Policy: VII.A.7x2 (inactive)
Issued: January 4, 1994
Owner: Director of Procurement Services
Latest Revision: May 15, 2000
TYPES OF PURCHASES WHICH REQUIRE SPECIAL PROCESSING
The goods or services outlined in this policy require special processing without regard to dollar amounts. Additional information on procurements with special considerations is outlined in Section 3 of the Purchasing Manual for Institutions of Higher Education and Their Vendors.
2.0 Policy [Top]
2.1 Special Approvals
Approval for certain services is required by law, regulation, directive or appropriation. Services requiring other State agencies' approval or concurrence are as follows:
- Insurance - Department of General Services/Division of Risk Management.
- Capital Outlay Related Services - Department of General Services/Division of Engineering and Buildings.
- Banking and Bank-Related Cash Management Services - Department of the Treasury, Division of Cash Management and Investments.
The acquisition of aircraft requires the approval of the Director of the State Department of Aviation.
2.3 Approval for Large Dollar Purchases
University policy requires that requesting departments obtain Board of Visitors approval for certain large purchases. In these instances, the Board is not concerned about the method of procurement, but rather in approving both the purchase and the execution of the contract. Board of Visitors approval is required when the total price of a contract for goods and or services exceeds $5,000,000 during the life of the contract.
Procurement Services or the requisitions department may prepare the resolution for Board of Visitors approval. Departments anticipating a procurement of this size should plan to seek Vice Presidential and Board approval well in advance of the date the contract needs to be finalized.
See also Procedure 7-9, "Obtaining Board of Visitors Approval for Large Purchases."
See also Policy VII.R.1, "Contracts."
2.4 Carpets, Draperies and Furniture
Requests for the purchase of carpets, draperies, and furniture must be processed on a purchase requisition. This allows us to review the purchase to ensure they meet all applicable fire codes and State requirements.
Furniture is defined as an item needed for convenience in an office. It is a movable article needed to make an office or living space functional and it includes:
Tables (all types)
Seating (all types)
Furniture does not include accessories such as pictures, frames, lamps, hardware for office systems, plants, or metal mini-blinds
If the procurement of conference services includes the provision of catered meals, audio visual equipment, etc., and the value of these other included services exceeds the $30,000 level for which competition is required, the entire procurement, including the use of the space, is purchased as a package based on its anticipated value. Departments submit these types of procurements on a purchase requisition to Procurement Services for processing.
In the event that there is a compelling reason for selecting a particular hotel or motel as the site for a conference, meeting, or training session, such as location or the only one that can provide the needed facilities during the time frame in which the event is to be held, the University handles the procurement on a sole source basis. In this case, the use of non-competitive negotiation to secure the best price is required.
1. Research and Capital Equipment. Special approvals may be required by the Office of Sponsored Programs or Property Accounting for these categories of equipment.
2. Equipment Financing. Departments have several options for financing equipment.
See Also Policy VII.R.6, "Equipment Financing."
3. Used Equipment. Used equipment is defined as equipment previously owned and used and offered for sale under "where is, as is" conditions. It does not include demonstration or factory rebuilt items marketed through distributors.
2.7 Individual Services
Contracting for the services of individuals should be treated the same as any other purchase. However, contracting with individuals presents certain compliance related matters with the Federal Internal Revenue Service concerning withholding and Social Security taxes when the individual performs under the supervision and control of the University. An employer - employee relationship has been determined to exist in such cases, and subjects the institution to tax liability and employment obligations established by State law or gubernatorial policy. Procurement and payment of individual services contracting must be handled in accordance with Chapter VI, and specially Policy VI.A.9, "The Use of Payment Voucher Forms for Demand Payments and Reimbursement of Individuals," and The State and Local Government Conflict of Interest Act.
2.8 Information Technology
Information technology projects which are expected to cost at least $1 million must be approved by the Secretary of Technology prior to the purchase order being issued or a contract being signed. Procurement Services and ITC work with the proper University officials to coordinate these approvals for the University.
Printing is the production of printed material by means of inked type or printing press or by similar means.
1. Ownership of Artwork, Negatives, Etc. All artwork, negatives, dyes, overlays or similar material used to print a job is the institution's property and must be returned to the institution upon completion of the job.
2. Copyright. No vendor may copyright any work produced for the institution without prior written consent. Departments should inform vendors of our policy on retention of ownership and copyright and ensure that the vendor agrees to these conditions prior to having the vendor perform the work.
3. Color and Ink. Except for promotional publications and diplomas or where the use of color is essential to support the purpose of the publication, all printing must be one color. Examples of supporting the purpose of the publication are: maps, aeronautical charts, or pictures illustrating the difference between healthy tissue and diseased tissue or the use of color blocks or words on a form to highlight or separate critical areas.
4. Multi-Color Printing. Multi-color printing is the use of more than one ink color in the printing process. Under a directive form the Joint Legislative Audit and Review Committee (JLARC), multi-color printing can be used only if the printed piece meets all of criteria one through four or criteria number five:
(1) produced for institutions with specific statutory authority to advertise or promote
(2) designated for specified audiences outside of government
(3) intended to yield significant benefit to the Commonwealth and are produced for use in a competitive environment which may require multiple colors and other special features
(4) intended for use in a competitive environment
(5) supports the purpose of the publications (e.g. maps, illustrations in medical publications, critical blocks on forms, etc)
A Request to Use Multi-Color Printing must be completed, approved by the Department head and maintained with the procurement documents in the department.
5. Official State Stationery, Letterheads, and Envelopes: Standardization of "Official State Stationery" was established in November 1974 by Executive Order. Institutions of higher education are exempt, as they are permitted to continue the use of their present seal and design. Institutions' presidents or chancellors may use letterhead and envelopes with a 25% rag content. Where necessary, institutions with policy and advisory boards or commissions may include the names of such board or commission members on the official letterhead or may use separate letterheads for the board or commission, and the institution. Engraved stationery may not be used. Any deviation from these specifications and requirements must be approved in advance by the Director of Procurement Services
6. Gift Cards, Holiday Cards, or Calendars.
7. Procurement Services supports the use of University Printing Services. See also Policy VII.B.1, "Use of University Printing Services."
2.10 Radioactive Materials and Hazardous Chemicals
Requests to purchase radioactive material and hazardous chemicals are processed by Environmental Health and Safety Office.
Purchase of vehicles requires the submittal of a state CP-15 form with a purchase requisition. Requests to purchase or lease vehicles must have the approval of the Director of Parking and Transportation, the Executive Vice President and Chief Operating Officer before Procurement Services can process the purchase requisition.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
Previous version in effect from 1/4/94 to 5/15/00 available in policy archive.