Procurement

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UCR Procurement Services (Campus Purchasing)

UCR Procurement Services, located on the first floor of the UC Intellicenter Building is responsible for general oversight of the purchase of goods and services for the campus. It is Procurement Service's responsibility to ensure that such purchases are made in accordance with the policies and procedures set forth by the Regents of the University of California, the University’s Office of the President, and the laws of the State of California.

Procurement Services also supports a satellite office located in the campus Physical Plant. This operation functions as the department focal point for securing maintenance supplies and services in support of their various service units such as Carpentry, Electrical Shop, Lock Shop, Plumbing, Painting, etc. The Physical Plant buyer can be reached as follows: Marshall Holman, telephone 951-827-4775.

Primary Objective: The primary objective of the UCR Procurement Services Department is to obtain goods and services of superior quality while providing maximum value in return for the resources we commit on behalf of the University.

We are here to help: Our greatest role is to help our clients. We’re here to help them select, source and secure the materials and services they need to do their job. We’re also here to help them understand the requirements of the University in relation to securing these goods, materials and services.

We strive to ensure our clients make fully informed decisions: Often our clients make decisions in isolation without the benefit of historical knowledge, existing contracts, or complete marketplace knowledge. They’ve made their selection based on easily obtainable information or from colleagues. Such selections often are not the best or most cost effective. It’s our job to help ensure our clients make their selections based on current and correct information – that they make a fully informed decision.

We protect both our client’s and the campus’ interests: Everyone recognizes that Purchasing's historical role is to save money, however, there are many more aspects. It is imperative that we constantly monitor and minimize our exposure to risks. Examples of risk include; use of uninsured or under- insured vendors for on-campus work; FOB terms other than “destination”; advance payments; use of unqualified vendors; poor vendor relationships resulting in refusal to do business with UCR; failure to follow rules set in place by funding entities; failure to use appropriate clauses in our contracts. We endeavor take all appropriate actions to ensure we maintain our risks at the lowest reasonable levels based on the exposure and costs involved.

We represent and mediate on behalf of our clients and the campus: Purchasing is the interface between our vendors and our campus clients. Although most purchase transactions are conducted by campus transactors, the ultimate relationship between the campus and vendor is our responsibility. Our role is to cast a positive light on the campus and to represent the campus’ best interests. It is important for us to protect positive vendor relationships and to adjudicate or mediate disagreements between vendors and our campus clients.

We protect our suppliers and service providers too: There are occasions when the University client's demands of a vendor may be unreasonable. In such instances it is Purchasing’s role is to protect the relationship with the vendor and to advise the campus client of our findings while attempting to seek an amicable solution.

We endeavor to ensure ethical and legal processes and practices are followed: Purchase orders are legal contracts and should not be entered into without good purpose, proper approvals and assured funding, with a view to adhering to all policies and procedures. We strive to treat all vendors in a fair and equitable manner. We do not mislead vendors into believing we intend to purchase more than we actually do or disclose one vendor’s quote to another vendor in order to obtain additional price concessions. We act to ensure every vendor has the same right to seek opportunities to sell to the campus customer. All of these functions and roles have a direct relationship to Purchasing's mission statement and to our stated goals and objectives.

Methods of Making Purchases

The authority to purchase goods and services less than $2,500 has been delegated to certain individuals within each department by the Director of Materiel Management, with the transaction mechanism being by way of a DAPO (Department Authorized Purchase Order) or through the use of a US Bank Visa Procurement Card. Procurement Services has also established Agreements with various firms against which authorized department transactors may issue DAPOs, which in some cases exceed $2500 (at the discretion of the agreement owner in Procurement Services).  Orders exceeding this amount must be sent to Procurement Services as a requisition for processing by a professional buyer as a purchase order.

Purchase Requisition: The Purchase Requisition is used to order equipment, supplies or services through the Procurement Services Department. It is an authorization to commit departmental funds to expenditures for requisitioned items. Departments must submit a purchase requisition for a purchase order to be generated. An approved purchase order must be in place PRIOR to committing University funds. NOTE: A purchase requisition is NOT a purchase order and the number should not be used to commit University funds without first submitting a requisition.

The Purchase Requisition authorizes Procurement Services to commit departmental funds to expenditures for services, supplies and equipment. It should be initiated only if there are sufficient funds available in the appropriate account to cover the cost of the item(s). It is used for all types of purchasing transactions except materials or services secured from Physical Plant or other campus service departments. (Orders to campus service departments should be placed in accordance with their procedures.)

Note: Individual department personnel, (faculty or staff) including authorized transactors, do not have the authority to sign vendors forms, terms and conditions or agreements other than standard departmental authorized purchase orders (DAPO's) regardless of cost.  If a firm requires a document to be signed it must be reviewed and signed by a buyer in Procurement Services.

For purchases involving sums between $2,500 and $100,000, bid or quote requests may be solicited based on the judgment of the Procurement Services professional buying staff handling the acquisition. Such bid or quote requests are typically solicited via fax, telephone or email.For purchases involving sums of $100,000 or more, formal competitive bids or proposals are typically solicited from multiple vendors or posted publicly.  (Exceptions to the competitive bid policy require submission of a completed of a "Sole Source" justification form  to the Procurement Services buyer handling the request.  All requests must be policy compliant in order to be approved.  Please read the memorandum on Sole Source Justification for specific policy and procedure guidelines.)

UC has established many Systemwide Strategic Sourcing Agreements. These agreements are for use by UC campuses, medical centers and laboratories. Many of these agreements have been competitively bid and are the "Primary Source" for the specified goods or services provided to UC. Such agreements include a commitment to the supplier to primarily use their products or services. Purchases at any dollar level may be made under these agreements without seeking additional competition. Other UC agreements have been negotiated with various firms and are designated as University Price Schedules. Price schedules are not to be used in lieu of competition, when required by policy or dicated by best practices.

The US Bank Visa "Purchasing" Card has preset limits for transaction dollar amount and number of transactions per day. These cards are also limited to certain merchant category codes. The "US Bank Visa Purchasing Card"  AKA Procurement Card may not be used for travel or entertainment related purchases or for PERSONAL EXPENSES for ANY REASON. Other restrictions also apply. Vendors are urged to check identification of the person presenting the card, verify the signature on the back of the card, and “run” the card to obtain Visa’s authorization. For questions concerning the use of UCR's Procurement Card you may contact Dana Allen, the Procurement Card Coordinator, at 951-827-3008.  For information about the Travel & Entertainment Card (also a US Bank issued card) please contact Accounting. Procurement Services does not manage the Travel and Entertainment Card program.

The Campus telephone directory, which lists all department contacts, may be obtained at the Campus Store at 951-827-2665. You are welcome to contact campus department purchasing personnel directly. The UCR phone directory may be found here: http://enterprisedirectory.ucr.edu/phone/tel_search.show

Purchasing Authority

Purchasing authority is contingent upon adherence to various State of California and UC Regent's Policies and Guidelines, and campus procurement regulations.

The procurement policies we follow ensure our compliance to these regulations and that the University is receiving the best value for its money. It is important that you understand and comply with these policies when obtaining products and services for your department. These policies apply to all funds administered through the University, regardless of source. It is our expectation that staff and faculty will review and follow the formal delegations and published guidelines.

High Value Purchasing Authorization: In general, Campus Buyers (located centrally in Procurement Services) are delegated the authority to issue all purchase orders valued at $2,500.00 and above to specific dollar levels, by the Materiel Manager.

Low Value Purchasing Authorization: The authority to purchase goods and services less than $2,500 has been delegated to certain individuals within each department. Orders exceeding this amount must be sent to Procurement Services for processing by a professional buyer. Individual departments do not have the authority to sign terms and conditions or agreements other than standard departmental authorized purchase orders (DAPO's) regardless of cost.

Authority to Contract

You must have specific authority to obligate the University to pay for goods and service.  If you don’t have contract authority in writing or specifically cited in delegations you don’t have the authority.

Please be advised that only authorized agents of the University with the requisite delegated authority to contract are permitted to make financial commitments to vendors or sign legally binding purchase documents.

The authority to contract and commit the University to a purchase for goods and/or services is different than the business authority to approve the expenditure of funds. Contract authority deals with agreements and documents that are legally binding and are enforceable by law, whereas business authority is tied to making business decisions and internal agreements within the University.

Once the decision to make an expenditure of funds is approved by a department’s financial officer, a requisition is submitted in accordance with Campus Policy 750-60. It is then and only then that the transaction may be carried out by an authorized agent of the University possessing delegated purchasing authority (See Campus policy 750-63).

Unauthorized Purchases

Unauthorized purchases are purchase transactions that are either entered into by an individual that is not authorized to contract on behalf of the University, or entered into by an individual normally authorized to contract, but who uses an unauthorized procurement method, or exceeds their delegated authority. That authority is limited to Procurement organization buyers and contract administrators to assure compliance with federal and state law, University policy, and prudent business and financial practices.

All University purchases must be authorized in advance, via a written University of California Riverside Purchase Order, Department Authorized Purchase order (DAPO), or University Procurement Card.  Purchases made by unauthorized individuals or  via non approved methods may not be honored for payment at the discretion of the Materiel Manager.

Return of Goods

If it is necessary to return goods to a vendor, it is the department’s responsibility to make the arrangements.  Contact the vendor for specific information pertaining to the vendor’s return goods policy.

Typically vendors’ need to know the reason for a return before they are willing to take it back.  Once a vendor has agreed to the return they usually issue a Return Goods/Merchandise Authorization (RGA/RMA) number.  The RGA/RMA is referenced in the return documentation and on all associated correspondence.  

Vendor return policies often include a restocking fee or disallow returns on items that require refrigeration or have limited shelf life.  If in advance of a purchase you have concerns on a vendor’s return policy, contact Procurement Services for assistance in working to get restocking fees waived or reduced.

If the purchase was made against a purchase order or DAPO, the buyer or purchasing assistant who placed the original order needs to be notified so that a change order can be issued and credit lines may be applied.

Sales Tax

Keep in mind that UCR typically pays sales or use tax on purchases of tangible property, such as equipment and supplies.

Vendors often fail to include taxes in quotes. Procurement Services will build in sales or use tax unless the department identifies the purchase as for resale, or that the purchase is against a Federal Contract whereby the title is retained by the Federal government.  For vendor's who do not collect CA sales tax, UCR Accounts Payable will accrue the use/sales tax and pay it directly to the state.

Sales Tax: Retail sales to UCR by California retailers are subject to sales tax. The obligation for the payment of California sales tax lies with the retailer, not the purchaser. State laws require the retailer to charge sales tax to the purchaser at the time of sale.

Use Tax: A use tax obligation arises when UCR purchases a commodity which is taxable under California State Sales and Use Tax Law, but for which the retailer has not billed, or the retailer is not licensed to collect California sales tax. The current rates for use tax are the same as for sales tax. The liability for payment of use tax belongs to the purchaser (UCI).

Purchases for Resale: No sales or use tax is imposed on purchases made for resale. The UCR resale permit number must be provided to the seller when material for resale is purchased. Purchase orders that are non-taxable will indicate the UCR resale permit number.

Federal Contract and Grant Purchases: University purchases funded by a federal contract or grant are not taxable if title to the goods/services vests in the federal government. Each contract or grant and the regulations of the related agency should be reviewed to determine which purchases are subject to sales or use tax.

Requests for Bid/Proposal

Requests for Bid or Proposal, for purchases of $100,000.00 or more, contain detailed specifications and requirements and are awarded to the responsive/responsible bidder providing the lowest overall cost to the University. In determining whether a bidder is responsive and responsible, such things as thorough completion and submission of their bid response, their facilities, capacity, experience, previous work, references and financial standing are taken into consideration. Award of a contract pursuant to a request for bid or proposal may be made on the basis of cost alone or on a cost per quality point basis. The method to be used to make award will be stated in each request for bid/proposal. UCR reserves the right to reject any or all bids.  NOTE: UCR DOES NOT MAINTAIN ACTIVE BIDDERS LISTS

POLICY: Pursuant to University of California system-wide policy as stated in UCOP Business and Finance Bulletin (BUS-43) http://policy.ucop.edu/doc/3220485/BFB-BUS-43, Negotiation is allowed for transactions below $100,000, however, competition is sought if the Materiel Manager determines that the competition is necessary to develop a source, validate prices, or for other compelling business reasons. Negotiation may be used in conjunction with competitive quotations as well as in situations when competition is not obtainable or required.

The Public Contract Code of the State of California (Public Contract Code Section 10507, et seq.) requires competition must be sought, for any transaction expected to involve an expenditure of $100,000 or more for goods or services, other than personal or professional services, unless it is determined that a brand or trade name article, thing or product, or proprietary service is unique, available only from a sole source, or is designated to match others used in or furnished to a particular installation, facility, or location. Requirements shall not be artificially divided into separate transactions to avoid competition.

Contract Types and Responsible Campus Office

^{* Lease Agreements, License Agreements, easements and other agreements associated with real property (other than agreements for temporary use of land by researchers, classroom space at school districts, use of convention centers for conferences, and use of summer camps) are handled by the Office of Real Estate Services.}