Section 2: Purchasing

Subject: Special Procurements

Issue Date: February 1, 2003

Revised Date: October 21, 2005

1.      General 

Certain procurements of goods and services require additional processing and/or approval or handling by another University department.  The following sections will provide guidelines for requesting departments when processing these types of procurements. 

2.  Hazardous Materials 

To ensure the safe and legal use of hazardous materials, the Environmental Health and Safety (EH&S) Office has the responsibility for approving the purchase of select hazardous materials.  These materials include the following: 

• EPA-designated “highly toxic” materials
• Carcinogens
• Select agents
• Radioactive materials
• Bio-safety Level II agents and above

Requesting departments may request such materials but must first obtain the written approval of the EH&S Office prior to forwarding a departmental purchase requisition (DPR) to the Purchasing Department.  If the purchase is handled on a small purchase order (SPO) or a Procurement Card, written approval must be obtained in advance of issuing the order to the vendor.  This documentation must be attached to the purchase transaction file as required by program procedures.  See Handbook of Operating Procedures, Section 8.8.2. 

3.  Drugs, Pharmaceuticals, and Controlled Substances 

The purchase of certain types of drugs, pharmaceuticals, and chemicals are restricted by the Drug Enforcement Agency (DEA) of the U. S. Government.  Only authorized, licensed individuals may order these controlled substances.  The University does not have an institutional DEA license for the purchase of controlled substances; therefore, the end user of the product must have a license to purchase controlled substances and must document that license in the departmental purchase requisition.  Purchases of controlled substances are not permitted in the SPO Program. 

4.  Grants and Contracts Accounts 

Any purchases from Grants and Contracts accounts (e.g., Account 5xxxxx) must have the approval of the Grants and Contracts Office before the Purchasing Department may process a purchase order to a vendor.  Purchases from federal grants or contracts will be made in accordance with all applicable federal rules and regulations as determined by the Grants and Contracts Office.  Account managers should abide by any grant or contract restrictions when making purchases through the SPO Program. 

5.  Printing 

All printing for University offices, departments, and programs should be handled through the University Print Shop.  The Office of University Relations and the Print Shop are responsible for ensuring that all printing jobs conform with the University’s graphic standards.  Refer to Handbook of Operating Procedures, Section 4.2.1, for further information.  If the Director of University Relations makes a determination that the University Print Shop will not be used on a certain printing request, he/she will inform the requesting department of such and instruct them to submit a DPR to the Purchasing Department for handling.  Note:  The Texas Constitution requires that all printing be competitively bid regardless of the dollar amount.   Account managers processing SPOs for printing must have complied with these requirements prior to issuing an SPO to a vendor.  

6.  Classified Advertisements 

Advertisements for recruitment of staff positions should be coordinated through the Office of Human Resources (OHR).  Advertisements for recruitment of faculty positions should be coordinated through the respective college’s administrative services officer (ASO).  The Director of Materials Management has authorized the OHR/ASO to purchase classified advertisements for staff/faculty positions, respectively, under $5,000 without the prior approval of the Purchasing Department.  A request for advertisement must be made on the appropriate Requisition for Personnel form.  The OHR/ASO will obtain firm pricing on advertisements from the publisher of the newspaper or journal in which the advertisement will be published.  The OHR/ASO will coordinate the content of the advertisement with the requesting department and obtain fund approval from the appropriate account manager.  The OHR/ASO will submit the required payment documentation directly to the Accounts Payable Office for payment.

Advertisements other than for employee positions as stated above should be processed under procurement procedures as established by the Director of Materials Management.  It is recommended that advertisements which fall under the SPO Program limit be handled by the requesting department on an SPO issued to the vendor. 

7.  Equipment Maintenance and Rentals 

Maintenance and rental agreements may be requested by departments either through the Purchasing Department or the Small Purchase Order Program if within the program spending limit.  DPRs for maintenance or rental agreements should be submitted at least thirty days prior to the commencement date desired.  The beginning date of service will be effective on the date a purchase order is issued to a vendor by the Purchasing Department.  Renewal service is not automatic.  The requesting department must submit a DPR for continued coverage.  Best value procurement procedures will be applicable to maintenance and rental requests (see Section 2 – Best Value Procurement Procedures of this manual). 

8.  Equipment Internal Repair Services 

Normally, internal repairs to equipment cannot be reasonably defined prior to the actual repair.  An internal repair occurs when the extent of the repairs cannot be determined until the equipment is disassembled.  Internal repairs will always contain labor and may include parts.  Requests for internal repairs should be estimated on either a DPR if processed through the Purchasing Department or an SPO issued by the requesting department if under the SPO Program limit.  Confirmation from the vendor should be requested and approved before the vendor proceeds with the repairs.  Actual repair costs will then be encumbered against the purchase order or SPO issued. 

9.  Registration Fees 

Meeting and other travel related registration fees must be purchased through the Application for Official Travel.  The Purchasing Department will not process requisitions for these fees.  See Handbook of Operating Procedures, Section 8 for guidelines on processing of registration fees. 

10. Lease of Space 

Refer to Handbook of Operating Procedures, Section 8.2.4. 

11. Moving Services 

Departments are not permitted to contract for moving services associated with the employment of permanent faculty and staff.  Only the President and the Vice President for Business Affairs may authorize and approve moving expenses.  DPRs for moving services will not be processed for departments unless advance written approval has been obtained from the President or Vice President for Business Affairs as appropriate. 

12.  Guest Lecturer Services 

Requests for guest lecturer services are not processed through the Purchasing Department.  Refer to Handbook of Operating Procedures, Section 8.2.7, for guidelines on the purchase of guest lecturer services. 

13.  Purchases From Employees 

Purchases of any supplies, materials, services, equipment, or property from University employees are not permitted unless the cost is less than that from any other known source and until approved in advance by the President.  Requesting departments should consult with the Purchasing Department prior to submitting a DPR for a purchase from an employee.  Refer to Handbook of Operating Procedures, Section 8.2.4.  

14.  Warranties 

Where warranties are known in advance, warranty terms will be indicated on the purchase order by the Purchasing Department.  Many items are delivered with warranty certificates attached to or inside the shipping container.  It is the requisitioning department’s responsibility to record and safeguard these warranty certificates in the event service is required during the warranty period.  The requesting department will arrange for warranty service calls directly with the vendor. 

15.  Reimbursements for Purchases 

Reimbursements may be made to employees for purchases made on behalf of the University.  Employees may use personal funds to make purchases of goods or services up to $1,000.00 with the prior approval of the departmental account manager.  Such purchases may be goods or services needed in research or other business purpose when circumstances are such that issuing a University purchase order to a vendor through normal purchasing procedures is not possible and immediate payment is necessary in order to obtain those goods or services.   

Any reimbursement request must be made on a reimbursement purchase requisition approved by the account manager and submitted to the Purchasing Department.  Purchases must be itemized on the requisition and the business purpose of the expenditure must be stated.  All original paid receipt(s) must be attached to the requisition.  Receipts must be legible; show the amount paid, item(s) purchased, vendor’s name, and date of purchase; and have a cash register validation, “paid” stamp, or vendor certification indicating paid status.  Reimbursement will not be approved for receipts that are lost, stolen, destroyed, or “homemade”.  

Sales taxes are not reimbursable.  A tax exemption certificate must be presented to the vendor at the time of purchase.  Certificates may be obtained by accessing the Purchasing Department’s web site at:

http://www.utpa.edu/materialsmgt/PURCHASING/SALES_TAX_EXE_CERT.DOC 

Reimbursements for the following items are not allowed: 

·        Ammunition

·        Animals

·        Cash handling items (receipts, boxes, safes, deposit books, etc.)

·        Consulting services

·        Controlled substances

·        Hazardous materials requiring review and approval from the Department of Environmental Health and Safety

·        Items for personal use

·        Items or services prohibited by UTPA policy and/or state law

·        Items or services required to be provided by University departments

·        Membership dues

·        Postage

·        Professional services

·        Purchases from University employees

·        Purchases requiring signature of vendor agreements or contracts

·        Purchases that can be anticipated and acquired through regular purchasing methods

·        Recurring expenses

·        Tickets for events required to be delivered to the Office of the Comptroller

·        Travel expenditures (must follow University travel policy and procedures)

·        For Grants and Contracts Accounts:

                        Refreshments/Food – unless specifically approved by funding agency

                        Entertainment

                        Fines

                        Donations 

Regulations and restrictions governing the types of items or services purchased from University accounts are applicable to reimbursements.  

16.  Reimbursements for Business Entertainment Expenses 

Reimbursements for business entertainment expenses shall be made in accordance with Handbook of Operating Procedures Section 8.6.7.  A departmental purchase requisition is not required in order to process a reimbursement for eligible business entertainment expenses.  

17.    Cellular Telephone Requests 

Cellular telephones are used by the University to improve efficiency and customer service.  They are to be used only if they are the most cost-effective and practical methods to conduct University business.  Cellular telephones shall not be used as personal benefits. 

All requests for the purchase or lease of cellular telephones and/or services must be initiated on the DPR.  The requestor shall attach to the DPR a written justification of the cost and service benefit to the department and University of cellular telephone use and route them, with account manager approval, to the Purchasing Department.  Information on cellular phone services is available from the Purchasing Department.  Requests to upgrade existing cellular telephone service plans may be requested provided that a written justification as stated above is included with the request. 

Cellular telephones are property of the University.  Cellular telephones that are no longer in use must be sent to University Surplus.  Refer to Handbook of Operating Procedures, Sections 8.1.1 through 8.1.4, for policies regarding University property. 

18.   Purchases of Information Technology Equipment  

Purchases of Information Technology (IT) equipment (software, computers, telecommunications equipment, etc.) of over $5,000 require the approval of the Chief Information Officer (CIO).  This approval should be obtained via consultation with the CIO prior to forwarding a DPR to the Purchasing Department.  All purchases of networking or IT security products require the prior approval of the CIO regardless of amount.  The exceptions to this policy are purchases by faculty of IT equipment for use in research, provided that the equipment is not to be connected to the campus network.  These purchases do not require any procurement review and approval by the CIO.  However, a statement regarding this exception must be included on the DPR.  Written approval of the CIO, if required, should be obtained on the DPR.