Northwest Arkansas Community College

NorthWest Arkansas Community College

PURCHASING POLICIES

PROCEDURES

MANUAL

______

January 2009

TABLE OF CONTENTS

I. NWACC’s PURCHASING DEPARTMENT GUIDELINES / Page No.
Purchasing & Receiving Department Personnel / 5
Purchasing & Receiving Department’s Commitment to Quality Customer Service / 5
Expectations / 5
Suggestions & Cautions / 6
General Information / 8
Purchasing Authority / 8
Approval of Requisitions & Purchase Orders Prior to Commitment of Funds / 9
II. INTERNAL PURCHASE REQUISITION FORM
Internal Purchase Requisitions – Overview / 9
Instructions for Completing an Internal Purchase Requisition / 9
Issue / 9
Delivery / 10
Body of Requisition / 10
General Requisition Information / 11
Comments Section / 12
Director of Budgets and Budget Account Distribution Approval / 12
Purchasing Authority and Approval Signature / 12
“Confirming” or “After the Fact” Requisition / 13
Estimated Purchase Request or “Not to Exceed” / 13
III. PURCHASING and RECEIVING & SHIPPING DEPARTMENT PROCEDURES
Types of Purchase Orders / 14
Vendor Maintenance & W-9 Forms / 15
Status of Orders / 15
Pre-Payments / 15
Purchase Order Cancellation & Change Order Requests / 16
Purchasing Time-Table / 16
Procedures for Receiving Freight, Handling Shortages & Damage Claims / 16
Shipping & Handling Charges and Sales Tax / 17
Mail Services Information / 18
IV. MERCHANDISE RETURNS & REPAIRS
Return of Merchandise / 19
Repair of Merchandise or Equipment / 20
Copier Repair & Maintenance / 20
Repair & Service of Out-of-Warranty Equipment / 21
Warranty Repairs / 21
V. INSTRUCTIONS for REQUISITIONING SPECIFIC MERCHANDISE & SERVICES
Conference/Registration Fees / 22
Subscriptions / 23
Memberships in Professional Organizations / 23
Office Supplies / 23
State Contract Items / 24
Items Ordered on a “Review” or “Trial Basis” / 24
Unsolicited or Complimentary Deliveries / 24
Computer Hardware, Software, & Peripherals / 25
Fixed Asset Purchases / 26
Airline Tickets / 26
Hotel Reservations / 27
Food Contracted Items or Services / 28
Internet Purchases / 29
Emergency Purchases / 29
Purchases of Workshop-Made Products & Services / 29
Commodities for Resale / 30
Gift and Gift Certificate Purchases / 30
Scantron Forms / 30
Scantron Machine Repair / 30
Trade-In Items / 30
VI. STATE PURCHASING LAWS, REGULATIONS, & PROCEDURES
Employee Disclosure Requirements / 31
Restrictions on Employment of Present & Former Employees / 31
Small Purchases – Arkansas Constitutional Amendment 54 / 31
Purchase of Commodities Subject to Arkansas Constitution Amendment 54 / 32
Sole Source Procurement / 32
College Savings Bond Purchases / 33
Arkansas State Bid Process & Procedures / 33
Types of Bids / 33
Bid Requirements / 34
Bid Procedures / 34
Exceptions to Bid Requirements / 35
Rentals, Leases, Lease Purchase Commodities/Equipment & Real Estate / 36
Professional & Consultant Services / 37
Paying Individuals for Services / 38
State Procurement Contracted Items / 39
Appendix:
A – NWACC Procedure for Visa Credit Card / 40
B - Unsolicited or Complimentary Deliveries / 41
C - Purchasing Authority for NWACC Departments – “After the Fact” Purchase / 43
C-1 - Authorization for Purchasing Authority Form / 45
D - Official Functions Policy / 46
Forms:
Printing Specification Form / 47
Return Merchandise Authorization / 48

3

PURCHASING POLICIES AND PROCEDURES

I. PURCHASING DEPARTMENT GUIDELINES:

A. The NWACC Purchasing and Receiving Department is staffed by the following personnel:

Name

/

Position

/ Telephone Extension No.
Linda Fast, CPPO, CPPB / Director of Purchasing / Ext. 4140
Cara Sherwood, CPPB / Purchasing Specialist / Ext. 4201
Gloria Chambers / Purchasing Specialist / Ext. 4141
Mike Senkevech
David Ivie
LaDonna Sauerbry / Inventory Control Manager
Shipping & Receiving Clerk
Mail Services / Ext. 4214
Ext. 4314
Ext. 4293

B. COMMITMENT to QUALITY CUSTOMER SERVICE:

The NWACC Purchasing and Receiving Department is committed to providing quality customer service to all NWACC’s departments and employees by:

1.  Providing prompt and courteous service and accurate processing of purchase orders for the purchase of goods and services within three to five working days after the Purchasing Department receives the completed and approved requisition. Exceptions to the three to five day turnaround time may be experienced if requisitioned items need to be bid, or the Purchasing Department is experiencing a high volume of requisition processing and circumstances are beyond the control of the Purchasing Department.

2.  Providing prompt and courteous delivery of goods upon the accurate receipt of those goods in the Receiving Department.

As a result of our pledge to provide quality customer service, you can have the following expectations of the Purchasing Department:

C. EXPECTATIONS:

·  Cooperation – You can expect our full cooperation. We will use all means necessary to fulfill your request. However, please remember that we are compelled by state law and NWACC Policies and Procedures to follow proper purchasing procedures to ensure adequate management and control of the purchasing functions pursuant to Arkansas law and regulations.

·  A Supply of Catalogs, Brochures, etc. – The department receives many catalogs and brochures daily. We try to distribute them to the departments that may be interested in the merchandise. The Purchasing Department maintains numerous vendor catalogs and information (on disk or in paper form) for your information in the department. We also utilize online catalogs for recent price updates. Please feel free to call or visit Purchasing if you need to look through our catalogs.

·  Product Information Gathering – We can help get catalogs, data sheets, etc. from suppliers. However, once you have gathered product information, the Purchasing Department looks to you for product details and we rely on your expertise to specify the product and product characteristics on the Internal Purchase Requisition form. Please provide the Purchasing Department with the specific product description(s) or technical specification(s) of item(s) to be ordered. Attach documentation if necessary.

·  Help with State Contracts – The State Contracts are listed on the Arkansas Office of State Procurement website. A link is also on the NWACC Purchasing page. Please call or visit the Purchasing Department if you wish help in looking at the current state contracts.

NOTE: State contracts can be found at: www.accessarkansas.org/dfa/purchasing

·  Source Searches – We will try our best to meet your needs, but we cannot guarantee a source for every item. Online searches provide the most up to date pricing and availability of most items.

·  Notification of Important Requisition Changes – Occasionally, we have to change information on a requisition. Many of these changes are insignificant (a vendor has moved, transposed numbers, obvious errors, etc.), and we will not notify the requisitioner of these. However, others may be important to the requisitioner (item substitutions, minimum order quantities, price problems, etc.). We will notify the requisitioner of changes of this type.

·  Error Corrections – Even though the Purchasing & Receiving Departments are committed to providing quality customer service, we may make a mistake from time to time. However, we try to keep mistakes to a minimum and learn from them in order to improve the service we provide to NWACC. We encourage you to make us aware of our mistakes and we will make the needed corrections.

D. SUGGESTIONS & CAUTIONS:

To help expedite the processing of requisitions, the Purchasing Department offers the following suggestions:

SUGGESTIONS:

·  DO - Telephone or e-mail Purchasing or Receiving Personnel without hesitation with questions, information, advice, etc.

·  DO - Ask the Purchasing Department for assistance, and allow Purchasing personnel adequate time to do a quality job for you. Please remember to PLAN AHEAD.

·  DO - Consult the Purchasing Department in advance of a major purchase. Allow adequate time for purchasing personnel to provide any assistance or advice needed. We may be able to save you steps or prevent some problems that may occur later.

·  DO - Feel that you are an important part of the purchasing process. Purchasing is a “Team Effort” between the Requisitioner, and the Purchasing/Receiving Department at NWACC.

·  DO - Look over the purchase order and requisition that is routed back to your department immediately upon receiving them from the Purchasing Department. It is suggested that each department keep a record of their requisitions/Purchase Orders for reference. If a mistake has been made on the purchase order, please contact us immediately. It is much easier to correct the purchase order before the item has been shipped and received.

CAUTIONS:

·  DON’T - Disclose the details of a purchase to an unsuccessful bidder (this is called “debriefing”). Since the Purchasing Department is responsible for the administering the bid process, instruct the vendor to call the Purchasing Department regarding bid results.

·  DON’T - Play one supplier against another by disclosing a supplier’s price and inviting another supplier to beat it. This is called “bid shopping,” and it is unethical. It is a way to alienate good suppliers and destroy successful vendor relationships and possibly eliminate valuable sources of goods and services. Please direct all purchasing questions to the Purchasing Department.

·  DON’T - Accept delivery of demonstration equipment from salesmen without first advising the Purchasing Department. We can help protect you from problems that may arise later.

·  DON’T - Sign vendor contracts. A vendor contract may contain terms and conditions that conflict with the laws of the State of Arkansas and the Policies and Procedures of NWACC. In most instances, these contracts always favor the vendor. Our President is designated as the NWACC Disbursing Officer and only she/he has the authority to enter into and sign contracts and/or agreements that legally bind NWACC to the terms of the contract or agreement.

·  EXERCISE CAUTION when writing specifications for large ticket items. Be specific enough to ensure that you get what you need, but broad enough so we do not eliminate competitive bidding. Be careful also when reviewing specifications that have been written by a supplier. There are different kinds of specifications, and they drastically affect the purchasing risk.

·  EXERCISE CAUTION about referencing a vendor’s proposal on your requisition because it seems easier than writing the whole description out. Vendor’s proposals may contain terms and conditions that conflict with NWACC’s Policies and Procedures, and usually are in favor of the vendor.

E. GENERAL INFORMATION:

Information contained in the Purchasing Policies & Procedures Manual is intended to aid and assist those who are involved in the requisitioning of supplies and services at NWACC. This Manual specifies NWACC’s official Purchasing Policies & Procedures and informs NWACC personnel how to follow these procedures and other useful purchasing information.

It is impossible to cover every requirement or situation involved in the purchasing process due to constant changes in laws, regulations, policy, etc. Therefore, this material is being made available in a summarized format and provides guidance for the normal process and is subject to change at any time. If a specific type of process or requirement is not covered in the following Purchasing Policies & Procedures, please don’t hesitate to contact the NWACC Purchasing Department for information.

NOTE: Please direct all budget questions raised by an interest in purchasing an item to the Director of Budget and Analytical Services.

F. PURCHASING & CONTRACTING AUTHORITY:

All purchases, contracts, rentals, leases, and lease/purchases to which NWACC is a party are subject to regulations and procedures as stipulated in Arkansas statutes and regulations. All types of purchases for NWACC, without exception, should be for the official business of the college and are subject to these regulations and procedures. All NWACC purchases require prior approval of NWACC’s Purchasing Department.

The NWACC Purchasing Department has the sole purchasing and contracting authority for NWACC. All Purchase Orders are signed by the Purchasing Manager or designated purchasing/contracting official. Purchases and contracts not authorized by the NWACC Purchasing Department are not the legal obligations of NWACC.

The ORIGINAL copy of the contract, lease, rental, and/or service/maintenance agreement should be attached to the Purchase requisition and forwarded to the Purchasing Department.

NOTE: ALL contracts, leases, agreements and official documents must be signed by the President of NWACC or his/her designated contracting official. NO EXCEPTIONS.

G. APPROVAL of REQUISITIONS & PURCHASE ORDERS PRIOR to the COMMITMENT of FUNDS:

An NWACC Internal Purchase Requisition form and Purchase Order must be approved and issued prior to any commitment made to a vendor or other individual that would result in the expenditure of NWACC funds. See Appendix C –“After the Fact” Purchases.

Caution should be used when researching or inquiring about services or products. A simple conversation can sometimes be interpreted as an order by a vendor/contractor.

II. INTERNAL PURCHASE REQUISITION FORM:

A. INTERNAL PURCHASE REQUISITION (OVERVIEW):

Internal Purchase Requisition forms may be obtained from the K drive in the following folders:

1.  Forms Library

2.  Purchasing / Forms

Many common problems can be eliminated by putting some time and thought in preparing the Internal Purchase Requisition form. The purchase requisition form is an in-house form and any additional information you record on the form or attach to the form, helps to expedite the processing of your order. IT IS IMPORTANT TO COMPLETE THE INTERNAL PURCHASE REQUISITION CORRECTLY THE FIRST TIME!

NOTE: You do not financially obligate NWACC by completing the Internal Purchase Requisition Form.

b. Instructions for completing aN INTERNAL Purchase Requisition FORM:

Please type your requisitions whenever possible and leave a blank space(s) between each item. If necessary, Purchasing may need to enter additional information. If your requisition is not typed, please make sure that the handwriting is clear, neat, and legible.

To assist the Purchasing Department and expedite the processing of your requisition, please complete the following sections of the Internal Purchase Requisition Form:

1. Issue Purchase Order To:

Please complete the following information:

Name – Enter the vendor’s full name or the complete business name of the suggested or preferred vendor, if known.

Order Mailing Address – Enter the vendor’s mailing address to which purchase orders are to be submitted. This is very important as some vendor’s have multiple addresses.