Purchasing Policies & Procedures Manual

 

Purchase Authorization

Under the authority delegated by the State of North Carolina and the Administration of Western
Carolina University, the University Purchasing Department has the exclusive responsibility for
making all purchase contracts entered into for the University, except for University Bookstore
purchases for resale, the purchase of University Library holdings, and authorized capital
Improvements Project purchases which are made by their respective managers. The Director of
Purchasing and Departmental Purchasing Agents are the only individuals in the Purchasing
Department authorized to make purchasing commitments for the University.

The University operates on the principle of budgetary allotments to the various agencies, schools
and departments. An accountable officer is responsible for expenditures for the allotment.
The authority to charge purchases against the allotted budgets for materials and services is
furnished to the Purchasing Department by the signature of the accountable officer on a purchase
requisition, or their electronic approval for on-line requisitions.

Purchases made by the University, irrespective of the source of funds (grants, contracts, gifts,
receipts, etc.), must comply with the policies and procedures contained within this manual. 

 

Purchase of Goods

Purchase Requisitions

Policy
All requests for materials and services from commercial vendors or individuals must be submitted to the Purchasing Department electronically through the CataMart eProcurement System. The purchase requisition will be processed resulting in the issuance of a purchase order.

Procedure

  1. Requisitions will be processed in the order in which they are received. "Rush" requisitions will be processed within 24 hours if so designated on the requisition. "Emergency" requisitions will only be processed if justification for immediate need can be provided.
  2. All purchases must be initiated by submitting a requisition to the Purchasing Department, and a purchase order number must be assigned by the Purchasing Department before procurement can proceed. When an order must be placed immediately (emergency) a purchase requisition should be submitted electronically and the Purchasing Department notified by telephone of the requisition number for assignment of a purchase order number.
  3. The University can accept responsibility for payment of a purchase only when correct procedures are followed and a purchase order is issued. Individuals who make purchases by other means may be held responsible for payment of the resulting charges. Purchases approved for payment/reimbursement through a Check Request must follow procedures designated on the Controllers Office web site.
  •    Orders are not to be divided into smaller packages in order to avoid the requirements for competitive solutions.       

Standing Purchase Orders

Policy
Standing purchase orders may be issued for a recurring need for miscellaneous supplies of a minor nature, which are not available under existing contracts. The purchase order shall not exceed $5,000 or three months in duration without approval from the Director of Procurement & AP Services.

Procedure

  1. A department requesting a standing purchase order be issued should submit a completed purchase requisition. In addition, the purchase requisition must include the names of individuals authorized to make purchases against the purchase order and the period of time covered by the order.
  2. Requisitions/purchase orders for standing orders to exceed $5000 or three months in duration must be signed by the Director of Procurement & AP Services.
  3. When a purchase against a standing purchase order is made, the delivery ticket and/or invoice must be signed by an individual authorized on the purchase order and the ticket and/or invoice forwarded to Accounts Payable. All invoices and delivery tickets must reference the purchase order number.
  4. Standing purchase orders will be closed out when the dollar amount encumbered or the period of time specified is exceeded.

State Purchase Contracts

Policy
Western Carolina University is required to purchase needed items provided by North Carolina State Contract from the contracting vendors. It is not permissible to purchase items similar to those on contract and designed to perform the same function from a non-contract source unless the purchase price is less than the term contract price.  Documentation of the state contract price must be attached to the purchasing file copy of the purchase order.

Procedure

  1. The State Purchase and Contract Division (P&C) enters into annual contracts with outside vendors to acquire favorable prices for many commonly used items.
  2. The University may access all state contracts on the State Purchase and Contract Division web site. These contracts are updated on a regular basis as changes and new contracts occur.
  3. All purchase requisitions received by the Purchasing Department are reviewed to determine if the commodities requested are available on state contract before processing. Commodities available on state contract are ordered from the contract vendor unless a lower price is documented.

The Purchasing Department will provide detailed information about the many contract items to any department upon request.

Gasoline and Service Credit Cards

Policy
Gasoline credit cards for commercial operated facilities through the University Gas Fleet Card Program and State operated facilities may be obtained for use with University owned vehicles by a University department. The Physical Plant provides credit cards for those vehicles assigned to Western Carolina University through Central Motor Pool. It is not permissible for Gas Fleet cards to be used for any service other than those associated with the operation of State owned vehicles. Gas Fleet cards are not to be used when the necessary services are available from State or University operated facilities. Policies and procedures applicable to purchasing gasoline for use in State vehicles are available from the University Motor Pool.

Procedure

  1. Gasoline credit cards may be obtained by submitting a written request for a Gas Fleet Card or State credit card to the University Purchasing Department. The Purchasing Department will obtain the requested card and maintain a file of all credit card numbers and the departments to whom issued.
  2. Monthly invoices received from the issuer of the credit card should be verified by the using department, a fund number added, signed and forwarded to Accounts Payable for payment.

Purchase of Personal Computer Equipment and Software

Policy
Compliance with University Policy #67 is required for the purchase of computer equipment and software.

Purchase of Used Equipment

Policy
When a department has special need for a particular item of used equipment, the proposed purchase should be discussed with the Director of Procurement & AP Services and the request submitted from on-line requisition. This requisition will be processed in the same manner as a request for a new item (see Policy: Solicitation of Bids and Quotations). A new equipment warranty should be required on all used equipment purchased except those items purchased from State or Federal Surplus Property. When a used item is available on short notice and subject to prior sale, a waiver of competitive bidding may be requested.

Policy on Printing and Copying

Policy
University Policy #40 on Printing and Copying must be complied with when acquiring printing, copying and copiers. Printing which falls outside the limits of the Print Shop shall be ordered following normal purchasing procedures.

Purchases from University Book & Supply Store and Print Shop

Policy
It is not permissible to routinely purchase office and administrative supplies, or to purchase items available on State Contract from the University Bookstore. All purchases of supplies from the the University Book & Supply Store and the Print Shop must be submitted directly to the appropriate department. The Purchasing Department does not process these requisitions.

Purchases Disallowed from State Appropriated Funds

Policies

Purchase of Refreshments, Sundries, Etc.
Refreshments (coffee, donuts, drinks, etc.) may not be purchased with State appropriated funds except when purchased for breaks related to internal or external conferences. Such purchases are subject to cost limits as described in University Travel procedures, Section 10 (please visit the Controller's Office for details). Such purchases may be allowed, however, against certain grants, contract or trust funds, or discretionary accounts, providing the funding agency will not disallow the expenditure.

Purchase of Personal Convenience Items
The purchase of personal convenience items may not be made with State appropriated funds. Purchases may only be made against trust funds. Listed below are items normally considered in this category. Should you have questions concerning any item not listed, contact the Purchasing Department.

  • Coffee Makers
  • Radios, TV's, etc. (Educational use excepted)

Purchase of Alcoholic Beverages
The purchase of alcoholic beverages may not be made with State appropriated funds or University Trust Funds. Purchases of alcoholic beverages may be made from Development Account number 997XXX if approved by the Vice Chancellor for Advancement and External Affairs. All other purchase requests must be submitted to the Chancellor's Office for consideration.

Use of State Purchasing Power for Private Gain

Policy
The purchasing power of the State (University) is not to be used for private advantage or gain. Purchases under contracts made by the State are not to be allowed for personal use out of private funds nor are agencies or institutions to place orders for articles for ownership by employees or other individuals.

Purchases from or through State Employees

Policy
Every reasonable effort is made to avoid making purchases from or through employees of State government or any of its agencies or of public school administrative units. Any instances which may develop of doing business with such personnel require prior approval through the Division of Purchase and Contract. A request should be submitted to the University Purchasing Department who will determine if a request for approval should be made to the Purchase and Contract Division.

Lease vs. Purchase of Equipment

The State/University does not generally lease or rent equipment, although there is no specific rule prohibiting this practice. If equipment is to be required on a continuing basis, it is generally more economical to purchase it.

It may be desirable to rent equipment for a specific requirement of short duration. Rental agreements are similar to lease agreements, except that rental agreements are normally for an indefinite period and can be terminated by the rentee after giving notice, usually thirty days, in advance. The initial cost of some equipment is so great and/or the technology is so rapidly changing; it may be more economical to rent or lease the equipment.

When the cost of a piece of equipment exceeds $25,000 and the useful life expectancy is less than five years, a lease/rental versus purchase evaluation should be made. Request for bids/quotations should include both options unless acceptable justification is provided on why this is not feasible.

Solicitation of Bids and Quotations

Policy
The Statutes of the State of North Carolina and University Purchasing Procedures require competition for all purchases by State agencies exceeding $5,000, except as may be provided otherwise by statute or term contracts. Where it is not sought or obtained, the reason must be valid and documented.

A purchase requisition must be submitted before formal bids or quotations will be solicited by the University Purchasing Department.

Procedure

  1. Purchases with a total dollar value of $5,000 or less do not require competition. Purchasing and University departments will monitor these procurements to guard against abuse and to ensure that the dollar value received is commensurate with the dollar amount expended.
  2. Request for Quotes (RFQ) will be requested in writing by the Purchasing Department for purchases from $5,000 to $25,000. Vendor responses must be in writing and received in the Purchasing Department by the indicated due date. Even in the case of a waiver of competition, if time permits, a written request for quote will be sent to the sole source vendor. Request for Quotes from $10,000 to $25,000 must be posted to Purchase and Contract's Interactive Purchasing System (IPS) for access by any interested vendor.
  3. For purchases exceeding $25,000, formal Invitation for Bids (IFB) will be issued in writing and posted to IPS by the Purchasing Department. All vendor responses must be in writing, sealed and received in the Purchasing Department by the indicated due date and time. The Purchasing Agent issuing the IFB in a secure file will maintain bids received prior to the time of opening. At the time and date indicated, all bids will be publicly opened and each bid price read aloud. In addition to the Purchasing Agent, a witness shall be present at the bid opening. The Purchasing Agent and the requesting department will evaluate bids if necessary, to determine those bids meeting the bid specifications. The award will be made to the lowest bidder meeting the bid specifications. If  the lowest bid received is not selected, a letter of justification must be provided explaining how each lower bid failed to meet the required specifications.
  4. Statutes require the solicitation of formal bids by the State Purchase and Contract Division when the total purchase is greater than $250,000. A Purchase and Contract requisition with detailed specifications will be sent to Purchase and Contract in Raleigh. Formal bids solicited by Purchase and Contract requires approximately thirty to forty-five days. Bids will be tabulated and sent to the Purchasing Department for review with the requesting department. All bids are returned to Purchase and Contract with the University's recommendation for award. This recommendation will be submitted to the State Board of Award and a purchase order issued following their approval.
  5. Printing, which is performed by the University Print Shop, is exempt from the state printing requirements. Direct purchases may not be divided into smaller orders to avoid competition procedures or to circumvent the necessity of the requirement being sent to the Division of Purchase and Contract.

Return of Merchandise to Off-Campus Vendors

Policy
Return of merchandise ordered from off-campus vendors is the responsibility of the ordering department. The supplying vendor and University Purchasing Department shall be contacted prior to shipment of merchandise being returned to an off-campus vendor by a
department for any reason.

Procedure

  1. Departments desiring to return merchandise to a vendor shall contact the vendor to obtain a return goods authorization and shipping instructions.
  2. The department shall contact the Purchasing Department providing the following information:
    - Vendor name to which the merchandise is being returned
    - Purchase order number on which the merchandise was ordered
    - Return goods authorization number if provided by vendor
    - Reason merchandise is being returned
  3. The department shall package and properly label the merchandise for shipment.
  4. Arrangements should be made with the Facilities Warehouse for shipments to be made by carrier transport or taken to the University Bookstore for shipments by UPS.

Solicitation by Sales Representatives

Policy
Sales representatives are encouraged to visit departments to keep the departments informed of new items being introduced and to assist departments by providing information on various aspects of their products and services. Receipt of equipment and products for demonstration purposes is permissible provided no obligation is made to the vendor to purchase these items. It is not permissible for a department to receive materials on consignment, pending issuance of a confirming purchase order.

Procedure

  1. Vendors requesting that they be allowed to demonstrate a new product line or service must obtain approval from the Purchasing Department if space in a building or parking lot is required. The vendor will be responsible for all expenses incurred in the demonstration. The University will not accept any responsibility for the safety of the vendor's products beyond normal care and safety.
  2. When demonstrations are requested by a department from a vendor, arrangements should be made between the department and the vendor and require no further approval. All expenses incurred from these demonstrations are the responsibility of the vendor. The University will not accept any responsibility for the safety of the vendor's product beyond normal care and safety.
  3. The demonstration of products to a department or to an individual in no way obligates the University to purchase or lease the equipment or service. Any purchase requests issued after demonstrations will be handled in accordance with the normal purchasing regulations of the University and the State.
  4. When a vendor offers equipment for evaluation and the department is willing to have the equipment installed for evaluation purposes, the department should secure a written agreement using the following basic guidelines: 
    - Equipment must be adequately identified and described, giving model and serial numbers.
    - All shipping charges are to be paid by the vendor.
    - Insurance, if any, is the responsibility of the vendor. The University assumes no liability for the equipment. The University may agree to exercise normal operational care and to avoid abuse of the equipment.
    - At the end of the evaluation period, the vendor will be responsible for crating and shipping by a carrier of the vendor's choice.
    - The evaluation of equipment for a vendor does not give the vendor permission to use the name of the University in any advertisement or as an endorsement.
    - The University is under no obligation to purchase the equipment.

Complaint to Vendor

  1. When University faculty or staff has a problem or complaint concerning a vendor's product or services, they should attempt to resolve the problem directly with the vendor.
  2. When informal efforts are unsuccessful in resolving the problem, all the appropriate supporting documentation should be gathered and an official Complaint to Vendor Form (form coming soon)completed. This should contain names, dates, and results (or lack of results) of all efforts to obtain resolution of the problem.
  3. The Complaint to Vendor Form should be forwarded to the Purchasing Department.
  4. The appropriate purchasing agent will review the complaint and attempt to resolve the problems with the vendor.
  5. If the purchasing agent is unable to satisfactorily resolve the problem, a copy of the complaint will be forward to the vendor, a copy sent to the State Division of Purchase and Contract, and a copy filed in the Purchasing Department.
  6. If the vendor does not respond appropriately, the State Division of Purchase and Contract will attempt to resolve the problem through procedures available under North Carolina State Law. In most cases, the State can intervene to negotiate a settlement.
    When circumstance warrant, the State may debar a particular vendor from future business with the State. In the case of a vendor who has a State Term Contract; the State may revoke or otherwise amend that contract accordingly.

Vendor Debarment

Policy
When notified by the North Carolina Division of Purchase and Contract or Federal Government that a vendor has be debarred from doing business with that government entity, WCU Purchasing Agents are notified by the Director of Purchasing and purchases
from these vendors are suspended until notified that the debarment has been rescinded.

Historically Underutilized Business Utilization Policy

Policy
Western Carolina University has with intent practiced non-discrimination and promoted patronization of historically underutilized businesses in its procurement process. The University has a commitment to continue this practice and to enhance opportunities for HUB vendors to do business with the University in accordance with Executive Order No. 77.

Evidence of the University's commitment to do business with HUB vendors is reflected in the participation of these vendors in University purchases. The University has actively developed a HUB vendor file and includes these vendors in bid requests when qualified. HUB vendors on State term contracts are used when they are the sole contract vendor, or in the case of multiple vendors, they offer equal or greater benefit to the University than other contract vendors. All new vendors are mailed vendor registration forms, which ask them to designate if they are a HUB business. Those who respond affirmatively are added to the HUB vendor file.

Because of the demographics of the area, local HUB businesses available for utilization by Western Carolina University are limited. The Purchasing Department will seek to identify and patronize HUB vendors locally and those outside the immediate area.

The University will seek additional HUB vendors from the following sources:

  1. Asheville Area Black Pages
  2. City of Asheville Certified Minority Businesses list.
  3. State of North Carolina Special Interest Vendor listing.
  4. Solicitation of participation by HUB vendors in supplying University needs to be included in all procurement advertising and on all bid request forms.
  5. Request from HUB vendors to be added to our vendor file.

It is the intent of Western Carolina University and the University Purchasing Department to continue to increase the percentage of HUB vendors in our vendor file and to maintain a commitment to their utilization. University departmental personnel will be made aware of this
commitment and the importance of using HUB businesses by including this emphasis as an important part of periodic purchasing seminars and workshops held throughout campus. The Director of Purchasing is the University coordinator responsible for the HUB Utilization Plan.

University Term Contracts

When the frequency of order and volume of purchases of the same or similar items reach a level at which it may be beneficial to the University to establish a term contract, a contract should be established through the bid process. University purchasing agents will monitor their assigned commodities to identify items for which term contracts may be appropriate.

 

Purchase of Contractual/Consultant Services

 

Consultant Services

Policy
The University shall acquire consultant services only after it is determined that the function for which the consultant is retained cannot be reasonably accomplished by employees of the University; that the use of a consultant is reasonably necessary to the proper operation of the University; that the estimated cost is reasonable as compared with the likely benefits or results; that the funds are available for the contract; and that the contract is in the best interest of the University and the State.

Services of a consultant shall mean work or task(s) performed by State employees or independent contractors possessing specialized knowledge, experience, expertise, and professional qualifications to investigate assigned problems or projects and to provide counsel, review, analysis, or advice in formulating or implementing improvements in programs or services. This includes, but is not limited to, the organization, planning, directing, control, evaluation and operations of a program, agency or department.

Requirements for retaining a consultant are:

1)     Authorized pre-bid approval of consulting contracts by the Chancellor or the Chancellor's designees if a consulting contract is less than or equal to a campus' delegated purchasing authority and determined to be in the best interest of the University.

2)     Authorized pre-bid approval of consulting contracts by the University of North Carolina General Administration's (UNC GA), Chief Operating Officer (COO) if a consulting contract is above a campus' delegated purchasing authority.  In order to obtain approval, a campus must submit an email to the UNC GA Chief Operating Officer with the following information:

a)     What services the campus desires to secure
b)    What benefits the campus/department expects to receive from the consultant service
c)     What the campus estimates the cost of the service to be
d)    What sources the campus has identified

When the consulting service has been approved by the COO, an approval will be emailed to the appropriate campus contact and the campus can then prepare and issue the solicitation document for the needed consulting service.

3)     UNC campus contracts for consulting services must be consistent with all procurement policies and procedures adopted by a campus including policies and procedures for personal and professional services, competitive bidding and sole-source justifications.

4)     All professional service consulting contracts for the fiscal year, whether above or below a UNC Campus' delegated purchasing authority, must be reported to the UNC GA Procurement Director by August 31st of the following fiscal year.  A Consultant Log has been created for each campus to fill in their consulting services contracts for each fiscal year.

5)     Once the UNC GA Procurement Director has received each campus' Consultant Log, they will forward to the UNC GA Chief Operating Officer for final review and record keeping purposes.

6)     Consulting contracts for instructional services, curriculum development and conducting academically-oriented research will remain exempt from the State Consulting Act and are exempt from being reported to the UNC GA Procurement Director and the UNC GA Chief Operating Officer.

Procedure

1. Prior to securing the services of a consultant, the department shall submit to the Director of Procurement & AP Services written justification for its request for consultant services. This written justification shall explain what services the department desires to secure; how the work to be performed relates to the proper function of the department; what benefits the department expects to receive from the consultant's services; what the department estimates to be the cost of the services sought; what potential sources of consultant services, if any, the department has identified; and such additional information as may be required. The request and justification must be approved by the appropriate Dean and/or Vice Chancellor and a letter of endorsement obtained from the Chancellor.

2. Consultant services shall be obtained from other State agencies when the services available from other State agencies substantially meet the reasonable specifications of the requesting department. If the department is requesting authority to contract for consulting services outside of State government, the justification shall also detail what potential sources of those services exist within State government and explain why the desired services were not available from those sources.

3. The documents submitted by the department requesting authority to retain consultants will be reviewed by the Director of Procurement & AP Services and, upon approval, forwarded to the Chancellor for review and approval.

4. If the consulting contract is anticipated to exceed the University's delegated authority, $250,000, a request must also be submitted to the UNC GA Chief Operating Officer to obtain approval.

5. Once the University receives approval to solicit proposals for consultant services, the requesting department/Purchasing Office shall:

Prepare a request for proposals (RFP) to disseminate among prospective service providers. Post all RFP's estimated to exceed $10,000 to the Division of Purchase and Contract's Interactive Purchasing System (IPS). Publicly open all proposals received at a date and time set in the request for proposals. Review all proposals received on the basis of evaluation criteria significantly related to the function to be performed and equally applied to all proposals received. Award the contract to the lowest cost proposal best meeting the requirements of the RFP.

6.   All contracts for consultant services shall be in writing and in a format approved by the State Division of Purchase and Contract. The contracts must be approved by Legal Counsel and signed by the Chancellor.

Any consultant contract executed without the approvals as specified above shall be void and no State funds shall be expended pursuant to any such contract. Any employee or official of the State of North Carolina who executes a University consultant contract without these approvals shall be liable to repay any amount expended pursuant to such contract plus court costs.

Contractual Services

Policy
It is the general policy of the University to acquire contractual services by seeking competition. The final decision-making authority in regard to any phase of procurement or performance of any contractual service is the University Chancellor.

A department of the University shall seek to obtain a contractual service only after the following determinations have been made: that funds are available to cover the total cost of the service; that the desired level of quality of the service is adequate and reasonable for the purpose intended; that all rules, regulations and procedures referred to herein have been or will be complied with; and that obtaining the service is in the best interest of the University and the State.

Contractual services shall mean work performed by an independent contractor requiring specialized knowledge, experience, expertise or similar capabilities wherein the service rendered does not consist primarily of acquisition by the State of equipment or materials. For the purpose of clarification, equipment service contracts are contractual services and subject to the rules and regulations herein.

Procedure

For all contractual service contracts over $5,000, unless an emergency or pressing need exists, the University shall comply with the following:

1. The department shall prepare a task description of the services and desired results. For statewide or multi-agency term contracts, The Division of Purchase and Contract (P&C) will establish the task description of services and desired results. Task descriptions shall contain all of the following:

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 Director of Procurement and AP Services.); detailed specifications or type and level of work required; what the University will furnish; what the Contractor will furnish; the method, schedule, and procedures for billing and payments; other terms and conditions, specifications or procedures bearing on the conduct of the work.

2. Upon completion of the task description and desired results, competition shall be solicited, where available, for expenditures over $5,000. If over $5,000, the University must solicit competition by issuing a written Request for Proposal (RFP), which shall contain the task description and desired results, and specify or provide for all of the following:

Provide for the laws of North Carolina to govern the contract; the contract shall be cancelable upon a specified written notice at any time by the State for unsatisfactory performance or for the convenience of the State; provide for the option to require a performance bond or other suitable means of ensuing faithful performance when deemed by the State to be necessary; the contract must be in compliance with State and Federal antitrust laws; the contractor shall furnish all workers' compensation, liability insurance, and other insurance as may be required to protect themself and the State from claims which may arise; provide for a payment schedule; provide for price adjustments provisions, if any; identify the agency liaison personnel and any other agency resources that will be available to the contractor; provide the criteria for evaluation; request a description of the offeror's qualifications and references; have the cost of the service broken down by components; and have the offeror identify the proposed methodology for accomplishing the work (if not furnished in the RFP).

3. Request for Proposals $10,000 or greater must be posted to the IPS.

4. After opening, and completion of the evaluation, the University shall prepare a written recommendation for award, and if over the established benchmark of $250,000, shall submit a copy of all offers received and their recommendation to P&C for approval of contract and award, or other action deemed necessary by the SPO (Examples: cancellation, negotiation, etc.). Notice of the decision by P&C shall be sent to the agency.

5. All contracts for services shall be in writing and in a format approved by the State Division of Purchase and Contract. The contracts must be approved by Legal Counsel and signed by the Chancellor unless authority is delegated elsewhere. Contracts for servicing equipment may be executed by the University Purchasing Office. All other delegations of authority will be made in writing from the Chancellor. The following types of services shall be exempt from adherence to procedures for securing contractual services:

Services provided by individuals by direct employment contracts with the State; public utility services (gas, water, and electricity), telephone, telegraph and cable services furnished by utility companies; services provided which are subject to published tariff rates as established by the Interstate Commerce Commission; services which are merely incidental to the purchase of supplies, materials or equipment; contracts for construction of and structural changes to public buildings; personal services provided by doctors, dentists, attorneys, architects, professional engineers, scientists or performers of the fine arts or similar professions        (A personal service shall be interpreted to be the occasional or temporary use of an individual's professional skills to perform a professional task); services provided directly by an agency of the State, Federal or Local Government, or their employees when performing the service as a part of their normal governmental function; and any other service designated to be exempt by the State Purchasing Officer, or his authorized representative.

Service/Repair of University Equipment

Policy
Obtaining service for University equipment is the responsibility of the department to whom the equipment is assigned. The department should determine if the equipment is in warranty, on a service or maintenance contract, or out-of-warranty. Obtaining service and submitting an invoice for payment on a confirming requisition is not permitted.

Procedure

When it is determined that service is required on equipment, which is under warranty, the department with the equipment should call the manufacturer to obtain the service. When service is required on equipment, which is under a service, or maintenance contract, the department with the equipment should call contract vendor to obtain the service. When service is required on equipment, which is not under warranty or a service contract, a purchase requisition must be submitted and a purchase order must be issued to obtain the service. Documentation of the nature of all services performed should be maintained by the department possessing the equipment.

Purchases under Special Circumstances

Sole Source/Waiver of Competition Purchases

Policy
When the purchase of highly technical/unique items or services indicate there may be only one known source or brand specific item that will satisfy the requirement and the purchase exceeds the bid threshold ($5000), documentation must be provided justifying the purchase without competitive bidding. The Director of Procurement & AP Services must approve these purchases. Please note that "cost" or "urgency" is not a valid sole source justification.

Procedures

  1. Requisitions for sole source/waiver of competition purchases should be submitted to the Purchasing Office using routine requisitioning procedures.

  2. A justification memo for the purchase must accompany the requisition providing the following information: Sole Source Request Form (Word)

    - Name and address of the suggested supplier

    - Technical specifications or qualifications which make the vendor unique

    - Names and addresses of other vendors, which provide similar items or services, and details of the ways they fail to meet requirements.

    - Any other information which supports the uniqueness of the requested item(s) or services.

  3. Copies of all correspondence including any vendor quotations received in the selection of the special purchase should accompany the requisition and memo.

  4. If the request is over $250,000 in cost, the request will be forwarded to the State Purchase and Contract Division for processing. If the State Purchase and Contract Division concurs with the justification for the waiver, the request will be

    presented to the State Board of Award for approval as a sole source/waiver of competition.

  5. If $250,000 or less, the requisition and justification must be approved by the Director of Procurement & AP Services.

  6. All documentation for the sole source/waiver of competition purchase will be attached to the purchase order in the eProcurement System (CataMart).

Emergency Purchases

Policy

The University is delegated the authority to make emergency purchases $250,000 or less without following the prescribed procedure for routine purchases. Emergency purchases exceeding the threshold for which competition is required and for which bids will not be obtained must be approved by the Director of Procurement & AP Services or Associate Vice Chancellor for Administration and Finance. Emergency purchases greater than $250,000.00 must be approved, by telephone, by the State Purchase and Contract Division, if time permits, before the purchases are made or reported as a matter of record if time does not permit. Emergencies are defined as: "Situations, which endanger lives, property, or the continuation of vital programs and require immediate, on-the-spot purchases of equipment, materials, supplies or services."

 

Procedures

  1. Requisitions for emergency requests for purchases should be submitted by entering a requisition in CataMart with a justification for the emergency purchase and the Purchasing Office notified by telephone.

  2. The Purchasing Office will solicit quotations by telephone or fax machine, if necessary; obtain approval of the State Purchase and Contract Division, if required and time permits; and place the order.

  3. The Purchasing Office may assign a purchase order number, if necessary, to the transaction and authorize the requesting department to place the order by telephone.

  4. If the emergency occurs outside of normal business hours, the Director of Procurement & AP Services or one of the Purchasing Agents should be contacted for assistance. If they are unavailable, the purchase may be made, and must be fully documented and forwarded to the Director of Procurement & AP Services for review the next working day.

  5. Purchases made on an emergency basis outside of competitive/State Term contract guidelines will be reviewed for approval by the Director of Procurement & AP Services or Associate Vice Chancellor for Financial Services and all documentation maintained in the Purchasing Office.

Year End Purchases

Delivery Within Fiscal Year Purchase Made

Policy
The statues of North Carolina require that unexpended appropriated funds be reverted to the State at the end of the fiscal year unless special permission is given by the State Budget Division to carry them forward to the next fiscal year. University policy requires delivery to be made before payment can be made for the goods or services.

Procedure

  1. Since delivery on many equipment items may require as much as six months or more, orders, particularly for equipment, must be placed as early in the year as it is possible to anticipate the need. This does not preclude placing purchase orders late in the fiscal year, but if delivery cannot be made before June 30, payment will be made from the next fiscal year's budget. Orders cannot be placed contingent upon receipt of the goods prior to the end of the fiscal year.

  2. Departments anticipating the need for supplies or equipment to be delivered after July 1 and charged against the next year's budgeted funds may process purchase requests prior to June 30 provided that the requests carry the following statement:

    FOR DELIVERY WITHIN NEXT FISCAL YEAR

    "TO BE PAID FROM 20__ - __ FUNDS"

    ______________________________

    ACCOUNTABLE OFFICER

    The purchase request will be encumbered against next year's funds immediately after July 1.

Surplus Property

Fixed assets become surplus property when the owning department no longer needs them. Surplus property cannot be sold directly to individuals. It can be sold to certain educational institutions and non-profit organizations with the permission of the State Surplus Property Agency http://www.doa.state.nc.us/ssp/. Disposal or transfer of surplus property must be handled according to University and North Carolina State Surplus Property procedures.

Procedure:

1)     Departments having non-IT surplus property, property needing disposal or property they wish to cannibalize must submit the proper completed request form which can be found here.

The appropriate form (surplus, disposal or cannibalization) must be completed with all information requested, signed by the appropriate departmental staff member (items with an original value less than $5000 by the Departmental Surplus Coordinator, items with an original value of $5000 or greater by the Department Head) and forwarded to Surplus by email at surplus@wcu.edu or faxed to ext. 7444.  Each department has a Departmental Surplus Coordinator.  You can locate your Departmental Surplus Coordinator by going here.  Only items submitted on one of these forms will be processed by surplus.  If additional items are found that are to be surplused, disposed of or cannibalized, another form must be submitted.  If the department has any questions concerning disposal vs. surplus, please contact the Surplus Property Coordinator at ext: 2760 for guidance.

a.     The Surplus Computer/IT Property Declaration Form - Pickup Request (Log In Required) must be used to surplus all computer/IT equipment.

b.     It is the responsibility of the owning department to remove any software from computer equipment before it is picked up by IT for surplus.

c.     All documents should be removed from any surplus or disposal item (file cabinet, desk, etc.) to prevent disclosure of potentially sensitive information (social security numbers, student addresses, etc.).

d.     All surplused items must be stored in a secure location until they are picked up by surplus.  They must not be stored in an area accessible by the general public.

e.     All surplus items awaiting pick up must be identified by attaching a notification containing the request number and labeling the item as surplus. This must be completed by the department.  Items requested for disposal or cannibalization will be tagged by the Surplus Property Coordinator.  The request number, quantity and description of the item(s) to be picked up must match the work order received by the scrub team.  If these do not match, the item(s) will not be picked up.

f.      Requests for surplus or disposal of items that contain or have come into contact with any bio-hazardous material must be decontaminated and have all bio labeling removed after decontamination is complete. Contact the Office of Safety and Risk Management (ext. 7443) for instructions on decontamination procedures.  Following completion of decontamination, a written approval must be obtained from the Office of Safety and Risk Management before item(s) can be surplused or disposed of.  This approval must be forwarded to the Surplus Property Coordinator.  Items will not be picked up for surplus or permission granted for disposal without this approval.

2)     Once the appropriate form (surplus, disposal or cannibalization) has been submitted, arrangements will be made to have items deemed “useable surplus” picked up and taken to the warehouse (THERE IS NO CHARGE FOR THIS SERVICE).  Useable surplus items will remain in the warehouse until they are either needed by another department, sold at a warehouse sale (Yard Sale), or recycled by an approved vendor on State Contract.  Any surplus items not needed by another department with a value of $150.00 or more must be placed on bid through the State Surplus Property Agency in Raleigh.  The Surplus Property Coordinator makes this decision based on factors such as condition, age and current value after depreciation. 

3)     Request for “disposal” or “cannibalization” of items will require inspection by the Surplus Property Coordinator before pickup.  If approved, disposable items will be picked up and taken to the warehouse where they will be stored in a separate location from useable surplus until removed for disposal off campus. Cannibalized items will remain in the department to be used.  When all desired components have been removed from these items, the remaining part(s) must be surplused / disposed of using the same procedure listed above.

4)     Any asset to be traded in must be preapproved by the State Surplus Property Officer in Raleigh. Therefore, the Surplus Property Coordinator must be notified before any transaction is made.  The Coordinator will request approval from the State Surplus Property Officer.  Once approval / rejection has been received, the department making the request will be notified.  If approval is granted, the department must notify the Fixed Asset Accountant (Controller’s Office) by completing the Equipment Return Form so the asset exiting campus can be removed from the Fixed Asset System. This form can be found on the Controller’s Office web page under the Fixed Assets.  The form must be completed, printed, signed by the appropriate department head, and sent to the Fixed Asset Accountant.  A copy should be retained in the department or administrative unit.  All WCU tags must be removed from the trade-in asset and returned to the appropriate personnel (purple and red tags – Fixed Asset Accountant, Dale Cox; green tags – IT Asset Coordinator, Ed Lawson).

5)     If it is feasible and practical, the State Surplus Property Agency will transfer surplus property between and among agencies at values it deems reasonable, appropriate and in the best interest of the State. If other agencies have no need for the asset, the State Surplus Property Agency attempts to sell the asset for the highest price possible. This is generally done by offering the asset to the public through sealed competitive bids, or a way determined to be preferable by the State Surplus Property Agency http://www.doa.state.nc.us/ssp/. Transfer(s) may also be made directly to local government agencies, such as county or city agencies, or a qualified non-profit organization at a fair market price based on actual high bids awarded at public bid openings on similar surplus property.

6)     Bidders are urged to inspect all surplus property prior to submitting bids. Bids are subject to rejection unless submitted on the bid form and properly executed. Lump sum bids will not be accepted--bidders must bid on individual items. The bids are opened at 1:00 p.m. on the designated date at the State Surplus Property Agency warehouse in Raleigh with the award going to the highest responsible bidder. The State Surplus Property Agency reserves the right to reject any or all bids. No guarantee or warranty is offered as to condition or quality of the property offered for sale. All surplus is sold "As Is" and "Where Is", and any cost of weighing, packaging, loading, or hauling shall be assumed by the bidder. After the item is sold, State Surplus Property notifies the owning agency of the selling price and bidder. If the item was transferred, State Surplus Property will notify the owning agency as to which agency received the item and at what cost. All payments must be in the form of a cashier's or certified check or money order made out to the State Surplus Property Agency.  Payment in full for all property purchased must be made within ten (10) calendar days from date of award, and all property purchased must be removed within ten (10) calendar days from date of award.

7)     If the purchaser does not remove the property purchased within ten (10) calendar days after date of award, the Surplus Property Coordinator will contact the winning bidder as to their intent to pick up.  If the purchaser has a valid reason for not picking the item up, the Surplus Property Coordinator may set a particular time and date by which the item must be picked up.  If the item is not picked up within this time frame, the item will be submitted to the State Surplus Property Agency to be bid out once again.  Any monies already collected for this item will NOT BE REFUNDED.  The Surplus Property Coordinator will make every effort to work with bidders in making arrangements to pick-up surplus property they have purchased. Warehouse space is limited and it is in the best interest of the University to have equipment sold and removed from campus as soon as possible.

8)     The Surplus Property Coordinator deposits monies from warehouse sales (yard sales) into the general surplus fund.  The Coordinator prepares a check request from this fund for the amount collected at a yard sale payable to the State Surplus Property Agency and mails the check to the Agency. The Agency deducts 5% from the total and returns the remainder by check to the University for deposit into the appropriate designated fund.  The Surplus Property Coordinator deposits monies collected in the surplus bid process into the departmental fund from which the asset was originally purchased for items purchased with non-state funds and into the general surplus fund if purchased with state funds.  If a departmental fund cannot be identified or is closed, the monies will be deposited into the general surplus fund.                       

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