Purchasing Goods and Services - Authority and Liability

        1.  University's Authority and Liability

The campus President has been given the authority by the CSU Chancellor to procure goods and services necessary to achieve the goals and objectives of the University.  In order to facilitate the needs of the University and ensure that the University is complying with the regulations and guidelines established by the CSU and the State, the campus President may delegate this authority, within certain limits and in writing (as required by the CSU), to specific individuals on campus.  Only the Vice President, Finance and Administrative Services, the Associate Vice President for Finance and Business Services, and the Director of Procurement & Support Services (or his/her designee) have the authority to enter into and execute a contract which commits University resources. 

All contracts between the University and another legal entity are to be prepared and executed in written form.  The University will not accept, as legally binding, any oral agreement that is not finalized and executed in written form as prepared, or authorized to be prepared, by Procurement & Support Services.

        2.  Employee Personal Liability

On February 4, 1991, the Chancellor’s Office issued a memorandum under Vice Chancellor Herbert L. Carter’s signature which stated, “Effective immediately, any CSU system-wide employee who authorizes work to be commenced before an officially signed contract is in place will be held personally financially responsible for any expenditure related to such contract”.

Cal State San Marcos has elected to implement this policy in keeping with its obligation to protect the resources of the University and to provide for fairness in its procurement activities.  CSUSM defines “work” as any transaction requiring the University to spend or receive funds, provide or receive services, and/or otherwise commit its resources.  Any employee who has questions regarding personal liability when involved in University-related purchasing activities should contact Procurement & Support Services at (760) 750-4555.
 

        3.  After-The-Fact Transactions

After-the-fact transactions occur when departments place orders or make commitments directly to vendors without using an approved purchase methodology.  After-the-fact transactions are highly discouraged and may not be honored in accordance with Chancellor’s Office policy on liability as stated in I.A.2. If a purchase takes place without prior approval, written justification is required before payment will be made and should address the following:

     a.  The reason why normal purchasing procedures were not used, including the detailed facts  
           that constituted the emergency.

     b.  A statement outlining the steps taken to avoid after-the-fact transactions in the future.

     c.  Invoice number and date event occurred.

     d.  Proof of delivery or services performed in the form of a packing slip, freight bill, or invoice.

 
         4.  Conflict of Interest

                 a.  It is unlawful for any person to utilize any information, not a matter of public record, that is 
                      received by that person by reason of his or her employment by, or contractual relationship
                      with the Trustees of the California State University, or an auxiliary organization of the 
                      California State University, for personal pecuniary gain, not contemplated by the terms of
                      the employment or contract, regardless of whether the person is or is not so employed or 
                      under contract at the time the gain is realized.

                  b.  Consulting agreements must be in compliance with conflict of interest requirements as
                       specified in CSU Policy Section 412.10, http://www.calstate.edu/csp/crl/policy/policy5-20-
                       05.doc#_Toc104261794.

                  c.  No CSU employee may make or participate in the making of any decision in which the         
                       employee has a personal financial interest.

                  d.  Employees designated in the CSU Conflict of Interest Code must disqualify themselves 
                       from making or participating in a decision which would have a material effect on a personal 
                       financial interest.

      e.  Employees designated in the CSU Conflict of Interest Code may not accept any gift of
           more than $250 in any calendar year from any source which is disclosable in the CSU
           Conflict of Interest Code.  In addition, such employees must disclose gifts totaling $50 or
           more from any single source during any one reporting period for California Form 700,
           Statement of Economic Interest.
 

Mandated Requirements

        1.  Disabled Veteran Business Enterprises (DVBE)

State law requires State agencies make efforts to achieve a goal of three (3) percent participation for disabled veteran business enterprises (DVBE) in State contracts. To view the California State University's DVBE requirements, access the CSU website: http://www.calstate.edu/csp/crl/policy/policy5-20-05.doc#_Toc104261710
 

        2.  Small Business Procurement and Contracts Act

The Government Code provides for small business preference where capability and quality are equal. To receive the small business 5% preference, a binder must be currently certified by the State of California and request the preference on each bid or be a non-small business bidder committing to no less than 25% small business subcontracting participation. To view the California State University's Small Business Procurement Requirements, access the CSU website: http://www.calstate.edu/csp/crl/policy/policy5-20-05.doc#_Toc104261717
 

        3.  Ethnicity Race and Gender in Contracts

   a.  Requirements:
       
        Campuses shall collect the voluntary information prescribed on the "Voluntary Statistical
        Data" form on all procurement transactions specified in the Reporting Section below. The
        Voluntary Statistical Data form can be found in the Contract Resources Library.
 

   b.  Special Conditions:
 

        Awarding departments are prohibited from using the data compiled under this section to
                    discriminate or provide a preference in the awarding of any contracts. Contractors are
                    prohibited from using the information compiled under this section to discriminate or provide 
                    a preference in the solicitation or acceptance of bids for subcontracting, or for materials or
                    equipment, on the basis of race, color, sex, ethnic origin, or ancestry.

 
        4. Recycled Product Acquisitions

Fitness and quality being equal, purchase preference shall be given to recycled products whenever such products are available and the cost of such products is no greater than that of their non-recycled counterparts. To view the California State University's Recycling Requirements, access the CSU Web site: http://www.calstate.edu/csp/crl/policy/policy5-20-05.doc#_Toc104261754
 

        5. Sole Brand Procurement

A sole brand procurement is prohibited except in the following instances:

       a. The sole brand product is unique and essential to the CSU's requirements, thereby  
           precluding consideration of a product manufactured by another company, or

       b. The sole brand product is required to match other similar product already in place and the
           use of an alternate product would cause the CSU to incur substantial additional costs.

       c. The sole brand product is required for the immediate preservation of the public health,
           welfare, or safety, or the protection of CSU property and programs.

       d. The determination as to whether a procurement has been adequately justified in writing
           for a sole brand award shall be made by the designated campus authority.
     

         6. Sole Source Procurement

             Except where a contract is necessary for the immediate preservation of the public health,
             welfare, or safety, or the protection of CSU property and programs, a sole source procurement is
             permissible only when a determination has been made and approved in writing, that only one
             sole source exists for the required product or service.

             A requirement for a proprietary (or sole brand) item does not necessarily justify sole source  
             procurement, as more than one potential bidder or supplier may exist who can supply that item.

             The sole source request must clearly demonstrate:

                 a. That there is only one source or only one supplier that can provide the goods or services in 
                     accordance with the requirements of the CSU, or

                 b. The existence of limited rights in data patent rights, copyrights or secret processes makes 
                      the supplies or services available from only one source (however the mere existence of 
                      such rights or circumstances does not in and of itself justify a sole source procurement).

                      Addition of new work that was not within the scope of or incidental to, the original contract
                      scope of work, either as part of the base contract or as an option, is subject to sole source 
                      requirements.

                     The determination as to whether a procurement has been adequately justified in writing for
                     a sole source award shall be made by the designated authority. Campus sole source
                     requests for acquisitions $100,000 or more must be approved by a campus authority no
                     lower than Vice President for Administration/Finance. For sole sources of $250,000 or
                     greater, a copy of the requisition, the justification, and other pertinent documentation must
                     be forwarded to the Chancellor's Office CS&P for review and final approval. 

       1.  Using Purchase Requisitions
 

Departments prepare an on-line Purchase Requisition in order for Procurement & Support Services to obtain goods and services on their behalf.  It is the responsibility of the originating department account manager to ascertain the appropriateness of each transaction against the funding account. 
 

        2.  Purchases Not Using Purchase Requisitions

Goods and services that do not require the completion of an on-line Purchase Requisition but require other forms/instructions are transactions for:
 

        3.  Foundation Purchases
 

CSU San Marcos Foundation has established policies and procedures for purchases using Foundation-managed funds.  Procurement & Support Services does not process Foundation requisitions.  Please direct questions regarding Foundation procurements to (760) 750-4700 or visit their website at:  http://www.csusm.edu/foundation/.

 
        4. Planning Purchases

The following goods and/or services require review and authorization from other campus departments:

 

        5. Trade-In of CSUSM Bar-Coded University Property

It is the responsibility of the department to notify the Property Office of all transfers of CSUSM bar-coded property; see Property Accounting procedure.
     

         6. Price Range Implications
 

    The procurement process is driven by the type and individual dollar amount of the items listed 
    on the Purchase Requisition.  These factors determine the method that Procurement &
    Support Services will use to obtain the items and/or to verify pricing.  Procurements over
    $10,000 require a written summary from the buyer to the file.

    The State requires that the CSU award to the lowest, responsible bidder meeting the required
    specifications.  The following details the methodology used based upon dollar amount:

 

    CSUSM is committed to a policy of promoting fair and open competition for the acquisition of   
    commodities and services.  Any commodity or service may be subject to competitive
    solicitation when it is determined to be in the best interests of the University.

 

    Exceptions to Competitive Bidding:

   The following transactions are not required to be competitively bid and do not require a sole   
   source approval:

       a.  Emergency contracts which are necessary for the immediate preservation of the public
            health, welfare, or safety, or the protection of CSU property and programs;

       b.  Contracts for the work or services of a state, local or federal agency, the University of
            California, a California community college, a foundation or auxiliary organization
            incorporated to support the university, or a Joint Powers Agency;

        c.  Contracts for which only per diem and travel expenses are paid and there is no payment for
            services rendered;

        d.  Contracts for the express purposes of obtaining non-CSU legal counsel or obtaining expert
             witnesses for litigation (either of these must be submitted to the Office of General Counsel
             for approval);

        e.  Contracts with business entities operating handicap workshops as specified in Policy
             Section 219;

         f.  Equipment maintenance contracts where there is only one authorized or qualified source
             required by the equipment manufacturer for the preservation of equipment warranty;

        g.  Proprietary software maintenance, annual license renewals, and/or upgrade contracts;

        h.  Utilities contracts where there is no competition because they are solely authorized to
             provide service to the geographical area;

         i.  Public entertainment contracts for campus-sponsored fairs, expositions, exhibitions, plays
             and concerts;

         j.  Contracts for conference or meeting facilities, including room accommodations for
             conference attendees;

        k.  Educational materials and information access resources related to campus library services
             as specified in Policy Section 303.04;

         l.  Personal property acquisitions as specified in Policy Section 301A, Bid Thresholds for
             Personal Property;

        m.  Procurement of Services as specified in Policy Section 401A, Bid Thresholds for Services;

         n.  General Services Administration Pricing Schedules in accordance with Policy 204D;

         o.  California Department of General Services Multiple Award Schedules exempted by DGS
              and listed at http://www.documents.dgs.ca.gov/pd/masters/checklist.pdf;

         p.  Contract amendments for time extensions, with no additional dollars being added;

         q.  Contract amendments to exercise options that were part of the original contract or that
              were part of a previously approved amendment to the contract;

          r.  Contract amendments that are within the scope of or incidental to the original contract
              scope of work;

          s.  Approved Sole Brand procurements where there is only one source for that product;

           t.  Contracts for professional examinations and memberships;

           u.  Contracts for goods or services produced by Prison Industry Authority.

Incoming requests are prioritized by the date requisitions and all supporting documents are received.  The following are estimated processing times:  

Depending upon the complexity and value of the materials and/or services required,   University purchases may require a formal bid process.  In such cases, Procurement & Support Services coordinates with departments to develop specifications, advertise, establish timeframes, and manage all activity involved with a formal bid to ensure that the University is in compliance with all State, CSU and Federal regulations. 

Bid lead times for all purchases over $50,000 is approximately 1 – 2 months for all methods of procurement, including Invitation for Bid (IFB) and Request for Proposal (RFP), and is dependent on the provision of complete information.

Procurement & Support Services will place orders based upon the information the department provides on the requisition.  Departments should verify that the information submitted is complete, the specifications are adequate for the department’s needs, and the information is understandable and legible.  Any additional documentation such as the original vendor order form, flyer, brochure, schematic, advertisement, or any other document that is the basis for the request should be submitted with the requisition.
 

 a.  All vendors, except for the University's contracted office supply vendor and those specifically
     stated otherwise and approved by Procurement & Support Services, are instructed to ship
     goods directly to:

Shipping & Receiving
Cal State San Marcos
441 La Moree Road
San Marcos, CA  92078

 b.  The contracted office supply vendor delivers items directly to the ordering department unless
      stated otherwise.

 c.  When necessary, some items may be picked up from the vendor by the requestor.  In such  
      cases, it is necessary for the requestor to:

        i)  Ensure that at the time of pick up, the vendor has the original or copy of the Purchase
            Order or authorized purchase order number.

       ii)  Attach packing slips to the invoice and send to Accounts Payable.
 

      Requisition cut-off dates may be established each fiscal year to ensure that all orders citing a
      particular fiscal year’s funds are processed and encumbered appropriately.
 

Campuses shall give written notice at least quarterly to the Department of Fair Employment and Housing, Office of Compliance Programs, of all contracts (but not purchase orders) over $5,000. For each contract awarded, the notice shall list the name, address, and telephone number of the contractor; the federal employee identification number; the State contract identification number; the date of contract award; the contract amount, the project location; the name of the agent who signed the contract, the name of the contract awarding campus, and the name of the officer signing on behalf of the campus. A reporting form for this purpose, State Standard Form 16, may be obtained from the DGS Forms Management Center. The quarterly list may be appended to the form.  Report due date can be found at:  http://www.calstate.edu/CSP/reports.shtml
 

For all purchases of goods, campuses shall collect a copy of the vendor’s California retailer’s seller’s permit or certificate of registration.
 

Purchasing Specific Types of Goods and Services

        A.  Contracted Office Supplies
 

       Office supply procedures are subject to change; therefore, please reference “Office Supply    
       Operations Guide” for current information available at:

       http://www.csusm.edu/procurement/forms_procurement/OfficeSupplyOperationsGuide.doc

       Any CSUSM staff member who has the responsibility for ordering office supplies receives Office
       Supply web site training from an internal department user.  Employees will be granted web
       site access upon successful completion of training and submission of an "Office Supply
       Agreement" to Procurement & Support Services.

       http://www.csusm.edu/procurement/forms_procurement/OfficeSupplyAgreement.doc

        B.  ProCard
             

       For repetitive low dollar procurements, a system-wide procurement card is available for use by 
       campus departments.  By signing the ProCard Agreement, Cardholders and Approving Officials
       verify that they have read, understand, and accept their responsibilities as outlined in the
       ProCard Manual.  Please see the ProCard website at:  
       http://www.csusm.edu/procurement/procard/procard.htm or contact Procurement & Support
       Services at (760) 750-4555 for more information on this option.

        C.  Direct Payment Process

        In a continuous effort to streamline the procurement process, Procurement & Support Services  
        has determined that some items do not benefit from the issuance of a purchase order and will   
        be processed using the Direct Payment method.  Required forms should be submitted directly to
        Accounts Payable.  Please refer to Direct Payment Transaction Guidelines.
 

 
        D. Advertising

1.  Administrators and Staff

Advertising for administrative employment (administrators and staff) with the campus is to be submitted to Human Resources and Equal Opportunity for review of compliance with University, State, and Federal regulations, and subsequent placement of the advertisement.

 2.  Non-Employment and Faculty Searches

 University offices that require the placement of non-employment advertisements and faculty 
 searches in various publications or other mediums should follow the Direct Pay Procedure.

        E. Modular Furniture

      Planning Design and Construction establishes the campus standard for modular furniture.  
      Requests are to be reviewed and coordinated by Facility Services, who works with Procurement &
      Support Services to facilitate the design, purchase, and installation of campus modular furniture. 
      This applies to new or reconfigured systems, and moves of all campus modular furniture.

1.  Review and Authorization by Facility Services

      a.  Departments requesting modular furniture are to contact Facility Services.

      b.  Facility Services will coordinate with IITS, Procurement & Support Services, and Risk
           Management and Safety departments.

2.  Design and Ordering

      a.  Facility Services will set up an appointment with the campus-approved modular designer to
           review the requestor’s needs.  The designer will prepare a layout for the customer to
           review.  Once the design has been approved by the customer, Facility Services will send a
           copy to IITS for review.

      b.  After the modular layout has been approved, the modular vendor will prepare a price
          quote. The quote will be returned to Facility Services, where they will prepare a bid for the
          modular project.  This bid does not include the cost from IITS; they will provide a separate
          quote.

       c.  It is the requestor's responsibility to complete and submit to Procurement & Support
           Services the requisition and all necessary documentation for the purchase of modular
           furniture.  Facility Services will include an instruction sheet with the bid.

         F. Independent Contractor/Guest Lecturer/Speaker/Performer: Hereinafter Called
             Independent Contractor
 

    The purpose of these guidelines is to assist the hiring department in processing paperwork for 
    Independent Contractors, Guest Lecturers/Speakers/Performers (hereinafter referred to as
    Independent Contractors), while complying with State and Federal Laws, CSU policies, and
    Collective Bargaining Agreements.  The following are two (2) methods in which to pay individuals
    who perform services for the University:

      1.  An Independent Contractor, Guest Lecturer/Speaker/Performer is a non-employee of  
          the University using a Social Security Number for IRS tax purposes through the
          Independent Contractor Process using the Independent Contractor Packet.

          The requesting department selects the Independent Contractor based upon their needs
          and submits the completed paperwork to either Accounts Payable or Procurement &
          Support Services as determined on the Check List and Cover Sheet (page 13 of the
          Independent Contractor Packet).

       2.  A temporary employee through the Special Consultant Process.

            The requesting department submits the completed paperwork to Human Resources and
            Equal Opportunity.

        Use of Prison Industry Authority (PIA) is encouraged to procure any available goods and
        services produced by the Prison Industry Authority (PIA).  CSUSM may contract, without
        competition, with PIA for goods and services, whenever it is determined that PIA can provide the
        best value for the CSU.
 

              1.  General Information – POA

       The Department may initiate a Purchase Order Amendment (POA) form to cancel the
       purchase order or amend any information on the original purchase order.  For POAs under
       $50.00, a department may submit the POA request via email. 

   2.  Amending a Purchase Order

         a.  A Purchase Order Amendment form is to be filled out, approved, and submitted to
              Procurement & Support Services.  When filling out the form, be specific and list changes
              by line item number, e.g., Item # 001, 002, etc.

          b.  The POA must be signed by the account manager before submission to Procurement &
               Support Services.

 1.  General Information – Rejections/Returns for Credit

      a.  When a vendor has shipped items as specified on a purchase order, the vendor has
           complied with their part of the contract and is under no obligation to accept those items for
           return or credit.  If a vendor does accept an item for return, the vendor may charge the
           University for freight and restocking costs.  Such charges will be assessed to the
           ordering/returning department.

       b.  Regardless of the delivery method, departments are to inspect goods for acceptance.

   2.  Process for Rejecting or Returning Items (from other than contracted office supply   
        vendor)

        a.  End User (department) – notifies Procurement & Support Services, referencing the
              purchase order number.

        b.  End User/Procurement & Support Services – In most cases, a vendor’s Return
             Merchandise/Goods Authorization (RMA/RGA) number and specific shipping instructions
             need to be obtained from the vendor prior to returning an item.

         c.  End User - calls or e-mails Shipping and Receiving so that the items can be picked up
              with the RMA/RGA and shipping instructions.  All merchandise to be returned should be
              packaged in the original container when applicable. If the vendor does not provide a
              mailing label, the department will prepare a shipping label.  Shipping costs not covered
              by the vendor will be charged to the department returning the merchandise.

         d.  End User - completes a POA, if applicable, obtains the necessary approval signature,
              and submits the approved POA to Procurement & Support Services to document the
              return.

1.   New Agreements

Thirty (30) days prior to expiration of warranty, the department has the option of extending service by submitting a requisition which includes:  make, model, serial number, payment terms, and term of maintenance agreement.

2.  Renewing Maintenance Agreements

Department should submit requisition at least thirty (30) days prior to expiration of agreement.
 

1.  Repair of Equipment on Maintenance Agreement (Excluding University Copier Program)

      a.  Department is responsible for contacting the vendor for service.

      b.  When service has been completed, the vendor will normally present a service work order
           slip to the department representative for signature to confirm services have been
           performed.

      c.  While the service representative is present, the department representative is to check to
           make sure the equipment is working properly.  The department representative does not
           sign any service work orders until they are satisfied with the work. 

      d.  If vendor has been called more than twice for the same problem and it is still not repaired  
           to department’s satisfaction, department is to contact Procurement & Support Services to
           contact vendor to repair or replace the equipment.

            2.  Repair of Equipment not on Maintenance Agreement

      a.  Department may call Procurement & Support Services for a vendor recommendation. 
           Department then submits a requisition with an estimated cost.

      b.  Procurement & Support Services obtains appropriate insurance, if required, processes a
           purchase order, and notifies the department of the P.O. number.  The department is now
           authorized to contact the vendor to schedule the service call.  Procurement & Support
           Services forwards the purchase order to the vendor.

      c.  When service is complete the vendor presents the department representative with a
           service work order for signature.  Upon satisfactory completion of service, the department
           signs the work order, indicates the PO Number and forwards the original to Accounts
           Payable.
 

      Departments desiring information on available copiers for lease are to contact Campus
      Enterprises/Copy Center at extension 4547.

     Procurement & Support Services is responsible for the preparation, approval, and administration 
     of all contracts on behalf of CSUSM and its departments.  All contracts or agreements which
     financially or otherwise obligate or require a signature on behalf of CSUSM or one of its divisions,
     departments, programs, or any other unit, must first be processed through Procurement &
     Support Services.

     Those who sign a contract or agreement without prior written authorization from Procurement &
     Support Services may be individually liable for that obligation. 

     The Vice President of Finance and Administrative Services has sole signature authority for
     contracts related to real estate transactions.
 

      Refer to the policy and procedure regarding employee moves and relocations for detailed 
      information: http://www.csusm.edu/accounting_travel/move%20relocation/move_&_relo.htm