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Purchasing Guide

rev 02/16/10

 

Purchasing Authority

Purchasing authority is contingent upon adherence to various State, Regental Policies and Guidelines, and campus procurement regulations.

The procurement policies we follow ensure our compliance to these regulations and that the University is receiving the best procurement value for its money. It is important that you understand and comply with these policies when obtaining products and services for your department. These policies apply to all funds administered through the University, regardless of source. It is our expectation that staff and faculty will review and follow the formal delegations and published guidelines.

 

Authority to Contract

You must have specific authority to obligate the University to pay for goods and service.  If you don’t have contract authority in writing or specifically cited in delegations you don’t have the authority. 


Keep in mind that authority to contract and commit the University to a purchase is different than business authority to commit to an expenditure.  Contract authority deals with contracts that are legally binding and are enforceable by law, whereas business authority is tied to making business decisions and internal agreements within the University.

 

 

Campus Procurement and Contracting Service Levels

*Service level for processing contract types is based on receipt of complete and accurate information in requisition or Business Contract Form.

Contract Type Request Method
Service Level in Work Days
 Equipment Lease/Loan/Purchase  Business Contract Form 95%, Signed in 30 days
 External Recharge Activity  Business Contract Form 95%, Signed in 30 days
 External Sales of Educational Services  Business Contract Form 95%, Signed in 30 days
 Facility Use  Business Contract Form 95%, Signed in 20 days
 Independent Consultant  Business Contract Form 95%, Signed in 30 days
 Independent Contractor (Professional Services)  Special Request 95%, Dispatch in 30 days
 Independent Contractor (Professional Services)  Core Requisition 95%, Dispatch in 35 days
 License  Agreements  Business Contract Form 95%, Signed in 35 days
 Purchase Orders, goods and services <$50K  Special Request 89%, Dispatch in 5 days
 Purchase Orders, goods and services <$50K  Core Requisition 89%, Dispatch in 10 days
 Purchase Orders, goods and services over $50K  Special Request / Core Requisition N/A, Varies
 Professional Fee Service  Business Contract Form 95%, Signed in 75 days
 Real Estate Lease (COIs)  Business Contract Form 95%, Signed in 5 days
 Statement of Insurance  Business Contract Form 95%, Signed in 5 days
 Training Affiliation  Business Contract Form 95%, Signed in 75 days

 

Purchasing Contracts Conduct and Ethics

UCSF is committed to professional conduct in purchasing and contracting based on ethical values and standards that apply to everyone in the UC community that interacts with suppliers or businesses with whom we may develop a business relationship.


UCSF’s Purchasing Code of Ethics is based on and consistent with the Principles and Standards of Ethical Supply Management Conduct of the Institute for Supply Management (ISM), National Association of Education Buyers Code of Ethics, and The University of California Statement of Ethical Values and Standards of Ethical Conduct.

The University of California Office of the President through the University of California Ethics ensures that the university policy on ethics is circulated to all campuses. This site describes some of the ethics training that is sponsored by the University.

Campus Procurement and Contracting promotes fair and ethical business practices.  Campus Procurement and Contracting is committed to open and fair competition in the best interest of the University and in support of our supplier relationships.

Departments are responsible for making sure that the University policies on ethics are circulated and followed by departmental personnel associated with purchasing and contracts.  Departments associated with the Health Care Industry such as the School of Medicine, have adopted Guidelines for Interactions Among UCSF Faculty, Students and staff and Industry which promote compliance with AMA Statement on Gifts to Physicians from Industry and ACCME Standards for Commercial Support to ensure independence of CME activities.

Departmental participation in UCSF programs such as Low Value Purchases, Procurement Card and purchase requisitioning are to adhere to the above code of ethics principals and conduct.

In association with our ethical standards, UCSF has instituted policies and practices on Gifts & Gratuities, and Conflict of Interest.

 

Gifts and Gratuities

In order to avoid a conflict of interest, or the appearance of a conflict of interest, at no time should a University employee solicit gifts and or gratuities from a current or potential vendor.


Employees need to comply with the University policy and guidelines  regarding acceptance of gifts and gratuities under the California Political Reform Act Disqualification Requirements.  UC policy and the Federal Anti-Kickback Act of 1986 state that no officer or employee should solicit or accept any personal favor, gift, gratuity or offer of entertainment directly or indirectly from a supplier who is doing or seeking to do business with UCSF.

If you have a question regarding an offer or acceptance of a gift associated with a vendor or related purchasing activity, you can contact Procurement.  Conflict of Interest Office and Audit Services are resources for guidance. Any questions or concerns on Conflict of Interest can also be directed to the Conflict of Interest Coordinator at UCSF Office of Legal Affairs phone (415) 476-2815.  The Office of Legal Affairs has additional reference materials on Conflict of Interest.

 

 

Conflict of Interest in Contracts

If you have an (conflicting) interest in a contract, you must disqualify yourself from the decision making process.


The Political Reform Act prohibits public officials from participating in University decisions when personal financial interest may be affected by those decisions.  All UCSF employees must disqualify themselves from participating in a contract decision or contract in which they have a personal financial interest.

Making a decision is when, acting with the authority of one’s office the employee votes or scores a  vendor for selection, provides the source selection justification, obligate or commit UCSF to a course of action on the purchase, enters into any contractual agreement, including letter of intent on behalf of the University.  Participating in the making of a decision occurs if the employee advises or makes a recommendation to the decision-maker by conducting research which requires the exercise of judgment with the purpose of influencing the decision.

University employees may not personally benefit from their official positions or decisions. Any University employee who has, or whose relative has, a substantial interest in providing a product or service to the University, shall make known that interest by completing the Report of Proposed Purchasing Transactions Involving Possible Conflict of Interest Form  and shall refrain from participating in the procurement decision making process.

An interest in a contract exists when the employee knows or has a reason to know that any part of a proposed contract is with an individual or entity with whom the employee or an immediate member of their family have engaged in a business transaction on special terms not available to the public within 12 months prior to the time when UCSF action is to be taken on a contract.


Employees are not to use University buying power and contracts for personal purchases.  University contracts for goods and services are for institutional use only.

 

Conflict of Interest – Approval and Source Selection

To avoid the appearance of favoritism in contracts on behalf of the University, UCSF will seek to buy comparable goods and services from non-conflict of Interest sources.


It is the policy of the University to keep separate an employee's University and private interests, and to safeguard the University and its employees from charges of favoritism in the acquisition of goods and services.

The Purchasing Transactions Involving Possible Conflict of Interest Form  is submitted to Campus Procurement and Contracting and used to evaluate the Employee-Vendor Relationships for goods, services, including Independent Consultant and Professional Services Contractors to determine if a conflict of Interest exists that would disallow a proposed vendor. The Materiel Manager/ Executive Director of Campus Procurement and Contracting or designee such as the Assistant Materiel Manager/Director Campus Procurement and Contracting will made a specific determination that the goods and services are not available either from commercial sources or from within the University.

A Former Employee may be used if the individual had teaching and research responsibilities.

A Former Employee may not be used if:

  1. Less than two years’ time has elapsed since the individual separated from University employment, and the individual had been engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract during the period of employment; or
  2. Less than one year’s time has elapsed since the individual separated from University employment, and the individual had been employed by a department in a policy-making position in the same general subject area as the proposed contract.


A University retiree may enter into a contract for services immediately following retirement if the retiree did not participate in any way while serving as an employee in the making of the contract for services.  Other restrictions may apply according to policy see Employee-Vendor Relationships.

 

 

Maintaining Confidentiality and Non-Disclosure of Information

Campus Procurement and Contracting asks that you agree not to disclose or otherwise divulge any information pertaining to the contents, status, or discussions of any proposal to anyone inside or outside the University other than the initiative team leader or other initiative team members without Campus Procurement and Contracting consent.


The terms disclosed or otherwise divulge includes, but is not limited to, reproduction of any part of or portion of any solicitation, proposal, quote or vendor correspondence.  During the purchase process and formal bid evaluations, vendors and other UCSF personnel may be interested in gaining “insider information” on the purchase.  Confidentiality of this information will ensure integrity of the purchase process and avoid giving information to vendors inadvertently that may undermine the pricing, terms and conditions obtained by the University. The buyer or buying team lead needs to be able to control the dissemination of information and manage negotiations associated with a purchase.

 

Expectations of Bid Team and Evaluators

Campus Procurement and Contracting’s standard practice is to include individuals from the requesting or using department(s) as part of a team to establish bid requirements and evaluate bids.


Participants must disclose any potential or known conflict of interest in evaluating any company which may bid for the University’s business.  

Evaluators are to provide observations and input in a manner which demonstrates that decisions are based on facts, data, good judgment and logical inference.  

An evaluator must agree not coerce others on the team to change their decisions based on their own personal conclusions.  Evaluators are to encourage others on the team to thoughtfully examine all available bid materials and to also make their own fair and objective evaluations. If an evaluator has a conflict of interest they are required to recues themselves and recommend a replacement.  Confidentiality and non-disclosure of bid information is extremely important.  Individuals need to participate with a mindset of fairly and objectively evaluating all proposal responses in an unbiased manner and with the best interest of the University of California being paramount in all decisions.

 

 

Return of Goods

If it is necessary to return goods to a vendor, it is the department’s responsibility to make the arrangements.  Contact the vendor for specific information pertaining to the vendor’s return goods policy.


Typically vendors’ need to know the reason for a return before they are willing to take it back.  Once a vendor has agreed to the return they usually issue a Return Goods Authorization (RGA) number.  The RGA is referenced in the return documentation and on all associated correspondence.  

Vendor return policies often include a restocking fee or disallow returns on items that require refrigeration or have limited shelf life.  If in advance of a purchase you have concerns on a vendor’s return policy, contact Campus Procurement for assistance it working to get restocking fees waived or reduced.

If the purchase was made against a Special Request, the buyer who placed the original purchase needs to be notified that a change order can be issued.

 

Ordering Controlled Substances and Chemical Precursors

All Controlled Substances, DEA schedule II-V, must be ordered through Campus Procurement and Contracting.


Controlled substances (CS) are regulated by the United States Drug Enforcement Agency (DEA). The University is obligated to follow the DEA procedure for ordering, delivery and receipt of controlled substances and therefore orders of this type MUST go through Campus Procurement and Contracting.  The Controlled Substance Purchase Approval form must be included with your Special Request (SR)as a PDF file and be approved by your Principal Investigator (PI) before your controlled substance order will be processed.

The OEH&S Controlled Substances Program Manual outlines in detail the regulations and procedures governing the use of controlled substances.

For information regarding your PI/lab’s controlled substance expiration, current authorizations (list of approved controlled substances that may be purchased) and annual purchase limits, review the data on Research On Line before you submit your order.  If the controlled substance is not listed under the CS authorizations or the purchase you are making exceeds your PI/lab’s authorizations, consult with your lab’s designated Departmental Safety Advisor (DSA) before you submit your order as modifications may be required before your order will be approved for purchase.

Requisitions should be submitted as Special Requests (SR).  PeopleSoft workflow will direct all controlled substance and chemical precursor order requests with appropriate category coding of CONTRLED_SUBSTANCE to Campus Procurement and Contracting.  Correctly coding SRs is the responsibility of the PI and Requestor.  As part of our DEA compliance protocol, it is the PI department’s responsibility to ensure that any Requestor, including backup is properly trained on category coding of orders.  Campus Procurement and Contracting is available for supplemental training on requisition processing.   Researchers’ must include an approved controlled substance PI authorization form to order controlled substances and attach as a PDF file with the SR. The following information must be included on the requisition:

  • Account and Fund Numbers, including Fund Year (FY), if applicable.
  • The PI’s name in the comments section of P2P and signed controlled substance PI authorization form as PDF attachment with your special request.
  • Substance name, strength or concentration, dosage, Schedule, quantity, and package or unit size.
  • Contact phone number
  • If there is no address information on the requisition, the requisition will not be processed.

 

 

Taxes

Keep in mind that UCSF typically pays sales or use tax on purchases of tangible property, such as equipment and supplies.


Vendors often fail to include taxes in quotes.  Campus Procurement and Contracting will build in sales or use tax unless the department identifies the purchase as for resale, or that the purchase is against a Federal Contract whereby the title is retained by the Federal government.

 

General Vendor Deliveries and Pickups for UCSF Oyster Point Facility

Deliveries occur on an appointment basis only, and will be scheduled as time availability permits and as the operation schedule permits.


All deliveries and pick-ups require 24 business hours notice for one truck load and a minimum of 48 hours for multiple loads.  If the appointment time is missed, the delivery will have to be rescheduled, as well.

The UCSF Oyster Point facility is located at 616 Forbes Blvd. South San Francisco, CA 94080.

Contact Person for inbound deliveries: John Chargualaf, UCSF Oyster Point, senior stores supervisor, should be contacted for all delivery appointments and or pickup requests at 415 502-3063.  Distribution Services requires that a follow-up email be sent to various distribution personnel.  For more information  call (415) 476-5987.

 

 

Vendor Credits, Discounts, Rebates or Incentives

Vendor price or payment may be reduced through credits, discounts, rebates or incentives.


Cash Discount or Incentive - An allowance extended by a vendor for payment of an invoice on or before a date that is earlier than Net payment terms

Quantity Discount – An allowance extended by a vendor on the basis of quantity or value of a purchase

Trade Discount – A discount on the list price granted by a manufacturer or wholesaler to a buyer in the same trade (examples: UC Printing subcontracts a printing job to another Printer and received a trade discount.  A chemical distributor lacks sufficient stock to fill our order and goes to another distributor for product; the other distributor may offer a trade discount)

Purchase Discount – A reduction in price associated with volume of the transaction

Rebate – Supplier offer of additional consideration or compensation to encourage the purchase of goods or services by returning monies after purchases have occurred

Incentives - Supplier offer of additional consideration or compensation to encourage the purchase of goods or services, at or after the purchase has occurred

Earned Credits – An allowance extended by a vendor on a future purchase

 

Policy References for Procurement

A Series – Accounting, BUS Series - Business & Finance Bulletins (Business Affairs), G Series – General, RMP Series – Records Management


BUS-34, Securing the Services of Independent Consultants
BUS-43, Materiel Management
BUS-63, Insurance Requirements/Certificates of Insurance
BUS-76, Engagements with The Regents' Audit Firm
BUS-77, Independent Contractor Guidelines
BUS-78, A Guide to the Political Reform Act of 1974
G-28, Policy and Regulations Governing Travel
G-39, Conflict of Interest Policy and Compendium of Specialized University Policies Guidelines, and Regulations related to Conflict of Interest
RMP-8, Legal Requirements on Privacy of and Access to Information
Accounting Manual
Facilities Manual
Policy on Sustainability Practices and Guidelines

 

rev 02/16/10