�鶹��Ƶ Policy 5.24 - Purchasing

POLICY #5.24
SUBJECT: Purchasing

I. PURPOSE

The purpose of this Policy is to establish policies and guidelines for the Procurement of Goods and Services at Southern Utah University. Applicable to all University faculty, staff, student employees, and volunteers, this Policy provides for the accountable use of Public Funds and professional and ethical Procurement practices. This Policy ensures compliance with the Utah State Procurement Code and with Board of Higher Education Policies, specifically Policy R571, which governs the management and control of Procurements and Procurement procedures conducted by the institutions in the state system of higher education.

II. REFERENCES

Southern Utah University Policy 5.7 Conflicts of Interest
Southern Utah University Policy 6.22 Faculty Due Process
Southern Utah University Policy 7.7 University Contracts
Southern Utah University Policy 8.3.5 Termination of non-Academic Staff Employees and Disciplinary Sanctions
Southern Utah University Policy 10.8 Auxiliary Enterprises
Southern Utah University Policy 10.13 University Travel
Utah Code
Utah Code
Utah State Archives
Utah System of Higher Education
Utah System of Higher Education

III. DEFINITIONS

Annual Cumulative Threshold: The maximum total annual amount that may be expended to obtain Procurement items under the “Small Dollar Purchase Threshold” (Section IV.C.2.a.) from the same source without a Contract.
Business: A sole proprietorship, partnership, association, joint venture, corporation, firm, trust, foundation, or other organization or entity that engages in commercial business activities for profit making or non-profit purposes.
Construction: The process of building, renovating, or demolishing University structure or buildings; major development work or landscaping of University real property. Construction does not include the routine operation, repair, or maintenance of existing structures, buildings, or real property.
DFCM: The State of Utah Division of Facilities Construction & Management. DFCM provides oversight of capital development and capital improvement projects for the University. See Board of Higher Education Rule 711-3.
Emergency Procurement: A Procurement conducted due to circumstances that threaten public health, welfare, safety, property, or other harm, including presenting a risk of causing financial harm to the University or significantly disrupting University operations, or circumstances where timeliness, litigation deadlines or other factors necessitate waiver of provisions of the standard Procurement process.
Gratuity: Anything of value, such as; money, loan, an award, employment, admission to an event, a meal, lodging, travel, a raffle, drawing or prize, or lottery, and entertainment for which a charge is normally made. Gratuity does not include a rebate, coupon, discount, airline or hotel awards and points, dividend, or other offering included in the price of a Procurement item.
Goods: Anything purchased other than Services, construction, or real property.
Hospitality Gift: A promotional or hospitality item, including, a pen, pencil, stationary, toy, pin, trinket, snack, nonalcoholic beverage, or appetizer.
Individual Procurement Threshold: The maximum amount for which a University unit may purchase one Procurement item within a single Transaction.
Invitation to Bid (ITB): A formal Procurement method for soliciting bids from vendors interested in providing requested Goods or Services to the University.
Kickback: A Gratuity or bribe given in exchange for favorable treatment in a Procurement process or the administration of a Contract.
Large-Dollar Purchase Threshold: The threshold established by the Purchasing Department and approved by the President over which a formal, advertised solicitation must be conducted.
President’s Cabinet: �鶹��Ƶ administrators who serve on the President’s Cabinet as designated by the President over time. Each �鶹��Ƶ employee reports to the President or through one of the President’s Cabinet representatives.
Procurement: The act of buying, purchasing, renting, leasing, or otherwise acquiring any equipment, Goods, Services, or Construction. Procurement also includes all functions that pertain to the obtaining of any equipment, Good, Service, or Construction including description of requirements, selection, solicitation of sources, preparation, and award of a Procurement Contract, and all phases of Procurement Contract administration.
Procurement Contract: Any legally executed University agreement for the Procurement and/or disposal of equipment, Goods, Services, or Construction.
Procurement Participant: A person involved in administering, conducting, and making a decision regarding the Procurement, those that make recommendations, evaluate, award the Procurement Contract, ensure compliance, audits or enforces the Procurement Contract.
Procurement Threshold: The maximum amount that a Procurement Contract may cost before it must go through the formal procurement process. See the �鶹��Ƶ Purchasing Guidelines for additional information.
Professional Services: A service that requires a high degree of specialized knowledge, training, certification, professional licensure, or discretion in the performance of the service. See the �鶹��Ƶ Purchasing Guidelines for additional information.
Public Funds: All funds for which the University has a fiduciary responsibility including state appropriations and tuition (generally referred to as E&G Funds), federal appropriations, income generated by all University departments, operations, and non-Contract auxiliaries, and funds from gifts, grants, and Contracts.
Purchase Order: A legal and binding written Contractual document, reflective of an offer from a supplier/vendor, and acceptance of that offer by the University. A Purchase Order serves as a formal order of Goods or Services to a vendor/supplier, and sets forth all terms and conditions applicable to that order, unless otherwise expressly stated in the Purchase Order.
Purchase Requisition: A request for the purchase of Goods or Services, initiated through the University’s accounting system, and received by the Purchasing Department, which can be turned into a University Purchase Order.
Request for Proposals (RFP): A Procurement method for soliciting proposals from vendors/suppliers interested in providing requested Goods or Services to the University.
Services: The furnishing of labor, time, or effort by a Vendor/supplier, not involving the delivery of a specific end product, other than reports, which are merely incidental to the required performance. It does not include employment agreements or collective bargaining agreements.
Single Procurement Aggregate Threshold: The maximum total amount that a University unit may expend to obtain multiple Procurement items from one source within a single Transaction.
Small-Dollar Purchase Threshold: The threshold established by the Purchasing Department and approved by the President over which adequate competition must be sought in accordance with Purchasing Procedures.
Specification: Any description of the physical or functional characteristics or of the nature of any equipment, good, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a piece of equipment, good, service, or construction item for delivery.
Split Transaction: To divide, split, parcel, or otherwise manipulate a Procurement into two (2) or more smaller purchases with the intent to circumvent the Procurement laws, policies, and/or procedures.
Transaction: A formal or informal Contract or agreement, expressed or implied, to which the University is a party that involves any transfer of consideration or payment of compensation.
Vendor: A person who is seeking to enter into a Contract with a Procurement unit to provide a Good or Service.

IV. POLICY

Applicability
1. All members of the University community under any Contract or employment relationship, including administrators, faculty, staff, students, student employees, Contractors, and Vendors, are subject to and shall comply with this Policy.
2. University employees who violate this Policy are subject to disciplinary action, up to and including termination. See Policy 6.22 and Policy 8.3.5.
3. University personnel may also be held personally liable to the extent allowable under civil or criminal law for losses or damages caused by negligence or willful violation of this Policy.
General Policy
1. Southern Utah University utilizes a centralized Purchasing Office to effectively administer the Procurement function. The Purchasing Office has been granted authority by the Southern Utah University Board of Trustees and the University President to order supplies, materials, Services and equipment, and to obligate the University in any type of Contractual agreement. The President designates a Chief Procurement Officer for the University.
2. No department, employee, or student can obligate the University in any manner or purpose without written authorization from the Chief Procurement Officer, Chief Financial Officer, or University President.
3. The Purchasing Office shall establish operating procedures consistent with State of Utah legal requirements and other governing University policies which allow for an efficient and cost-effective purchasing process.
4. The Purchasing Office recognizes and adheres to applicable State of Utah Procurement Code sections 63G-6a-101 et seq., State Code, and Administrative Rules that regulate all University purchasing activity as well as Board of Higher Education Policy R571 which governs the management and control of Procurements and Procurement procedures conducted by the institutions in the state system of higher education.
5. Any order or commitment made by a University faculty, staff, or student is not legally binding (see Section IV.B.) unless that person has been authorized in a manner as described within this Policy. Those found to have violated this policy, or any component herein, will be subject to disciplinary action and other legal action, as applicable.
6. The Purchasing Office and Office of Legal Affairs will collectively maintain records of Transactions, agreements, legal notices, land purchase/sale documents, Contracts, and supporting documentation. These files may be recorded either electronically or by paper and must be readily available for review. Procurement documents will be retained as prescribed by the applicable State Archives record(s) retention schedule.
Purchasing
1. All Goods and Services purchased by the University shall be procured in compliance with applicable statutes, rules, guidelines, policies and procedures, regardless of the funding source, including state appropriations, federal appropriations, generated income, or funds from gifts, grants, and Contracts.
2. To gain approval by the Purchasing Office, employees and students must utilize one of the following tools:
  1. Purchasing Card Program: This program consists of issuing a credit card to an employee or student to facilitate the purchase of their departmental supplies, Goods, conference fees, some types of Services, certain travel requirements, and other miscellaneous needs. Purchasing Card usage is controlled through limitations on dollar values and Vendor category. Employees and Official Volunteers (Cardholders) issued a Purchasing Card must comply with the requirements set within the “Purchasing Card Guide.” Receipts/documentation must be obtained for all Transactions and maintained in office files and will be subject to review/audit. Failure to comply with the guidelines of the Purchasing Card Program could result in suspension or termination of purchasing privileges.
    
    The Purchasing Office and Office of Internal Audit will administrate and conduct a comprehensive internal control process regarding Purchasing Card use. Purchasing Card Transactions will be audited to ensure compliance with University policies and state of Utah code.
  2. Purchase Orders: Employees seeking a Procurement on behalf of the University must complete a Purchase Requisition and submit to the Purchasing Office for completion. Budgets to be used must have sufficient funds available. Purchase Requisitions with budgets that reflect insufficient funds will not be processed. Once completed by the Purchasing Office, a formal Purchase Order (PO) will be sent to the Vendor. POs may be sent by mail or electronically, per the preference or the requestor. At no time may an employee or student place an order without first obtaining a University-issued Purchase Order, or through the use of a University-issued Purchasing Card.
Bidding/Request for Proposal Requirements
1. To support University activities, the Purchasing Office will utilize, when required or deemed helpful, either formal Bid or Request for Proposal (RFP) processes.
2. Procurement Thresholds are effective for all Procurement activity. See the �鶹��Ƶ Purchasing Guidelines for additional information.
  1. Small Dollar Threshold: All Procurements under the Small-Dollar Purchase Threshold may be placed with the use of a Purchase Order or Purchasing Card at the discretion of the Purchasing Office. Departments must get their pricing/quotes/estimates in written form. (According to the Uniform Commercial Code, any offer over $500 has to be in written form to be binding and enforceable.)
    1. Procurement Purchases that exceed the Small-Dollar Purchase Threshold will require an Invitation to Bid (or Request for Proposal) process. The �鶹��Ƶ Purchasing Office will request a response from at least three (3) Vendors.
    2. Bids or Proposals must be in writing. Bids or Proposals received via email are acceptable. Oral bids will not be accepted.
    3. The Purchasing Office will complete the Invitation to Bid or Request for Proposal process which includes award notifications.
    4. Internet pricing is acceptable when deemed appropriate by the Purchasing Office.
  2. Large Dollar Threshold
    1. Same criteria as Procurement exceeding small-dollar threshold except notification of Invitation to Bid or Request for Proposal will be advertised by the Purchasing Office on either the Purchasing Office webpage or through a State of Utah-sanctioned bid system.
    2. The Purchasing Office will be responsible for advertising.
    3. Process time allowed for this level of Transaction will be at a minimum of seven (7) working days to satisfy State of Utah code requirements.
    4. Construction projects must comply with the University’s approval requirements and the policies set forth by the State of Utah, including the Department of Facilities and Construction Management (DFCM).
3. Exceptions to Procurement Requirements: Institutions may award a Contract for a Procurement item without using a standard Procurement process under the following circumstances. (See Utah Board of Higher Education Policy R571-8.)
  1. State Contracts: The University acknowledges and utilizes State of Utah Purchasing Contracts for the Procurement of Goods and Services. Because these Contracts are the result of a formal bid/RFP process performed by state purchasing, Vendors who hold these Contracts are excluded from the University Bid requirement. Purchases can be made directly from these Vendors for any amount, through appropriate purchasing office procedures, and are not subject to the multiple bid/RFP process.
  2. Sole Source Procurements shall be utilized if a product or service is only available from one Vendor or a legitimate compatibility issue exists. An exceptions request form must be submitted to and approved by the Purchasing Office.
  3. Transitional Cost: A standard Procurement process is not required where transitional costs are a significant consideration in selecting a Procurement item and the results of a cost benefit analysis demonstrate that transitional costs are unreasonable or cost-prohibitive and that the awarding of a Procurement Contract without engaging in a standard Procurement process is in the best interest of the institution.
  4. Instructional materials for curriculum purposes as defined in the �鶹��Ƶ Purchasing Guidelines document, found on the �鶹��Ƶ Purchasing web page.
  5. Goods or Services where the standard Procurement process is impractical and not in the institution’s best interest. Examples can be found on the �鶹��Ƶ Purchasing Guidelines document, found on the �鶹��Ƶ Purchasing web page.
  6. Trial Use: Consistent with the requirements of the referenced code, rules and policies, a trial use Procurement Contract may be awarded upon a determination that the item is needed for a trial use or testing to determine whether the item will benefit the institution.
  7. Emergency purchases as approved by the Chief Procurement Officer, Chief Financial Officer, or the University President.
  8. Procurement of items for resale (Auxiliary Services, etc.)
4. Bid protests: Aggrieved bidders, Vendors, or potential bidders or Vendors, may protest the solicitation’s Specifications or award decision in accordance with the Utah Procurement Code, Utah Code Annotated (63G-6a-1601 et seq.).
5. The Procurement of Goods and/or Services from other governmental agencies, including public institutions of higher education, and correctional industries, may be made without competition as determined by the Purchasing Office.
Limitations and Restrictions on Procurement
1. Purchases of materials, Goods, or Services can only be used for University business. Expenditure of University funds for personal use, or purposes other than those that benefit the University are strictly prohibited.
2. Gifts—Employee & External Parties
  1. Full-time employees of the University may receive up to four (4) gifts per fiscal year, not to exceed $100 per gift. This includes all gifts from university departments, divisions, or the institution.
  2. Departments will not purchase gifts or flowers for employee life events.
  3. Gift cards, gift certificates, or other cash equivalent are prohibited, except on rare occasions and only when pre-approved by the Chief Procurement Officer, Chief Financial Officer, or University President. All applicable U.S. Internal Revenue Service (IRS) tax reporting and payment requirements apply under such circumstances.
  4. Gifts to external parties for University promotional items are limited to $300 per occurrence.
  5. The purchase of meals, refreshments, and grocery items should be requested through the Purchasing Card Request to use a closed Vendor. Reimbursements for such purchases should be pre-approved with written approval from the requestor's Cabinet member or University President.
3. Exceptions include:
  1. Tickets to University events.
  2. For the passing of a current employee, emeritus, or external party, bereavement flower arrangements should not exceed $300, unless approved by the Chief Procurement Officer, Chief Financial Officer, or University President.
  3. Full-time employees may be eligible to receive bereavement flowers for the passing of a spouse or cohabitating partners (as defined by Utah law), parent, or child. Bereavement flower arrangements should not exceed $300, unless approved by the Chief Procurement Officer, Chief Financial Officer, or University President.
  4. Items receiving written approval by the Chief Procurement Officer, Chief Financial Officer, or University President.
4. Procurement from Vendor in Which University Employee Has an Interest: It is the policy of the University (see Policy 7.7) to comply fully with all applicable provisions of the Utah Public Officers' and Employee Ethics Act, Utah Code Annotated 67-16-1 et seq. The statements of detailed policies and procedures set forth herein are intended to provide notice to the University community of the requirements of that Act as applied to the Procurement of supplies, Services, and construction pursuant to the Utah Procurement Code, as amended, and related University regulations.
5. Delegation of Purchasing Authority. The Chief Procurement Officer, Chief Financial Officer, or University President may delegate limited purchasing authority to certain departments on campus due to special needs and campus roles. Those authorized departments will be subjected to audits to ensure compliance with University policy and State of Utah codes. Departments granted this authority must receive and have on file a letter from the Chief Procurement Officer, Chief Financial Officer, or University President granting this ability.
6. Remedies: If any Transaction is entered into in violation of the policies and procedures set forth herein, the University employee who violated the prohibitions as specified may be subject to appropriate disciplinary action including possible dismissal from University employment as provided in the Utah Public Officers' and Employees' Ethics Act.
7. University funds expended by non-University organizations and component units will be in accordance with University policy, procedures, guidelines, and practices.
8. Procurement procedures and policies shall be adhered to independent of any fundraising endeavors of the University.
9. Advance payments for Goods and Services may not be made, except in certain circumstances that are approved by the Chief Procurement Officer, Chief Financial Officer, or University President.
10. Per Utah Procurement Code Annotated, sections 63G-6a-101 et seq, it is illegal to divide, split, parcel, or otherwise manipulate a purchase into two (2) or more smaller purchases with the intent of circumventing Procurement code, policies, procedures, and purchasing card policies. Criminal Penalties for illegal Transactions, including felony and misdemeanor charges, and dismissal from employment will apply to individual(s) involved, as outlined in the Utah State Procurement Code (63G-6a-2304).
Procurement Ethics
1. In accordance with the Utah Procurement Code it is unlawful to use your position or influence to receive a Gratuity, bribe, or Kickback.
2. It is unlawful for a Procurement Participant to use the Procurement Participant’s position or influence to obtain a personal benefit for the Procurement Participant, or for a family member of the Procurement Participant, from an interested person.
3. It is unlawful for a Procurement Participant to ask, receive, offer to receive, accept, or ask for a promise to receive a Kickback for a Procurement Participant or for another person.
4. A person who violates this code is guilty of either a felony or misdemeanor charge and shall be dismissed from employment.
5. A Hospitality Gift is acceptable when it is no more than $50 in value and the person or department accepting the gift is not involved in any ongoing Procurement.
Use of University Property and Auxiliaries
1. University property may not be used at any time to provide a location where Vendor(s) may sell their Goods and Services to the campus community for personal consumption.
2. Auxiliary Services, which includes the Bookstore and Food Services, have the sole authority, as per Policy 10.8, to provide all retail sales and food/drink items on campus.
3. Exceptions:
  1. If it is determined to be in the best interest of the University to provide Goods or Services for personal use to the campus community (e.g. ATMs), a formal Bid/RFP process must be performed to select the Vendor.
  2. Gift, food, and beverage sales conducted by the Utah Shakespeare Festival.
  3. Other exceptions as approved in writing by the Chief Procurement Officer, Chief Financial Officer, or University President.
Travel
1. All purchases for University-authorized travel must follow Policy 10.13.

V. RELEVANT FORMS/LINKS

VI. QUESTIONS/RESPONSIBLE OFFICE

The responsible office for this Policy is the Chief Financial Officer/Vice President for Finance. For questions about this Policy, contact the Purchasing Office.

VII. POLICY ADOPTION AND AMENDMENT DATES

Date Approved: April 13, 1993

Amended: August 6, 2004; March 20, 2015; April 27, 2017; December 7, 2017; March 25, 2020; September 23, 2022; June 7, 2024

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POLICY #5.24 SUBJECT: Purchasing