Purchasing Policies and Procedures

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1 Purchasing Policies and Procedures

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3 The College of New Jersey Purchasing Department has the exclusive responsibility for entering into contracts or issuing purchase orders on behalf of the College. Using the guidelines established by the State College Contract Law and authorized by the Board of Trustees of the College, Purchasing facilitates the procurement of goods and services and ensures that all purchases are in compliance. Additionally, the Purchasing Department creates official purchase orders, issues departmental purchasing cards ("P" cards), records all travel requests, issues Travel ("T") numbers, and assists employees with travel reimbursements.

4 Request for Quote Used to request the Purchasing Department to conduct competitive bidding for goods or services.

5 Purchase Order Requisition Used to request a purchase order be issued to a particular vendor The purchase order establishes a contractual relationship between College and vendor Obligates budgeted funds before they are actually paid to vendor

6 Check Request Used for approving payment to vendors for goods and /or services that have been received. Include original invoice. If applicable, include purchase order number.

7 Purchases up to $1,000 Purchases over $1,000 up to $5,000 Purchases over $5,000 up to $28,300 Purchases over $28,300

8 Purchases up to $1,000 Price competition is not required for purchases of goods or services up to $1,000. Payment to the vendors can be completed using the Accounts Payable Check Request Form. The completed Check Request Form must be signed by the Department Chair/Director and forwarded with the original invoice to the Accounts Payable Department. W-9 is required

9 Purchases over $1,000 up to $5,000 Price competition is required for purchases of goods or services over $1,000 up to $5,000. Departments requiring the goods or services must solicit a minimum of 3 written quotes. Payment to the vendors can be completed using the Accounts Payable Check Request Form. The completed Check Request Form must be signed by the Department Chair/Director and forwarded with the original invoice (and quotes) to the Accounts Payable Department.

10 Purchases over $1,000 up to $5,000 (cont d.) A purchase order is not required to be issued prior to purchase being made. However, some vendors will request a purchase order prior to service being rendered. W-9 9is required If purchase exceeds $4,245, vendor must be registered with NJ Division of Revenue

11 Purchases over $5,000 up to $28,300 Price competition is required for goods or services over $5,000 up to $28,300 Departments requiring the goods or services must submit a completed Request for Quotation form. The Purchasing department will solicit written quotations and coordinate the awarding of the contract with the requesting department and issue a purchase order.

12 Purchases over $5,000 up to $28,300 (cont d.) Payment to the vendors can be completed using the Accounts Payable Check Request Form. The completed Check Request Form must be signed by the Department Chair/Director and forwarded with the original invoice (and purchase order number) to the Accounts Payable Department.

13 Purchases over $28,300 Price competition is required for goods and services over $28,300 Departments requiring the goods or services must submit a completed Request for Quotation form. The Purchasing Department will solicit open and competitive advertised bidding. Under State law, communication with potential bidders during the bidding process is restricted to the Purchasing department and must be in writing. Estimated timeframe = 60 days

14 Sole source Good or service is only available from 1 vendor Justification to be submitted with purchase order / check request Emergency Per state law, contracts/purchases may be awarded without bidding when an emergency affecting health, safety, or welfare requires immediate delivery of goods or services Purchase can be approved by Department Chair/Director; Purchasing department should be notified as soon as possible Justification / Explanation to be submitted with payment request

15 State contract Vendors under state contract can be awarded contracts in lieu of competitive bidding. s.htm

16 Waivers (under $28,300) The Treasurer or Associate Treasurer can permit The College to bypass bidding processes in order to procure specific goods and services. There are 27 categories of exceptions that may warrant a waiver (see website). Despite a good/service qualifying for a waiver, it does not eliminate the need for detailed explanation as to how the waiver will be of benefit to the College. Although these waivers are not approved by the Board, they are reported to the Board at year s end.

17 Board Waivers (over $28,300) Under the State College Contracts Law, the Board of Trustees can permit the College to bypass the publicly advertised bidding process in order to procure specific goods and services. There are 27 categories of exceptions that may warrant a board waiver (see website). Despite a good/service qualifying for the waiver of advertising, it does not eliminate the requirement for proposals whenever possible, nor does it eliminate i the need for detailed d explanation as to how the waiving of advertising will be of benefit to the College.

18 Board Waivers (cont d.) Board of Trustees Waiver Requests should be addressed to the Treasurer from the appropriate Cabinet Officer justifying the circumstance of the waiver request. The justification should include the following: Description of good or service Rationale for waiver of advertising Number of vendors contacted, including name and amount of quote

19 Despite these exceptions, it does not eliminate the need to issue a purchase order if the good or service is in excess of $5,000.

20 Contract subdivision is prohibited Per state law, no purchase that is single in nature shall be subdivided Ex: You are purchasing 2 of the same items (i.e. microscopes) and each costs $600. Quotes are required as this purchase exceeds $1,000. Ex: You are purchasing 2 related items (i.e1 telescope and 1 carrying case) and each costs $600. Quotes are required as this purchase exceeds $1,000.

21 Recurring purchases Whenever possible, annual competitive bidding should occur so that a purchase order / contract can be issued to the successful bidder.