Home >
Buying Information >
Buyers Guide >
Purchasing Basics
Delegated Purchasing
Authorized faculty and staff are empowered to purchase required products and
services from external suppliers on behalf of the University. With delegated
authority comes responsibility for ensuring that their procure-to-pay related
duties are executed in an efficient, effective, professional, and ethical manner.
Authorized BEN Buys purchasing system users and Purchasing Card cardholders are
accountable for ensuring that their purchase activity is accurate, necessary,
and in accordance with all applicable laws and University Financial Policies.
Signature Authority
Unless authority has been granted to an individual by the Trustees, only the
Purchasing Services department has the authority to enter into a purchase agreement
or otherwise obligate the University. A properly executed purchase order constitutes
a contract that is binding on both the University and the supplier. Some suppliers
may also require accompanying terms, conditions, agreements or forms. In all cases,
these agreements are to be signed by an authorized Purchasing Services
staff member in advance of any commitment to purchase
to a supplier. All documents without an authorized signature will be considered
invalid and not binding upon the University.
Purchase Order Terms and Conditions
The Purchase Order Terms and Conditions
and the purchase order
(collectively, the "Agreement") shall constitute the complete and exclusive
statement of the Agreement between University and an authorized BEN Buys supplier
with respect to the purchase of any products or services. To the extent that supplier
terms and conditions conflict with the University of Pennsylvania Purchase Order Terms
and Conditions, the latter shall control. Purchasing Services is the only organization
that is authorized to modify or agree to changes to the University's standard purchase
order terms and conditions.
Authorized Buying Methods
In accordance with University financial policies, all purchases from external
suppliers must be conducted via a University purchase order or purchasing card.
Authority to use these
authorized buying methods
is delegated to designated BEN Buys Purchasing System users and Purchasing Card
Program cardholders. The
Buying Decision Chart
provides guidance to faculty and staff to determine the appropriate buying method
and budget object code for required purchases.
Preferred Supplier Agreements
Faculty and staff are required to use the
Supplier Selection Guide
to determine the appropriate supplier for the required purchase. University preferred
supplier agreements must be used whenever and wherever possible to ensure the
University leverages its buying power and receives the "least total cost"
when purchasing products or services from an external supplier.
Competitive Bidding
A minimum of three formal written quotations are required for transactions with
an aggregate total cost of $5,000 in order to meet the University's
competitive bidding requirements. Exceptions to
the competitive bidding requirement are limited to purchases from University
preferred contract suppliers.
Purchasing Services reserves the right to obtain additional competitive quotations
regardless of the purchase order dollar value whenever, in its judgment, the quotations
may best serve the interest of the University.
The competitive bidding requirement will be waived by Purchasing Services if a
there is only one supplier capable of providing an product or service, and therefore
it is not possible to obtain competitive bids; or, where there are multiple sources
of supply, but for specific reasons the product or service must be purchased from a
specified supplier.
Supplier Payment
The timely payment of purchase order invoices
is a priority for the institution and a critical success factor for Purchasing Services
contracting and cost containment initiatives. Payment of supplier invoices according
to purchase order payment terms enables Purchasing Services to negotiate and award
best-in-class supplier discount pricing agreements.
Suppliers are directed to submit all purchase order invoices directly to
Accounts Payable for processing. At no time is a Penn faculty or staff member,
or student permitted to request a supplier to submit a purchase order invoice directly
to the ordering department instead of the Accounts Payable department.
BEN Buys users are required to proactively manage and respond to BEN Alerts to ensure
timely payment of supplier invoices.
Unauthorized Purchases
Only the Purchasing Services department has the authority to enter into a purchase
agreement or can otherwise obligate the University for Procurement Indebtedness.
Individual faculty and staff members are not authorized to sign on behalf of the
University, or to bind the University in any manner. At no time is a Penn
faculty or staff member, or student permitted to request a supplier to ship a product
or perform a service without prior issuance of an approved purchase order, verbally
place an order with an unapproved purchase order number, or verbally request a supplier
to add a product or service to an existing approved purchase order. Based
on contract law, individuals who do not have delegated authority, and who enter into
unauthorized agreements, may be held personally responsible for the cost of the
products or services purchased.
Sales Tax
The University is exempt from
Pennsylvania state sales tax
for most purchases. Upon request, Purchasing Services will furnish a copy of the
University's tax exemption certificate for purchase order or purchasing card
transactions that require a tax exemption certificate. Purchasing Services maintains
a list of states where the University is exempt from sales tax.
On-Site Insurance Requirements
Under a variety of circumstances, outside organizations are required to provide
evidence of commercial general liability insurance and to name the University as an
additional insured to the organization's insurance policy in order to be permitted to
conduct business on University property. All such arrangements require a written
contract or agreement with the University. Purchasing Services works collaboratively
with the Office of Risk Management
to ensure that proper insurance requirements are in place before any on-site work
begins.
Conflict of Interest
Penn faculty and staff who act on behalf of the University of Pennsylvania have an
obligation to avoid activities or situations which may result in a
conflict of interest or the appearance of conflict of
interest. Employees must not use their University positions to influence outside
organizations or individuals for the direct financial, personal or professional benefit
of themselves, members of their families or others with whom there is a personal
relationship.
Gifts and Gratuities
In order to avoid a conflict of interest or the appearance of a conflict of interest,
at no time should an employee solicit or accept
gifts from a supplier or contractor
or from a potential supplier or contractor. Ordinary business courtesies, such as
payment for a modest lunch are acceptable. Gifts which are promotional items without
significant value (less than $25.00), and which are distributed routinely by the
supplier to clients, are also acceptable.
Gratuities or gifts of money to an
employee cannot be accepted at any time.
Personal Purchases
Purchasing Services will not facilitate or approve any transaction for purchases
of a personal nature. Purchase order and purchasing card transactions containing
items which appear to be of a personal nature will be questioned by Purchasing Services.
Purchase Services will solicit the support of the
Office of Audit and Compliance
to investigate cases of inappropriate purchase activity.
A formal Employee Purchase Program
is available to faculty and staff for personal purchases from designated Penn contract
suppliers.
|
