Chapter 3344-65 Uniform Purchasing Policies

3344-65-01 General scope and procurement authority.

(A) It is essential to follow uniform purchasing policies throughout the university in order to maintain standards of efficient business practice and good relationships within the university as well as with outside vendors and suppliers. Furthermore, a public educational institution has a responsibility to the taxpaying public, as well as to its students, faculty, and staff It shall conduct its business fairly, in accordance with state regulations and university policy.

(B) Purchasing services is responsible for approving all quotations, selecting suppliers, and placing all purchase orders for any division, department, or office of the university. Purchasing services has delegated authority to the law library and main library to directly purchase books and periodicals only (up to the current bid threshold). Failure to follow university purchasing policies and procedures may result in revocation of this delegated authority. MagnusMart will also verify availability of funds, via its electronic budget checking function, for any purchase prior to issuance of a purchase order. To avoid delays, please ensure that sufficient funds are available for the purchase or another arrangement has been made with the controller's office, before submitting the requisitions.

(C) MagnusMart is the university's primary purchasing system. Purchasing activity outside of MagnusMart must be approved by the senior vice president for business affairs and finance.

Replaces: 3344-65-01

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 8/7/89, 8/4/05, 11/12/13

3344-65-02 Definitions for procurement terms.

(A) "Bid" is defined as a prospective vendor's sealed submission to the university, including specifications of the product(s) (or construction project) to be delivered, and the cost for which the prospective vendor would agree to deliver it.

(B) "Proposal" is a prospective vendor's description of the professional services it would provide in response to the university's request (request for proposal), including supporting information such as the prospective vendor's qualifications, previous experience, the ways in which the proposed solution would satisfy the university's needs, and (for services other than professional design for construction) the proposed fee structure.

(C) "Competitive bidding" is the process of obtaining sealed bids for contract award, either through adherence to the process defined in Chapter 153. of the Revised Code (for public improvements), or through the competitive bidding process set forth in rule 3344-65-16 of the Administrative Code.

(D) "Competitive selection" is the process of selecting a service provider through advertising and receipt of proposals. This is done either through adherence to the process defined in Chapter 153. of the Revised Code (for public improvements), or through the competitive selection process set forth in rule 3344-65-16 of the Administrative Code (invitation to bid)..

(E) "Request for quotation" is a formal request to vendors for specific items or a small project. The format typically covers defined item(s) to be purchased, number of items and per unit cost. A request for quotation is similar to bid terms, but applicable to purchases below bid threshold.

(F) "Request for qualifications (RFQ)" is a formal request to vendors to submit their qualifications for a particular service or project.

(G) "Minority business enterprise" (MBE) is a for-profit company that has been in business for longer than one year and is at least fifty-one per cent owned and controlled by a minority person(s) as defined by the state of Ohio, certified by the equal opportunity coordinator of the state of Ohio.

(H) "MagnusMart" is the electronic purchasing system used by the university.

(I) "Purchaser" means an employee authorized by their department to make purchases on the department's behalf.

(J) "Bid threshold" is the value of a purchase above which a competitive bidding or competitive selection process is required pursuant to rule 3344-65-16 of the Administrative Code. The bid threshold for goods and supplies is twenty-four thousand nine-hundred ninety-nine dollars; the bid threshold for services is forty-nine thousand, nine hundred ninety-nine dollars.

(K) "Responsive vendor" is a vendor whose solicited bid or proposal is in substantial conformance with the conditions, requirements and specifications detailed in the invitation to bid or request for proposal.

(L) "Responsible vendor" is a vendor qualified on the basis that it has adequate resources to perform a contract; is able to comply with associated legal or regulatory requirements; is able to deliver according to the contract schedule; has a history of satisfactory performance; has a good reputation regarding integrity; has or is able to obtain necessary resources to fulfill the contract; and is otherwise eligible and qualified to be awarded the contract.

(M) "Purchasing agent" is an employee in purchasing services that assists in the selection and purchase of goods and services by gathering information about products, prices and vendors. Also, distributes invitations to bid and requests for proposals and receives responses from vendors in the form of bids and proposals.

(N) "Vendor" is a person doing business with the university or seeking to do business with the university.

Replaces: 3344-65-17

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-03 Buy Ohio.

(A) In accordance with sections 125.09 and 125.11 of the Revised Code, the university shall give preference to Ohio vendors, vendors from a "border state", and vendors that qualify as having a significant Ohio economic presence.

(B) A "border state" means any state that is contiguous to Ohio and that does not impose a restriction greater than Ohio imposes pursuant to sections 125.09 and 125.11 of the Revised Code on persons located in Ohio selling product or services to agencies of that state. The Ohio department of administrative services current recognizes the following "border states": Michigan, Kentucky, Pennsylvania, Indiana, and New York.

(C) "Significant Ohio economic presence" means business organizations that:

1) pay required taxes to the state of Ohio;

2) are registered and licensed to do business in the state of Ohio with the office of secretary of state; and

3) have ten or more employees based in Ohio, or seventy-five per cent or more of their employees based in Ohio.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344

3344-65-04 Tax exempt status.

Cleveland state university is exempt from paying Ohio sales tax under section 5739.02 of the Revised Code (there is no specific exemption number) and the purchaser should inform the supplier of that fact. In the event the vendor requires a tax exemption certificate, it is obtainable from purchasing services.

Replaces: 3344-65-03

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-05 Purchases below bid threshold.

(A) Small purchases

Small purchases valued at twenty-five hundred dollars or below are exempt from the competitive process.

(B) Goods below bid threshold

For goods to be purchased between twenty-five hundred one dollars and and twenty-four thousand nine hundred ninety-nine dollars, a minimum of three quotes, one from an MBE, shall be acquired, when possible. If not possible, a brief written explanation shall accompany the requisition. One or more quote(s) are provided by the department and the others by purchasing, with the lowest, responsive vendor becoming the vendor of choice. The process of selecting the lowest quote is subject to a procedural override at the vice president level, if determined to be in the best interests of the university.

(C) Services below bid threshold

For purchase of services between twenty-five hundred one dollars and forty-nine thousand nine hundred ninety-nine dollars, the department should supply a minimum of three quotes, one from an MBE, where possible, for the identical scope of work, reviewable by purchasing. If not possible, a brief written explanation shall accompany the requisition. The most advantageous quote becoming the vendor of choice.

(D) Purchases above the bid threshold require competitive bidding or competitive selection in accordance with rule 3344-65-16 of the Administrative Code.

Replaces: 3344-65-04

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-06 Cooperative purchases and state contracts.

(A) Purchasing services has the authority to join cooperative purchasing organizations, defined as an arrangement to aggregate purchases to get lower prices from suppliers, provided, that such cooperative purchasing organizations use contracts that conform to the legal requirements for contracting with the state of Ohio. A list of contracts available to the university through cooperative purchasing groups is available from purchasing services.

(B) Contracts established by the state of Ohio, office of purchasing, are also available to the university. A list of state of Ohio contracts is available on the state of Ohio website at http://procure.ohio.gov/proc/currentContracts.asp.

(C) Prior to issuing an invitation to bid or a request for proposal, purchasers must review whether a cooperative purchasing contract or state contract exists for the goods or services to be purchased. Purchasers must use such available contracts when it is advantageous to the university to do so.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344

3344-65-07 Mandated vendors.

(A) Purchasing services may enter into price agreements with vendors for commonly-purchased goods and services.

(B) In situations where a price agreement exists and the controller has determined that significant savings may be realized by the use of such price agreement the controller may require that all purchases of certain goods and services be made from certain mandated vendors.

(C) Exceptions to the requirement to purchase from mandated vendors pursuant to this rule may be approved by purchasing services when it is demonstrated that another vendor provides goods and services that are more advantageous to the university than those offered by the mandated vendor.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344

3344-65-08 Equipment purchases.

(A) All requests for purchases of equipment, defined as non-expendable, tangible, personal property having a useful life of more than one year and an acquisition cost of five thousand dollars or more shall be initiated by a purchase requisition. The university is required to maintain an inventory of all equipment and the utilization of the purchase requisition ensures that the property control department is automatically notified of such acquisitions.

(B) Equipment improvements that increase non-expendable value to five thousand dollars or more shall be added to that valuation when identifiable. Increases to valuation can include costs such as shipping/delivery/installation charges (example: a server that has memory added.) These are considered assets that shall be maintained by property control, as stated in paragraph (A) of this rule.

Replaces: 3344-65-05

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13, 1/23/14

3344-65-09 Additional approval for certain purchases.

(A) Certain purchases require additional approval. Guidance describing the additional approvals required is set forth in the following table.

Purchase

Guidance

Furniture

http://www.csuohio.edu/offices/architect/furniture/

Outsource services / external hosting

http://www.csuohio.edu/offices/ist/technologypolicies/outsourcing-hosting services_security_checklist.pdf

Signage

https://www.csuohio.edu/architect/signage-standards

Microcomputers

https://www.csuohio.edu/hardwaresoftware/ist-hardware-procurement-procedure

Environmental, health & safety items

http://www.csuohio.edu/ehs/ehs

(B) Electronic and information technology purchases

(1) Cleveland state university has a responsibility to make our programs and services accessible to persons with disabilities in accordance with the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973 and related regulations and state law.

(2) Software and hardware considered electronic and information technology (EIT) must be evaluated for access to persons with disabilities before purchase of such technology may commence.

(3) The information services and technology department shall issue purchasing guidelines for the acquisition of EIT. All parties purchasing EIT must comply with those purchasing guidelines.

Replaces:

3344-65-06, 3344-65-07, 3344-65-08, 3344-65-09

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-10 Personal purchases.

The university shall not purchase any supplies or equipment for the personal use of university employees. The attractiveness of the university's buying power may motivate individuals to take advantage of the requisition system for personal purchases. Even though the individual involved may fully reimburse their department budget this procedure is in violation of state law and university policy. Refer to section 4113.17 of the Revised Code. Those found in violation of this policy may be subject to disciplinary action.

Replaces: 3344-65-10

Replaces: 3344-65-10

Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05.
Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05.

3344-65-11 Contracts.

(A) No university employee outside of purchasing services has the authority to enter into purchase contracts, or in any way to obligate Cleveland state university for procurement indebtedness unless specifically authorized to do so by the board of trustees, either by general policy or specific resolution. Any such actions shall be considered an unauthorized purchase and the individual could be personally liable for the purchase in accordance with section 3.12 of the Revised Code.

(B) Any and all contracts shall be reviewed and approved as to legal form by the office of general counsel. Contracts executed without review may be deemed outside the employee`s authority and result in personal liability for the contract.

(C) For the purposes of this section contract is defined to include but not be limited to contracts, agreements, vendor terms and conditions and memorandums of understanding,

(D) Execution of contracts for purchases are governed by rule 3344-66-01 of the Administrative Code.

Effective: 1/28/2017
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13, 10/10/2016

3344-65-12 Gifts and gratuities.

Both state law and university policy prohibit the receipt of gifts or gratuities from vendors or others who do business with the university. State law forbids a public servant to "solicit or accept ... anything of value that is of such a character as to manifest a substantial and improper influence upon the public official or employee with respect to that person's duties," division (E) of section 102.03 of the Revised Code.

Replaces: 3344-65-13

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-13 Gifts and gratuities.

Both state law and university policy prohibit the receipt of gifts or gratuities from vendors or others who do business with the university. State law forbids a public servant to "solicit or accept ...anything of value that is of such a character as to manifest a substantial and improper influence upon the public official or employee with respect to that person`s duties," (division (E) of section 102.03 of the Revised Code).

Replaces: 3344-65-13

Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05.

3344-65-14 Major purchases.

(A) The early involvement of purchasing services in the initial stages of a contemplated major purchase, defined as having an estimated value above the bid threshold, is required. When a major purchase is under consideration, the purchaser shall provide purchasing services the basic requirements and potential vendors and sources. Purchasing services staff shall research state contracts or cooperative purchasing organization agreements vendors and suggest the use of any such available contracts. The purchasing agent shall work with the purchaser to further define needs and develop an evaluation process. With input from purchasing services, the purchaser shall determine whether the acquisition will be made utilizing an existing contract or whether a formal solicitation must be initiated.

(B) Major purchases related to construction are governed by rules 3344-65-25, 3344-65-26 and 3344-65-27 of the Administrative Code.

Replaces: 3344-65-15

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-15 Conflict of interest and ethics.

(A) All employees of Cleveland state university, as public servants, shall observe the highest ethical standard in discharging their responsibilities. Employees shall avoid any activity or interest that might reflect unfavorably on an individual's, or the university's, stewardship of public resources, and shall observe those provisions of the Ohio ethics laws that apply to them including, but not limited to, its conflict of interest restrictions.

(B) Any purchase transaction of the university is a public contract. Rule 3344-2-04 of the Administrative Code constitutes the university's conflict of interest statement. That statement sets forth ethical standards for purchasing, including the circumstances in which an employee or other university official may sell goods or services to the university.

(C) The university also subscribes to the following national association of educational buyers code of ethics:

(1) To decline personal gifts or gratuities.

(2) To give first consideration to the objectives and policies of our institution.

(3) To cooperate with trade and industrial associations, governmental and private agencies engaged in the promotion and development of sound business methods.

(4) To demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the products.

(5) To grant all competitive bidders equal consideration; to regard each transaction on its own merits; to foster and promote fair, ethical, and legal trade practices.

(6) To use only by consent original ideas and designs devised by one or more vendor for competitive purchasing purposes, or to pay them for services as a consultant.

(7) To accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions.

Replaces: 3344-65-16

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05, 11/12/13

3344-65-16 Competitive bidding and competitive selection.

(A) This rule applies to all purchases over the bid threshold except:

(1) The procurement of goods and services related to construction and design are governed by rules 3344-65-25, 3344-65-26 and 3344-65-27 of the Administrative Code.

(2) Sole source purchases governed by rule 3344-65-23 of the Administrative code; and

(3) Emergency procurement governed by rule "3344-65-24".

(B) Prior to issuing an invitation to bid or request for proposal, purchasers are required to consult with purchasing services to discuss the best method of handling specific needs. The purchasing agent is familiar with the various contracts, price practices and discount levels of various vendors. Failure to contact purchasing services will not eliminate the requirement for the formal solicitation and may result in unnecessary delays.

(C) Purchases that exceed the bid threshold, or are expected to do so during the year, require a formal solicitation process. Purchasing services may require a formal solicitation on any requisition when it considers it advantageous to the university. The breaking up of a purchase into individual requisitions to avoid a formal solicitation (pyramiding) is prohibited.

(D) All invitations to bid and requests for proposals shall be publicly displayed on a bulletin board located directly outside of the purchasing services office and on the purchasing services website. Invitation to bids and request for proposals shall be formally advertised at the discretion of purchasing services and/or departments concerned. Invitations to bid and requests for proposals may also be sent directly to prospective vendors.

(E) Invitations to bid and requests for proposals require a minimum of at least fifteen days from the date the bid or proposal is solicited until the date of the opening. Re-bids, if necessary, require a shorter time period. Invitations to bid and requests for proposals will be solicited from, if possible, at least three vendors.

(F) Bids and proposals shall be in writing and received by the specified date and time in the specified location set forth in the invitation to bid or request for proposal. Late responses will not be accepted.

(G) Unless the university elects to reject all bids or cancel the invitation to bid, a contract will be awarded to the lowest responsive and responsible vendor. Purchases pursuant to an RFP will be awarded to the responsive and responsible vendor whose proposal, in the sole discretion of the university, represents the best value and is most advantageous to the university.

(H) If purchases are made through a cooperative purchase agreement of which the university is a part or a state contract, the formal solicitation requirement is considered satisfied.

Replaces: 3344-65-18

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 5/1/89, 3/1/94, 8/4/05, 11/12/13

3344-65-17 Definitions for procurement terms.

(A) "Bid" is defined as a prospective vendor's sealed submission to the public authority, including specifications of the product(s) (or construction project) to be delivered, and the cost for which the prospective vendor would agree to deliver it.

(B) "Proposal" is a prospective vendor's description of the services it would provide in response to the public authority's request, including supporting information such as the prospective vendor's qualifications, previous experience, the ways in which the proposed solution would satisfy the public authority's needs, and (for services other than professional design for construction) the proposed fee structure.

(C) Competitive bidding" is the process of obtaining sealed bids for contract award, either through adherence to the process defined in Chapter 153. of the Revised Code, or through the university's department of purchasing bid process (invitation to bid).

(D) Competitive selection" is the process of selecting a service provider through advertising and receipt of proposals. This is, normally done as part of the Chapter 153. of the Revised Code process for contracting with a design firm.

(E) "Request for quotation" (RFQ) is a formal request to vendors for specific items or a small project. Format typically covers defined item(s) to be purchased, number of items and per unit cost. Similar to bid terms, but applicable to purchases below bid threshold.

Replaces: 3344-65-17

Replaces: 3344-65-17

Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05.
Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15
Prior Effective Dates: 5/1/86, 8/7/89, 3/1/94, 8/4/05.

3344-65-18 Minority business enterprise (MBE) set-aside.

(A) Under section 125.081 of the Revised Code and accompanying administrative regulations, fifteen per cent of the annual total aggregate purchases of goods and services are to be set aside for bidding only to MBEs. The cooperation of all departments is required and expected in support of the university's supplier diversity initiative, when possible. A list of MBE vendors is available on purchasing services web page or by contacting purchasing services. A list of MBE certified contractors and vendors is available at:http://eodreporting.oit.ohio.gov/searcheodreporting.aspx

(B) The senior vice president for business affairs and finance or designee (SVPBAF) may override the lowest cost quote or bid in favor of selecting the MBE vendor if the SVPBAF determines that the university is falling short of its fifteen percent MBE spend The procedural override is allowed if selecting the MBE assists in the university meeting the state of Ohio set-aside requirement.

Replaces: 3344-65-20

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13

3344-65-19 Printing and printed materials.

All printed materials shall comply with the current university brand standard. This includes business stationery (letterhead), envelopes, business cards, brochures, pamphlets, bulletins, posters, programs, self-mailers and other direct mail pieces, invitations, news releases, promotional material, advertisements, etc. The university marketing department assists members of the university community by reviewing layouts and designs, and suggesting how the layout may need to be changed to reflect the desired brand standard. This creates a favorable internal and external image for Cleveland state university. Layouts can be handdelivered, e-mailed, or sent through campus mail to the university marketing department for review. Design services are available free of charge. In addition to normal procurement policy and regulation, contracts for printing are restricted by section 3345.10 of the Revised Code to contractors having manufacturing facilities in the state of Ohio. Please also consult the mail services users guide, available from the mail department, for guidelines on any printed material, which may need to comply with United States postal standards.

Replaces: 3344-65-19

Replaces: 3344-65-19

Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 7/12/11, 11/11/13.
Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15
Prior Effective Dates: 7/12/11, 11/11/13.

3344-65-20 Minority business enterprise (MBE) set-aside.

Under current state of Ohio law, section 125.081 of the Revised Code and accompanying administrative regulations, fifteen per cent of the annual total aggregate purchases of goods and services are to be set aside for bidding only to minority business enterprises (MBE) certified by the equal opportunity coordinator of the state of Ohio. The cooperation of all departments is required and expected in support of this affirmative action effort. A list of MBE vendors is available on purchasing services web page or by contacting the purchasing department. A list of MBE certified contractors and vendors is available at: http://eodreporting.oit.ohio.gov/searcheodreporting.aspx

Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15

3344-65-21 Approval of purchase orders and change orders.

(A) Purchase orders are evaluated and approved by project, by vendor. Purchases over the bid threshold require a competitive bidding or selection process pursuant to rule 3344-65-16 of the Administrative Code.

(B) Purchase orders, including modifications, require the following approvals:

$50,000 or less

associate director of purchasing operations

$50,001- $100,000

controller

$100,001 - $349,999

vice president for business affairs and finance

$350,000 - $499,999

university president

$500,000 or more

board of trustees

(C) Approval authority is based on the total purchase order value by project, including modifications.

(D) Execution of contracts for purchases are governed by rule 3344-66-01 of the Administrative Code.

Effective: 1/28/2017
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13, 10/10/2016

3344-65-22 Changes to purchase order.

If a department needs to increase an existing purchase order, the request for change order form shall be completed and routed through MagnusMart to purchasing services. Purchasing services shall provide the department a revised purchase order noting the change. If a competitive bid or selection process under rule 3344-65-16 of the administrative code was not used all requested increases may not result in a total purchase order value exceeding the bid thresholds.

Replaces: 3344-65-24

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13

3344-65-23 Approval of purchase orders and change orders.

Small order forms for purchases of- twenty-five hunded dollaer or less require the approval of the appropriate department head. Purchase orders are evaluated and approved by project by vendor. Purchasing services retains authority to require competitive selection as described in rule 3344-65-27 of -this policy the administrative code under "Bidding Requirements." Purchase orders, including modifications, require the following approvals:

(A) $50, 000.00 or less - director of purchasing services

(B) $50, 001.00 - $100, 000.00 - controller

(C) $100, 001.00 - $349, 999.00 - vice president for business affairs and finance

(D) $350, 000.00 - $499, 999.00 - university president

(E) $500, 000.00 or more - board of trustees.

(F) Signature authority is based on the total purchase order value by project, including modifications.

Replaces: 3344-65-23

Effective: 1/23/2014
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13
Effective: 11/12/2013
Promulgated Under: 111.15
Statutory Authority: 3344
Rule Amplifies: 111.15

3344-65-24 Purchasing in emergency situations.

(A) Emergency procurement is authorized when the goods or services to be purchased are required to correct or prevent an emergency health, environmental or safety hazard and/or enable the emergency repair or replacement of existing equipment essential for daily operations.

(B) In the event a purchase is needed in an emergency situation, purchasing services will authorize the purchase with approval of the following, based on area affected:

(1) Director of facilities management

(2) Director of public safety

(3) Director of environmental, health safety

(4) Associate director of purchasing services

(C) Purchases of goods or services of fifty thousand dollars or more require the approval of the associate vice president for facilities and operations or designee, or the controller in the absence of the associate vice president or designee.

Replaces: 3344-65-25

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13

3344-65-25 Procurement policy for facility planning, design and construction services.

All university procurement of facility planning, design and construction services shall originate with the office of the university architect (OUA).

(A) Definitions:

(1) "Public improvement" means any construction, reconstruction, improvement, enlargement, alteration, demolition, or repair of a building, highway and any other structure or work of any nature by a public authority, (section 1311.25 of the Revised Code). All projects requiring the services of a professional engineer and/or licensed architect, or requiring a building permit constitute a public improvement. Also included are painting, carpeting, signage and other changes to the building interior or exterior.

(2) "Estimated project cost" - in developing a project budget, be aware that budget costs are categorized into several cost groupings. The most basic of these shall include:

(a) "Soft" costs, which include items directly related to construction (e.g., all architect and engineering fees, permits, quality assurance testing, etc.).

(b) "Firm" costs, which include related expenses, but not necessarily actual construction (e.g., land, independent studies, furnishings, equipment, etc.).

(c) "Hard" costs, which include bricks and mortar (construction contracts, construction contingency, etc.).

(B) Owner reserves, which include funds for the unexpected, shall also include a "bid reserve contingency" of not less than ten per cent of the construction budget, unless approved by the university architect.

(C) Chapter 153 of the Revised Code is state law presiding over contracting for both design and construction services for public improvements. The statutory code may be found at the following website: http://codes.ohio.gov/orc/153. The application of this chapter is detailed in the state architect's office manual http://das.ohio.gov/divisions/generalservices/statearchitectsoffice/saomManual.aspx).

Replaces: 3344-65-26

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13

3344-65-26 Bidding requirements for public improvements.

(A) The university's bid process for public improvements will follow the state of Ohio's process as described in the Ohio facilities construction commission manual. The OUA reserves the right to use Chapter 153. of the Revised Code, competitive bidding procedures, if there is reasonable concern as to whether the aggregate cost could exceed the threshold.

(B) Estimated project cost below fifty thousand dollars: The OUA project manager shall:

(1) Obtain quotes from three contractors, when possible.

(2) Prepare a purchase requisition in MagnusMart for the contractor with the lowest cost.

(3) Submit request along with the two unused quotes or non-responses.

(C) Estimated project cost over fifty thousand dollars, but below two hundred thousand dollars: the OUA project manager shall:

(1) Prepare a work scope defined in a request for quotation.

(2) Issue the request for quotation to the selected contractors and publically post the request for quotation.

(3) Review responses to request for quotations and determine apparent lowest responsive and responsible party.

(4) Create a purchase requisition in MagnusMart.

(D) Estimated project cost over two hundred thousand dollars shall be competitively bid per Chapter 153. of the Revised Code, and, as such, a public bid advertisement is required.

(E) See the Ohio facilities construction commission manual for details on process: http://ofcc.ohio.gov/.

Replaces: 3344-65-27

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344
Prior Effective Dates: 11/12/13

3344-65-27 Procurement of design services.

(A) Procurement of design services shall occur in one of two ways. It shall occur by selecting a design firm based on three alternative proposals (one of which shall be an MBE when available), or it shall occur by selecting a firm from the OUA's five-year pre-qualification pool. If selected from the pre-qualification pool, only one proposal is needed.

(B) OUA shall oversee the creation of a five-year pre-qualification pool of design firms using the state of Ohio's process as described in the Ohio facilities construction commission manual. OUA will create two separate pools, one for architecture firms and another for engineering firms. No one firm can contract for more than fifty thousand dollars of work with CSU in any one fiscal year.

(C) For design services over fifty thousand dollars, OUA will follow Chapter 153. of the Revised Code.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344

3344-65-28 Purchasing card.

(A) Purchasing services and users authorized by the controller have the authority to use a university purchasing card or power card to pay vendors.

(B) The controller shall develop rules related to purchasing cards that govern which employees are authorized to use purchasing cards and how credit limits are established.

(C) University purchasing cards may not be used to make cash withdrawals, nor may they be used for personal purchases.

(D) Violations of the rules related to purchasing cards may lead to discipline up to and including termination of employment.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344

3344-65-29 Debarment.

(A) Expectations of vendors. All vendors are expected to follow the university's purchasing policies, honor their bids and proposals, enter into any agreements in good faith, and perform their duties and obligations in accordance with any contract term.

(B) Vendor non-compliance. If a vendor fails to comply with these expectations, the university will take necessary action to resolve the problem and protect the interests of the university. In addition to any available legal remedies, the university may debar a vendor from consideration for university purchases in accordance with this rule.

(C) Causes for debarment. The senior vice president for business affairs and finance or designee (SVPBAF) may debar a vendor upon a finding based upon reasonable belief that the vendor has done any of the following:

(1) Abused the selection process by repeatedly withdrawing bids or proposals before purchase orders or contracts are issued or failing to accept orders based upon firm bids or proposals;

(2) Failed to substantially perform a contract according to its terms, conditions and specifications within specified time limits;

(3) Failed to cooperate in monitoring contract performance by refusing to provide information or documents required in a contract, or failed to respond to complaints;

(4) Attempted to influence a university employee or official to breach ethical conduct standards;

(5) Colluded to restrain competition by any means;

(6) Been convicted of a criminal offense related to the application for or performance of any public or private contract; or

(7) Acted in such a manner as to be debarred from participating in a contract with any governmental agency.

(D) Procedures for debarment.

(1) If purchasing services becomes aware that a vendor may have engaged in conduct that justifies debarment it will gather appropriate information and prepare a report to the SVPBAF including its findings and recommendations.

(2) After reviewing the report from purchasing services, if the SVPBAF reasonably believes that grounds for debarment exist, the SVPBAF will provide the vendor a notice of debarment. The notice shall be sent in accordance with the notice provision of any relevant contract, or by e-mail or U.S. mail. The notice will include at least the following:

(a) The reason for the proposed debarment;

(b) The proposed length of the debarment, which shall be based on the severity of the cause for debarment; and

(c) A statement that the vendor may submit a written response to the notice within ten business days of the date of the notice.

(3) If the vendor does not respond to the notice within ten business days of the date of the notice, the debarment shall become effective on the tenth business day from the date of the notice. The SVPBAF shall send a final written determination of debarment to the vendor and to purchasing services.

(4) If the vendor responds to the notice of debarment within ten business days of the date of the notice, the SVPBAF will review the response and determine whether grounds still exist for the debarment. If the SVPBAF determines that grounds still exist for debarment, the SVPBAF will send a final written determination of debarment to the vendor and purchasing services. If the SVPBAF determines that grounds do not exist for debarment, the SVPBAF shall so notify the vendor and to purchasing services.

(E) Effect of debarment. During the period covered by the debarment any vendor, and any specifically named affiliate, officer, employee, or other individual or entity associated with the vendor who has been debarred shall be ineligible to do any of the following:

(1) Be included on any vendor lists;

(2) Receive and submit bids or proposals issued by the university for the procurement of supplies and services;

(3) Be awarded a contract for supplies or services; and

(4) Participate in any business activities with the university.

Effective: 10/10/2016
Promulgated Under: 111.15
Statutory Authority: 111.15
Rule Amplifies: 3344