THE UNIVERSITY OF NORTH CAROLINA AT ASHEVILLE
POLICIES AND PROCEDURES MANUAL
No. 22
Date 8-24-98
Page of 8
Approved
Subject: UNIVERSITY PURCHASING
This policy (as mandated by the General Statutes of the State of North
Carolina, the North Carolina Administrative Code and the North Carolina
Purchasing Manual) is to guide in procuring supplies, materials, services
and equipment.
The University Purchasing Department is located in Phillips Hall. Office
hours are 8 a.m. to 5 p.m. Monday through Friday. Requests or inquiries
regarding purchasing procedures should be addressed to this department
(Ext. 6100).
Except for the Bookstore (merchandise for resale) and the Library (books
only), the Purchasing Department is the only campus office authorized to
issue university purchase orders. Purchases originate departmentally with
a purchase requisition. The department head should approve all
requisitions. This approval indicates the item requested is a necessary
departmental expense, and budgeted funds are sufficient to cover the costs
of the purchase. (Authority to approve charges against a department's
budget may be delegated by the department head to subordinates;
however, this authority does not relieve the department head of
responsibility for the allotted budget.) Completed requisitions should be
forwarded to the Purchasing Department. Purchasing Department
personnel will ascertain compliance with state purchasing regulations and
procedures. Purchasing staff will verify each requisition for accuracy,
enter federal identification numbers, commodity codes, certification
numbers and other essential information. Availability of funds is verified.
If funds are sufficient, an approved purchase order will be issued; if funds
are insufficient, the requisition will be forwarded to the budget officer or
returned to the department, as appropriate. The original purchase order is
mailed to the vendor; copies are forwarded to accounts payable and the
requisitioning department. The Purchasing Department retains a file copy
for five years.
Shipments are delivered to central receiving whose personnel log all
receipts and complete a receiving report. When delivery is made to the
ordering department the log and receiving report are signed by
departmental personnel. Central receiving retains one copy of the
receiving report, leaves a copy with receiving department and forwards
one copy to accounts payable. When accounts payable receives the
receiving report, the copy is attached to the invoice and the invoice
processed for payment. If receiving reports are not available, accounts
payable staff use the e-mail receiving system to obtain approval for
invoice payment.
Types of purchases:
1. State Contract Purchases--The University must use state contracts
negotiated by the Purchase and Contract Division of the North
Carolina Department of Administration in Raleigh. The University is
required to purchase from the contracting vendors needed items
included in these state contracts. Without specific approval from
Purchase and Contract Division, it is not permissible to purchase from
non-state contract vendors items similar to those on contract and
designed to perform the same functions. This is true, even if a lower
price quote can be obtained from another source. Paragraph 58 of N.
C. General Statute No. l43 states "if purchases are made in violation of
the rules and regulations of the state and/or agency, the persons
responsible may be held personally liable for any financial
commitment made." Since the University is prohibited from assuming
any financial responsibility, purchases charged against university
funds that are not made in accordance with state purchasing rules and
regulations will be the personal responsibility of the individual
submitting the requisition or placing the order.
As a usual rule, state contract purchases require only a completed
requisition to the respective vendor, regardless of amount; however,
there are several exceptions, among which are the following:
(a) Carpet purchases of $65,000 or more are referred to Purchase and
Contract. (Carpet purchases exceeding $2,500 must be inspected
by the Standards and Inspection Division, Raleigh.)
(b) Purchases of venetian blinds exceeding $35,000 are referred to the
Division of Purchase and Contract for bidding.
(c) Classroom, general purpose chairs and tables, commercial dining
tables and related items exceeding $65,000 must be referred to
Purchase and Contract.
(d) Upholstered seating, etc. exceeding $75,000 must be referred to
Purchase and Contract.
(e) Some contracts require minimum orders, such as miscellaneous
office supplies (minimum of $50 per single order). Agencies are
authorized to purchase from non-contract suppliers for orders
totaling less than the required minimum.
2. Non-State Contract Purchases
A. Open market goods and services:
(1) Any non-state contract purchase exceeding $500 must be by a
purchase order. Non-state contract purchases under $500 do
not require a purchase order, although this does not preclude
the issuance of a purchase order. These purchases may be paid
through accounts payable. Buyers should forward a completed
check request form, bearing an authorized signature and
account number, together with a sales slip or invoice to
Accounts Payable.
(2) Periodical subscriptions are processed by accounts payable.
Dues, registration fees, memberships, subscriptions, catering,
and similar items do not require a purchase order but may be
processed through Accounts Payable on a check request form.
Travel expenses are processed on a travel reimbursement form
by CI/travel office.
(3) Non-state contract purchases less than $2,500 do not require
competitive quotations. The department head should ascertain
the best quality, price and source for these items. (Even in the
case of a waiver of competition, if time permits, a written
request for quotation should be sent to the sole source.)
(4) For non-state contract purchases from $2,501 to $5,000
departments must furnish at least three oral, telephone, written,
fax or current catalog quotations. The competitors' names and
amounts quoted should appear on the purchase requisition. (If
electronically, under PR Text on Screen 251.)
(5) Non-state contract items between $5,001 and $50,000 require
formal written quotations. The requesting department should
send specifications, purchase requisition, account number to be
charged, justification and other necessary information to the
Purchasing Department. The Purchasing Department will
distribute "Requests for Quotation" to vendors, receive their
responses and advise the requesting department of the results.
This process usually takes about two weeks, depending on the
complexity of the purchase.
(Purchasing is now utilizing the Interactive Purchasing System
(IPS) link with the Purchase & Contract Division to post bids
worldwide in an effort to obtain broader competition; hence,
anticipated lower pricing.)
(6) The General Statutes of the State of North Carolina require the
solicitation of formal bids by the State Purchase and Contract
Division for non-state contract items costing $50,000 or more.
The ordering department forwards requisition, specifications,
drawings, names of potential vendors, sole source justification
and any pertinent information to the Purchasing Department for
processing. Purchase and Contract issues Invitations for Bid,
receives bids and forwards bids received to the University for
review. The ordering department reviews bids received and
makes a recommendation to the purchasing director. All bids
are returned to Purchase & Contract. The Board of Award
reviews the director's recommendations and certifies the
purchase. A UNCA purchase order is then issued. This
procedure takes four to six weeks. (It is not permissible to
divide requirements to keep the total under $50,000 and avoid
the formal, advertised bidding procedure.)
(7) Printing requirements exceeding $50,000 also must
be forwarded to the Division of Purchase and Contract for
bidding.
Public funds are not appropriated to provide luxurious (4-color)
levels of quality. Since the use of multiple colors significantly
increases the cost of printed materials, valid justification must
be provided and permission obtained before purchasing
"deluxe" printing services. (This provision does not apply to
non-state funds.)
Design work is a separate item and may not be combined with
printing. Printing is bid after design and specifications are
complete.
B. Office Supply Purchases--Central stores in the Facilities
Management Department maintains an office supply inventory of
approximately 400 basic items. These may be ordered directly
from Central Stores by submitting an office supply requisition.
Office supply items not stocked by Central Stores are ordered
through the Purchasing Department following procedures
previously outlined.
C. Office Supply Credit Card--A major office supply credit card is
available in Purchasing for the convenience of departments
needing to make local purchases of less than $50, exclusive of tax,
for state contract items, and $500, exclusive of tax, for non-state
contract items. Departments should make sure such items are not
stocked by Central Stores, since items stocked by Central Stores
should not be purchased by credit card or check request. Call
ext. 6100 for further details.
3. Other Purchasing Considerations
A. Blanket Purchases--When the need arises to purchase small items
on an ongoing and frequent basis, the department should submit a
purchase requisition to the Purchasing Department, specifying the
category of items required, the names of persons authorized to
make these purchases, the term or time frame within which
purchases will be made, and the monetary limitation which will be
applied to each order. The ordering department is responsible for
keeping a record of deliveries, expenditures and term of the
purchase order.
B. Surplus Property--If a department has surplus property, the
department head, or designee, shall complete a service request
(work order) and forward to Facilities Management to have the
item(s) removed to the warehouse. If the item(s) to be removed
bears a UNCA blue and white inventory sticker, a Transfer of
Fixed Asset form must accompany the service request.
The warehouse manager will determine if "surplus" items are
usable and will notify the purchasing director to advertise them in
Monday Morning for potential retrieval by other campus
departments. If there is a campus need for inventoried surplus
items the warehouse manager will transfer the item to the
requesting department and forward the completed Transfer of
Fixed Asset form to the fixed asset accountant for removal of
equipment from one department and transfer to another. If no
campus need exists, the purchasing director will submit a surplus
property listing to the NC Surplus Property Agency in Raleigh for
statewide advertising and sale.
For further information about the transfer or disposition of fixed assets, see
UNCA Policy and Procedures Manual No. 23.
C. Purchases of Equipment Requiring Installation--When
submitting requisitions for equipment which must be expertly
installed, i.e. boilers, food service equipment, mechanical and other
equipment which might require expertise from Facilities
Management or other personnel, the requisitioning department
should include this information on the requisition. The Purchasing
Department will request Facilities Management to review any
orders requiring utility connections or other adaptations.
D. Emergency Purchases--The Purchasing Department is
particularly attuned to purchases and services of an emergency
nature. Fires, broken windows, leaks, erosion, fallen trees, etc. fall
within the purview of emergencies and requisitions can be
processed immediately. It is the responsibility of the department
head to notify purchasing personnel as soon as the emergency is
realized. Items urgently needed for educational programs in
progress will be given immediate action as soon as Purchasing is
notified of the exigency. Pursuant to State regulations, so-called
"emergency" orders for supplies, equipment or services which have
been delayed by lack of planning, inaction or negligence are not to
be considered as "emergencies."
E. Special Circumstance Purchases--Certain circumstances may
dictate the need to take advantage of special savings to the
University (or time constraints may prevail) which are not covered
within these procedures. Each circumstance may be different or
unique. If a situation such as this should arise, contact the
Purchasing Department for special condition/situation approval.
Purchasing will forward to the department a "Preapproval" slip
which is to be attached to a check request, along with sales slip,
credit card receipt, invoice, etc. Such documentation for payment
or reimbursement should be sent to Accounts Payable for
processing.
F. Service Contracts--If a department wishes to obtain a service or
maintenance contract exceeding $2,500, the department must
prepare a task description of the services and the desired results.
Task descriptions shall contain the following:
1. The date(s) of service. [The contract shall not be for more than
three (3) years, including extensions and renewals, without the
prior approval of the State Purchasing Officer.]
2. Detailed specifications or type and level of work required.
3. What UNCA will furnish.
4. What the contractor will furnish.
5. The method, schedule and procedures for billing and payments.
6. Other terms and conditions, specifications or procedures
bearing on the conduct of the work.
Upon completion of the task description and desired results, the
department shall seek competition, where available, for
expenditures over $2,500. For expenditures over $2,500 through
$5,000 the department may obtain telephone or written quotations.
If over $5,000, Purchasing must solicit competition.
G. Cellular Telephones--The University will issue limited
authorizations for employees to use cellular telephones based on
work assignments requiring mobility in job performance.
Authorization to procure a cellular telephone must be approved in
writing by the respective vice chancellor. Use of a cellular
telephone is authorized for business calls only, and when the
employee is away from his or her regular duty station. They are
not to be used in place of regular telephones. The university
telephone service is the primary voice communication service.
Cellular telephones may be used only when regular service is not
accessible to the employee in the performance of work
assignments. No personal calls may be made on cellular
telephones except in emergency situations. When an emergency
situation arises and a personal call is made, it is the employee's
responsibility to make immediate payment of the charge and notify
the supervisor of the charge and the nature of the call. Monthly
billing statements must be maintained by the department for audit
purposes, since periodic audits will be made of cellular telephone
charges. Call ext. 6100 for further details.
H. Bookstore Purchases--Departments may not purchase from the
Bookstore unless one of the following exceptions applies:
1. Textbook purchases;
2. Small ticket purchases of in-stock UNCA emblematic
merchandise; large quantity special order emblematic orders
are placed through Purchasing;
3. "Emergency" purchases of non-state contract, non-Central
Store merchandise under $25 in value; or
4. Purchases by UNCA Foundation account or Agency accounts
beginning with the digit "9".
General:
1. Purchasing personnel can provide information regarding state contracts
and catalogs from vendors which are available to help with purchasing
requirements. In particular, purchasing personnel can instruct
departments on accessing state contracts electronically.
2. Any purchase order issued by the University must be for official use
only. No personal purchases for the benefit of employees are
permitted.
3. With prior approval of the Surplus Property Agency in Raleigh,
equipment trade-ins are permitted.
4. Every reasonable effort shall be made to avoid making purchases from
or through employees of the University. Any purchase from a UNCA
employee must be approved by the North Carolina Secretary of
Administration.
5 With the exceptions of Agency Funds and UNCA Foundation Funds,
all funds (special, federal, local, gifts, bequests, receipts, fees, state-appropriated, etc.) used for the purchase of equipment, materials,
supplies and services shall be handled under the provisions of Article 3
of Chapter l43 of the General Statutes and in accordance with
procedures established pursuant thereto by the Division of Purchase
and Contract. (If a gift or donation is made for the purchase of a
specific item(s), the conditions imposed by the donor would prevail.)
6. Should a vendor have a complaint against the University, that vendor
should express its dissatisfaction in writing to the director of
purchasing. The director will personally meet with the protesting
vendor to determine if the vendor's complaint can be reconciled
without further action; if not, then the vendor may meet with the vice
chancellor for financial affairs to settle any remaining differences.
Should all of these efforts fail, vendor's complaint will be forwarded to
the chancellor for resolution.
University Purchasing Department personnel are committed to providing
the campus community with procurement assistance, information and
services. If further information is required, or if purchasing problems
arise, call 6l00.
Return to the UNCA Policies and Procedures page
Last modified: 03 December 1999
Comments to: arthomas@unca.edu