Procurement Services (7000) Procedures
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This section provides requirements and regulations for all procurements made for James Madison University by faculty, staff, and administrators whatever the source of funds. The requirements cover all procurements charged to University funds, including Educational and General, Auxiliary Enterprises, Sponsored Programs (Grants and Contracts) and Local/Agency Fund Accounts.
James Madison University must process all procurements within the policies and procedures set forth in the Rules Governing Procurement of Goods, Services, Insurance and Construction AND the Commonwealth of Virginia Purchasing Manual for Institutions of Higher Education and their Vendors. Both of these documents can be accessed directly at http://www.jmu.edu/procurement/departmental-guide/02.shtml.
The objective of effective procurement is to obtain high quality goods, supplies, and services, at low prices that are both fair and reasonable. Individuals must procure goods and services fairly and impartially to avoid impropriety or the appearance of impropriety. The University expects individuals involved in procurement for the University (requestor, approver, or those having responsibility for entering the orders) to exercise prudent judgment. All purchases regardless of dollar amount are easily available for public review.
.110 Un-Authorized Purchases
Purchases not made according to these procedures are subject to Non-Payment of the vendor invoice by the University. At the discretion of the Director of Procurement Services departments that do not follow the procedures are subject to having their departmental purchasing delegation removed.
.200 Control Responsibilities
.220 Office of Procurement Services
.300 Restricted Purchases
.310 Emergency Procurements
The University restricts emergency procurements to those items that are necessary to eliminate a situation that could threaten the loss of life or property or cause injury. In these situations, University employees should take the actions necessary to resolve the emergency. In an emergency, departments may procure the goods or services necessary without competitive bidding. The individual handling the emergency should contact the Office of Procurement Services, if possible, before taking any actions. The department or individual involved should prepare a full justification for the emergency purchase and the necessary procurement action. The appropriate administrative official or their designee should prepare the documentation and forward copies to the Director of Procurement Services for approval. Emergency procurement procedures may be used to purchase only that which is necessary to cover the requirements of the emergency.
.320 Procurements Performed by the Office of Procurement Services
The Office of Procurement Services is responsible for procuring goods and services valued at $5,000 or more, purchases costing less than $5,000 if requested by department, sole source purchases, restricted items, Equipment Trust Fund at $5,000 and above, and services (as detailed on the Procurement Services Webpage).
When Procurement issues a solicitation for a specific good or service, the buyer in Procurement Services will often issue the eVA Direct Order to document the award made at the completion of the competitive solicitation process. The buyer seeks approval prior to aware to ensure the price does not exceed the department's funds. Procurement will ensure the vendor receives copies of the Direct Order. Procurement Services will keep the department informed in regards to the issuing of a Direct Order. The requesting department may access the Direct Order through the eVA Procurement System. The amount indicated on the Direct Order issued supersedes the Purchase Requisition. The originating department should use the dollar amount of the Direct Order, not the Purchase Requisition, for budget reconciliation purposes.
In some situations, especially related to "on-demand" contracts, the department will enter the Purchase Requisition into eVA, including all appropriate back-up documentation and appropriate expenditure authority approvals. The Purchase Requisition, for requests $5,000 or more, will flow to Procurement Services for review and approval. In this situation the department is responsible for ensuring the vendor appropriately receives the orders.
.321 Sole Source Purchases
Sole source procurements costing $5,000 or more require a written justification. Departments requesting sole source purchases costing $5,000 or more should prepare an electronic (eVA) Purchase Requisition and attach a justification using the standard form provided by Procurement Services (see “FORMS” on the Procurement Services website) for the sole source request.
.322 Restricted Purchases
The Office of Procurement Services must procure restricted items no matter the cost of the goods or service. The following are restricted items not allowed for purchase by a JMU department:
Other restricted items may be added at any time. JMU Procurement Services updates the most up-to-date list on its website (click here: Procurement - restrictions).
.323 Recurring Procurements
The University must competitively procure goods and services that are anticipated to be recurring in nature if the onetime cost exceeds $4,999.99 or accumulated cost exceeds $50,000 over a twelve month period. The Procurement Services Department requires an electronic eVA Purchase Requisition and will complete the applicable procurement process on behalf of the department. Frequently, recurring purchases of goods or services will result in a term contract being negotiated on behalf of the University; however, Procurement Services may also recommend the use of an existing cooperative contract rather than soliciting a new agreement.
.330 Acquisition of Property
The Office of Real Property is responsible for acquiring buildings and land for use by the University. University departments should contact that office before making any arrangements to rent, lease or purchase land or buildings.
.340 Capital Outlay Projects
The Office of Facilities Planning and Construction is responsible for overseeing Capital Outlay, Construction and Professional Services projects. University departments should contact that office concerning all capital outlay (construction) projects. Construction projects that are defined as "Capital Outlay” typically cost greater than $2,000,000.00. The Office of Procurement Services is responsible for handling the procurement process of awarding a contract for capital outlay construction as well as purchasing furniture, furnishings and equipment for installation within a capital outlay construction project.
.350 Printing and Publication Services
When printing projects are $5,000 or more and cannot be part of an existing printing contract or handled through the JMU Copy Center, the Office of Procurement Services must competitively solicit the service. Depending upon the complexity and dollar value of the project, this process may require from 3 to 90 business days. After determining the vendor to receive the award, the Office of Procurement Services will contact the requesting department and request a completed eVA Purchase Requisition for the accepted/negotiated cost.
The University provides printing services including envelopes, business cards and stationary through the Copy Center.
.360 Duplicating Services
The University provides copying services at various locations on the campus and all departments are highly encouraged to use the on-campus copy centers. The James Madison University Telephone Directory lists the various locations under "Copy Centers."
.400 Delegated Purchasing Authority
The University has delegated certain procurement authority except "Restricted Purchases," to Departments. The University expects these departments to comply with purchasing regulations and exercise prudent judgment when procuring goods, supplies, and services. Employees who make purchases must first obtain approval of the departmental approving authority for the Department ID charged. The University does not require departments to accept delegated purchase authority. When departments do not accept delegated authority, the Office of Procurement Services will perform the procurement function. Departments, not accepting delegated authority, must complete and submit an eVA Requisition for Purchase for all purchases. Departmental delegation can be revoked, at the discretion of the Director of Procurement Services, due to repeated or severe non-compliance to JMU and Commonwealth Procurement Policies and Procedures.
.410 Purchases Costing $4,999.99 or less
Departments may procure goods and services, except "Restricted Purchases, valued at $4,999.99 or less through the eVA Procurement System. The University prefers that departments use the Small Purchase Charge Card (SPCC) for all vendors who accept the card. On-line auctions (example: e-bay) is allowed when all rules governing Procurement procedures and Accounts Payable payments are met. Accounts Payable will audit each of these transactions for compliance.
Purchases may be made through the Internet using the SPCC. All purchases of this type must be recorded in eVA as a confirming order. The department should be sure that the vendor has a secure Socket Layer (SSL) Version 2.0 or greater. To ensure that the vendor has a SSL, the Address Window must start with https://. Information about the vendor's security certification is available under Help on the browser tool bar. This may not occur until the payment information is requested.
The individual making the purchase must request a vendor invoice, or an itemized receipt. For purchases through the Internet, print a copy of items purchased after the order is placed and retain it for departmental records and reconciliation of monthly SPCC purchases. Ideally, the invoice or itemized receipt will be electronically attached to the eVA order.
Employees should not use cash or a personal credit card except in an emergency, when no other method of payment is accepted.
.420 Departmental Direct Orders (DPOs) for Purchase Excludable from processing in eVA Procurement System
The DPO (word document found on Procurement Web Site) is to be used for items when the department and/or the vendor needs paper documentation of an order that is not required to be entered into eVA (it is an eVA exclusion). eVA may also still be used to process this type of order, using the "X02 PO Category Code.
The department head is responsible for the proper administration of the DPO to ensure proper procurement practices and for ensuring that there are sufficient funds in the departmental budget to cover the expenditures of the DPO. A DPO is only appropriate when the item is appropriately excluded from eVA and the total order is under $5,000. Orders $5,000 and over must be processed through Procurement Services regardless of any eVA exclusion.
For all invoices without an eVA DO number shown on it, the department must complete an Accounting Voucher to initiate payment.
Before completing the DPO form, refer to subsection .300 "Restricted Purchases," and to restrictions printed on the DPO form. Individuals making purchases should ensure that the vendor excludes sales tax, as the University is tax exempt.
.430 Delegated Purchase Authority
The University has delegated authority to departments to purchase goods or services costing $4,999.99 or less through the eVA Procurement System via an eVA Direct Order (DO) or Purchase Card Order (PCO). This DO/PCO may be used by university departments to purchase goods and services directly from a vendor, if the total cost, including freight is $4999.99 or less with the exception of the items listed under "restrictions." Orders shall not be "split" to stay under the $4,999.99 or less amount. Split ordering is prohibited and can result in the departmental delegation being revoked or suspended.
To complete a DO/PCO purchase through eVA, less than $5000, the department should obtain quotes/proposals from catalogs or directly from the vendors. Procurement regulations require only a quote when using the DO/PCO for orders $4,999.99 or under. It is preferred that Departments obtain one quote from a Micro-Small, Small business, Woman-owned or Minority-owned business (certified through the VA Department of Small Business & Supplier Diversity). After identifying the best source, the department may complete the DO/PCO and place the order directly with the vendor. When departments place orders by telephone, they should clearly mark the DO, "CONFIRMING ORDER - DO NOT DUPLICATE" and show the name of the vendor's contact person and basic information to explain the purchase. Confirming orders are prohibited for orders over $4,999.99. The department may mail or hand-deliver the DO/PCO to the vendor for orders not placed by telephone or not automatically delivered electronically through eVA.
While the official Departmental Delegation is $4,999.99, departments may receive one quote/proposal from a Micro-small, Small, Woman-owned, or Minority-owned business (certified by the Virginia Department of Small Business & Supplier Diversity) that is also an eVA Self Registered Vendor up to $10,000. The department will process the requisition in eVA (prior to any notification of award to the vendor), including any quote/proposal received. Procurement Services will then verify the vendor is certified with VDSBSD and is an eVA Self Registered vendor. If both criteria are met, Procurement Services will approve the order without the need to seek further competition. If both criteria are not met, Procurement Services will follow internal normal procedures which may include competitively soliciting the goods/services. Confirming orders or split orders to remain under the $10,000 limit are prohibited.
.500 Purchases from Campus Facilities
University departments may purchase a variety of supplies from the Campus Bookstore.
.520 Postal Services
Departments may purchase postal stamps directly from Postal Services.
.530 Catering and Special Events
Departments shall request catering services by contacting the Catering and Special Events office.
.540 Facilities Management
Departments may request various services from Facilities Management by submitting a Customer Request through the AiM system. Facilities Management requires a Work Order before providing services. Departments may contact Facilities Management to determine what services are available.
Employees should contact their Building Services Coordinator for building maintenance requests for the building where they are located.
.541 JMU Warehouse Complex
The JMU Warehouse Complex maintains stock items such as cleaning supplies and light bulbs. A list of the stocked items is available from the warehouse. Departments may request items by completing the Warehouse Requisition Form at the Warehouse window.
.550 Computer Repairs or Assistance
Departments should contact the Help Desk (Telephone 83555) to request computer repairs or assistance. The Help Desk requires the ESN Number of your computer to issue a work order.
Requests for telephone services such as, to move or change an existing phone, obtain a telephone or request repairs, requires a memo or an E-mail describing the services requested. The memo should include an Department ID to charge for the services and the signature of the approving authority for the Organization designated.
.600 Goods and Services Exempt From Procurement Documentation
♦ Student Scholarships - The Office of Financial Aid and Scholarships must approve all scholarships.
♦ Moving and Relocation Services (See Section Number 5010, Moving & Relocation)
♦ Travel related expenses (See Section Number 4215, "Travel")
The following are allowable, excludable items/categories that do NOT need to be procured through the eVA Procurement System. Items listed in BOLD DO NOT QUALIFY for the exclusion. Every attempt was made to list these items with clarity and relevance to typical JMU purchasing of goods. Should you need further explanation of these items/categories or assistance in determining whether an exclusion is appropriate for your purchase, you may contact Procurement Services at 568-3145.
JMU was also approved by DPS August 9, 2004 for the following eVA exclusions through June 30, 2005, or until revoked by DPS, whichever is later:
.700 Processing Procedures
.710 eVA Procurement System
.712 Office of Procurement Services
.713 Office of Accounts Payable
.720 James Madison University eVA Purchase Requisition
.722 Office of Procurement Services
.800 Forms Preparation and Submission
.810 Direct Order (DO), Purchasing Card Order (PCO) and Paper Form of Department Purchase Order for eVA exclusions only
.811 Required, eVA Procurement System
The eVA generated DO/DPO is required for all non-excluded eVA goods and services. An eVA generated DO/PCO is also an option for any excluded good or service when the vendor requires a purchasing document.
The Departmental Purchase Order (word document, found on Procurement Services website (www.jmu.edu/procurement) may be used ONLY for excludable eVA goods and services totaling $4,999.99 or under.
.812 Where to Obtain Blank Forms
The hardcopy DPO for excludable eVA goods and services is a Word document available online.
.813 Number of Copies
Follow procedures on DPO for copies.
.814 Where to Send Completed Copies:
A (DPO) or (PCO) generated through eVA will normally be electronically sent to the vendor and copy transferred to the eVA buyers watch box which is monitored by Procurement Services. If the vendor does not accept electronically orders, the Department is responsible for being sure the DPO or PCO reaches the vendor via facsimile transmission or via email (this process should be rarely used; only in the case where the item(s) being purchased is under $4,999.99 in total (if over the user must work directly with Procurement Services), is excluded from entry into eVA (see Section .600) and a vendor requires a formal purchase order).
.815 Forms Preparation Instructions
Hardcopy DPO Preparation
.820 James Madison University Purchase Requisition
Most campus department will use the eVA system to create a purchase Requisition (PR) with electronic approvals.
Departments without delegated purchasing authority should use the form for any procurement that an eVA requisition has not been submitted.
.822 Where to Obtain Blank Forms
Blank forms are available from the Office of Procurement Services.
.823 Number of Copies
Submit the original and three copies. Retain part five (goldenrod copy) for departmental records.
.824 Where to Send Completed Forms
Send completed forms for items or services costing more than $4,999.99 to the Office of Procurement Services. Departments without delegation shall forward completed forms for all procurements regardless of dollar amount to Procurement Services.
.825 Forms Preparation Instructions
Following are detailed instructions for the preparation of the Purchase Requisition form. Enter the following information only; all other blocks should be left blank.