How To Get What You Want, How To Get What You Want, When You Want It!When You Want It!

An Overview of Purchasing An Overview of Purchasing Policies and ProceduresPolicies and Procedures

Trainer InformationTrainer Informationand backgroundand background

Where is Purchasing located?Where is Purchasing located?

Today’s ObjectivesToday’s ObjectivesNavigate Purchasing Web siteNavigate Purchasing Web siteDetermine departmental Determine departmental

responsibilities in purchasing responsibilities in purchasing

processprocessLearn to write accurate and Learn to write accurate and

complete specificationscomplete specifications

Web Site NavigationWeb Site Navigation Staff Contact InfoStaff Contact Info Goods and Services PageGoods and Services Page Contract Vendors and EMarketContract Vendors and EMarket

General Purchasing InformationGeneral Purchasing Information

Governing Authority isGoverning Authority is

FSU Rules, FL Statutes, FAC (Florida FSU Rules, FL Statutes, FAC (Florida Administrative Code)Administrative Code)

OMNI Online Management of OMNI Online Management of Networked InformationNetworked Information

WHO IS ULTIMATELY WHO IS ULTIMATELY RESPONSIBLE FOR VENDOR RESPONSIBLE FOR VENDOR

SELECTION AT FSU?SELECTION AT FSU?

Before You Act, Ask Us First!Before You Act, Ask Us First!

PLAN AHEAD!PLAN AHEAD! Contact Purchasing Contact Purchasing beforebefore contacting contacting

vendors. Saves your time and effortvendors. Saves your time and effort Considerations: EMarket vendors, Considerations: EMarket vendors,

strategically sourced contracts, state strategically sourced contracts, state contracts, outside approvals, maximum contracts, outside approvals, maximum pricing to be observed, or other factors to pricing to be observed, or other factors to consider.consider.

Visit our Web Site for Contract Information.Visit our Web Site for Contract Information.

IF YOU ONLY REMEMBER IF YOU ONLY REMEMBER ONE THING FROM TRAINING.ONE THING FROM TRAINING.

…remember this!…remember this!

NEVERNEVER PLACE AN ORDER WITH A PLACE AN ORDER WITH A

VENDOR......VENDOR...... UNTIL A PURCHASE ORDER HAS UNTIL A PURCHASE ORDER HAS

BEEN ISSUED.BEEN ISSUED. YOU MUST NOTIFY PURCHASING YOU MUST NOTIFY PURCHASING

THAT THAT YOUYOU PLAN TO PLACE THE PLAN TO PLACE THE ORDER WITH THE VENDOR, BUT ORDER WITH THE VENDOR, BUT

INSURE THE PURCHASE ORDER IS INSURE THE PURCHASE ORDER IS PROCESSED IN GREETS FIRST!PROCESSED IN GREETS FIRST!

A COMMON A COMMON MISPERCEPTION.......MISPERCEPTION.......

IT’S IT’S MYMY MONEY! MONEY!

There are two kinds of money:There are two kinds of money:

State FundsState Funds: :

- Appropriated by the legislature- Appropriated by the legislature

- Contracts or Grants- Contracts or Grants

- Student activity and service fees- Student activity and service fees

- Auxiliary funds- Auxiliary funds

- Vending funds- Vending funds

Bottom Line: If there is an FSU budget Bottom Line: If there is an FSU budget number assigned, these are STATE FUNDS.number assigned, these are STATE FUNDS.

Two Kinds of Money, continuedTwo Kinds of Money, continued

Private funds:Private funds:

- Personal checkbook - Personal checkbook

- Funds handled through a direct - Funds handled through a direct

support organization, such as a support organization, such as a

Foundation account. Foundation account.

If it’s “your money” you won’t If it’s “your money” you won’t need a requisition, nor will the need a requisition, nor will the payment be made by Payables payment be made by Payables

and Disbursements. and Disbursements.

Be sure vendor Be sure vendor does notdoes not bill FSU, bill FSU, or ship to the FSU Receiving or ship to the FSU Receiving

Dept.Dept.

What is a purchase order?What is a purchase order?

A BINDING CONTRACT A BINDING CONTRACT BETWEEN FSU AND THE BETWEEN FSU AND THE VENDOR.VENDOR.

((It serves other functions too!)It serves other functions too!)

As a binding contract with As a binding contract with the vendor…..the vendor…..

THE PURCHASE ORDER.........THE PURCHASE ORDER.........

May not be unilaterally cancelled or changed by FSU, May not be unilaterally cancelled or changed by FSU, once received and accepted by the vendor (EMarket once received and accepted by the vendor (EMarket order pricing CANNOT be changed at all!)order pricing CANNOT be changed at all!)

You may You may requestrequest that the order be cancelled, but the that the order be cancelled, but the vendor may or may not agree.vendor may or may not agree.

Once accepted by the vendor, the vendor may not Once accepted by the vendor, the vendor may not change the prices, terms, or conditions without our change the prices, terms, or conditions without our consent. consent.

EMarket purchase orders cannot be cancelled due to EMarket purchase orders cannot be cancelled due to quickness of arrival of items.quickness of arrival of items.

Cancelling an OrderCancelling an Order

FSU MAY still be obligated to pay all or part FSU MAY still be obligated to pay all or part of the contracted amount for expenses of the contracted amount for expenses incurred by the vendor (shipping/restocking incurred by the vendor (shipping/restocking fees)fees)

Contact the Purchasing before initiating a Contact the Purchasing before initiating a cancellation, unless vendor has agreed to cancellation, unless vendor has agreed to cancelcancel

Provide complete details on OMNI comments Provide complete details on OMNI comments or on Change Request form to cancel POor on Change Request form to cancel PO

Reduction of Blanket Reduction of Blanket Purchase Orders UsePurchase Orders Use

Blankets are being evaluated for elimination Blankets are being evaluated for elimination due to the invoicing issuesdue to the invoicing issues

Only certain blanket purchase orders are Only certain blanket purchase orders are being authorized at this time on a case-by-being authorized at this time on a case-by-case basis. case basis.

If a department believes they need a blanket If a department believes they need a blanket purchase order, a request to obtain a waiver purchase order, a request to obtain a waiver must be sent to Purchasing for review. must be sent to Purchasing for review. Contact Purchasing for more information. Contact Purchasing for more information.

Blanket Purchase Orders Blanket Purchase Orders (Con’t.)(Con’t.)

P-Card and the FSU EMarket are P-Card and the FSU EMarket are replacements to the old blanket replacements to the old blanket purchase orderspurchase orders

These options cost less and provide These options cost less and provide more detail for evaluation of what FSU more detail for evaluation of what FSU buysbuys

- Contact Nancy Milburn for details- Contact Nancy Milburn for details

SPECIFICATIONS………...SPECIFICATIONS………...

Does Your Dog Speak Does Your Dog Speak English?English?

The Importance of Complete and Accurate The Importance of Complete and Accurate Specifications!Specifications!

Specifications RequiredSpecifications Required

Department is responsible to spell out in Department is responsible to spell out in complete detail all elements of the complete detail all elements of the contract or all requirements for the contract or all requirements for the commodity or service you need to commodity or service you need to include:include:

Specifications (Con‘t.)Specifications (Con‘t.)

Technical Specifications (brand, make, Technical Specifications (brand, make, model, description, accessories, etc.)model, description, accessories, etc.)

Performance Specifications Performance Specifications (capabilities, tasks required, speed, (capabilities, tasks required, speed, accuracy, etc.)accuracy, etc.)

- for example: if you expect an LCD - for example: if you expect an LCD projector to be compatible with MAC projector to be compatible with MAC and PC, you must include that info.and PC, you must include that info.

Specifications (Con’t.)Specifications (Con’t.)

Delivery Requirements (date item(s) must be Delivery Requirements (date item(s) must be received by, date of performance or training)received by, date of performance or training)

- Must be realistic dates – cannot bid this - Must be realistic dates – cannot bid this week and deliver scientific equipment that week and deliver scientific equipment that must be manufactured and configured by next must be manufactured and configured by next weekweek

Shipping (who will pay, what type, where to Shipping (who will pay, what type, where to deliver on or off campus)deliver on or off campus)

Now let’s try some and see how we do……Now let’s try some and see how we do……

Sample Specifications:Sample Specifications:

Example 1:Example 1: - Department requires a new computer - Department requires a new computer

for an employeefor an employee - Specifications sent: Desktop - Specifications sent: Desktop

computer with Windows 2000 software, computer with Windows 2000 software, CPU, scanner, printer, etc. to be CPU, scanner, printer, etc. to be includedincluded

- What is wrong with these specs?- What is wrong with these specs?

Sample Specifications (Con’t.)Sample Specifications (Con’t.)

Example 2:Example 2: - Department requires misc. laboratory - Department requires misc. laboratory

suppliessupplies - Specifications sent: 12 glass sample - Specifications sent: 12 glass sample

slide plates, 24 glass test tubes, 12 slide plates, 24 glass test tubes, 12 glass vials, and 4 pairs of latex glass vials, and 4 pairs of latex laboratory gloveslaboratory gloves

- What is missing from these specs?- What is missing from these specs?

Specifications (Con’t.)Specifications (Con’t.)

Example 3:Example 3: - Department requires safety books for - Department requires safety books for

a class a class - Specifications sent: 10 copies of - Specifications sent: 10 copies of

Social Control of the DrinkingSocial Control of the Drinking Driver, Driver, ISBN 0226469549, written by Michael ISBN 0226469549, written by Michael Laurence Laurence

- Is anything missing?- Is anything missing?

Once Again…Once Again…who does what?…...who does what?…...

Department (requisitioner or end-user) Department (requisitioner or end-user) specifies quality specifies quality

Purchasing determines the price and Purchasing determines the price and source of the purchase. source of the purchase.

Pricing PoliciesPricing Policies

Like items received on same day may be Like items received on same day may be combined for pricing purposescombined for pricing purposes

Average Processing Time for all orders is Average Processing Time for all orders is based on receipt of complete requisition with based on receipt of complete requisition with all information requiredall information required

If requisition is incomplete and must be If requisition is incomplete and must be returned, will cause delaysreturned, will cause delays

Pricing Policies:Pricing Policies:

Department may submit quotes, but is Department may submit quotes, but is NEVER required to do soNEVER required to do so

Purchasing may re-quote if better Purchasing may re-quote if better pricing possiblepricing possible

Note: Purchasing frequently receives Note: Purchasing frequently receives better pricing than departments, better pricing than departments, even even from the same vendor!from the same vendor!

Up to $6,000 Up to $6,000

Purchasing may use the vendor Purchasing may use the vendor recommended by the department or recommended by the department or another vendoranother vendor

Average Processing Time: 24 hours or Average Processing Time: 24 hours or

less. less.

$6,000 To $15,000$6,000 To $15,000

Normally, Purchasing will obtain quotesNormally, Purchasing will obtain quotes

Must have complete and accurate Must have complete and accurate specifications to avoid delays – may specifications to avoid delays – may send requisition back for clarificationsend requisition back for clarification

Average Processing Time: 1 to 4 daysAverage Processing Time: 1 to 4 days

$15,000 To $74,999$15,000 To $74,999

Purchasing selects the competitive solicitation Purchasing selects the competitive solicitation method best suited to the purchase method best suited to the purchase

Departments need not obtain their own Departments need not obtain their own quotes. Submit the requisition to Purchasing quotes. Submit the requisition to Purchasing with complete specifications. with complete specifications.

Average Processing Time: 2 to 5 days Average Processing Time: 2 to 5 days (quotes) or see formal bid information.(quotes) or see formal bid information.

$75,000 and up$75,000 and up

Purchasing department must issue formal bid Purchasing department must issue formal bid by lawby law

Department submits requisition(s) to Department submits requisition(s) to Purchasing with complete specifications. Purchasing with complete specifications.

If uncertain of the budget number, contact the If uncertain of the budget number, contact the purchasing agent to begin the bid process purchasing agent to begin the bid process prior to requisition being submitted.prior to requisition being submitted.

Over $50,000Over $50,000

At $70,000 the bid will be advertised on At $70,000 the bid will be advertised on the Internet, through the state of the Internet, through the state of Florida’s Internet bid system. Florida’s Internet bid system.

Average Processing Time: Depending Average Processing Time: Depending on specifications, between 15 to 60 on specifications, between 15 to 60 days. Contact the purchasing agent to days. Contact the purchasing agent to discuss actual bid timeframes. Longer discuss actual bid timeframes. Longer for over $70,000 purchases.for over $70,000 purchases.

Over $1 Million..Over $1 Million..Special Handling RequiredSpecial Handling Required

The University president must sign all The University president must sign all purchase orders for $1,000,000 or more purchase orders for $1,000,000 or more

Average Processing Time: Depends Average Processing Time: Depends upon president’s schedule. Contact the upon president’s schedule. Contact the purchasing agent for details. Allow purchasing agent for details. Allow extra time to obtain required signatureextra time to obtain required signature

Flow Chart for PurchasingFlow Chart for Purchasing

Identify a needIdentify a needDetermine what willDetermine what will

Satisfy the Satisfy the requirementrequirement

DetermineDetermineType of Type of

ProcurementProcurement

Low Cost,Low Cost,Send to PurchasingSend to Purchasing

Through OMNIThrough OMNI

High Cost, High Cost, Send specs. Send specs.

To PurchasingTo PurchasingTo Quote, Bid, etc.To Quote, Bid, etc.

Purchasing Purchasing Processes Processes

Purchase OrderPurchase Order

Purchasing processesPurchasing processesQuote, bid, orQuote, bid, orProposal asProposal as

RequiredRequired

Vendor determinedVendor determinedUpon completionUpon completionOf competitiveOf competitive

SolicitationSolicitationInput OMNI req.Input OMNI req.

This process This process can take from 1 can take from 1 day to several day to several

months. Be suremonths. Be sure

You allow time You allow time forfor

Process.Process.

Receiving DepartmentReceiving Department

Manager:James LeeManager:James Lee Phone: 644-2750Phone: 644-2750 Call James with ANY questions or Call James with ANY questions or

problems regarding the Receiving problems regarding the Receiving Department . Department .

In Review…we coveredIn Review…we covered

Purchasing Web site navigationPurchasing Web site navigation

Department responsibilities and time Department responsibilities and time lines, etc.lines, etc.

Specifications and purchasing limitsSpecifications and purchasing limits

FSU Purchasing DepartmentFSU Purchasing Department

We’re here to assist you!We’re here to assist you!

Give us a call! 644-6850Give us a call! 644-6850