Yeshiva University Procurement Department FAQs
Yeshiva University
Procurement Department
1300 Morris Park Ave.
Bronx, NY 10461
(718) 430-3001
www.yu.edu/procurement
1 Table of Contents
What is Procurement? Why do we have a Procurement Department? Why does the Procurement process sometimes seem so complicated?------4
Who is allowed to make purchases? Who is not allowed?------4
May I sign any procurement-related documents on behalf of YU? May I sign documents provided by vendors? 5
Who does the buying for me?------5
Who else is involved in University purchases? What role do they play?------6
Who’s going to help me resolve problems with deliveries?------6
What do I need to know about the purchasing process?------7
What details should I provide to Procurement Services in regards to my purchase?------7
What role do I play in the Procurement process? What do I need to do to make the Procurement process work for me? ------8
What does Procurement do for me? What service(s) does the Procurement Department provide?------9
What’s a University-wide contract? Are we required to us it?------9
What is an “approved equal”?------10
What about “sole source” situations?------10
Will Procurement always use my specified vendor?------10
What’s an RFP (Request for Proposals)?------10
What’s a site visit/pre-bid conference?------10
How do I get the items I need?------12
Does YU allow any “Do it Yourself” Purchases?------12
“Emergency” Purchases------13
How does YU engage consultants?------13
What about hiring contractors for building renovations or repairs? What about hiring architects and engineer consultants?------14
What if I need computer equipment (hardware), software, or peripherals?------15
How do I get furniture?------15
How are purchases related to environmental, health and safety issues made?------15
How should I deal with vendors and sales representatives?------15
Procurement says that a formal solicitation is the way we have to go. What does that mean? What must happen? ------16
How is a bidder disqualified?------17
2 What if the merchandise or service I get isn’t right? What if I have a problem with the vendor?------17
How long is it going to take for me to get my merchandise or service?------18
What can I do to get merchandise or services faster?------18
Why can’t I just buy what I need when I need it?------19
Why can’t I just by the things I want and ask Procurement to do the “paperwork” afterwards?------20
Why aren’t there consistent regulations governing ALL purchases?------20
Why are communications with vendors restricted during the procurement process?------21
Do we have to go through a bid solicitation process? There’s only one vendor who can provide me with the goods and services I need. Why can’t I just buy the item that I need?------22
What’s our policy with respect to Minority-Owned Business Enterprises and Women-Owned Business Enterprises (M/WBE)? What’s our policy with respect to Affirmative Action?------23
Why do vendors wait so long before they get paid?------23
What’s our responsibility to the business community?------23
What are the best ways to help Procurement so that my purchase goes smoothly?------24
(The Yeshiva University Procurement Department would like to give special thanks to the Purchasing Handbook Committee at The City University of New York, who inspired this document.)
3 What is Procurement? Why do we have a Procurement Department? Why does the Procurement process sometimes seem so complicated?
We are here to facilitate and execute the acquisition of good and services and the associated payments to vendors. Procurement Services is here to provide the University with quality service, timely delivery, the best quality available, and expeditious payments, all while fostering sound business controls to protect the interests of the University.
Why does the Procurement process seem so complicated? As a recipient of grants from various agencies, YU has a responsibility to comply with all applicable laws, in addition to our own University rules and regulations. We are also subject to periodic audits, both internal and external. Lastly, YU is committed to fiduciary responsibility and fairness to our vendors, which mandates transparency of all processes.
Please bear in mind that these requirements are not intended to confuse you or slow you down, but rather to ensure the transparency and integrity of our operations. It is important also to remember that the Procurement staff is always available to assist you in navigating the process.
The Procurement Department is here to help save you money and control costs incurred by the University. The practice of competitive solicitation drives prices downward and ensures participation of a representative cross section of qualified vendors. We are firmly committed to prudent and effective stewardship of resources.
Procurement is here to help you avoid incurring personal liability and negative publicity and to ensure an open process and compliance with laws. To guarantee effective acquisition of goods and services for the University, it is essential that the authority to purchase and the responsibility for purchasing be clearly defined: The University has charged the Procurement Department with the responsibility of representing the University to the vendor community while following all applicable laws and University guidelines.
BE CAREFUL: Commitments made by an individual not authorized to do so are subject to non-payment by YU and personal liability by the unauthorized individual. If you have not been specifically granted authority to commit the University, then you are not authorized to make commitments on behalf of the University.
Who is allowed to make purchases? Who is not allowed? Who is allowed to make purchases?
The YU Procurement Department has authority to make all purchases on your behalf. Certain other authorized University staff members may make purchases, but only if using: 1) an approved Open PO processed by the Procurement Department, 2) an authorized YU P-Card, 3) a Maccabuy catalog type purchase order.
4 The University has centralized all of its purchasing functions in the Procurement Services Department to ensure compliance with all applicable laws and regulations governing purchasing, to ensure cost containment through obtaining reasonable prices, and to maintain internal control procedures relevant to the issuance, approval, and administration of purchase orders and contracts.
Who is not allowed to make purchases?
Faculty, staff and administrators do not have authorization to procure commodities or services or to enter into contractual relationships with vendors or to make any commitments on behalf of the University except in the limited circumstances set forth below through Blanket purchase orders, purchases through Maccabuy catalog type purchases or an authorized P-Card.
While it is often appropriate and necessary for faculty, staff and administrators to provide information regarding an anticipated purchase to the Procurement Department, only an authorized member of the Procurement Department may sign a purchase order or a procurement contract. The signature of an authorized member of the Procurement Department staff certifies that all applicable policies have been followed.
Unauthorized commitments made through quotes, work statements, letters or memoranda, whether made orally or in writing, by an unauthorized individual, are subject to non-payment by the University and personal liability by the unauthorized individual.
It is a violation of University policy to procure a service or commodity without acquiring necessary approvals and documents in advance. Repeat violators may face disciplinary action up to and including termination of employment.
May I sign any procurement-related documents on behalf of YU? May I sign documents provided by vendors? No. You are not authorized to sign any procurement-related documents on behalf of the University. No one, except authorized Procurement Department staff, should sign any documents provided by vendors under any circumstance.
DON’T SIGN! As a general rule – do not sign anything. Anything in writing can be deemed a contract or a commitment – quotes, invoices, letters, letters of intent, memoranda of understanding, purchase orders, work scopes, work orders, service agreements, vendor letters, vendor terms and conditions, agreements, letter agreements, vendor agreements, etc.
Who does the buying for me? Procurement Services functions as the contracting agent for the University. The Procurement Department assigns the buying and contracting function to particular staff members based on their individual skills and experience. Please check the Procurement website (www.yu.edu/procurement/about/staff) to find the name of the staff member most likely to be assigned to the particular commodity group appropriate to your needs. You may also email your inquiry to [email protected], and a member of Procurement Services will follow up with you.
Prohibition Against the Receipt of Gifts – As stated in this policy under Standards and Ethics, University employees are to "Decline ALL personal gifts and gratuities". If offered from a vendor, you should reject it courteously and explain to the vendor the policy of this University.
Who else is involved in University purchases? What role do they play?
What is the role of the Office of the General Counsel (“OGC”)? The OGC:
Reviews contracts to ensure that all legal required components are included and are adhered to.
5 Interprets and assists the University in complying with rules, laws, and regulations to protect the University.
Protects the University against potential litigation.
Assists in the enforcement of contracts.
What is the role of the Business Affairs Department?
Non sponsored ie: University-Funded Orders: Finance Department approval is required for all purchase requisitions over $5000, Departmental Finance Administrators on the Manhattan Campuses may approve up to $100,000. At amounts over $100,000, the approval of certain specific Finance officers is required. Please check http://www.yu.edu/procurement/index.aspx?id=664 for more specific details.
Sponsored Grant-Funded Orders: In addition to the above all equipment regardless of object code valued in excess of $500 must be approved by RF. In addition, for items shipped to a location other than a University facility, order must be forwarded to the Finance Department for approval.
Who’s going to help me resolve problems with deliveries?
If you are unable to resolve a delivery problem, call the Receiving Department on your campus and then Procurement for assistance.
Once a purchase order has been issued, you are responsible for verifying that the quantity and quality of goods or services received match the specifications on the original order.
If you need the goods or services by a specific date, indicate that on the purchase requisition and it will be stated on the purchase order.
What do I need to know about the purchasing process?
The Procurement Department is here to guide you through the process and to assist you in obtaining the goods and services needed while following laws and regulations that protect the University’s assets (including money and time).
The key to effective purchasing is careful planning. While it is true that on occasion the unanticipated may occur (and often a crisis results merely from a lack of forethought), there is no substitute for thorough planning. Procurement is committed to this principle and to fully assist in every way. If the unanticipated does occur, call the Procurement Department for help in determining proper action. They are equipped to provide you with guidance
6 and assistance. If there is a life-threatening emergency (e.g. fire or flood), see the “Legitimate Emergency” section below.
YU employees who direct a vendor to provide commodities or services without following proper procedures through the Procurement Department may be personally liable for the cost, and vendors who provide commodities or services without following proper procedures through the Procurement Department may be subject to non- payment.
What details should I provide to Procurement Services in regards to my purchase?
Every instance of Professional Procurement involves clear, detailed specifications. The requester must provide a clear, accurate description of the goods (commodities) and/or services needed.
Specifications, including such information as dimensions, materials, capacities, performance, and warranties, need to be established and written clearly and unambiguously in order to accurately and objectively compare competing products and services and to ensure desired product acquisition.
When in doubt, ask the Procurement Department for help in deciding what specifications are needed for a particular purchase. When possible, either attaching the quote or cutting and pasting details from a new or existing vendor quote can often be an effective way of communicating this information.
Best value does not necessarily mean only lowest price, thorough comparative product analysis against established specifications ensures the correct purchasing decision. If YU would like to have the option of not selecting the vendor who offers the lowest price, then the bid must state and justify the basis of selection clearly prior to the issuance of the solicitation document, subject to final approval by the Procurement Department.
Solicitation of competitive quotes or bids from vendors is possible only by supplying clear specifications which are sufficiently generic to avoid exclusionary consequences, whether inadvertent or deliberate.
What role do I play in the Procurement process? What do I need to do to make the Procurement process work for me?
Procurement Department Staff, having the responsibility for coordinating the procurement of a wide variety of products and services, cannot have full expertise across the full purchasing spectrum and must, at times, seek the assistance of initiating departmental staff or others in specification development. External expertise for specification development may also be sought, whether from other colleges or the private sector, all toward the goal of prudent and proper purchasing.
7 You are very important to the Procurement process because you are our customer. Procurement Services is here to both help and to serve you. Here’s how you can help us, so that we can work together to meet your needs:
Plan ahead. Make your major purchases as early in the fiscal year as possible.
Involve and communicate with Procurement as soon as you have identified your needs. Contact Procurement when you are first considering a purchase; we may be able to save you time and effort (by guiding you towards the best procurement method early on.)
The YU fiscal year runs from July 1st-June 30th. All requisitions for annual Open POs for the coming year should be submitted to Procurement no later than April 1. Please note that purchases that require public solicitations may not be completed by fiscal year end if requisitions are not submitted in a timely manner.
Work with(in) the system. The job can get done when we work together.
Share your expertise; it is needed to facilitate the purchasing process:
Educate us - share your product/vendor research and specification.
Base your request and specification on performance rather than brand.
Provide Procurement with a proper description and detailed information regarding the requested purchase sot that Procurement can specify the correct merchandise and services, consistent with quality requirements. The more information you provide to us and the better we understand your needs, the easier it will be for us to help you get the stuff you need.
Be available for a “needs interview”. Note: sometimes, we may ask you for information that seems irrelevant (at first); but there’s usually a good reason for the questions.
Indicate timing requirements/constraints early.
Learn the system. There are laws and policies that govern how we purchase.
Don’t try to make purchases on your own and then ask for help (forgiveness) afterwards. It is inefficient and frustrating for everyone and often takes longer than if done properly to begin with.
If you have any questions or concerns, contact us. We are here to help you obtain the goods and services that you need and expect.
You are responsible for prudently requesting the supplies, services, or equipment needed for the effective operation of the College and the University.
8 Tell us right away if you are unhappy with the goods/services or a selected vendor in any way. Send Procurement a list of specific reasons for dissatisfaction so your concerns and issues can be included in the Procurement Department’s files and can help provide a basis for not selecting this vendor in a future Procurement effort. Vendors should be given written notice of YU’s dissatisfaction and provided an opportunity to address the issues raised or fix the problem(s). Take detailed notes regarding the conversations you have with a vendor who has provided unsatisfactory goods or services, including the date and time such conversations. Always include name(s) of the individual(s) you speak to. Forward copies of notes to Procurement.
What does Procurement do for me? What service(s) does the Procurement Department provide?
Procurement can, with information and assistance from the requester:
Direct requesters to information about products, suppliers, market prices, and product availability, and possible alternative resources;
Determine most appropriate procurement method;
Ensure best value for the University (note that the University is not merely looking for the lowest price without regard to product quality or service);
Save you (your department) money and time;
Provide an effective interface with vendors and potential suppliers;
Ensure compliance with applicable laws and regulations, in tandem with YU policy and best practices;
Conduct solicitations, evaluate bid submissions, and conduct vendor reference checks;
Facilitate the timely delivery of goods and services;
Resolve disputes and discrepancies between items ordered and items received;
Maintain relationships with vendors;
Protect YU against legal actions; and
Avoid complaints by vendors; avoid challenges to purchases
The primary function of the Procurement Department at YU is to serve our University in securing the commodities and services needed while complying with applicable laws and regulations. Procurement’s goal is to secure the most appropriate materials, supplies, equipment and services at the lowest available price, inclusive of quality requirements and delivery needs.
What’s a University-wide contract? Are we required to use?
9 A University-wide contract is in agreement that originates as the result of a solicitation conducted by the University that is then registered as a contract in our contract-management system. Colleges and departments are required to take advantage of University-wide contracts. Only when the subject of these contracts deviates substantially from a College’s/department’s requirements should an alternative procurement method be considered.
Examples of University-wide contracts include contracts for: computer hardware, computer software licenses, copiers, office supplies, lab supplies, building automation systems, HVAC maintenance, hazardous waste removal, and beverages.
What is an “approved equal”?
When making a purchase, we are permitted to name a particular brand, model number, manufacturer, or standard, but vendors must be permitted to offer as part of its bid or proposal an alternative product as a proposed substitute. Vendors must provide supporting evidence that the proposed substitute performs at least as well as the item specified by YU. The Procurement Department staff will work with the end user to evaluate the proposed substitute product and determine whether it can be deemed an “approved equal”.
Procurement will buy what has been specified by the end user, but not necessarily from the vendor suggested.
What about “sole source” situations?
When an item is unique, available from only one supplier, or a substitution is not feasible (commonly referred to as “sole source”), Bid Waiver form approved by a department head for Non -Sponsored purchases, or the principal investigator for Sponsored purchases, must be completed and attached to your cart.
Procurement Services will determine the reasonableness of the Request for Waiver by investigating the price and services available from the “sole source” vendor.
The Waiver must be approved by the Chief Procurement Officer.
Will Procurement always use my specified vendor?
The originator of a purchase requisition frequently suggests or requests a specific manufacturer or supplier. Procurement Services will review the request for reasonableness, but reserves the right to place orders with vendors whose prices are lower than those of the vendor which appears on the requisition and who have extended their services to the University. The originator will be advised of any changes prior to purchase.
What’s an RFP (Request for Proposals)?
10 An RFP is a public solicitation tool that allows the University to choose a vendor based on several criteria (not just price) – such as quality, experience, design, availability, and timeliness. An RFP is often the better solicitation tool when you know what you want to end up with, but do not know how to design it and want input from vendors. Note: As a private institution, YU is not required to conduct public openings of submitted proposals.
What’s a site visit/pre-bid conference?
A “site visit” is an opportunity for prospective vendors to visit the campus location where a project is to be completed or where some work is to be performed.
A “mandatory pre-bid conference” is an obligation requiring a prospective vendor to attend a conference where details or a project or work do be done can be amplified and explained for the purpose of facilitating the solicitation process. The prospective vendor must attend the entire conference. A reasonable grace period may be permitted for late arrivals, but once the meeting is officially begun, latecomers may be refused entry. Bid submissions from vendors who fail to attend the entire mandatory site visit/pre-bid conference must be rejected.
Frequently a site visit is combined with a pre-bid conference, and often the two events occur at one scheduled time. In all cases, attendance by vendors planning to offer a bid submission is mandatory. The time and location of a site visit and/or pre-bid conference is always specified in the RFP solicitation documents issued by the Procurement Department or added in addenda that may be issued subsequent to the issuance of bid documents.
Procurement must take attendance (using a sign in sheet that stays in the control of the Procurement Department staff member at all times) at each site visit/pre-bid conference. A Procurement Department staff member (either the Designated Contact of the solicitation or his/her designee) must be present the entire site visit/pre-bid conference to ensure that all potential vendors are provided with the same information.
Questions that arise during the course of the site visit/pre-bid conference are recorded by the Procurement Department staff, and the questions and answers to ministerial questions are mailed to all participating prospective vendors immediately following the event. At the discretion of the Procurement Department staff responsible for organizing and officiating at these events, the deadline for bid submissions from vendors may be deferred, pending alterations in specifications or other similar considerations, should the site visit/pre-bid conference warrant such modifications. Subsequent to the site visit/pre-bid conference, all attendees will be notified in writing if any modifications in specifications, submission deadlines, and/or any revisions in the scope or essence of the procurement or project under consideration.
The site visit/pre-bid conference is intended to accomplish the following:
Facilitate the bidding process by allowing vendors to appraise first-hand the scope of a given project or requirement;
Allow for questions not anticipated by Procurement staff or other College administrators;
11 Help College administrators evaluate options relevant to the required goods, services and equipment being procured;
Provide advance notice to the College of the level of interest in the marketplace;
Provide an early assessment to the adequacy of written specifications, since attendees at the event will have had the opportunity to review and critique the written documents issued by the College’s Procurement Department staff; and
Send a clear message to all prospective vendors that the procurement process at the College is an open and transparent process, allowing all who show interest to investigate fully the bidding opportunity under consideration.
How do I get the items I need?
Make sure there are adequate funds available to you before initiating a purchase. Determine the exact source of funds prior to initiating any purchase requisition for a specific general ledger or grant number (consult with your departmental Financial Administrator or Operations Manager). An approved requisition with a designated funding source is the only way to start the procurement process (verbal discussions do not constitute a commitment). If in doubt about your department’s budgetary constraints, check with your Administrator before proceeding with a requisition to ensure expeditious action from Procurement.
ALWAYS START WITH A REQ: A purchase requisition is required in advance of all commitments of expenditures with rare exceptions. Contact the Procurement Department if you have questions about this topic.
Does YU allow any “Do it Yourself” Purchases? Certain purchases can be made directly by:
Using Blanket/Standing Order Form: Your Procurement Department has issued purchase orders to vendors who supply services/commodities on an as-needed basis not to exceed a specific dollar amount for the fiscal year. Example: A department may issue a $1,500 Open PO to an art supply store. As items are needed, the art supply store delivers against the Open order throughout the year. If this type of order would be appropriate for your department, contact the Procurement Department, who will assist you in setting one up. Bear in mind that Open orders are subject to the same purchasing laws and regulations as any other purchase.
Maccabuy Catalog Orders: Many of our vendors are now available through the SciQuest system. By using a SciQuest requisition, certain authorized users can create their own purchase orders, which are then electronically sent directly to the vendor.
Non Catalog Orders:
12 Purchasing Card (“P-Card”): The Yeshiva University Purchasing Card (P-Card) Program has been established to provide a convenient means with which to make purchases and, at the same time, reduce the costs associated with initiating and paying for those purchases. The Purchasing Card used is a MasterCard issued by JP Morgan Chase.
It is Yeshiva University policy to procure items/service via a Purchase Order. Only in instances where a Purchase Order is not accepted can a Purchasing Card can be used. Many items that are currently procured using personal funds, Check Requests, Blanket Orders, or Petty Cash are prime candidates for Purchasing Card use.
“Emergency” Purchases
Remember, lack of planning does not constitute an emergency. The Purchasing System allows for processing of several types of orders, any of which could be designated as Rush. Orders under $7,500 without any contracts or special requirements are usually handled within 2 to 3 business days. Those orders above $7,500 requiring bidding, have a contract attached to it or have special requirements could take up to 14 business days.
If it is a real, immediate emergency – such as a fire, an explosion, a flood, then first call 911. Then call Security, Facilities, etc. to immediately remedy the problem where applicable. Then work with the Procurement Department in order to make whatever purchases are necessary.
An “emergency” is defined as an instance or situation where a threat to health, safety, life or limb exists, or where a necessary service is threatened with material damage or suspension, or where University buildings or property are threatened.
Bear in mind that the legal standard for bypassing normal required competitive bidding is that there be an “unforeseen occurrence or condition.” An unforeseen occurrence or condition is one that is not anticipated or one that cannot be remedied by the exercise of reasonable care (e.g. expiration of a contract is not considered an emergency since it could have been foreseen).
How does YU engage consultants?
Engaging a consultant is handled just like other purchases of services. Procurement is required to follow all procurement procedures and, in addition, additional paperwork is necessary for consultants (a YU Independent Contractor Agreement and Consultant Checklist Form must be completed and signed). As with any purchase, if consultant services are needed for an amount exceeding $7500, then the University is required to solicit at least three bids for the services.
The first step in engaging a consultant is to provide to Procurement a complete and accurate purchase requisition Non Catalog Form stating the detailed scope of work and specific qualifications required of the consultant needed.
If no current employee can fulfill the requirements as part of his/her duties, then Procurement will assist you in identifying potential consultants who meet your requirements and recommend appropriate procurement procedures:
13 1. To engage a consultant for an amount up to $7,500, considerable latitude is permitted in consultant selection. However, the Procurement Department staff is required to maintain a procurement record reflecting a rational basis for the purchase and to include in such record reasonableness of price and evidence that the purchase represents best value.
2. To engage a consultant for an amount over $7500, where no pre-approved contracted consultant is available, the Procurement Department staff will prepare an RFP document, which they will distribute to at least three qualified consultants.
As mentioned above, all consultants must sign a University-standard agreement (Independent Contractor Agreement).
Consultants cannot be an employee at the University or an employee of any of the Colleges at the University. If a consultant is related to a University employee or has a business relationship with a University employee, this must be disclosed on a Conflict of Interest form, and this status may preclude the consultant from being contracted. NOTE: YU employees may not take part in any contracting decision relating to a family member.
Consultants engaged by the University must be qualified to work for YU, including having appropriate immigration status and tax status. Please contact the University Office of Tax Compliance for further information.
What about hiring contractors for building renovations or repairs? What about hiring architects and engineer consultants?
No end-user department at YU is authorized to enter into any agreement that is construction-related. All construction- related agreements must be approved by: at the Manhattan Campuses, Facilities Services, and at the Resnick Campuses, the Engineering Department, regardless of the source of funding (and even if the services are free to the University). End-user departments are prohibited from: making any alteration or change to the physical structure of the campus; making any capital improvements and/or initiating any acquisitions involving renovations, repairs, or improvements to facilities, whether interior or exterior; and/or hiring of architectural and engineer consulting services without prior approval, regardless of funding source. Therefore, call Facilities/Engineering first.
Solicitation (“bidding”) efforts and contracts with architectural consulting services, engineering consulting services, and contractors, regardless of source funding, are conducted by Procurement Services in conjunction with Facilities/Engineering, which will develop a solicitation document that includes contract terms and, as applicable, YU- approved specifications and drawings, prevailing wage rates, environmental assessments, insurance and indemnification requirements, external agency approvals, code compliance requirements, etc. Constructions projects, from planning to solicitation efforts to contract administration, require thorough and advance planning and extra time and effort to develop and administer.
What if I need computer equipment (hardware), software, or peripherals?
14 Call your Information Technology Services (“ITS”) first. When using University funds, all non-University-standard models must be approved by ITS before a purchase can be made (buying a University-standard model does not require this approval). Note that Procurement is prohibited from executing requisitions for computer-related goods until the model of computer in question is approved by ITS.
How do I get furniture?
Call the Department of Facilities first; furniture acquisition generally requires review and approval of Facilities, who should be consulted before requisitions for furniture are prepared.
Don’t forget about lead time for furniture purchases – typically 8 weeks.
How are purchases related to environmental, health and safety issues made?
Any health/environmental concerns to students, staff, or visitors or any violation of EPA regulations must be reported immediately to the Environmental Health and Safety Department.
If purchases or corrective actions are required, then call Procurement immediately; Procurement will work with appropriate EH&S staff and determine the appropriate procurement methodology and engagement of vendors.
How should I deal with vendors and sales representatives?
Since they are a valuable source of information, you are encouraged to seek information from potential vendors about their products and services. To help you in dealing with suppliers, we offer the following suggestions:
1. You should advise/remind vendors who contact employees of YU early on that all purchases chargeable to the University must be first authorized by an official purchase order, signed by the Chief Procurement Officer or his designee.
2. Whenever possible, work with Procurement to contact more than one supplier. If a purchase will be over $7500, by University rules a minimum of three suppliers must be contacted for bids. (See page 16 for details)
3. Provide the exact same information to all suppliers that you contact for your specific need.
4. Look at the total cost of a purchase (e.g., maintenance, supplies, etc.), not just the initial expense.
5. Ask for product demonstrations when applicable.
6. Always ask potential suppliers for ideas and alternative suggestions that may fit your needs better.
15 7. Remember that you are generally prohibited from accepting gifts or payments from suppliers. (See Gifts and Gratuities)
8. If a vendor (sales) representative asks you to sign any written documents, such as a contract, order letter, memorandum of understanding, or letter of intent, refuse to do so. Immediately refer the vendor’s representative to Procurement. Refusing to sign a vendor’s document protects you and YU.
Once a procurement process is underway – that is, once a decision is made to make a purchase, you are prohibited from direct contact with any vendor who may be selected to provide the goods or services.
1. If a vendor contacts you wile a procurement process is underway, you must (politely) advise the vendor that you may not speak with them and that any contact with the University must be directed to the designated individual in Procurement, then terminate communication. Procurement designates one individual to be the designated contact person for each purchase.
2. If you receive any materials from a vendor while procurement is soliciting bids, immediately forward them (unopened, if possible) to the Procurement Department.
Procurement says that a formal solicitation is the way we have to go. What does that mean? What must happen?
Items from $7,500 to $20,000
Procurement Services shall solicit a minimum of three verbal quotations from responsible vendors. Documentation of the quotes will be noted on the purchase order. Generally, the purchase is made from the vendor quoting the lowest price and whose product and offer comply with the terms of the solicitation. If the purchase is not made from the bidder quoting the lowest price, a written justification for the low bid bypass (a Bid Waiver) will be retained by Procurement Services. A bypass of a low bid requires the approval of the Chief Procurement Officer of Procurement Services.
Items $20,000 and Over
Procurement Services shall solicit a minimum of three written competitive bids from reliable vendors. The written quotes will be retained by Procurement Services. Purchase will be made from the vendor quoting the lowest price whose product and offer comply with the terms and specifications of the solicitation. If the purchase is not made from the bidder quoting the lowest price, a written justification for bypassing the low bid (a Bid Waiver) will be made and retained by the Procurement Services. A bypass of a low bid requires the approval of the Chief Procurement Officer of Procurement Services.
Evaluating the Bids
Once the bids are received, they must be evaluated to determine which vendor will be given the order. If the products offered by each of the bidding vendors are of equal quality, if each vendor promises the same delivery date and if there are not other considerations, the order would go to the low bidder. However, all these factors are seldom equal and many orders are, therefore, placed with other than the low bidder for good reasons. No set formula can be devised that can be applied to all products for all orders. The quality and delivery requirements will vary for different products and for different uses. The delivery requirements may vary for different orders as well.
Follow-up of Non-Bidders
A bidders list which is active and current is maintained by Procurement Services. This stimulates competitive 16 bidding and should result in maximum response to an invitation to bid. Those requesting the purchase of goods or service subject to competitive bidding must allow sufficient lead time so all solicited vendors are able to submit timely bids. Within existing time constraints, alternate vendor(s) will be sought to provide bids. Vendors not returning a bid will be queried as to the reasons they chose not to respond and Procurement Service’s bidders list will be updated accordingly.
Sole Source and Specified Vendors/Bid Waivers
The originator of the Procurement Requisition frequently suggests or requests a specific manufacturer or supplier. Procurement Services will review the request for reasonableness, but reserves the right to place orders with vendors whose prices are lower than those of the vendor which appears on the requisition and who have extended their services to the University. The originator will be so advised prior to purchase. When an item is unique, available from only one supplier or a substitution is not feasible (commonly referred to as “sole source”), a Request for a Waiver of Competitive Bid approved by a department head for University fund purchases or the principal investigator for Grant purchases must be completed. Procurement Services will determine the reasonableness of the Request for Waiver by investigating the price and services available from the “sole source” vendor. The waiver must be approved by the Chief Procurement Officer.
How is a bidder disqualified?
A bidder is considered “non responsive” to an RFP/bid request if his/her bid submission/proposal does not “respond” to the RFP solicitation properly, i.e. does not meet minimum requirements (misses deadline for submission, submits an inadequate proposal, etc).
A bidder is deemed “not responsible” if he/she does not meet the three criteria of demonstrated ability to perform, fiscal integrity, and moral integrity. The designation “not responsible” may be used when poor past performance has been documented.
What if the merchandise or service I get isn’t right? What if I have a problem with the vendor?
Contact Procurement Services right away, before calling the vendor. Provide Procurement with the purchase order number for reference.
If instructed by Procurement to do so, take notes: take and keep a detailed log (by date/time and to whom you spoke) regarding what went wrong, and send all info to Procurement.
Give Procurement support in notifying the vendor of problem(s) encountered and, if appropriate, facilitate efforts to give the vendor an opportunity to fix the problem(s).
If the item(s) ordered were not what the user department wanted, then work with the vendor to have the items(s) returned and work with the department to re-order what is needed.
17 Note that without “proof” (e.g. a record of poor service, non-delivery, inferior products, non-compliance with terms and conditions agreed upon), the University may not be able to refuse to engage this vendor the next time. Procurement needs your help and input to create a record of what went wrong for its files.
How long is it going to take for me to get my merchandise or service?
Involve Procurement as soon as you are considering a purchase; Procurement can help you frame the process so that the purchase can be made as expediently as possible.
The following are approximate time frames for processing your (complete and accurate) purchase requisitions into purchase orders or contracts:
E-Commerce Orders: Orders placed through Maccabuy Catalog are generally completely processed in 24 hours or less.
Non Catalog Orders under $7500 (with no contract or special requirements): Usually handled in 2-3 business days.
Non Catalog Orders over $7500 (requiring bids) and all orders with contracts or special requirements: Can take up to 10 business days. Orders with extensive bidding requirements may take longer than 10 days.
IMPORTANT: Concocting smaller purchases (by splitting purchases or breaking up a larger purchase, by not disclosing anticipated needs, etc.) to meet lower threshold requirements is strictly prohibited. Knowingly requesting purchases or similar commodities/services as separate orders is a violation of policy.
What can I do to get merchandise or services faster? Here are some guidelines that will help expedite your ordering of much-needed goods and services.
1. Speak to your Procurement Department early in the academic year and discuss your needs with the Procurement Department staff that will help you map out the quickest way to make your purchases.
2. Consult with the Procurement Department as the first step in the procurement process.
3. When you submit a requisition, make sure that it is accurate, complete with all of the appropriate paperwork.
4. Be sure to attach the quote or other appropriate backup to the Requisition– if you don’t, the approval process will take longer.
5. Be flexible in determining requirements of the commodities/services. If you are specifying a particular brand product not available on any state pre-approved contract, consider reviewing the specifications of alternate brand products that are immediately available for purchase on existing contracts.
18 6. After a commodity or service has been selected, request that Procurement staff research all possible sources that may preclude the RFP/bidding process; for example, preferred sources, current University-wide contracts, State of New York, Cit of New York, (NYC) Department of Education, E&I, or other government contracts, single source/sole-source, etc. Purchase from these sources can be made fairly quickly because the vendors have been evaluated and vetted already.
7. Valuable time is wasted when department try to circumvent Procurement guidelines by taking improper shortcuts. Such improper “shortcuts” often result in making the process more complicated due to the necessity of subsequent corrective actions. Follow the proper steps from the start.
8. While a sole source or single source designation may be used to expedite ordering and may preclude a time- consuming (bid) solicitation process, the appropriate criteria must be met. The Procurement Department is responsible for making the determination of whether or not a sole source procurement or a single source procurement is appropriate. The Procurement Department is required to create and maintain a file indicating that such a purchase is justifiable and appropriate.
9. Even if one cannot legitimately avoid the need to issue a (bid) solicitation, there is no need to assume that it will take an inordinate length of time to acquire needed goods and services. A key factor is planning and major procurements (anything exceeding $20,000) far enough in advance to allow Procurement to adequately assess the marketplace, advertise opportunities to prospective vendors, and prepare required solicitation documents. It is imperative that the Procurement Department staff be involved in the acquisition process from the very inception of any project involving a major procurement. Do not allow the Procurement Department staff to be the proverbial “last to know” of procurement plans under consideration.
Why can’t I just buy what I need when I need it?
For some items, you can. See previous sections about Open Purchase Orders, E-Commerce/Maccabuy O`rders, and P- Card purchases.
For all other purchases, compliance with University policies requires the knowledge and experience of Procurement Services. The Procurement staff is trained to ensure cost controls in obtaining reasonable prices and compliance with internal control procedures, consistent with the University’s commitment to proper business practices and transparency.
Your College’s Procurement Department/group has expertise in making sure that YU makes its purchases at the lowest available price, consistent with quality requirements, from vendors who have proven themselves to be reliable performers and who meet established standards/requirements. The Procurement Department is responsible for:
1. clearly representing the requester’s requirements to vendors in order to ensure the procurement of proper goods or services within a particular timeframe;
2. meeting the needs of the University while providing the best value;
3. protecting the interests of our funding agencies and benefactors;
4. ensuring transparency- fair and open competition for vendors; and
5. guarding against favoritism, extravagance, fraud and corruption.
19 REMEMBER, YU employees who direct a vendor to start providing commodities or services without an approved Purchase Order in place may be personally liable for the amount owed to the supplier.
All purchase commitments by the University must be made only by authorized individuals acting within the scope of their authority and in full compliance with the policies of the University. It is against YU policy to procure a service or commodity without acquiring necessary approvals and documents in advance. Authority for purchases is vested in the Chief Procurement Officer and Procurement Department staff. Purchases consummated by other means are unauthorized (if you have not been specifically granted authority to commit the University, then you are not authorized to make commitments on behalf of the University) and are subject to non-payment by the University and subject to payment to the vendor by the unauthorized individual purporting to make the commitment on behalf of the University.
Why can’t I just by the things I want and ask Procurement to do the “paperwork” afterwards? 1. Because it’s not just “paperwork,” and it is against YU policy to procure a service or commodity without following required procedures and acquiring necessary approvals and documents in advance.
2. If you do, the invoice will not be paid by Accounts Payable, and you will have to find an alternative source of funds. Again, YU employees who direct a vendor to provide commodities or services without an approved contract in place may be personally liable.
3. There’s no guarantee that purchases made in violation of proper procedures will be honored by YU since the required procedures may not result in a purchase that is the same as the one you made. That is, the required procedures may point to a different vendor, product, and/or price than the one(s) you chose. If so, then you’ll be personally liable for the purchase you made.
All purchases should be made via purchase orders issued by Procurement Services. If a vendor does not accept a purchase order, then an authorized P-Card may be used. If a P-Card will not work, the last option is the Request for Payment Form. DO NOT make a purchase and then seek reimbursement unless you have prior approval from Procurement Services. And remember, the University cannot reimburse you for any taxes you pay if you purchase something and seek reimbursement.
Why aren’t there consistent regulations governing ALL purchases?
Actually, there are, though not all acquisitions of goods and services require identical procedural steps. Procurement Services follows University-mandated rules that are based on numerous factors, such as (1) the nature or commodity classification of the products or services specified; (2) availability of suppliers on existing government or University contracts; (3) quantitative value of the procurement; (4) scope of complexity of the acquisition, and 5) the nature of the funding for a purchase. The Procurement Department staff is trained to identify the appropriate classification of all purchases, and is required to follow the mandated procedure in each case, as explained below.
What Procurement procedures do apply to ALL purchase?
Once you have submitted a complete, accurate, and properly-approved requisition for a commodity or service, Procurement Department staff will first determine whether the purchase can be made through an existing University- wide, New York State, or other government contract. If the purchase can be made through one of these three sources, then a purchase order will be issued without a bid solicitation.
PLEASE NOTE: An approved requisition, sent to Procurement, gives Procurement Services the authority to begin working on your purchase. Procurement is not permitted to begin making a purchase without an approved, complete, and accurate requisition.
If the purchase cannot be made through an existing YU contract or other government contract, then the following University Procurement rules apply:
20 1.) FOR PURCHASES UNDER $7500, solicitation of bids is not required and considerable latitude is permitted in vendor selection. However, Procurement Services will review the request for reasonableness, and reserves the right to place orders with vendors whose prices are lower than those of the vendor which appears on the requisition, provided that this replacement vendor also meets University quality standards and timing needs. The originator of the requisition will be advised of a replacement vendor prior to purchase. Procurement Services is required to maintain a record of each purchase documenting all costs and indicating reasons for a vendor replacement as applicable.
WE’LL SAY IT AGAIN: Concocting smaller purchases (by breaking up larger purchase, by not disclosing anticipated needs, etc.) to meet lower threshold requirements is strictly prohibited. PURCHASES FROM $7,500-$20,000 - Procurement Services shall solicit a minimum of three verbal quotations from responsible vendors. Documentation of the quotes will be noted on the purchase order. Generally, the purchase is made from the vendor quoting the lowest price while also complying with the terms of the solicitation. If the purchase is not made from the bidder quoting the lowest price, a written justification for the low bid bypass will be retained by Procurement Services.
PURCHASES IN EXCESS OF $20,000 - Procurement Services shall solicit a minimum of three written competitive bids from reliable vendors. The written quotes will be retained by Procurement Services. Purchase will be made from the vendor quoting the lowest price while also complying with the terms and specifications of the solicitation. If the purchase is not made from the bidder quoting the lowest price, a written justification for bypassing the low bid will be made and retained by the Procurement Services. A bypass of a low bid requires the approval of the Chief Procurement Officer of Procurement Services.
SOLE SOURCE or SINGLE SOURCE determination may be facilitated by contacting your Procurement Department staff who is trained to assist you in establishing sole source or single source status. While these designations may preclude following some of the procedures outlined above, valid proof that competitive products or services are unavailable for a given procurement may be required regardless of cost of the procurement. A vendor’s self-declaration of such status is of little value and not sufficient justification for circumventing the bid solicitation process. Additional research and inquiry will be required in all cases.
Why are communications with vendors restricted during the procurement process? Communicating with the vendors is restricted during the procurement process to ensure a level playing field for vendors and to avoid attempts to influence procurement.
Do we have to go through a bid solicitation process? There’s only one vendor who can provide me with the goods and services I need. Why can’t I just buy the item that I need? Because only the Procurement Department can make the determination of whether or not a sole source procurement or single source procurement is appropriate. The Procurement Department is required to create and maintain records indicating that such a purchase is justifiable and appropriate before issuing a purchase order. A declaration of sole (only) source status by the vendor is not sufficient justification.
Please note that purchases made through a single source/sole source procurement method are subject to greater scrutiny since this is a procurement method that could be used to circumvent competitive bidding. While a sole or single source procurement method may be used to expedite ordering and may preclude a time-consuming bid solicitation process, the appropriate criteria must be met, and the Procurement Department will help you determine whether it is appropriate.
What’s the difference between single source procurement and sole source procurement?
1. A sole source procurement is used when only one vendor is capable of supplying the required commodities or services.
21 2. A single source procurement is used when the desired commodities or services can be supplied by several vendors, but there are material and substantial reasons to prefer one vendor over the others, such as the need to upgrade current equipment with parts or to obtain software from the original manufacturer or to select a consultant with particular expertise.
For both sole source procurements and single source procurements, Procurement is required to include in our records information regarding the circumstances leading to Procurement’s selection of the vendor, including the alternatives considered, the rationale for selecting the specific vendor, and the basis upon which a determination was made that the price was reasonable.
Additional research and inquiry may be required, and your Procurement Department staff is trained to provide guidance. Reasonableness of price is required in all cases.
Steps involved in a sole source or single source procurement:
1. Identify vendor providing needed commodities/services
2. Review responsibility of vendor – check references, financials
3. Help Procurement obtain the following information so that proper documentation can be included in the Procurement files:
a. provide W-9 background information
b. identify need for purchase
c. demonstrate why competitive solicitation is not warranted
d. show how you have determined that a single/sole source was the best procurement method.
e. clarify how reasonable price and terms were determined
f. explain alternatives: what happens if YU doesn’t make the purchase (as a single/sole source)
What’s our policy with respect to Minority-Owned Business Enterprises and Women-Owned Business Enterprises (M/WBE)? What’s our policy with respect to Affirmative Action? It is the University’s policy to take affirmative action to ensure that Federally-certified minority-owned and women- owned business enterprises (“M/WBEs”) are given the opportunity to demonstrate their ability to provide the University with commodities and services at competitive prices.
The University encourages all departments to maximize business opportunities for M/WBEs by making every effort to place orders with such firms. The University therefore places a priority on doing business with these firms.
Why do vendors wait so long before they get paid? Usually because proper procurement processes were not followed, or
Often because the ordering department did not sign and submit the invoice promptly after it was received, or
Often because requesters make purchases without going through Procurement and necessary paperwork is lacking, or improperly completed. Creating a purchase order after an invoice comes in creates delays.
In order to process a vendor payment, both a valid invoice and a matching purchase order are required. Vendor invoices should be approved and forwarded to Accounts Payable in order to affect payment.
22 The University avoids making late payments because:
1. it’s bad practice (we want our vendors to be paid on time and fairly for goods and services rendered)
2. (Future) pricing offered by vendors will reflect long waits for payment
3. The vendor should not suffer because the requester has not completed the necessary paperwork
What’s our responsibility to the business community? We are responsible for conducting all of our business transactions with high standards – adhering to the highest standards of business ethics.
We are responsible for conducting all of our business transactions with fairness and transparency to garner public trust.
We are responsible for welcoming participation in the procurement process by all qualified and competent business entities offering goods and services congruent with our goals and mission as a world-class University.
We are responsible to uphold our fiduciary responsibilities towards all of our funding sources for proper handling of those resources.
We are responsible to make sure that doing business with YU is mutually beneficial – YU is entitled to optimal quality of service, timely delivery and “best value” available in the marketplace (not just the lowest prices) and vendors are entitled to fair profit.
What are the best ways to help Procurement so that my purchase goes smoothly? The Procurement Department will make every effort to assure timely deliveries of purchases. Some pointers to keep in mind which will help us to process your requisitions on a timelier basis are:
1. Begin the process by involving the Procurement Department. Inform vendors that all orders placed by the University must be placed through the issuance of a valid purchase order generated by the Procurement Department – no exceptions.
2. Submit a requisition to the Procurement Department with complete and accurate specifications and all paperwork attached to form.
3. Consult the calendar and vendor lead time parameters to determine realistic time frames for deliveries and services required. Submit requisitions in a timely manner, so that timely delivery is feasible. Avoid terms like “RUSH” and “ASAP” unless absolutely necessary. Remember that poor planning on your part does not constitute a real emergency.
4. Always try to be proactive and send us all backup paperwork as soon as you can. If possible do not wait for Procurement to contact you, go ahead and send the information.
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