Frequently
Asked Questions - Purchasing
Instructions:
Click
on the question below and you will automatically be directed
to the answer within the document.
Does
the increase in Quick Order and "sealed" bid thresholds
mean that competitive bidding is not required between $5,001
and $40,000?
No,
purchasing is still required to do competitive bidding when
processing requisitions between $5,001 and $40,000. The buyers
will obtain prices through phone, email, and fax inquiries
rather than the “sealed” bid process. Thereby
reducing the time it takes to process a requisition.
Have the rules for what a
Quick Order can be used for changed along with the increase
to $5,000?
No
other changes were made to how a Quick Order may be used.
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How
do I dispose of a University-owned vehicle?
Individuals or departments with vehicles that are no longer
needed have the following options:
·
The vehicle buyer will assist the Requester in identifying
and evaluating the financial options associated with trading
in a vehicle when a new purchase is being made, or
·
The vehicle may be retired to surplus by contacting Material
Services at 732/445-5838. For additional information refer
to the surplus property policy located in Book 6 of the University
Regulations and Procedures Manual, or visit the Material Services
web site at http://www.material.rutgers.edu.
When
a University-owned vehicle is a total loss due to an accident,
contact Risk Management and Insurance at 732/932-7300 for
claim and disposal information.
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What are state contracts?
The State of New Jersey Purchase Bureau competitively bids
and awards contracts for a variety of goods and services throughout
the year. As an instrumentality of the state, the University
has the option to utilize these contracts when advantageous.
As a standard procedure, buyers check state contract prices
on all requisitions that apply. Frequently, when large quantities
are being purchased with a single transaction, the competitive
bid process can obtain a price better than the state contract.
The buyer is responsible to make the final determination on
using a state contract or using the bid process.
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What is a contract?
A document that describes the conditions of a sale. Four factors
significantly affect the success of a contract:
·
A well-defined item description and/or statement/scope of
work
· Provisions for the appropriate measurements and metrics-service
levels
· A well-constructed agreement
· Appropriate special contract provisions directed
toward the specific service
Requesters
and buyers should ask the following questions as a means of
determining appropriate measures and metrics to include in
service contracts:
·
What variables would indicate that the supplier is performing
well?
· What metrics would you want to report to your management
to indicate that the supplier is or is not performing according
to the agreement?
· What measurements would indicate that the supplier’s
performance is improving or lessening?
In
addition to these success factors, three additional considerations
may facilitate the contract management and motivate the supplier:
·
Length of term
· Termination options
· Options to renew or extend the order
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What
is E&I?
E&I is a buying cooperative that colleges, universities,
hospitals, and health care institutions may join to pool their
buying power. Steelcase furniture is the primary commodity
purchased by the University through distributors referencing
the E&I contract.
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What is the capitalization
threshold?
Effective July 1, 2003, the capitalization
threshold is $5,000.
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What is the invoice
certification threshold?
The invoice certification threshold is $5,000.
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What is the receiving threshold?
The receiving threshold is $5,000.
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What is a requisition?
A
requisition is the first part of the procurement process.
It is the document that the Requester prepares in the RIAS
system that describes the needed goods or services. Once approved,
and if the total amount is $5,000 or less, the Requester can
create a “Quick” purchase order. If the requisition
is over $5,000, the RIAS system will route the approved requisition
to Purchasing. The buyer will then use the requisition to
create a request for Information/Proposal/Quotation or Purchase
Order.
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What is a Request for Information
(RFI)?
A
process used to obtain information about a product or service
and a buy decision will not be made based on the information
received.
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What is a Request for Quotation
(RFQ)?
A competitive bidding process most frequently used to purchase
commodities and items where price is the primary determining
factor for vendor selection.
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What is a Request for Proposal (RFP)?
A competitive bidding process most frequently used to purchase
commodities and services when price is only “one”
of the considerations for vendor selection.
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What is a site inspection?
When it has been determined that the nature of the bid would
best be served with a mandatory site inspection or a mandatory
pre-bid conference, it becomes the buyer's responsibility
to supervise the inspection or conference and to coordinate
the time, date, and meeting place with the department representative
originating the request for the bid.
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What should I do when not
satisfied with a supplier's performance?
Unsatisfactory supplier performance should be described in
writing and forwarded to the appropriate buyer or to the director
of Purchasing for review as soon as the
unsatisfactory performance occurs. A supplier may be disbarred
from future bids or contracts with the University due to poor
performance or other problems as determined appropriate by
Purchasing. For example, failure to correct problems related
to deliveries, invoicing, response time, or quality of work
might result in the supplier being eliminated from future
opportunities to provide goods and services to the University.
A supplier will not be eliminated unless Purchasing has a
written history of unsatisfactory performance. This should
be done in a timely manner and referencing the purchase order
number involved. The final authority pertaining to supplier
disbarment resides with the executive director of Purchasing.
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What
should I do when I cannot resolve a dispute with a supplier?
Upon notification and/or request, the Purchasing department
will assist in the resolution of supplier disputes. Requesters
are encouraged to involve the appropriate buyer early in the
process to facilitate a favorable solution.
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What
is the policy for purchasing furniture items for home
office use?
The Dean or Director should determine the appropriateness of the purchase. There
should be a legitimate business need
for the furniture that benefits the University. If there is no business
need, the IRS could interpret it as taxable income to the faculty/staff
member. Also, if the equipment is capitalizable (over $5,000) it
would need
to be recorded and tagged as University equipment.
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