Policy Guidelines

The policy guidelines set forth in this document are intended to ensure compliance with the guidelines set by the State of Ohio Revised Code, the State of Ohio Administrative Code and the University’s Board of Trustees for all authorized University funded purchases.

These guidelines are not intended to supersede or invalidate requirements or restrictions that may be in effect in individual departments, provided they are within University guidelines. Each purchaser needs to be aware of his or her department’s policy restrictions regarding purchases.

Purchasing Department Authority
Purchasing authority is granted by the University's Board of Trustees to the Office of Business and Finance, and then delegated to the Purchasing Department through the Office of Business Operations.

Conflict of Interest
It is the responsibility of each member of the University staff and the Purchasing Department to assure that the University does not knowingly enter into any purchase commitment which could result in a conflict of interest. The Purchasing Department refers questionable situations to the Office of Legal Affairs.

Personal Purchases
The Purchasing Department does not enter into any negotiation or become involved in any transaction for purchases of a personal nature for University faculty or staff. The Purchasing Department may question requisitioned items that seem to be of a personal nature or an inappropriate expense against University funds.

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Board Resolution

The Ohio State University is governed by its Board of Trustees. The Board grants the authority to purchase on behalf of the University to the Office of Business and Finance, which delegates that authority to the Office of Business Operations where the Purchasing Department is responsible for central purchasing functions.

Board Resolutions 98-62, 2002-97 and 2008-70 define the policies that guide the purchasing process.

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Ethics

All Purchasing Department employees, and all other University personnel authorized to conduct purchasing activities, must adhere to the principles and standards of the Ohio Ethics Law. It is contrary to University policy for employees to accept any gratuities, premiums or other incentives. As a member of the National Association of Educational Professionals (NAEP), the University also subscribes to their code of ethics. Each employee involved in the expenditure of public funds is held to the highest degree of public trust and will abide by the following:

• Give first consideration to the objectives and policies of my institution.
• Strive to obtain the maximum value for each dollar of expenditure.
• Decline personal gifts or gratuities.
• Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit.
• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
• Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement or a sample of the product.
• Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.
• Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit.
• Accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions.
• Cooperate with trade, industrial and professional associations, and with governmental and private agencies for the purposes of promoting and developing sound business methods.
• Foster fair, ethical and legal trade practices.
• Counsel and cooperate with NAEP members and promote a spirit of unity and a keen interest in professional growth among them.

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Special Buying Considerations

BUY AMERICAN
The Ohio Revised Code Section 125.09 and the Ohio Administrative Code Section 123:5-1-32 requires the Purchasing Department to give first consideration to goods which are mined or produced in the United States unless:

• The purchase is inconsistent with the public interest;
• Quantities are insufficient or not reasonably available;
• U.S. produced materials are not of a satisfactory quality;
• Goods are for use outside the United States.

BUY OHIO
The Ohio Revised Code Section 125.11 and the Ohio Administrative Code Section 123.5 1-26 require the Purchasing Department to participate in the Buy Ohio Program. Bidding procedures under this program remain unchanged; however a 5% economic preference is afforded to those firms located in Ohio and bidders from "border" states, as determined by the State of Ohio. The OSU Bid Certification form is used to determine whether a bidder qualifies for the Buy Ohio program.

STATE USE LAW
Ohio Industry for the Handicapped (OIH)
Sections 4115.31 through 4115.35 of the Ohio Revised Code direct that any instrumentality of the state utilize a qualified non-profit state agency (see Ohio Industries for the Handicapped) for the purchase of products and/or services which are available from a work center employing persons with disabilities.

Ohio Penal Industries (OPI)
Section 5147.07 of the Ohio Revised Code directs that any instrumentality of the state utilize the Department of Rehabilitation and Corrections (see Ohio Penal Industries) for the purchase of products and/or services available from state correctional and penal institutions.

CAPITAL IMPROVEMENTS
A capital improvement is defined as a project with a total dollar value of $200,000 or more and/or one that is substantially architectural. Capital improvements can include, but are not limited to, goods or services such as furniture, laboratory equipment or software. Capital improvement projects involving new or remodeled buildings require review by the Offices of the University Architect and Physical Planning, Physical Facilities Resource Management, the Purchasing Department and the using department. These requests are submitted to the State of Ohio Controlling Board/Office of Budget and Management for release of funds. Any modifications to a capital improvement purchase order require preparation of a second contract encumbrance for Controlling Board approval.

INDEPENDENT CONTRACTOR VERSUS AN EMPLOYEE RELATIONSHIP
Policies for determining the difference between an employee and an independent contractor are based on case law and Internal Revenue Services (IRS) interpretation. If workers are incorrectly classified as independent contractors, the IRS can impose fines and penalties for uncollected taxes, including income taxes and social security taxes. Consequently all non-employee work arrangements should be clearly documented, and the documentation maintained in the requesting department. The following list identifies some situations where an individual could be an independent contractor.

• Infrequent guest performers or artists not affiliated with the University;
• Guest speakers or lecturers with a particular expertise brought in on a short term basis;
• Individuals providing professional services such as attorneys, accountants and other technical or administrative experts.

SPECIAL APPROVALS/REVIEW
The following purchases require the additional approval of the individuals and areas noted, and must be processed through the Purchasing Department. A direct purchase order may not be issued for these categories. Instead, enter a requisition, leaving the buyer field blank. Once the requisition has been changed to pending approval it will workflow to Central Purchasing where the special approval will be obtained. The Central Purchasing buyer will then change the requisition status to approved and will issue the purchase order.

• Advertising: (except classified advertising up to $5,000): Director, University Marketing Communications
• Aircraft: Assistant Vice President, Business Operations
• Alcohol: Appropriate Dean, Chair or VP
• Auditing and Accounting Services: Director, Internal Audit
• Master Equipment Lease: Treasurer, Office of University Treasurer
• Gas Cylinders (Hospital & Lab Gases): Director, Purchasing Department
• Insurance, Liability (non-medical): Treasurer, Office of University Treasurer
• Letterhead: Director, University Marketing Communications
• Off-Campus Leased Space: Director, Real Estate and Property Management
• Office Equipment (copiers): Senior Buyer, Purchasing Department
• Painting Services and Renovations involving Painting Services: Director, Purchasing Department
• Portable and Mobile Radio Equipment: Assistant Vice President for Public Safety
• Radioactive Material: Assistant Vice President, Environmental Health and Safety
• Renovation and Construction over $200,000: Assistant Vice President of Facilities Planning & Development
• Repair, Renovation and Construction under $200,000: Manager of Construction and Renovation, Physical Facilities
• Satellite Dishes/Antennas: Assistant Vice President of Facilities Planning & Development
• Security Alarm Systems: Assistant Vice President for Public Safety
• Signage (Interior and Exterior Building) : Campus Graphic Coordinator, Facilities Planning & Development
• Telephone, Pager Equipment and Supplies: Director, UNITS
• Vehicles: Director, Transportation and Parking Services
• Vending Services: Vending Coordinator, Purchasing Department
• Video Production over $5,000: Director, University Marketing Communications
• Weapons, Ammunition and Explosives: Assistant Vice President for Public Safety

TRADE-INS
When a purchase order includes the trade-in of equipment, a credit value is included in the purchase order total. The value of the credit will be deducted from the cost of the new equipment and so noted on the order. Purchase orders that include the trade-in of equipment must note the equipment serial number, model number and OSU inventory number. Trade-in information will be transmitted to the Office of Equipment Inventory and removed from inventory records.

• The Purchasing Department cannot issue a purchase order for the trade-in of equipment purchased by The Ohio State University Research Foundation (OSURF) without OSURF's prior approval.
• Surplus equipment should be handled through Surplus Materials Disposal

EQUIPMENT REPAIR
A requisition or on-line order for equipment repair should include the serial number of the equipment and the OSU inventory number. If shipping equipment off-campus:

• Obtain a return authorization number from the supplier; or
• Utilize University Shipping in the Receiving Department by indicating the location from which the equipment can be picked up; or
• Ship directly to the supplier, via a traceable carrier.

VEHICLES
When leasing or purchasing vehicles, complete a Supplemental Vehicle Requisition Form and a Cost Comparison Worksheet (for forms see Transportation and Parking Services). In addition, submit a requisition to the Purchasing Department. The Purchasing Department, in cooperation with Transportation and Parking Services, will obtain the final approval signatures.

*The Cost Comparison Worksheet is not required for donated or gift-in-kind vehicles.

VENDING SERVICES
Vending Services represents the University in administering all vending machine service and concession agreements and contracts. When appropriate, the Purchasing Department will develop specifications and obtain competitive bids for any proposed vending or concession service. All requests for the installation of vending equipment and concession service should be directed to the Vending Coordinator.

USE OF UNIVERSITY NAME
The Ohio State University regulates and controls the use of the University’s name and property in advertising conducted by suppliers who have provided products or services to the University. All requests by suppliers, faculty and staff for use of the University’s name or other identifying marks in their advertising materials must be forwarded to Trademark and Licensing Services for approval .

INTERNATIONAL TRANSACTIONS
Shipments from international sources are cleared by the University’s contracted customs broker who works with the United States Customs Office. Brokerage fees will be charged to the using department’s fund indicated on the purchase order.

GIFT-IN-KIND
A gift-in-kind is any non-cash, tangible gift given to the University. Examples include fine art, computers, books, animals, equipment or real estate. A Gift Review Form must be completed prior to receipt of any non-cash gift of property, regardless of its value. A Donor Intent Form (or letter acknowledging the gift), purchase order, invoice, and if applicable other documentation should accompany the Gift Review Form.

UNIVERSITY RESALE
Pursuant to the Policy on Purchasing adopted by the Board of Trustees on November 7, 1997, the Vice President for Business and Finance is requested to authorize the Director of Purchasing to purchase without competitive bidding, merchandise for resale to the general public when justified by customer product and brand preference for the following areas:

• Center on Education and Training for Employment: custom vinyl portfolio folders and related components
• College of Dentistry: gold, dental implants and teeth
• College of Optometry: ophthalmic materials
• Golf Course Pro Shop: sporting goods, apparel, supplies and related items
• OSU Team Shop: t-shirts, sweatshirts, jackets and novelty items
• RPAC Sport Shop: miscellaneous sports equipment
• Speech Language-Hearing Clinic: hearing aids and ear molds
• Student Health Services: pharmaceuticals
• University Airport: aviation fuel products, aircraft parts, supplies and related items
• Veterinary Medicine: pharmaceuticals

EQUIPMENT LEASES
Equipment may be financed using various types of lease transactions. For the purposes of determining bidding thresholds, an equipment lease is considered a service and a lease/purchase is considered goods. Leases are initiated with a requisition and are subject to competitive bidding. The Master Lease, administered through the University Treasurer’s Office, provides low interest rates for equipment purchases valued at $10,000 or more.

WAIVER OF COMPETITIVE BIDDING
The Assistant Vice President for Business Operations may waive competition and approve waiver requests when justified. Pursuant to the Policy on Purchasing adopted by the Board of Trustees on November 7, 1997, the Vice President for Business and Finance authorizes the Director of Purchasing to purchase goods and services that exceed the bid thresholds without competitive bidding.

The following are reasons for granting a waiver of competitive bidding:

• Sole Source: There is not another company that provides goods or services similar to the requested purchase; the requested goods or services are unique in design, performance or use specifications.
• Emergency: The goods or services are needed to correct or prevent an emergency health, environmental or safety hazard; for special or time sensitive events; and/or for emergency repair or replacement of existing equipment essential for daily operations.
• Economic: Responsible economic procurement relieves the University of potential additional expenses that would result from not making the purchase; use of another supplier would require considerable training, time and money to evaluate; the goods or services are being used in ongoing long-term projects; and/or the product or service offered is at a substantial discount below current market conditions and price structures.

*Note: There are several Board of Trustees resolutions in place to allow for purchases of unique requirements without competitive bid (examples of these include artwork, blood and performers).

EMERGENCY PURCHASE ORDER
The justification for emergency procurement is based on a time sensitive project or purchase. A delay in the issuance of an emergency purchase order would have adverse consequences to essential daily operations, special events, health, safety and/or environmental issues. This ordering venue should be reserved for true emergencies with potential for additional damages or expenses such as burst pipes or lightning strikes. Emergency orders:

• Require a requisition sent to the Purchasing Department;
• Are usually placed with the supplier via a verbal purchase order;
• Are followed by written confirmation to the supplier with purchase order noting "Confirming Order - Do Not Duplicate."

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Renovation/Construction Buying

The University defines construction as building maintenance, repair, renovation and new construction. These may include changes in walls, doors, electrical, plumbing, heating, venting, air conditioning systems, site work, etc.

Requisitions for a renovation/construction projects are processed after review and approval by the Assistant Vice President of Facilities Planning & Development.

PREVAILING WAGES
Chapter 4115 of the Ohio Revised Code relating to the payment of prevailing rates of wage on public improvements states that prevailing wages must be paid on projects of $20,955.00 or more. Sections 4115.0 through 4115.99 require that Prevailing Wage information be furnished to The Ohio State University, Office of Prevailing Wage Coordinator residing within Facilities Operations & Development.

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Records Retention & Disposition

This is a schedule that governs the minimum retention and final disposition of records in compliance with policies of The Ohio State University (OSU Operating Manual, Section IX) and The Ohio Revised Code. A copy of this schedule will be filed with OSU Internal Auditing.

Please note that references to "IUC Number" relate to the appropriate periods of retention and disposition as stipulated in Records Retention for Public Colleges and Universities in Ohio: A Manual (Columbus, Ohio: Inter-University Council of Ohio in cooperation with the Ohio Technical and Community College Association and in consultation with Information Requirements Clearinghouse, 1992).

Only those records designated by this document as destined for the University Archives should be transferred to the Archives according to the procedures in "Instructions for Transferring Records to the University Archives."

Records to be destroyed, as designated by this document, should be destroyed by the department. A "Certificate of Records Destruction" should be filed with the Archives two weeks prior to the destruction. Forms are available for the University Archives.

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