PROCUREMENT
METHODS OF
PURCHASING
AND
COMMON MISTAKES
& ERRORS
METHODS OF PURCHASING
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Check Requests
Purchasing Card (P-Card)
Purchase Requests
CHECK REQUESTS
General Rule:
A check request is a “charge” commitment.
Purchases under check requests are limited.
Failure to follow procedure results in an
“unauthorized purchase”. The person who
made the purchase or who directed that it be
made, may be personally liable to pay the cost
and settle the matter with the supplier.
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CHECK REQUESTS
UNLIMITED DOLLAR AMOUNTS
Postage, postage meters
 Utility payments
 Payments for travel, registration fees
 Freight charges
 Memberships, dues, participation fees associated
with memberships and subscription charges
stemming from membership
For other allowable areas see Procurement
Procedures: Check Request
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CHECK REQUESTS
LIMITED TO TOTAL COST LESS THAN $5,000
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Advertising
Books and subscriptions – price support must
accompany check request
Mailing lists and mailing services including collating,
packaging and sorting
Repairs to equipment less than $5,000. Must
involve billable labor.
Laboratory/Chemical Analysis
CHECK REQUESTS
LIMITED TO TOTAL COST LESS THAN $5,000
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Demurrage charges
Consulting Services
Personal Services
See Procurement Procedures: Check Requests
for complete list
CONSULTING SERVICES
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Definition – Services which involve the rendering of
advice only
Under $5,000 can handle via check request
$5,000 and over handle via purchase request
Always use the standard consulting agreement –
available on administrative forms website
www.busfin.uga.edu/forms
Note: If a vendor is paid as a consultant, the vendor
can not bid on any resulting purchase
Agreements should address fees for services and
reimbursable expenses separately. Object code for
services is 75113 and reimbursable expenses are
75210
PERSONAL SERVICES
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Personal Services may include training and
instructional services, graphic design, etc.
Use the consulting services agreement until
such time as a personal services agreement
is available
Submit to Procurement with purchase
request and sole source justification if $5,000
or above
CHECK REQUESTS
COMMON MISTAKES AND ERRORS
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Purchase Construction Services
Purchase Consulting Services of $5,000+
Purchase Printing Services
Purchase Supplies – Non-inventoried
equipment
Repairs that do not involve billable labor
Purchase Software
CHECK REQUESTS
COMMON MISTAKES AND ERRORS
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Services – confusion between unlimited and
limited to $5,000
No WCD approval or failure to show WCD
approval number on the check request when
paying monthly services (WCD = Wireless
Communication Device)
PURCHASING CARD
PURCHASING CARD
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Known as P-Card
It is a VISA card issued in an individual’s name.
Obtain one by submitting P-Card Request Form
available at www.busfin.uga.edu/forms
Must attend a mandatory training session
$4,999 is maximum single transaction limit
Can not purchase inventoried equipment
Benefits:
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Vendors realize faster payment
End user realizes more timely delivery
PURCHASING CARD
INVENTORIED EQUIPMENT
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Any item which meets the following
– Is basically nonconsumable and nonexpendable in nature;
– Any item with an estimated usable life expectancy of 3 or more
years and an item acquisition cost of $3,000 or more; or,
– Any item or items which the agency feels should be included in
personal property inventory even though it fails to meet the above
criteria
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The following are inventoried regardless of cost: Books procured
through the Library Accounts, Firearms, Art Objects/Antiques, Vehicles
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The following are inventoried if the unit cost is under $3,000 but $500
or over: Electronic office equipment, computer equipment, A/V
equipment and photographic equipment
PURCHASING CARD
COMMON MISTAKES AND ERRORS
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Purchase inventoried equipment – especially
in the $500 arena of computers, audio visual
and photographic
Split purchases
Exceed the card’s single transaction limit
Cardholder not addressing in detail in
WORKS – what was bought, quantity, unit
price, and why it was purchased
Purchasing Card
COMMON MISTAKES AND ERRORS - Continued
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Manager’s not requiring detailed information
in WORKS and not reviewing the charge
against the actual receipt/invoice
Sales tax being charged
Purchasing statewide contract items from
non-statewide contract vendors.
Improper reconciliation of hard copy monthly
statements
Purchasing Card
COMMON MISTAKES AND ERRORS - Continued
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Memberships being purchased – allowable
only via check request
Account in WORKS not being changed –
especially important for conference and
workshop expenses such as catering, food,
etc.
Failure to change object code in WORKS
Purchasing Card Auditing
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Internal Auditing completes approximately 30
audits each year
Currently, in addition to the above audits,
they perform 10 audits strictly on the p-card
function
Controller’s Division will be conducting
compliance reviews of p-card transactions.
Purchasing Card Auditing
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Items Reviewed by Internal Auditing
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How is the p-card safeguarded?
Is the p-card being used by other than the
cardholder?
Is adequate department review performed?
Are hard copy documents being retained?
Is appropriate account number being charged?
Purchasing Card Auditing
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Items included in the audit
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Review transactions by vendor and dollar amount
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Review for questionable vendors that may indicate
unauthorized use
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Meals
Travel expenses
Inventoried Equipment
Intra-University Charges
Review for adequate documentation – both hard copy and
WORKS
Purchasing Card Auditing
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Items Included in Audit
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Timely approval in WORKS
Timely cancellation of cards after employee
termination or transfer to another department
Consequences
PURCHASE REQUESTS
PURCHASE REQUESTS
PARTS OF A PURCHASE REQUEST (1)
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Date the request
Include account numbers, object codes, and dollar
amounts.
Recommended Vendor (at least one)
Include a delivery date - specify mandatory if a certain
delivery date is required.
List items – use a noun to describe the actual item, include
quantity, unit of issue, cost per unit, description of item
(specifications), extended price (Unit cost X qty). Include
freight charges if known.
Any priced line item on a quote should be a line item on
the purchase request
PURCHASE REQUESTS
PARTS OF A PURCHASE REQUEST (2)
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Attachments – price support, quotes, drawings.
Paperwork address – where Procurement should
send the department copy of the order
Deliver to Address – specify if different than
paperwork address – this is where the vendor will
deliver the service or item or where Central
Receiving will re-deliver the items.
Point of contact and phone number
PURCHASE REQUESTS
SPECIFICATIONS
Main Types:
 Fully competitive – generic – express minimum
needs without any unjustified bias toward a specific
brand.
 Brand Name or Equal – List one brand name and list
the required minimum characteristics to determine
equality.
 Sole Brand – see discussion on following pages.
 Sole Source – see discussion on following pages.
PURCHASE REQUESTS
SPECIFICATIONS - continued
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Description of need – how and where items/services will
be used.
Use a noun to describe the item/service
Physical Requirements – Identify the measurable
physical, quality and functional characteristics common to
several manufacturers. Include types/grades of material,
size, weight, shape, quality, etc. If not competitively
bidding or bidding on an “as equal” basis list catalog
numbers, part numbers, and manufacturer name.
Installation Requirements
Training Requirements
Service/Warranty Requirements
PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND
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Only applies to purchases $5,000 or greater
which are not available on a statewide
contract or agency contract or available from
a mandatory source.
Sole Brand – only one brand of equipment
will meet the requirements of the end user.
Sole Source – A sole brand requirement
where the equipment/service is only
available from one source.
PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND
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Examples of Valid Sole Source/Sole Brand
Requirements:
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Components of a major assembly
Compatible items to be added to an existing system.
Compatibility with substantial parts inventory and/or
service capabilities
Physical design characteristics to satisfy aesthetic
requirements.
Matching and inter-changing with preponderance of
existing equipment.
One of a kind equipment
Books, publications, subscriptions, etc.
PURCHASE REQUESTS
ALL SOLE SOURCE REQUIREMENTS
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The following must be received with the purchase
request in Procurement:
1. A completed sole source/sole brand form with
both end user and department head signature – form
available on administrative forms website
2. A letter from the original equipment manufacturer
(OEM) stating they are the sole manufacturer and
sole seller of the item - In the case where the sole
source is a reseller, the letter from the OEM must
state the reseller is the only authorized reseller TO
the state of Georgia
PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND
ITEM COST $10,000+
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Matrix is required
List minimum specifications down the side
List evaluated brands across the top
Show how each brand meets or does not
meet the minimum requirement specified
PURCHASE REQUESTS
CHEMICAL PURCHASES
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Central Research Stores is the sole agent for
submitting purchase requests for lab
chemicals to the Procurement Office - This
applies only to main Athens campus
Lab chemicals can not be purchased on
indefinite blanket orders.
PURCHASE REQUESTS
RADIOACTIVE MATERIALS
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All orders for radioactive materials must be placed via
purchase request thru the Procurement Office
Direct purchases from vendors are prohibited
Athens campus radioactive material deliveries will be
made to Radiation Safety
Must be classified as an authorized user and granted
access to an electronic database by Radiation Safety
which will issue a “B” number (authorization tracking
number) for each item ordered - This number is
unique and not reusable
Include “B” number on purchase request
PURCHASE REQUESTS
CONSTRUCTION
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Only use purchase request procedures
Definition – Construction involves one or more of the
building trades, such as electrical, mechanical, heating,
air conditioning, plumbing, carpentry, painting, acoustical
or ceramic tiling, paving, excavating, grading, metal
fabrication, landscaping, glass fabrication and/or
installation, masonry, plastering, roofing, well drilling,
concreting, building demolition, elevator installation,
insulating, fencing, floor covering, environmental chamber
construction and installation, greenhouse construction,
etc.
PURCHASE REQUESTS
EMERGENCIES
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Hard copy – fax directly to Contracts and Grants or
Expenditure Control depending on funding - Can
also be hand-carried
Electronic PR- Place a “Y” in the emergency field in
the system. Do electronic emergency justification
Always specify the required delivery date
Always submit an emergency justification letter
If $5,000 or above and sole source/sole brand –
submit sole source/sole brand form - also matrix
should be submitted if unit cost $10,000 or above
PURCHASE REQUESTS
INFORMATION TECHNOLOGY
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IT includes computer systems, computer related
equipment, peripherals, and software
CESS Approval required for all IT purchases totaling
$10,000 or more
CESS approval guidelines are at www.eits.uga.edu/cess
Statewide contracts exist for microcomputer purchases
Obtain current pricing information (less than 30 days old)
from vendor and submit with purchase request
See ordering guidelines for processing purchase
requests with various vendors at
www.busfin.uga.edu/procurement and then see the
vendors listed under Commodities and Contracts
Dell – get quote from Premier page
PURCHASE REQUEST
COMMON MISTAKES AND ERRORS
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All required information not submitted with
purchase request
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Missing paperwork address
Missing delivery address
Missing departmental point of inquiry
Inadequate specifications- no catalog number
No sole source/sole brand justification
No letter from original equipment manufacturer
certifying sole provider
PURCHASE REQUEST
COMMON MISTAKES AND ERRORS
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Vendor provided is not the statewide contract
vendor
No quote from vendor sent to Procurement –
especially needed with Dell and other
statewide contract computer vendors, and
necessary for sole source procurements.
No CESS approval for IT $10,000 +
Failure to include B# for radioactive materials
PURCHASE REQUEST
COMMON MISTAKES AND ERRORS
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Failure to include size/unit of issue for
radioactive isotopes and research chemicals
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Radioactive isotopes with short shelf life are
ordered too far in advance of required actual
delivery.
PROCUREMENT IN THE FUTURE
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Researching commercial web based procure
to pay and E-Procurement systems
Electronic purchase requests- status tracking
on line
Major vendor catalogs available on-line
Orders submitted electronically to vendors
Visibility of minority and small business
suppliers
QUESTIONS & ANSWERS
Contact Information:
Annette Evans
Phone: 706-542-7066
Email: amevans@uga.edu
www.busfin.uga.edu/procurement