PURCHASING OVERVIEW – PURCHASE ORDER PROCESS
Estimated Value / Approach: / Approvals:Less than $5,000
(this means $4,999 or less) / 1. Consider using LCC Card for small dollar purchases. Ensure vendor accepts VISA card before placing order.
2. If not on an LCC Card, Customer inputs Banner Requisition. If vendor is not in Banner, they will need to complete a Vendor Application and W-9.
3. Purchasing will award to the suggested source. We will call vendor to identify the work, discuss the price and award the purchase order.
4. If purchase is a service on a Banner Requisition the customer must process a Banner Receiver after services have been received and accepted. If items delivered to Campus Receiving they will process the receiver.
5. Vendor mails invoice to Accounts Payable and they will process payment if there is a purchase order, receiver, and invoice. This is called the “three way match.” / 1. Purchases made on an LCC Card must be reconciled by payday Friday in CONCUR.
2. Requestor’s Supervisor must approve requisition. Banner will not forward without Supervisor’s approval.
3. Purchase Order approval is required (Director of Purchasing).
Between $5,000 and less than $25,000 (this means $24,999 or less) / 1. Customer inputs Banner Requisition.
1. a. Exception: No Bid Justification Letter if $5,000 or more and vendor is not a sole source for the supply or service.
1. b. Exception: Sole Source Justification if there is no other source that can provide supply or service.
2. Purchasing will call at least 3 qualified vendors to identify the work, discuss various approaches and request written quotations. The buyer will evaluate the quotes, document decision, and award a Purchase Order to the vendor who provides the most favorable quote to the College. If vendor is not in Banner, they will need to complete a Vendor Application and W-9.
3. If purchase is a service on a Banner Requisition the customer must process a Banner Receiver after services have been received and accepted. If items delivered to Campus Receiving they will process the receiver.
4. Vendor mails invoice to Accounts Payable and they will process payment if there is a purchase order, receiver, and invoice. This is called the “three way match.” / 1. Requestor’s Supervisor must approve requisition. Banner will not forward without Supervisor’s approval.
1. a. Requesting official of at least the level of a Dean.
1. b. Requesting official of at least the level of Dean.
2. Purchase Order approval is required (Director of Purchasing).
Note: Purchasing is responsible for determining contract type (e.g. Purchase Order versus Blanket Order). Customer will be informed of the contract type and their responsibilities.
$25,000 or More / 1. Customer provides a Statement of Work (for services) and/or Banner Requisition (supplies) with an estimated cost of $25,000 or more.
1. a. Exception: No Bid Justification Letter if $5,000 or more and vendor is not a sole source for the supply or service.
1. b. Exception: Sole Source Justification if there is no other source that can provide supply or service.
2. Purchasing reviews Statement of Work and/or Banner Requisition. Buyer prepares and issues an Invitation for Bids (supply) or Request for Proposals (supply and services, or services only). Holds public bid opening. Assembles evaluation committee, holds interviews as needed, and makes award recommendation. If vendor is not in Banner, they will need to complete a Vendor Application and W-9.
3. If less than $100K can proceed with award, If award is $100K or more, Purchasing prepares a Pre Award Transmittal for the Board packet. The Board of Trustee will review and provide approval or rejection of the purchase.
4. If purchase is a service on a Banner Requisition the customer must process a Banner Receiver after services have been received and accepted. If items delivered to Campus Receiving they will process the receiver.
5. Vendor mails invoice to Accounts Payable and they will process payment if there is a purchase order, receiver, and invoice. This is called the “three way match.” / 1. Preliminary project approval must be given by Supervisor. This means they have available budget for the purchase. Purchases of $100K or more require approval of the CFO prior to submission to Purchasing.
1. a. Requesting official of at least the level of a Dean.
1. b. Requesting official of at least the level of Dean.
2. Purchase Order Approval (Director of Purchasing).
Note: Purchasing is responsible for determining contract type (e.g. Purchase Order versus Blanket Order). Customer will be informed of the contract type and their responsibilities.
3. Board of Trustees must approve purchases of $100K or more. Once approval is given, Purchasing will process the purchase order. (Director of Purchasing and Chief Financial Officer will process approvals in Banner).
http://equator/purchasing/files/Purchasing Overview - Purchase Order Process.doc