Supply Chain Management, Guide for Goods & Services

SUPPLY CHAIN MANAGEMENT, GUIDE FOR GOODS & SERVICES TOPIC FORMS A. Use the Statement of Work (SOW) to detail the Goods and/or Services you SOW Template would like to obtain. B. Have the services already started or have the goods been delivered? This is a violation of University policy which is contained in BFB-BUS 43, Materiel After the Fact Justification Management. Complete the After the Fact Justification form in the BearBuy requisition: C. Is an Individual or sole proprietor completing the services? If yes, complete Pre Hire Worksheet the Pre-Hire Worksheet to help the campus comply with IRS regulations. BFB-BUS 34 D. Are the services of a type that are currently being performed by a UC Employee? There are special considerations and restrictions for represented employees covered UCB Bargaining Units by Presidential guidelines, union contracts. Provide a comment in the Bear Buy cart. E. Is there a potential Conflict of Interest? Safeguard University employees from Conflict of Interest charges of favoritism. Guidelines and Form F. Are there any federal funds: grant or contract to be spent for this purchase? Please provide the grant/contract# in the PO line item description when creating the cart. G. Are the Goods and/or Services >$99,999.00 per year? If yes, California Contract code & BFB-BUS 43 require that Goods and/or Services must Public Contract Code be competitively and publicly bid. BFB-BUS 43  Contact your assigned central buyer for assistance with public competitive bidding.  Has the department checked the market and identified qualified responsible suppliers? There are limited exceptions to competitive public bidding allowed for:  Personal services  Professional services (which require licensing and errors and omissions insurance)  Sole Sources (the item or service is unique and available only from a single source)  Designed to match others, used in, or furnished to, a particular installation, facility, or location (PCC) (Note: this must be necessary to the continuing function of an existing installation, facility, location)  When an emergency situation exists (BFB-BUS 43) For all orders >$99,999.00 seeking an exception to competitive public bidding, Supply Chain Management will determine if competitive bidding or other research is needed before a purchase can be made. H. For orders under $100,000, complete the Proof of Price Reasonableness & Proof of Price Source Justification form documenting the business need, why the price is Reasonableness & Source reasonable, and why other Suppliers didn’t meet your departments needs. Involve Justification your Buyer before soliciting proposals or quotes from qualified suppliers. A reasonable price need not be the lowest price available but it is one which offers the highest total value to the University. Supply Chain Management will review source justification and determine if further competitive bidding or other research is needed to validate prices. I. Is the proposed supplier set up in Bear Buy? If not, Supplier to complete the Substitute W-9 Supplier UCB Substitute W-9 Supplier Information Form. Information Form

Rev 10-3-2017 Page 1 of 4 TOPIC FORMS J. All suppliers are required to have insurance per University Policy BFB-BUS BFB-BUS 63 63. Do you have a current copy of the Supplier’s certificate of insurance? If yes, Supplier Insurance attach a copy in the Bear Buy cart. Requirements K. Is there an existing agreement in place? If yes, add a comment in the Bear Contracts Buy cart with the agreement information and attach the SOW. Skip K-L. L. Low Value Orders that will need Buyer Intervention - Goods and/or Services and public facing goods that could cause harm need to be reviewed by SCM. Buyer Intervention Requisitions must be routed by Buyer intervention regardless of dollar value if your order falls into one of the categories below. Check the BearBuy Buyer Intervention checkbox inside the Bear Buy ordering form.

M. Amendments / Change Orders Amendments & Change *Campus end users must initiate the change to the Purchase Order prior to the Orders Supplier performing the services. Amendment Template *Buyers or Change Order Preparers need to ensure that the revised PO is sent to the Supplier communicating changes and to ensure correct billing.

PO’s that list a Buyer’s name or a revised value ≥$5000 Enter a comment in the existing PO addressed to your departments assigned Buyer providing the information listed in Item 1 or 2 depending on the nature of the change. The Buyer will review and determine if the request doesn’t violate any of procurement's policies. A new PO may need to be created depending on the circumstances (i.e. the new services fall outside the original SOW. PO’s that don’t have a Buyer’s name and/or ≤$4999: If the PO is low value and/or doesn’t contain a Buyers name, you will need to enter a comment in the PO addressed to CSS Procurement support (link is external)  PO’s should be for one fiscal year unless it was awarded from a multi-year competitive bid conducted by Supply Chain Management.  Only have one line item if the chartstring is the same for the entire order.  Multiple PO lines can be used for payments tied to a milestone deliverables or different chartstings.  A new PO may need to be created depending on the circumstances (i.e. the new Goods and/or Services fall outside the original SOW). *Campus end users must initiate the change to the Purchase Order prior to the Supplier performing the services. *Buyers or Change Order Preparers need to ensure that the revised PO is sent to the Supplier communicating changes and to ensure correct billing.

Required PO Documents N. Required PO Documents Due to Federal, State or UC regulations, most orders will need the following documentation for audit purposes. Providing the information in advance will streamline the procurement process. Attach the following documents to the Bear Buy requisition for the goods and services you are requesting, as directed in Bear Buy. Additional documents might be required due to

Rev 10-3-2017 Page 2 of 4 TOPIC FORMS the nature of services; see Special Considerations for more information. Please use the following naming convention and guide to when a document should be an internal or external attachment. Internal 1. Proof of Price Reasonableness & Source Justification: Include a written justification explaining business purpose, why this source for the service was selected, and how it was determined that the price is reasonable. Note that requests that exceed $100,000 per year will need to be competitively bid. Requests that are less than $100,000 per year should be accompanied by price comparison with at least two (2) other suppliers. 2. Statement of Work (SOW): The department determines goods and services specifications that the Supplier will deliver. See the Supply Chain Management Goods & Services Guide for more information on how to create a Statement of Work. 3. Suppliers Proposal: Written proposal, dated, on supplier letterhead, that identifies the pricing, deliverables, and timeframe for the goods or services as defined in the SOW. Identify any exceptions or UC dependencies that are needed for the Supplier to perform the services. It should link fees charged to scheduled deliverables and timeframes. Hourly rates should be used only as a means of determining a fee. It should include the Supplier and UC contact information. 4. Insurance: Prior to providing services to the University, Suppliers must furnish the University with current certificates of insurance (and the relevant endorsement pages) that meet the UC Insurance Requirements, at minimum. Additional insurance may be required for higher risk goods or services. 5. Conflict of Interest: Prior to providing services to the University, Suppliers must complete Conflict of Interest Certification Form, Part A. Review the Conflict of Interest Guidelines to find out more about how to complete the form. 6. Pre-Hire Worksheet: Use the Pre-Hire Worksheet to determine an individual's status as an employee or Independent Contractor prior to an engagement. External 1. Agreement: Fully executeded by the Supplier and Buyer with delegated authority. 2. CA Partial Sales Tax Exemption Certificate: When purchasing research equipment, if CA Partial Tax Exemption applies, then attach a completed CA Partial Sales Tax Exemption Certificate (link is external) (link is external). If needed, the Buyer will use the above documentation to create an agreement, which will be signed by the Buyer and the Supplier and attached to the requisition as an external attachment. Contracted Suppliers: Both UC Berkeley and the Office of the President have a number of contracted suppliers. Search Contracts in BearBuy to learn more about the agreements. If

Rev 10-3-2017 Page 3 of 4 TOPIC FORMS the statement of work and payment schedule described in an agreement match the department’s need, that agreement may be able to be used in lieu of some of the steps above. Once all required documentation has been received and approved, the Buyer will be able to issue the PO, which is the signal to the requester that work may begin. Goods/services should not be ordered prior to the issuance of a PO.

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