Purchase Orders:
| Blanket Purchase Order | |
| Consultant/Independent Contractor Purchase Order (Request for Services) | |
| Notice of Order Expirations:Blanket/Standing Order | |
| Regular Purchase Orders | |
| Standing Purchase Orders |
Blanket Orders 
A Blanket Purchase Order is a type of purchase order designed to consolidate repetitive small purchases from a single supplier. It is essentially a form of open account which is limited in terms of the things which can be ordered, who can place the orders, the period for which it is to be open, and the total amount which can be ordered. This form of purchase order is useful for departments that have repetitive supply needs.
When To Use It
This method of procurement is to be used for repetitive non-capital purchases (e.g., maintenance parts, laboratory animals, gases, etc.)
When Not To Use It
Any department anticipating spending less than $2,500.00 for particular supplies during a one-year period should use the University Corporate Purchasing Card to make such purchases as needs arise. Because only certain types of repetitive purchases are suited to these methods of purchase, and because Blanket Orders do not generally provide for item-by-item priced checks, the issuance of Blanket Orders must be limited to situations where departmental needs clearly justify.
Blanket Orders may not be used to purchase capital equipment.
How To
To have Corporate Purchasing consider a Blanket Order for a particular situation, call Corporate Purchasing to discuss your requirements. A Requisition #312 is required for a Blanket Order. Make sure you specify the type of goods or materials needed, the total estimated dollar value of purchases over a one or two-year period, the date to begin the order, and the University employees authorized to initiate releases under the Blanket Order. Note*** Blanket Orders for supplies < $10,000 will have a two-year termination date.
Generally, Corporate Purchasing seeks competitive proposals or makes comparative market checks before issuing each Blanket Order. The Order specifies the type of materials which are to be furnished, shows dollar limits for both individual shipments and for the total order, and includes a list of the University's employees authorized to request delivery ("release") of materials under the order. The order also indicates the discount that is to apply, sets a schedule for the submission of invoices (usually once a month), and provides a suitable record for audit.
In establishing the Blanket Order, Corporate Purchasing, when possible and practical, seeks proposals from several qualified suppliers and will assign the order to the one whose prices, inventory and services are most likely to satisfy the requirements. If only one supplier is suitable, the Manager makes sure that the supplier's established price lists and discount will apply to each release or shipment under that Order.
Consultant/Independent Contractor Purchase Order (Request for Services)
Personnel Policy/Procedure #122
Employee/Employer Relationships vs. Independent Contractors will govern the decision to determine whether or not an individual may be engaged as a Consultant or Independent Contractor. All staffing requirements are to be considered employee/employer relationships and paid through the University payroll process unless proven otherwise. In unique situations, departments may purchase services from independent contractors (individuals or firms).
When To Use It
- Consultants and Independent Contractors may be engaged when:
- The required knowledge or expertise is not available at the University, or -
- The required knowledge or expertise exists but may not be available to the department, or -
- The services are only required for a one time task and short period of time.
Consultant/Independent Contractor relationship may exist if:
- The individual or firm is engaged to independently perform a specific task or service for a stated rate or total fee.
- The individual or firm is solely responsible for determining the manner and details of performance.
- The University defines the final result or end products only.
- All the individual's or firm's activities are done at his own risk. (The University Will Require Proof Of Minimum Insurance Prior To Performance.)
- The individual or firm may elect to perform the required activities on or off-site.
Procedure
Complete a Requisition #312 at least four (4) weeks before the services are required.
Complete a Request for Services form at least four (4) weeks before the services are required. This document will initiate a review by Corporate Purchasing in consultation with Human Resources and legal counsel as appropriate of the proposed relationship to determine independent contractor/consultant or an employer/employee status in accordance with I.R.S. Regulations, Personnel Policy #122 and Finance Department policy on Taxable Payments to Individuals.
If the Consultant/Independent Contractor is an individual, a W-9 Request for Taxpayer Identification Number and Certification must also be completed.
The Submission Of These Forms Does Not Insure That A Purchase Order Will Be Issued. Departments will be notified if a review indicated that a Consultant/Independent Contractor agreement is not appropriate. If a contract is not the appropriate method for obtaining the services requested, Human Resources should be contacted concerning the employment process. Approval Must Be Obtained Prior To Commencement Of Work. Offers Extended Without Prior Approval Of Human Resources And/Or Corporate Purchasing May Be Resinded
Send the Requisition #312, Request for Services PS42 form, and the W-9 Request for Taxpayer Identification Number and Certification form to Corporate Purchasing at Box 278901.
Corporate Purchasing will review the information submitted, and if the relationship qualifies as an Independent Contract/Consultant relationship, Corporate Purchasing will draft and issue the Purchase Order and Consultant/Contractor Contract.
Notes
The University must retain a sufficient element of control over the level and context of work performed to insure that it receives adequate value for its money. The method described above is necessary to assure that the Consultant or Independent Contractor classification is appropriate, the scope of work is clearly defined, the University receives what it contracted for, the contractor is paid for services rendered, there is no actual or apparent wrong-doing or conflict of interest, and adequate records are maintained to withstand the scrutiny of an audit.
When Not To Use It
It is critical that the designation of Independent Contractor/Consultant is properly applied to avoid IRS tax liability and associated fines. An Independent Contractor/Consultant agreement should not be used when an Employer-Employee relationship exists.
An Employer-Employee relationship exists when:
- The University (which includes) any Faculty or Staff members acting in an official capacity) has the ultimate right to direct and control the way an individual works. The control need not be exercised but is maintained by the University.
- The University controls both final results and the details of when, where, and how the work is done.
- The services are ones that can be performed by an employee.
Examples:
- An individual working for the University is required to comply with instruction about when, where, and how to complete the work.
- An individual is involved in activities that place him/her within the University's general direction and supervision.
- An individual who has established working hours must perform certain tasks at certain times, is paid a regular amount at stated intervals, can be discharged, or has the right to terminate a relationship without incurring liability.
Notes
When an individual is a current employee, the person must be paid through the University Payroll process.
Staff recruitment, selection, and hiring guidelines and procedures are outlined in Personnel Policy #133, "Recruitment and Selection." Call the Employment Center at 275-4989 for the appropriate forms and assistance.
Student employment follows similar guidelines and procedures. Call the Student Employment Office at x52138 for assistance.
Temporary assistance can be used if the position is to be filled for no more than 4 months. Contact the Employment Center at 275-4989.
Call Temporary Services Program/Strong Staffing, a division of the Human Resources Department at x57873 for assistance. Temporary Services maintains a pool of employees for clerical, support services, and professional services. They can also arrange for the hiring of professional employees on a temporary basis through temporary employment agencies.
Time as Reported (TAR). This mechanism can be used when an individual does not have a weekly work schedule or where one has a weekly work schedule of less than 17.5 hours.
Notice of Order Expiration for Blanket and Standing Orders
These orders are designed to consolidate repetitive small purchases from a single vendor. To remind University departments of their expiration, Corporate Purchasing will send a Blanket/Standing Order Notice of Order Expiration to solicit departments to either cancel or renew their Orders with the exception of Maintenance Contract Standing Orders (see below). The Notice is generated by our ESI system and IS SENT OUT ONLY ONCE, APPROXIMATELY THREE MONTHS PRIOR TO THE EXPIRATION MONTH. It is mailed to the requisitioner of the Order. It is important for University departments to respond promptly to the notice.
Maintenance Contract Standing Orders
Follow the same procedure as noted above. It is imperative that departments respond in a timely fashion to avoid cancellation of orders they wish to continue.
For Maintenance Contract information contact the capital group at x 55543. Contracts will generally be negotiated for a period of 1 - 3 years.
How To
When the Blanket/Standing Order Notice of Order Expiration is received, indicate whether the order should be renewed or canceled by checking the appropriate box.
To cancel: Sign authorization line on form and return the Blanket/Standing Order Notice of Order Expiration at least (6) weeks prior to the expiration date (top portion on Notice of Order Expiration).
To renew the Blanket/Standing Order:
Attach completed Requisition #312 per the instructions on the Blanket/Standing Order Notice of Order Expiration. All Requisition(s) #312 must have at least one account number. If the Blanket/Standing Order is to be renewed, please submit a Requisition #312 AT LEAST SIX (6) WEEKS prior to the expiration date (top portion on Blanket/Standing Order Notice of Order Expiration) and comply with the steps outlined on the Blanket/Standing Order Notice of Order Expiration. Include maintenance quotation(s) you may receive from the supplier with your requisition. Quotations will assist us in identifying correct equipment configuration.
IMPORTANT NOTICE: As of January 2, 2002 the following changes were implemented with regard to blanket orders:
- All supply blanket orders under $10,000 will be renewed for 2 years
- All supply blanket orders $10,000 and over will be renewed for 1 year
For further information concerning your Blanket/Standing Order Notice of Order Expiration, please contact the appropriate Manager in Corporate Purchasing.
Regular Purchase Order
The Purchase Order (Regular) is the basic purchasing system for making single instance purchases. It is a contract providing for the delivery by a specific date of listed goods or services at a predetermined price, and subject to University Terms and Conditions.
All Purchase Orders are created and requisitions are tracked on our ESI Purchasing System. Customer Service staff are able to look up a Requisition #312 or Purchase Order and provide UR departments with information pertaining to the transaction's status.
When To Use It
The Purchase Order (Regular) is generally used for transactions, which are over $1,000.00, and for smaller purchases, which entail arrangements unsuited for a Purchasing Card, for instance where, delivery in a single lot may not be possible.
When Not To Use It
A purchase Order (Regular) is not used for releases under existing Systems Contracts (found on Corporate Purchasing's Intranet site) or for small dollar purchases which are more appropriately acquired by using the Purchasing Card or for repetitive purchases which are more appropriately acquired through a Systems Contract, or on a Blanket or Standing Order.
How To
You initiate a Purchase Order (Regular) by submitting a Requisition #312. The Purchase Order (Regular) is reviewed by a Buyer in Corporate Purchasing based on the information provided in the requisition, supplemented by information obtained by the Buyer in checking prices, and obtaining competitive bids.
Generally, purchases of under $2,500 are quickly price-checked with usually several, but at least two suppliers by the Buyer through use of current catalogs, price and discount lists of manufacturers and distributors, or by telephone. For orders, which are likely to cost more than $2,500, it is the Buyer's responsibility to obtain competitive bids, generally in writing from three or more suppliers.
The Purchase Order (Regular) states the details of the Agreement for a particular purchase, lease, or rental as negotiated with the supplier by the Buyer, who is the agent for the department and the University. It includes the quantity, identification of the item(s), specifications, price, delivery date required, and shipping instructions. If the purchase is extraordinary, the University's standard business terms will be enhanced with additional terms and conditions that better protect the University's interests. The Purchase Order (Regular) is a legally binding obligation when accepted by the supplier. Acceptance may be evidenced either by a delivery or by supplier notifying Corporate Purchasing of acceptance of the order. Copies of the Purchase Order (Regular) notify all affected departments of the details of the transaction, including Accounts Payable, which ultimately will receive an invoice for the purchase. Thus, when a department receives a copy of the Purchase Order (Regular), it is an indication that the order has been placed, the terms of the transaction are established, and delivery may be expected on the date indicated. It is important to review the copy of the Purchase Order you receive and if there are any errors, contact the Buyer immediately.
Standing Order
A Standing Purchase Order is purchasing method used in purchasing leases (e.g. auto, property and equipment), and equipment maintenance. Generally speaking, equipment maintenance orders are set up for one year. Standing orders for leases should be created for the term of the lease.
When To Use It
This method of procurement is to be used for the purchase of equipment maintenance and vehicle, property and equipment leases, with scheduled payments over a specified period of time (one, two or three years)..
How To
To have Corporate Purchasing consider a Standing Order for a particular situation, call Corporate Purchasing to discuss your requirements. A Requisition #312 is required for a Standing Order. Make sure you specify the type of services needed and the date to begin the order.
Generally, Corporate Purchasing seeks competitive proposals or makes comparative market checks before issuing each Standing Order. The Order specifies the type of services that are to be furnished and specified payment schedule. Any prepayment discount offered will be noted on the order
In establishing the Standing Order, Corporate Purchasing, when possible and practical, seeks proposals from several qualified suppliers and will assign the order to the one whose prices and services are most likely to satisfy the requirements.