Purchasing Online Training - Quick Guide

The following is a quick reference guide to summarize and be used in collaboration with the online purchasing training modules. For additional information, click on the links below to review a glossary of terms.

Purchasing 101 - The Basics

Overview of the Purchasing Process

• Allowable Expenditures
• Purchasing Authority
• Limits of Authority
• Unauthorized Commitments

Intended Purpose

• Test of Propriety for Use of University Funds

Determine What You Need to Buy

• Goods
• Services
• Potential Risks
• Risk Controls

When and Where to Make Your Purchase

• Internal Suppliers
• External Suppliers
• New External Suppliers
• Supplier Assessment
• Competitive Bids
• Negotiations with Suppliers

How to Make Your Purchase

• Ordering Methods

1. Purchasing Card
2. Purchase Order
3. Purchased Order with Negotiated Contract

• Pre-purchase Reviewes and Approvals
1. New Technology
2. Capital Project Review
3. Equipment Purchases > $5,000
4. Funded by Grants

Receive and Pay

• Track Shipment
• Receive Goods and Services
• Payments

1. With Purchase Card
2. With Purchase Order
3. With Direct Pay

Evaluation

• Evaluate Transaction

1. Objectives Met
2. Satisfied with Supplier
3. Recommendations from the Supplier

Purchasing 102 - Contracts for Purchases

Overview and the Basics of Using Contracts

• Standard Purchase Order (P.O.)
• Negotiated Contract
• Contract Elements

1. Clear Definitions
2. Specify Deliverables
3. Liability Issues
4. Insurance Coverage
5. Additional Documents

Business Issues - Consider the following business issues

• Intended Purposes
• Payment Schedules
• Service Limitations
• Length of Contract Terms
• Risks

Finalizing and Executing the Agreement

• Department Approvals
• Additional Approvals
• Signing the Contract - Must have authorization according to the Limits of Authority Board Policy 2.10.030.
• Contract Review Timeline

Contract Administration - The following are the department's responsibility

• Retain original contract
• Verify contractor complies with the terms and conditions of the agreement
• Verify all services have been received to specification prior to authorizing payment
• Ensure renewal documentation is collected