Purchasing for Extension
Policies and Procedures
Patty Gropp, C.P.M.
Washington State University
Purchasing Services
Pullman, Washington
October 28, 2004
Extension
engages people,
organizations and
communities
to advance knowledge,
economic well-being and
quality of life by
fostering inquiry,
learning, and
the application of research.
Purchasing Services
conducts and facilitates
procurement
in the best interest of the
University, and
in accordance with
Washington’s laws that
govern procurement and the
WSU business policies and
procedures.
Processes
For Outcomes
State of Washington law governs
procurement activities of
Washington State University.
Revised Code of Washington
and
Washington Administrative Code
State of Washington law governs
procurement activities of
Washington State University.
Revised Code of Washington
and
Washington Administrative Code
Washington law governing procurement
activities is concerned with issues such as:
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Ethical conduct of employees
Access to business opportunities
Stewardship of State resources
Public access to records
RCW 42.52 Ethics in Public Service Act
http://www.wa.gov/ethics/home.html
This law contains state requirements
concerning:
• use of state resources
• confidential information
• gifts
• conflicts of interest
• special privileges
• outside compensation
State Employees Seeking to Contract with
Their Own or Another State Agency
As a state employee, you are not prohibited from
receiving compensation or anything of economic value
under a contract or grant outside of your official duties
for another state agency or with your own state agency
if you meet the following conditions:
• The contract or grant is legitimate and
actually performed;
• The performance of the contract or grant
is not within your official duties, under
your supervision, or was created by you
in an official capacity;
• The contract or grant is not performed
for nor compensated by a person from
who you would not be able to receive a
gift; and,
• The contract or grant would not
require the disclosure of confidential
or nonpublic information.
• The contract or grant must be
awarded through an open and
competitive bidding process and more
than one bid or grant application
must be received; or,
• If only one bid or grant application is
received, or
the process for awarding the contract
or issuing the grant was not open
and competitive,
seek the advice and approval of the
Executive Ethics Board to determine
whether the contract or grant could
create a conflict of interest.
GO TO: http://ethics.wa.gov/services.html
When seeking the advice and approval of
the Ethics Board, provide the following
information:
•A description of your official duties;
•A statement of the work to be performed under the contract or
a copy of the contract;
•The duration and dollar value of the contract;
•A statement that no state resources will be used to fulfill the
contract; and,
•A description
of how the work will be performed without the
use of state resources, including paid state time.
Forward this information to:
Executive Director
PO BOX 40149
OLYMPIA, WA 98504-0149
Ethical Conduct
Basic Guidelines
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No conflict of interest in transactions
No financial interest in transactions
No personal benefit from transaction
YOUR BEST OBJECTIVE DECISION FOR WSU
ETHICS W A R N I N G
Avoid Conflict of Interest in
Purchasing Transactions
ETHICS W A R N I N G
Avoid Financial Gain
from Purchasing
Transactions
ETHICS W A R N I N G
Do Not Purchase Goods or
Services from a WSU
Employee
ETHICS W A R N I N G
Do Not Accept Personal
Gifts or Special Privileges
from Vendors
WSU Business Policies and
Procedures Manual
BPPM Section 70 http://www.wsu.edu/~forms/HTML/
BPPM/70_Purchasing/70.00_Contents.htm
BPPM
Washington State University
Purchasing Services
Staff Photo
The staff are camera shy!
Vickie Arrasmith, Director of Purchasing
Patty Gropp, Buyer Supervisor
Buyers
Pam Berry, Kerry Johnson, John Noble, Yve Wight
Purchasing Card Program Administrative Manager
vacant
Purchasing Card Program Coordinator
Henri Piper
Receptionist and Office Assistant
Luzville Goebel
http://www.wsu.edu/purchase/
http:
OUR GOALS
adding value to business transactions
lawful transactions
quality products and services
competitive prices
timely deliveries
Purchasing Services
French Administration 220
Authority to Commit
University Funds
W A R N I N G:
Personal Liability
Administrative Policies
Authority to Commit Funds
Do not commit the University to a
purchase without the delegated
authority of a p-card transaction, Korder, F-Order, blanket order no. or
special prior approval from a buyer.
Authority to Commit Funds
Authority presumes knowledge of
policies and procedures.
Policy violations require written
explanation.
Educational memo may be sent to your
Dean or Chair and the Internal
Auditor.
Authority to Sign Contracts
on Behalf of the University
W A R N I N G
Do you have a letter of delegation
from
President Rawlins?
Spending Thresholds
$1 to $2500 departments may buy without
competition, department order, blanket
order or p-card.
Without competition = direct buy
$2500 must include tax & shipping.
Spending Thresholds
$2501 to $42,300, buyers obtain competitive
quotes or bids from 3 or more sources.
Buyers issue purchase orders or blanket orders.
Spending Thresholds
At $42,300 state law mandates
formal sealed bid procedures conducted by
Purchasing Services.
Advertising is required.
Buyers issue purchase orders, blanket orders or
contracts.
Sole Source Procurement
State law allows a few exceptions to the
requirement for competitive quotations or bid
process:
Special Features
Special Conditions
Special Services or Facilities
Purchasing Tools
Department Order
BPPM 70.07
Department Order
Policies and Procedures
DEPARTMENT ORDER
Department Order
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Up to $2500 with tax & shipping included
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Printed in department
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Sent to vendor by department
Purchasing Tools
Blanket Order
BPPM 70.19
Blanket Order
Policies and Procedures
Blanket Orders
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Purchasing Services authorizes a vendor to
provide a WSU department with goods or
services for a specified period of time with a
Blanket Order.
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Vendor gets one copy of the Blanket Order, and
only verbal orders from department to ship
goods against that order number.
Blanket Orders
• One blanket order covers
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many low value purchases.
Department may call in orders.
Department may pick up orders.
No hard copy or encumbrance.
Invoices require manual coding
and authorized signature.
Limited usage.
Invoices
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The bill for goods or services provided by an
outside vendor
Vendor’s name and address
(REMIT TO)
Addressed to WSU
(BILL TO)
Description of goods and charges
Payment terms
INVOICE
Invoice Voucher
Departments prepare this form when the vendor cannot
invoice, for example:
• the vendor is a private individual
• personal reimbursement
Must have original signatures
INVOICE VOUCHER
add title
Interdepartmental
Requisition and Invoice
To purchase goods or services from another
WSU department,
the internal form to use is the “IRI”.
INTERDEPARTMENTAL
REQUISITION
AND INVOICE
Purchasing Tools
Departmental Requisition
BPPM 70.10
Departmental Requisition
Policies and Procedures
Departmental Requisition
• Prepared by department
• Tells what is needed, quantity, estimated cost,
suggested vendor(s)
• May attach quote, specifications, other
documentation
• Sent to Purchasing for action
Product Specifications
• Clear and orderly specifications
• Please proof read carefully
• Basic qualities and openness to “equals” or alternates
• Catalog pages or descriptive literature can be attached,
but are not specifications for a bid.
Competitive Quotes & Bids
• $2500 and over.
• At least three sources solicited.
• 5 to 10 days allowed for response.
• Offers reviewed by end user.
• Buyer approves end user’s review.
• Buyer issues purchase order.
BID DOCUMENT
Review of Bids
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Follow all instructions on
Bid Transmittal Sheet
May query bidder about specifications only
Never discuss quoted price or negotiate
Never write on bids; may copy
Return all documents to Purchasing
BID TRANSMITTAL SHEET
BPPM 70.10
Purchase Order
Policies and Procedures
PURCHASE ORDER