The version of this rule that includes
live links to associated resources is online at https://www.ohio.edu/policy/55-030
(A)
Overview
The purchasing department is committed
to the efficient and economical acquisition of quality external goods and
services in support of Ohio university's overall mission. We do so by providing
our stakeholders with the knowledge and the tools to leverage the overall
purchasing power of the institution, mitigate risk, and reduce the overall cost
of goods and services. The university requires purchases from preferred and
contracted suppliers.
(B)
Purchasing
requirements
(1)
Preferred suppliers
Preferred suppliers are awarded through
the competitive bid process for a specific grouping of goods or services. The
supplier becomes preferred for only those items awarded through the competitive
bid. To that end, Ohio university is a member of the "Inter-University Council
Purchasing Group" (IUC-PG), a purchasing consortium composed of state of
Ohio-assisted colleges and universities, technical schools, and community
colleges. With the advantage of their combined purchasing power, the IUC-PG
members jointly establish and utilize several price agreements. Contracts
established by the state of Ohio, department of administrative services, and
other approved public consortia are also available to Ohio university's
purchasing department. Further, the purchasing department is a member of
several competitively bid purchasing consortia through which suppliers are
given preferred status and goods and services may be procured. When preferred
suppliers are unable to meet a legitimate business need in supplying a good or
service in which they have been awarded, a purchasing exception may be
requested.
(2)
Buy American
For those purchases not covered by a
preferred supplier, the university is required to give first consideration to
goods that are mined or produced in the United States. Please refer to section
125.09 of the Revised Code
(ORC), and Chapter 123:5-1 of the Administrative Code
(OAC).
(3)
Buy Ohio
(a)
The university is required to participate in the buy
Ohio program, defined by section
125.11 of the Revised Code, and
rule
123:5-1-06
of he Administrative Code.These codes establish procedures for administering
the in-state preference program of buy Ohio. These preferences permit bids
containing products that are produced in Ohio or a border state, to be selected
for contract award even if they exceed prices offered in bids not containing
Ohio or border state by no more than five per cent. The university should apply
these preferences when making purchases under their direct purchase authority,
specify which preference(s) will be applied in the solicitation, and request
information as to the point of manufacture. Law also provides that bidders from
states bordering Ohio qualify on an equal basis as an Ohio bidder provided the
border state does not levy a preference against Ohio bidders.
(b)
Please note that
under the buy Ohio program, bidding requirements remain unchanged.
(4)
Additional state requirements
The purchasing department oversees
purchases from state programs that provide ongoing community service through
the sale of goods and services and/ or provide opportunities for disadvantaged
businesses.
(a)
Opportunities for Ohioans with disabilities
Sections
4115.31 to
4115.35 of the Revised Code
direct that any instrumentality of the state utilize a qualified non-profit
state agency for the purchase of products or services which are available from
a work center employing persons with disabilities.
(b)
Ohio penal
industries ("OPI")
Section
5147.07 of the Revised Code
directs that any instrumentality of the state utilize the department of
rehabilitation and corrections for the purchase of products available from
state of Ohio correctional and penal institutions
(c)
Bureau of
services for the visually impaired ("BSVI")
Section
3304.30 of the Revised Code
directs that any person who is in charge of a state governmental facility must
consult with the director of BSVI prior to the acquisition, renovation, lease,
or rental of a property to jointly determine if a site may offer a suitable
vending facility, as defined in section
3304.28 of the Revised Code to
be operated by BSVI.
(d)
Minority business
enterprises
Ohio university is committed to the
state of Ohio goal to set aside fifteen per cent of spending for minority
business enterprises. See section
125.081 of the Revised Code for
more information.
(e)
Encouraging diversity growth and equity program
("EDGE")
Ohio auniversity is also committed to
the encouraging diversity growth and equity ("EDGE") program applicable for all
purchases of supplies, services, construction, and architect and engineering
services. Ohio university will attempt to make at least five per cent of such
purchases from EDGE-certified
companies.
(C)
Authority
(1)
All purchasing
and contracting authority resides with the Ohio university board of trustees.
The Ohio university board of trustees has authorized the president to sign on
behalf of the university all contracts and other documents in which the
university incurs or discharges a legal obligation. Authority to purchase and
contract has been delegated to the vice president for finance and
administration.
(2)
Authority to commit and sign on behalf of the
institution is limited to and defined by the institutional signature
authority
(D)
Purchasing ethics
(1)
Unauthorized
purchases
No individual outside of the purchasing
department has the authority to enter into purchase contracts, or in any way to
obligate Ohio university for procurement indebtedness unless specifically
authorized to do so by the director of purchasing, the vice president for
finance and administration, or the president. Any such negotiations are
considered an unauthorized purchase and the individual could be personally
liable for the purchase in accordance with section
3.12 of the Revised
Code.
(2)
Personal purchases
The university will not purchase any
supplies or equipment for the personal use of university employees. Even though
the individual involved may fully reimburse his or her department's budget,
this procedure is in violation of state regulations; refer to section
4113.17 of the Revised Code.
Those found in violation of this policy may be subject to disciplinary action,
up to and including termination.
(3)
Conflict of
interest
(a)
It
is essential that uniform purchasing policies be followed throughout the
university in order to maintain standards of efficient business practice and
positive relationships within the university as well as with outside suppliers
and payees. Furthermore, a public educational institution has a responsibility
to its multiple stakeholders, including the taxpaying public and donors as well
as to its students, faculty, and staff. It must conduct its business fairly, in
accordance with state and federal regulations, university policy, and external
restrictions imposed by donors or sponsors.
(b)
All employees and
trustees of Ohio university, as public servants, must observe the highest
ethical standards in discharging their responsibilities. Employees and trustees
must avoid any activity or interest that might reflect unfavorably on an
individual's or the university's stewardship of resources, and must observe
those provisions of the Ohio ethics laws that apply to them, including its
conflict of interest restrictions.
(c)
A purchase order
or contract to a supplier where an organizational conflict exists.
Organizational conflicts of interest means that because of relationships with a
parent company, affiliate, or subsidiary organization, the university is unable
or appears to be unable to be impartial in conducting a procurement action
involving a related organization per
2 C.F.R §
200.318(c)(2). Conflict of
interest issues are referred to legal affairs and handled in accordance with
Ohio university policies/ processes, state of Ohio law and any federal
requirements.
(4)
Public contract
(a)
Any purchasing
transaction of the university is a "public contract." With few exceptions,
section 2921.42 of the Revised Code
makes it improper for any employee of the university to have an interest in the
profits or benefits of a contract entered into by the university; and prohibits
the use of one's position to "secure authorization of any public contract in
which he/she, a member of his/her family, or any of his/her business associates
has an interest." For the purposes of this policy, "family" is defined as
including: grandparents, parents, and children whether dependent or not,
grandchildren, brothers and sisters, or any person related by blood or marriage
residing in the same household, as extended by "Domestic Partner Benefits"
policy 40.013. Ohio university prohibits the buying of goods or services from a
university employee or a member of his or her family without the prior approval
of legal affairs.
(b)
In addition to the legal implications, it is important
that as a public institution, we avoid transactions that might appear to be a
conflict, even if technically no conflict exists.
(5)
Reciprocity
Purchasing transactions shall be
awarded only on the basis of merit. In purchasing negotiations, "reciprocity"
is a mutual or cooperative exchange of favors or privileges. The university
does not engage in or submit to the practice of reciprocity in any purchase
transactions.
(6)
Gifts and gratuities .
(a)
State law
prohibits the receipt of gifts or gratuities from suppliers, payees, or others
who do business with the university; refer to Chapter 102 of the Revised
Code.
(b)
If gifts are received from suppliers or payees by
university employees, they must be reported to purchasing department for
disposition
(E)
Record
retention
All records and documentation relating
to university purchases are governed by "Records Management and Archiving"
policy 93.002. Additional information may be found on the finance web
page.
(F)
Tax exempt status
Ohio university is exempt from paying
Ohio sales tax under section
5739.02 of the Revised Code;
hence, effort shall be exercised to ensure that sales tax is not charged on
purchases made on behalf of the university. Ohio university has a reciprocal
sales tax agreement with many other states. The finance department maintains a
listing of states and their sales tax exemption status.
(G)
Policies
regardless of fund source
All university funds, regardless of
source, must be handled consistently in accordance with university policy and
uniform administrative requirements, cost principles, and audit requirements
for federal awards also known as uniform guidance. All funds shall be
administered by the finance department in a uniform manner and in accordance
with Ohio university policy and procedures. For information on the foundation
guidelines, see "Foundation Expenditures" policy 03.016. Grant funding must
also follow specific guidelines and restrictions set forth by the granting
agency.
(H)
Purchases requiring special review and approvals
Certain purchases that are processed
through the purchasing department require additional approval from the offices
listed in paragraphs (H)(1) to (H)(7) of this rule. A purchase order must be
issued for these categories. Payment request transactions are not
acceptable.
(1)
Building services and supplies
(a)
Any work which
impacts architectural, structural, mechanical, electrical, grounds, custodial,
or security systems requires prior approval from facilities
operations.
(b)
All purchases of major construction and renovation as
regulated by Chapter 153. of the Revised Code must be managed by the office of
architecture, design, and construction and are to be monitored by the capital
projects finance office.
(c)
Chapter 4115. of the Revised Code, which relates to the
payment of prevailing wage rates on public improvements, states that prevailing
wages must be paid on projects whose estimated or actual values equal or exceed
the current prevailing wage threshold levels.
(2)
Radioactive
materials
Safety department must approve the
purchase of all radioactive material and radiation producing devices as per the
"Radiation Safety Handbook."
(3)
Controlled
substances
Controlled substances ("CS"s) are
chemicals that are regulated by the federal drug enforcement administration
("DEA") and the Ohio state board of pharmacy. DEA regulations and state
pharmacy board rules allow faculty and staff researchers (investigators) to
obtain and use CSs in institutional animal care and use committee
("IACUC")-approved animal research or institutional review board
("IRB")-approved research. All controlled substances, and any items used in
their delivery (e.g., needles, syringes, sterile saline, etc.) must be ordered
through the purchasing department and only by a properly authorized and
DEA-licensed person, whose name is listed as the responsible person on a
"Terminal Distributor of Dangerous Drugs License" for the state of Ohio, Ohio
state board of pharmacy. For DEA schedule 1 and 2 controlled substances, a DEA
form 222 must be completed and submitted with your
requisition.
(4)
Hazardous materials
Safety department must be advised of
the purchase of all hazardous materials per the "Safety Resources for Hazardous
Materials."
(5)
Animals
(a)
The purchase and use of vertebrate animals at
educational institutions is subject to state and federal regulation. The office
of research compliance in the vice president for research planning unit manages
animal use at Ohio university. Anyone wishing to use live vertebrate animals at
Ohio university for research, teaching, or testing must have that use reviewed
and approved by the IACUC prior to order or use.
(b)
Laboratory animal
resources ("LAR") is the only campus entity authorized to purchase live
vertebrate animals or to grant exceptions to the animal purchasing provisions
of this policy. For further information, see the IACUC web page and "Exceptions
to or Restrictions of University Policies" policy 01.003.
(6)
Alcohol ordering and control
To comply with U.S. treasury department
regulations, these special procedures are in effect to govern the ordering,
use, control, and reporting of tax-free ethyl alcohol required for university
use: departments having large and continuing use of this material are permitted
to order full-drum lots of alcohol. Alcohol must be stored in secured
storerooms, and may be inspected and approved by a representative of the bureau
of alcohol, tobacco and firearms. Complete and current inventory and
disbursement records must be maintained on-site in strict accordance with
government regulations.
(7)
Chemicals of
interest and special agents
Safety department must approve the
purchase of all chemicals of interest as defined by the department of homeland
security, cybersecurity andinfrastructure security agency (CISA) appendix for
chemicals of interest. Additionally, special agents and toxins as defined by
the center for disease control, cannot be ordered without prior approval from
the institutional biosafety committee
(I)
Equipment
inventory
All purchases of movable equipment
exceeding the capitalized inventory threshold must be identified, recorded and
accounted for as defined in "Equipment Inventory Control" policy
19.054.
(J)
Land and building acquisition
(1)
All acquisitions,
dispositions, and gifts of real estate and real property including land,
buildings, and any other property related to real estate, including leases, are
directed by the university planning and real estate and are subject to approval
by the president, board of trustees, and state controlling board. Additionally,
any request to occupy or vacate university owned or leased facilities, both on-
and off-campus, are coordinated through university planning and real
estate.
(2)
As specified in section
3333.071 of the Revised Code, no
expenditure shall be made for land for higher education purposes by public
institutions of higher education or agents of such institutions from any fund
without the approval of the chancellor of higher education and the controlling
board.
(K)
Bidding requirements
Bidding requirements for the purchase
of non-construction-related goods and services are regulated Chapter 125. of
the Revised Code. Construction bidding requirements are regulated by Chapter
153. of the Revised Code. All purchases exceeding Revised Code limits or Ohio
university's board of trustees' competitive bidding thresholds must be publicly
bid by the purchasing department. For further information, see the purchasing
web page and "Purchasing - Competitive Bidding" policy
55.007.
(L)
Institutional commitments
Ohio university is also committed to
the following programs:
(1)
Ohio university sustainable procurement
practices.
(2)
Small business development program.
(3)
Veterans-owned
business program.
(4)
American made materials standard.
(5)
Affirmative
action contract compliance.
(6)
Americans with
disabilities act compliance as defined in policy 03.003.
(7)
Information
technology accessibility as defined in policy 04.001
(8)
Information
technology security requirements
(9)
Disadvantaged
business enterprise program for federal awards.
(M)
Affirmative
action equal opportunity statement
Ohio university is an affirmative
action, equal opportunity institution. No person will be denied opportunity for
employment or education or be subject to discrimination in any project,
program, or activity, based on any of the categories listed as protected in
"Equal Employment and Educational Opportunity" policy
40.001.
(N)
Blanket purchase orders
(1)
Blanket purchase
orders may be issued for the current fiscal year to provide for ongoing
payments related to utilities, maintenance agreements, or leases. Blanket
purchase orders must be submitted to the purchasing department through the
eprocurement system. Blanket purchase orders may not extend beyond the end of
the fiscal year. Some grants or other accounts may not allow blanket purchase
orders.
(2)
Blanket purchase orders are subject to bidding
requirements. Blanket purchase orders are not meant for the purchase of
goods.
(O)
Payment requests
Limited purchases may be made through a
payment request. Requests for a payment should be submitted to the payments
department through the eprocurement system. Refer to finance department's
payment request guidelines.
The version of this rule that includes
live links to associated resources is online at https://www.ohio.edu/policy/55-030