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How to Order Materials and Services

This section outlines the procedures and forms that are required to process a procurement transaction.

Procurement Value Table

The following table shows the different methods for acquiring goods and services. These are the upper limits approved by the University that a department or administrative unit cannot exceed.

Less than $1,500

The University gives you three ways to procure items totaling $1,500 or less:

1. Procurement Card: Many individuals have been assigned procurement cards. Payments for items purchased on the card are made electronically. The Procurement Card program is a new program for the University. For more information, see the Procurement Card section.
2. Payment Request Form: Submit the original invoice with a payment request form (.xls) to Accounts Payable within the Controller’s Office along with a completed W-9 form (if the vendor is new). A check will be sent to the vendor.
3. Purchase Order: Although a Purchase Order may create an inconvenience and additional work, if the supplier requires one, you may use a Purchase Order.

Note: You may find yourself using a particular supplier many times during the course of the year for small dollar purchases. In this case, a "Blanket Purchase Order" may be the best means of conducting business. If you are in this situation, contact Procurement Services to discuss your options.

Purchases Greater Than $1,500

A Purchase Order is required for all purchases greater than $1,500 (see the list of exceptions). Except for the exceptions as defined in this guide, a payment request form (.xls) may not be used to seek payment for purchases greater than $1,500. An employee’s personal credit card may not be used at any time for purchases greater than $1,500.

If you are purchasing equipment that costs more than $5,000, an Equipment Acquisition Form (.xls) must accompany the Requisition for Supplies and Services Form, otherwise the order will not be processed. Equipment is defined as anything valued over $2,500 with a useful life greater than two years.

Purchases of Specialized Scientific Research Materials

Regardless of the dollar value, purchases of controlled substances, prescription drugs, radioactive materials and select agents must be done via the Purchase Order (PO) system. The University has other procedures that must be followed when procuring these items and use of the PO system helps to ensure that these procedures will be followed.

Please contact us if you need to procure any of these items.

What Is A Purchase Order and How Do I Create One?

There are three reasons for using Purchase Orders:

1. to control the acquisition of goods and services;
2. to create an "encumbrance" in the general ledger of accounts helping you manage your budget; and
3. to track the order and payment by providing a single reference number.

To establish a Purchase Order, complete a Requisition for Supplies and Services Form and forward it to the Office of Procurement Services prior to making your purchase. Procurement Services generates the Purchase Order and sends it to the supplier.

Requisition for Supplies and Services

The Requisition for Supplies and Services Form is the method used to communicate your purchasing requirements to Procurement Services. It provides the procurement team with knowledge of the particular items or services required, shipping information, your recommendations for a supply source, expected pricing, accounting information and appropriate authorizations.

The Requisition for Supplies and Services Form formally authorizes the procurement team to create procurement transactions. While it is possible to change information for purchases (see Purchase Order Changes), it is best to provide as accurate a record as possible at the inception of an order. Whether generated from your system or provided by Procurement, all Requisition Forms should include certain information. Download a pdf of what is required.

Purchase Order Changes

A change to a Purchase Order allows an individual to add items or services, change the chartstring and increase or decrease prices.

A Requisition for Supplies and Services Form must be processed to create a change to a Purchase Order. Please include the Purchase Order number on the requisition form and the text of any Purchase Order change you might request. All authorizations needed for a Purchase Order are also required on a Purchase Order Change. If the change increases the value of the Purchase Order beyond the authorization limits of the original approver, the change must be approved at the next approval level. Note only those items you wish to change when processing a Purchase Order change. Any information not noted as needing change will be left as is.

Purchase Order Cancellations

From time to time, it may be necessary to cancel a Purchase Order. You may have determined the items or services were not needed or could be better provided from another source, the supplier may not be able to provide all the items you have requested, or the final payment for the items or services were less than expected and you wish to eliminate an encumbrance.

To cancel a Purchase Order, please process a Requisition for Supplies and Services Form noting the reason you wish to cancel the Purchase Order and the Purchase Order number of the order you wish to eliminate (exception: when a Purchase Order has less than 5% of its value remaining, an e-mail message to the Procurement Team requesting the closing of a Purchase Order may be used).

Depending on the status of the order with a vendor, there may be financial implications with the vendor for cancellation of an order. Procurement Services can assist you with this.

Competition/Bidding

The Purchasing Policy has specific requirements regarding the solicitation of bids, but everyone is encouraged to seek out competition at every level of purchasing.

Your procurement representative will be happy to provide you with assistance in conducting a formal bid process, which is required for purchases greater than $25,000. The following guidelines are provided for soliciting bids:

1. Written Quotations (Required for Purchases Greater than $25,000): The best, most effective way to create competition is to solicit two or more written bids (three bids are preferred but are not always possible.) This method ensures the selected supplier is providing goods and services in the most cost-effective manner. Best business practices encourage the use of written competitive bidding at all levels of purchasing. At Brandeis, written quotations are not required unless the value of the purchase is $25,000 or more.

Some points to remember when soliciting written quotations are:

1. Bids should include a written request for proposal or pricing (RFP) from Brandeis and a written offer from the suppliers.
2. The offer should include all delivery and installation costs.
3. Delivery should be FOB (Freight on Board) Brandeis or the point where you wish delivery to occur. This ensures liability for products does not transfer to Brandeis until you receive the goods.
4. Any and all future maintenance costs should be noted.
5. In the RFP, your specifications should be as generic as possible. Try not to use name brands but rather the actual technical specification for the product or service required. Any variation from your specification (substitution) should be noted by the bidder.
6. Warranties should be explained in the text of the offer.
7. Payment terms should be delineated in the offer.
8. All bids should be provided on company letterheads and signed by an appropriate company employee authorized to commit the firm to the offer.

2. Single- or Sole-Source Justification: When a purchase order totals more than $25,000 and competition is not possible, a justification of why the single or sole source is being used is required. Sole-source procurement are those where no other supplier is available to provide the same or similar product or service required. A single-source procurement occurs when there are other suppliers of the same or similar products or services but the nature of the application dictates the selection of a particular source, regardless of price.

Single-source procurement is appropriate when:

1. Compatibility with accessories, replacement parts or other integrated systems is the paramount consideration.
2. A specific good or service is required and authorized in a grant or contract to maintain the integrity of the project.

The Sole/Single Source Justification form (see Appendix 3) must be completed when processing these kinds of procurement transactions. Justification must include what market forces are at play, why the item or service requested is unique, and what effect using an alternate would have on the project or institution. Using a Single or Sole Source does not preclude responsibility to analyze the offer. Whenever a Single or Sole Source is required, a cost or price analysis is to accompany the justification.

3. Telephone/Verbal Quotations: Telephone quotations are recommended for purchases between $10,000 and $24,999.99. A telephone solicitation requires many of the same components as a written solicitation but the actual process is managed over the telephone. While telephone solicitations are not required, Procurement Services will many times initiate telephone solicitations in cases where there are a significant number of competitors that will lead to more advantageous pricing.

While Procurement Services will provide you with the service of collecting competitive quotations, you may feel you want to do this on your own.

The following information should be documented during each phone call to assist in the solicitation process:

• The name and telephone number of the suppliers contacted.
• The name and extension of the individual from the supplier making the offer.
• Descriptions of the items being quoted including quantities.
• Any and all notes made during the conversation with the supplier.
• The name, phone extension, and signature of the individual soliciting the quotation.

Contracting With Independent Contractors

From time to time, it may be necessary to contract for professional services from a source other than an enterprise registered as a corporation. In all such cases, the University will comply with Federal and State regulations and guidelines concerning the classification of an individual as an employee or an independent contractor. The Controller’s Office will assist you in this.

University Master Contracts

Procurement Services continues to review the procurement of similar commodities on campus to determine where Master Contracts might help to streamline the procurement process and create volume discounts. View the complete listing of University Master Contracts.

Procurement Card

Brandeis University offers a procurement card (p-card) to departments and individuals responsible for small dollar purchases to assist in these types of transactions. Similar to a personal credit card, a procurement card is for use with retail-oriented suppliers or when a Purchase Order would be inefficient. Billing is directed to the University, not the cardholder. Each card has individualized controls assigned to discourage inappropriate use. Learn more about the procurement card.

Corporate Card

The Corporate Card program is designed for employees of the University who do an extensive amount of traveling for the University. The Corporate Card is the best way for travelers to pay for travel related expenses. The objective of this program is to provide faculty and staff with added convenience, security and flexibility while traveling on behalf of the University. Learn more about the Corporate Card.

Tax Status

Brandeis University is a 501(C)(3) Tax Exempt organization. This status allows the University to seek exemption from sales tax in states where we purchase items for use in Massachusetts. In most states, sales tax collection is not pursued for items purchased in one state then used in another (i.e., items shipped out of state). Tax exemption does not apply to federal and state fuel taxes, local hotel occupancy and food taxes, most transportation surcharges, user fees and meal taxes. When we purchase items or services within Massachusetts, the supplier must have on file a hard copy of our state tax exemption certificate. Each certificate notes the supplier's name and can only be used for that particular supplier. You may contact Procurement Services to arrange for a supplier to receive our tax exemption certificate. We will be happy to provide the supplier with the appropriate form.

Our tax exemption pertains to state taxes; what applies in Massachusetts does not apply in every state. Each state has unique requirements regarding tax exempt status. Some simply require a form to be filled out, and others require an act of the state legislature for an organization to receive exemption. Brandeis University examines our need for sales tax exemption on a state-by-state basis. Contact General Accounting in the Controller’s Office if you have tax exemption questions.