Purchasing Updates
Faculty and Staff Presentation
Fall, 2010
http://www.entertonement.com/search?keywords=twilight+zone+theme
Senate Bill 51: welcome to area 51
Recent Changes in Procurement State Law
What and Why You Need to Know
• WHAT has changed – top five:
1.
2.
3.
4.
5.
Prior Contract Authorization
Sole Source Purchase Requirements
Vendor Authorizations & Certifications
Material Communications Reporting
Organizational Structure/Authority/Governance
Recent Changes in Procurement State Law
What and Why You Need to Know
• WHY you need to know
– Added procedures and time to complete procurements.
• Ensure your faculty and staff understand the new
requirements—and that what could be rushed or
managed as a last minute purchase is no longer
possible
• Help us help you by contacting your departmental
business person and the Purchasing Office as soon as
possible
– Failure to comply with new requirements could lead to
termination of employment
1. Prior Contract Authorization
“Vendors shall not be paid for goods that were received or services rendered
before the contract was reduced to writing and signed by all parties.”
•
•
•
Purchase Requisitions entered into the Banner system after the goods or
services have been received are “Non-Conforming” orders. They violate
the requirement for prior contract authorization
A new process is in place for managing “Non-Conforming” orders
Under new law, in certain circumstances, the University may not be able
to make payment for goods and services received without prior contract
authorization
Ensure faculty and staff understand a Purchase Order or executed
Contract must be complete before goods or services are received from
a vendor. Note – all orders in iBuy automatically create Purchase
Orders in Banner. Voyager POs reference procurement code
2. Sole Source Purchase Requirements
All Sole Source purchases must be posted to the Procurement Bulletin
for 14 days prior to a required public hearing.
• Sole Source hearings are held on a regular schedule every other
Wednesday
• There is a new required Sole Source Justification Form
• Training for the new Sole Source process will be provided to faculty
and staff later this fall
• Naming of a product or service in a grant proposal does not
constitute justification for a Sole Source: Library must comply
Ensure faculty and staff understand the added time and
requirements for all Sole Source procurements. In some cases,
this could be a month or MORE as vendors may not return
paperwork.
3. Vendor Authorizations & Certifications
New requirements for businesses to register with the State of Illinois and
disclose certain information in order to be a vendor for the University.
• Business registration requirement
– Must be a legal entity authorized to do business in Illinois
prior to submitting a bid, offer or proposal or LICENSE
– Similar to Board of Elections registration, but now a fee
applies
• Financial disclosure by vendors for all purchases that exceed
$25K
• Business Enterprise Program (BEP) utilization plan (if
applicable) for minority and female owned businesses
The new requirements for vendors may result in the
University not being able to make purchases from vendors
who have not complied, even if we have purchased from
them in the past.
4. Material Communications Reporting
Beginning January 1, 2011, ALL State employees must enter a report of
communications with vendors into a Web-based system.
• The Executive Ethics Commission of the State of Illinois is
responsible for coordination and training related to this
requirement. We don’t know the final details of this yet.
• Web-based tool will provide reports to the Procurement Policy
Board (PPB)
• All material communications for current or potential procurement
opportunities with a vendor must be reported
Caution faculty and staff about talking with vendors or potential
vendors; consider contacting vendors through the Purchasing
Office. Negotiation for library materials is handled centrally
5. Organizational Structure/Authority/Governance
• University procurements are approved by the Chief
Procurement Officer (CPO) for Higher Education
• CPO is now selected by the Executive Ethics Committee
for a five year appointment
• State Procurement Officer (SPO) for UIUC is Maxine
Sandretto, Assistant Vice President for Business and
Finance
• New role of Procurement Compliance Monitor
The Chief Procurement Officer shall exercise all
procurement authority created by the Illinois
Procurement Code.
Details of Legislative Changes
• Senate Bill 51/ Public Act 96-0795
– Effective 07/01/2010
– The major state agencies (IDOT, CMS, CDB, Higher Ed) formed
subcommittees to review the requirements and provide
recommendations and interpretation
• Several subsequent Public Acts
– PA 96-0920 - requires financial disclosures from vendors for all
purchases over $25K, delays material communications reporting
– PA 96-1064 – requires reporting of disadvantaged business
utilization plans
*Procurement Policy Board 30 day review period
University Responses
• Informing and educating faculty and staff
– Scheduling presentations to department faculty (request
department business staff be present for the presentation).
– Preparing Sole Source process training
– Developing “Purchasing 101” class to cover all current
purchasing requirements
• Implementing a University-wide Contract Management
System (all contracts except those for sponsored research)
• Initiating a new program to place trained Purchasing Office
staff in shared services units within departments and
colleges
Library summary
• Do NOT initiate an order outside of a valid purchase
order process: there will be repercussions
• PLAN ahead if looking at large expenditures: examples
– sole source hearing process and maybe the bid process
• Remember that we need to have vendor paperwork
completed for anything that requires signature if over
5K licenses included and that is difficult paperwork
• Vendor negotiation is now formal and documented: use
common sense
What Can I Sign?
• Other than your paycheck – you are not
authorized to sign anything on behalf of the
University.
• Not even Paula has signature authority.
• If in doubt ask Kathie, Rod, or Susan.