| Effective Date: 1/1/92 (revised 2/10/06) |
| Office of Origin: Finance--Materiel Management |
A. General
1. A purchase requisition may be initiated only if there are sufficient funds available in the appropriate account to cover the cost of the item. Departments are responsible for ensuring that adequate funds are in the account.
2. All purchase requisitions must be approved by an individual within the department whose signature authority to commit funds is on file in Accounting.
3. Emergency orders are handled on a priority basis by Materiel Management--Campus Procurement.
4. Purchases of goods and/or services by any means other than approved purchasing procedures are a violation of campus policy and are considered unauthorized purchases. Invoices received in Accounting for unauthorized purchases will be returned to the originator for explanation and action. For a significant or second violation or a violation involving federal funds, the individuals responsible for the unauthorized purchase will be required to promptly complete the On-Line Purchasing training course.
5. The University is committed to awarding a fair proportion of contracts to small businesses, women-owned businesses, disadvantaged businesses, and service disabled-veteran owned businesses.
6. The State of California Political Reform Act prohibits an employee from making or participating in the making of a decision if a financial conflict of interest exists. Acquisition of services from University employees may only be made in accordance with applicable personnel programs. Acquisition of goods and/or services from businesses owned by employees or by near relatives of employees may be made only when an advance policy exception has been approved in writing by the Materiel Manager, based upon the requesting department's certification that the goods and/or services are not available elsewhere.
7. Sole source requests require a written explanation explaining why the purchase must be made under those circumstances.
8. Hazardous chemicals must be shipped directly to the department using them or to the campus distribution point located at the HSE/HSW Annex dock.
9. When an item or service is used repeatedly, Materiel Management--Campus Procurement will consider establishing a blanket order, campus contract, or systemwide agreement in order to facilitate order processing. Whenever the volume of low value purchases is determined to warrant a blanket agreement, the responsible department shall cooperate with Campus Procurement in its authorization and execution.
10. University credit, purchasing power, and facilities are established to acquire goods and/or services related directly to the University's business, and are not to be used to purchase goods and/or services for personal use or for non-University activities.
B. Special Purchasing Delegations
1. Agreement vendor contracts are campus contracts established by Materiel Management--Campus Procurement or are systemwide contracts that have been established under the Strategic Sourcing Program. Departments may place orders directly with agreement vendors without the involvement of Materiel Management--Campus Procurement.
2. Low value purchases (under $2,500 per vendor per day, including sales tax but excluding freight) may be made under the Delegated Purchasing Program to obtain supplies not stocked by Materiel Management--Storehouse or agreement vendors, or to obtain services not available through campus sources.
3. Equipment repair orders enable departments to obtain equipment repairs from original equipment manufacturers or their authorized distributors up to $9,999.
C. Equipment Purchases
Equipment may be purchased under the following procedures.
1. Campus units may purchase low value equipment under $2,500 (including sales tax but excluding freight) under the Delegated Purchasing Program.
2. Campus units may request purchase of equipment over $2,500 by submitting a completed Purchase Requisition to Materiel Management--Campus Procurement.
While Materiel Management--Campus Procurement has the primary responsibility of ensuring that all UC and local campus regulations are adhered to in the procurement process, each department is responsible for observing this policy.
All department personnel involved in procuring goods and services must complete the On-Line Purchasing Training before issuing procurement documents or making purchasing commitments.
All department personnel involved in procuring goods and services must retake annually the On-Line Purchasing Training provided through Human Resources' Training and Development web site or equivalent in-service or commercially provided procurement training.