Purchasing Policy and Procedures

1.1 Authority for Procurement

Fairleigh Dickinson University’s Purchasing Department is a division of the office of the Vice President for Finance/Treasurer. The office as the responsibility for all procurement negotiations and the administration of procurement policies and procedures as delegated to the Director of Purchasing by the President of the University and the Trustees.

1.2 Responsibility and Objectives

The function of the Purchasing department is the organization and administration of centralized purchasing services for all departments of the University. In performing these services in accordance with sound and prudent business practices, the office seeks to realize for the University the maximum value for every dollar expended.

The Purchasing Department, in its aim to achieve this goal and governed by policies delegated by the President and University Trustees, is responsible for the following:

Obtaining competitive bids and selecting vendors.
Maintaining liaison with the vendors that service the University.
Coordinating the procurement of goods and services for the academic, administrative, and research departments of the University.
Developing sources of supply to assure that University departments have an adequate number of vendors from whom to obtain supplies and equipment.

1.3 Authorized Purchases

In accordance with the authority delegated to the Director of Purchasing by the Vice President for Finance/Treasurer through the Office of the President and the Trustees of the University, all purchases, regardless of the source of funds, will be governed by the following policies:

It shall be the policy to obtain all supplies, equipment and services at the lowest cost to the University, consistent with quantity, quality and availability of the items at the time of purchase. In conforming to this policy, the cost of purchase and the delivery time required by the using department will be considered. Competitive bids will be solicited whenever practical.

1.4 Gifts and Gratuities

It is the policy of the Purchasing Department as well as other related personnel of Fairleigh Dickinson University to decline personal gifts or gratuities in connection with the purchasing function. University staff of the Purchasing Department may not accept personal gifts or gratuities from any current or potential supplier of goods or services to the University.

1.5 Conflict of Interest

The University as a general rule does not enter into purchasing contracts with students, faculty, staff, parents or members of their immediate families. Acquisitions from a business in which a Fairleigh Dickinson employee has an interest are prohibited unless full disclosure of the background facts is presented in writing to the Purchasing Department. Interest is deemed present if the employee and/or their spouse or un-emancipated minor children own ten percent or more of the assets of a business.

11. EXPENDITURE OF FUNDS

Fund Source 2.1

Account Numbers 2.2

Receiving Report Approval 2.3

Requisition to Purchase 2.4

Payment Request Form 2.5

2.1 Fund Source

All funds deposited with Fairleigh Dickinson University regardless of source are university funds and must be handled in accordance with University policy. Although departments are allocated funds in their budgets for a given period, this allocation is only an authority to requisition, not to purchase.

Each department is assigned an account number or numbers by the Budget Office. All requisitions must carry the complete number of the account to be charged.

2.3 Receiving Report Approval

Signed receiving reports should be returned to the Accounts Payable Office promptly, since the credit standing of the University depends on fulfilling its obligations on time. Departments should arrange for alternate signatory power in order that staff absences not delay the appropriate approval.

In the event that a department head feels payment should not be made because a vendor has not met the terms and conditions specified in the purchase order, he or she should notify the Purchasing Department immediately, in writing, of the details surrounding this purchase order.

2.4 Requisition to Purchase

Only officially designated persons shall have authority to issue requisitions.

For proper control the purchasing function should, wherever possible, reside with one person in a department. The prompt processing of all work, however, remains the responsibility of the department chairperson or office director.

All requests for outside purchases, regardless of the source of funds, must be processed through the Purchasing Department on the purchase requisition/order form (exhibit A).

Departments submitting a requisition are requested to follow the following guidelines:

· Each purchase requisition form must contain a complete description of the material or service desired. Care should be taken that each requisition list only items that can be furnished by one supplier. (e.g., Do not request laboratory supplies with office supplies).

· Each purchase requisition should be prepared as a six-part set and forwarded to the Purchasing Department.

· Where possible, the ordering department should furnish suggested sources of supply, and the name and address of each recommended vendor.

2.5 Payment Request Form

It is the role of University Purchasing to evaluate and purchase those goods and services, which can be competitively bid. It is recognized that there are certain acquisitions that cannot benefit from competitive bidding and the issuance of a purchase order. In this case, user departments may contact the vendor directly and utilize the “Payment Request Form” to initiate payment upon receipt of invoice. The back of the second page of the form contains a list of the typical types of payments, which may be submitted on this form. This list will be routinely evaluated and used departments will be notified of updates. (Exhibit B)

111. THE PURCHASE ORDER

Purchase Order 3.1

Cancellation or Modification 3.2

of Orders

Damages and Shortages 3.3

Mistakes in Shipping or 3.4

Invoicing

Returns for Credit 3.6

Contract Purchase Order 3.6

3.1 Purchase Order

A Purchase Order is prepared and copies are sent to the vendor and appropriate departments. The Purchasing Department is the only office authorized to assign a purchase order number.

3.2 Cancellation or Modification of Orders

Requests for Cancellation or modification of purchase orders. Including an increase or decrease in the dollar amount of the order, must be submitted to the Purchasing Department in writing by an officially designated individual, stating the reason for the change and referring to the purchase order number and vendor’s name and address.

An official notification to the vendor will be sent via a Change Order.

Change Orders will be limited to 20% of the original encumbered dollars.

3.3 Damages and Shortages

In cases of damage or shortage of shipment, a written report must be submitted immediately to the Purchasing Department, including the following details: purchase order number, date, vendor, extent of damage or shortage. Government Regulations require the University to file claims within a specific number of days. Failure to comply with these regulations could result in disallowment of the claim.

3.4 Mistakes in Shipping or Invoicing

Mistakes in shipping or invoicing must be reported promptly in writing to the Purchasing Department. Refer to the Purchase Order Number and vendor involved. Departments should give sufficient detail concerning the mistake so that proper negotiations and correction of the mistake can be handled with the vendor.

3.5 Returns for Credit

When vendors have shipped items as specified on a purchase order, they have legally complied with their part of the contract and are under no obligation to accept for credit any of those items delivered as specified. Acceptance of a return by the vendor is by no means automatic, and a restocking charge may be incurred. This charge will be assessed to the requisitioning department.

Requests to return supplies or equipment to the vendor for adjustment or credit, which affect the encumbered amount of the purchase order, should be processed through the Purchasing Department.

3.6 Contract Purchase Order

This type of purchase order is intended to eliminate small repetitive requests for expendable supplies or services. It is used to encumber a specific amount of funds for a specified length of time. It is generally used in processing preventive maintenance types of requests and lease/purchase or rental orders.

Supplies or services are drawn against these orders, when needed, by a designated representative.

IV. SUPPLIER SELECTION AND QUOTATIONS

Interviewing Sales Representatives 4.1

Vendor Selection 4.2

Disadvantaged Supplies 4.3

Errors in Bids or Quotations 4.4

Late Quotations 4.5

The Confidentiality of Quotations 4.6

Demonstration or Sample Material 4.7

Insurance 4.8

Leases 4.9

Sales Agreements 4.10

Service Contracts 4.11

Sole Source 4.12

Supplier List 4.13

Supply Sources 4.14

Request for Bids or Quotations 4.15

Vendor Qualifications 4.16

4.1 Interviewing Sales Representatives

University personnel desiring to contact sales representatives should apply to the Purchasing Department for assistance.

4.2 Vendor Selection

Vendors are selected for their capability to serve the needs of the University in the most economical and efficient manner possible. Pas performance and cooperation are important factors.

Vendors must comply with the Equal Opportunity act (Executive Order 11246 as amended) since it is the policy of the University to promote the full realization of equal employment opportunity through an Affirmative Action Program. They must also comply with all federal state and local laws and directives.

4.3 Disadvantaged Suppliers

The University is committed to the principles of Affirmative Action and shall endeavor to apply these principles in its purchasing with the objective of fostering greater participation by minority and women-owned enterprises in its procurement activity. This assumes that price and availability are equal.

4.4 Errors in Bids or Quotations

Vendors are responsible for the accuracy of their quoted prices. In the event of an error between a unit price and its extension, the unit price will govern. Quotations may be amended or withdrawn by the bidder up to the bid opening date and time, after which, in the event of an error, bids may not be amended but may be withdrawn prior to the acceptance of the bid. After an order has been issued, no bid may be withdrawn or amended unless the Purchasing Department considers the change to be in the University’s best interests.

4.5 Late Quotations

It is the responsibility of all vendors to ensure that their quotations are received in the Purchasing Department no later than the appointed hour of the bid opening date as specified on the request for bid. Late quotations will not be considered and will not be opened.

All bids and quotations will be date and time stamped to assure that they are received prior to the requested date and time.

4.6 The Confidentiality of Quotations

Price quotations are given to Fairleigh Dickinson University in confidence and shall not be revealed to any other vendor or unauthorized person.

4.7 Demonstration or Sample Material

University employees wishing to see samples or have equipment demonstrated should contact the Purchasing Department for assistance.

University personnel who find the need to contact sales representatives directly are reminded to advise the prospective vendor that a purchase order will be issued by the Purchasing Department should a procurement decision be made.

Vendors are to provide their own insurance coverage for any material left at the University.

4.8 Insurance

Prior to the commencement of any work or services for the University, the vendor to the Purchasing Department must submit evidence of appropriate insurance coverage.

4.9 Leases

The Director of Purchasing must sign all form of Lease, Lease Purchase or Rental Agreements for the procurement of material or services on behalf of Fairleigh Dickinson University.

Regardless of the time period involved in these agreements, a formal University Purchase Order will be issued. The using department should define Lease Agreement on the Requisitions, indicating whether it is a new or renewal agreement. When possible a copy of the Lease Agreement should accompany the requisition.

Prior to accepting Lease Agreements as submitted by the requisitioning department, the Purchasing Department will analyze each one. This analysis will be made to determine the economic soundness of leasing versus purchasing the goods or services.

Some of the factors, which will be considered in making this determination, are as follows:

(a) Title Who retains title to the equipment?

(b) Liability Who is responsible if equipment is stolen or damaged?

when rendering services and/or is their equipment

adequately insured?

(d) Maintenance Are all maintenance costs included in he original cost of the lease or is the University responsible for maintaining the equipment at its own expense?

(e) Pay Back Period If the University were to make an outright purchase, what is the payback period, and what credits are

accumulated in the event that a Lease Purchase Agreement is executed?

A final and important consideration that will be made in determining Lease versus

Purchase is the availability of funds. Does the requisitioning department have sufficient

budget funds or, in the event of Grant or Contract Funds, does the source of funding

provide for this type of expenditure?

4.10 Sales Agreements

It is in the best interest of the University to refrain from signing sales agreements Terms and conditions governing a purchase may be found on the reverse side of the purchase order.

If a separate contract is required, the Director of Purchasing will sign for the University only after a properly executed requisition is received. A copy of the agreement will be retained in the Purchasing Department file.

4.11 Service Contracts

Certain items of equipment are covered by service contracts in order to assure continuing efficient operation. Forms required by service companies must be signed on behalf of the University by the Director of Purchasing and Forwarded to the company with a purchase order.

4.12 Sole Source

Certain sole source items may require documentation from the requisitioning

department to justify their purchase.

Instances when “sole source” designation is applicable include the following:

When property or services can be obtained only from one person or firm.

When competition is precluded because of the existence of patent rights, copyrights, secret processes, control of raw material or similar

circumstances.

When the procurement is for electric power, gas, water or other utility

services where it would not be practical to allow a contractor other

than the utility company itself to work upon the system.

When the procurement is for technical services in connection with assembly, installation or servicing or equipment of a highly technical

or specialized nature.

When the procurement is for parts or components to be used as replacements in support of equipment specifically designed by the manufacturer.

When the procurement involves construction where a contractor is already at work on the site and it would not be practical to engage another contractor.

Final responsibility in determining whether an item is a proprietary item and may be purchased from a sole source rests with the Purchasing Department.

4.13 Supplier Lists

The Purchasing Department will maintain a list of all persons and firms who wish to bid on University purchases. Invitations to bid will be solicited from those vendors whom the Purchasing Department determines

will stimulate viable competitive bidding.

In addition, Purchasing will maintain and update a Small Business and Disadvantaged Vendor List with the objective of stimulating greater procurement activity within these business groups.

4.14 Supply Sources

Requisitioning departments are encouraged to suggest sources of supply for unusual items. Authority for the final selection of the vendor, however, shall be left to the Purchasing Department, which will make its decision in light of the overall needs of the University.

4.15 Requests for Bids or Quotations

Competitive bids and/or quotations will be obtained by the Purchasing Department, prior to the Purchase Order being issued, in accordance with the following guide lines.

$ 1 - $1000 - Quotations may be solicited.

$ 1,001 - $10,000 - The Purchasing Department will attempt to obtain

at least three (3) quotations. These bids or quotations will be obtained either by telephone or

written bid, depending on the nature of the items

requested.

$10,000 & up - Three formal written bids will be solicited.

Departments should not use multiple requisitions in an attempt to circumvent the bidding process.

4.16 Vendor Qualifications

All vendors doing business with the University are monitored as to how will they

perform, particularly vendors doing business with the University for the first time.

References are checked, formal interviews conducted when feasible to make sure

bidders are qualified.

In addition, the Purchasing Department maintains a vendor evaluation file.

Departments are encouraged to supply whatever information they may have

which will help us evaluate our vendors.

5.1 Emergency Orders

“Emergency Situation” shall be defined as any situation which, if not corrected

immediately, would result in a hazard to persons or property, could result in

damage to buildings or facilities, would result in a violation of law, statute, or

ordinance established by governmental or regulatory authority, or in any other

fashion, if not acted upon, would be seriously detrimental to the interest of the

University.

Failure to anticipate a need is not, of itself, considered a bonafide emergency.

To initiate an emergency purchase, the authorized person in the department

for an order number. They must state the nature of the emergency, vendor’s name, and address, dollar amount and account number to be charged. This must be followed up with a confirming requisition sent to the Purchasing Department within three days of the date the order number was given. The confirming requisition should indicate the order number and the statement “confirming”

5.2 Personal Orders

Because of the tax-exempt status of the University, the Purchasing Department cannot issue purchase orders for personal purchases. Purchasing Department staff members will be happy to suggest possible sources that may offer a discount.

Vendors are under no obligation to offer discounts to individuals, and do so with the understanding that their offer places the University Purchasing Department under no obligation to do business with them except within strict business practices.

5.3 Sales Tax

Fairleigh Dickinson University is exempt from New Jersey State Sales and Use Tax. When requested, the Purchasing, the Purchasing Department will furnish a copy of our tax-exempt certificate with the Purchase Order.

5.4 Small Orders

Small repetitive orders should be increased in amount and decreased in frequency. This will reduce University costs for negotiating and placing orders, as well as related administrative work.

5.5 Radioactive Material

Requisitions from University departments for radioactive material must be sent to the Bio Hazards Coordinator for approval before forwarding to the Purchasing Department.

Requisitions will be processed by the purchasing Department only after receiving this approval.

5.6 Telephones

Requests for changes, additions, or deletions of telephone service should be

submitted directly to the Telephone & Voice Services Department.

5.7 Utilities

Purchases involving the use or installation of utilities (gas, water, electricity), must be approved by the Office of the Vice President for Administration before

a Purchase Order is issued.

	Purchasing Policy and Procedures
AT A GLANCE:	The University’s comprehensive Purchasing Policies and Procedures will ensure that departments receive the most competitive prices and also the best service.
	1.1 Authority for Procurement Fairleigh Dickinson University’s Purchasing Department is a division of the office of the Vice President for Finance/Treasurer. The office as the responsibility for all procurement negotiations and the administration of procurement policies and procedures as delegated to the Director of Purchasing by the President of the University and the Trustees. 1.2 Responsibility and Objectives The function of the Purchasing department is the organization and administration of centralized purchasing services for all departments of the University. In performing these services in accordance with sound and prudent business practices, the office seeks to realize for the University the maximum value for every dollar expended. The Purchasing Department, in its aim to achieve this goal and governed by policies delegated by the President and University Trustees, is responsible for the following: Obtaining competitive bids and selecting vendors. Maintaining liaison with the vendors that service the University. Coordinating the procurement of goods and services for the academic, administrative, and research departments of the University. Developing sources of supply to assure that University departments have an adequate number of vendors from whom to obtain supplies and equipment. 1.3 Authorized Purchases In accordance with the authority delegated to the Director of Purchasing by the Vice President for Finance/Treasurer through the Office of the President and the Trustees of the University, all purchases, regardless of the source of funds, will be governed by the following policies: It shall be the policy to obtain all supplies, equipment and services at the lowest cost to the University, consistent with quantity, quality and availability of the items at the time of purchase. In conforming to this policy, the cost of purchase and the delivery time required by the using department will be considered. Competitive bids will be solicited whenever practical. 1.4 Gifts and Gratuities It is the policy of the Purchasing Department as well as other related personnel of Fairleigh Dickinson University to decline personal gifts or gratuities in connection with the purchasing function. University staff of the Purchasing Department may not accept personal gifts or gratuities from any current or potential supplier of goods or services to the University. 1.5 Conflict of Interest The University as a general rule does not enter into purchasing contracts with students, faculty, staff, parents or members of their immediate families. Acquisitions from a business in which a Fairleigh Dickinson employee has an interest are prohibited unless full disclosure of the background facts is presented in writing to the Purchasing Department. Interest is deemed present if the employee and/or their spouse or un-emancipated minor children own ten percent or more of the assets of a business. 11. EXPENDITURE OF FUNDS Fund Source 2.1 Account Numbers 2.2 Receiving Report Approval 2.3 Requisition to Purchase 2.4 Payment Request Form 2.5 2.1 Fund Source All funds deposited with Fairleigh Dickinson University regardless of source are university funds and must be handled in accordance with University policy. Although departments are allocated funds in their budgets for a given period, this allocation is only an authority to requisition, not to purchase. Each department is assigned an account number or numbers by the Budget Office. All requisitions must carry the complete number of the account to be charged. 2.3 Receiving Report Approval Signed receiving reports should be returned to the Accounts Payable Office promptly, since the credit standing of the University depends on fulfilling its obligations on time. Departments should arrange for alternate signatory power in order that staff absences not delay the appropriate approval. In the event that a department head feels payment should not be made because a vendor has not met the terms and conditions specified in the purchase order, he or she should notify the Purchasing Department immediately, in writing, of the details surrounding this purchase order. 2.4 Requisition to Purchase Only officially designated persons shall have authority to issue requisitions. For proper control the purchasing function should, wherever possible, reside with one person in a department. The prompt processing of all work, however, remains the responsibility of the department chairperson or office director. All requests for outside purchases, regardless of the source of funds, must be processed through the Purchasing Department on the purchase requisition/order form (exhibit A). Departments submitting a requisition are requested to follow the following guidelines: · Each purchase requisition form must contain a complete description of the material or service desired. Care should be taken that each requisition list only items that can be furnished by one supplier. (e.g., Do not request laboratory supplies with office supplies). · Each purchase requisition should be prepared as a six-part set and forwarded to the Purchasing Department. · Where possible, the ordering department should furnish suggested sources of supply, and the name and address of each recommended vendor. 2.5 Payment Request Form It is the role of University Purchasing to evaluate and purchase those goods and services, which can be competitively bid. It is recognized that there are certain acquisitions that cannot benefit from competitive bidding and the issuance of a purchase order. In this case, user departments may contact the vendor directly and utilize the “Payment Request Form” to initiate payment upon receipt of invoice. The back of the second page of the form contains a list of the typical types of payments, which may be submitted on this form. This list will be routinely evaluated and used departments will be notified of updates. (Exhibit B) 111. THE PURCHASE ORDER Purchase Order 3.1 Cancellation or Modification 3.2 of Orders Damages and Shortages 3.3 Mistakes in Shipping or 3.4 Invoicing Returns for Credit 3.6 Contract Purchase Order 3.6 3.1 Purchase Order A Purchase Order is prepared and copies are sent to the vendor and appropriate departments. The Purchasing Department is the only office authorized to assign a purchase order number. 3.2 Cancellation or Modification of Orders Requests for Cancellation or modification of purchase orders. Including an increase or decrease in the dollar amount of the order, must be submitted to the Purchasing Department in writing by an officially designated individual, stating the reason for the change and referring to the purchase order number and vendor’s name and address. An official notification to the vendor will be sent via a Change Order. Change Orders will be limited to 20% of the original encumbered dollars. 3.3 Damages and Shortages In cases of damage or shortage of shipment, a written report must be submitted immediately to the Purchasing Department, including the following details: purchase order number, date, vendor, extent of damage or shortage. Government Regulations require the University to file claims within a specific number of days. Failure to comply with these regulations could result in disallowment of the claim. 3.4 Mistakes in Shipping or Invoicing Mistakes in shipping or invoicing must be reported promptly in writing to the Purchasing Department. Refer to the Purchase Order Number and vendor involved. Departments should give sufficient detail concerning the mistake so that proper negotiations and correction of the mistake can be handled with the vendor. 3.5 Returns for Credit When vendors have shipped items as specified on a purchase order, they have legally complied with their part of the contract and are under no obligation to accept for credit any of those items delivered as specified. Acceptance of a return by the vendor is by no means automatic, and a restocking charge may be incurred. This charge will be assessed to the requisitioning department. Requests to return supplies or equipment to the vendor for adjustment or credit, which affect the encumbered amount of the purchase order, should be processed through the Purchasing Department. 3.6 Contract Purchase Order This type of purchase order is intended to eliminate small repetitive requests for expendable supplies or services. It is used to encumber a specific amount of funds for a specified length of time. It is generally used in processing preventive maintenance types of requests and lease/purchase or rental orders. Supplies or services are drawn against these orders, when needed, by a designated representative. IV. SUPPLIER SELECTION AND QUOTATIONS Interviewing Sales Representatives 4.1 Vendor Selection 4.2 Disadvantaged Supplies 4.3 Errors in Bids or Quotations 4.4 Late Quotations 4.5 The Confidentiality of Quotations 4.6 Demonstration or Sample Material 4.7 Insurance 4.8 Leases 4.9 Sales Agreements 4.10 Service Contracts 4.11 Sole Source 4.12 Supplier List 4.13 Supply Sources 4.14 Request for Bids or Quotations 4.15 Vendor Qualifications 4.16 4.1 Interviewing Sales Representatives University personnel desiring to contact sales representatives should apply to the Purchasing Department for assistance. 4.2 Vendor Selection Vendors are selected for their capability to serve the needs of the University in the most economical and efficient manner possible. Pas performance and cooperation are important factors. Vendors must comply with the Equal Opportunity act (Executive Order 11246 as amended) since it is the policy of the University to promote the full realization of equal employment opportunity through an Affirmative Action Program. They must also comply with all federal state and local laws and directives. 4.3 Disadvantaged Suppliers The University is committed to the principles of Affirmative Action and shall endeavor to apply these principles in its purchasing with the objective of fostering greater participation by minority and women-owned enterprises in its procurement activity. This assumes that price and availability are equal. 4.4 Errors in Bids or Quotations Vendors are responsible for the accuracy of their quoted prices. In the event of an error between a unit price and its extension, the unit price will govern. Quotations may be amended or withdrawn by the bidder up to the bid opening date and time, after which, in the event of an error, bids may not be amended but may be withdrawn prior to the acceptance of the bid. After an order has been issued, no bid may be withdrawn or amended unless the Purchasing Department considers the change to be in the University’s best interests. 4.5 Late Quotations It is the responsibility of all vendors to ensure that their quotations are received in the Purchasing Department no later than the appointed hour of the bid opening date as specified on the request for bid. Late quotations will not be considered and will not be opened. All bids and quotations will be date and time stamped to assure that they are received prior to the requested date and time. 4.6 The Confidentiality of Quotations Price quotations are given to Fairleigh Dickinson University in confidence and shall not be revealed to any other vendor or unauthorized person. 4.7 Demonstration or Sample Material University employees wishing to see samples or have equipment demonstrated should contact the Purchasing Department for assistance. University personnel who find the need to contact sales representatives directly are reminded to advise the prospective vendor that a purchase order will be issued by the Purchasing Department should a procurement decision be made. Vendors are to provide their own insurance coverage for any material left at the University. 4.8 Insurance Prior to the commencement of any work or services for the University, the vendor to the Purchasing Department must submit evidence of appropriate insurance coverage. 4.9 Leases The Director of Purchasing must sign all form of Lease, Lease Purchase or Rental Agreements for the procurement of material or services on behalf of Fairleigh Dickinson University. Regardless of the time period involved in these agreements, a formal University Purchase Order will be issued. The using department should define Lease Agreement on the Requisitions, indicating whether it is a new or renewal agreement. When possible a copy of the Lease Agreement should accompany the requisition. Prior to accepting Lease Agreements as submitted by the requisitioning department, the Purchasing Department will analyze each one. This analysis will be made to determine the economic soundness of leasing versus purchasing the goods or services. Some of the factors, which will be considered in making this determination, are as follows: (a) Title Who retains title to the equipment? (b) Liability Who is responsible if equipment is stolen or damaged? (c) Insurance Do vendors carry sufficient insurance on their employees when rendering services and/or is their equipment adequately insured? (d) Maintenance Are all maintenance costs included in he original cost of the lease or is the University responsible for maintaining the equipment at its own expense? (e) Pay Back Period If the University were to make an outright purchase, what is the payback period, and what credits are accumulated in the event that a Lease Purchase Agreement is executed? A final and important consideration that will be made in determining Lease versus Purchase is the availability of funds. Does the requisitioning department have sufficient budget funds or, in the event of Grant or Contract Funds, does the source of funding provide for this type of expenditure? 4.10 Sales Agreements It is in the best interest of the University to refrain from signing sales agreements Terms and conditions governing a purchase may be found on the reverse side of the purchase order. If a separate contract is required, the Director of Purchasing will sign for the University only after a properly executed requisition is received. A copy of the agreement will be retained in the Purchasing Department file. 4.11 Service Contracts Certain items of equipment are covered by service contracts in order to assure continuing efficient operation. Forms required by service companies must be signed on behalf of the University by the Director of Purchasing and Forwarded to the company with a purchase order. 4.12 Sole Source Certain sole source items may require documentation from the requisitioning department to justify their purchase. Instances when “sole source” designation is applicable include the following: When property or services can be obtained only from one person or firm. When competition is precluded because of the existence of patent rights, copyrights, secret processes, control of raw material or similar circumstances. When the procurement is for electric power, gas, water or other utility services where it would not be practical to allow a contractor other than the utility company itself to work upon the system. When the procurement is for technical services in connection with assembly, installation or servicing or equipment of a highly technical or specialized nature. When the procurement is for parts or components to be used as replacements in support of equipment specifically designed by the manufacturer. When the procurement involves construction where a contractor is already at work on the site and it would not be practical to engage another contractor. Final responsibility in determining whether an item is a proprietary item and may be purchased from a sole source rests with the Purchasing Department. 4.13 Supplier Lists The Purchasing Department will maintain a list of all persons and firms who wish to bid on University purchases. Invitations to bid will be solicited from those vendors whom the Purchasing Department determines will stimulate viable competitive bidding. In addition, Purchasing will maintain and update a Small Business and Disadvantaged Vendor List with the objective of stimulating greater procurement activity within these business groups. 4.14 Supply Sources Requisitioning departments are encouraged to suggest sources of supply for unusual items. Authority for the final selection of the vendor, however, shall be left to the Purchasing Department, which will make its decision in light of the overall needs of the University. 4.15 Requests for Bids or Quotations Competitive bids and/or quotations will be obtained by the Purchasing Department, prior to the Purchase Order being issued, in accordance with the following guide lines. $ 1 - $1000 - Quotations may be solicited. $ 1,001 - $10,000 - The Purchasing Department will attempt to obtain at least three (3) quotations. These bids or quotations will be obtained either by telephone or written bid, depending on the nature of the items requested. $10,000 & up - Three formal written bids will be solicited. Departments should not use multiple requisitions in an attempt to circumvent the bidding process. 4.16 Vendor Qualifications All vendors doing business with the University are monitored as to how will they perform, particularly vendors doing business with the University for the first time. References are checked, formal interviews conducted when feasible to make sure bidders are qualified. In addition, the Purchasing Department maintains a vendor evaluation file. Departments are encouraged to supply whatever information they may have which will help us evaluate our vendors. 5.1 Emergency Orders “Emergency Situation” shall be defined as any situation which, if not corrected immediately, would result in a hazard to persons or property, could result in damage to buildings or facilities, would result in a violation of law, statute, or ordinance established by governmental or regulatory authority, or in any other fashion, if not acted upon, would be seriously detrimental to the interest of the University. Failure to anticipate a need is not, of itself, considered a bonafide emergency. To initiate an emergency purchase, the authorized person in the department for an order number. They must state the nature of the emergency, vendor’s name, and address, dollar amount and account number to be charged. This must be followed up with a confirming requisition sent to the Purchasing Department within three days of the date the order number was given. The confirming requisition should indicate the order number and the statement “confirming” 5.2 Personal Orders Because of the tax-exempt status of the University, the Purchasing Department cannot issue purchase orders for personal purchases. Purchasing Department staff members will be happy to suggest possible sources that may offer a discount. Vendors are under no obligation to offer discounts to individuals, and do so with the understanding that their offer places the University Purchasing Department under no obligation to do business with them except within strict business practices. 5.3 Sales Tax Fairleigh Dickinson University is exempt from New Jersey State Sales and Use Tax. When requested, the Purchasing, the Purchasing Department will furnish a copy of our tax-exempt certificate with the Purchase Order. 5.4 Small Orders Small repetitive orders should be increased in amount and decreased in frequency. This will reduce University costs for negotiating and placing orders, as well as related administrative work. 5.5 Radioactive Material Requisitions from University departments for radioactive material must be sent to the Bio Hazards Coordinator for approval before forwarding to the Purchasing Department. Requisitions will be processed by the purchasing Department only after receiving this approval. 5.6 Telephones Requests for changes, additions, or deletions of telephone service should be submitted directly to the Telephone & Voice Services Department. 5.7 Utilities Purchases involving the use or installation of utilities (gas, water, electricity), must be approved by the Office of the Vice President for Administration before a Purchase Order is issued.