Yearly_Purchasing_Training_December_2022.pptx

Purchasing Procedures & Policies Training December 2022

How do I find information about Purchasing?

Both Workday and the Intranet Pages can be accessed through CougarWeb and provide information from policies and procedures to Workday Guides and Staff Information.

Contact the Staff person that is listed for the department or commodity on the Purchasing Intranet site.

(http://inside.collin.edu/purchasing/staff.html)

Who do I contact in Purchasing?

If related to a specific purchase, contact the buyer for that department or commodity listed on the Purchasing Intranet site or the buyer that placed the order.

To expedite a requisition in the Purchasing Approval queue, contact Karen Bell or Jennifer Wright (only in their absence, contact Cindy White).

Workday Training, contact Katherine Rios.

Who do I contact in Purchasing?

For review of an agreement not associated with a requisition, contact Kathy Brown.

For vendors requesting a tax exempt form or requesting a credit application be filled out, contact Yvette Talley.

For access to Workday, contact Help Desk.

For purchases related to furniture and equipment for new campuses, contact Emily Adams or Jill Stine.

How do I access Workday training?

Training guides and videos are available through Cougarweb.

Click on Resources for Workday from the Home or My Workplace tab.

Select Purchasing from the navigation pane on the left.

You’ll find multiple guides and videos on how to use Workday for all of your purchasing related functions.

Questions about Workday purchasing should be directed to Katherine Rios.

Watch for Tip Tuesday emails from Katherine each week and if you are not receiving these you can ask her to add you to the distribution list. We’re still learning and these tips are how we’re keeping you informed of new functionality or recurring questions that arise.

Are there cut-off dates for requisitions?

What are the various requisition cut-off dates?

May 1st for purchases over $50,000 that require a bid or board approval July 1st for purchases with long lead time August 10th for all others Must be delivered & received by August 31st

New Procurement Planning Guide included with handouts and will be added to the Purchasing Department Intranet page. Timelines are estimated as each purchase could have unique requirements. Get Purchasing involved early to avoid delays!!!

Please note, Board meetings are typically not held in July or November, plan accordingly! The December meeting is generally the first or second Tuesday of the month.

Purchasing Function Governance Centralized Purchasing Board Policy CF Local Purchasing places all orders for all campuses, department & divisions, with few exceptions All requests must be entered in Workday and routed through the approval path Bid thresholds are determined by the entire District spend Bid solicitations are done on behalf of the entire District

Purchasing Function Governance Texas Education Code 44.031

(a) Except as provided by this subchapter, all school district contracts for the purchase of goods and services, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 or more in the aggregate for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district:

(1) competitive bidding for services other than construction services;

(2) competitive sealed proposals for services other than construction services;

(3) a request for proposals, for services other than construction services;

(4) an interlocal contract;

(5) a method provided by Chapter 2269, Government Code, for construction services;

Government Code 2269 – Construction Government Code 2254 Professional and Consulting Services

Purchasing Thresholds Determined by total purchase, not line item Less than $10,000 – one current price quote required from requesting department $10,000 - $49,999 – Department or Purchasing obtains three (3) written price quotes Allow Purchasing to obtain quotes for goods/services that are annual or involve several departments.

$50,000 and over – Purchasing solicits formal bids or proposals legal notice requirements apply Notes: Purchases for goods & services under contract or purchased through a cooperative only require one price, regardless of cost. Purchases with grant funds, even Innovation Challenge grant funds, are required to follow Purchasing Procedures.

Purchasing Thresholds, cont.

All expenditures of $100,000 or more must have Board approval before a purchase order is processed Board approval of the Budget does not mean that the Board has approved the purchase Thresholds are determined by the aggregated amount spent within a 12 month period, District-wide Purchase orders will not be processed until required quotes, bids, proposals, sole source documentation and approvals are received

T-Cards All purchases must be entered in Workday as requisitions except:

T-Cards - should be used in lieu of submitting a requisition for the following items only:

Subscriptions Memberships Newspaper Ads Postage (bulk mailings) Should be used for small purchases for items that are not under contract.

Candis Pettigrew is primary contact.

Quotes When requesting quotes, whether written or verbal, requirements should be clearly communicated to the vendor(s).

Consistent requirements should be communicated to each vendor.

List all requirements for goods and services.

Shipping Terms Location Are there special needs?

Use of e-mail for obtaining quotes

Bid/RFP Specifications The information that you provide on your requisition or attached specifications will be used to create the solicitation Information should be clear, concise and must not be restrictive Having a vendor write bid specifications is considered a conflict of interest and that vendor will be prohibited from bidding Vendors tend to write restrictive specifications that will prohibit other vendors or products from meeting the specifications

Bid/RFP Specifications, cont.

Things to consider when preparing specifications:

Timelines: When do you need it?

Issues that can affect timeliness of deliveries Stock outs, backorders Economic, environmental or political issues Time of year Force Majeure Where do the goods need to be delivered or services need to be performed?

Is there a specific room or location inside the building that the goods need to be delivered to?

Specifications:

Things to consider, cont.

Is there installation involved? If so, who is going to do the installation? Does the vendor provide installation?

Provide a specific or estimated quantity Are licenses or certifications required?

Warranty, training, support Who are the vendors that can provide the goods or service? Provide email if available.

What evaluation factors need to be considered?

Will there be any changes to the facility or anything related to the facility that will need to be considered?

Get Facilities Manager or Director of Facilities and/or Construction involved early on.

Specification Resources Need help writing your technical specifications?

Contact Purchasing for great specification resources Contact other agencies that have purchased the same item or service The earlier that you involve Purchasing in the process, the less likely you’ll be to encounter delays.

Why do we award to the low bidder?

We don’t! Per statute, in determining to whom to award a contract, the District shall consider:

The purchase price;

The reputation of the vendor and the vendor’s goods or services;

The quality of the vendor’s goods or services The extent to which the goods or services meet the District’s needs;

The vendor’s past relationship with the District;

The impact on the ability of the District to comply with laws and rules relating to historically underutilized businesses;

Evaluation Criteria, cont.

The total long-term cost to the District to acquire the vendor’s goods or services;

for a contract for goods and services, other than goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor’s ultimate parent company or majority owner:

has its principal place of business in this state; or employs at least 500 persons in this state; and Any other relevant factor specifically listed in the request for bids or proposals*

*You must be able to justify listing these factors and be able to justify your recommendation based on any of the criteria!

Cooperative Purchasing The District participates in several cooperative purchasing programs that offer volume discounts for items commonly purchased by a number of public entities. Links to the cooperatives are available here: http://inside.collin.edu/purchasing/general_procedures.html#Cooperative.

Purchases made through a cooperative may satisfy the competitive bid requirement Cooperative Purchasing Programs Choice Partners

TIPS

State of Texas & DIR Omnia Partners Buyboard E & I Cooperative Collin County Governmental Purchaser’s Forum Sourcewell Tarrant County Cooperative Purchasing Network GSA Schedules 84 & 70 National Cooperative Purchasing Alliance (NCPA) H-GACBuy Interlocal Agreements with other Community Colleges

Sole Source Purchases

When a product or service can only be provided by one vendor, the department must provide sole source documentation to Purchasing as back-up before the order will be processed or taken to the Board for approval. Sole Source Requisition type should be used when submitting the requisition in Workday and the questionnaire completed.

http://inside.collin.edu/purchasing/general_procedures.html#SoleSourcePurchases

Open Purchase Orders Open purchase should be based on the amount that you spent with the vendor the previous year.

Change orders can be done on Open Purchase Orders, if PO is still open.

Open PO requisition type should be selected and a services line should be used, not goods line.

The privilege of having open purchase orders is to allow you to get the items you need when you need them and should only be used for:

emergency purposes many small dollar purchases are anticipated for supplies throughout the year.

Open Purchase Orders, cont.

If it appears that open purchase orders are being abused, then privileges will be suspended.

Receipts must be done on a per purchase basis in Workday. DO NOT RECEIVE ALL!

Include names of authorized staff within the Memo to Supplier field on the requisition.

Home Depot Open POs must include last 4-digits of account number (1439), exact name as on formal ID required, and buyer will request DOB for all new users. Don’t include DOB on the requisition.

Open purchase orders should not be done for purchase orders that are paid the same amount on a monthly basis. Use a Monthly Goods/Services requisition type.

Change Orders Change orders cannot be done on purchase orders that are at the completely received stage. A new requisition must be entered.

Change order requests will be reviewed on an individual basis. It is the department’s responsibility to make sure that funds for the additional cost are available in their budget.

Change orders increasing the cost at any amount for items that were approved by the Board or for changes that will cause the total purchase to exceed $100,000 will require Board approval.

Invoices That Exceed PO Amount Accounts Payable will handle invoices that exceed the amount of the PO as follows:

$50/10% or less – Payment is processed with no additional approvals $50.01/10% or greater increase – Ordering department must process a change order request in Workday and Purchasing will review/approve A change order must be done if you are adding items to an order.

Electronic Bidding Vendors self-register to receive solicitations in their respective fields Vendors can view opportunities and respond online System is used for formal, sealed solicitations, as well as informal quotes Submitted responses are locked until the date and time of closing System automatically tabulates the bids Vendors can view bid tabulations online An active vendor in the bidding system does not mean they have been awarded a contract Vendor Registration Link: http://www.collin.edu/purchasing/vendorreg.html

Emergency Purchases Must be entered into Workday and expedited through the approval path by the requesting department Emergency expenditures are defined as follows:

To remove hazards To protect property To protect people To alleviate financial loss To alleviate operation damage To expedite repairs

Anyone who makes a purchase in a manner, which does not follow established purchasing procedures, enters into a private transaction with the vendor, and assumes responsibility for payment. Confirming orders are not acceptable! The requesting department should enter a requisition and call all approvers on the approval path to expedite approval of the requisition. The requesting department should then contact the Purchasing Department to request that the requisition be processed promptly.

Signatory Authority District President Chief Financial Officer >$25,000 Executive Director Procurement Services<$25,000 These are the ONLY individuals at the college that are authorized to sign contracts, agreements, or anything that obligates the college financially. See online chart for determining who needs to sign: http://inside.collin.edu/purchasing/Legal%20Review%20of%20Agreements.pdf.

Even though the agreement may not have a dollar value, there could be terms included that would obligate the college financially.

Contracts, agreements, etc. should be attached to the requisition, Purchasing will review and suggest any changes that need to be made and, once agreed to by vendor, will obtain signature.

Receiving Receiving should be done in Workday as soon as the goods/services have been completed to insure prompt payment to the vendor Document shortages and overages Only approve payment for quantity/cost actually received Partial payment Items should be checked-in immediately Before signing for goods, check boxes for damage.

If there is damage to the box, check to make sure the contents are not damaged.

If contents are not damaged, you can go ahead and accept delivery.

Receiving, cont.

If contents are damaged, notify the vendor immediately.

If damage that could not be detected upon receipt is noticed when the goods are put to use you need to notify the vendor immediately.

Always test goods to make sure there are no latent defects.

Shipping Terms F.O.B. (Free on Board) determines the point at which title or ownership transfers and responsibility for the goods while in transit.

F.O.B. Destination: Shipper maintains ownership and is responsible for the goods until received by the college at the destination indicated on the purchase order.

Any loss or damages would be handled by the shipper.

F.O.B. Origin: College takes ownership and responsibility once the goods leave the shippers location.

Any loss or damages would be handled by the buyer.

Shipping Costs Important to include shipping costs on the requisition and should be added in the Freight Amount field in the header, not as a line item.

Ask vendor to include shipping in their price or give a separate price.

Ideal shipping term is F.O.B. Destination, freight prepaid and allowed.

Shipper pays freight, owns goods in transit and files claims.

Vendor Documentation & Contract Compliance Always document unsatisfactory performance by a vendor and send to Purchasing to keep on file. You never know when unsatisfactory performance will become habitual, so keep good records in order to support any future debarment of the vendor or actions against the vendor.

It is the departments responsibility to make sure vendor is complying with the terms and conditions of the contract.

Never agree to different terms without consulting Purchasing and putting those changes in writing.

Contract Terms & Fiscal Year Terms Contract Terms can occur throughout the year Purchase orders based on contract term should be entered for the remaining months of the fiscal year Departments should notify AP Supervisor that PO should be left open if goods/services will not be received by the end of the FY Budget is not rolled Open purchase orders should be done for the FY Open POs are closed at the end of the FY

Catering – America To Go (ATG) All catering orders that are not being provided by in-house catering should be placed through a punch-out in Workday (Pizza is an exception) When changing an order, please do not contact the restaurant/caterer, contact ATG Customer Service Be aware of tips/delivery and service fees on quotes Deposits can be paid for events over $5k To have restaurants/caterers added, please contact Vivian Bordon at vivian.bordon@americatogo.com and copy Herbert Harper in Purchasing at hharper@collin.edu Direct all ATG questions to Herbert Customer Care can be reached 24/7 at:

866-ATG-TOGO

customerservice@americatogo.com

Amazon Herbert Harper is the internal contact for Amazon order questions Orders must be submitted through the punchout in Workday and you must set up account with Amazon prior to using punchout Orders outside 45 day window for delivery Free two-day shipping on all orders shipped by Amazon, not third party User account tied to Collin email (must change any personal accounts that use your Collin email) Amazon orders meeting various restrictions reviewed by Purchasing Pay attention to ship from information Select the correct campus to ship to Some quantity restrictions apply – use Amazon quote function for larger quantities

Tools to Use for Free CompareCoOps – Search for suppliers that have cooperative contracts and get quotes.

https://www.comparecoops.com/ CoProcure – Search for suppliers that have cooperative contracts and get quotes.

https://www.coprocure.us/ Procurated – Search for suppliers references and provide references on suppliers.

https://www.procurated.com/

Closing Remarks Always plan ahead!

Get Purchasing and Facilities involved early!

Document, document, document!

Get it in writing!

Use Workday and the Purchasing Department Intranet site as a resource!

http://inside.collin.edu/purchasing/index.html Questions???

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