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
universitys 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 the 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 departments 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 and infrastructure 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 departments 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
