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Buying for the University
Every employee at The Ohio State University plays an active role in the
purchasing process. Whether you're a professor requesting a particular
text book, or the student employee that enters an on-line requisition,
or an administrative assistant who makes arrangements for delivery with
the supplier, everyone has an active role in making purchasing decisions
on behalf of the University. Because that role affects virtually every
employee, a concerted effort to follow certain steps is required in order
to ensure the purchase of the best quality goods or services at the best
price.
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STEP 1 |
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Request or Need for Goods/Services |
- Is there a Vendor in mind?
- Is there a Vendor that is firmly recommended/requested?
If yes, proceed to Step 2
If no, consider the following:
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Have all methods of procuring the needed Goods/Services been considered? |
Purchase Order - A purchase order is the offer of a contract between the University and an off-campus vendor for the purchase of goods/services.
- Delegated buyers need to confirm that the cost of goods/services are within allowable buying limit of $5000?
- If the cost of goods/services is over $5000, an on-line requisition should be created.
- Is a certain type of PO needed to make the purchase more efficient? (ie: Blanket)
Purchasing Card - Purchases made with the Purchasing Card provide expedited payment to the vendor, uphold our tax-exempt status and eliminate the use of an employee's own funds.
- Does the vendor selected accept the University's Purchasing Card?
- Is the cost of the goods/services within the allowable limits of your Purchasing Card?
Convenience Order - The Convenience Order List/Guidelines is a paper form that designates the items that can be purchased without the creation of a requisition or purchase order.
- If the goods/services being purchased are on the approved list [Convenience Order List] and within any specified limit, proceed with submitting the invoice or FAS12 with the appropriate X# directly to Accounts Payable.
100W (internal OSU vendors) - Using the 100W Form is a practical and easy method of procuring goods and services from one University department for another (For example: Stores, UniPrint, Cop-Ez, Transportation & Parking Services and Facilities Operations and Development). For more information about the 100W and its proper use, refer to the Policy on Internal Control Practices.
*Important Note: When possible, efforts should be taken to avoid making University related purchases using an employee's personal funds.
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STEP 3 |
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Are the goods/services being purchased within the appropriate bid limits?
($25k for goods and $50k for services) |
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If yes, proceed to Step 4
If no,
- Submit a Waiver Form for approval (select the appropriate justification criteria to waive the bid process)
- Commence efforts with Central Purchasing buyer to send out for bid (if unable to justify waiver of bid)
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Is there any possibility that any Ethics laws could have been violated in orchestrating the purchase of the needed goods/services? |
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If no, proceed to Step 5
If yes,
- Return any personal gifts or gratuities provided by the vendor
- Remove oneself from a direct connection with said purchase if vendor could be relative, close friend (etc.); initiate the transfer of the purchasing responsibilities to another buyer
- If uncertain, refer to Ethics Law information shown on Purchasing’s website.
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Is there a contract or service agreement associated with the purchase of the needed goods/services? See the options available through the ibuy Procurement Gateway |
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If no, proceed to Step 6
If yes,
- Send copy of the contract or service agreement to Purchasing for review and approval
- Do not sign a contract or service agreement on behalf of your department or the University. The Purchasing Department has been designated by the Office of Legal Affairs to review and approve all purchasing related contracts or services agreements. Regardless how simple the contract may appear, do not sign it…you may become personally liable for the contract provisions.
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Will there be sales tax associated with your purchase? |
If no, proceed to Step 7
If yes,
- Remind the vendor of the University’s exempt status (The Ohio State University is exempt from Ohio sales and use tax). Although not required by law, Blanket Exemption Certificates may be provided to vendors in order to document the exempt status of the University. Purchases made by the University outside of Ohio, may not be exempt from another state's sales and use tax. Please review the University's tax policies.
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Initiate purchase based on the steps from above. |
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Requisition Process
A requisition identifies goods or services to be acquired from an off
campus supplier. The requisition is sent to the Purchasing Department
by direct entry into the Financials System or on a manual requisition
form 1303 (see Purchasing Forms).
In order to ensure your requisition is processed in a timely and accurate
manner?
- Plan purchases in advance.
- Enter your requisition via the Financials System.
- Group similar items on a single requisition.
- Allow ample time for suppliers to provide large quantities or custom
items.
- Be aware that requests for goods exceeding $25,000 and services
exceeding $50,000 may be subject to competitive bidding.
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Tip 1: Requests for goods or services available from
University departments should be obtained by a Peoplesoft
electronic requisition or an OSU form 100W (available through
Stores catalog
using item #53710).
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Optional requisition information that might be included:
Departments are encouraged to provide a suggested supplier name and address.
Purchasing Department buyers will work with the department if an alternate
supplier offers a better value (e.g. contract pricing) or helps to meet
minority program goals. Additional information that may be included in
the body of the requisition includes:
- Date and from whom a quote was received
- Special delivery requirements
- Reference to attachments
- FOB point and who pays freight
Attachments that should accompany a requisition:
Attachments can help clarify the goods or services to be acquired. Examples
include:
- Additional specifications
- Written quotation or service report
- Supplier’s order form
- Contracts, leases, purchase, license, or maintenance agreements
(require Purchasing Department signature)
- Drawings, plans or schematics
- Products samples or literature
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Tip 2: Attachments to paper requisitions should be
stapled to the requisition. Departments that create requisitions
on-line should forward attachments to the Purchasing Department,
clearly identifying the department requisition number.
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Purchase Order Process
A purchase order is the offer of a contract between the University and
an off-campus supplier.
An on-line purchase order number contains ten digits:
- First five digits are generally the department number
- Sixth digit indicates the budget year
- Remaining alpha-numeric digits are generally assigned sequentially;
eg. A001, A002, etc.
The purchase order is generated and distributed electronically to all
procurement departments including central Receiving, Accounts Payable
and Equipment Inventory (Asset Management). As each procurement department
updates the purchase order, this activity can be viewed through the on-line
procurement Master Inquiry panels.
The original, signed purchase order is generally faxed electronically
to the supplier. The purchase order can also be printed locally for mailing
to the supplier.
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Delegated Buying
The authority to purchase goods and services on behalf of the University (not to exceed $5,000.00) can be delegated to a designated Buyer of a College, by the director of Purchasing, subject to certain responsibilities and restrictions.
For more information on how to become a Delegated Buyer:
- Contact your fiscal officer to seek the necessary departmental approvals;
- Complete the required Procurement System Training (Requisition 1, 2 and 3; Purchase Order 1 and 2; and Procurement Inquiry & Approval);
- Set-up security access to the Financials System; by requesting your Senior Fiscal Officer to submit an email request to the Data Security Team at OIT (access@osu.edu) as a new system user, you will receive an informational packet with your log on and temporary password from OIT. As an existing user, you will receive an email notification that a change has been made to your operator I.D.
- Sign and submit the Memorandum of Understanding to the Purchasing Department
Bid Process
The Purchasing Department has the responsibility to solicit formal bid
inquiries from two or more suppliers when the estimated dollar value of
the requested purchase is $25,000 or greater for goods (equipment, materials,
and supplies) or $50,000 or greater for services, unless the items can
be obtained under existing contracts. These competitive bid thresholds
are established by the University's Board of Trustees Resolution 98.62.
The Purchasing Department may competitively bid any request, regardless
of the dollar amount, when it best serves the University.
Bid status is shown on the Financials System requisition activity panel.
Generally, the buyer responsible for processing your request will contact
you in preparation for bidding. Each bid has a unique inquiry number.
Generally the number is comprised of the department requisition number
followed by three alpha characters. The three alpha characters indicate
the buyer responsible for the bid.
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RFQ (also called a bid or a price inquiry) - a document
provided to bidders requesting prices for goods or services.
RFP - a request for bidders to provide a customized
response, often for services or goods that include a service
element. Responses may include pricing,
enhancements, implementation plan and timeline.
RFI - a request issued to suppliers within the scope
of a specific commodity or market to determine the viability
of a concept. No award is made from an RFI.
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Reimbursements
A reimbursement is the paying back of money that has been spent on behalf
of the University. Reimbursements differ from refunds in that a refund
is the paying back of money that has been paid to the University.
All reimbursements and refunds must be processed via the Payment Request Online System (PROS). Original receipts and payment requests should be kept in departments.
*No employee may approve his or her own reimbursement request. The approving
authority must hold a higher University rank than the person being reimbursed.
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Note: This reimbursement information is only a brief overview.
Detailed information regarding reimbursements, including situations related
to travel, can be found at the following sites:
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Invoicing and Payment
Invoices
An invoice is a billing document that provides itemized descriptions
and prices for the goods and/or services a vendor has provided. Unless
otherwise stipulated on the purchase order or contract, all invoices with
should be submitted directly to the Accounts Payable Department. Ohio
sales and use tax is not applicable. Payment may be delayed if invoices
or packages do not reference a University Purchase Order number.
Prepayment
Under policies established by the Auditor of State, prepayment for goods
and services is not permitted except for the following items:
- Pre-registration for conferences
- Transportation
when payment is required at the time of reservation
- Group travel arrangements when expenses cannot be pre-determined
- Credit card use for the above
- Magazine subscriptions
- Memberships
Non-PO Voucher (Convenience Order)
A Non-PO Voucher payment was established to permit Accounts Payable to
make payments for specific goods or services without using the encumbrance
process. Payment for these goods or services can be accomplished by submitting
an OSU Request for Payment Form or vendor’s invoice directly to Accounts
Payable (a purchase order is not required). See the Convenience Order List for approved options. The Non-PO Voucher payment
process is for internal University use only.
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