370.2 Purchasing Policies and Procedures

370.2 Purchasing Policies and Procedures

A. Background

University purchasing philosophy and the organization of the purchasing function is set forth in File 370.1 of this manual. That entry specifies that the Director of Purchasing has the responsibility for University purchasing and is to provide appropriate specific purchasing policies and procedures necessary to cause the function to operate in an effective manner.

B. Policy

Individuals given purchasing authority as specified in File 370.1 are responsible for item specification, vendor contact, price negotiation, and purchase order origination for all purchases consistent with the guidelines indicated below.

C. Guidelines

1. The purchaser will assure that a Furman purchase order is properly prepared and processed for each purchase. The purchase order is a legal document which constitutes a contract between the University and a supplier. This form will be generated in the Purchasing Department as specified by the requisition form.

2. In the event of a need for an immediate purchase, the purchaser will contact the Purchasing Department for assistance. No oral purchase order should be given prior to this contact.

3. Bids and negotiations should proceed as follows:

• negotiation with at least one source if the purchase is less than $5,000;
• competitive bids with at least three vendors if the purchase is over $5,000;
• competitive bids in writing for purchases exceeding $10,000; and
• notification to unsuccessful suppliers of Furman's decision.

4. The bidding process may not be appropriate for one-of-a-kind purchases or for purchases made under a single source arrangement. An explanation or documentation should be given however to explain why bids were not taken. Purchases falling under the single source arrangement should be bid every three years at minimum. Documentation of the competitive bid process should be submitted accordingly.

5. Bids may not be necessary for repetitive purchases of low cost items, but they should be taken occasionally to assure the best purchase is made. If possible, these purchases should be processed through the Procurement Card Program to eliminate the cost associated with processing and payment.

6. All lease agreements must be approved by the Purchasing Department prior to being finalized. This will ensure the expense is carried in the appropriate account and the lease is consistent with the policies and goals of the University.

7. All other things being equal, the purchaser should do business with alumni, local businesses, and other individuals and businesses which support Furman.

8. Furniture and office supplies should be obtained through vendors selected by the University Purchasing Department and key personnel within the University representing end users, safety coordinators, space planners, or other departments impacted by the specification of products. This is to assure quality products with a low procurement cost.

9. The purchase of safety and protective equipment should be coordinated between the purchaser's department head and the environmental health safety coordinator. Emphasis will be placed on the inherent safety considerations used in the design and durability of each item. All machines and equipment purchased should be in conformance with federal and state Occupational Safety and Health regulations.

10. The purchase of computer or multimedia equipment and software will require approval from the Director of Computing and Information Services Department or assigned employees to provide for the University's systems compatibility and maintenance expense. This policy includes purchases supporting standalone systems.

11. The arrangement of services modifying University building or structures on or off Furman campus will require approval from Furman's Facilities Services to ensure building codes are adhered to, risk insurance is provided for, and maintenance expense is kept at a minimum.

12. The Budget Unit Head will maintain accurate records of departmental purchases to assure that expenditures remain within approved budgets.

13. Purchasing activities should adhere to the following which is based on the code of ethics of the National Association of Educational Buyers:

• Give first consideration to the objectives and policies of Furman University;
• Strive to obtain the maximum value for each dollar of expenditure;
• Decline offers of personal gifts or gratuities by suppliers;
• Grant competitive suppliers equal consideration insofar as state or federal statues and institutional policy permit;
• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of institutional misrepresentation;
• Demand honesty in sales representation whether offered through verbal or written statements and advertisements, or a sample of the product;
• Receive the consent of the originator of ideas and designs before using them for competitive purchasing purposes;
• Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit major controversies to arbitration or to third party review, insofar as University policies permit;
• Accord a prompt and courteous reception to all who call on legitimate business missions; and
• Foster fair, ethical and legal practices.

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