Frequently Asked Questions
(FAQ's) About Purchasing
Q.
Why can't purchase orders be more flexible for increases in products or shipping or postage?A.
They can be flexible. However, we are somewhat limited by the Financial/Purchasing System as to the types of purchase orders we can create.Q.
What has to go out for bid, and what doesn't?A.
The Alabama Competitive Bid Law clearly states that any purchase involving an amount of $7,500, or more, must be put out for formal, sealed bids. The Alabama Competitive Bid Law and University Policy direct that Purchasing Department personnel may place orders at their discretion for amounts up to $7,500. This means that the Purchasing Office may: (1) place an order directly with a supplier; (2) solicit telephone or fax quotes and place an order or (3) solicit written, informal quotations, receive, and evaluate them and place an order. The method used is usually determined by the type and/or dollar value of the products or services and workload.Q.
Why do simple purchase orders (requisitions) take six weeks to process?A.
Without knowing the "specifics" behind this question, it is difficult to answer. Most purchase requisitions involving amounts of less than $7,500 will be processed within seven to ten working days. Delays in processing may be caused by: (1) budget balance not sufficient to cover the purchase; (2) required signature approval is missing; (3) a need to obtain more information from the user or (4) bids were returned to you for review.Q.
Why does purchasing spend extra time sending out for quotes when the department has already gotten quotes?A.
The solicitation of bids and quotations is a purchasing function. Quotations received by departments from suppliers usually contain legal terms and conditions contrary to those contained in the University's bid/quotation documents. Purchasing will send the suppliers the University's forms which contain the appropriate terms and conditions. Note: It is our experience that, in most instances, the bidder will respond with a better price (bid) when the invitation or solicitation comes from the University's Purchasing Department.Q.
Why should the department try to "sole source" an item if purchasing is going to send out for quotes or bids anyway?A.
The simple answer is the department should not try to "sole source" unless an item is only available from one source. On those rare occasions when a sole source can be justified, Purchasing may still send the "sole source" supplier a request for bid to establish the cost, delivery time, f.o.b. point, and payment terms needed to prepare the purchase order.Q.
How do you arrive at a bid due date (for formal sealed bids)?A.
The following factors are considered: (1) location of bidders; (2) complexity of the specifications; (3) time factors (if expressed in the requisition) and, (4) the projected date bidders will receive bids in the mail.Q.
Where do we get information about commodities available on State Contract?A.
From Purchasing. We have direct, on-line access to their contracts.Q.
Why is an award made to a supplier regardless of low bid and sole source?A.
The meaning behind this question is not too clear. On those occasions when bidders have bid on exactly what was requested by the user, nothing is gained by returning the bids to the user for review. Purchasing will usually place the order. We do not know what "sole sourcing" portion means.Q.
Why can't you process our requisitions as we have requisitioned them?A.
The main reason is that more information is needed. Some requisitions contain descriptions that are often vague. For example a size or color may be missing.Q.
Why do you have to re-type the requisition on a purchase order form?A.
We don't do any typing. The data on the requisition is entered into the purchasing system. Some editing is done if necessary. The system will then generate a purchase order. Prior to generating a purchase order, the system will determine if funds are available in the account specified on the requisition.Q.
What does "f.o.b." mean?A.
This term is an acronym for "free on board" which designates the point at which charges for freight begins. FOB destination indicates that the charges begin at the destination; thus there are no charges to the recipient (University). FOB shipping point indicates that the charges begin at the point of shipment; thus charges are borne by the recipient (University). Simply stated FOB destination requires the vendor/supplier to pay freight charges, while FOB shipping point requires the University to pay the shipping charges.The FOB point also indicates the point at which the university assumes responsibility for the goods/merchandise. If the shipment is FOB destination, the responsibility remains with the vendor/supplier until the merchandise reaches the university. A shipment made FOB shipping point holds the University responsible from the point of shipment.
Q.
How do I indicate on the requisition that delivery by a specific date is critical?A.
Indicate it on the requisition or bid specifications. If the specified date is mandatory, clearly state the adverse consequences if the requested date cannot be met. A separate memo may be used. Purchasing will use a statement similar to the following on the bid: "Time is of the essence. The University requires delivery of the items listed herein no later than MMDDYY. Bids offering delivery later than the required date will be considered non-responsive."Note:
Statements such as "immediately", "at once" or "as soon as possible" simply indicate routine processing only.Q.
Is a requisition also a purchase order which can be sent to the vendor?A.
No, requisitions are internal forms and only Purchasing has the authority to issue purchase orders.Q.
Where do I obtain paper purchase requisition forms? Is there a cost?A.
The forms are available at the University Supply Room in Bibb Graves Hall. No, there is no cost.Q.
I have a purchase order and I need to rush payment to a vendor, how can I get a special check?A.
Contact Accounts Payable.Q.
Is it true departmental administrators and authorized signers on accounts have the authority to procure (purchase) goods and services?A.
No, the President of the University is authorized by the Board of Trustees to execute the contracts and other written instruments on behalf of the Board. In addition, the President is authorized to delegate signature authority to other members of the University staff for limited purposes. In general, individuals holding the following titles are authorized by the President to execute contracts on behalf of the University: President, Vice Presidents, Director of Purchasing.Specifically, the Director of Purchasing has the sole responsibility for the procurement of goods and services for the University.
The Assistant Director and Purchasing Specialist are delegated procurement authority by the Director of Purchasing.Q.
May I sign a contract or agreement for goods/services for UNA?A.
No. See answer to the previous question. Send these documents to Purchasing.Q.
If an individual purchases an item for their department without Purchasing's approval, is that individual personally liable?A. They very well could be personally liable.
Q.
May I share bid/quote information with the vendors?A.
Bids/quotes must not be shared until after an award, and then only by the Purchasing Department.Q.
A vendor has questioned me about the University's tax exempt status, what do I tell them?A.
By State Law, the University of North Alabama is exempt from the payment of Alabama Sales Tax (Section 40-230(15) Code of Alabama, 1975 and further explained in the Department of Revenue Rule G27-0513. Send all inquiries to Purchasing.Our Sales Tax Account Number 39-1849 is printed on all purchase orders.
Q.
When we indicate "no substitute" on the requisition, why do you still solicit bids or quotes?A.
By simply adding the words "no substitute" to a requisition does not provide a reason for such a request. Requisitions requesting that items be purchased from a specific vendor. Where substitutes to the vendor or brand are unacceptable, must be accompanied by a written justification explaining the circumstances that make substitutes unsuitable.Please forward comments to GHolcomb@unanov.una.edu