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Clayton State University Procurement Services

Procurement Policies

General Scope of State & Institutional Purchasing Policy

The General Assembly has enacted many laws dealing with the policy and procedure of purchasing for State agencies. The basic laws on this subject were enacted in 1937 and 1939, establishing the Office of the Supervisor of Purchases and in acts of 1972 created the Department of Administrative Services (DOAS). All the functions of the Office of Supervisor of Purchases and the Supervisor of Purchasing created by Ga.L. 1931 as amended were transferred to DOAS where State Funds are used.

Competitive Bidding

"To canvass all sources of supply, and to contract for the purchase of all supplies, materials, and equipment required by the State Government, or any its departments, institutions, or agencies under competitive bidding in the manner and subject to the conditions hereinafter provided for".

Standard Specifications

"To establish and enforce standard specifications which shall apply to all supplies, materials, and equipment, purchased or to be purchased for the use of the State Government for any of its departments, institutions or agencies".

Authority Over Inventories and Surplus Property

"To have general supervision of all store rooms and stores operated by the State Government, or any of its departments, institutions or agencies; to provide for transfer and/or exchanged to or between all State departments, institutions, and agencies, or to sell all supplies, materials and equipment which are surplus, obsolete or unused; and to maintain inventories of all fixed property and of all movable equipment, supplies and materials belonging to the State Government, or any of its department, institutions or agencies".

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Liability for Improper Purchases

"Sec. 10 (Act 1937) Wherever any department, institution or agency of the State Government, required by this Act and rules and regulations adopted pursuant thereto applying to the purchase of supplies, materials, or equipment through the Supervisor of Purchases shall contract for the purchase of such supplies, materials or equipment contrary to the provisions of this Act or the rules and regulations made hereunder, the Executive officer of such department, institution or agency shall be personally liable for the cost thereof, and if such supplies, materials, or equipment are so unlawfully purchased and paid for out of the State funds, the amount thereof may be recovered in the name of the State in an appropriate action instituted therefore".

Supervisor of Purchases

Has published rules and regulations to supplement and implement the purchase laws. Quotations from these rules appear throughout this manual.

The 1972 Georgia General Assembly enacted legislation which provided that the State Purchasing Department became a division of the State Department of Administrative Services. The Supervisor of Purchases became the Director of the Purchasing and Supplies Division.

In addition to the purchasing laws and the rules of the State Purchasing Division, there are other resources for purchasing policy for the College

Policies of the Board of Regents of the University System of Georgia

These policies are published in many forms; in certain instances they appear in memoranda only. They deal with subjects affecting the college's purchasing only in specific areas.

State of Georgia Auditing Department and the State Law Department

Both agencies have the function of interpreting law and policy, rather than setting it. Their actions and interpretations, however, have a very real effect on policies and procedures. The administration believes that successful procurement can best be performed by a single department which specializes in this field and which works in cooperation with other departments and State agencies in making purchases. The responsibility for the procurement of supplies, materials, equipment and contractual services is placed in the *Procurement Department and is directly responsible to the Vice-President of Operations, Planning and Budgets. The Procurement Department has sole responsibility for negotiating, preparing, executing or recommending execution, awarding and administering all contracts, purchase orders and rental agreements which involve expenditures for supplies, materials, equipment and contractual services. The Procurement Department is the institutions only channel of contact with the State Purchasing Division and is responsible for coordination of all procurement activities of the College.

* Procurement Services Department of Clayton State University

This policy benefits in the following ways:

  • Permits the consolidation of requirements with resulting quantity discounts;
  • Promotes specialization with more accurate adaptation of purchases to needs;
  • Permits the establishment of uniform policies with respect to vendor/supplier relationships;
  • Aids in obtaining and communicating uniform interpretations of policies and procedures established by State Agencies;
  • Reduces the amount of clerical effort involved in purchases.

Relationship of Procurement Services Department with Other Units and Departments

The Procurement Services Department is a service unit, and in order to be the most benefit to the University, it is dependent upon the cooperation and assistance of all schools and departments.

In order to define the relationships between the Procurement Services Department and other departments and visions as definitely as possible, the following governing practices are set forth:

Correspondence with Suppliers

All correspondence with suppliers should be handled through the Procurement Services Department. Occasionally there will be special cases in which the technical details involved will make it advisable for the Procurement Department to request the department concerned to correspond directly with suppliers. In such cases, copies of all correspondence should be forwarded to the Procurement Department.

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Confidential Information

All employees should refrain from revealing any information regarding orders, materials, prices or future plans of the University with suppliers representatives who are not properly concerned, or which might weaken the bargaining position of the University. The Rules and Regulations of the State Purchasing Division requires that all bids, written or oral, sealed or unsealed, are confidential, and must not be disclosed until the sealed bids are read at the formal bid opening or the purchase order issued on other than sealed bids. Supplier's proposals (as distinguished from formal bids obtained by a purchasing office) should be regarded as confidential.

Contact with State Purchasing

No contact should be made directly with the State Purchasing Department, except through the Procurement Services Department.

Challenges to Requested Purchases

The Procurement Services Department has full authority to question the quality, quantity, and kind of materials requested in order that the best interests of the University may be served. Where it appears to the Procurement Services Department that the College would benefit by the procurement of materials and equipment different from that shown on the purchase request, or from other than the recommended source, this will be done with the advice and knowledge of the department concerned.

Formal Specifications

On proposed procurement involving formal specifications, requirements should be reviewed, as appropriate, with the Procurement Services Department, prior to developing the specifications. During the review, certain general conditions and special conditions will be agreed upon for inclusion in the specifications.

Specifications should be capable, wherever possible, of being met by several suppliers, reasonable in their tolerances, flexible enough not to cause undue delivery delays, and capable of being checked against the items ordered and received.

Equipment on "Loan" or "Approval"

Departments are requested not to accept equipment or supplies on an approval basis without first discussing the matter with the Procurement Services Department. Vendors must be made aware of certain risks which they undertake, as well as purchasing policy with respect to approval equipment and supplies.

Development of and Liaison with Suppliers

It is of vital concern that the Procurement Services Department know all sources of supply, and the qualifications of each, with respect to any given procurement action.

Members of the Procurement Department probably have more contact with the general business public than most other personnel of the University. The desirability of good customer-vendor relations cannot be overemphasized. In dealing with suppliers, the Procurement Services Department observes the following rules:

  • Give each salesman a full, fair, and courteous hearing on any subject that is justified the nature of his produce and his needs.
  • Declines to take advantage of a seller's obvious errors.
  • Keeps competition open and fair.
  • Avoids the rejection and return of items for petty reasons.

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Gratuities

Section C-12 of the Policies of the Regents of the University states: "GRATUITIES" a member of the University System shall not accept gratuities, courtesies, or gifts in any form whatsoever from any persons, corporations, or associations that, directly, or indirectly, may seek to use the connections thus formed for securing favorable comment or consideration on any commercial commodity, process or undertaking".

Limited Usage of State Funds

The Department of Georgia Audits enforces the prohibition on paying for food and gifts from state funds. The primary source of guidance is rooted in Section VI, Paragraph VI of the State of Georgia Constitution that prohibits the legislature from giving away anything of value (gratuities) or from authorizing any other state entity from doing so.

Paragraph VI. Gratuities. (a) Except as otherwise provided in the Constitution, (1) the General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt or obligation owing to the public, and (2) the General Assembly shall not grant or authorize extra compensation to any public officer, agent, or contractor after the service has been rendered or the contact entered into.

State Property

Items purchased with state funds are state property and subject to all rules and regulations governing disposal.

Commencement Expenses

Flowers, decorations, and a gift for the speaker are allowable from state funds. Food for faculty, students and guests would be questionable.

Faculty/Staff Honor and Retirement Programs

These type expenses are not allowable by the opinion of the state auditors.

Other Special Events

These type expenses are questionable and would likely not be allowable from state funds.

Business Lunch Meetings

Reimbursement of meals costs for employees is governed by state travel regulations.

  • Employees may be reimbursed for a noon meal not associated with overnight lodging if the meal is a scheduled part of an intra- departmental meeting or training session (i.e. the meeting or training session continues during lunch and the employees do not leave the premises of the meeting site).
  • Reimbursement is only authorized, however, if the meeting or training was previously approved by the department head, equaled or exceeded six hours in length and was held more than 30 miles from the employee's office.
  • A copy of the formal written agenda may document reimbursement for the meal expense.

Job Applicants

Expenses for job applicants are allowable

Georgia law provides as follows:

"26-2301. Bribery- a person commits bribery when (1) He gives or offers to give to any person acting for or on behalf of the State or any political subdivision thereof or of any agency of either, any benefit, reward, or consideration to which he is not entitled with the purpose of influencing him in the performance of any act related to the functions of his office or employment; or (2) Acting for or on behalf of the State or any political subdivision thereof or of any agency of either, he solicits or receives any such benefit, reward, or consideration".

"26-23-8. Conspiracy in restraint of free and open competition: (1) Transactions with the State- a person who enters into a contract, combination, or conspiracy in restraint of trade or in restraint of free and open competition in any transaction with the State or any agency thereof, whether said transaction be for goods, materials, or services, shall upon conviction, be punished by imprisonment for not less than one or more than five years.

The crime of conspiracy in restraint of free and open competition in transactions with the State shall be complete when the contract, combination, or conspiracy is effected, and an overt act in furtherance thereof has been committed".

(Acts 1968, pp. 1249, 1308).

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Specifications and Brand Preferences

A good purchase specification should be:

  • As simple as is consistent with exactness, but so specific that, no loophole will allow any bidder to evade the provisions and thereby take advantage of either his competitors or the buyer.
  • Capable of being met by several sellers when possible without a major sacrifice in quality.
  • Identifiable, when possible, with some brand or specification already on the market.
  • Capable of being checked. It should describe the method of checking that will govern acceptance or rejection. A specification that cannot be checked is of no value, and methods vary in accuracy.
  • Reasonable in its tolerances.

A specification is no more than an accurate description of the material to be purchased including:

  • Brand or trade name and model number.
  • Blueprint or dimension sheet.
  • Chemical analysis or physical properties.
  • Description of material and method of manufacture.
  • Description of purpose or use.
  • Identification with specifications known generally to be the trade and to the seller.
  • Sample.
  • Combination of two or more of the above (in a combination specification, it is important to state which type governs in the event of inadvertent conflicts).

Brand Preference

Preference for a particular brand is insufficient reason for restricting the purchase of one brand, unless the preference can be supported by objective written justification. Brand preference must be justified up front and the Invitation to Bid must state "no substitute accepted." The Procurement Services department will need to know when a brand preference is involved on any order, so that we may request quotations from various dealers who sell the particular brand, as well as from other dealers. If the specification contains a brand name, and there is preference, indicate the preference as an attached document.

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Bids and Considerations of Price, Quality and Service

Under the bid system of purchasing, price determines the award when all bidders are quoting on the same or acceptably substituted specifications. Therefore, quality and service must be defined adequately in the bid invitation; failure to do so works in favor of the supplier.

Price depends on quality and service among other factors. The degree of quality and the extent of service contained in the specifications, therefore should be no more than are required to accomplish the purpose for which the purchase is being made. Specifications of excessive quality and service may force bidders to quote excessive costs to protect themselves against rejection for failure to meet specifications. A brand that exceeds the specifications may be recommended. Quotations will be requested on the required level of need and the recommended brand could be the low bidder if the vendor offers a favorable price.

Solicitation of Bids and Quotations

Some instructions received from the The Department of Administrative Services (DOAS) Division of Materials Management are listed below:

  • The splitting of requirements to avoid the dollar value limit for normal bid procedure is forbidden.
  • It is improper to sacrifice economy or competitive effect to achieve local vendor preference. Local vendors must be held to the same standards of performance as all other suppliers.
  • Specifications must be held open for competitive sourcing.
  • Only the Procurement Officer or Agent may designate the qualified vendors from whom bids will be solicited; actual solicitation must be done by Procurement Services personnel directly under the control of the Agency Procurement Officer. In all activities or functions related to procurement, the designated Agent is directly under the control of the Procurement Officer, despite administrative assignment for any other functions performed by that individual.
  • Although it is recommended that written bids be used, the Procurement Services Department may take telephone quotes up to the dollar limitations of the delegated authority, if the proper written format is used, and the form is signed by the person taking the quotations. Purchases between $5000-$9,999 can be placed on the E-Quote system on the Georgia Procurement Registry. Orders totaling $10,000 must be written bids and placed on the Georgia Procurement Registry up to ten working days. If the value exceeds $100,000, the request is sent to State Purchasing for bidding.
  • If the request is for a "no substitute" item, the Department/Unit must attach a complete explanation to the request. When a vendor is invited to bid on a request, it is assumed that the product is acceptable if it meets specifications.
  • No one should recommend a higher bidder because of a preference for a particular vendor over another. For consideration of such a request, a Department/Unit must have a sound and convincing written reason, acceptable to the DOAS Division Materials Management and attached to the requisition.
  • All levels of the Procurement process must make good faith efforts to involve minority business sources.

( Reference The State of Georgia Governor Executive Order dated January 11, 1999)

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Minimum Bid Policy

State Purchasing policy requires that a minimum number of direct bid solicitations or invitations be made according to the estimated total value of purchase, and these Bidders should be selected from the State Bidders List, when at least that minimum number of Bidders are available to receive solicitations.

Purchase Value Minimum
Under $5,000 No bidding required
$5,000-$9.999 6 with 3 minority firms
$10,000-$49,999 10 with 5 minority firms
$50,000-$99,999 15 with 7 minority firms
$100,000-$249,999 20 with 10 minority firms

Requirement to Purchase from Georgia Correctional Industries

A portion of the State Purchasing rule is quoted as follows:

"It shall likewise be the responsibility of the APO to insure compliance with the intent of code 40-1927 whereas services, goods, wares, or merchandise produced wholly or in part by the Georgia Correctional Industries and needed by the departments, institutions and agencies of the State and it political subdivisions supported wholly or in part by public funds shall be obtained from the Georgia Correctional Industries where such services, goods, wares and merchandise have been certified in writing by the commissioner of Offender Rehabilitation with the advice and consent of DOAS as available and of competitive quality and price. Where not certified as available from Georgia Correctional Industries, services, goods, ware and merchandise shall be obtained from other agencies or activities of the State which are equally authorized to engage in the provision of such services, goods, wares, or merchandise and have certified as the availability with the advice and consent of DOAS.

Purchase from other State Departments

The Purchasing Act of 1937 permits the purchase of goods from other State Departments to be made without formal bid procedure. However, such purchases do require prior processing through the Procurement Department, unless previous written authorization has been obtained from the Procurement Department.

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Emergency Purchases

In emergency situations only, purchases of materials or contractual services should be requested by bringing a purchase request and a letter of justification directly to the Procurement Services Department who will be responsible for funds certification. Telephone calls to the Procurement Services Department may be made in extreme situations or when dictated. Such purchases must be placed by the Procurement Services Department.

Any situation in which the lack of materials or services may seriously may endanger the safety of any person and where direct action will alleviate the situation and/or in the event of the occurrence of an emergency situation during a time when the Procurement Department is closed, the concerned department may proceed with the purchase. When the Procurement Services Department is next open, the department should telephone the Procurement Services Department for instructions. This procedure should be considered a measure of last resort, since such actions must be fully justified to the satisfaction of the State Purchasing Division.

It is the policy of the State Purchasing Division not to accept emergency purchase justifications which are based on a need to utilize budgeted funds in time to avoid a budget lapse deadline.

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Purchases for Personal Use

It is unlawful for the University to make purchases for the personal use of its employees.

Section 10 (Act of 1939): "That from and after the passage of this Act, it shall be unlawful for any employee or official of the State of Georgia to purchase, directly or indirectly, through the supervisor of Purchases, or through any Agency, Department, Board of Bureau of the State, any article, material, merchandise, ware, commodity, or other things of value for the personal or individual ownership of himself or other things of value purchased directly or indirectly, by or through the supervisor of Purchases or by or through any Agency, Department, Board of Bureau, of the State shall be and remain the property of the State of Georgia until sold or disposed of by the State in accordance with the laws governing the disposition or sale of other State property".

"It shall be unlawful for any person to knowingly sell or deliver any article, material, merchandise, ware, commodity or other thing of value to any person, directly or indirectly, by or through the supervisor of Purchases or by or through any Department, Agency, Board of Bureau, of the State for the individual and personal ownership of such person or other person or persons, except that property of the State may be sold or otherwise disposed of in accordance with the laws governing the sale or other disposition of State property. That within the meaning of this Act, the work person shall include natural persons, firms, partnerships, corporations or associations".

The following policy is quoted from the Policies of the Board of Regents, University System of Georgia:

"Employees of the University System shall not purchase goods or services through channels used in the purchase of goods and services for the operations of the University System".

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Conflict of Interest

Employees of the University may not buy or sell to the University. The law of the State of Georgia quotes:

"State officers or employees selling to government.--Any officer or employee of the State or any agency thereof, who for himself or in behalf of any business entity sells any personal property to the State of any agency thereof, shall upon conviction, be punished by imprisonment for not less than one or more than five years".

"Property means anything of value, including, but not limited to, real estate, tangible and intangible personal property, contract rights, services, chases-in-action and other interests in or claims to wealth, admission or transportation tickets, captured or domestic animals, food and drink and electric or other power".

"Officers and employees of the State prohibited from buying from or selling to State property at pecuniary gain.--It shall be unlawful for any full-time appointive State official or employee to contract to buy from or sell to the State of Georgia an real or personal property, goods or services, or a combination thereof, when such purchase or sale would benefit, or likely to benefit, such official or employee. Nor shall any full-time appointive State official or employee influence, or attempt to influence, the execution of any contract, agreement or transaction entered into by the State of Georgia, or any department, agency, commission or authority thereof, of the purchase or sale of any real or personal property, goods or services, or a combination thereof, where such action would result in actual ascertainable pecuniary or other gain to such official or employee".

Sales and Excise Taxes

Clayton State University, as a unit of the State of Georgia, is exempt from payment of Georgia Sales and Use Tax and Federal Excise taxes. Generally, the only tax paid by the College is Georgia Motor Fuel Tax (Diesel fuel tax is paid on highway-use vehicles only).

Agency Funds are not exempt from the payment of State and Federal taxes.

Purchase of Electrical Equipment

The voltage characteristics of all electrical equipment should be verified by Plant Operations prior to the writing of specifications for the purchase of this type equipment. Plant Operations cannot install or allow to be installed electrical equipment that does not meet standards.

No Charge Publication or Film Contracts

Under the State of Georgia rules, departments cannot expend funds to produce, or to have produced, any publications in which commercial advertisements appear. However, a firm may undertake to produce a publication concerning the University or having a use by the University, solicit commercial advertisements to be contained in the publication and present, either gratis or with a percentage of the return, copies of the publication to the University. Also, a firm may wish to produce a film concerning the University with the intent of distributing the film for a profit and then remitting a percentage of the return of that profit to the University.

The Procurement Services Department will negotiate all no-charge publications or film contracts with any firm interested in producing such publications or films to insure that:

  • Whenever possible, such contracts are competitively bid with the award based on a percentage of return (if any) to the College;
  • The contract terms and conditions are in the best interest of the College;
  • The contract has been reviewed by the legal department for compliance with legal requirements.

Purchase of Furniture and Furnishings

The Board of Regents of the University System of Georgia has established price standards for purchases of furniture and furnishing which are effective in the following categories:

  • Class 1 - Office
  • Class 2 - Classrooms
  • Class 3 - Lounges
  • Class 4 - Dining Areas
  • Class 5 - Conference rooms
  • Class 6 - Reception Areas
  • Class 7 - Student Housing

These standards apply to all units of the University System of Georgia, for all acquisitions funded by either institutional funds or by the Georgia Education Authority (University).

Procedures for Processing Request for Rental or Purchase of EDP Equipment

All requests for computing equipment (e.g. handhelds, notebooks, laptops, desktops), and related equipment that requires attachment in any way to computing equipment, or requires a computer to be functional (e.g. scanners, drives, printers, tablets, plotter, etc.) must be approved by the Office of Information and Technical Services and installed by the Office of Telecommunications.

Equipment that is purchased must be compatible with existing equipment, and, such purchases must be reported to the Office of Information and Technical Services to insure the integrity of the campus network and the validity of the warranty on equipment, it must be installed by qualified persons in OITS.

The Procurement Services Department is responsible for the further processing of requests. Once the equipment is acquired, an appropriate inventory form reflecting the addition and/or change to equipment is required.

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Computer Purchases Support Policy

Purpose of Statement:

The Office of Communications and Technology Services (CTS) in the Office of Information Technology & Services (OITS) at Clayton State University (Clayton State University) strives to provide computing technology support for faculty, students and staff. In order to provide the best possible computer support, it is necessary to establish standards for which the campus can, and should, expect to be supported.

Abstract:

The usual expectation for computer support is "if a PC is purchased, it must be supported". That anticipated support covers hardware, software, and network connectivity and functionality. To provide the best quality of service, a knowledgeable trained technical support staff must be available. Knowing that there are limited financial and human resources, it is necessary to establish policy that match both resources and service expectations.

Scope:

CTS and the HUB provide hardware and software support for desktop and notebook computers. In order to provide the best possible service an attempt to standardize on hardware has allowed the HUB staff to service a larger number of computers. Also, our current vendor, DELL, has a very good service track record. Combined with standardization and a good computer vendor, the HUB staff is able to extend its resources further than what would normally be possible. A computer purchase of non-standard equipment would jeopardize the effectiveness of the support staff.

OITS does not wish to restrict the purchases of computing technology for Clayton State University.

However, if the computer purchase is expected to be supported by CTS, it is necessary for the purchase request to be reviewed by the Executive Director of OITS or the Executive Director’s designee. If it is determined that the requested equipment cannot be supported by CTS, a memo will be attached to the purchase requisition and returned to the originating department informing them that if purchased, CTS cannot provide installation nor on going support for the equipment and installed software. This does not necessarily mean the equipment cannot be purchased, but caution should be taken. Purchases of non-supported computing equipment should be rare and justification should be documented for these kinds of institutional expenditures.

As of the date of this policy statement, the following desktop and notebook computers are supported by CTS:

  • Dell desktops
  • Dell notebooks

Computer Surplus

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Purchase Order Changes and Cancellations

Only the Procurement Department has the authority to change, cancel or modify a purchase order.

Recommended Vendor

A recommended vendor, not necessarily to the exclusion of all other vendors, should be indicated. Justifications for restriction of competition to one vendor are usually to no avail, however the Purchasing department will request quotations from the recommended vendor, along with others, if the recommendation is stated.

Repetitive purchases in the same day from the same vendor or in more than one day may be considered an evasion of the local-purchase limit by State Purchasing and could require a written explanation. The local-purchase limit is viewed by State Purchasing as a privilege, revocable if abused.

Inquiries Related to Charges to Budget Classifications

*Should be directed to the Budget Analysts in Budget & Finance.

Inquiries Related to Payment to Suppliers

*Should be directed to Budget & Finance.

Delivery Expediting and Follow-up

Deliver expediting is the attempt to improve or change the existing delivery lead time of a given order. The Procurement Services department normally takes action only upon individual request, since most orders require no action to be taken. The Procurement Services department is interested in knowing whenever a supplier is chronically deficient in meeting estimated delivery times (or other issues).

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Complaints about Products or Services

Departments/Units must make the Procurement department aware of any problems they have with purchased products or services. A thoroughly documented record ensures the institution avoids continuous problems with a specific supplier. Notify the Procurement Services department by listing the supplier’s name, purchase order number, product name, and a suggested solution. The Procurement Services department will contact the supplier for corrective action, and maintain compliant files for reference purposes.

Detailed Justifications

There are certain areas of Governmental Procurement which require complete and detailed justification. Some of these areas are: Sole Source; Other than Low Bid; Brand Preference; Unacceptable Alternative; Unacceptable Substitute; and Disqualifying of a Supplier for Further Business.

Definitions

State Wide Contracts – State-wide contracts are term contracts, usually for one year. The use of State-wide contracts is mandatory for the item covered. No other mode or purchase may be used for the contracted item. A current listing of items available from Statewide contracts is available for review at: www.doas.state.ga.us

Agency Contracts – Agency contracts are term contracts which are issued by State Purchasing for the particular needs of the college on an item or group of items. These contracts are issued only at the request of the college where the need has been established.

Field Contracts – Field contracts are those contracts which are issued by the Procurement Department at the university. Normally the contracts are for services and materials in the area of maintenance of equipment.

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