HOW GOODS AND SERVICES ARE PURCHASED
UW-Madison provides a conduit for ordering directly from prime vendors for lab supplies, office supplies, and MRO items through UW Materials Distribution Services http://www.bussvc.wisc.edu/mds/prime.html. Utilizing the MDS Web Ordering System is the most efficient way to take advantage of the conveniences of E Commerce when ordering from participating vendors.
The preferred method for completing delegated transactions with other external vendors is by UW-Parkside Procurement Card. Obtaining and using a Purchasing card saves you time and reduces University administrative costs.
When a transaction cannot be made with the Pro Card, a requisition bearing the required signatures authorizing funding must be submitted to Pre-Audit in Business Services. It may be advantageous to check with Purchasing to first determine if a contract exists prior to initiating a requisition. When there is no applicable contract, a competitive process is preferred for purchasing goods and services.
Purchasing pre-approval is required prior to engaging in purchasing actions beyond departmental delegated authority. Purchases made without necessary pre-approval are considered illegal by the state, and the employee contracting the procurement may be held liable for the cost. By state statute, any purchase exceeding $5,000.00 ($50.00 for printing) must be transacted via an official state purchase order originating from the UW-Parkside Purchasing Department. Serial purchasing or fragmenting a transaction to avoid the delegation limit is not an acceptable alternative.
Campus departments using the Procurement Card are delegated to place allowable transactions up to $5,000.00 directly with vendors without Purchasing pre-approval. Departments not participating in the Purchasing Card program are restricted to an amount stated on a formal delegation agreement approved by the Department Chair/Director, Budget Authorization Signatory, and the Director of Purchasing. A principal point of contact is named in each delegated department to ensure records and documentation is available for department reference and audit. Purchasing provides delegation training.
THE COMPETITIVE PROCESS Purchasing may use one of the following competitive processes to obtain the goods or services you require. The total dollar amount of the requisition and the type of goods or service being purchased determine the appropriate process.
Exceptions to the competitive Process
The purchase of printing, radioactive materials, vehicles, legal services, architectural and engineering services, and temporary help is restricted and governed by different statutes or administrative rules. Contact Purchasing for details.
Purchase of goods or services of $5,000 or less requires a best judgment decision. Obtaining competitive quotes is encouraged although documentation of competition is not required.
Purchases of goods or services $5,000 to $25,000 require seeking competition from a minimum of three potential vendors and documentation of the competition in a manner suitable for auditing. The documentation may be in the form of current catalog prices or price lists, phone or FAX quotations, verbal quotations, or written bid responses. The process is documented on the Simplified Bidding Record form http://vendornet.state.wi.us/vendornet/doaforms/doa-3088.doc.
Official Sealed Bids
Purchases of $25,000 or more require a detailed competitive process including development of specifications, posting on Vendor Net, advertising in the official state newspaper [ The Wisconsin State Journal ], public bid openings, bid evaluations, award notifications, and may be subject to bidder protests regarding the award. After reviewing the bid results, an award is made to the bidder(s) meeting all the specifications with the lowest price. Changes in a bid specification or bidder's response that may infringe on the rights of other bidders or the University cannot be made after bid opening. Generic bid specifications which are used to gauge the vendor response, must be carefully developed to insure the success of the Official Sealed Bid process.
Only in cases where specifications cannot be developed or when an award cannot be made strictly on specifications or price, a Request for Proposal process is sometimes used. Because the RFP process is quite involved and requires various levels of approvals and review, several months must be allowed to arrive at an award determination.
Waiver of Bid Process
Uniqueness of product or service, patented or proprietary features, and intrinsic value may restrict the existence of competition. Purchasing has authority to waive bidding up to $25,000 with appropriate justification and documentation from the ordering department. Waivers of $25,000 or more require Purchasing to obtain authority to proceed from UW-Systems, the State Department of Administration, Bureau of Procurement and the Governor.
Many commodities and services are covered under contracts established by our campus, UW-Madison, UW-Systems, or DOA State Bureau of Procurement. Most of the contracts established by the state are mandatory while all University contracts are optional for the purchaser. System, Madison, and DOA contracts can be accessed via a search feature http://wneta.bussvc.wisc.edu/puct/main_menu.aspx on the Madison Campus web pages.
SPECIAL APPROVAL COMMODITIES/SERVICES
Even though a commodity or service you may want to purchase does not conflict with a mandatory contract, it may have other restrictions due to Federal or State requirements and University policies. When initiating a transaction, you should determine if any special approvals or adherence to other conditions are required. Orders cannot be issued to vendors until required approvals are in place. The following are examples of procurements that must meet special conditions or require additional approvals.
Signage/Assistive Listening Device, etc. (Compliance to Americans w/Disabilities Act)
Air Charter, 8 or less passengers (Wisconsin Air Service to provide)
Alcoholic Beverages (University restrictions, approval for research use)
Computers and Software (IT Services approval)
Controlled Substances (State Controlled Substance Board and DEA registration)
Fireworks, pyrotechnics (Risk Management approval)
Furniture (BSI release-contact Purchasing)
High Speed Copiers (DOA approval)
Importing Goods (State, Federal, Customs regulations)
Insurance (DOA Risk Mgt approval)
High Risk Services (Proof of Insurance Coverage)
Student Org Transactions (Dean approval)
Legal Services (Governor's approval)
Motor Vehicles (DOA, Governor's approvals)
Printing over $50.00 (University Relations must order)
Radioactive Materials/Stable Isotopes (Risk Management approval)
Temporary Help (Purchasing, Human Resources approvals)
Trademarked Goods (Trademark Licensing verification)
Weapons (Police and Safety approval)
Architectural, structural, electrical, security system modifications (Facilities Mgt approval)
Food Service on campus (Parkside Union approval)
Personal items, e.g. snacks, beverages, creamer, sugar, lotion, Kleenex, cleaning supplies and other items for routine consumption by staff or students (Not allowed-contact Pre-Audit)
Help Wanted Advertising
The ordering department is responsible for obtaining all necessary hiring approvals before procuring help wanted classified advertising. Note that employment ads for Classified Staff CAN ONLY BE WRITTEN AND PLACED by the Human Resources Department to insure compliance with Civil Service procedures. For other vacancies, the requestor may also wish to consult with Human Resources when composing ad text. When ad content has been finalized and publish dates have been determined, the following procedure is to be followed for placing classified newspaper ads for other than Classified Staff.
Prepare an LDO using the Purchase Authorization Form to authorize payment. . The date the ad is to be printed, along with a deadline date for receipt by the vendor, should be clearly stated. Include in the body of the order, email Order to firstname.lastname@example.org.
If time constraints do not allow for normal routing of the requisition for signatures, a copy may be FAXED TO THE PURCHASING DEPARTMENT (ext 2990) and confirmed by sending the originals to Pre-Audit.
Departments should inform the Mail Room any time they start, cancel, or renew a newspaper subscription. The newspaper must be informed in writing of a non-renewal by the department, or they may continue sending copies and hold us liable for payment.
General Equipment Repair
For on-campus equipment repairs the department should contact the vendor and describe the repair problem. If the vendor can estimate the cost of the repair without seeing the equipment, and it will exceed the department's delegation level, the department should prepare a requisition to cover the estimated cost. The call-through or FAX procedure can be used if the repair is an emergency.
If the vendor cannot estimate the cost without inspecting the equipment, the department may schedule a vendor to come to campus to inspect the equipment. When the vendor arrives, they should give the department an estimate on repair costs, and the department should do a call-through requisition prior to any repair work being done if it will exceed the department's delegated authority. The Purchasing Department will call the repair vendor and authorize the repair. If repairs will be under the delegated level, a low-dollar order should be processed.
For off-campus repair procedures, see Return Material section.
Mail Services will stock a range of official UW-Parkside envelopes and post cards. To order envelopes, contact Mail Services at 262/595-2385.
All requisitions for other printing exceeding $50.00 must be sent to the Publications Office in University Relations for pre-approval and processing.
Requisitions should be completed on line using the UW-Parkside Purchase Authorization form. After reviewing instructions for completing the form, contact Purchasing to access the password-protected document. Properly completed forms are to be submitted to Pre-Audit bearing the necessary signature approvals.
The Authorization should be indicated as one of the following types:
Purchase Order -Transaction exceeding department delegation or vendor requires a formal State Purchase Order.
Confirming- Requesting payment of an attached invoice resultant of a delegated transaction.
LDO- Authorizing payment for a delegated purchase placed by the department. Instruct vendor to invoice Accounts Payable.
Cash with Order- Transaction requiring University check for prepayment.
Change Order- Revising previously submitted Authorization.
Tracking A Requisition An official State Purchase Order is not required for transactions under $5,000.00 ($50.00 printing). Requisitions within your delegated amount that do not require a Purchase Order (confirming, LDO, and cash with order requisitions) are not encumbered and are not appear on the system until payment is processed. Departments are able to track the status of those orders by checking the requisition log that can be accessed as follows:
Double click - My Computer icon
Double click - Parkside on 'RJELab\uwp' (J:)
Double click - Campus Info
Double click - Business Services
Double click - Purchasing
Double click - Req Number
The log is sorted by requisition number and lists the date entered onto the network by Purchasing.
On requisitions of $1,000 or more, departments will be required to submit an addition if the final purchase price exceeds by $100 or more the original requisition amount. On requisitions of less than $1,000, additions of $50.00 or more will still be required.
Some orders require payment to be submitted along with the order. One example is a Conference Registration. Price verification must be included with all requests for pre payments.
Requisitions requiring a check must be in Pre-Audit 10 days before the date needed. Reservation or other payment deadlines should be clearly marked on the requisition. Checks will not be written against fax requisitions. Accounts Payable will mail remittance directly to vendor with applicable attachments unless alternate instructions are indicated on the Authorization.
Departments wishing to make frequent purchases from a single vendor should initiate a blanket order requisition for their total anticipated needs for the fiscal year. Unless a contract blanket order is awarded based on the bid process, or otherwise indicated, a $5,000.00 limit per release order (transaction) will apply. The ordering department should monitor releases against the total amount indicated on the order. Blanket order balances will appear as negative amounts on ledger statements when the encumbrance becomes over-liquidated.
Continuing Order Renewal
Blanket Orders, Contract Release Orders, orders for maintenance agreements, lease/purchase arrangements and some other orders may repeat from year to year. Purchasing tries to identify these orders and requests information from the originating departments as their orders expire. New PO's are generated upon receiving a response approving reorder.
Emergency procurements exceeding a department's delegated authority can be handled via walk-through, call-through, or fax-through procedures, as follows.
The individual responsible for the request hand-carries the requisition to Pre-Audit and then to the Purchasing Department.
The order also may be called through to Pre-Audit at ext. 2247. When requesting a call-through, all of the information required on the requisition must be relayed to Pre-Audit, as well as an explanation of the emergency.
A copy of the completed Authorization can be faxed to Pre-Audit at 2990 with a request to call or fax the order to the vendor, and an explanation of the emergency.
The completed Authorization, with all necessary attachments, is immediately forwarded through normal channels to Pre-Audit.
The original of a previously faxed Authorization must indicate CALLED THROUGH OR FAXED TO PRE-AUDIT (date) in order to avoid duplication of the order.
An emergency is defined as a situation which:
1. Threatens the public health, safety or welfare, and
2. Was unforeseen, and
3. Calls for immediate action, and
4. Cannot be responded to using established procurement methods.
Delegated purchasers must act within the mission of the ordering department and are responsible for abiding by State Procurement Regulations and University Purchasing policies and procedures. Note that all delegated purchases must adhere to mandatory contracts, requirements for special approvals, and compliance to state and University policy regardless of dollar amounts. Delegated transactions are restricted to a determined amount up to $5,000.00 per transaction. Delegated departments do not to issue Blanket type orders, orders for maintenance agreements, or printing orders exceeding $50.00 directly with vendors.
Fragmented Transactions (not allowed)
Serial purchasing as defined by placing multiple transactions by the same delegated individual for related items totaling over $5,000.00 within any 30 day period to the same vendor is prohibited. Transactions for items covered by State or University Contracts are not considered serial purchases.
Delegated orders placed directly with vendors must be marked as Confirming Orders in the body of the Authorization form.
Fax - Confirming Fax Order to (full name or Fax #) on (date)
Followed by DO NOT DUPLICATE.
Phone - Confirming Phone Order to (full name) on (date)
Followed by DO NOT DUPLICATE.
Vendors should be instructed to submit a properly prepared invoice directly to Accounts Payable indicating the Authorization number.
All contracts for purchase or other procurement documents requesting University signature (except for a receipt to acknowledge delivery) must be forwarded to Purchasing for signature. Purchasing will review the agreement for terms and conditions not acceptable to the University and take appropriate action.
RETURN MATERIAL INSTRUCTIONS (RMI'S)
Departments must obtain authorization from the Purchasing Department to return items, which have been recently purchased, via a purchase order or to send equipment off campus for repairs.
To receive authorization, call Purchasing at 262/595-2248 with the following information:
1. Vendor name, address, and phone number.
2. Purchase order number.
3. Description of items to be returned.
4. Reason for return; e.g., wrong item sent by vendor, does not work, etc.
5. Estimated Value of item.
Return for Repair
1. Vendor name, address, and phone number.
2. Description of item to be repaired, including manufacturer name, model number, and serial number, if applicable.
3. Description of needed repair.
The department will contact the vendor to get authorization (including an R.A., Return Authorization number) to forward the materials to the vendor.
After authorization from the vendor is received, an RMI form will be completed by Purchasing, including correct ship-to address, vendor authorization number, request for estimate (for repairs), etc., and will be sent to the department. It is the responsibility of the department to package the item(s) and contact Mail Services to arrange shipping. Upon receipt of an estimate, the department should follow appropriate procedures to allow payment of the repair. In an emergency, the call-through method may be used.
Items, which have a useful life of at least two years and a unit cost of $5,000, are assigned inventory numbers and entered into the inventory system. Central Receiving normally affixes inventory tags to the capital equipment.
When it is impractical for Central Receiving to attach an inventory number tag to equipment, the number, along with a purchase order copy, will be sent to the department. Departments should place the tag on the equipment and return the acknowledgement to the Purchasing Department. Cooperation of the departments is essential in order to maintain an accurate inventory of equipment. Departments should keep records of equipment under $5,000 purchase value.
GIFTS ($5,000 AND OVER)
Gifts, which have been accepted by the University through the established campus procedures, are placed on inventory as follows:
1. The department prepares a requisition for a zero-dollar describing the donation (equipment description, model, serial number, etc.), department funding, value of the equipment, and location of item. FOR INVENTORY PURPOSES ONLY should be stated in the body of the Authorization.
2. A purchase order is typed from this requisition for an inventory record copy. Inventory numbers are then assigned for the equipment and sent to the department.
3. The equipment is then placed on inventory via the on-line inventory system for the amount noted as value on the requisition, and donation is noted on the inventory description.
FABRICATED EQUIPMENT ($5,000 AND OVER): Departments that build a piece of equipment or stand-alone item must notify the inventory office.
1. The department prepares a requisition for a zero-dollar amount with an equipment description, department funding, estimated value, and location of item. FOR INVENTORY PURPOSES ONLY should be stated in the body of the Authorization, and any documentation that will support the estimate should be attached.
2. A purchase order is typed from this requisition for an inventory record copy. Inventory numbers are assigned for the equipment and sent to the department.
3. The equipment is placed on inventory via the on-line inventory system for the amount noted as value on the requisition and fabricated is noted on the inventory description.
Vendor invoices are compared against the Purchase Order or Requisition authorizing payment. Vouchers for payment are entered for complying invoices and remittance checks are generated in the Accounts Payable Department. Improperly submitted invoices are disputed back to the vendor.
Prompt Payment Requirement
By state statute, properly submitted vendor invoices must be paid within 30 days of receipt, providing goods and/or services have been delivered, installed (if required), and accepted as specified. If the University does not timely pay the amount due on an order or contract, we will pay interest on the balance due from the 31st day after receipt of a properly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later. Additionally, if the University does not notify the sender of the invoice within 10 working days of receipt of an improperly completed invoice we will pay interest on the balance due from the 31 st day after receipt of an improperly completed invoice or receipt and acceptance of the property or service under the order or contract, whichever is later.
Positive Approval/Information Requests
In order for the University to remain true to the required timeframes, it is important that invoices are immediately directed to Accounts Payable and that ordering departments respond promptly to requests for information or Positive Approvals for payment. Originating departments must submit Authorization forms to Business Services prior to arrival of invoices resulting from delegated transactions. Delays in submission could result in interest liability, disputed invoices, and poor vendor relations.
For 1099 reporting purposes, the Internal Revenue Service requires the University to use valid Tax Identification Numbers (TIN) when paying through our accounts payable department. Departments requesting a payment through Accounts Payable should include a Social Security Number or an Employer Identification Number for an individual, sole proprietor, LLC, or corporate entity. It is also requested that a W-9 completed by the designated vendor or individual be included with an initial transaction request.
Payments originating from Accounts Payable can easily be tracked on WISDM. Contact Jennifer Agerholm in the Controllers Office at 262-595-2781 for assistance or training.