Draft of Policy 55.030: Purchasing
Draft
David B. Moore | Vice President for Finance and Administration
Overview
This policy requires that all university-funded purchases are authorized and in compliance with applicable federal, state, and local laws and regulations; university rules, procedures, and policies; and applicable donor or sponsor-specific requirements.
Purchasing requirements
- Purchases must be for official university business only.
- Purchases must conform to federal, state, and local laws and regulations; university policies and procedures, with special attention to the polices listed under the "references" section of this policy.
Preferred Suppliers
Preferred suppliers are awarded through a competitive bid process for specific goods or services and are designated as preferred only for those awarded items. Ohio University participates in the Inter-University Council Purchasing Group (IUC-PG) and other approved public purchasing consortia, leveraging collective purchasing power to establish price agreements and contracts. The University also utilizes contracts from the State of Ohio Department of Administrative Services and other authorized sources. It is expected that purchases are made from preferred suppliers whenever possible. When a preferred supplier cannot meet a legitimate business need, a purchasing exception may be requested.
Buy American Act
For those purchases not covered by a preferred supplier, the university is required to give first consideration to goods that are mined or produced in the United States. Please refer to section 125.09 of the Revised Code (ORC).
Buy Ohio
- The university is required to participate in the buy Ohio program, defined by section 125.11 of the Revised Code and section 123:5-1-06 of the Administrative Code. The university should apply these preferences when making purchases under their direct purchase authority, specify which preference(s) will be applied in the solicitation, and request information as to the point of manufacture. Law also provides that bidders from states bordering Ohio qualify on an equal basis as an Ohio bidder provided the border state does not levy a preference against Ohio bidders.
- Please note that under the buy Ohio program, bidding requirements remain unchanged.
Additional State Requirements
The purchasing department oversees purchases from state programs that provide ongoing community service through the sale of goods and services and/or provide opportunities for disadvantaged businesses.
Opportunities for Ohioans with disabilities
Sections 4115.31 to 4115.35 of the Revised Code direct that any instrumentality of the state utilize a qualified non-profit state agency for the purchase of products or services which are available from a work center employing persons with disabilities.
Ohio penal industries ("OPI")
Section 5147.07 of the Revised Code directs that any instrumentality of the state utilize the department of rehabilitation and corrections for the purchase of products available from state of Ohio correctional and penal institutions
Bureau of services for the visually impaired ("BSVI")
Section 3304.30 of the Revised Code directs that any person who is in charge of a state governmental facility must consult with the director of BSVI prior to the acquisition, renovation, lease, or rental of a property to jointly determine if a site may offer a suitable vending facility, as defined in section 3304.28 of the Revised Code to be operated by BSVI.
Other state requirements
Ohio university is committed to complying with any other state laws, regulations, and requirements, including section 125.081 of the Revised Code and, to the extent practicable, reconciling them with any relevant and applicable federal laws and regulations.
Independent contractor vs. employee
All individuals providing services to the university must be paid directly by the university and appropriately identified as an employee or independent contractor. Purchase orders are not issued to university employees.
Authority
- All purchasing and contracting authority resides with the Ohio university board of trustees. The Ohio university board of trustees has authorized the president to sign on behalf of the university all contracts and other documents in which the university incurs or discharges a legal obligation. Authority to purchase and contract has been delegated to the vice president for finance and administration.
- Authority to commit and sign on behalf of the institution is limited to and defined by the institutional signature authority
Purchasing ethics
Unauthorized purchases
No individual outside of the purchasing department has the authority to enter into purchase contracts, or in any way to obligate Ohio university for procurement indebtedness unless specifically authorized to do so by the director of purchasing, the vice president for finance and administration, or the president. Any such negotiations are considered an unauthorized purchase and the individual could be personally liable for the purchase in accordance with section 3.12 of the Revised Code.
Personal purchases
The university will not purchase any supplies or equipment for the personal use of university employees. Even though the individual involved may fully reimburse his or her department’s budget, this procedure is in violation of state regulations; refer to section 4113.17 of the Revised Code. Those found in violation of this policy may be subject to disciplinary action, up to and including termination.
Integrity and conflict of interest in purchasing activities
- Uniform purchasing policies must be followed across the university to ensure efficient operations and maintain positive relationships with internal and external partners. As a public institution, the university is accountable multiple stakeholders, including the taxpaying public and donors as well as to its students, faculty, and staff. It must conduct its business fairly, in accordance with state and federal regulations, university policy, and external restrictions imposed by donors or sponsors.
- All purchasing activities must comply with the university policy 49.001, conflict of interest and commitment.
Reciprocity
Purchasing transactions shall be awarded only on the basis of merit. In purchasing negotiations, "reciprocity" is a mutual or cooperative exchange of favors or privileges. The University does not engage in or submit to the practice of reciprocity in any purchase transactions.
Gifts and gratuities
- If gifts are received from suppliers or payees by university employees, they must be reported to Purchasing department for disposition
Record retention
All records and documentation relating to university purchases are governed by "Records Management and Archiving" policy 93.002. Additional information may be found on the finance web page.
Tax exempt status
Ohio university is exempt from paying Ohio sales tax under section 5739.02 of the Revised Code; hence, effort shall be exercised to ensure that sales tax is not charged on purchases made on behalf of the university. Ohio university has a reciprocal sales tax agreement with many other states. The finance department maintains a listing of states and their sales tax exemption status.
Policies regardless of fund source
All university funds, regardless of source, must be handled consistently in accordance with university policy and uniform administrative requirements, cost principles, and audit requirements for federal awards also known as uniform guidance. All funds shall be administered by the finance department in a uniform manner and in accordance with Ohio university policy and procedures. For information on the foundation guidelines, see "Foundation Expenditures" policy 03.016. Grant funding must also follow specific guidelines and restrictions set forth by the granting agency.
Purchases requiring special review and approvals
Certain purchases that are processed through the purchasing department require additional approval from the offices listed in paragraphs (H)(1) to (H)(7) of this rule. A purchase order must be issued for these categories. Payment request transactions are not acceptable.
Building services and supplies
- Any work which impacts architectural, structural, mechanical, electrical, grounds, custodial, or security systems requires prior approval from facilities operations.
- All purchases of major construction and renovation as regulated by Chapter 153 of the Revised Code must be managed by the office of architecture, design, and construction and are to be monitored by the capital projects finance office.
- Chapter 4115 of the Revised Code, which relates to the payment of prevailing wage rates on public improvements, states that prevailing wages must be paid on projects whose estimated or actual values equal or exceed the current prevailing wage threshold levels.
Radioactive materials
Safety department must approve the purchase of all radioactive material and radiation producing devices as per the "Radiation Safety Handbook."
Controlled substances
Controlled substances ("CS"s) are chemicals that are regulated by the federal drug enforcement administration ("DEA") and the Ohio state board of pharmacy. DEA regulations and state pharmacy board rules allow faculty and staff researchers (investigators) to obtain and use CSs in institutional animal care and use committee ("IACUC")-approved animal research or institutional review board ("IRB")-approved research. All controlled substances, and any items used in their delivery (e.g., needles, syringes, sterile saline, etc.) must be ordered through the purchasing department and only by a properly authorized and DEA-licensed person, whose name is listed as the responsible person on a "Terminal Distributor of Dangerous Drugs License" for the state of Ohio, Ohio state board of pharmacy. For DEA schedule 1 and 2 controlled substances, a DEA form 222 must be completed and submitted with your requisition.
Hazardous materials
Safety department must be advised of the purchase of all hazardous materials per the "Safety resources for hazardous materials."
Animals
- The purchase and use of vertebrate animals at educational institutions is subject to state and federal regulation. The office of research compliance in the vice president for research planning unit manages animal use at Ohio University. Anyone wishing to use live vertebrate animals at Ohio University for research, teaching, or testing must have that use reviewed and approved by the IACUC prior to order or use.
- Laboratory animal resources ("LAR") is the only campus entity authorized to purchase live vertebrate animals or to grant exceptions to the animal purchasing provisions of this policy. For further information, see the IACUC web page and "Exceptions to or Restrictions of University Policies" policy 01.003.
Alcohol ordering and control
To comply with U.S. treasury department regulations, these special procedures are in effect to govern the ordering, use, control, and reporting of tax-free ethyl alcohol required for university use: departments having large and continuing use of this material are permitted to order full-drum lots of alcohol. Alcohol must be stored in secured storerooms, and may be inspected and approved by a representative of the bureau of alcohol, tobacco and firearms. Complete and current inventory and disbursement records must be maintained on-site in strict accordance with government regulations.
Chemicals of Interest and Special Agents
Safety department must approve the purchase of all chemicals of interest as defined by the Department of Homeland Security, Cybersecurity and Infrastructure Security Agency (CISA) appendix for chemicals of interest. Additionally, special agents and toxins as defined by the Center for Disease Control, cannot be ordered without prior approval from the Institutional Biosafety Committee
Equipment inventory
All purchases of movable equipment exceeding the capitalized inventory threshold must be identified, recorded and accounted for as defined in “Equipment Inventory Control” policy 19.054.
Land and building acquisition
- All acquisitions, dispositions, and gifts of real estate and real property including land, buildings, and any other property related to real estate, including leases, are directed by the university planning and real estate and are subject to approval by the president, board of trustees, and state controlling board. Additionally, any request to occupy or vacate university owned or leased facilities, both on- and off-campus, are coordinated through university planning and real estate.
- As Specified in section 3333.071 of the Revised Code, no expenditure shall be made for land for higher education purposes by public institutions of higher education or agents of such institutions from any fund without the approval of the chancellor of higher education and the controlling board.
Bidding requirements
Bidding requirements for the purchase of non-construction-related goods and services are regulated Chapter 125 of the Revised Code. Construction bidding requirements are regulated by Chapter 153 of the Revised Code. All purchases exceeding Revised Code limits or Ohio University's board of trustees' competitive bidding thresholds must be publicly bid by the purchasing department. For further information, see the purchasing web page and “Purchasing - Competitive Bidding” policy 55.007.
Institutional commitments
Ohio university is also committed to the following programs:
- Ohio university sustainable procurement practices.
- Small business development program.
- Veterans-owned business program.
- American made materials standard.
- Americans with disabilities act compliance as defined in policy 03.003.
- Information technology accessibility as defined in policy 04.001
- Information technology security requirements
Equal opportunity statement
Ohio university is an equal opportunity institution. No person will be denied opportunity for employment or education or be subject to discrimination in any project, program, or activity, based on any of the categories listed as protected in “Nondiscrimination in education and employment” policy 40.001.
Blanket purchase orders
- Blanket purchase orders may be issued for the current fiscal year to provide for ongoing payments related to goods. Blanket purchase orders must be submitted to the purchasing department through the eProcurement system. Blanket purchase orders may not extend beyond the end of the fiscal year. Some grants or other accounts may not allow blanket purchase orders.
- Blanket purchase orders are subject to bidding requirements.
Payment requests
Limited purchases may be made through a payment request. Requests for a payment should be submitted to the payments department through the eProcurement system. Refer to finance department’s payment request guidelines.