1. PURCHASE ORDER GUIDELINES

The Arch Foundation for the University of Georgia, Inc. Purchase Order form must be used for all purchases, other than personnel services, that exceed $5,000 (including freight and taxes). A Purchase Order is designed to obligate Arch funds for specific items and to provide the vendor with the exact specifications, quantity, and the delivery date required.

Purchase Orders are to be prepared by the administrative unit head after ascertaining that appropriate bid procedures (see below) have been followed. The signed Purchase Order is then forwarded to the Expenditure Control Department, along with a copy of the bids, for review and to ensure the availability of funds. After approval by Arch, the original is returned to the requesting unit. One copy of the Purchase Order, along with the bids, is retained by Arch Office. The requesting unit sends the original to the vendor. After the goods have been received, a check request is prepared by the purchasing unit and approved by the appropriate Department Head and Dean/Vice President. The check request, original invoice, and a copy of the Purchase Order are forwarded to the Expenditure Control Department in the Arch Office for processing.

Payments to professional consultants, travel reimbursements, entertainment expenses (including meeting expenses), dues and subscriptions, office machine repairs, postage, and telephone bills are types of purchases not required for purchase by Purchase Order. Also, the purchase of office supplies and other materials from the University of Georgia can be made without issuing a Purchase Order if the University of Georgia used approved bid procedures to secure the materials. Bids are not required for equipment or other goods that are under state contract.

The following guidelines apply to purchases with Arch funds of equipment and other furnishings that have a total value of more than $5,000:

• Purchases of items costing more than $5,000 but less than $15,000 should be formally bid using the bid procedures followed by the Arch Office.

• For purchases of items projected to cost in excess of $15,000 the University unit should use the University of Georgia Procurement Office to bid the item(s). The purchase will be made through the University using a restricted account funded by Arch with the reimbursement being made from the appropriate Arch account.

• Any request(s) for purchase of computer equipment using Arch funds must be approved under the requesting unit's micro-acquisition plan or by the EDP committee for the University before any purchasing action is initiated.

• All equipment purchased with Arch funds will be transferred to the University to follow proper UGA inventory procedure and will become property of The University of Georgia.

• All equipment purchased with Arch funds requires the payment of state tax and property tax. The amount of the tax shall not be considered a part of the $5,000 minimum bid qualification.

If the items purchased are damaged, the order is incomplete or over/under shipped, or unacceptable substitutions have been made, it should be clearly indicated on the copy of the Purchase Order so that proper notification can be made to the vendor or carrier by the purchasing unit/department.

If a vendor over-ships the quantity specified in the Purchase Order by less than 5% of the order quantity, this is within reasonable limits. Payment for the quantity received will be made. The only exception to this will be if a Purchase Order specifically states that over-shipments are not acceptable.

2. BID PROCEDURES

Purchases in excess of $5,000 (excluding freight and taxes) should not be made nor will a Purchase Order be issued or approved until proper bid action has been completed. At least three bids should be received before a Purchase Order can be submitted. Bids and any appropriate comments should be recorded on the bid forms.

Bidding action is designed to obtain the desired goods at the lowest possible cost without impeding routine operations. Consideration involving the acceptance of a bid should include the following:

• Price

• Quality

• Delivery

• Availability of service, if equipment

Instructions for Preparation of Request for Bid

The Request for Bid should include the following information:

• Desired shipping date

• Date that the bid is needed for review and subsequent issuance of a purchase order

• Specify quantity required

• Specifications and complete description of the items for which a bid is requested are to be shown in this space

If a Purchase Order is submitted to Arch for a vendor whose quote was not the lowest received, justification (considered sole source justification) must be submitted for accepting the higher bid. In some instances there will only be one vendor able to meet the requirements or provide the desired item. If so, this should be noted on the bid form, which becomes a part of the accounting record. The administrative unit head has the primary responsibility for securing bids. Outlined below is general information as to what bid specifications should include.

A. PURCHASE SPECIFICATIONS

Buying proper quality depends upon having proper specifications from which to work as well as to refer to when checking material bought against these specifications.

Good specifications should be:

• Simple enough to be easily understood, but specific enough to prevent loopholes that will allow a bidder to evade the provisions and take advantage of either his competitors or the buyer

• Capable of being met by several sellers, when possible, without a major sacrifice in quality

• Identifiable, when possible, with some brand or specification already on the market

• Capable of being checked. Specifications should describe the method of checking that will govern acceptance or rejection. A specification that cannot be checked is of no value, and methods vary in accuracy.

• Reasonable in its tolerances

• As fair to the seller as possible

A specification is no more than an accurate description of the material to be purchased. There are many forms of specifications, including:

• Brand or trade name and model number

• Blueprint or dimension sheet

• Chemical analysis of physical properties

• Description of material and method of manufacture

• Description of purpose or use

• Identification with specifications known generally to the trade and to the seller

• Sample

• Combination of two or more of the above. In a combination specification, it is important to state which type governs in the event of inadvertent conflicts; for example, No. 4 above could take precedence over No. 1 above.

B. BRAND PREFERENCE (SOLE SOURCE)

Preference for a brand should be supported by written justification. It is usually desirable to give this justification in advance, with the purchase request. However, it may be given after bids have been received and substitute brands offered. Such justifications are most easily accepted when the differences between the preferred brand and the substituted brand are easily measured (e.g. height, weight, thickness, width, accessories, functions, etc.) and can be easily related to the purpose of the purchase. UGA Sole Brand/Sole Source form may be used.