowledgement of statement with

signature or initials– Make a copy of the signed document for your records– Sign document and accept delivery– Contact Procurement for Assistance if necessary.

• If UPS or FedEx and shipment is damaged, record discrepancy and refuse shipment

Create PeopleSoft® Create PeopleSoft® ReceiverReceiver

• Create new Receiver to indicate you received the goods or services and it is OK to pay the vendor

• Navigate to the Maintain Receipts panel Purchasing Shipments Maintain Receipts

Shipping Goods from Shipping Goods from CampusCampus

• Get a “Return Authorization” from Contractor to whom you are shipping

• Insure outbound shipments• Keep accurate records

Household MovesHousehold Moves

• Procurement has contracts for household moves.

• Contact Blair Blankinship, 410-837-5714 for assistance.

• Please allow approximately four weeks for the bid process, especially during peak season (June, July and August)

Contract Contract AdministrationAdministration

• Small purchase of supplies– contract administration may be no

more than verifying that the ordered item was received on time, at the right location and the price on the invoice is equivalent to the price on the purchase order, P-Card order, etc

• complex procurement – contract administration is a

responsibility that is shared between Procurement and Supply and the customer

Contract Contract AdministrationAdministration

• Ensure that contractor assigns appropriate personnel – get a resume.

• Ensure hours are worked – get copies of time-cards etc.

• Early and effective communication between all parties (including Procurement)

• Detailed documentation of performance– Good or Bad!

Disposal of Surplus Disposal of Surplus PropertyProperty

• Please inform Lisa Edwards in Property Control whenever tagged property is moved.

• Located in the Academic Center

• View items for sale on our web site

• http://www.purchase.umd.edu/ttrader/

Terrapin TraderTerrapin Trader

We Discussed…We Discussed… • Key Purchasing Principles

• Where to Find Purchasing Information

• Purchasing Processes, Procedures, Lead Times

• Purchasing Restrictions

• Socio-Economic Programs• Contract Administration• Receiving, Shipping and Disposal

QuestionsQuestions• Blair Blankinship, • Director of Procurement and Material

Management • [email protected]

410-837-5714