Purchasing Policies & Procedures
Purchasing Policy and Procedure Number PPP 3
Best Judgment Purchasing ($5000.00 or Less) Dated: 11/01/2004
POLICY
Best Judgment purchases (defined as $5,000.00 or less)
may be placed by using the Purchasing Card, by processing as a direct
charge; or by entering a purchase order into PeopleSoft if the vendor
requires the hard copy.
PROCEDURE
Assuming a contract for the commodity or services does not exist; a best judgment order may be placed with the vendor of your choice. Obtaining competitive quotes is encouraged if possible, but documentation of such is not required. UW-Madison, UW-System and mandatory State Contracts may be viewed at the following address: http://www.uwgb.edu/purchasing/contracts/mandatory_contracts.htm
UW-Green Bay personnel obtaining quotes must be careful not to give one vendor an advantage by inadvertently sharing another vendor's prices, terms, or other bid information during the course of the bidding process. Only information needed to clarify a specification and prepare a bid may be given out and then must be made available to all vendors. Bid results cannot be released to the vendors prior to a purchase order being issued. Price quotes should be obtained from three or more viable vendors that are normally expected to carry or provide the supply, service or equipment. Always indicate that you are requesting quotes for ___. Repetitive/frequent orders from the same department for the same supply, service or equipment will be consolidated by Purchasing and the appropriate purchasing procedures will be followed.
Whenever possible, a minimum of one Minority Businesses Enterprise (MBE) should be contacted to provide a bid. For additional information on the MBE Program, see Website: http://www.doa.state.wi.us/section_detail.asp?linkcatid=46
If other campus departments or other government agencies are considered viable vendors, they should be contacted and considered prior to, not current with, any competitive bidding process.
Price quotes may be obtained through the following methods: current price
lists, advertisements, telephone or verbal quotes, facsimile quotations,
e-mail quotes, written bids, or previous quotes on file (Using previous
quotes on file: if the awarded vendor from a recent bid agrees to hold
to the same pricing and if this pricing is still to the University's advantage,
then bidding does not need to be repeated). Vendors contacted for price
quotes that exceed $1500, but are less than $4999.99, must be documented.
When comparing bids/quotes, the following elements must be considered:
price (discount), conformity with original specifications,
delivery date (if specified), freight charges, and special preferences
(Minority Business Enterprises receive a 5% price preference and Sheltered
Workshops receive a 2% price preference in competitive bidding. Contact
Purchasing for guidance in making these determinations.) When the recommended
award is made to another vendor other than the lowest bidder, justification
must be provided for each bid that is lower than the recommended award.
Examples include: the low bid is for an alternate item of inferior quality
(be specific), the low bid cannot meet the required delivery deadline
or other deviations from the bid specification.
Insurance coverage will be required from the successful
bidder for bids that require service, installation, inside delivery or
other work performed on campus. It is imperative that this requirement
be made known to the supplier as part of the bid specification. The awarded
vendor is required to send a Certificate of Insurance to the Purchasing
Office prior to being on campus to perform the work required. Purchasing
will monitor to ensure compliance. Contact Purchasing at X2598 for assistance
in this area.
There is ethics/conflict of interest issues to be aware of. Classified Staff refer to Classified Staff Code of Ethics and Chapter ER-MRS 24 of the Wisconsin Administrative Rules. Faculty and Academic Staff refer to Wisconsin Administrative Code, UWS Chapter 8. Website: http://www.legis.state.wi.us/rsb/code/uws/uws.html
Cash With Order
Requests for Cash with Orders (CWO) will be processed when the vendor requires payment prior to shipment/service or if prepayment will result in a discount to UW-Green Bay. "Cash With Order" or CWO must be indicated in the body of the document. Two copies of price documentation (subscription form, conference registration form, etc.) must be forwarded with payment request.
Blanket Orders
Departments should establish a Blanket Order when they place frequent orders for under $1500 to the same vendor for similar items, and the vendor does not accept the Purchasing Card. A “blanket” purchase order must be entered into PeopleSoft. Refer to PPP #10 for blanket order procedures.
Expediting Delivery
Departments are responsible for expediting their own
best judgment orders. Purchasing is available to assist departments whenever
necessary.