Procurement ServicesTHINGS YOU NEED TO KNOW BEFORE YOU BUY

Topics

Purchasing Authority The Process Dollar Thresholds What should I do if my purchase is $5,000 or

less? What should I do if my purchase is over $5,000? Purchasing Resources Summary

Purchasing Authority

CSU’s purchasing authority is from the CSU Board of Governors & President through a delegation to the Director of Procurement Services.

All purchases by all CSU employees must be made according to CSU Procurement and Fiscal Rules from Statutes that carry personal legal impact.

The Director gives departments the authority to make small dollar purchases (Up to $5,000 without a written vendor agreement) using an Automatic Purchase Order (APO), University Procurement Card (PC) and/or a Kuali Disbursement Voucher.

Purchasing Authority

Fiscal Rule 2Colorado State University Fiscal Rule 2, Part A on Propriety of Expenditures:

All expenditures of University funds shall be made for official University business purposes only and shall be reasonable and necessary under the circumstances.

Pursuant to C.R.S. §24‐30‐202(3) any person(s) who incurs or orders an obligation or makes a payment from University funds without the requisite authority may be held personally liable for such obligation. In other words, do not order goods or services unless you have approved purchase documentation (i.e. Purchase Order).

The Process: Getting StartedThe procurement process is a partnership between a campus department/end-user and Procurement Services, so we need your help to get started. Creating and approving a purchase requisition in Kuali

A purchase requisition is an informal request from a department to Procurement Services to write an order for goods or services and to authorize a specific account to be charged

A purchase requisition has No minimum dollar amount, but must be used for all orders exceeding PCard or DV limits

A purchase requisition is NOT A PURCHASE ORDER – it is simply an approval request, not a purchase authorization

A PURCHASE ORDER is the official authorization to purchase goods or services.

Cost of the purchase must be identified Vendor agreements – must be reviewed and approved by the

appropriate Purchasing Agent

What’s next?

Dollar Thresholds

Goods Services

$5,000 to $10,000 $5,000 to $25,000Purchasing Agent Discretion Purchasing Agent Discretion

$10,000 to $150,000 $25,000 to $500,000Documented Quote on Documented Quote onColorado BIDS system Colorado BIDS system

Greater than $150,000 Greater than $500,000Invitation for Bid on Request for Proposal onColorado BIDS system Colorado BIDS system

PURCHASING AGENT DISCRETION: This means that the request does not have to be competitively bid. However, a Purchasing Agent may elect to solicit competition if deemed in the best interest of the University.

Dollar Thresholds

Purchasing Agent Discretion (>$5,000 - $10,000 for goods and >$5,000 - $25,000 for services)

Purchases in this dollar range do not have to be competitively bid PA must use professional judgment to ensure maximum value PA may seek competition if in the best interest of the University

Documented Quotation (DQ)(>$10,000 - $150,000 for goods and >$25,000 - $500,000 for services)

Informal quote process used for the purchase of goods and services Purchasing Agent prepares the Documented Quotation with assistance

from requesting department DQ must be posted on the State of Colorado “BIDS” website for a minimum

of three (3) business days (see note below) Bidders may respond via fax or e-mail Generally a low bid which meets or exceeds specifications or Statement of

Work (SOW) determines award

Note: While each purchase is initiated by a requisition in the financial system, the course it follows will vary depending upon the anticipated cost, complexity, or legalities of the purchase.

Dollar Thresholds

Invitation for Bid (IFB) (>$150,000 and more for goods)

Formal bid process used for the purchase of goods. Purchasing Agent works with the department to prepare the bid

documentation. Must be posted on the State of Colorado "BIDS" System for a

minimum of fourteen (14) calendar days.

Request for Proposal (RFP)(>$500,000 and more for services)

Formal process which considers criteria other than prices in evaluation and award.

Purchasing Agent works with the department to prepare the bid documentation.

Must be posted on the State of Colorado "BIDS" System for a minimum of thirty (30) calendar days.

Note: While each purchase is initiated by a requisition in the financial system, the workflow it follows will vary depending upon the anticipated cost, complexity, or legalities of the purchase.

What should I do if my purchase is under $5,000?

Hint: Don’t sign a vendor quote or agreement!

You can make purchases with… An Automatic Purchase Order = APO

APO’s are Purchase Requisitions generated through Kuali APO’s are small dollar purchase orders up to $5K APO’s require department approval Do not sign any vendor agreement/quote Purchasing Agents must review and sign any vendor agreement/quote

A Disbursement Voucher = DV DV documents are processed in the Kuali System Only for purchases when you have an invoice in hand Not a purchase order $5,000 single transaction limit for goods and services Don’t use consecutive DVs to circumvent the single transaction limit!

A PCard Should only be used when the use of a Shop Catalog vendor, APO, or a DV is

not a viable option Individual cardholders have varying purchase limits Don’t split transactions to circumvent your single transaction limit Don’t make personal purchases Not to be used for employee travel or travel related expense

What should I do if my purchase is over $5,000?

Hint: If you have questions contact us first!

Make sure to involve us in your planning in order to facilitate the process and to make it as efficient as possible. Our involvement will help maintain accountability and hopefully avoid unauthorized purchases. What is an UNAUTHORIZED PURCHASE?

Section 24-30-202(3), CRS: No person shall incur or order… any obligation against the state in excess of or for any expenditure not authorized by appropriation and approved commitment voucher except as expressly authorized by this section… But every person incurring or ordering or voting for the incurrence of such obligation and his surety shall be jointly and severally liable.

IN OTHER WORDS, DO NOT ORDER GOODS OR SERVICES UNLESS YOU HAVE APPROVED PURCHASE DOCUMENTATION OR YOU COULD BE PERSONALLY LIABLE.

Procurement Services is legally responsible for source selection which assures the purchase is made according to University policy and procedures

Procurement Services will guide you through the process so you get the products and services you need

Purchasing Resources

Please visit the CSU Procurement Services website for support and directions at http://

www.procurementservices.colostate.edu/ to see:

Our Staff is listed along with their areas of expertise University Price Agreements Current Contract Forms – always use from website!Current CSU Procurement events

Send an email for help to: Procurement Help Desk or call us at: 970-491-5105

Procurement Summary

If your purchase is greater than $5,000 contact the Procurement Services staff FIRST!

We’ll work together so you get the goods and services you need Procurement is legally responsible for a source selection We will assure the purchase complies with Federal, State, and

CSU fiscal and procurement rules Never incur a payment obligation over $5,000 unless you have

an approved purchase order Never SIGN A VENDOR QUOTE OR AGREEMENT!!!

You risk incurring personal liability without an approved purchase document

Find us at the Howes Street Business Center – 555 South Howes, First Floor, Suite 108