Revised Processing Requirements for Purchases, effective 7/1/02

CHART A - REVISED PROCESSING REQUIREMENTS - EFFECTIVE JULY 1, 2002
PURCHASE TYPE: MATERIAL PURCHASES: SUPPLIES, PARTS, UTILITIES, EQUIPMENT
SUBSIDIARY	ACCOUNT CODES
EE	734200-738990
FF	739100-753990
GG	754100-755990
KK	763100-765990
See University Purchasing Manual dated July 1994, Section 2. Substitute the dollar edits and account codes contained in this chart for the dollar limits and object codes referenced in the Manual.
	1	2	3	4	5
Total Dollar Value of Purchase Request	Is Contract Use Required (MHEC, State, Campus, University)?	Are Confirmed Prices Required from Vendor?	Is Sole Source Justification Form Required?	Are Public Bids Thru Procurement Required?	Requirements for Change Orders
$5,000 or Less	Yes, if available - Reference Contract Type and Number in Line Details panel under "Type".	YES, AT $2,000, REFERENCE VENDOR CONTACT NAME AND DATE PRICES WERE CONFIRMED IN THE COMMENTS PANEL. Maintain any written documentation in your files. Do not send to Procurement.	No	No	(1) Line Item Specific PO's: Increase/decrease is required ONLY if there is a change to a line item description, or if you wish to add a new line item. Do not issue change orders for a price change. Contact Procurement if increase is against a bid item or an item w/pricing based upon a written quote. Note that 10% quantity overages are standard in the printing trade. (2) Blanket Orders An On-line Change Order is required to modify a blanket order. Note: We recommend use of a Procard instead of a blanket order whenever appropriate. Related Job Aids: See Purchasing Job Aid - Cancel a PO, once it has been Budget Checked, for instructions on how to cancel a purchase order. See Purchasing Job Aid - Working with Vouchered Purchase Orders, for instructions on how to close out a purchase order.
$5,000.01 - $50,000
Contract Purchases	Yes, if available - Reference Contract Type and Number in Line Details panel under "Type".	Yes - Submit one written quote to Procurement referencing PO Number on Quote	No	No
Non-Contract Purchase available from more than one source of supply	Does Not Apply	Does Not Apply	Does Not Apply	Yes - Submit to Procurement for Bidding. Use the Temporary Vendor ID in On-Line System
Sole Source, Non-Contract	Does Not Apply - Reference Sole Source purchase in Line Details panel under "Type"	Yes - 1 Written Quote - Submit to Procurement referencing PO Number on Quote	Yes - Submit to Procurement referencing PO Number on SSJ form	No
$50,000.01+
Contract Purchases	Yes, if available - Reference Contract Type and Number in Line Details panel under "Type"	Yes - Submit 1 Written Quote to Procurement referencing PO Number on Quote	No	No
Non-Contract Purchase available from more than one source of supply	Does Not Apply	Does Not Apply	Does Not Apply	Yes - Submit to Procurement for bidding. Use the Temporary Vendor ID in On-Line System
Sole Source, Non-Contract	Does Not Apply - Reference Sole Source in Line Details panel under "Type"	Does Not Apply	Yes	Yes - Submit to Procurement in On-Line System for Sole Source Bid. Use the Temporary Vendor ID. (Procurement will obtain a bid from the sole source vendor)
NOTES: Contract Types: State, University, Campus, MHEC - Reference Contract Name and Number on Line Details panel. Quotes SHALL reflect acknowledgement of the contract type and reference the discount or markup, depending on how contract award is structured. This is an audit requirement. Purchase orders may not be split out into multiple orders to avoid dollar limits. Procard: We recommend the use of Procard whenever possible and appropriate. This will save everyone time and paperwork. Contracts Access:Visit the Procurement Department web site at http://www.umass.edu/procurement for access to contract details and purchasing policy. Sub. GG, Space Rental/Lease - requires Board of Trustee approval. Daily space rental (for conferences, seminars, etc.), charge to 734210, 734220, as appropriate. Sole Source: Read Sole Source Documentation form for explanation of requirements that must be met to qualify for sole source. Business Expenses: Outside caterers require a Contract for Services at $1,000.01, even if charged to 734210 or 743010. Confirming Purchase Orders: Purchase Order numbers may not be released to anyone until the purchase order status = Approved and the Budget Check Status = Valid. See the PO Header for statuses. Employees: Purchases may not be made from University employees, nor from any business owned by a University employee.

PURCHASE TYPES THAT DO NOT FALL UNDER MATERIAL PURCHASES, EQUIPMENT/SOFTWARE MAINTENANCE, CONTRACTS FOR SERVICES, SPACE RENTAL/LEASE, EQUIPMENT RENTAL/LEASE/LEASE-PURCHASE, OR LABOR & MATERIALS CONSTRUCTION & BUILDING MAINTENANCE, FOLLOW THE FLOW CONTAINED IN THIS CHART (CHART A). CONTACT A BUYER IN PROCUREMENT IF YOU ARE UNSURE.

CHART C - REVISED PROCESSING REQUIREMENTS - EFFECTIVE JULY 1, 2002
PURCHASE TYPE: CONTRACTS FOR SERVICES   SUBSIDIARY HH, ACCOUNT CODES 757100-758990 SUBSIDIARY JJ, ACCOUNT CODES 761100-762990 SUBSIDIARY NN, ACCOUNT CODES 772010-772140
See University Purchasing Manual dated July 1994, Section 3.7. Substitute the dollar edits and account codes contained in this chart for the dollar limits and object codes referenced in the Manual.
	1	2	3	4	5
Total Dollars for the Entire Contract Term	Is Contract Use Required (MHEC, State, Campus, University)?	# of Quotes Required?	Is a Sole Source Justification Form Required?	Are Public Bids Thru Procurement Required?	Is a Contract Agreement Required?
$1,000 or Less Contract, Non-Contract, Sole Source	Yes, if available. Reference Contract Type and Number in Line Details panel under "Type"	None	No	No	No. Department and Vendor may elect to have one. Do NOT send to Procurement. Keep in department files.
$1,000.01 - $5,000 Contract, Non-Contract, Sole Source	Yes, if available. Reference in Line Details panel under "Type"	None Provide prevailing wage rates & insurance,* if applicable	No	No	Yes - Short form CFS required to $1,999.99. Long Form CFS required at $2,000. Submit to Procurement referencing PO number. Also submit prevailing wage rates & insurance, if applicable.
$5,000.01-$25,000
Contract Purchases	Yes, if available. Reference in the Line Details panel under "Type"	None	Does Not Apply	No	Yes - Long Form CFS. Submit to Procurement referencing PO number. Exception: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions
Non-Contract Purchases available from more than one source of supply	Does Not Apply	3 quotes. Submit to Procurement w/PO number listed on quotes. Exception: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions	Does Not Apply	No	Yes - Long Form CFS. Submit to Procurement referencing PO number. Exception: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions
Sole Source, Non-Contract	Does Not Apply	Does Not Apply	Yes - Submit to Procurement referencing PO number on form.	No	Yes - Long Form CFS. Submit to Procurement referencing PO number. Exception: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions
$25,000.01+
Contract Purchases	Yes, if available. Reference Contract Type and Number in the Line Details panel under "Type"	None	Does Not Apply	No	Yes - Long Form CFS. Submit to Procurement referencing PO number. Exception, Sub. JJ: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions
Non-Contract Purchases available from more than one source of supply	Does Not Apply	Does Not Apply	Does Not Apply	Yes. Enter PO into On-Line System using Temporary Vendor ID.	Yes. Obtain when bid is awarded.
Sole Source, Non-Contract	Does Not Apply	Does Not Apply	Yes	No Exception, Sub. JJ: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions	Yes - Long Form CFS. Submit to Procurement referencing PO number. Exception, Sub. JJ: If service requires prevailing wage rates and insurance,* contact Procurement for processing instructions
NOTES: Contract Types: State, Campus, University, MHEC. Reference Contract Name and Number in Line Details panel. Quotes SHALL reflect acknowledgement of the contract type and reference the discount or markup, depending how the contract is structured. This is an audit requirement. Purchase orders may not be split out to avoid dollar limits . Employees: Contracts for Services may not be issued to University employees, nor to any individual whom the IRS might consider to be an employee. Reimbursement to employees is inappropriate in these subsidiaries. See the University Purchasing Manual, Section 1.3.4, Rules for Properly Classifying Workers. Business Expenses: Outside caterers require a Contract for Services at $1,000.01, even if charged to 734210 or 743010. Signatures in addition to that of the requesting department, are listed below: $1,000-$9,999.99 - Director of Procurement $10,000-$24,999.99 - Director of Procurement, Vice Chancellor $25,000-$49,999.99 - Director of Procurement, Vice Chancellor, Campus Legal Review, Chancellor $50,000-$199,999.99 - Director of Procurement, Vice Chancellor, Campus Legal Review, Chancellor, President Please allow ample processing time. The approval process can take up to several weeks when legal review and the President's signature are required. Change Orders: Any need to change dates of service, to amend contract terms, or to increase a CFS must be entered into the On-Line System as a Change Order. A written amendment to the contract that has been signed by all the original parties is required and must be submitted to Procurement as an attachment to the Chnage Order. Reference the PO number on the attachment. If an increase would put the order in another dollar category that would require legal review, competitive quotes, or public bids, contact Procurement for guidance. Sole Source: Read Documentation form for Professional Services for explanation of requirements that must be met to qualify for sole source. Contracts Access (MHEC, State, Campus, University): Visit the Procurement web site at http://www.umass.edu/procurement to access contract details and purchasing policy. Confirming Purchase Orders: Purchase Order numbers may not be released to anyone until the purchase order status = Approved and the Budget Check Status = Valid. See the PO Header for statuses. On State Appropriated Funds: Contact Procurement for guidance. When in doubt, check it out with Procurement.   * Prevailing wage rates & insurance: Required for all trade labor at $1,000.01; for example, installation of carpet, janitorial services, electrical, plumbing, etc. Campus departments will contact the Contracts Section in the Procurement Department for processing instructions, which are governed by Commonwealth of Massachusetts law.

CHART D - REVISED PROCESSING REQUIREMENTS--EFFECTIVE JULY 1, 2002
PURCHASE TYPE: SPACE RENTAL/LEASE, EQUIPMENT RENTAL, LEASE, LEASE-PURCHASE SUBSIDIARY GG - ACCOUNT CODE 754100 SUBSIDIARY LL - ACCOUNT CODES 766100-767880
See University Purchasing Manual dated July 1994, Section 3.8. Substitute the dollar edits and account code edits contained in this chart for the dollar limits and object codes referenced in the Manual.
	1	2	3	4	5
Total Dollars for the Entire Contract Term	Is Contract Use Required (MHEC, State, Campus, University)?	Is a Contract Agreement Required?	Is a Sole Source Justification Form Required?	Are Public Bids Thru Procurement Required?	Additional Information
Up to $1,000 Contract, Non-Contract, Sole Source	Yes, if available. Reference contract Type and Number in Line Details panel under "Type".	Yes - Maintain in your files. Do not send to Procurement.	No	No	Space Rental: Daily Space Rentals (for conferences, seminars, etc.) should be charged to 734210, 734220, as appropriate. Space Lease: Requires Board of Trustee Approval. Contact University Legal Counsel for assistance. Equipment Rentals/Leases: Need a contract agreement for University's protection. Need to know t's and c's in case of loss, damage to equipment. Short-term rentals not a problem. Long-term leases, or lease-purchases are more complex and require a case-by-case review.
$1,000.01 to $5,000 Contract, Non-Contract, Sole Source	Yes, if available. Reference in Line Details panel under "Type".	Yes, submit agreement to Procurement.. List PO number on the agreement.	No	No
$5,000.01+
Contract Purchases	Reference contract Type and Number in Line Details panel under "Type".	Yes, submit agreement to Procurement.. List PO number on the agreement.	Does Not Apply	No
Non-Contract Purchases available from more than one source of supply	Does Not Apply	Does Not Apply	Does Not Apply	Yes. Enter PO into On-Line System using the Temporary Vendor ID.
Sole Source, Non-Contract	Does Not Apply	Yes, submit agreement to Procurement.. List PO number on the agreement.	Yes, submit agreement to Procurement.. List PO number on the agreement.	No
NOTES: Contract Types: State, Campus, University, MHEC. Reference Contract Name and Number in Line Details panel. Quotes SHALL reflect acknowledgement of the contract type and reference the discount or markup, depending how the contract is structured. This is an audit requirement. Purchase orders may not be split out into multiple orders to avoid dollar limits . Contract Agreements: Adjust contract terms and conditions as follows before you sign: The Commonwealth/University pays in arrears. The Commonwealth/University will not pay attorney's fees. The Commonwealth/University will not sign off on any contract that contains a hold harmless clause. All contracts must be construed under the laws of the Commonwealth of Massachusetts. Contracts that require the signature of the Associate Treasurer will be addended by legal staff. Purchase Orders Against Multi-Year Contract Agreements: Departments may encumber orders for only one fiscal period at a time. Subsequent fiscal years against the agreement may be encumbered against the original purchase order via the On-Line Change Order in the appropriate budget period, provided provisions have been made by the department to insure that the order does not close out. This feature is inappropriate for contracts that require a new contract agreement each fiscal period, or against purchase orders that have been closed out by the system. Change Orders: Any need to change dates of service, amend contract terms, or increase a price/cost must be entered in the On-Line System as a Change Order. A written amendment to the contract that has been signed by all the original parties is required. Contact your buyer in Procurement for guidance. Employees: Departments may not contract with a University employee, nor with any business owned by a University employee. Signatures: If a contract is greater than a year's duration, it must be signed by the Associate Treasurer. Procurement will obtain the signature. Equipment Lease-Purchase: Usually bid through Procurement for the purchase of the equipment first. Include a statement in the bid specs that the purchase rights will be assigned to a finance company. Then, go to bid through Procurement to establish the finance company. Lease-purchase is a costly, time consuming process. Not recommended for purchases valued at less than $100,000. Plan well in advance. Sole Source: Read Sole Source Justification/Explanation form for explanation of requirements that must be met to qualify for sole source. Financing arrangements are seldom regarded as sole source. Contracts Access (MHEC, State, Campus, University): Visit the Procurement Department web site at http://www.umass.edu/procurement for access to contract details and purchasing policy. Confirming Purchase Orders: Purchase Order numbers may not be released to anyone until the purchase order status = Approved and the Budget Check Status = Valid. See the PO Header for statuses. On State Appropriated Funds: Contact Procurement for guidance. When in doubt, check it out with Procurement.

Procurement Department Room 407 Goodell Building University of Massachusetts Amherst Tel:  (413) 545-0361 Fax: (413) 545-1643
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Last updated: July 1, 2004