PROCUREMENT & CONTRACTS

PROCUREMENT 101 TRAINING

 Purchase Goods & Ser vices
• Purchase order management
• Signature Authority to bind CSUSM
W H AT IS • Administration of solicitations (Request For Proposals)
• Strategic sourcing
OUR • Small Business and Disabled Veteran Business Enterprise programs
• Contractual insurance compliance

PURPOSE? • MOUs, agreements, leases and contracts

• Contract review and signature when obligating resources
• Office supplies program
 Responsibility through actions
• Transparency
• Maintain compliance
• Negotiate and settle issues fairly
CODE OF • Honest, fair and ethical practices
E T H IC S • Decline Gifts
• Avoid conflicts of interest
• Know and adhere to the spirit and letter of
the law
 FA I R A N D O PE N CO M PE TITI ON
• Needed for all purchases $50,000 and over. Remember, $50,000 is the magic number!
• The intent of fair and open competition is to protect the public from misuse of public funds;
encourage sound fiscal practices; provide qualified firms with a fair opportunity to do business with
the State; eliminate favoritism, fraud and corruption; and to obtain the best value for the CSU.
• Fair and open competition may involve gathering 3+ quotes; going through a formal request for
proposal process, or finding an available strategic sourcing option.
• Come to Procurement as soon as possible if a contract may exceed $50,000.
• Applies to entire contract term.
• Cannot split the transaction to avoid bidding thresholds.
• The Contract should include all anticipated phases from the beginning, even if it is included as an option to
add a phase at a later date.
• Some MEA’s through the Chancellor’s Office require some form of competition (3 quotes).
• Procurement may be able to help by using another entity’s competitively bid contract.
• A written scope may be required for formal and informal competition.
 DELEGATION OF AUTHORITY
Why Can’t I Sign? We are “Trustees of the California State
University acting through its San Marcos
Campus”

Who can sign an agreement?

Trustees ->Chancellor ->President ->CFO->AVP
Administration ->Procurement & Contracts
Department

Unless you have delegated authority as specified

above, do not make any contractual
commitments, written or verbal (or handshake!)
to any suppliers or other parties.
 DELEGATION OF AUTHORITY
Why Can’t I Sign? Only with Delegation can you obligate University
resources including:

Committing the University to spend money

Committing University resources, expertise, facilities, or

supplies (not just money)

Signing a contractual document (i.e. agreements,

contracts, permits, MOUs, terms and conditions,
confirmations, click-through agreement, etc.)

Negotiating terms and conditions

When in doubt – ASK!

 DELEGATION OF AUTHORITY
Procurement/Signature Authority
• Authority to make a commitment on behalf of the
University to another party (Contract, PO, MOU,
Why Can’t I Sign? etc.).
• Example: A Professor wants to allow an
outside company to use lab equipment or
space for research. Procurement & Contracts
has the authority to negotiate and sign the use
of space contract.

Payment/Fiscal Authority
• Authority to approve requests from one’s budget to
authorize Procurement & Contracts to purchase or
contract on their behalf. After the purchase is
properly authorized by Procurement, the individual
with payment/fiscal authority may authorize
payment.
• Example: A Dean needs a new software. They
have authority to approve the request for the
financial expenditure, and after
purchased/contracted by the Procurement
Authority, fiscal/payment authority allows the
department to authorize payment.
 WHAT’S THE HOLDUP?
Why does it take so long?

• California Law
• Education Code
• CSU Policy
• CSU Initiatives
• Fair and Open Competition
• Internal policies and red tape
• Stakeholder reviews
• Negotiations - MUST use CSU template!

• Insurance (as required by CSU Policy 6946217

(California State Insurance Requirements) and Executive
Order 1069.
PROCUREMENT FLOW
 PROCESS OVERVIEW & RESPONSIBILITIES

R EQ U E S T E R PROCUREMENT AP
• Know your needs (Scope) • Receive and process
• Make the purchase
• Know when it is needed invoices
(Scope) • Contract negotiations
• Cut the checks
• Know what you need to • Contract execution
provide to complete the • Make the payment
purchase
• Ensure compliance • Manage ProCard
• Initiate supplier setup
(Form 204 payee data • Work with vendor program
record)
• Supplier setup
• Enter Requisition
 GENERAL TURNAROUND TIMES
PROCARD

Immediately for goods under $4,500

GOODS AND SERVICES

UNDER $50K $50K - $100K OVER $100K

Up to 4 weeks 4-6 weeks 8 - 16 weeks

Please note that the timeframes may be altered if extensive negotiations are
required or if the supplier cannot provide the required insurance
documentation in a timely manner. The supplier should not provide goods or
commence services until Procurement has issued a contract or purchase order.
 SETTING EXPECTATIONS
FACTORS OPTIONS TIME
Value of your purchase Contract/agreement Value
Requisition/PO Complexity
Type of purchase (defined
Informal bid All required documents
by CSU Policy) Formal bid Negotiations
Complete scope of work ProCard
Insurance

Risk level Stakeholder review

Contact us early!
 INSURANCE REQUIREMENTS

Why are they required?

Why are they so strict?

One of the biggest challenges we face in

finalizing contracts and POs.
 HOW CAN YOU HELP?
It all starts with you!
• Provide the right information

• Provide properly completed paperwork

• Tell other party we can’t use their template

• Get them started on insurance (Doing Business with CSUSM website)

• Don’t wait for the last minute - contact us early

WE ARE HERE TO HELP!

 SCOPE OF WORK
WHAT IS NEEDED?
• Who, what, when, which, why…

• Item part #s
• Services provided
• Project requirements
• Milestones
• Deliverables
• Schedule

WHO IS RESPONSIBLE FOR WHAT?

HOW DO I KNOW WHAT FORMS AND
DOCUMENTS I NEED?
Procurement and Contracts Webpage
 PROCUREMENT AND THE ITR
NOT JUST SOFTWARE LICENSES!
Don’t know if you need an ITR?
ASK IITS!
ITR@csusm.edu
• The ITR required for all online subscriptions, online platforms, Software-as-
a-Service, IT professional services.
• Procurement collects the ITR prior to finalizing a contract or PO
• ITR guides contracting process and schedule
• A late ITR can delay negotiations or issuing PO

• May be agreement or PO depending on risk

REMINDER: Above $50k require multiple quotes for the purchase –

reach out to Procurement asap to perform a solicitation.
 ITR must be completed before the purchase is
made

The ITR process is not a Procurement process

IITS assesses for information security, accessibility, and system
compatibility

Required on all Information & Computer Technology services,

regardless of price, including annual renewals

When in doubt, fill it out

ITR@csusm.edu
ACCESSIBLE TECHNOLOGY INITIATIVE
The Accessibility review is both a Chancellor’s Office initiative
and Federal law – part of the Americans with Disabilities Act
(ADA)

CSUSM uses the Information Technology Review (ITR) to ensure

accessibility.

Managed and owned by IITS, please contact IITS for questions

ITR@csusm.edu
 PROCUREMENT METHOD

AG R E E M E NT/ PURCHASE ORDER

CO N T R AC T • Clear scope of
• Level of risk purchase
• Counter signature • No negotiations
• Over the ProCard
• Negotiated terms threshold
• Length (term) of • Typically doesn't cross
contract Fiscal Years
 REQUISITION
Goods above $4,500 and all services
• Required Documents:
• Quote or preferred supplier if below bidding thresholds (or

1,044 •
•
agreement # if you already have one)
Scope of work or services
Supplier number
Purchase Orders • ITR if software, online subscription, webpages, SaaS
issued in 2021 • HR Determination, if applicable
• When do you need the product or service?

$25,394,032 •
• Additional items may be required
Requisition Comments:
• Company name, contact name, phone # and email
• Delivery requirements
• Priority level or desired start date
• Always enter complete description
 CONTRACTS, MOUS & LEASES
• Services, software, maintenance, and goods contracts
• Clinical placements, Internships , and Community Partnerships
• Memorandum of Understandings (MOUs)

3,356 •
•
International agreements (house of record)
Extended Learning off campus agreements

active • Facility use agreements

• Sponsorships
agreements • Leases/Licenses
• Equipment loan agreements
• Revenue generating agreements
• Institute for Palliative Care agreements

contracts@csusm.edu
 PURCHASE ORDER
AMENDMENTS (POA)
Adobe Sign Form
POA is used to:
•Change price
•Add a new line
•Change quantity
•Change a chart field (if the line has not been paid against)
•Close a PO

or the easier option -

Finalize your invoice & no POA is required to close a PO

Amendments are used to update agreements/contracts

 INDEPENDENT CONTRACTORS
Potential ICs must be evaluated and approved by your Human Resources Analyst

Once approved by HR, enter a requisition and attach the HR Determination and
signed IC agreement with a complete scope of services.

If the supplier is not set up already, complete the payee data record through the
Adobe Sign workflow on Accounts Payables’ website

Note: Some IC agreements may require insurance depending on the scope of

services

Please contact Procurement with any questions on the scope of services or IC

Process. We can assist with scope or process reviews prior to submission.
 PROCARD
Goods - Less than $4,500

No services without prior approval

No splitting of transactions

Subject to ProCard Manual and CSU Policy

Managed by Accounts Payable

pcard@csusm.edu
 CSU System Partners
Contracted Pricing & Rebates
STAPLES
Office supplies delivered to your desk generally w/in 24 hours
• $50 minimum order amount
• Complete user request found at
https://www.csusm.edu/procurement/procurementservices/officesu
pplies/index.html for access

MARKETPLACE
Amazon Business, B&H Photo, Dell, CDW, HP,
Grainger, Fastenal, Waxie, Fisher Scientific, Sigma-Aldrich,
Carolina Biological, VWR and others
marketplace@csusm.edu
 PUBLIC WORKS
Public works projects involve the erection,
construction, alteration, painting, repair, or
improvement of any state structure,
building, road, or other state improvement
of any kind.

• What do I do if I have a public works project?

 MAINTENANCE
Maintenance tasks include routine, recurring
and usual work for the preservation,
protection and keeping of any publicly
owned or publicly operated facility (plant,
building, structure, ground facility, utility
system or any real property) for its intended
purposes in a safe and continually usable
condition for which it has been designed,
improved, constructed, altered or repaired.

• What do I do if I have a maintenance task?

 CSU System Initiatives
Reported annually to the California Department of General Services

SB/MB
25% of ALL Campus Spend
Small Business or Micro Business
California Certified Only

DVBE
3% of ALL Campus Spend
California Certified Disabled Veteran Business Enterprise
 YOUR PART IN
SUSTAINABLE PURCHASES
Look for eco-conscious, recycled content,
and recyclable purchases
Typically found in items such as: pens, paper, toner,
furniture, appliances, giveaway items

sustainability@csusm.edu
 HOW TO REACH US
R EQ U I S I T IO N STATUS & G EN ER A L
QUESTIONS

by phone at x 4555

procurementservices@csusm.edu

CONTRACTS

contracts@csusm.edu
HOW TO REACH ACCOUNTS PAYABLE AND
TRAVEL
AP
All invoice, payment, and hospitality form questions
accountspayable@csusm.edu and
hospitality@csusm.edu

PROCARD
pcard@csusm.edu

TRAVEL DESK
traveldesk@csusm.edu
 NEED ADDITIONAL
INFORMATION OR TRAINING?
It is always available at www.csusm.edu/procurement

How To's & Forms

or call, email or stop by