About Procurement

• Goal - Lowest Cost in Shortest Timeframe

  Public procurement is, by its nature, a very non-intuitive process and requires trained professionals to manage and support. Procurement is a “service” program heavily weighed down with significant regulatory compliance requirements. Complicating this even further is the fact that public procurement in California, and within the UC system, is even more complex than in most other states or University systems.  Many faculty and staff working at higher education institutions may assume the procurement process is focused on getting the lowest price within the shortest time frame.  But in reality, public procurement is based on the foundational assumption that public entities must provide specific, open, and fair opportunities for the private sector to do business with them as the highest priority

• Navigate Unique Terms and Conditions & Purchasing Thresholds

  Purchasing Thresholds

  Understand the financial thresholds that apply to different types of purchases.

  • Threshold 1 - $5,000: Equipment may be inventorial. Equipment may qualify for partial research tax exemption.
  • Threshold 2 -  $10,000: This is the transaction limit for the Procurement Card. A Source Selection & Price Reasonableness (SSPR) form is required for purchases using federal funds - see Forms & Resources
  • Threshold 3 -  $100,000: An SSPR form is required for all purchases. A competitive bidding process may be necessary depending on the nature of the purchase.
  • Threshold 4 -  $700,000: A Small Business Subcontracting Plan is required at $700,000 for federal funds. The Truth in Negotiations Act (TINA) applies at $750,000.

  University of California Terms & Conditions

  The standard UC Terms and Conditions for suppliers are extensive and often introduce unique requirements not found in other organizations, giving experienced vendors an initial advantage. All UCR Purchase Orders must include the University of California Terms and Conditions of Purchase, with additional terms possibly required based on factors like funding source or the nature of goods and services. For detailed information, the latest versions of these terms, and other legal forms for agreements with UC Riverside, visit the UC Policies & Legal Documents page on the UC Office of the President (UCOP) website.

  Insurance Requirements

  The University of California, Riverside (UCR) requires all contractors, vendors, and suppliers who provide goods and services to carry insurance and to provide a certificate of insurance as evidence of coverage. For details visit Insurance Requirements

• Adhere to Public Solicitation Requirements

  Key factors affecting the completion of a purchase include:

  • Public Solicitation Requirements: These include obtaining quotes or competitive bids (A competitive bidding process may be necessary depending on the nature of the purchase for purchases that exceed $100,000).
  • UC Article 5 (Generally Prohibiting Contracting for Services): Recommends against outsourcing services to private vendors.
  • UC Fair Wage/Fair Work Policy: Ensures fair wage standards for suppliers' employees.
  • SB27 of 2023: Defines salary and benefit requirements for suppliers providing services to UC.
  • Small Business First UC Requirement: Applies to all contracts ranging from $10,000 to $250,000.
  • Federal Funding: May impose additional requirements if federal funds are used as the funding source.

  These guidelines must be considered to ensure compliance throughout the procurement process.

  Contracting Out for Services

  The University of California is committed to maintaining a strong in-house workforce and supporting living wages and benefits for employees. To reinforce this commitment, in November 2019 the UC Board of Regents approved Regents Policy 5402, which generally prohibits contracting for services and ensures equitable treatment for any allowable contract workers. Contracting for services where UC employees traditionally perform work is generally prohibited. It can only be allowed under narrow circumstances consistent with UC principles, applicable laws, and collective bargaining agreements.

  Departments considering contracting for services provided by non-university staff for work traditionally performed by UC staff must receive approval from Human Resources. You can also refer to Temporary Workers for approved temporary staffing suppliers.

  Small Business First Program

  UCOP’s Small Business First (SB1st) Program, which became policy on September 1, 2020, aims to support small and diverse businesses through simplified procurement processes - UCOP SB1st Quick Reference Guide.

  Here's what if means for UCR procurement:

  • Non-construction contracts and procurements between $10,000 and $250,000 are to be awarded to certified/registered Small Businesses (SBEs), Women Owned (WBE) and/or Disabled Veteran Business Enterprises (DVBEs), wherever applicable.
  • 25% of UC annual spending must be completed with small and diverse businesses (UCR is currently at 18% of this spending requirement).
  • SB1st uses a streamlined quotation process to increase procurement opportunities for SBEs, WBEs and DVBEs. This direct 'quote-to-award' ability speeds up and simplifies the procurement process and opens doors to larger opportunities.
  • To make an award, only one quote is required for purchases below $100,000, and only two quotes are required for purchases between $100,000 – $250,000 (quotes must be from certified small businesses)
  • Small and Diverse Suppliers- Information for suppliers on how to become certified or registered as a Small Business (SBE), Women-Owned Business (WBE), or Disabled Veteran Business Enterprise (DVBE).

  Any purchase using federal funds may involve additional federal requirements in addition to any state or UC requirements. 

  Federal Funding - Competition Policy

  Definition: Extramural agreements which fund selected campus activities/purchases.
  All policies and requirements apply to purchases funded exclusively by Federal agencies, but only to the extent that such policies and requirements are not in conflict with mandatory requirements of the agencies.

  UG and FAR refer to sections of the Code of Federal Regulations that outline requirements for procuring goods and services with federal funding. Uniform Guidance (UG) applies to federal grants, while Federal Acquisition Regulations (FAR) govern federal contracts. The goal of these regulations is to reduce administrative burden and minimize the risk of waste, fraud, and abuse, while promoting competition and transparency in procurement. Compliance with UG and FAR is essential to maintaining the University’s reputation and continued access to federal funding. These regulations are integrated into many parts of the procurement process and are standardized to streamline operations and automate compliance where possible. The most common impact is the need for competition in purchasing goods and services for federal grants and contracts.

  Departments and Principal Investigators are encouraged to expedite procurement by using existing strategic contracts, which have already been competitively bid. If not, the following competition thresholds apply based on purchase amounts.

  Transactions of Less than One Hundred Thousand Dollars ($100,000)

  Transactions of One Hundred Thousand Dollars ($100,000) or more

  Competition must be sought for any transaction expected to involve an expenditure of $100,000 or more by as broad a solicitation as the situation indicates from sources believed most likely to be able to provide the required goods or services in the required time. Such solicitation shall be from at least three sources when possible and may, in a limited market, include written inquiries to determine supplier interest and capability, with the following exceptions: Personal or professional services (i.e., attorneys, doctors, licensed engineers, etc.). A unique item which is available only from a sole/single source An item which is not unique, but which must match existing equipment located in the same installation or facility and such item is available only from a sole/single source Purchases from a primary Strategic Sourcing agreement (These are exempt since they have already been competitively bid.) Requirements are not to be divided into separate transactions to preclude competition

  Competition is sought by as broad a solicitation as the situation indicates from sources believed most likely to be able to provide the required goods or services in the required time. Generally, such solicitations are drawn from at least three sources when available. Negotiations are permitted for transactions less than $100,000 and may be used in conjunction with competitive quotes/bids. Additional details can be found in the Procurement Services Policies & Procedures

• UC vs. Non-UC Vendor Considerations

  The UC has negotiated many contracts with suppliers for goods and services (some of which are exclusive use agreements). To the extent these can be used, it would significantly speed up the procurement process. While a department might think they can get a better price at a non-UC vendor (which is possible, given the UC contracts are negotiated to apply to each of the UC locations, and costs may vary between them), they need to consider the time and effort to do an individual public solicitation to purchase outside a UC contract, and whether the UC contract is exclusive.

  Learn more here: Supplier with UC or UCR Contract

• PCard Considerations and Usage

  Consider using a Procurement Card (PCard) for small, unrestricted purchases under $10K.

• Special Considerations for Compliance: Commodity-Specific Guidance

  Alert: If you purchase goods or services for your department, you must review the Commodity-Specific Guidance webpage to learn about items with specific ordering processes, preferred suppliers, and required approvals. Refer to the guidelines before processing your order. Do NOT sign a supplier contract. 

  What may seem reasonable and intuitive to you relative to making purchases, may not comply with the UC requirements. For example, the strict fire safety requirements associated with materials used on furniture. All “upholstered furniture” is regulated by the California Department of Consumer Affairs, Bureau of Home Furnishings and Thermal Insulation. In UCR's case, the Fire Safety Division has developed guidelines for public furniture purchases for both sprinklered and non-sprinklered buildings. This is why furniture purchases require Planning and Design review, and Fire Marshall approval.

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  Common Purchases with Additional Considerations/Conditions

  
  IT Hardware or Software 

  Any purchase of IT hardware or software may require additional standard terms and conditions and materially increase the time to acquire the item, given the UC standard terms and conditions defined as Appendix DS (Data Security).  All the more reason to evaluate whether there already exists a UC or UCR contract.

   Inventorial/Research Equipment Considerations

  • Inventorial Equipment ($5K+) is owned by or in the custody of UC Riverside and meets the following criteria:
    • Have a total acquisition cost of $5,000 or greater (total cost includes the costs needed to get the asset ready for use, such as, sales tax, shipping and any installation costs).
    • Is not disposable or consumable.
    • Stand alone.
    • Have a useful life of at least one year.
    • Qualify as tangible personal property (can be appraised for value).
  • If the piece of equipment cost(s) is less than $5,000 in total cost (including sales tax, shipping and any installation costs), it is not considered inventorial equipment and is not required to be entered into UCR’s Asset Management System (AMS) at acquisition. Alternatively, Inventorial Equipment ($5K+) is required to be entered into AMS, assigned a property tag and tracked throughout its life-cycle while in the care and custody of UC Riverside.
  • Inventorial equipment in support of research may qualify for a partial research tax exemption. The reduced rate applies to:
    • Machinery and equipment that will be used at least 50% of the time, and for over one year, in research and development anywhere in California.
    • The exemption includes leased equipment, special purpose buildings, and non-inventorial equipment such as computers that are subject to the same requirements stated above.
  • Because of these requirements, inventorial equipment is restricted, and suppliers must be set up in Oracle to ensure a Purchase Order can be issued for tracking with a property tag. If needed, the buyer will determine the appropriate payment method, such as a PO or PCard.
  • You can indicate qualified tax reductions and exemptions by selecting "Yes" under "Eligible for Reduced Tax" on the Purchase Requisition.
    
    

  Independent Contractors

  • Employees: An employee is an individual who performs a service for the university and is working under the direction and control of the university or its employees. Direction and control can be implied to exist when the employer has the right to control the results as well as the means and methods of the worker. Generally, the employer must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee.
  • Independent Contractor: An independent contractor is an individual engaged by the university to perform a specific function or task, and who is free to perform this function or task at the individual's own discretion with regard to means and methods. The university does not have to withhold or pay any taxes on payments to independent contractors (IRS Treasury Regulation 31.3401(c)-1(b)). Collective Bargaining Agreements and AB 5 place further restrictions on when the University can engage with an individual as an Independent Contractor and not hire them as an employee.
    Departments must use the "Independent Contractor Classification Form" (See Forms & Resources) when evaluating a candidate as an independent contractor. The form must be completed by the requesting department and submitted to UC Riverside's Human Resources for final determination on whether the individual can be hired as an independent contractor, even if the supplier has been previously vetted "Spend Authorized" by Procurement Services. This is necessary because the scope of services provided may vary with each engagement. Procurement Services collaborates with HR to monitor the supplier's service spend, ensuring that the volume and hours of services provided do not necessitate hiring as a limited employee. This process helps the university adhere to IRS requirements for hiring individuals for services.

  Construction Orders - PD&C

  Construction orders are processed by Planning Design and Construction (PD&C), per the UC Facilities Services Manual, Volume 6. This includes painting, installation of flooring, furniture or equipment that is affixed to the floor, walls, or ceiling, replacement of windows and doors, electrical and audio-visual wiring through the wall, plumbing, etc. Do not try to submit the order through Procurement Services, only Maintenance work can be done on a Purchase Order. If you are unsure whether your order falls under Construction or Maintenance, please contact Procurement Services at purchasing@ucr.edu.

• Assistance with Unique Items

  If you want to purchase a unique item (e.g., specialized research equipment), contact Procurement Services at purchasing@ucr.edu to discuss the requirements and agree upon the most effective path forward. There are options for “sole source” selection of a specific supplier, but only under very precise requirements.

Partnering with Procurement - Purchasing Tips

• Supplier with UC or UCR Contract

  Before requesting a new supplier, always check for existing UC or UCR agreements before making a purchase:

  • Benefits: Pre-negotiated agreements offer the best pricing, quality, and service value.
  • Verification: Check for catalog alternatives if a supplier is not listed in Oracle Procurement.
  • More Information: Visit UCOP Procurement – Systemwide Contracts for details on agreements organized by commodity categories, updated monthly. If you need to work with an agreement supplier, not in Oracle, submit a Supplier Request and include the UC Agreement details.

  

• Steps to maximize your purchasing decision
  1. Determine if the item can be purchased with a PCard. If so, use your PCard.
  2. If you believe the purchase is unique (e.g. specialized research equipment, etc.) or over $100K (non-federal funds), contact central procurement at purchasing@ucr.edu to determine if a sole source procurement exception is available, or a bid is required.
  3. If not, then check and see if you can use punchout catalogs. (How to get to the punchout catalogs: From the Oracle home page, select Purchasing Requisition Tile, then click on “all punchout catalogs” link to view all available suppliers)
  4. If not, then check in Oracle for Local (UCR) or UCOP system wide Agreements to see if it’s available there and issue a Requisition (see tip #1). (How to get to the purchasing agreements: From the Oracle home page, select the Purchase Agreements Tile, then from the task icon located on the right-hand side, select manage agreements, fill in at least one of the areas marked with an asterisk, and then search for your supplier.)
  5. If there are no Agreements available at either level, email Procurement Services at purchasing@ucr.edu, and ask them for a Supplier to meet your specific need.
  6. If this is a purchase between $10k - $250k recognize the UC Small Business First requirements to use a small business or disadvantaged veteran business enterprise. 

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  Refer to the Finance Training and Training Resources for assistance with Oracle Procurement.

• Engage Procurement Services

  Procurement Services can guide the Supplier selection process and help your department make sure they are following the correct process and complying with laws and policies. Ask Procurement Services about bidding requirements ($10,000 if using federal funds, or $100,000 if using general funds) before you start the project. This is one of the most important things to do. Think of them as your Purchasing consultants, and that also goes for your Departmental Buyer, if they are properly trained they can provide sound guidance. Your procurement professionals are there to help, they are much more than administrative support.

• Create Requisition when Purchase Need is Identified

  Create the Requisition as soon as the need to purchase is identified, make sure you have provided a description that is clear and could be understood by the average person. Requisitions that say “see quote” or “see attached” for the description will be returned to the department. Avoid using only the part numbers as the description, include the name of the part or piece of equipment with the part number.

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  Refer to the Finance Training and Training Resources for assistance with Oracle Procurement.

• Provide ALL Documents when Requisition is Submitted

  Provide all of the necessary documents at the time the Requisition is submitted. Attach the supplier’s quote, any other competing quote, Certificate of Insurance (COI), and if applicable, the Source Selection Price Reasonableness (SSPR) Form, Independent Contractor Classification Form, applicable checklists, etc. Make sure to select the “Miscellaneous” option when attaching documentation to the requisition. If you need assistance with any of these forms please contact Procurement Services at purchasing@ucr.edu prior to submitting the requisition. The less back and forth that takes place between you and the Buyer, the faster your transaction will be completed.

  For forms for procurement services, see Forms & Resources.

• Orders Involving PHI, PII, or HIPAA

  If your order involves Personal Health Information (PHI) or Personally Identifiable Information (PII) or Health Insurance Portability and Accountability Act (HIPAA), then Appendix DS (Data Security) is required whenever a Supplier accesses, collects, processes, or maintains Institutional Information and/or accesses or provides IT Resources. Other types of appendices may be necessary for specific cases, including Business Associate Agreement (BAA), General Data Protection Regulation (GDPR), or Cloud Services, among others. Please note the supplier you select must at least carry the minimum amount of cyber liability insurance to match their protection level; P2-$1MM; P3-$5MM/$10MM; P4-$5MM/$10MM. The protection level will be determined by ITS, and more specifically the IT Security Officer.

• Departmental Delegated Authority & Unauthorized Purchases

  Know your delegated authority, as no one at the department level, regardless of title, can make commitments on purchases that are over the department’s authorized purchase threshold (currently $10,000), or on contracts that require a signature regardless of the dollar amount, including quotes, proposals, and “click-through software agreements.”. Overstepping your authority may make you personally responsible for the purchase; there is no guarantee that you will be reimbursed or that the reimbursement will be 100%.

  Avoid Unauthorized Purchases

  Unauthorized purchases occur when an individual without proper authority makes a transaction on behalf of the University, uses an unapproved procurement method, or exceeds their delegated authority.

  "After the Fact" Requisitions: Creating a purchase order after goods or services have already been delivered is considered unauthorized. Individuals may be personally liable for charges incurred from unauthorized purchases. The Chancellor may require the individual to pay:

  • The full amount, whenever the purchase is found to cover unneeded items or unauthorized items that cannot be canceled/returned.
  • The amount of any cancellation charges incurred, whenever the unauthorized purchase can be canceled/returned.
  • The difference between the charges incurred and those the University would have incurred if proper methods were used, provided the purchase is found to be otherwise proper.

  If a Department Accepts Responsibility, submit the following:

  1. A purchase requisition with all required information (see Policy 750-60).
  2. Provide proof of purchase and receipt, such as invoices or packing slips.
  3. Submit an Unauthorized Purchase Declaration Form to Procurement Services with a statement explaining the circumstances that led to the unauthorized purchase and the steps taken to prevent its reoccurrence - see Forms & Resources

  If the department does not wish to approve payment, they should contact the Chief Procurement Officer (CPO) in Procurement Services for guidance.

• Let Procurement Services Handle Supplier Negotiations

  Avoid negotiating terms and conditions with the supplier. While it may seem helpful to Procurement Services, it often complicates the Buyer’s negotiations. When suppliers believe they’ve already reached an agreement with someone at the department level, they may become reluctant to renegotiate with the Buyer. 

• No Supplier Commitments until after PO is Issued

  Do not make any commitments to the supplier until the PO is issued by your authorized Procurement Analyst (Transactor) or Procurement Services. Work cannot start until the PO is issued. Do not provide the supplier with the requisition number as a PO; this will cause problems for Accounts Payables and upset your supplier. If we are not able to pay them , they may not be as willing to work with you the next time around. Know the difference: a PO starts with UCRP, and a Requisition starts with UCRR.