PURCHASING
PRESENTATION
Mike Thueson
Jake Mecham
The Four P’s!
• Purpose
• Policy
• Practices
• Procedure
Purpose – Why We Exist
• Protect Tithing Funds - Stewardship of BYUI
• Degree of Separation
• Management/financial authorization controls
• Scriptural law of witnesses
• Mission Statement - web link
• Business Professionalism
• Negotiation experience and skill
• Analysis
• Communications/Information sharing
• Vendor relationship management
• Leverage/network with the Church, CES, and other purchasing
organizations
• Provide established contracts, pricing, and relationships for
many of our campus needs
Policy (University’s Procurement Policy)
• Purchases from $0 to $2,500 can be purchased with a purchasing card, no quote
is required but comparison pricing is suggested, they can also be sent to the
purchasing office in the form of a Purchase Requisition (PR).
• Purchases from $2,500 - $5,000 require a PR, Purchase Order (PO), and 2 verbal
quotes.
• All purchases over $5,000 require a PR, PO, and two written quotes.
• Contracts $25,000+ & Purchases (POs) $90,000+: must be signed by an
executive officer (definitions of contract & PO on web)
 Don’t disclose information pertaining to pricing, budgets, or other vendors
 The Purchasing Office is authorized to make commitments over $2,500
• Exceptions
• Agency
• “University policy stipulates that unauthorized purchase commitments are the responsibility of
the individual making the purchase and not the responsibility of BYU-Idaho.”
Best Practices for Procurement
• Organized Processes (RFI, RFQ, RFP)
• Competition
• Fairness
• Legal/Ethical
• Integrity- policy on information shared
• Long-term vendor relationship management
• Best Business Practice - Procedure
Procedure – Simple Purchase
Need
Solution
Implementation
• Works for consumer buying, not appropriate for institutional
buying
• Expensive
• Actually more time
• Inefficient
Submission to the vendor, enslave ourselves
Lack of revelatory process
Procedure – Best Case Scenario
Plan
Develop
Execute
Sustain
Acquisition
Acceptance/Post
Evaluation
Implementation
Long-term Vendor
Management
Study & Analysis
Identify Need
Evaluation
Team Formation
Decision/Vendor
Negotiation
• Control of process, on our terms
• The “studying of it out” allows for the Revelatory Process
Procedure – Best Case Scenario Flow
Identify Need
Team Formation
Study &
Analysis
Evaluation
Decision/Vendor
Negotiation
Acquisition
Implementation
Acceptance/
Post Evaluation
Long-term
Vendor
Management
Plan
• Identify Need
• Project Charter, Environmental Impact, Strategic Value,
Requirements, Specifications, Expectations, SOW
• Purchasing Involvement
• Potential Single Source
• If a need to contact a vendor arises, information sharing/disclosure
• Determine the right procurement strategy
• Team Formation
• Project/ Purchase Authorization
Benefits: maintain BYU-I control and power of
information, avoid enslavement, allow for divine guidance
Develop
• Study & Analysis
• Develop additional information
• Plan marketplace involvement (RFI, RFP, Vendor presentations, visits, etc.)
 Leverage/network with the Church, CES, and other purchasing organizations
• Evaluation
• Reach out to marketplace
• Solutions from marketplace (Proposal responses)
• Technical & business evaluation – price, terms, mitigate risk, ethical/legal
• Decision/Vendor negotiation
• Control of information is critical
• Develop implementation plan & schedule
Warnings: pilot, demo, webex, evaluation, commitment
• Disclosure timing – enslavement, getting hooked on vendor’s terms
• What not to say/what not to do – (group discussion)
Benefits: flush out issues, concerns, problems, etc.
• Better informed; mitigate risk, cost, possibility of failure; our terms vs. vendors
terms
• Allows for revelation, inspiration, & guidance
Execute
• Acquisition
• Buy – Issue PO/Contract
• Implementation
• Implementation plan & schedule
• Delivery
• Work kick-off
Benefits:
•
•
•
•
•
•
•
•
Planned/Smoother implementation
Resourced – committed resources
Better experience for ALL
Communication & understanding is enhanced between vendor &
stakeholders
Faster deployment & go-live date
More efficient
Strengthen vendor relations/develop a partnership
Maintain control
Sustain
• Acceptance/Post Evaluation
• How did it go?
• How did we all do?
• What can we learn?
Did the purchase meet our requirements, specifications,
expectations, SOW?
• Is the need satisfied? Did we get what we needed?
• Long-term Vendor Management
• Strengthen & maintain vendor relations
• Maintain integrity & the good name of BYU-I and the Church
Benefits: BYU-I receives a solution to meet our needs, a
vendor partnership for future opportunities
Thanks!
Please allow us to help with your purchasing needs!
• Purchasing web link, how to find us on the web:
• https://www.byui.edu/financial-services/purchasing
• Home page search
• Employee page:
• Employee Finances > Financial Services > Purchasing
• Employee Services ( click “more”) > Purchasing & Disbursements
• I-BUY (e-procurement marketplace)
• https://eprocurement.esmsolutions.com/?me=byu-id
• Questions/Discussion?