PURCHASING
70.13
Revised 9-06
Purchasing Services
335-3541
OVERVIEW
A department processes purchases through Purchasing Services when:
- The department wants assistance with a purchase, or
- The total amount of a purchase exceeds the current direct buy limit ($3000) (RCW 43.19.1906), or
- The purchase may not be processed with a Department Order (see 70.07) or a purchasing card (see 70.08).
DEPARTMENTAL REQUISITION
Prepare a Departmental Requisition to initiate a purchase through Purchasing Services. See 70.10 for Departmental Requisition instructions.
PURCHASING SERVICES
Upon receipt of a Departmental Requisition (see 70.10), the appropriate Purchasing Services buyer processes the transaction.
Purchasing Services enters information from the Departmental Requisition into the PAPR AIS computer application. After the transaction is entered, the requisitioning department can monitor the progress of the transaction online in PAPR. See 85.33 for more about accessing PAPR.
PAPR encumbers the transaction in the WSU accounting system.
The Buyer's Role
The buyer determines the purchasing procedure. The decision is based on the good or service to be purchased and the proposed use. The buyer uses the best method to fill the Departmental Requisition within the limitations of state laws and regulations and WSU policies.
BIDDING PROCEDURES
Competitive Bidding
The buyer must competitively bid purchases that exceed the direct buy limit (see above). If the buyer believes a better price will result, purchases costing less than the direct buy limit may be bid.
At least three potential suppliers are sent a Bid Request. This is a request to the supplier to enter a bid on the item described in the Departmental Requisition.
The buyer uses sealed bid procedures for all transactions expected to equal or exceed the current sealed bid limit.($35,000). The buyer may use sealed bid procedures for any transaction if the buyer believes that a better price will result. (RCW 43.19.1906)
Time Allowed For Bidding
Bid processing may require from 7 to 21 working days depending on the complexity, length and urgency of the request.
The vendors are allowed 7 to 10 working days to submit a bid.
A longer time is allowed on bids of unusual complexity.
If the value of the item is greater than the sealed bid limit, a specific date is established for the bid opening. Bids may not be opened before this date.
If all the suppliers respond before bid due date and if the item to be purchased is valued at less than the sealed bid limit, Purchasing may open the bids and proceed with the purchase.
Bid Award
Generally, Purchasing Services awards the contract to the vendor submitting the lowest bid unless:
- The lowest bidder is not qualified for documented reasons of capacity, reputation, time requirements, or inability to meet written bid specifications.
- A competing bidder is a certified Minority and Women's Business Enterprises (MWBE) vendor. WSU awards contracts to MWBE vendors when the MWBE bid is within 5 percent of the otherwise low responsible bid. (RCW 39.19, WAC 326-02, WAC 326-20)
- The lowest bidder is from a state with a currently-active in-state preference rule for procuring goods and services. A specified percentage penalty (usually 2-5 percent) is added to bids submitted by vendors from such states. Purchasing Services maintains a list of states and percentage penalties. (WAC 236-48-085)
- The requisitioning department, after being notified of bid results by Purchasing Services, has a specific objection to the low bid. In such cases, the requisitioning department notifies Purchasing in writing, providing objective justifications for not accepting the low bid.
The buyer may request assistance from the staff member who initiates the requisition in evaluating the bids before the Purchase Order is issued.
PURCHASE ORDERS
Purchasing Services routes a Purchase Order to the vendor. In certain cases, a contract is sent to the vendor. The Purchase Order or contract directs the vendor to proceed with the transaction.
Purchasing Services sends another paper copy to the requisitioning department.
CHANGE ORDERS
After a Purchase Order, which is a contract, has been issued, it may be modified with a Change Order. This may occur under the following conditions:
- When a vendor notifies WSU of a price change.
- When a department requests a quantity change.
- When one party, the vendor or the department, indicates a need for change in delivery or any other specification.
The requisitioning department may want the change.
The successful vendor may request a change.
- If either party wishes to cancel all or part of the contract prior to shipment.
- At any time the buyer's judgment indicates that a change materially alters the contractual responsibility of either party.
There are exceptions to the need for a Change Order. If the buyer's judgment indicates that a trusted vendor will accommodate a minor change, a Change Order may not be necessary. Change Orders should not be issued under the following circumstances:
- For follow-up activity.
- For canceling a contract or for changing vendors.
- For changes internal to WSU. For example, changing budget coding, accepting vendor's cancellation, or change affecting an encumbrance of $100 or more. NOTE: Information concerning cancellation of the Purchase Order must be forwarded to the department, Accounts Payable in the Controller's Office, and Central Receiving.