Owner Direct Purchase Material Procedures
Routing Guidelines (OOCEA, CEI and Contractor)
1. OOCEA and CEI review and determine from project pay items for ODPM and CEI
prepares the list for contractor
2. CEI informs contractor which materials items the OOCEA intends to purchase.
3. Contractor provides CEI with a Request for Purchase Order letter with attached
signed pricing proposal from vendor, including terms and conditions, for OOCEA
execution (see Exhibit #1). Any discounts for early payment of subsequent invoices
(e.g., 2% discount paid by the 10th of the following month) must be identified.
4. CEI reviews contractor’s Request for Purchase Order and confirms that vendor
proposal, with terms and conditions, is reasonable. (CEI to review with
OOCEA/CMC any important terms/conditions noted in vendor’s proposal)
5. CEI completes the Purchase Order package which includes a) OOCEA Purchase
Order request form (see Exhibit #2), b) OOCEA Letter to Vendor, with attached
OOCEA General Terms and Conditions (see Exhibits #3 and #3A) and c) OOCEA
tax exemption certificate, for OOCEA execution.
Note:
Exhibit #3 may be
modified if Supply Bond is not required.
6. CEI transmits completed OOCEA Purchase Order package to OOCEA Construction
Department for review and execution.
7. OOCEA Director of Procurement prepares the OOCEA Purchase Order and assigns
PO number, signs the OOCEA Purchase Order, the OOCEA letter to vendor, and
the Purchase Order Request Letter from CEI . The procurement department returns
the PO package to the construction department or CMC. The OOCEA PO number
is copied on the OOCEA letter to vendor, and CEI request for PO letter. The
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Owner Direct Purchase Material Procedures
executed PO, with all terms and conditions OOCEA letter to vendor, and OOCEA
tax exemption certificate is then mailed to the vendor. The CEIreceives the the
signed PO request letter and a copy of the PO package. CEI distributes Purchase
Order package to contractor, OOCEA Project Manager and OOCEA Purchasing
Department. CEI notifies contractor that vendor invoices can now be processed for
payment after Supply Bond (if required) is received from vendor. If Supply bond
required the CEI will complete items 3 -6 with new Purchase Order for the supply
bond after receipt of supply bond invoice from the vendor. After the P.O. is signed
by the Director of Procurement the CEI forwards Supply Bond invoice to OOCEA
Construction Department for payment.
8. After contractor receives original vendor invoice, contractor sends Contractor’s
Vendor Invoice Affirmation Letter to CEI with original vendor invoice attached (see
Exhibit #4). Any payment terms and conditions not included in PO and specific to
this invoice must be identified.
9. CEI reviews invoice package, writes internal OOCEA Purchase Order number on
invoice, and prepares the Vendor Invoice Form (see Exhibit #5) and CEI
Recommendation to Pay Invoice Letter (see Exhibit #6).
10.CEI sends Vendor Invoice Form, CEI Recommendation to Pay Invoice Letter,
Contractor’s Vendor Invoice Affirmation Letter and original vendor invoice to
OOCEA Construction Department for review and approval
11..
12.OOCEA Director of Construction signs vendor invoice and returns to OOCEA
Accounting Department for processing.?
OOCEA Accounting Department cuts check and mails to vendor. CEI verifies with
OOCEA Accounting Department that vendor invoice was paid.?Progress Estimates
(CEI)
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Owner Direct Purchase Material Procedures
 The vendor invoices paid by OOCEA could be shown as stockpiled materials. The
ODPM Stockpiled Materials Worksheet (Exhibit 7) and the ODPM Contract Bid Item
Calculations spreadsheet(Exhibit #8) are required for each contract bid item The
cumulative amount of invoices paid to date will be entered on the Progress Estimate
cover sheet in the “Deductions” section with separate line items for Owner Direct
Purchase Materials (ODPM) and Owner Purchase Materials Taxes (Exhibit #9). The
tax deduction for the ODPM is calculated using the current county taxes. If the
county taxes includes a ½% tax on the first $5,000, this should be deducted until the
total amount of the invoice(s) is $5,000. (Example the total additional tax for ½%
sales tax on the first $5,000 is $25.00) A Payment Documentation Log (Exhibit #10),
ODPM Vendor Summary (Exhibit #11), ODPM Stockpile Material spreadsheet and
will be submitted with the Progress Estimate
The tax savings is calculated using
current county tax rates ??CEI is to attach the ODPM Vendor Summary Sheet (see
Exhibit #11) and forward a copy to the contractor.
Quantity Overruns of Direct Purchase Materials (CEI)
 As the project progresses, the executed OOCEA Purchase Order may be exceeded
due to quantity overruns (e.g., piling). If this occurs, a Change Order is required.
After confirming the additional quantity to be supplied by the contractor/vendor, the
CEI is to complete the OOCEA Purchase Order form with “Change Order No. 1”
written below the PO Number and then forward to OOCEA Director of Construction
for execution.
Purchase Order Closeout
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Owner Direct Purchase Material Procedures
 When all materials associated with purchase order have been invoiced and
satisfactorily delivered to the project by the vendor, CEI is to forward e-mail with
completed ODPM Vendor Summary Sheet to IA Program Manager for review. IA
Program Manager will forward ODPM Vendor Summary Sheet to OOCEA
Procurement Department for review and confirmation that all invoices paid to
vendor match the invoice totals on the ODPM Vendor Summary Sheet.
 IA Program Manager will forward OOCEA Procurement Department confirmation
to CEI
 CEI will forward closeout letter(s)(Exhibit #12) to contractor verifying the total
amount of materials purchased from and paid to vendor(s) and requesting that
contractor confirm there are no unresolved time or money issues with the vendor(s)
(see Exhibit #12).
 CEI will forward closeout letter (Exhibit #13) to vendor(s) for confirmation that all
invoices were paid by the OOCEA and there are no unresolved time or money
issues with the contractor.
 Purchase Order Closeout documentation is complete after receipt of signed closeout
letters from the vendor(s) and the contractor.
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