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| | All Procurement functions of the GovC are established to support GovC as a Jesuit, Catholic institution, helping further promote Loyola’s mission and current strategic plan https://luc.edu/strategicplanning/plan2020/) that requires the campus community to seek actionable ways to live out the call to build a more just, humane, and sustainable world. Loyola maintains a deep commitment to human dignity in the workplace with a mission that creates the cornerstone of our institutional identity and community. As a result, Purchasing looks to engage with partners that embody these strategic elements and traditions in maintaining a commitment to social justice and the common good. | | All Procurement functions of the GovC are established to support GovC as a Jesuit, Catholic institution, helping further promote Loyola’s mission and current strategic plan https://luc.edu/strategicplanning/plan2020/) that requires the campus community to seek actionable ways to live out the call to build a more just, humane, and sustainable world. Loyola maintains a deep commitment to human dignity in the workplace with a mission that creates the cornerstone of our institutional identity and community. As a result, Purchasing looks to engage with partners that embody these strategic elements and traditions in maintaining a commitment to social justice and the common good. |
| | Because of the widely varied nature of the University’s activities, all of the commitment activity cannot be performed efficiently by either a completely centralized procurement office or by a completely decentralized operation. | | Because of the widely varied nature of the University’s activities, all of the commitment activity cannot be performed efficiently by either a completely centralized procurement office or by a completely decentralized operation. |
| − | At Loyola University Chicago, a large percentage of buying decisions are made by faculty and staff in the various schools and departments with the assistance and guidance of the Purchasing Department. The University expects all employees to make sound purchasing and contracting decisions that will ensure the continued and efficient operation of the University.
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| − | When an acquisition is initiated, University controlled funds are being committed and the buyer is assuring the University that:
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| − | A legitimate University need for the purchase has been identified;
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| − | Pre-Qualified Suppliers have been selected, whenever prudent and possible;
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| − | Sponsored program procurement requirements have been met, when required;
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| − | The University's conflict of interest policy, buyers' code of ethics, gift guidelines for employees, and the anti-kickback clause have been complied with;
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| − | Purchases have been competitively bid or negotiated, when prudent or when required;
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| − | Suppliers are dealt with in a professional manner, consistent with good business practices;
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| − | Purchases will be inspected upon receipt;
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| − | Using small, disadvantaged, women-owned, veteran-owned, service disabled veteran-owned and HUBZone business concerns and environmentally friendly products have been considered;
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| − | Documentation requirements to support the purchase have been met; and all purchases, once input into the University’s automated financial system, have been reconciled; and acquisitions are fully in compliance with all rules, regulations, policies and procedures, as applicable.
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| − | There are four primary means of purchasing goods and services at the University: Lawson purchase orders, the University Procurement Card (ProCard), Check Requisitions, and web-based ordering. Purchase orders should be utilized when the ProCard use is restricted (non-acceptance by a supplier, or restricted by University or government directive), or when the vendor has imposed their terms and conditions of sale, or standard university terms and conditions are modified through negotiations. The use of personal funds or personal credit cards for the procurement of travel or business related expenses are specifically governed by Loyola’s policy for Travel and Business Related Expenses. Other purchasing means may be required for new campus operations on an interim basis, as approved by the Senior VP for Finance and CFO or his/her designee.
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| − | KEY POINTS: For detailed descriptions of the following points, refer to the specific policies and procedures contained in this manual.
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| − | Purchasers are strongly encouraged to use Pre-Qualified Suppliers whenever possible to acquire goods or services.
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| − | The University is committed to considering the use of small, disadvantaged, woman-owned, veteran-owned, service disabled veteran-owned and HUBZone businesses and environmentally sensitive products.
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| − | University employees who make purchases are required to complete all related paperwork and/or electronic processing (Lawson, Web-ordering, Purchasing Checklists with supporting documentation, receipt submittal, source selection justification, price analyses, etc.) in a timely and expeditious manner per the Buyer Actions Matrix. The Purchasing Department can assist with this process.
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| − | Every individual goods transaction of $5,000 or greater requires the establishment of competition (or a written source justification) and the submission of a Purchasing Checklist/Bid Summary Form when a non Pre-Qualified Supplier is used.
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| − | Employees making purchases for the University are prohibited from accepting or receiving gifts, incentives and/or kickbacks from anyone supplying goods and/or services to the University outside of the University Purchasing Policy.
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| − | Personal purchases with a purchase order, University ProCard and/or University funds are prohibited.
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| − | Personal funds or personal credit cards should not be used for the purchase of University goods and services except for those transactions as defined in this manual, or the University Travel and Business Expense Policy. In other instances, if a purchase is made with personal funds, and sales tax is paid, the University will not reimburse the tax portion of the purchase without appropriate documentation of extenuating circumstances. The Senior Vice President for Finance and CFO, or designee, will make the determination if an extenuating circumstance warrants an exception.
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| − | A NOTE ON UNIFORM GUIDANCE:
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| − | On December 26, 2014, the United States Office of Management and Budget (OMB) through the Code of Federal Regulation issued new Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in the Federal Register. This "Uniform Guidance" replaces the administrative, accounting, audit rules and principles previously required in the OMB Circulars, including A-21, A-110, and A-133.
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| − | Throughout the process of implementing the new requirements mandated by the UG, University purchasing policies and procedures were evaluated to identify all necessary changes resulting from the newly established UG. In accordance with Section 200.110 of the UG, procurement standards in Section 200.317 - 200.326, non-Federal entities were allowed to comply with procurement standards in previous OMB guidance for one additional fiscal years after the relevant parts went into effect. Since the implementation of the UG in December 2014, additional one year grace periods were allowed for Fiscal Years 2016 (fiscal year ending June 30, 2016), 2017 (fiscal year ending June 30, 2017) and 2018 (fiscal year ending June 30, 2018). In accordance with the grace period provisions, Loyola elected to postpone implementation of all UG requirements until all elements of the UG were finalized.
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| − | Loyola has elected to implement all aspects of the Federal Uniform Guidance effective July 1, 2018.
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| − | It is important to note that the following are general standards for procurement over which Uniform Guidance entails. This list is a representation of Uniform Guidance concepts and does not represent an all-inclusive list of compliance requirements. For clarification relating to your specific procurement needs, please contact your purchasing agent for assistance.
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| − | Every non-federal entity receiving federal awards must have documented procurement procedures that reflect federal law, Uniform Guidance standards, and any state regulations.
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| − | Entities should focus on the most economical solution during the procurement process, and must avoid using federal funds for the acquisition of unnecessary items. Organizations are encouraged to consider the use of shared services and intergovernmental agreements to foster greater economy and efficiency.
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| − | Written conflict-of-interest policies are required. No employee or agent of the entity may participate in the selection, award, or administration of a contract funded by federal grant dollars if he or she has an actual or apparent conflict of interest.
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| − | The organization must document the procurement steps and activities required to be completed. This includes the basis for the type of procurement, contract type, and the basis for the contractor selection and price. Please refer to the University Procurement Action Matrix.
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| − | Ultimately, the recipient of federal awards must maintain an appropriate level of oversight to ensure that contractors perform in accordance with the terms of their contract.
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| − | The above illustrations demonstrate a need for high degree of due diligence and documentation relating to all procurement events. Procurement Services is willing and able to provide guidance and assistance to all University Departments as they navigate all necessary requirements as dictated by Uniform Guidance.
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| − | Additionally, Uniform Guidance requires full and open competition. Each department is required to consider all procurement options available while planning the various purchasing needs of any federally funded project. Procurement Services can help facilitate any procurement event necessary (basic quotes, established competition, controlled bid processes). It is important to understand that contractors or vendors who assist in drafting specifications for controlled bid processes or “RFx” (i.e., Requests for Quote, Information, or proposal; RFQ, RFI, or RFP, respectively) must be excluded from competing for those opportunities. In addition, RFx specifications cannot have unreasonable or restrictive requirements that are meant to limit competition. Also, procurements must be conducted in a manner that prohibits the use of geographical preferences in the evaluation of proposals, except in certain case where federal law explicitly requires or encourages geographic preference or when contracting for architectural and engineering services, provided that specifying geographic location leaves an appropriate number of qualified firms. Examples of procurement methods include the following:
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| − | Micro-purchase: Purchases where the aggregate dollar amount does not exceed $10,000 (or $2,000 if the procurement is construction and subject to Davis-Bacon). When practical, the entity should distribute micro-purchases equitably among qualified suppliers. No competitive quotes are required if management determines that the price is reasonable.
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| − | Small purchase: Includes purchases up to the Simplified Acquisition threshold, which is now $250,000. Informal purchasing procedures are acceptable, but price or rate quotes (minimum 3) must be obtained from an adequate number of sources.
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| − | Competitive proposals (RFx): Used for purchases over the Simplified Acquisition Threshold, which is currently $250,000. These procurement methods require formal solicitation, fixed-price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors. Sealed bids are used when the funding source requires the use of sealed bids.
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| − | Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when specific criteria are met. Be advised that the new Uniform Guidance has placed a greater level of scrutiny on the use of Sole Source procurements (2 CFR 200.320). Under the new guidance, UG has limited the use of sole (or single source) procurements to four distinct justifications. Those are:
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| − | Product/service is only available from a single source;
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| − | Public Emergency Procurement
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| − | Federal Awarding Agency Authorization (the awarding agency specifically authorizes a non-competitive procurement after a written request from the Non-federal entity);
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| − | Inadequate competition after solicitation of multiple sources
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| − | “Continuity of research” justification is no longer an acceptable sole source justification.
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| − | Every sole source will require a price/cost justification.
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| − | Should you have any questions or concerns, please contact Cynthia Asoka, Director of Purchasing at 312-915-7673 or e-mail at casoka@luc.edu.
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| − | ===1.4 Definitions===
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| − | The following definitions apply to terms used in this manual:
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| − | Accounting Unit / Account
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| − | A six digit Lawson Budget accounting unit with an accompanying four digit account identifier, i.e. 100100 (Biology) 6100 (Supplies).
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| − | Accounts Payable (AP)
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| − | The department responsible for processing supplier invoices, credit memos, check requests, travel and non-travel expense reimbursements. Department is also responsible for administering the University’s Procurement Card Program, as well as establishing and ensuring compliance of policies and procedures related to Procurement Card use.
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| − | Acknowledgment
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| − | A written confirmation of a sales agreement that the supplier sends to the buyer. Note that this document could alter agreed upon terms and conditions, and in such a case, must be addressed prior to shipment of any acquired goods or services.
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| − | Adequate Price Competition
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| − | Two or more responsible suppliers/providers competing independently, and submitting priced offers that satisfy the University’s expressed requirements.
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| − | Authorized Buyer
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| − | A person appointed by the Loyola Purchasing Manager or Procurement Card Administrator to procure goods and services in the name of the University for departments, faculty and staff. The buyer(s) has been trained to initiate and administer purchase orders in the Lawson System, or execute and reconcile purchases with a Loyola ProCard or Check Requisition.
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| − | Blanket Order
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| − | A purchase order placed with a supplier for goods and/or services that covers a predetermined period of time; often includes Acknowledgment-negotiated fixed prices or discounts associated with specific groups of items.
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| − | Buyer Actions Matrix
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| − | This matrix indicates Buyer’s necessary actions when spending University Entrusted funds. This form indicates dollar ranges applicable to Pre-Qualified and non Pre-Qualified Suppliers and the necessary steps that must be taken regarding the purchase(s) and its documentation requirements.
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| − | Cardholder
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| − | An employee authorized to make University purchases using a Loyola Procurement Card.
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| − | Change Notice
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| − | A written documentation of a contractual change agreed to by a buyer and supplier.
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| − | Check Requisition
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| − | A form completed by a requesting department asking Accounts Payable to process for the payment of a product or services. The policies for the issuance of a Check Requisition must be followed. Check Requisitions (Payment Requisition) instructions can be found here.
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| − | Code of Ethics
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| − | An agreement by Authorized Buyers to comply with University purchasing ethics when making a purchase with University Entrusted funds.
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| − | Commodity Management
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| − | A procurement process meant to ensure greater University benefits from the coordination of purchasing activity, where appropriate. Buyers benefit from Acknowledgment-negotiated Pre-Qualified Supplier agreements for frequently purchased items.
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| − | Competitive Bid
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| − | Two (2) responsible and comparable bids (solicitation of three or more preferred) obtained for a specific purchase; required when a purchase is $5,000 or greater, and a Pre-Qualified Supplier is not used; or when a purchase is $150,000 or more and a Pre-Qualified Supplier is used. The bids should contain price, quantity, description and supplier’s terms and conditions (if not accepting standard university terms and conditions) and reference to a request for quote (RFQ) or proposal (RFP). Supporting documentation of price/cost analysis must be attached to a Purchasing Checklist and Bid Summary Form and forwarded to the Purchasing Department for central retention and auditing purposes. Please see the Buyer Action Matrix for additional guidance.
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| − | Confirming Order
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| − | A written confirmation of a sales agreement that the buyer sends to the supplier (i.e., copy of the Purchase Order or e-mail).
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| − | Conflict of Interest Disclosure Form
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| − | An agreement between an Authorized Buyer and the University, to adhere to the University's conflict of interest policy when executing his/her duties as an authorized purchasing agent of the University.
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| − | Consortium Supplier
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| − | Supplier under one of the purchasing consortiums to which the university belongs, that offers competitively solicited and awarded contracts to university buyers and procurement cardholders. These contracts offer substantial price discounts and other advantages with no buyer time or effort required to solicit other suppliers. These organizations include: E&I (Educational & Institutional Cooperative); the Association of Jesuit Colleges and Universities (AJCU); U.S. Communities; and the Horizon Resource Group.
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| − | Contract
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| − | A lawfully binding agreement between two or more parties for performing, or refraining from performing, some specified act(s) in exchange for lawful consideration. Contracts can be various types of documents (Purchase Orders, agreements, leases, licenses, letters, etc.) that place the University into a legally binding relationship with another party.
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| − | Encumbrance
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| − | A commitment of University entrusted funds recorded when a requisition or purchase order is entered into the Lawson system. An encumbrance is relieved when a corresponding invoice is entered into the Lawson system and the actual expense is recognized, or the purchase order or line item is closed.
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| − | FOB (Freight On Board) Delivered (Destination)
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| − | The ownership (title) of goods transfers to the buyer when the item is received by Loyola University. This is significant when there is a shortage or damage to the goods. It means the supplier will be responsible to file a damage claim with the freight hauler. Note: Motor carrier regulations require that claims for damage must be filed/initiated within a short time frame of the receipt of the shipment.
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| − | FOB Shipping Point (Origin)
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| − | The buyer takes ownership of the goods at the supplier's dock. If the item(s) is damaged when received, it is the buyer's responsibility to file a claim with the freight company.
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| − | HUBZone Business
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| − | A HUBZone is defined as a Historically Underutilized Business Zone, which is an area located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation. A HUBZone Business is defined as a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration (SBA) – Central Contract Registration (CCR).
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| − | Legal Counsel (In-house)
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| − | The department that handles all of the University's legal matters.
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| − | Pre-Qualified Supplier
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| − | A supplier that completes a formalized, documented process and establishes a contractual relationship with the University for supplying goods and/or services to the campus community.
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| − | A Pre-Qualified Supplier:
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| − | completes a formalized, competitive selection process directed by the Purchasing Department and documented for audit purposes;
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| − | generally accepts the University’s Procurement Card, Lawson PO, or payment by wire transfer;
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| − | signs a contract that details contractual conditions of sale, and guarantees the University pricing, quality, reduction of risk and customer service for a specified period of time;
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| − | allows the University to retain the right to compete any single requirement that equals or exceeds either $20,000 or $50,000 depending upon the commodity; and,
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| − | agrees to comply with all federal, state, local and University laws, rules, regulations and guidelines.
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| − | Pre-Qualified Supplier Listing
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| − | The University's directory of current Pre-Qualified Suppliers, listed by the type of goods and/or services provided is located on the Purchasing Department’s website.
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| − | Procurement Credit Card (ProCard)
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| − | The University's corporate liability credit card, issued by a banking institution, to which a specific employee is assigned use and responsibility for making acquisitions of goods and services, and the reconciliation thereof. (Currently PNC Bank utilizing a Visa Card).
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| − | Purchasing Department
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| − | The department responsible for administering the University's procurement process for most goods and services, as well as establishing policies and procedures for purchase order and contract use.
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| − | Purchasing Manager
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| − | A Purchasing Department employee who acts as an agent for the University and a resource for faculty, staff and students; leads Commodity Management Teams, negotiates Pre-Qualified Supplier agreements, and resolves Pre-Qualified Supplier – University disputes.
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| − | Purchase Order
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| − | An on-line form within the University’s automated purchasing system (Lawson), used to formally document the purchase of goods and/or services when the Procurement Card is not used
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| − | Purchase Requisition
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| − | A request for goods and/or services forwarded to the Purchasing Department by the Originating Department.
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| − | Purchasing Checklist and Bid Summary Form
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| − | A form that must be completed and submitted to the Purchasing Department if a single transaction commits funds of $5,000 or greater using a non Pre-Qualified Supplier, or commits $150,000 or greater using a Pre-Qualified Supplier. Whenever a non Pre-Qualified single source, sole source or consultant is used at or above the previously identified dollar levels, an explanation of why that source was selected must be provided. Evidence of acceptable price/cost analysis must also be included whenever
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| − | this form is used.
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| − |
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| − | Request for Information (RFI)
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| − | A method of solicitation used for gathering information without intent to purchase at the end of the solicitation process.
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| − | Request for Proposal (RFP)
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| − | A method used to assist the University in gathering information and ascertaining supplier’s intentions regarding products and/or services that contain some unknown elements, without making a commitment until the best source is identified, the specification is finalized, and a contract has been negotiated.
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| − | Request for Quote (RFQ)
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| − | A method used to have suppliers offer, for a set period of time and for specific items or services, prices, quantities and delivery factors to be used in selecting the supplier.
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| − | Risk Management
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| − | The department responsible for procuring all institutional insurance, processing claims where applicable, establishing appropriate levels of insurance for suppliers (especially those working on campus), and securing certificates of insurance.
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| − | Single Source
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| − | One source, among others in a competitive marketplace, which, for justifiable reason (i.e., immediate past experience [performance or contractual], delivery capability, contract or grant identification of specific items(s), compatibility with existing equipment or supplies, specific design or performance features essential in maintaining experimental or administrative continuity, availability of parts or maintenance, or for lack of time in emergency situations) the buyer determines to be most advantageous for the purpose of contract award. Also known as non-competitive proposals, this may be appropriate only when specific criteria are met. Be advised that the new Uniform Guidance has placed a greater level of scrutiny on the use of Sole Source procurements (2 CFR 200.320). Under the new guidance, UG has limited the use of sole (or single source) procurements to four distinct justifications. Those are:
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| − |
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| − | Product/service is only available from a single source;
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| − | Public Emergency Procurement
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| − | Federal Awarding Agency Authorization (the awarding agency specifically authorizes a non-competitive procurement after a written request from the Non-federal entity);
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| − | Inadequate competition after solicitation of multiple sources
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| − | “Continuity of research” justification is no longer an acceptable sole source justification.
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| − | Every sole source will require a price/cost justification.
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| − | Small Business (SB)
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| − | An independently owned and operated concern, including its affiliates, that is not dominant in the field of operation in which it is bidding on US government grants/contracts, and qualified as a small business under the criteria and size standards in 13 CFR Part 121 (see FAR Part 19).
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| − | Small Disadvantaged Business (SDB)
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| − | A small business concern, that is at least 51% owned and controlled by individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51% of its stock unconditionally owned by one or more socially and economically disadvantaged and whose management and daily business is controlled by one or more such individuals. Foreign branch campuses will abide by these guidelines, to the extent possible, given local law and funding directives.
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| − | Small Minority-owned Business (SMB)
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| − | A small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by a minority, or in the case of a publicly owned business, at least 51% of the stock is owned by a minority, with one or more minorities managing and controlling the daily operation of the business.
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| − | Small Women-owned Business (SWB)
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| − | A small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by women, or in the case of a publicly owned business, at least 51% of the stock is owned by women, with one or more women managing and controlling the daily operation of the business.
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| − | Small Veteran-owned Business (SVB)
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| − | A small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by veterans, or in the case of a publicly owned business, at least 51% of the stock is owned by veterans, with one or more veterans managing and controlling the daily operation of the business.
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| − | Small Service Disabled Veteran-owned Business (SDVB)
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| − | A small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by service disabled veterans, or in the case of a publicly owned business, at least 51% of the stock is owned by service disabled veterans, with one or more veterans managing and controlling the daily operation of the business.
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| − | Sole Source
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| − | The one and only source, regardless of the marketplace, possessing a unique and singularly available performance capability or product for the purpose of contract award.
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| − | Supplier/Vendor
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| − | Either an internal or external provider of goods or services.
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| − | Uniform Guidance (UG)
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| − | The Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance" 2 CFR 200) was officially implemented in December 2014 by the Council on Financial Assistance Reform (COFAR - now dissolved) and for Procurement Standards, made effective July 1, 2018 by the University.
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| − | University Entrusted Funds
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| − | Funds generated during the course of normal University business proceedings (tuition, gifts/donations, product sales, etc.) and those funds held in trust from granting or contracting agencies or sources (federal, state, and local governments, corporations, foundations, or via subcontract, etc.).
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| − |
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| − | ==General Policies on Ethics, Conflicts of Interest and Gifts==
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| − | 2.1 - Ethical Guidelines
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| − | 2.2 - Conflict of Interest and Buying Ethics
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| − | 2.3 - Anti-Kickback Clause
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| − | 2.1 Ethical Guidelines
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| − | All faculty, staff and students must avoid conflicts of interest between their obligations to the University and their personal affairs. No faculty or staff member or a relative of either group, should have an economic interest in, or relationship with, any firm, person or corporation doing business with the University if there is a chance, or a perception, it could influence the employee’s actions on behalf of the University.
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| − | Loyola's buyers' code of ethics, gift guidelines for employees and anti-kickback clause, and conflict of interest policy are applicable to various University members, such as the University's Authorized Buyers.
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| − | Loyola University Chicago Buyers' Code of Ethics
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| − | University Authorized Buyers, first and foremost, understand and follow the financial policies of the University.
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| − | They strive to obtain the maximum value for each dollar of expenditure.
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| − | They decline personal gifts or gratuities which might affect their decision-making processes.
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| − | They grant competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit.
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| − | They conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation. They DO NOT share vendor pricing information with anyone without written permission from the vendor.
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| − | They make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or are willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of the institution permit.
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| − | They cooperate with governmental and private agencies for the purposes of promoting and developing sound business methods. They foster fair, ethical and legal trade practices, work on behalf of the interests of the University solely, and avoid situations that may result in personal benefit or gain to the buyer.
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| − | Confidentiality
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| − | All University employees in the University’s purchasing environment must be sensitive to issues of confidentiality. It is improper and prohibited to discuss and/or share pricing information, trade secrets or proprietary information with or among suppliers. If there is any question regarding what information may be discussed, contact the Loyola Purchasing Manager.
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| − | 2.2 Conflict of Interest and Buyer Ethics
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| − | The University's principal missions are education and research. In pursuit of these missions, or as a natural outgrowth of such activities, faculty, researchers and staff may become involved in outside activities. While participation in activities away from Loyola benefit the University and are generally encouraged, in some circumstances such activities give rise to conflicts of interest or buying ethics.
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| − | The University actively encourages an open academic environment where teaching, conducting research, and disseminating knowledge are the principal goals. To further these missions, the University has relied and shall continue to rely on the good judgment, professional commitment and 13 moral ethics of the University members to protect themselves and the University from conflicts of interest and buying ethics. For further information on University conflict of interest policies as related to externally funded awards, please refer to the following for the Lakeside and HSD campuses:
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| − | Conflicts of Interest in Externally Funded Projects
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| − | Conflicts of interest in Research policy
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| − |
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| − | Gift Guidelines
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| − | The University’s policy on Conflict of Interest also includes guidelines for the acceptance of Gifts and Favors.
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| − | 2.3 Anti-Kickback Clause
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| − | The purpose of this section is to inform all University employees of their responsibility to act in an ethical manner that brings the best overall value to the University and not to solicit and/or accept personal gain from any procurement transaction.
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| − | Definition: "Kickback" as used in this clause means any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind which is provided, directly or indirectly, to any University, University employee (principal investigator, buyer, executive, etc.), subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with an award.
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| − | Clause: (FAR 52.203-7) The Anti-Kickback Act of 1986 (41 U.S.C. 51-58) (the Act) prohibits, when using US government funding, any person from:
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| − | Providing or attempting to provide or offering to provide any kickback; soliciting, accepting or attempting to accept any kickback; or, including, directly or indirectly, the amount of any kickback in the contract price.
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| − | The Act imposes criminal and civil penalties on any person who, when using federal funding, knowingly and willfully engages in the prohibited conduct addressed above (reference FAR 3.502-2 (b) and (c)).
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| − | Applicability: This clause is designed to work hand-in-hand with the Loyola University Chicago Buyers' Code of Ethics to ensure that Loyola is represented in a professional manner that brings the best value to the University for all acquisitions of products and services.
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| − | ==University and Purchasing Policies and Guidelines==
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| − | 3.1 - General Policy Statement
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| − | 3.2 - External Funding Regulations and Guidelines
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| − | 3.3 - Developing and Writing Specifications, Statements of Work (SOW) and Bids for Services
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| − | 3.4 - Competitive Bidding and the Purchasing Checklist & Bid Summary Form
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| − | 3.5 - University Procurement Card Program
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| − | 3.6 - Policy Statement on University Environmental Sustainability Initiatives
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| − | 3.7 - Policy Statement on Using Small, Disadvantaged, Woman-owned, Veteran-owned, Service Disabled Veteran-owed and HUBZone Businesses
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| − | 3.1 General Policy Statement
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| − | Only individuals who are authorized in writing to commit University Entrusted funds can make purchases on behalf of Loyola University.
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| − | Tools for making purchasing commitments are:
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| − | Procurement Card: a University issued corporate liability, corporate billed, credit card used for supplier payment purposes. Authorized Cardholders use the ProCard, (within pre-established guidelines) for purchasing goods whenever standard University terms and conditions are acceptable to the supplier.
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| − | Purchase orders: these are processed by University Buyers through the Lawson Financial System.
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| − | Web ordering: can be accomplished with the use of a ProCard.
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| − | Check Requisitions: Finance form completed by Loyola personnel for payment of selected purchases. Please access the following link for complete Payment Requisition information.
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| − | Potential suppliers are evaluated by the Purchasing Department and a selected evaluation team based on established criteria.
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| − | Those selected to be Pre-Qualified Suppliers are listed in the University’s Pre-Qualified Supplier Directory and promoted by the Loyola Purchasing Department during interactions with faculty and staff.
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| − | The link to review Loyola’s Pre-Qualified Suppliers can be found on the Purchasing website.
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| − | Pre-Qualified Suppliers are encouraged to accept the ProCard, or otherwise provide for electronic ordering and payment capabilities, and accept pre-determined terms and conditions of sale.
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| − | Contacting Suppliers: Suppliers may be contacted directly to obtain detailed information about a product or service, or to obtain the information needed to resolve technical questions. Purchasing Department Buyers can assist in this process.
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| − | 3.2 External Funding Regulations and Guidelines
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| − | Loyola University Chicago receives external funding and must conform to the minimum procurement standards set forth in the OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in the Federal Register (2 CFR 200) in order to obtain and maintain an approved purchasing system, and to maintain its continued flow of external funding. These standards include provisions for free and open competition to the maximum extent practicable.
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| − | The Purchasing Department and Award recipients are responsible for ensuring that qualified suppliers have an opportunity to bid on needed material and services. Purchasing can help Award recipients identify sources when only one source is known. Free and open competition results in impartiality for both the buyer and the seller.
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| − | Buyers Actions Matrix
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| − | This matrix indicates Buyer’s necessary actions when spending University Entrusted Funds. This form indicates dollar ranges applicable to Pre-Qualified and Non Pre-Qualified Suppliers and the necessary steps that must be taken, and documentation which must be generated regarding the purchase(s).
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| − | Justification for non-competitive purchases
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| − | Purchasing and award recipients are responsible for ensuring that adequate rationale for sole/single source purchases is provided (further information is contained in Section 4.0 – Supplier Selection).
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| − | Rationale for pricing being fair and reasonable
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| − | Purchasing and Authorized Buyers and those dealing directly with suppliers are responsible for determining and documenting that prices paid are reasonable.
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| − | Utilization of small, small disadvantaged, small women-owned, small veteran-owned, small service disabled veteran-owned and small HUBZone businesses
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| − | Purchasing and Authorized Buyers are responsible for ensuring that these types of businesses are given opportunities to bid on needed materials and services. Purchasing can assist in identifying these sources.
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| − | Some external funding agency guidelines must be applied to all purchases regardless of source of funds for consistency, and some are just good business practices which have been adopted by the University. Loyola University Chicago will participate in all audits and will use its best efforts to correct deficiencies.
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| − | Click here for a link to the Federal Acquisition Regulations (FAR) or here for the appropriate Uniform Guidance.
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| − | 3.3 Developing and Writing Specifications, Statements of Work (SOW) and Bids or Services
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| − | When obtaining bids for expensive or technically complex goods or services, it is desirable to obtain firm pricing. To do this, a complete, detailed description of the project (Statement of Work) is necessary for services, and should include the following information:
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| − | Concise scope of work: should be sufficiently detailed so that the supplier has no questions about what is to be accomplished, and who has the responsibility for each task. The scope should include items such as desired methodology, testing, analysis, documentation, training, rights in technical data, etc.
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| − | Deliverables: that is, what you expect to receive as a result of the completion of the service – results, type of reports, prototypes, etc.
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| − | Schedule, including critical milestones: if the schedule is of utmost importance, the consequences of not following it must be stated.
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| − | The University, OMB (Federal Office of Management and Budget), FAR (Federal Acquisition Regulations) or other sponsor terms and conditions (flow downs) applicable to the proposed order.
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| − | Performance criteria, reporting structure/frequency, etc.
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| − | Quality expectation (technical parameters).
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| − | Site peculiarities, hazards, safety requirements, regulations, etc.
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| − | Subcontractor parameters: may subcontractors be used? If so, what are the limitations and required approvals?
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| − | Information regarding experience, references from past projects and resumes of essential employees.
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| − | If the type of work or service will require the supplier to come on University property, University insurance requirements must be conveyed and accepted. Purchasing will obtain insurance requirements from Loyola Risk Management.
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| − | Examples of rates and fees to be requested in a bid package for services might include the following:
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| − | Hourly rates: for particular type(s) of personnel required for the project
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| − | Required permits, licenses and certifications
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| − | Overtime rates
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| − | Expenses (daily or monthly)
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| − | Equipment rental rates
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| − | List of Materials and charges
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| − | Anticipated future charges
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| − | Specifications should be developed for goods and include, at a minimum, the following information:
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| − | A description of the item being procured (including manufacturer, size, speed, color, shape, purity, etc.)
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| − | The model number or part number, if known
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| − | A description of any added on features not in the base product
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| − | Users are encouraged to work with Loyola Purchasing (Buyers/Purchasing Manager) when assistance is needed in the development of Statement of Work or specifications.
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| − | 3.4 Competitive Bidding and the Purchasing Checklist & Bid Summary Form
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| − | Competitive bidding and the completion of a Purchasing Checklist and Bid Summary Form are required when a single transaction a) commits funds at $5,000 or greater using a non Pre-Qualified Supplier, or commits $150,000 or greater using a Pre-Qualified Supplier; with any university payment vehicle. The checklist must also be completed any time a consultant or sole/single source is being used. Adequate rationale must be provided for non-Competitive source selections. Evidence of price/cost analysis (determination of price reasonableness) must be included to meet audit requirements. All checklists must be complete, accurate and adequate.
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| − | The Office of Management & Budget’s General Procurement Standards require that “all procurement transactions be conducted in a manner to provide, to the maximum extent practical, open and free competition. The recipient of federal funds shall be alert to organizational conflicts of interest as well as noncompetitive practices among contractors that may restrict or eliminate competition or otherwise restrain trade. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals shall be excluded from competing for such procurements. Awards shall be made to the bidder or offer or whose bid or offer is responsive to the solicitation and is most advantageous to the recipient, price, quality and other factors considered. Solicitations shall clearly set forth all requirements that the bidder or offeror shall fulfill in order for the bid or offer to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient's interest to do so.”
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| − | Cost/Price Analysis: For those purchases that require the completion of the Purchasing Checklist and Bid Summary Form, the determination of price reasonableness must be addressed on the 2nd page of the form, and then the form, with all supporting documentation, must be submitted to the Purchasing Department. Any federally funded order exceeding $700,000 is subject to Public Law 87-653, Truth in Negotiations Act, and price reasonableness must be justified through cost analysis if the pricing was not established through adequate competition or the item(s)/service(s) is not commercial, or a price analysis cannot be performed. Any externally funded order exceeding $25,000 using a non Pre- Qualified Supplier should be coordinated through the Purchasing Department prior to the selection of the source. Note: Certain external awarding agencies may require additional cost/price analysis. Refer to the agency’s Notice of Award for additional specific requirements.
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| − | Taxes: As a non-profit educational institution, Loyola University Chicago is exempt under Subtitle D of the Internal Revenue Code, Miscellaneous Excise Taxes, 26 U.S.C. 4041 (26 CFR parts 40 through 299) from Federal Excise Tax and from payment of the Illinois Sales and Use Tax (exemption No. E9989-4408-07) on all transactions directly related to University operations. University Procurement Cards have the University’s Illinois tax exemption number embossed on the front side of the card. Suppliers who insist on having an Illinois Department of Revenue Tax Exemption Certificate should be directed to contact the Loyola Purchasing Department at (312)915-8780. Sales tax exemption status may, or may not, be applicable for purchases in other states. Procurement Services can ascertain if there is an exemption available in other states.
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| − | Employees who pay sales and use tax when making purchases external to the Loyola purchasing systems (e.g. personal funds) may not be reimbursed for sales tax, if paid.
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| − | Other taxes: (room or occupancy, city, use, etc.) are applicable and Loyola University is obligated to pay these charges. Approvals: All expenditures must be approved by a departmental individual with budget authority. For specifics on transactions exceeding $5,000, prior to the issuance of a commitment, please refer to: Approving Requests in Excess of $5000.
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| − | 3.5 Procurement Card Program Policy Statement
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| − | At Loyola University Chicago, authorized Cardholders may use Procurement Cards, within the University established guidelines, to acquire goods and services from suppliers. For details concerning the proper use and other policies and procedures governing the University’s Procurement Card Program, please see the ProCard Policy and Procedure Manual.
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| − | 3.6 Policy Statement On University Environmental Sustainability Initiatives
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| − | Loyola University Chicago is committed and continually strengthens its sustainability efforts with our campus partners. Buyers and users should utilize suppliers and service providers that make use of, to practicable extent, materials and services that support the University’s sustainability mission. This should include efforts to conserve energy and water resources, support efficient delivery and supplier programs and reduce waste through reducing, reusing and recycling. The Purchasing Department leverages current supplier relationships to raise awareness of the need to reduce our environmental impact and maximize resource efficiency.
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| − | 3.7 Policy Statement On Using Small Businesses
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| − | Loyola University Chicago is committed to supporting small business enterprises, including socially and economically Small Disadvantaged Businesses, Small Women-owned Businesses, Small Veteran-owned Businesses, Small Disabled Veteran-owned Businesses and HUBZone Businesses in its purchasing programs. Categories of socially and economically disadvantaged small business enterprises are defined in FAR 19.001 while small business enterprises are defined by the federal government in FAR 19.102, and are subject to further guidance under 2 CFR 200.321.
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| − | A Small Business Enterprise is defined as an independently owned and operated concern, including its affiliates, that is not dominant in the field of operation in which it is bidding on government contracts, and qualified as a small business under the criteria and size standards in 13CFR Part 121 (see FAR 19.102)
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| − | A Small Disadvantaged Business is defined as a small business concern, owned and controlled by individuals who are both socially and economically disadvantaged, as defined by the Small Business Administration at 13CFR Part 124, the majority of earnings of which must directly accrue to such individuals. This term also means a small business concern owned and controlled by an economically disadvantaged Indian tribe or Native Hawaiian organization which meets the requirements of 13CFR 124.112 or 13CFR 124.113, respectively. In general, 13CFR Part 124 describes a small, disadvantaged business concern as a small business concern.
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| − | A Small Women-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by women, or in the case of a publicly owned business, at least 51% of the stock is owned by women, with one or more women managing and controlling the daily operation of the business.
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| − | A Small Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by veterans, with one or more veterans managing and controlling the daily operation of the business.
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| − | A Small Disabled Veteran-owned Business is defined as a small business concern in which at least 51% of the concern is owned and day-to-day managed and controlled by disabled veterans (as defined at 38 U.S.C. 101[2]), or in the case of a publicly owned business, at least 51% of the stock is owned by disabled veterans, with one or more disabled veterans managing and controlling the daily operation of the business.
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| − | A HUBZone is defined as a historically underutilized business zone, which is an area located within one or more qualified census tracts, qualified non-metropolitan counties, or lands within the external boundaries of an Indian reservation.
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| − | A HUBZone Business is defined as a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Quinlan School of Business. On foreign campuses, these definitions will remain applicable, but references to US government regulations may not apply.
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| − | Providing Equal Opportunity
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| − | To be sure that the University does not overlook such suppliers who might be able to supply the item(s)
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| − | or service(s) needed, the following guidelines are established:
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| − | Contact Loyola Buyer/Purchasing Manager to assist in identifying small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone businesses.
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| − | Consider breaking large orders into separate groupings to give small businesses a greater opportunity to supply items (competition requirements are still applicable).
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| − | Contact a Loyola Buyer/Purchasing Manager when developing specifications for what is needed.
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| − | When using competitive bidding, give small, disadvantaged, women-owned, veteran-owned, disabled veteran-owned and HUBZone business suppliers the opportunity to submit bids.
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This Manual identifies the procedures applicable to the purchase of goods and services at GovC. It was developed to promote the use of good business practices, to ensure that GovC meets appropriate government requirements, and to limit the organizations risk and liability exposure. It is important that all buyers and government funding recipients understand government rules and regulations pertaining to purchasing with government funds, as well as GovC's purchasing policies and procedures, and accounting policies and procedures.
Buyer compliance with the guidelines contained herein is imperative in providing a more efficient, effective and consistent purchasing process, achieving related GovC goals and determining responsibility and accountability.
CONTENTS: Following is a brief description of the information contained in the sections of this manual:
Section 1 - Introduction to the Purchasing Function has a brief overview of GovC purchasing, and includes definitions for terms used in the manual and contact information for the Purchasing Department.
Section 2 - General Policies on Ethics, Conflict of Interest and Gifts contains those GovC policies and guidelines regarding ethical practices buyers and users of Purchasing services are responsible to follow when making a purchase. It includes the Buyers' Code of Ethics, gift guidelines for employees, the anti-kickback clause, and the GovC's policy regarding conflict of interest.
Section 3 - GovC and Purchasing Policies and Guidelines contains Loyola GovC policies/ procedures and federal requirements related to the purchasing function, including policies on the GovC’s credit card, GovC Environmental Sustainability initiatives, and small, disadvantaged, woman-owned, veteran-owned, service disabled veteran-owned and HUBZone businesses programs.
Section 4 - Supplier Selection contains an explanation of the Pre-Qualified Supplier Program, and the process for determining and contracting with a Pre-Qualified Supplier; sole and single sourcing, bid solicitations; and supplier qualifications and suspension criteria.
Section 5 - Purchasing Options and Services, details procedures for making purchases with other vehicles besides the Procurement Card (i.e., purchase orders, blanket purchase orders, prepayments, etc.), and other GovC services related to the purchasing function.
Section 6 - Restricted Purchases deals with such things as buying carpeting and furniture, using sponsored research funds, leasing equipment, acquiring services, and several other restricted purchasing activities that require involvement of other organizations and special procedures.
Section 7 - Forms/ Tools lists standardized documents, forms and supplementary material which can be found on the Purchasing website.
GovC purchasing policies and procedures apply to all employees who plan or make acquisitions of products, equipment, supplies and/or services with funds held in the custody of GovC. This includes purchases made with a GovC Procurement Card, purchase orders, check requisition, or electronic commerce.
All Procurement functions of the GovC are established to support GovC as a Jesuit, Catholic institution, helping further promote Loyola’s mission and current strategic plan https://luc.edu/strategicplanning/plan2020/) that requires the campus community to seek actionable ways to live out the call to build a more just, humane, and sustainable world. Loyola maintains a deep commitment to human dignity in the workplace with a mission that creates the cornerstone of our institutional identity and community. As a result, Purchasing looks to engage with partners that embody these strategic elements and traditions in maintaining a commitment to social justice and the common good.
Because of the widely varied nature of the University’s activities, all of the commitment activity cannot be performed efficiently by either a completely centralized procurement office or by a completely decentralized operation.
