Purchasing

1. PURPOSE

Brigham Young University–Hawaii ("BYU–Hawaii" or "university") manages the risks and responsibilities of the procurement of goods and services by assigning responsible parties, establishing procedures and monitoring controls.

2. POLICY

The Purchasing department is the authorized agent of the university for making commitments to vendors and is accountable for the purchase of supplies, equipment, and services on behalf of all departments at the university. The Purchasing department is responsible for high dollar value transactions, and campus departments are responsible for low dollar value transactions. The Purchasing department is informed and reviews all transactions to ensure policies are being followed. No goods or services should be purchased or committed without proper prior approval of the cost center manager. Additional approval is needed based on the dollar amount, as defined in the Contracts and Legal Documents policy.

3. IMPLEMENTATION

3.1 Definitions

3.1.1 Dollar value

The threshold between “low” and “high” dollar value is the university’s standard corporate card transaction limit.

3.1.2 Established Vendor

A vendor in which we regularly do business with and meets the following 1) established as a supplier in Workday, 2) won at least 3 competitive quotations or bids, 3) agrees to BYU–Hawaii terms and conditions, and 4) the transaction is under $100,000.

3.2 High Dollar Value Transactions

The Purchasing department is responsible for high dollar value transactions. With consultation from departments, the Purchasing department helps to identify potential suitable vendors, establish the specifications given to vendors, select vendors to do business with the university, and ensure satisfactory delivery of requested goods and services. Departments are authorized to contact vendors to determine specifications or to obtain estimated costs but are not to initiate binding agreements nor commit funds for high dollar value transactions.

The university requires documentation of how best value was determined for high dollar value transactions. Purchasing agents have discretion in determining the appropriate documentation to use depending on cost and the unique situation. Purchases under $20,000 require a quote or a bid and a written explanation of how value was ensured. Transactions over $20,000 require multiple written quotes or bids. Alternative justification to multiple quotes can be existing contracts, consortium purchases, use of an established vendor or an approved sole source (see 3.7 Sole Source).

3.3 Low Dollar Value Transactions

Campus departments are responsible for low dollar value transactions. These purchases are most often made with a corporate card (see Corporate Card policy) or a supplier invoice request (see 3.9 Supplier Invoice Requests). Employees that have been issued a corporate card are authorized to make low dollar value purchases that have been preapproved by the cost center manager. This is most often to pay for travel expenses or goods from a retail store.

Employees may be assigned the role of procuring low dollar value goods, materials, services, or maintenance for the department. Higher corporate card spending limits may be requested if they regularly procure goods with a low value dollar unit cost, but the total transaction exceeds the low dollar value limit.

On rare occasions a cost center manager may authorize an employee to make a specific low dollar value transaction using personal funds. Employee personal reimbursement is made using an Expense Report in Workday and approved by the cost center manager. Personal cards should not be used for high dollar value purchases.

Students and volunteers making authorized low dollar value purchases for the university generally use the cash reimbursement voucher process. These purchases may not exceed $200.

3.4 Delegations

Low dollar value transactions are delegated to departments to purchase via corporate cards or supplier invoice requests (see 3.3 Low Dollar Value Transactions).

Travel purchases are delegated to the Travel Office and are governed by the Travel policy.

Procurement of merchandise for the BYU–Hawaii Store is delegated to that department and its purchasing agents.

Procurement for Construction and Capital Needs Assessment (CNA) Projects is delegated to the Campus Architect department and its purchasing agents.

3.5 Information Technology (IT) Purchases

Purchases involving technology are governed by the IT Hardware and Software Purchasing policy. Departments must work with the Office of Information Technology (OIT) before submitting a purchase requisition, using a corporate card, or supplier invoice request, for IT purchases. In addition to OIT’s approval, all other applicable university purchasing policies and procedures apply to IT-related purchases.

3.6 Purchase Requisitions

High dollar value purchases start by a department submitting a purchase requisition to the Purchasing Department. Requisitions are configured to provide the approvals and notify the Purchasing department to start the procurement process. Purchase requisitions do not have a minimum or maximum dollar limit. Though low dollar value items are normally purchased with a corporate card or supplier invoice request, in complex contractual situations or when purchasing expertise is needed, a requisition may be used.

3.7 Sole Source

The Purchasing department uses competitive quotations and bidding as tools to obtain the best value for the university. When a competitive quotation or bid is not feasible, such as when there are requirements that only one vendor can deliver, or there is only one authorized reseller on island, the purchasing agent will document the reasoning and the mitigating measures to ensure best value and then present it to the chief compliance officer for approval. The approval will be attached to the transaction in Workday.  

3.8 Independent Contractors

Tax regulations require the university to report certain payments for services. The university follows a process to determine whether individuals providing services to the university should be classified as independent contractors or employees. Independent contractors must complete the Workday Supplier Add form on the purchasing website and provide a W9 or W8-BEN. See the Independent Contractors/Consultants/Attorneys policy. Documentation requirements for a High Value transaction apply to all transactions including Independent Contractors (see 3.2 High Dollar Value Transactions).

3.9 Supplier Invoice Requests

For low value transactions under $2,500, a Supplier Invoice Request (SIR) may be used when a Corporate Card is not accepted or when there are additional transaction fees. The supplier needs to be set up in Workday.

For high value transactions an SIR must be preapproved by Financial Services and Purchasing. A contract must be in place and the supplier needs to be set up in Workday. If a contract is being established for the first time, normally a Purchase Requisition will be used.

4. RELATED POLICIES AND PROCEDURES

Purchasing Procedures
Expense Report Procedures
Corporate Card Procedures
Corporate Card
Contracts
Travel
Independent Contractors/Consultants/Attorneys
IT Hardware and Software Purchasing