Purchasing - Finance and Administrative Services

Campus CorrespondencePurchasing OfficeFrom: Purchasing Office Date: January 15, 2004To:Re:Deans, Directors and Department HeadsDirect Charges of Non-Competitive Purchases~ Revised Policy & Procedure ~Memorandum No. PUR04-05PurposeThis memorandum is issued to communicate and implement a revision to the University’s currentprocurement policy and procedure for processing non-competitive purchases and invoices,commonly known as Direct Charges; and, to define those purchases and payments, regardless ofprice, that a Department Authority may make, approve and process directly to Accounts Payable forpayment.This change is made to simplify, streamline and expedite the procurement/invoice/payment processfor certain defined purchases, eliminating the need for a requisition, Purchasing review and issuanceof a formal University purchase order.Please be assured that my office and staff remain available to discuss and offer direction in anyinstance you may question or wish to seek interpretation, judgment and/or applicability under thisrevised policy/procedure.Legal AuthorityThe Louisiana Procurement Code (RS 39:1551 et. seq.) and the Governor’s ‘Small Purchases’Executive Order No. MJF 02-56 identify certain goods and services that may be procured noncompetitively,regardless of price. However, certain such purchases remain subject to Universitypolicies, dollar amounts, approvals and procedures specific thereto, regardless of any Stateexemption.Revised Policy & Procedure / Process FlowPurchasing review and disposition is no longer required for those non-competitive purchasesspecifically defined in Attachment I, regardless of price and when the Vendor does not require aformal University purchase order, and are subject to any procedural requirements defined inAttachments II and III.For such purchases, Departments are instructed to submit approved and applicable documents*directly to Accounts Payable for payment processing. [* e.g. Stamped/Coded/Approved VendorInvoice, AS116 University Prepared Vendor Invoice, AS02 Miscellaneous Check Request, AS209Special Handling Payment Request, etc]Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

Deans, Directors, Department HeadsJanuary 15, 2004Page TwoIf a Vendor will not accept a verbal purchase authorization or an internal department number (e.g.Work Order #, etc) and requires a formal University PO number, Departments are instructed tosubmit a requisition with applicable attachments to Purchasing for PO issuance.Attachment I identifies those non-competitive purchases and associated vendor invoices that aDepartment may ‘stamp/code/approve’ and submit directly to Accounts Payable for invoice paymentwithout Purchasing intervention.Attachment II offers reference notes for assistance to further define, explain &/or clarify these noncompetitiveprocurements, and addresses any specific University policy or procedure relativethereto.Attachment III addresses specific requirements for non-competitive/Direct Charge purchases andpayments of Publications, Copyrighted Materials, Equipment Repairs and Repair Parts.AdvisoriesDeans, Directors and Department Heads are advised that they assume sole audit responsibility andaccountability for the approval of any such non-competitive procurements and invoice payments,whether approved by him/herself or any delegated signatory authority.• For audit purposes, it is your responsibility to maintain both an historical and currentrecord of your specific delegated signatory authorities; and to timelycommunicate and formally document any delegation/signatory changes withapplicable University offices.• Be advised that certain ‘Direct Charge’ purchases/invoices may require supportingdocumentation or approval processes for legal compliance and audit purposes, asidentified in Attachments I, II and III. Please ensure your staff is familiar with anysuch additional requirements.• If ever a Vendor submits a pre-printed Agreement or Contract form that requires anapproval signature, it must be submitted to Purchasing for review and execution priorto making the purchase. Departments are not authorized to sign any Vendor form(see ‘Authority to Sign Purchasing Contracts’ at our website).Vendor forms typically contain terms and conditions contrary to State laws andunknown to the Department; therefore, I have been delegated sole authority toexecute such forms on behalf of the University. It is my associated responsibilityand duty to negotiate mutually acceptable revisions to contractual terms andconditions with the Vendor to ensure legal/policy compliance.The executed Vendor form will be returned to the Department, who may then makethe purchase. A copy of the Vendor agreement bearing my signature is to beattached to your Direct Charge submittals to Accounts Payable.Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

Deans, Directors, Department HeadsJanuary 15, 2004Page ThreeClosingPlease be advised that all such ‘Direct Charge’ non-competitive procurements require the approvalof the Department Head (or equivalent) or his/her formally delegated agent, and are subject to auditby the Office of Purchasing and/or Legislative Auditor.Findings of non-compliance may result in the reduction or revocation of your delegated purchasingauthority; as well as your participation in, and benefit from, this streamlined ‘Direct Charge’procurement process.I am enthusiastic about this streamlining initiative, and know that our success will ultimately bemeasured on audit compliance. In keeping, please do not hesitate to contact my office or any staffmember if ever doubtful or desiring clarification as to applicability under this revised policy andprocedure.Rose Mary Wilhelm, CPPBExecutive Director of Procurement Servicesand Property ManagementRMW/ref/vpAttachmentscc:Dr. Jerry J. Baudin, Vice Chancellor, Finance & Administrative ServicesMs. Donna Torres, Executive Director, Accounting ServicesMs. Patrice Gremillion, Director, Accounts PayableLegislative AuditorOffice of Purchasing StaffWetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

Attachment INon-Competitive Purchases / Direct ChargesReview the corresponding ‘Note’ in Attachment II for a further definition, explanation and/or clarification of anynon-competitive procurement identified below, and to be advised of any specific exceptions and University policyor procedure relative thereto.Those purchases designated with (*) require the Department to secure additional documentation and/orapprovals prior to making the purchase, and to attach evidence of such with its submittals to Accounts Payable.Refer to Attachments II &/or III if so marked.Non-Competitive PurchasesDirect ChargesProcurementAuthorityObjectCode(s)NoteNo.Author ‘Award’ Payments RS 39:1597 / Sole Source 6590 1(*) Books &/or Copyrighted Materials (see MJF 02-56, 5.A (7) or (8) 4250 / 4100 2Attachments II and III)7360-Library(*) Booth Rental & Exhibitor Fees (see note for MJF 02-56, 5.A (13) 3400 3process when a vendor form exists/requiresUniversity signature)(*) Equipment Repairs or Repair Parts from an MJF 02-56, 5.A (1) or (2) 3320 4Authorized Dealer (Non-Contract)(see Attachments II and III)33403341Governmental purchases from other local, state,and federal entities (Not applicable to taggableMJF 02-56, 5.A (6)Various 5property =/> $1000; see note)Parcel / Courier Services (e.g. UPS, Federal MJF 02-56, 5.A (18) 3600 / 3610 6Express, USPS, etc)Postage Meter Replenishment (limited to those MJF 02-56, 5.A (6) 3600 / 3610 7Departments with University approval to meterits outbound mail)Publication Fees & Reprint Purchases RS 39:1597 / Sole Source 3100 / 3110 8Refunds (to the public; non-employees) Non-Procurement Issue Various 9Registration Fees for Conferences, etc, foremployeesMJF 02-56, 5.A (11)102140 in-state2240 out-state6620 localReprints (limited per definition; see note) RS 39:1597 / Sole Source 3100 / 3110 8Royalty payments on books RS 39:1597 / Sole Source 6300 11Royalty payments on patents RS 39:1597 / Sole Source 6320 12Student Travel Stipends RS 39:1597 / Sole Source 5750 13Subscriptions (to publications, journals, MJF 02-56, 5.A (7) or (8) 3500directories, periodicals, etc)Substitute Teacher Reimbursements MJF 02-56, 5.A (6) 3960 14Training to enhance employee performance MJF 02-56, 5.A (11)2140 in-state 10(‘canned’ material only; not customized2240 out-state6620 localspecifically for LSU)Utilities (electricity, gas, water, & sewageprovided by local governments)MJF 02-56, 5.A (9) 3801 – 3807 15Videos (copyrighted) MJF 02-56, 5.A (7) or (8) 4250 / 4100 2Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

Attachment IINon-Competitive Purchases / Direct Charges~~~~Reference NotesThe following ‘Notes’ are offered for assistance to further define, explain &/ or clarify non-competitivepurchases, and to address any University policy or procedure relative thereto.All such purchases and invoices are subject to the approval of the Department Head (or equivalent) or his/herdelegated agent. No requisition or PO is required. Contact the Purchasing Office, if ever in doubt, prior tomaking the purchase.Note 1: Author ‘Award’ PaymentsNominal cash ‘award’ payments by LSU Press or “The Southern Review” to contributing authors for the rightto publish their works.Note 2: Books, Publications & Copyrighted MaterialsPurchases of books, publications and/or other copyrighted materials direct from the ‘obviously apparent’publisher or copyright holder, as evident from the Vendor’s name, quote and/or invoice (e.g. McGraw-Hill, WestPublishing, etc).Purchases from retail bookstores are not included under this definition, and are subject to the competitive bidprocess based on dollar thresholds.In non-obvious instances, the Department has two options:• You may secure evidence on behalf of the University that the Vendor is the publisher or copyright holder,and handle the purchase and approved invoice as a Direct Charge, or• You may submit a requisition to Purchasing for handling.A ‘Publisher/Copyright Holder Certification’ Form PUR523 is available on our website for your use in the event you wish to secure the requiredprocurement evidence from the Vendor. In such instances, you would submit the Vendor’s‘stamped/coded/approved’ invoice and signed certification form directly to Accounts Payable for payment. SeeAttachment III.Note 3: Booth Rental & Exhibitor FeesBooth Rental and/or Exhibitor fees for participation at externally hosted events, conferences, seminars, etc,designed to promote or enhance the University or a Department’s educational or economic missions, goals andobjectives.Note: If the Vendor submits a pre-printed Agreement or Contract form that requires an approval signature, it mustbe submitted to Purchasing for review and execution prior to making the purchase. Departments are notauthorized to sign any Vendor form. The executed Vendor form will be returned to the Department, who maythen make the purchase and attach the Vendor agreement to your Direct Charge submittals to Accounts Payable.Note 4: Equipment Repairs or Repair Parts from an Authorized DealerPurchases of equipment repairs and/or associated repair parts direct from an ‘obviously apparent’ OriginalEquipment Manufacturer (OEM) or Authorized Dealer thereof, as evident from the Vendor’s name, quote and/orinvoice (e.g. John Deere, Xerox, Gerry Lane Chevrolet, etc).Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

(Attachment II continued)In non-obvious instances, the Department has two options:• You may secure evidence on behalf of the University that the Vendor is an Authorized Dealer of theOEM, and handle the purchase and approved invoice as a Direct Charge, or• You may submit a requisition to Purchasing for handling.An ‘Authorized Dealer Certification’ Form PUR525 is available on our website for your use in the event you wish to secure the requiredprocurement evidence from the Vendor. In such instances, you would submit the Vendor’s‘stamped/coded/approved’ invoice and signed certification form directly to Accounts Payable for payment. SeeAttachment III.Note 5: Purchasing Transactions Between Governmental EntitiesPurchasing or selling transactions between the University and any state budget unit or other federal, parish, orlocal governmental entity may be made non-competitively regardless of price, except for taggable property.Purchases of taggable property from other governmental entities, i.e. unit price >/= $1000, must be submittedto Purchasing on a requisition for Property Management reporting purposes.“State budget units” include any and all State of Louisiana executive branch departments, divisions, offices, etc;and Louisiana public universities and community/technical colleges. (Note: Private-sector institutions such asTulane University, etc, are not included.).“Other governmental agencies” include any and all federal, parish, or local governmental entities, including theUnited States Postal Service and other state-owned universities.Note 6: Parcel / Courier ServicesInvoices from Parcel/Courier service providers/vendors; such as UPS, Federal Express, Airborne Express, USPS,etc.Note: Mailing Services, located at the Copy & Mail Center, is an official United Parcel Services (UPS) stationand thereby afforded reduced rates. Departments are to process their courier mail needs through Mailing Servicesto achieve these rates.Note 7: Postage Meter ReplenishmentPostage purchases from the US Postal Service, or its authorized agents. Limited to those Departments withUniversity approval to meter its outbound mail.Note: Pitney-Bowes is an authorized USPS agent, and offers postage meter replenishment by check or direct wirefor P-B postage/mailing equipment.Note 8: Publication Fees & Reprint Purchases‘Publication Fee’ is defined as a Vendor’s price or fee to publish a university-authored ‘article’ (e.g. dissertations,case studies, research findings, etc) in its professional/technical journal or publication.A ‘Reprint Purchase’ refers only to the procurement of additional copies of a specific, published article from theoriginal vendor or its authorized agent.Note: Not included is the purchase of additional “reprint” quantities of printed matter/jobs that are competitivelybid and awarded. Such contracts should include definitive pricing for reprint purchases, and the Departmentshould issue a PO Alteration as necessary.Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

(Attachment II continued)Note 9: Refunds to the Public / Non-EmployeesRefund payments to the general public for courses not taken, canceled events, overpayments, etc.Note 10: Registration Fees for Conferences/Seminars/etc and Training for EmployeesRegistration fees for employees to attend educational/training conferences, seminars, workshops, etc, and trainingfor the purpose of enhancing employee performance and/or departmental missions, programs, goals, etc.Conference registration fees, whether held locally or non-locally, require approval of the Employee’s supervisoror other department authority as internally delegated. No requisition or PO is required, regardless of amount.Only local conference registration fees may be processed as a Direct Charge. For payment by check, theDepartment should submit an AS116/University Prepared Invoice (in absence of a Vendor invoice) and attachproof of conference registration fee (e.g. the registration form). The Department may pay local and non-localconference registration fees with their LaCarte procurement card if $1000 are reimbursable on a travel voucher, or a travel advance may berequested. Contact the Office of Accounts Payable and Travel for additional information.Note: Does not include training programs/courses that are custom-designed by a Vendor to meet specific orunique University/Department use and criteria. Customized training is considered ‘consulting services’ andsubject to the provisions of RS 39:1481.Note 11: Royalty Payments on BooksRoyalty payments to authors or their designees for books published by LSU Press or other Universitydepartments.Note 12: Royalty Payments on PatentsRoyalty payments to inventors for patents owned by the University.Note 13: Student Travel StipendsStipend payments less than $50 by Departments to students or non-employees to encourage their participationand attendance at conferences, etc, for the purpose of defraying the attendee’s associated travel expenses.Note 14: Substitute Teacher ReimbursementsReimbursement to public/private schools (and/or their governing boards/systems) for the cost of a substituteteacher, when the absence of the school’s employed teacher is for the purpose of attending or participating in aconference, etc, at the specific request of the University or a Department.Note 15: Public Utilities and ServicesPublic utilities and services procured from the area’s sole provider as duly authorized and singularly licensed bythe Louisiana Public Service Commission (LPSC) or other applicable parish or local governmental entity tooperate and provide services in a given area.Currently, single provider licensures in EBR Parish exist for electricity, water and sewage service providers.Department ‘stamped/coded/approved’ vendor invoices may be processed as non-competitive Direct Chargesdirectly to Accounts Payable.Notes:1. Department needs for telephone, Internet, cable and cellular services require coordination through the Officeof Telecommunications, and are ‘billed’ as Internal Transactions.2. Department needs for commercial waste disposal require coordination through Facility Services, Office ofWetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292

Landscape Services.Attachment IIINon-Competitive Purchases / Direct Charges~~~~Publications & Copyrighted MaterialsEquipment Repairs & OEM Repair PartsLouisiana procurement law and executive order permits the non-competitive purchase of:• Publications and/or copyrighted materials, when purchased directly from the Publisher or CopyrightHolder; and• Equipment repairs, when purchased directly from the original equipment manufacturer (OEM) or anyOEM-Authorized Repair Dealer; and• Equipment repair parts for an immediate repair need, when purchased directly from the OEM or anyOEM-Authorized Parts Dealer. (Exception: Does not apply to the purchase of spare parts for stockingpurposes.)For audit purposes, such purchases will require supporting file documentation from the Vendor when it is notobviously apparent from the Vendor’s name, quote and/or invoice that the Vendor meets the legal requirementas stated above.Such documentation is defined in Attachment II and must be secured prior to making the purchase, and mustaccompany any Direct Charge invoice submitted to Accounts Payable.For these purchases, a Department may elect to either:• assume the responsibility for securing the required documentation and processing such purchases as DirectCharges, or• to submit a requisition to Purchasing for handling, whereby we will secure the necessary documentationand issue a formal University purchase order.Standard ‘Vendor Certification’ forms are available for these purchases, and are accessible on our website in ‘pdf’format for Department use. Simply address the form with the applicable information and e-mail or fax it to theVendor. If compliant, make the purchase, and attach the Vendor’s Certification to your submittals to AccountsPayable.Wetland Resources Building - Baton Rouge - Louisiana - 70803-3001 - 225/578-2176 - FAX 225/578-2292