Harvard Procurement Manual PDF

HARVARDUNIVERSITYPROCURETOPAYGUIDE
OVERVIEW
SECTIONI:CONFLICTOFINTEREST,CODEOFETHICS
CONFLICTOFINTEREST
CODEOFETHICS
PERSONALPURCHASES
SECTIONII:BUYINGATHARVARD
STRATEGICPROCUREMENTSROLE
HOWSTRATEGICPROCUREMENTWORKSWITHTHEVENDORCOMMUNITY
BESTVALUEVS.BESTPRICE
LEVERAGINGHARVARDSSPEND
MARKETBASKETAPPROACH
VENDORDEFINITIONS
HCOMANDHARVARDPARTNER,PREFERRED&PRICINGVENDORS
MINORITYANDWOMENOWNEDBUSINESSENTERPRISEPROGRAM
HCOMANDWOMENANDMINORITYOWNEDBUSINESSES
SECTIONIII:PURCHASINGPROCEDURES
THEREQUISITION/PURCHASEORDER

HarvardUniversityProcuretoPayGuide
PURCHASEORDERGUIDELINES
HCOMREQUISITIONSANDPURCHASEORDERS
HCOMREQUISITIONANDPURCHASEORDERGUIDELINES
HCOMFOUNDATIONALPRACTICESCREATINGREQUISITIONS
APPROVINGREQUISITIONS
MAINTAININGPURCHASEORDERS
STANDINGPURCHASEORDERS
HCOMSTANDINGORDERS
BLANKETPURCHASEORDERS
INVOICEPROCESSING
INVOICEPROCESSINGINHCOM
HCOMFOUNDATIONALPRACTICEINVOICES
TAXESANDEXEMPTIONS
CREDITAPPLICATIONSANDREFERENCES
SECTIONIV:GENERALGUIDELINESONPURCHASINGPRACTICES
RECEIVINGPURCHASES
RECEIVINGINHCOM
HCOMFOUNDATIONALPRACTICERECEIVING
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StrategicProcurement

MANAGINGVENDORRELATIONSHIPS
HOWTOMANAGEAVENDORISSUE
SECTIONV:ADVANCEDPURCHASINGPRACTICES
SELECTINGQUALIFIEDVENDORS
PREPARINGANDEVALUATINGABID
NEGOTIATIONTECHNIQUES
EQUIPMENTMAINTENANCEANDSERVICEAGREEMENTS
PURCHASINGCAPITALEQUIPMENT
SECTIONVI:SPECIALSITUATIONS
PURCHASINGRADIOISOTOPES
PURCHASINGTAXFREEALCOHOL
PURCHASINGCONTROLLEDSUBSTANCES(NARCOTICS)
PURCHASINGNEEDLESANDSYRINGES
DUTYFREEENTRYFORSCIENTIFICEQUIPMENT
SECTIONVII:FEDERALPROCUREMENTREQUIREMENTS
OVERVIEWOFFEDERALPROCUREMENTREQUIREMENTS
PURCHASINGWITHCONTRACTFUNDS
PURCHASINGWITHGRANTFUNDS
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SUBCONTRACTINGPLANSFORSMALLANDSMALLDISADVANTAGEDBUSINESSES
DEBARMENT
SPONSOREDPURCHASESINHCOM
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OVERVIEW
TheHarvardUniversityProcurementGuideisaresourceforfaculty,staffandstudentswhoplanormake
acquisitionsofproducts,equipment,suppliesand/orserviceswithfundsheldinthecustodyoftheUniversity.This
includespurchasesmadewithaPurchasingCard(PCard),purchaseorders,andpaymentrequestsgeneratedvia
theHarvardCrimsonOnlineMarketplace(HCOM),pettycashorelectroniccommerce,aswellaspurchasesof
goodsandserviceswhicharepurchasedwithpersonalfundsandlaterreimbursed.
AtHarvardUniversity,manybuyingdecisionsaremadebyfacultyandstaffintheschoolsanddepartments.The
Universityexpectstheseindividualstomakesoundpurchasingandcontractingdecisionsthatwillensurethe
continuedandefficientoperationoftheUniversity.
TheStrategicProcurementdepartmentexiststohelpmaximizethevalueofeveryprocurementdollar.Onewaywe
dothisisbyestablishingvendorpartnershipsformajorcommodities.Thesepartnershipshavebeennegotiatedby
StrategicProcurementwiththecooperationofthefacultiesusingthefullbenefitoftheUniversity'sconsiderable
buyingpower.
ByorderingfromtheVendorPartnerswheneverpossible,youreceivethebestvalueforyourdollarthrougha
combinationofcompetitivepricing,effectiveservice,andappropriatequality.Inreturnforthisbestvalue,itis
expectedthatmostspendingwillbedirectedtoVendorPartners.Thecurrentpartnershipsavailabletoyouare
locatedontheVendorPartnerspage.
Throughpurchasingdecisions,Universitycontrolledfundsarecommittedandthebuyerisassuringthe
Universitythatyou:
identifiedalegitimateneedforyourpurchase
competitivelybidornegotiatedyourpurchases,whenappropriate
metFederalprocurementrequirements
compliedwiththeConflictofInterestandCodeofEthics
selectedqualifiedvendors
dealtwithvendorsprofessionally
receivedandinspectedyourpurchases
sourcedminorityandwomenownedvendors
sourcedlocalvendors
metdocumentationrequirementstosupportyourpurchase
willprocessyourinvoicespromptly
Notethatsomedepartmentshaveverycomprehensivepurchasingprocedures.Youshouldbefamiliarwiththese
proceduresandadapttheguidelinespresentedtotherequirementsofyourindividualdepartmentswhen
necessary.HarvardreceivessubstantialresearchfundingfromFederalagenciesandisobligatedtocomplywith
federalandgrantrequirements.FormoreinformationonfederallyfundedpurchasesseeSectionVII:Federal
ProcurementRequirements.
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SECTIONI:CONFLICTOFINTEREST,CODEOFETHICS,PERSONAL
PURCHASES
CONFLICT OF INTEREST
IndividualsservingtheUniversityshallatalltimesactinamannerconsistentwiththeirfiduciary
responsibilitiestotheUniversityandshallexerciseparticularcarethatnodetrimenttotheUniversityresults
fromconflictsbetweentheirinterestsandthoseoftheUniversity.
Anindividualisconsideredtohaveaconflictofinterestwhentheindividual,oranyofhisFamilyorAssociates
(i)
hasanexistingorpotentialfinancialorotherinterestwhichimpairsormightappeartoimpair
theindividual'sindependenceofjudgmentinthedischargeofresponsibilitiestotheUniversity,
or
(ii)
mayreceiveamaterial,financialorotherbenefitfromknowledgeofinformationconfidentialto
theUniversity.The"Family"ofanindividualincludeshisorherspouse,parents,siblings,children
and,iflivinginthesamehousehold,otherrelatives.
An"Associate"ofanindividualincludesanyperson,trust,organization,orenterpriseof,in,orwithwhich,the
individualoranymemberofhisorherFamily
(i)
isadirector,officer,employee,member,partner,ortrustee,or
(ii)
hasafinancialinterestthatenableshimorher,actingaloneorinconjunctionwithothers,to
exercisecontrolorinfluencepolicysignificantly,or
(iii)
hasanyothermaterialassociation.
Ifanindividualbelievesthatheorshemayhaveaconflictofinterest,theindividualshallpromptlyandfully
disclosetheconflicttohisorhersupervisorandshallrefrainfromparticipatinginanywayinthematterto
whichtheconflictrelatesuntiltheconflictquestionhasbeenresolved.Insomecases,itmaybedeterminedthat,
afterfulldisclosuretothoseconcerned,theUniversity'sinterestsarebestservedbyparticipationbytheindividual
despitetheconflict.
CODE OF ETHICS
IndividualspurchasinggoodsandservicesonbehalfofHarvardUniversityshouldconductbusinessinamanner
thatisconsistentwiththeeducationalandresearchgoalsoftheUniversity.Purchasingactivitiesshouldbe
conductedinaprofessionalmanner.Purchasingdecisionsshouldbemadeonreasonableassessmentsofquality,
service,competitivepricing,andtechnicalqualifications.
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Effortsshouldbemadetomaintainpositiveandprofessionalrelationswithvendors.Businessshouldbe
conductedingoodfaithanddisputesresolvedquicklyandequitably.Vendorsdoingbusinesswiththe
Universityshouldbeheldtostandardspromotingsoundandethicalbusinesspractices.
Procurementdecisionsshouldbemadewithintegrityandobjectivity,freefromanypersonal
considerationsorbenefits.
PERSONAL PURCHASES
AHarvardUniversitypurchaseorderandtheUniversity'staxexemptnumbercannotbeusedlegitimatelyfor
personalpurchases.InappropriateuseofHarvard'staxexemptnumbercouldjeopardizetheUniversity'stax
exemptstatus.
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SECTIONII:BUYINGATHARVARD
THE ROLE OF STRATEGIC PROCUREMENT
ThemissionofStrategicProcurementisto:
DeliverprocurementservicesandsupporttotheHarvardUniversitycommunitythatfurthersthestrategicobjectives
oftheschoolsandadministrativeorganizations.ImprovetheaggregatebottomlineoftheUniversityby:
Providingethical,professional,andeffectivepurchasingservicesandsupport
LeveragingUniversitybuyingpowerthroughsuppliermanagement,contractnegotiation,adoptionof
technologies,andcollaborativebuying
SupportingtheUniversityscommitmentstosupplierdiversity,thelocalbusinesscommunity,andthe
environment
HOW STRATEGIC PROCURMENT WORKS WITH THE VENDOR COMMUNITY:

StrategicProcurementworkswiththevendorcommunityonseveraldifferentlevelsdependingupon:
OverallUniversityexpenditures
PrevalenceofspendthroughouttheHarvardcommunity
Recognizedopportunityforleveragedbuying
Perceivedriskfactors
Userrequestorinterest
Otherconsiderations,includingMinorityorWomenownedstatusofthevendor
[Notethatinsomecases,vendorbasesarelargelycontrolledbyHarvardgroupsoutsidetheStrategicProcurement
Department(e.g.foodservicevendorsbyDiningServices;periodicalvendorsbyHarvardlibraries)].
StrategicProcurementalsotargetsvendorsforinclusionintheHarvardCrimsonOnlineMarketplace(HCOM).
HCOMisHarvardscomprehensiveprocuretopaysolutionwhereusersrequest,approveandreceivegoodsand
servicesfrommanyofHarvardspartner,preferredandHarvardpricingvendors.
BEST VALUE VS. BEST PRICE
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Thebestpricedoesnotalwaysreflectthebestvalue.Thebestvaluecanbedeterminedbyevaluatingthefactors
listedbelow.Anyorallofthesemaybetakenunderconsiderationpriortocommittingtoasignificant/complex
purchase.
Thepriceoftheproductorservice
Provisionsforongoingmaintenance(e.g.lifecyclecosting)
Qualityoftheproductorservice,oritstechnicalcompetency
Reliabilityofdeliveryandimplementationschedules
Warranties,guaranteesandreturnpolicy
Supplierfinancialstability
Industryandprogramexperience
Priorrecordofsupplierperformance
Supplierexpertisewithengagementsofsimilarscopeandcomplexity
Provendevelopmentmethodologiesandtools
Innovativeuseofcurrenttechnologiesandqualityresults
LEVERAGINGHARVARDSSPEND
Harvardisbestabletomaximizetheimpactofitspurchasingdollarswhenitpositionsitselfasafavored
customerwithaselectedgroupofsuppliers.TheUniversityislesslikelytoenjoyspecialconsiderationfroma
vendorwhenpurchasesaredistributedamongmanyoftheircompetitorsforthesameorsimilarproducts.When
Harvardexpendituresareviewedintheaggregate(vs.byindividualschoolsordepartments),Harvardcan
commandbetterpricingandhigherservicelevelsforall.Focusingonfewersupplierscanprovideadditional
advantagesbyloweringprocessingcostsandtransportationfees.Campustrafficcanbereducedforpositive
environmentalbenefitsandconsolidatingspendcouldleadtotheabilitytoidentifyproductsthatareappropriate
forstandardization,basedonvolume.ByusingvendorsfoundintheHCOMMarketplaceforasignificantnumberof
purchases,youareincreasingHarvardsleverageprovidingStrategicProcurementanopportunitytonegotiate
improvedpricingandadditionalsupplierbenefits
MARKET BASKET APPROACH
Relationshipswithvendorsthatsellsuppliesandconsumablesareoftencreatedusingthemarketbasket
approach.Withtheassistanceofthesupplier,frequentlypurchasedand/orhighestdollarvalueitemsare
identifiedandnetpricesareestablished.Thebalanceoftheproductlinewhichisboughtlessoftenisaddressed
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viaadiscountfrompublishedlistprice.Thenetpriceditemstypicallyaccountforthelargestpercentageof
overallUniversityvolume(eitherdollarorquantity)withthatsupplier.
Themarketbasketisreviewedannuallytocheckthattheproductmixisrelevantandappropriate.Whenusing
thismethod,departmentpurchasersmayfindspecificitemsavailablefromothersuppliersatlowerpricepointsat
anygiventime.But,theinvestmentinemployeetimeandeffortrequiredtoexploretheseoptionsmayactually
resultinahigheroverallcosttotheUniversity.
StrategicProcurementregularlybenchmarksagainstcompetitorsandeducationalgrouppurchasingorganizations
tohelpensurethatpricingisontarget.PeriodicanalysisofselectedHarvarddepartmentsspendinghasindicated
thatthebestpricingandlongtermvalueisachievedusingthemarketbasketmodel.
ByusingtheHCOMMarketplace,staffwillbeabletomaximizethevalueofthemarketbasketmodelwitha
selectedgroupofsuppliers.
VENDORDEFINITIONS
VendorPartners
Products/servicesprovidedimpactalargesectionofthecommunitywithsignificantspend.
TheselectionprocessinvolvesacomprehensiveRFP(RequestforProposal)process,coordinatedby
StrategicProcurement,involvingstakeholdersfromaroundtheUniversity.
AUniversitycontractisdevelopedincollaborationwiththeOGC.
StrategicProcurementmanages,measures,andmonitorsthevendorsactivityoncampusthroughregular
meetingsandreporting.
StrategicProcurementandthevendorpartneractivelyseekopportunitiestoaddvalueandreducecosts.
StrategicProcurementworkstokeepapprisedofshiftingmarketfactorsandthecompetitivemarketplace
inthecommoditythevendorsrepresent.Vendorsmaybesubjecttobenchmarkingandauditing.
Stakeholdersmaymeetperiodicallytoreviewthestatusoftherelationshipandprovidefeedback.
Examplesinclude:officesupplies,officefurniture,copiers,expressmail,temporaryhelp,datashredding
services,securityguardservices,generallaboratorysupplies
Preferred/SuggestedVendors
TheselectionprocessgenerallyinvolvesanRFP,usuallywithinputfromagroupofinterested
stakeholders.
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AUniversitycontractisdevelopedincollaborationwiththeOGC.
Often,thecommodityareasaddressedaremorespecializedandactionmaybeinitiatedbyrequestfrom
usergroups.
Theopportunityforsavingbyleveragingexpendituresmaynotbeasstrongaswiththevendorpartner
groupsinceUniversitywideexpendituresaretypicallyless.
TheStrategicProcurementteammaintainscontactwiththevendortoobtainselectedreporting
informationandtoassuretherelationshipcontinuestodelivervalue.
Examplesinclude:labcoatlaundryservices,coffeeservices,movingservices,liquidhelium
HarvardPricingVendors
StrategicProcurementactivelyinitiatesnegotiationswiththevendor.
Thegoalistoachievemostfavoredcustomerpricing,inpart,basedonUniversitywideexpenditures.
PricingisconsistentandUniversitywide,underthesameconditionsofsale.
VendorsthatparticipateinGPOs[GroupPurchasingOrganizations](e.g.theMassachusettsHigher
EducationConsortium)mayextendspecialpricingtoHarvardbasedonthevolumeparticipationofallthe
GPOsmembers,includingHarvard(e.g.WhalensMovingisaconsortiumbasedpriceagreement).
Thisgroupofvendorsmaybeusedtofillspecificorproprietaryneeds,areroutinelyusedbytheHarvard
community,andtheoptionsforshiftingspendtoacompetitivesuppliermaybelimited.
Examplesinclude:laboratorysupplierssupportingresearch,internationalcourierservices,medicalwaste
disposal
Forthefulllistofthenearly200vendorswithwhichtheUniversitycurrentlyhascontractualagreements,aswell
astheeffectivedates,contracttype,andpaymentterms,seetheStrategicProcurementiSite.Thespreadsheet
alsonotesthe20vendorscurrentlyofferingearlypaymenttermdiscountstotheUniversity.
IfyourunitregularlydoesbusinesswithavendorthatitnotincludedonthecurrentUniversitywidevendor
contractlist,andyouwouldliketheOfficeofStrategicProcurementtoconsideraddingthisvendortothelist
and/ortotheHCOMsystem,pleasecontacttheProcurementofficeatprocurement@harvard.edu.
Minority/WomanOwnedVendors
SeeMinorityandWomenOwnedBusinessEnterpriseProgram
Incaseswhereminority/womenownedsupplierisavailabletomeetatargetedneed,Strategic
ProcurementmayworkwiththevendortodevelopaprogramspecifictoHarvardandhighlightittothe
Universitycommunity.
Examplesinclude:pipettecalibrationservices,courierservices,remanufacturedtoner
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HCOMANDHARVARDPARTNER,PREFERRED&HARVARDPRICINGVENDORS
ManyofthevendorsincludedintheabovecategoriesarefoundintheHCOMMarketplace.TheMarketplace
providesaccesstothesevendorswithpreestablished,preferredHarvardpricingforgoodsandservices.Harvard
staffcaneasilyselectitemsfromthesevendors,placethemintheelectronicShoppingCart,checkoutthecartand
createarequisitionforpurchase.HCOMautomaticallygeneratesapurchaseorderuponrequisitionapproval,
whichisthenautomaticallytransmittedtothevendorforfulfillment.InvoicesaredirectedtoUniversityFinancial
Services.OnceastaffmemberconfirmsreceiptoftheitemsinHCOM,theinvoiceismatchedifcorrectandpaidby
centralUFS.HCOMsavesyouandHarvardtimeandmoneywithastreamlinedprocuretopayprocess,introduces
systemiccontrolstoensureaccuracyofpayments,andprovidesaneasywaytotakefulladvantageofthe
agreementsnegotiatedbetweenStrategicProcurementandvendorpartners,preferredvendorsandHarvard
pricingvendors.
ForinstructiononhowtoshopwithvendorsintheHCOMMarketplace,seeEureka,HarvardsLearning
ManagementSystem.OnceatEureka,selectFinancials,thenHCOM.
MINORITY- AND WOMEN-OWNED BUSINESS ENTERPRISE PROGRAM
Historically,HarvardhaschampionedtheprincipleofEqualOpportunity.TheUniversitycontinuestomakeefforts
topromotediversitythroughoutthestudentandemployeepopulationsaswellasincreasethelevelof
participationbyminorityandwomenownedbusinessenterprises(MWBEs)intheUniversitysprocurement
process.Harvardseekstocreateaclimatethatencouragesminorityandwomenownedbusinessenterprisesto
competeforUniversitybusiness,anditstrivestoeliminatepotentialobstaclestoMWBEparticipationinUniversity
purchasingactivities.
MembersoftheHarvardcommunitywithpurchasingresponsibilitiesshouldcreateaclimatethatencourages
minorityandwomenownedbusinessenterprisestocompeteforUniversitybusiness,includingworkingto
eliminatebarriersthatmightimpedetheirparticipationinUniversitypurchasingactivities.
TheHarvardUniversityStrategicProcurementDepartmentsupportsHarvardsMinorityandWomenOwned
BusinessEnterpriseProgramby:
Establishingminorityandwomenownedbusinessengagementgoalsforeachmajorcommoditygroupand
eachcontractmanager
MaintainingvendorMWBEstatusandcertificationrecords
IncludingMWBEstatusconsiderationsinsourcingtemplates
ProvidingoutreachandeducationaleventsforMWBEfirms
IdentifyingqualifiedMWBEsfortheUniversitycommunity,andby
ParticipatinginlocalandregionalMWBEvendorfairs
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Additionally,HarvardUniversitymaintainsitscommitmenttotheminoritybusinesscommunitythroughits
associationwiththeGreaterNewEnglandMinoritySupplierDevelopmentCouncil(GNEMSDC).
BuyersinterestedinlearningmoreabouttheMinorityandWomenOwnedBusinessEnterpriseProgramshould
contactStrategicProcurementat6174954441.
HCOMANDWOMENANDMINORITYOWNEDBUSINESSES
HCOMprovidesaneasywaytoidentifyitemspurchasedfromawomanorminorityownedbusiness.Vendors
meetingthesecriteriawillhavetheseicons:
,forsmallbusinessorwomanowedbusinesses,respectively.
Thismayassistwiththepurchasingprocess,particularlyifsponsoredpurchaseshavecompliancerequirements.
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SECTIONIII:PURCHASINGPROCEDURES
NON-HCOM PURCHASE ORDERS
Thepurchaseorderistheacceptedbusinessstandardfortransmittingorderinginformationtoasupplier.The
purchaseordercanbeusedfortrackingpurchases,forprovidingarecordoftheorder,forcheckingtheprice
quotedbythevendorwiththepriceontheinvoice,andforcomparingitemsoriginallyorderedwithitemsreceived
andinvoiced.
ThereareanumberofpurchaseorderformscurrentlyinuseatHarvard.Somedepartmentshavedeveloped
purchaseorderformsspecificallyfortheirstandalonepurchasingsystems.Specificschoolsanddepartments
determinehowandwhenpurchaseordersareused.
NotethatintheHCOMMarketplace,orderfieldsareautomaticallypopulatedwithallnecessarypurchase
orderinformationwhenauserplacesanorder.Requireddeliverydateandtheshiptoaddresscanbe
editedbythepurchaser.
Purchaseordersgenerallycontainthefollowinginformation:
POForm(clickheretoviewatemplate);foranexampleofanHCOMPurchaseOrder,pleaseseeEureka:select
Financials,thenHCOM.
1.PurchaseOrderDate
Thedatetheorderisplacedwiththevendor.
2.PurchaseOrderNumber
Thepurchaseorderformmayreferenceapurchaseordernumber.Apurchaseordernumberistheonereference
pointcommontotherequisitioner,departmentalpurchasing,andthevendor,andisaneffectivetoolfortracking
thepurchasefromtheorderingthroughpaymentprocesses.
3.RequiredDeliveryDate
Beasspecificaspossible.AvoidusingASAP,UrgentorImmediately.Theseinstructionsleavetheactualdelivery
dateuptothevendor.
4.SupplierNameandAddress
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Includethesupplierscompleteaddressandthenameofthepersonwithwhomtheorderwasplaced,ifpossible.
Thisinformationishelpfuliftheorderneedstobechangedorifadditionalfollowupisrequired.
5.ShiptoAddress
Providethevendorwithacompleteaddress.Includetheschoolorfaculty,streetandcityaddress,department
and/orsubdepartment,laboratory,roomnumber,andthenameofthepersonreceivingtheorder.
6.BilltoAddress
IfthevendorissendingtheinvoicetothesameaddressastheShipToaddresswrite"sameasShipTo"inthespace
providedforthebillingaddress.Ifthebillingaddressisdifferent,providethevendorwiththecompleteaddress,
includingthenameofthepersontowhomthebillshouldbesent.
7.PaymentTerms
Net30isstandard(payment30daysfromtheinvoicedate).Othertermsmayapply.
8.F.O.B.(FreightonBoard)Point
Thisisthepointintimeatwhichthecustomer(Harvard)legallyownsthemerchandise.Basically,therearetwo
F.O.B.options:DestinationandOrigin(alsoreferredtoasShipPoint).AlwaystrytonegotiateF.O.B.Destination
(theHarvardoffice,lab,receivingdock,etc.),especiallyifthemerchandiseisfragileand/orexpensive.Iftheitemis
damagedintransit,thevendorisresponsiblefortheconditionofthemerchandiseandmustinitiateanydamage
claims.
IftheF.O.B.PointisOriginorShipPoint,thecustomer(Harvard)ownsthemerchandisewhenitleavesthe
vendor'splantorwarehouseandisresponsibleforfilingadamageclaimagainstthecarrier.ContactHarvard's
InsuranceDepartment(4958668)toobtainadequatetransitinsuranceorrequestitfromthevendor.
Deliverychargesandmethodofpayment(FreightTerms)shouldbedeterminedwhentheorderisplaced.The
vendormaypaytransportationandinsurancedirectlytothecarrierandthenitemizethesechargesonyour
invoice(PrePayandAdd).
9.Harvard33DigitCode/ContractorGrantNumber(HCOMA)
Therecordofthisnumberonthepurchaseorderformmayassistindepartmentrecordkeeping.
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10.BodyofthePurchaseOrder
Specifyexactquantity,cataloguenumber,description,andprice.Arecordofthequotedpriceishelpfulfor
comparisonwiththeinvoice.
Theordershouldbedescribedinasmuchdetailasspacepermits.Forexample,insidedeliveryandinstallation
informationshouldbefoundhere,particularlyiffurnitureoralargepieceofequipmentisbeingdeliveredand
installed.Ifdeliveryandinstallationhavenotbeenarrangedwiththevendorbeforehand,theequipmentor
furnituremaybedeliveredonlyasfarasareceivingdockorthestepsofthebuilding.Besuretomeasure
elevators/doorwaysforaccessibility.Rentingacranetohoisttheequipmentorfurniturethroughthewindowcan
substantiallyincreasethecostoftheitem.
NotestoSuppliercanalsobeusedforthispurposeortospecifyanyotheradditionalinformationthatwouldbe
helpfulforthevendortoeffectivelyprocesstheorder.Forexample,ContactBuyer24hourspriortodeliveryat
thenumberlistedabovecouldbeincludedintheNotestoSupplierfield.
11.Other
HarvardUniversitystandardpurchaseordertermsandconditionsandtaxexemptioncertificatescanbefoundat
theStrategicProcurementwebsite.
PurchasesmadewithFederalfundsrequirevendorstoadheretoadditionalrequirementsEEOandCivilRights,
fairwagestandards,antikickbackanddebarmentregulations,etc.AttachmentAliststhesetermsandconditions
andshouldbeincludedwiththestandardpurchaseordertermsandconditionsforfederallyfundedpurchases.
12.Confirming/OriginalOrders(paperpurchaseorders,only)
Toavoidduplicateshipments,apurchaseordershouldindicatewhethertheorderisconfirming(theorderhas
alreadybeenplacedwiththevendorbyphone,byfaxorinpersonorbyothermeans)ortheorderisoriginal(the
purchaseorderistheonlyvehicleusedtotransmittheordertothevendor).
PURCHASE ORDER GUIDELINES
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Alldepartmentsareresponsibleformanagingtheirownprocurementrecords.Departmentsareresponsiblefor
reviewingthecontentoftheirpurchaseorders,correctlycommunicatingtheorderstothevendorsand
maintainingsystemsthatcomplywithFederalprocurementregulations.
Apurchaseorderisacontractbetweenyou(Harvard)andthevendor.TheStatuteofLimitationsoncontractscan
beaslongasSIXyears.Departmentsshouldmakearrangementstomaintainapurchaseorderhistory
electronically,onfiche,orbyfilinghardcopiesoftheordersforaperiodofsevenyears.(Theextrayearensures
thatthedocumentisretainedforsixcalendaryearsafterthedateofthedocument).Purchaseordersshouldbe
destroyedaftersevenyearsunless:
a.theyarethesubjectofadisputeorlitigation,or
b.theyarethesubjectofanauditbytheIRSorothergovernmentalagency.
Youmaywanttoconsiderprovidingacopyofthepurchaseordertothevendorif:
Theorderisanoriginalorder(hasnotbeenphonedorfaxedtothevendor)
Thepurchaseorderisforcapitalequipment
Thepurchaseorderisablanketorstandingorder
Thevendorortherequisitionerhasrequesteditbemailed
Notethatusingapurchaseorderformorpurchaseordernumbertoprocessordersisatthediscretionof
theusingdepartment.
HCOMREQUISITIONSANDPURCHASEORDERS
HCOMcreatesrequisitionswhentheusersubmitsaShoppingCartwithgoodsandservicesandgeneratesaPO(or
PaymentRequest)whenthepurchasesareapprovedbyoneormoreindividualswithappropriateauthorization.
TherearethreedifferenttypesofHCOMRequisitions:
1.MarketplaceOrder(alsoknownasaPunchoutRequestoraCatalogRequest):AMarketplaceorderis
placedwithoneofHarvardsvendorsdirectlyintheHCOMMarketplace.Whenausershopsforitemsfroma
Marketplacevendor,theuseridentifiesthequantityofitemsneededandsubmitstheitemstoaShoppingCart.The
userthenchecksoutthecartinHCOM,andarequisitioniscreated.Dependingontheamountandtypeoforder,
therequisitionmayrequirenoapproval,oritmayrequiremanylevelsofapproval.Oncetherequisitionhas
receivedallrequiredapprovals,apurchaseorderisautomaticallygeneratedandtransmittedelectronicallytothe
vendorforfulfillment.
2.NonCatalogRequest:ANonCatalogRequestiscreatedwhenagood,serviceorrequiredsupplieris
unavailableintheMarketplace.ANonCatalogRequestcanbecreatedforaonetimeorderofgoodsorservices,as
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wellasforaRecurringOrder(seetheHCOMStandingOrdersectionbelowformoreinformation).Whenusinga
NonCatalogRequest,thelocalunittakesallresponsibilityforresearchingpricing,itemdetailsandobtainingthe
quotefromthevendorpriortocreatingaNonCatalogRequest.
WhencreatingaNonCatalogRequest,theItemDescriptionismanuallyinputintoHCOMbytheschool/unit
creatingtherequest.TheItemDescription(s)shouldcorrespondwiththequotereceivedfromtheVendor
ascloselyaspossible,sothePurchaseOrderwillmatchtheinvoicewhenitisreceivedbyUniversity
FinancialServices.Failuretoinputthisinformationaccuratelywillresultindelayinprocessingtheinvoice.
Whentherequisitionhasreceivedallrequiredapprovals,thepurchaseorderisgenerated.Thestaffmemberis
responsibleforcalling,faxing,mailingoremailingthisordertothevendor.
Foraonetimeorderforgoods,thestaffmembercancall,fax,mailoremailtheorder.Theinvoice
remittoaddresswillbeUniversityFinancialServices.
Foraonetimeorderforservices(orforanHCOMRecurringOrder),thestaffmembermustchange
theremittoaddressfromUniversityFinancialServicestothatofthelocalunit.Thelocalunitwill
reviewtheinvoiceforaccuracy,receivetheorderinthesystem,andthenforwardtheinvoiceto
UniversityFinancialServicesforpayment.
3.PaymentRequest:APaymentrequestiscreatedwhenthereisaneedtoinitiateapaymenttononHarvard
employeesorforcertainadministrativetransactionssuchasbankandwiredrafts.SeetheProcurementMatrixfor
examplesofthetypesoftransactionsthatshouldbeusedwithaPaymentRequest.Theuserwillhaveaccesstothe
invoiceorotherappropriatedocumentation,andwillcreatethePaymentRequestinHCOM.Theuserwillthen
forwardthedocumentationthroughtheHCOMapprovalprocess,andoncethefinalapprovalhasbeenreceived,
sendtheinvoicewiththePaymentRequestnumberclearlynotedonit,andallotherappropriatedocumentationto
UniversityFinancialServicesforpayment.
HCOMREQUISITIONANDPURCHASEORDERGUIDELINES
Inadditiontothegeneralguidelineslistedabove,thereisaseriesofHCOMFoundationalPracticesthatapplywhen
creatingarequisitionandmanagingthesubsequentpurchaseordercreateduponapproval.Thesepracticesare
listedthroughoutthisdocument;seetheHCOMiSiteforthestandaloneFoundationalPracticesdocument.
HCOMFOUNDATIONALPRACTICESCREATINGREQUISITIONS
1.1BusinessPurpose
Theshoppersandapproversareresponsibleforensuringthattheappropriatelevelofdetailisprovidedinthe
designatedfieldsinHCOMtosupportavalidbusinesspurpose.
1.2HighRiskConfidentialInformation(HRCI)
ShoppersandapproversshouldnotattachdocumentsthatcontainHRCIdataorenterHRCIdatainfreeformtext
fields.PleasenotethatUniversityFinancialServicesdoesnotpreauditinvoicesforconfidentialinformation.Ifa
vendorinvoicemaycontainconfidentialdata,Shoppersshouldnotifythevendortomailtheinvoicetothelocal
unit.ShoppersshouldthenremoveanyconfidentialdatabeforeforwardingtheinvoicetoUFS.
1.3PaymentRequest
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Paymentrequestmaybesubmittedfordirectpaymenttononemployeesandotherdirectpaymentsthatcannotbe
madeusingthePCard(Seebelow).ShoppersandApproversareresponsibleforensuringthatapaymentrequestis
theappropriatepaymentmethodasdefinedinthepurchasingmatrix,priortoinitiatingandapprovingthe
transaction.
1.4PCard&CorporateCard
TheUniversitysPCardisissuedtoemployeesattherequestoftubsandlocalunitsinaccordancewiththe
UniversitysPCardpolicy.Theintentofthecardistostreamlinethepurchaseofandpaymentforcertain
commoditiesbyreducingdisbursementsofpettycash,paymentrequests,employeereimbursementsandthe
processingcostsassociatedwiththesetransactions.
TheUniversitysPCardandCorporatecardshouldnotbeusedtotransactwithvendorsenabledwithintheHCOM
Marketplace.Foracomplete,currentlistofenabledvendors,whileintheMarketplaceonthemainShoppage,click
onthelinkmarkedBrowse:Suppliers.
1.5AfterthefactPurchaseOrder
Toensureconsistentuseofpurchaseordersandappropriatecontrols,AftertheFactpurchaseordersarenot
allowed.AftertheFactpurchaseordersarethosedefinedaspurchaseorderscreateduponreceiptoftheinvoice.
ImplementationofHCOMrequiresapurchaseorderbecreatedforallgoodsandservicesexceptthosepayments
thatareappropriateforprocessingviathePaymentRequest.Purchaseordersshouldnotbecreatedatthetime
theinvoiceisreceived.
APPROVINGREQUISITIONS
2.1SelfApprovalThreshold
Selfapprovalispermittedupto$2,499.99fornonsponsoredpurchases.Thelocalunithasthediscretiontosetthe
thresholdto$0forApprovers.Accordingtosponsoredguidelines,selfapprovalofsponsoredpurchases,
regardlessofamount,isnotallowed.
2.2ApprovalThresholds
UniversityapprovalthresholdsaredefinedbytheOfficeoftheController.Schoolfinancialofficesareresponsible
forassigningapprovalthresholdstoindividuals.Theshopperisresponsibleforselectingtheappropriate
approver(s).Allpurchasesgreaterthan250kwillrequireapprovalbytheOfficeoftheController.
2.3DelegationofApprovalAuthority
Approvershavetheabilitytosystemicallydelegatetheirapprovalauthoritytoanappropriateresourceintheir
absence(VacationRule)ortosharetheworkload(SharedWorklist).Theinitialapproverisaccountablefor
delegatingapprovalauthoritytotheappropriateindividual,andforthedecisionsmadebytheirdelegate.
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MAINTAININGPURCHASEORDERS
3.1POEdit,Close,andCancel
WhoCanEdit,Close,andCancelPurchaseOrders?
POEditandCancelisaCentralSystemAdministrationonlyfunctionandisnotavailabletoSchoolsor
departments.Aprocesshasbeendevelopedtoexpediterequestsforanychangesordeletionsofpurchase
orders.ChangescanbemadethroughtheUISHelpDeskbycalling4962001oremailat
uis_helpdesk@harvard.edu.
WhatTypesofPOEditsarenotallowed?
AccountCodingChangesarenotallowedafterarequisitionhasbeenapprovedandaPOhasbeen
generated.ChangesshouldbemadebyprocessingajournalentrythroughtheGLandtheinvoicenumber
shouldbeincludedinthedescription.ForSponsoredFunds,theCostTransferPolicy(CTP)willapplyto
transactionsthathavebeenpostedtothegeneralledger.
POEditisnotpermittedforMarketplaceorders,buttheseorderscanstillbeClosedorCanceled.When
electronicinvoicingisavailableinHCOM,POEditswillnotbeallowedforHCOMMarketplaceorders.
STANDING PURCHASE ORDERS (NOT PART OF HCOM)
Fromtimetotime,buyerswillusestandingorblanketpurchaseordersforcommoditiessuchasofficeor
laboratorysupplies.Somebuyersfeelthesetermsareinterchangeable.However,thesetypesofpurchaseorders
are,infact,different.
AStandingOrderisusedwhenthebuyerandthevendorhaveagreedon:
afixedprice
specificgoods
specificdeliveryschedule
Forexample,thevendorwilldeliverthreecasesofcopypaper,at$30percase,totheBiologyDepartmentevery
Wednesday,effectiveJuly1,2010June30,2011.Thedeliveryshouldoccurautomatically,oncetheorderis
placed.AStandingOrderusuallycoversaperiodofoneyear.Attheendoftheyear,anewpurchaseordernumber
shouldbeobtainedandanewpurchaseordergenerated.Ifunusedfundsremainontheoldpurchaseorder,it
shouldbeClosed.
HCOMRECURRINGORDER
TherearedifferencesbetweentheStandingOrderdefinitionaboveandwhatisconsideredinHCOMtobea
RecurringOrder.AnHCOMRecurringOrderisasingleormultilinePurchaseOrdercreatedbyFacilitiesand/ora
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FinancialManagerforprenegotiatedserviceswherepaymentsaremadethroughoutthefiscalyearagainstastatic
accountcode.ThismeansthatinHCOM:
RecurringOrdersaresentforservicesonly
Whilemorethanone33digitnumbercanbeusedtocreatetheStandingOrder,theaccountcodingcannot
changewhileinvoicesarereceivedagainsttheorder
TheRecurringOrdershouldnotbeplacedforlongerthanasinglefiscalyear
InHCOM,aRecurringOrderiscreatedviaaNonCatalogRequest.AswithallNonCatalogRequests;
Theschool/unitisresponsibleforresearchingpricing,itemdetailsandobtainingthequotefromthe
vendorpriortocreatingaNonCatalogRequest.SeethesectiononAdvancedPurchasingPracticesinthis
manualforsomehelpfulinformationconcerningthistopic.
InaNonCatalogRequest,theItemDescriptionismanuallyinputintoHCOMbytheschool/unitcreating
therequest.ItisimperativethattheItemDescription(s)matchthequotereceivedfromtheVendoras
closeaspossible,sothePurchaseOrderwillbematchedtotheinvoicewhentheinvoiceisreceivedby
UniversityFinancialServices.FailuretoinputthisinformationaccuratelywillresultinanInvoiceHold.
BLANKETPURCHASEORDERS(NOTINHCOM)
ABlanketOrderisusedwhenthebuyerknowshewillbeorderingavarietyofitems,buthasnotdetermined
specificquantitiesordeliverydatesatthetimetheorderiscreated.Theordershouldinclude:
adescriptionorcataloguenumberoftheitemsthebuyeranticipatesordering
thepriceorpercentageofdiscountthebuyerandvendoragreeupon
estimatedquantities,ifpossible
effectivedatesoftheorder
Thebuyershouldincludea"nottoexceed"dollarvalueforindividualorderreleasesandthetotalamountofthe
purchaseorder.Theorderisdeliveredonrequestandthebuyershouldprovidethevendorwithalistofpeople
authorizedtorequestdeliveries.ABlanketOrderusuallyextendsforaperiodofoneyear.Attheendoftheyear,a
newpurchaseordernumbershouldbeobtainedandanewpurchaseordergenerated.
Atthistime,BlanketOrdersarecurrentlynotpermittedinHCOM.
INVOICE PROCESSING (NOT IN HCOM)
1. WhenusingasystemotherthanHCOM(seeinformationbelow),informationoninvoiceprocessingcanbe
locatedonABLEathttp://able.harvard.edu.
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2. Departmentsandfacultiesareresponsibleforprocessingtheirowninvoices.Itisimportantto
communicateacompletebillingaddresstothevendoratthetimetheorderisplacedeitherviaapurchase
order,telephone,orfax.StrategicProcurementshouldnotbeusedasa"Billto"address.
3. Alldepartmentsareurgedtopaytheirinvoicespromptly.Delayingpaymenttoavendorcanresultinthe
vendorplacingtheUniversityoncredithold.EventuallytheUniversitywillpayhigherpricestooffset
thevendor'scollectioncosts.
4. InvoicesshouldbesentbythedepartmentstoUniversityFinancialServices(1033MassachusettsAvenue,
Cambridge,MA02138)forprocessing,nottoStrategicProcurement.
INVOICEPROCESSINGINHCOM
1. ForHCOMMarketplaceorders,thepurchaseorderisautomaticallygeneratedandtransmittedtothe
vendor(excludesnoncatalog).TheinvoicewilldesignateaspecificUniversityFinancialServicesPOBox
astheremittoaddress.ThevendorwillsendtheinvoicesdirectlytoUFS(excludingservices,as
mentionedpreviously).OnceastaffmemberacknowledgesthereceiptofgoodsinHCOM(ifrequired),UFS
willpaytheinvoice.Notethatoncertain,nonsponsoredpurchasesoflessthan$2500,receivingisnot
requiredinHCOM.Insuchcases,theinvoicewillbepaidbyUFSuponreceiptandmatchtothePO.
2. InthecaseofanHCOMNonCatalogOrder,thestaffmembercreatestheRequisitionandthePurchase
Orderisgenerateduponapproval.ThestaffmemberisthenrequiredtosendthePurchaseOrderdirectly
tothevendor,eitherbyphone,emailorfax.
a. Incaseofaonetimeorderforgoods,thevendorwillsendtheinvoicedirectlytoUniversity
FinancialServicesasindicatedintheBillTosectionofthePurchaseOrder.
b. InthecaseofaonetimeorderforservicesorforanHCOMRecurringOrder,theshoppermust
instructthevendortosendtheinvoicedirectlytothelocalunit.Thelocalunitwillreviewthe
invoice,completereceiving,andforwardittoUniversityFinancialServicesforprocessing.
3. InthecaseofaPaymentRequest,thelocalunitwillalreadyhaveaccesstoaninvoiceand/orother
appropriatedocumentation.OncethePaymentRequesthasbeenprocessedandapprovedinHCOM,the
userwillclearlystatethePaymentrequestnumberontheinvoiceandforwardtheinvoiceandall
supportingdocumentation(containingnoconfidentialdata)toUniversityFinancialServicesforprocessing.
INVOICEHOLDRESOLUTIONPROCESS
WhenaninvoiceisreceivedatUFSandenteredintoOracle,thesystemattemptstovalidatetheinvoicefor
payment.Inordertovalidate,eachlineitemmustsuccessfullypassathreewaymatchbetweenpurchaseorder,
invoiceandreceiving(ifrequired).
Whenoneormorelineitemscannotbevalidated,thesystemplacestheentireinvoiceinholdstatusandpayment
iswithheld.UniversityFinancialServicestheninitiatesaholdresolutionprocess,outreachingtotheshopperor
finalapproverofthepurchaseorderinordertoresolvetheholdandprocesspaymenttimelyandaccurately.
TypesofHolds:
1. Receiving:AninvoicearrivesinCentralAPandisprocessed,butelectronicreceiptforoneormoreinvoice
lineitemsisnotyetcomplete.
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2. QuantityOrdered:Aninvoicebillsforalineitematahigherquantitythenthequantityorderedor
receivedonthepurchaseorder.
3. Price(MaxTolerance):Aninvoicebillsforalineitematanamountoverthepricingtoleranceestablished
byFinancialAdministrationsOfficeoftheController.Pricingoverageswithinthetolerancearenotplaced
onhold.ForHCOMMarketplaceorderswithpricingoverages,UFSprocessesaninternaldebitmemoto
reducetheinvoicepaymenttotheguaranteedpricinglistedonthepurchaseorder,whichreleasestheprice
hold.
RolesofUFSandLocalDepartmentsinResolvingHolds:
Whenaninvoiceisplacedonhold,UFSinformsthedepartmentbyemailingaholdnotification.Receivinghold
notificationsareissuedtotheshopper.QuantityBilledandPriceholdnotificationsareissuedtothefinalapprover.
Basedontheholdtype,thedepartmentrespondstotheemailaccordinglytoresolvethehold.Resolutions
typicallyinvolveeithercompletionofthereceivingprocess,agreementtopaythevendorforapriceorquantity
overage,orrefusaltopaythevendorforapriceorquantityoverage.Whenrespondingtoholdnotifications,itis
theresponsibilityofthefinalapprovertoreviewholddetails,outreachtotheShopper,vendor,orothersasneeded
forclarification,andtothenadviseUFSonpaymentinatimelymanner.UniversityFinancialServiceswillattempt
tocontactthedepartmentthreetimestoresolveahold.Afterthreeattempts,holdresolutionwillbeescalatedto
theTUBslocalfinanceoffice.
TAXES AND EXEMPTIONS
1. HarvardUniversityisexemptfromMassachusettsStateSalesTax.Harvard'staxexemptnumberis
E042103580.
2. AvendordoingbusinesswiththeUniversityforthefirsttimewillrequestacopyoftheUniversity's
Massachusettstaxexemptcertificate.VendorsdoingbusinesswiththeUniversityonaregularbasiswill
requestacopyofthisformannuallyfortheirownrecords
3. CopiesoftheMassachusettstaxexemptcertificatecanalsobeobtainedfromStrategicProcurement(495
4441).Thisformcanbecopiedasneeded.
4. Harvard'spurchasesarealsotaxexemptinanumberofotherstates.Departmentspurchasinggoodsor
servicesfromotherstatesforuseinthatstateshouldcontact6174965224toseeiftheUniversityis
exemptfromthesalestaxinthatstate.
5. GoodsandservicespurchasedfromoutofstatevendorsfordeliveryanduseinMassachusettsareexempt
fromsalestaxiftheyareusedintheconductoftheUniversity'sexemptenterprise,i.e.educationand
research.
6. TheUniversityisnotexemptfromtheRoomTaxleviedbyhotels,motelsandinnsinMassachusettsor
anyotherstateorcitychargingroomtax.
7. MassachusettsMealsTax.TheUniversityisexemptfromMassMealsTaxifallofthefollowingconditions
aremet:
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themealsareforstudents,employees,orguestsoftheUniversity,
themealsareusedintheconductoftheUniversity'sexemptenterprise,i.e.educationandresearch,
theUniversityisbilleddirectlybytheoutsidecaterer,restaurant,orhotel,
theUniversitypaystheentirebilldirectly,
noamountispaidbytheconsumersofthemeal,and
thevendortakesfromtheUniversityaproperlycompletedExemptPurchaserCertificate(FormST5),
keepsarecordofthepriceofeachseparatesale,thenameofthepurchaser,thedateofeachseparatesale,
andthenumberoftheUniversity'sExemptPurchaserCertificate.
AcopyofthisformisalsoavailablefromStrategicProcurementat4954441.
Employees,students,andguestswhopurchasemealsthemselvesarenotexempteveniftheyareonUniversity
business.However,UniversityStudentspurchasingmealsinUniversityoperateddiningfacilitiesareexemptfrom
MassMealsTax.Studentsmaybeaskedforevidence(i.e.IDcards)oftheirstudentstatus.
CREDIT APPLICATIONS AND CREDIT AND TRADE REFERENCES
Ifrequestedbythevendor,aCreditApplicationmustbecompletedandsignedbyadepartmentthat
choosestodobusinesswithacompanythatdoesnothavethisinformationonfile.
CreditandTradereferencesprovidesfactsthatcanbeusedtocompletetheseapplications.Insomecases,
thevendorwillacceptthisformwithacopyoftheUniversitysMassachusettssalestaxexemption
certificate(ST2)locatedontheStrategicProcurementhomepageinlieuoftheapplication.
TheUniversitydoesnotauthorizedepartmentstoapplyforandusedepartmentorspecialtystorecharge
cards.
SECTIONIV:GENERALGUIDELINESONPURCHASINGPRACTICES
RECEIVING PURCHASES
Deliveriescanbemadedirectlytotheenduser'soffice,lab,receivingdock,oranyotherlocationspecifiedonthe
purchaseorder.Allpackagingshouldbecarefullyexaminedforanyvisibleevidenceofdamage,particularlyif
thepurchaseisfragileorcostly.Theperson'receiving'thepurchaseshouldmakeanoteofthedatetheorderwas
received,thenameofthevendor,thequantityreceived,andthepurchaseordernumber.Thereceivingand
purchaseorderinformationcanbecheckedagainsttheinvoicetomakesurethatthequantitiesreceivedarethe
sameasthequantitiesbeinginvoiced.
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1.DamagedShipmentsandShortages
UnderInterstateCommerceCommissionregulations,damagedshipmentscannotberefusedunlesstotally
destroyedorunlessthebrokencontentswouldcausecontamination.Iftheshipmentisrefused,thevendoror
shippercoulddisposeoftheshipment,makingitverydifficultforthebuyerorendusertoinitiateasuccessful
claim.Anydamagetothepackage,nomatterhowslight,shouldbenotedonthecarrier'sandreceiver'sdelivery
receipt.Iftheshipperisunwillingtowaitwhilethecontentsofthepackageareinspected,thereceivershouldnote
onthedeliveryreceiptthattheconditionofthecontentsisunknown.Ifconcealeddamageisdiscoveredduring
unpacking,stopunpacking,notifytheshipper,andrequestanimmediateinspection.Savedamagedpackagingand
cartonsfortheshipper'sclaimsinspectorand,ifpossible,photographthedamagedshipment.
2.InitiatingaClaim
Theshipper'smainofficeshouldbenotifiedinwritingwithin15daysofreceiptofthedamagedmerchandise.The
formalclaimlettershould:
describethedamage
givethedatetheshipmentwasreceived
includeacopyofthedeliveryreceiptwiththeshipper'ssignatureandthereceiver'sdescriptionofthe
damage
providethenameofthevendor
includeawrittenestimatefromthevendorofthecoststoreplaceorrepairthedamageditems
provideacopyofthevendor'soriginalinvoice
providecopiesofallcorrespondencepertainingtotheclaim
TheInterstateCommerceCommissionrequirestheshippertoacknowledgetheclaimwithin30daysandtooffera
settlementwithin120days.WhentermsareF.O.B.Destination,thebuyerorendusershouldnotifythevendor
immediatelysothatthevendorcanfileaclaim.
3.ReturningGoodstotheVendor
Goodsshouldnotbereturnedwithoutfirstnotifyingthevendor.Somevendorsrequirethebuyertoobtaina
returnauthorizationnumberandhaveproceduresastohowandwhenareturnshipmentshouldbemade.Some
vendorsmayalsochargearestockingfeetooffsetthecostofreturningtheitemtoinventory.Thebuyerorend
usershouldkeeparecordofthenameoftheindividualauthorizingthereturn,theauthorizationnumberanddate,
notesofanyconversationswiththevendorauthorizingthereturn,thedatetheshipmentwasreturned,thename
ofthecarrier,andthevendor'scompleteaddressandthenameoftheindividualreceivingthereturnedgoods.If
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theitembeingreturnedisexpensiveorfragile,itshouldbeinsured.ContacttheHarvardUniversityInsurance
Department(4958668)foradequateinsurance.
RECEIVINGINHCOM
HCOMprovidesawaytoelectronicallyacknowledgereceiptofgoodsandservicesinthesystem.Electronic
receivingallowsadepartmentto:
Providepaymentcontrolbyensuringvendorpaymentsareissuedonlyafterthedepartmenthasphysically
receivedtheitem.
ProvideanaudittrailofthereceiptsenteredinHCOM(theelectronicHCOMreceiptandassociatedhistory
(e.g.,amountreceived,receiptdate)isanacceptableformofproofofreceiptinthecaseofanaudit).
ImprovetheprocessofreceivingcreditforitemsthatneedtobereturnedtoSuppliers.
Storeasmuchinformationaspossibleonallyourpurchaseswithinasinglelocation.
Receiversshouldfollowtheappropriatebusinesspracticefortheirtubasitrelatestoenteringreceiptinformation
inHCOM.Forexample,whileHCOMdoesnotrequirepackingslipinformationtobeenteredalongwithreceipt
information,localbusinessprocessmaydictateenteringthisinformationatthetimeofgoodsreceipt.
FormoreinformationonhowtoreceiveinHCOM,pleaseseeEureka;selectFinancials,thenHCOM.
HCOMFOUNDATIONALPRACTICESRECEIVING
4.Receiving
ReceivingforNonSponsoredFundsReceiptacknowledgementinHCOMisrequiredforallnonsponsored
PurchaseOrdersover$2,499.99oncereceiptofthegoodorserviceisconfirmed.Invoiceswillnotbepaidforthese
ordersuntilreceivingiscompletedinHCOM.
ReceivingforSponsoredFunds(fundrange10000002999999)ReceiptacknowledgementinHCOMis
requiredforallsponsoredPOsoncereceiptofthegoodorserviceisconfirmed.Invoiceswillnotbepaidforthese
sponsoredfundordersuntilreceivingiscompletedinHCOM.
ReceiptacknowledgementinHCOMshouldoccuratthetimeofphysicalreceiptofpurchasedgoods,or
receiptofinvoiceforservices.
MANAGING VENDOR RELATIONSHIPS

1. Maintaininggoodrelationswithavendorshouldbeasimportanttoabuyerasgettingthebestprice.A
goodbuyersellerrelationshipisapartnership,awinwinsituationoverthelongrun.Avendorwhois
treatedwithcourtesy,honesty,andfairnesswilldeliveraqualityproductatthebestprice,will
providegoodservice,andwillberesponsivetoemergencysituationsandspecialrequests.A
responsivevendormakesabuyer'lookgood'.
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2. Thereisalsoapublicrelationsaspecttopurchasingthatshouldnotbeoverlooked.Anorganization'spublic
imagecanbeavaluableasset.Avendorwhoistreatedequitablyandprofessionallyislikelyto
communicatehispositiveexperienceswithyourorganizationtohisassociates.
3. GuidelinesforSuccessfulVendorRelationships:
UseestablishedvendorpartnershipstobestleveragethecollectiveUniversityvolume,toconsolidate
orders,andtoreduceadministrativeprocessingcosts.Youwillreceiveoutstandingpricesand
excellentservice.
Befair.Giveallqualifiedvendorsanequalopportunitytocompeteforbusiness.
Maintainintegrity.Avendor'spricingisconfidentialandshouldneverbesharedwithanothervendor
foranyreason.
Behonest.Neverinflaterequirementstoobtainbetterpricing.Negotiateingoodfaith.Don'tchange
therequirementsandexpectthevendortoholdhispricing.
Beethical.Procurementdecisionsshouldbemadeobjectively,freefromanypersonalconsiderations
orbenefits.
Becourteous.Abuyershouldmakeanefforttoreceivesalespersonstotheextentthathisorher
workschedulepermits.
Bereasonable.Avendorisentitledtoafairprofit.
Paypromptly.Thepurchaseorderyouissuetothevendorisyourpromisetopayforgoodsand
servicesinatimelymanner(usuallywithin30daysoftheinvoicedate).Whenvendorsexpend
additionalresourcesfordebtcollection,itbecomesmoreexpensivetodobusinesswithHarvardand
thisisreflectedinhigherpricesandlowerservicelevelsforall.
HOW TO MANAGE A VENDOR ISSUE
Suggestedguidelinesforresolvingequipmentfailureissueswithavendor:
Draftalettertothevendorondepartmentletterhead.
Providespecificinformationontheoriginalpurchasedateofpurchase,POnumber,amountofpurchase,
departmentaccountnumberwithvendor,modelnumberanddescription,invoicenumber,etc.
Mentionanyapplicablewarranty.
Indicatethattheinstrumentorotheritemhasnotperformedtospecificationandoutlinethestepsyou
havetakentogetitworkingproperly.Emphasizetheamountoftimespentandimpactonongoing
operations.Beasspecificaspossiblewithservicedates,problems,outcomesetc.
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Recapanypromisesmadepriortothepurchaseregardingmodificationstotheinstrumentsfunctionality.
Whenandbywhomthesecommitmentsweremadewouldalsobeimportant.Anythingyouhaveinwriting,
oranyactionsyouknowthevendorhastakenonyourbehalf,mayservetostrengthenyourposition.
Discusswhatyouwillacceptasasatisfactoryresolutiontotheproblem,beitarefund,replacementor
other.(Unlessotherwisenegotiated,youralternativesforthisareoftenfoundinthevendortermsand
conditionsgenerallyfoundonthereversesideofthevendorquotationyoumaywanttolookattheseand
seewhatthevendorbelievesyouareentitledto).
YoumaybeabletoleveragetheUniversitysspend,supportingtheargumentthatHarvardisagoodand
importantcustomer.ContactStrategicProcurementforinformationonHarvardannualexpendituresfor
thesupplierinquestion.
Setadate.Indicatethatyouarehopefulthatthevendorwillcontactyou(providenameandphone/email)
bythisdateinordertoworkoutamutuallyagreeableresolutiontothisproblem.However,ifthisdoesnot
occur,tellthemyouplantoforwardtheinformationtoHarvardsOfficeoftheGeneralCounselforpossible
furtheraction.(Ifthisbecomesnecessaryandthedollarvalueofthepotentiallossissubstantial,collectall
youhaveonthepurchaseandinvolvetheOGC).
Ifyouhavealreadybeenincontactwiththelocalsalesrepresentative(nottheservicepersonnel)and
he/shehasnotofferedtomakeadequaterestitution,youcandirectthelettertotheregionalVicePresident
ofSalesorthehighestrankingcompanyofficeryoucanidentify.
Sendtheletterregisteredmail,returnreceiptrequested,andCCtheDirectorofStrategicProcurement.
SECTIONV:ADVANCEDPURCHASINGPRACTICES
HOW TO SELECT QUALIFIED VENDORS
Vendorselectionandevaluationisaprocessthatcantakesometimeandenergydependingontheproductor
service,butiswellworththeeffortwhenthevendorchoseniscompetitivelypricedandresponsivetothe
needsoftheUniversity.
1. Thefirststepinselectingvendorsisoftenresearch,particularlyiftheproductorservicehasnotbeen
purchasedbefore.Thereareanumberoftoolsavailableforthisinitialphase:
UselibraryandwebreferencessuchastheThomasRegister.ForprocurementrelatedwebsitesseeHelpful
andInterestingWebSites.
ConsulttheYellowPagesforlocalsuppliers.
Consulttradepublications,directories,vendorcatalogues,andprofessionaljournals.
Talktosalespersons.
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Talktocolleaguesinotherinstitutionswhomighthavepurchasedasimilarproductorservice.
2. Oncealistofpotentialvendorshasbeendeveloped,beginevaluatingeachsupplier'scapabilities.Insome
cases,obtainingaDun&Bradstreetfinancialreport('runningaD&B')isagoodplacetostart.However,aD&B
containsonlypubliclyavailableinformationorinformationthatthevendorchoosestoprovide.SomeD&Bs
alsoincludebriefprofilesofkeymanagementpersonnelandhistoricalinformationonthecompany.Buyers
canalsocheckwithlocalBetterBusinessBureaus.
HarvardBusinessSchool'sBakerLibraryoffersmanyfinancialdatabasesthroughaPINloginat
http://www.library.hbs.edu/.
3.Thereareanumberofguidelinesforvendorselection*:
Investigateavendor'sfinancialstability.
Checkbankreferences.
Iftimepermitsandthesupplierisapubliccorporation,obtainacurrentannualreport.
Findouthowlongthevendorhasbeeninbusiness.
Findoutwhoarethevendor'sprimarycustomersandaskforandcheckreferences.
Tourthevendor'sfacilities,ifpossible.
Doesthefacilityappearprosperous?
Doesthevendorusestateofthearttechnology?
IsthevendorreallyinterestedindoingbusinesswiththeUniversity?
*Vendorpartnershavebeenprequalified.
4. Thesestepsshouldnarrowthefieldtothethreetofivevendorswhowillbeaskedtobidontheparticular
productorservice.
PREPARING AND EVALUATING A BID
Biddinggoodsandservicesisausefulprocessforseveralreasons.Thebiddingprocess:
allowsthebuyerto"comparisonshop"forthebestpricingandservice
allowsthebuyertomakeaninformedandobjectivechoiceamongpotentialvendors
encouragescompetitionamongvendors
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givesthebuyerastandardforcomparingprice,quality,andservice
givesthebuyeralistofqualifiedvendorsforfuturebids
NOTE:Dependingonthecommodity,educationalpricing,basedonGSA(GeneralServicesAdministration)pricing
maybeavailable.WhenavendoroffersGSApricingoreducationalpricingbasedonGSApricing,itistypically
competitive.
Thebidprocessbeginswiththebuyerdevelopingasetofspecificationsorobjectives.Thebuyermustdo
somehomework,andbeabletodefinetherequirementsexactly.Thebuyercanconsultcolleagues,technical
personnel,trademanuals,andvendorsforassistanceindevelopingspecifications.Thebuyerthencommunicates
therequirementstotheselectedvendorsbyawrittenRequestforQuotation(RFQ)oraRequestforProposal
(RFP).
1. TheRFQprocessisdesignedtoidentifythevendorwhocanmeetthebuyer'srequirementsforthebest
price.TheRFQshouldbeusedforbiddingfamiliar,standarditems.Price,deliveryandinventoryareusually
themostimportantelementsoftheRFQ.TheRFQshouldcontainALLtheinformationnecessaryforthevendor
tosubmitavalidquote:
Theproduct(s)shouldbedescribedindetail.
Specificationsshouldbeclear,conciseandcomplete.
Quantity,qualityrequirements,packaging,F.O.B.point,paymentterms,andwarranty,deliveryand
InventoryrequirementsshouldallbeincludedintheRFQ.
2. AN RFPshouldbeusedforbiddingservicessuchasconsulting,advertising,publication,maintenance,and
computerprogramming.TheRFPusuallybeginswithastatementofpurposeorgoalsandobjectives
whatthebuyerhopestoaccomplish.TheRFP:
shouldclearlydefineanacceptablelevelofperformanceforthevendorandadefinitetimeframefor
achievingthisgoal
shouldaskthevendortodescribethequalificationsofthoseindividualswhomaybeinvolvedin
implementingthegoalsandobjectivesoftheRFP
shouldaskforalloftheinformationcontainedinanRFQ(seeabove)butalsocanaskforinputfromthe
vendors.Thevendorsmightbeaskedhowtheywouldmeetaspecificobjective,whatuniquecontributions
theywouldmaketowardachievingthegoalsoutlinedintheproposal,andwhatalternativeproposalsthey
wouldoffer.Thevendorsmightalsobeaskedtosolvespecificproblemsconcerningtimeconstraints,new
technology,oronthejobtrainingforendusers."How"isasimportantas"howmuch".
3. Tipsonpreparingabid(RFQorRFP):
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Thebuyerneedssufficienttimetoprepareagoodbidandthevendorsneedsufficienttimetorespond(two
tofourweeks).
AllvendorsshouldreceiveidenticalcopiesoftheRFQorRFPandanysubsequentchangesinthebid
specification.
Specifyadeadlineforsubmittingallbids.Ifthedeadlineisextendedforonevendor,itmustbeextendedfor
all.
Allvendorsshouldbenotifiedinwritingifthebidspecificationschange.Ifthechangesaresubstantial,it
maybenecessarytoextendthesubmissiondeadline.Allvendorsshouldbenotifiedoftheextensionin
writing.
Ifthebuyerreceivesanumberofquestionsaboutthebid,thebuyershouldconsiderholdingaprebid
conference.ThebuyerwillhaveanopportunitytoclarifytheRFQorRFPforallthevendorsandnovendor
willhavetheunfairadvantageofadditionalinformation.
Whenthebidsarereceived,thebuyershouldsign,dateandindicatethetimethateachisreceived.All
competitivebidsareconfidentialandshouldneverbeusedasabargainingtool.
4.TipsonEvaluatingbids:
Takethetimetoreviewthebidscarefully.
Narrowthefieldbydeterminingwhichvendorsare"responsive".A"responsive"bidprovidesALLthe
informationaskedforandaddressesALLtheissuesintheRFQorRFP.Eliminatebidderswhoare
unresponsive.
Lookcarefullyatproposedprices.Bewaryofavendorwhosubstantiallyunderbidshiscompetitors.He
maybe'lowballing"towinthebidbutthequalityofhisproductcouldsufferorhemightbeunabletomeet
thedeliveryrequirements.Asubstantiallylowerpricemightalsoindicatethatthevendorhas
misunderstoodormisinterpretedtherequirements.
Ifappropriate,obtainandevaluatesamples.
Ifthebiddingisclose,askforextendedwarranties(ifappropriate)andcompareprices.
Considerthevendors'pastperformances,aftersalesupportandservices,technology,andthecreativity
usedtomeetthebuyer'srequirementsorobjectives.
NEGOTIATION TECHNIQUES
Negotiatingsuccessfullytakesskillandpracticeandshouldresultinawinwinsituationforboththebuyerand
theseller.Forindividualswhoregularlynegotiatewithvendorsandotherorganizations,itmaybeappropriateto
pursuetrainingand/ormembershipinoneormoreappropriateprofessionalsocieties.Asguidelines,good
negotiators:
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dotheirhomework
clearlyunderstandtheirrequirementsandobjectives
developstrategies
neverlosesightoftheirgoals
knowwheretheycanaffordtocompromiseandwheretheycannot
makesuretheirnegotiatingteamshavewhateverexpertise(technical,financial,legal)isneededto
increasethechancesforasuccessfulsettlement
makeanefforttoanticipatethevendor'sstrategyandtodeterminewhatthevendorhopestogainfromthe
negotiationprocess.
WhentoNegotiate
Buyersshouldnegotiatewhen:
thepurchaseinvolvesasignificantamountofmoneyorrepresentsanongoingeffort
thenumberofvendorsavailablearetoofewtocompetitivelybidthepurchase(thebuyercan'tbesureof
gettingafairprice)
newtechnologiesorprocessesareinvolvedforwhichsellingpriceshaven'tbeendeterminedyet
thevendormustmakeasubstantialfinancialinvestmentinequipment,technologyorotherresources
notenoughtimeisavailabletocompetitivelybidthepurchase
NegotiationStrategies
Wheneverpossible,thebuyersshould:
negotiateontheirown"turf".Thephysicalenvironmentshouldbepleasant,wellventilatedandlighted.
prepareanagendaandbriefthemembersofthenegotiatingteambeforehandsothattheirstrategyisn't
compromised
neverlosesightofthetargetwhatshouldbegainedfromthenegotiation
haveconfidenceintheirfactsandfigures.Neveruseinformationthatcouldbequestionedorproven
inaccurate.
negotiateonlywithvendorrepresentativeswhoareempoweredtomakeconcessions
leaveplentyofroomtomaneuver.Thegreatertheinitialdemands,thegreatertheprobabilityforsuccess.
notbeafraidtobesilent.Silencecanbeaneffectivenegotiatingtool.Ifthevendorfearsheislosingthe
business,hemaytalkhimselfintoofferingmoreandbetterconcessionsthanexpected.
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callarecessorlunchbreakifnegotiationsbreakdown.
alwayswithholdsomethingforconcessioninreturnforapointthevendoriswillingtoconcede
alwaysbefair.Thevendorisentitledtoareasonableprofitonethatallowshimtostayinbusinessforthe
longrun.
NegotiationStrategiestoAvoid
Buyers:
shouldn'trevealtheirstrategiestooearlyintothenegotiationprocess
shouldavoidgettingsoboggeddownindetailsthattheoverallobjectivesarelost
shouldnevertrytoprovethevendorwrong.Leavethevendorroomtoretreatgracefullyfromastated
position.
shouldavoiddisplaysoftemper,frustrationandangerthatcanhandicapthenegotiationprocessand
logicalthinking.
shouldnotcommunicateanythingtothevendorthatreducesbargainingpower,forexample:"You'reour
onlysource.""Wehave$21Kbudgetedforthispurchase.""Ihavetohaveitnow."etc.Beintelligentand
cautious.
EQUIPMENT MAINTENANCE AND SERVICE AGREEMENTS
Computers,scientific,diagnosticandtestingequipment,andotherspecializedequipmentrequireongoing
periodicmaintenanceafterwarrantiesexpire.Oneoftheprimarybenefitsofnegotiatinga
service/maintenanceagreementwiththemanufactureristhatthemanufacturerhasreadyaccesstothepartsand
factorytrainedpersonnelrequiredtomaintainorrepairtheequipment.
NewEquipment
Iftheequipmentpurchaseisa'onetime'buy,serviceandmaintenancerequirementsshouldbeaddressedinthe
bidorduringnegotiationswiththevendor.InevaluatingRFQsandRFPs,costsforserviceandmaintenanceshould
alwaysbeconsideredaspartofthetotalpriceoftheequipment.TheLIFECYCLECOSToftheequipmentincludes
purchasepricefortheequipmentandthecostofservice/maintenanceextendedovertheusefullifeofthe
equipmentabout7to10years.Iftheequipmentwillberentedorleased,thebuyershouldcarefullyreviewthe
servicecoverageofferedaspartoftherent/leaseprogramforadequacy.
DevelopingService/MaintenanceAgreementsforNeworPreviouslyPurchasedEquipment
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Buyersnegotiatingequipmentmaintenance/serviceagreementsshouldfullydescribethescopeoftheworkto
avoidanymisunderstandingsorunsatisfactorylevelsofservice.Termsandconditionsthatshouldbeagreedupon
betweenthebuyerandvendorincludeworkinghours,labor,excludedservices(whatthevendorisnotobligatedto
do),warranty,excludedparts,responsetime,loanerequipment,andappropriateinsurancecoverage.Vendors
usuallyhavestandardtermsandconditionsavailableforreviewbythebuyer.Ifthebuyerfeelsadditionalservices
mightberequiredorifthetermsandconditionsrequireamending,thebuyershouldnegotiatetheseelementswith
thevendorbeforetheservice/maintenanceagreementissigned.Thebuyershouldalsotrytonegotiateshipping
termsincasetheequipmentneedstobereturnedtothemanufacturerforrepairs.
Equipmentthatcanbeservicedunderacommonagreementshouldbegroupedandidentifiedbymodelnumber
andmanufacturer.Ifanumberofpiecesofequipmentneedservicing,thevendormightbewillingtoextenda
quantitydiscount.Thebuyershouldrequestinformationfromindividualmanufacturersonstandardmaintenance
agreementsandwhat,ifany,policythemanufacturerhasonmaintaininganothermanufacturer'sequipment.The
buyerandvendorshoulddevelopamutuallyagreeablemaintenanceschedulesothattheequipmentwillbe
availableandaccessibleforservicing.
Iftimepermits,thebuyershouldlookatthecostofobtainingathirdpartyfirmtohandlerepairsandmaintenance
versustheoriginalequipmentmanufacturer(OEM).ServicerepresentativesfromtheOEMmayhavetotravel
somedistancetorepairyourequipmenttraveltimethebuyerwillhavetopayfor.
Sometimes,athirdpartyfirmwillbeabletohandleserviceandrepairrequirementsforalowerratebecausethe
servicerepresentativesarecloser.However,thebuyermustbeconfidentthatthisfirmcanobtainthepartsand
personnelneededtoserviceandrepairtheequipment.
PURCHASING CAPITAL EQUIPMENT

ACapitalEquipmentpurchaseisequaltoorgreaterthan$5,000andhasausefullifespanoftwoormoreyears.
Forinformationonfixedassetsandcapitalizingequipmentpurchases,calltheOfficeofFixedAssetAccountingat
6174953766.
LeaseorBuy
Equipmentpurchasesusuallyinvolveasubstantialfinancialcommitmentthepurchasepriceoftheequipment
andthecosttoserviceandrepairit.Beforepurchasingtheequipment,thebuyershoulddeterminewhetheror
notashorttermleasewillsatisfytheneedsoftheenduserandwhetherornotasimilarpieceofequipmentexists
oncampus,isavailable,andwillsatisfytheneedsoftheenduser.Ifthebuyerdecidestoleasetheequipment,
provisionsshouldbemadeforupgradingtheequipment,ifneeded.
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MakingtheBuy
Oncethedecisionhasbeenmadetopurchasetheequipment,thebuyershouldpreparethespecifications,select
thevendors,anddeveloptheRFQorRFP.Iftheequipmentisstandardandrequiresnomodifications,thebuyer
canusetheRFQformat(PreparingandEvaluatingaBid).Iftheequipmentrequiresspecificmodifications,the
buyershouldusetheRFPformatandclearlydefinethespecificationsandthescopeoftheworktobeperformed.
GuidelinesforShippingCapitalEquipment
NegotiatetheF.O.B.Point.IfthetermsareF.O.B.Destination,thevendorislegallyresponsiblefortheequipment
untilitisdeliveredtothespecifiedlocationand,iftheequipmentisdamagedintransit,isalsoresponsibleforfiling
thefreightclaim.IfthetermsareF.O.B.Origin,Harvardislegallyresponsiblefortheequipmentintransitfromthe
vendor'swarehouseordock.Harvardwouldfileafreightclaimiftheequipmentisdamagedintransit.Whenthe
F.O.BpointisOrigin,theequipmentshouldbeinsuredforfullreplacementvaluethroughtheHarvardUniversity
InsuranceOffice(4958668)orbythevendor.
OtherIssuestoAddressBeforePurchasingCapitalEquipment:
PhysicalSitePreparation
Doesthereceivingsitehaveanylimitationssuchastrucksize,weight,oraccessibility?Haveprovisionsbeen
madetoremoveoldequipment,ifnecessary?Canthefloorstructurallysupporttheequipment?Arefreight
elevatorsavailableandwilltheequipmentfit?(Takethetimetomeasuredoorwaysandelevators.)Are
electricalconnectionsinplaceandcompatible?Willthenewequipmentinterfacewithexistingequipmentand
howwillthisbeaccomplished?Requestthatthevendorgivenotification2448hoursbeforedelivery.
Installation
Whowillberesponsible?Whatdoesitinclude?Iftheinstallationwillbeperformedbythevendor'spersonnel,
makesurethevendorhasadequateliabilityandworker'scompensationinsurance.CanUniversitypersonnel
installtheequipment?Howlongwillinstallationtake?Isinstallationaseparatecostorincluded(F.O.B.
Installed).
Training
Istrainingavailableforendusers?Wherewillittakeplace?Howlongwillittake?Istrainingincludedinthe
purchaseprice?Isauser'smanualincluded;completewithpartslistandschematic,andinEnglish?Willthe
vendorprovideongoingtechnicalassistanceifneeded?
Acceptance
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Theequipmentisexpectedtoconformtocertainperformancespecificationsandshouldbetestedbeforethe
buyer/enduserauthorizespaymenttothevendor.
Warranties
Warrantiesshouldbeginfromthedateofinstallationandtraining.Theequipmentshouldbeoperationaland
personnelfullytrained.Thebuyershouldavoidtakingpartialshipmentsandriskwarrantiesoncomponents
expiringatdifferenttimes.Iftheequipmentistobestored,arrangewiththevendorforanextendedwarranty
orhavethevendoractivatethewarrantyaftertheequipmenthasbeeninstalledandtested.Otherwise,the
warrantymayexpirebeforetheequipmentisupandrunning.Buyersmayfindanextendedpreventative
maintenanceagreementmorecosteffectivethanwhateverdiscounttermsthevendorisoffering.
ServiceandMaintenance
SeeEquipmentMaintenanceandServiceAgreements(above)
PaymentTerms
Negotiatepaymenttermswiththevendorandspecifythetermsonthepurchaseorder.Occasionally,vendors
willrequestapartialpaymentwhentheorderisplaced,anotherpaymentwhentheorderisshipped,andfinal
paymentwhentheequipmentisaccepted.Progresspaymentsaretypicallymadeiftheequipmentisexpensive
orhasbeencustomizedtotheenduser'sspecifications.
VendorTermsandConditionsofSale
Buyersshouldpayparticularattentiontothefineprintonthevendor'swrittenquotation.Someitemsmaybe
negotiable,somearenot.Reviewtheordercancellationpoliciescarefully.Penaltiesforcancellationcaninvolve
asubstantialportionofthepurchasepriceparticularlyiftheequipmenthasalreadybeencustomizedtomeet
veryspecificrequirements.
ForeignImport
ContacttheHarvardUniversitycustomsbrokerDHLDanzasAEI6178866652forinformationonrequired
formsanddutycharges.Toapplyfordutyfreeentryforscientificequipment,seeDutyfreeentryforScientific
Equipment.
Bonds
Iftheequipmentiscomplex,customized,andexpensive,thebuyermayrequireaBidBond,whichbindsthe
vendortohisoffer(thevendor'squotationorproposal)toselltheequipment;aSupplyBond,which
guaranteesdeliveryoftheequipmentandisusedprimarilyforcustomizedequipmentorcomponents;ora
PerformanceBond,whichguaranteesthatthevendorwilldeliverandinstalltheequipmentaccordingtoa
specifiedschedule.Mostcommonequipmentpurchasesdonotrequirebonds.
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SECTIONVI:SPECIALSITUATIONS
PURCHASING RADIOISOTOPES
Seehttp://www.uos.harvard.edu/ehs/radiation/purchasing_procedures.shtmlforinformationonrequirements
forpurchasingradioisotopesatHarvard.
PURCHASING TAX-FREE ALCOHOL
1. TheDepartmentoftheTreasuryAlcoholandTobaccoTaxandTradeBureau(TTB)requirestaxfreealcohol
permitsforalldepartmentsusingabsolutealcoholforresearch.HarvardhastaxfreepermitsforTheChemical
Laboratories,HarvardForest,TheNewEnglandRegionalPrimateResearchCenter,TheMedicalArea,andThe
CambridgeArea.
2. AlcoholUsageProcedures:Alcoholmustbestoredinlockedcabinets.Onlyoneortwoindividualsineacharea
canbeauthorizedtodispensealcohol.Recordsmustbekeptbyauthorizeddispensersandcontainthe
followingdocumentation:
theamountanddateofeachshipment,
thenamesofpersonsrequisitioningalcohol,
theamountofalcoholdispensed,and
theresultsofthemonthlytabulation(thequantityofalcoholonhandatthebeginningofthemonthplus
anyshipmentsreceivedminusthealcoholusedisthephysicalbalanceonhandattheendofthemonth).
Attheendofeachmonthaphysicalinventorymustbetakenandcomparedwiththerecordedbalance.Anyloss
orgainmustbenotedandtheresultsconvertedto"proof"gallons.StrategicProcurementcoordinatesthe
monthlyreconciliationforalcoholpurchasedundertheCambridgeareapermitonly(excludingtheChemical
Laboratories).
3. TaxFreeAlcoholAnnualSurvey.InJanuaryofeachyear,StrategicProcurementsurveysannualalcoholusage
byeachofthetaxfreepermitareas.StrategicProcurementsendsformsfromtheTTBtotheauthorized
dispensersineacharea.Eachareamustrecordthemonthlydatadescribedaboveforthepreviousyearonthe
formandreturnittoStrategicProcurement.Theserecordsmustbeavailableforinspectionatanytimebythe
BureauofTTB.
PURCHASING CONTROLLED SUBSTANCES
Seehttp://www.uos.harvard.edu/ehs/ih/DEA_Researchers_Guide.pdf
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forinformationonrequirementsforpurchasingcontrolledsubstancesatHarvard.
PURCHASING NEEDLES AND SYRINGES

FORNONHUMAN,NONANIMALINJECTIONRESEARCHPURPOSES
EffectiveSeptember18,2006,theMassachusettsDepartmentofPublicHealth,DivisionofFoodandDrugsno
longerissuesMassachusettsControlledSubstancesRegistrations(MCSP)toobtainneedlesandsyringes.Acopyof
theamendedregulationcanbefoundhere.
DUTY-FREE ENTRY FOR SCIENTIFIC EQUIPMENT
thescientificinstrumentsandapparatusmustbeusedexclusivelyforeducationalpurposesandscientific
research,and
thescientificinstrumentorapparatus,oritsequivalent,isnotmanufacturedintheUnitedStates.
IftheequipmentarrivesatCustomsbeforedutyfreeentryhasbeenapproved,orifnoRequestforDutyFreeEntry
wasmadepriortothepurchase,theapplicantcanrequestadelayofliquidation(Customsclassifiestheequipment
andassessesduty).Adelayofliquidationisusuallygrantedforupto180days,butmaybeextended.
Iftheequipmenthasbeenreceived,classifiedandassessed,andthedutypaid,aRequestforDutyFreeEntry
applicationcanstillbefiled.Thisapplicationmustbefiledwithinninetydaysfromthedateofliquidation.
Somecategoriesofscientificequipmentcanbeimporteddutyfreebyeducationalinstitutionsunder
certainconditions.
ARequestforDutyFreeApplicationshouldbecompletedandfiledwiththeUnitedStatesCustomsbefore
placingtheorderwiththevendor.IfCustomsapprovesthedutyfreepurchase,thepurchaseordermustbe
issuedtothevendorwithinsixtydays.
Dutyonscientificequipmentisusuallysubstantial.Departmentsshouldapplyfordutyfreeentrywellin
advanceofmakingthepurchase.Ifdutymustbepaid,thendepartmentscanbudgetaccordingly;before
fundsmaybecommittedelsewhere.
ThecustomsbrokerforHarvardUniversityis:
DHLDanzasAEI
500RutherfordAve.
Charlestown,MA02129
Phone:6178866652
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SECTIONVII:FEDERALPROCUREMENTREQUIREMENTS
OVERVIEW OF FEDERAL PROCUREMENT REQUIREMENTS
HarvardUniversityreceivessignificantfundingfromFederalsourcesandisrequiredtocomplywiththeFederal
AcquisitionsRegulation(FAR)forpurchaseswiththesefunds.Thesepurchasesarereviewedforcompliancewith
theFederalAcquisitionRegulationandtheOfficeofManagementandBudgetCircularA110.Departmentsare
requiredtoretainbackupdocumentation,suchasbids,quotes,andcost/priceanalysesonfileforFederal
auditors.
RequireddocumentationforFederallyfundedpurchasescanincludepurchaseorders,invoices,copiesof
competitivequotesorproposals,justificationforsolesourceselection,andcost/priceanalysis.Typically,these
documentationrequirementscanbemetbycompletingtheVendorJustificationFormandbyretainingcopiesof
quotesandproposalsindepartmentfiles.TheVendorJustificationFormmustbeusedfordocumentingall
purchaseorders$5,000andovermadewithFederalfunds.SectionAandSectionBoftheVendorJustification
Formcovervendorselectionjustification.SectionCcoverscost/priceanalysisrequirements.
AnyquestionsconcerningFederalprocurementregulationsshouldbedirectedto(617)4955401.
PURCHASING WITH CONTRACT FUNDS
THEFEDERALACQUISITIONREGULATION
IdentifyingContractFunds
AbuyermakingpurchaseswithcontractfundsisrequiredtoadheretotheFederalAcquisitionRegulation(FAR).
Toverifythetypeoffunding(grantorcontract)checkthetypeofawardspecifiedintheActionMemofromthe
OfficeforSponsoredPrograms(OSP).TheActionMemonotifiesthePrincipalInvestigatorthathis/herresearch
hasbeenfundedandthatHarvardhasestablishedanewaccountfortheproject.Alineitematthebottomofthe
ActionMemo,AwardType,specifiesthetypeoffunding.Example:AwardType:FederalContract.Ifthebuyerdoes
nothaveaccesstotheActionMemo,he/sheshouldcontactthePrincipalInvestigatororthecontractor
departmentadministrator.
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SmallPurchaseProcedures
HarvardUniversityrequiresthatanypurchaseorderover$5,000(20%ofthesmalldollarpurchasethresholdof
$25,000)complywithCompetitionandPriceReasonablenessprocedures.
CompetitiveBiddingforContracts
HarvardUniversityrequirescompetitivebiddinganddocumentationforeverypurchaseorder$5,000andover.
Buyersareexpectedtopromotecompetitionandensureadvantageouspricingbysolicitingbidsfromaminimum
ofthreevendorsandtoselectthelowestbidderabletomeettherequirements.Quotationscanbesolicited
orally,withtheexceptionofconstructioncontractsover$2,000.Thebuyershouldrecordthebid/quoteresults
onSectionAoftheVendorJustificationForm(VJF)andretaincopiesofwrittenbids/quotationsindepartment
filesforauditpurposes.Ifthebuyerreceivesonlyonequote/bidinresponsetohisRequestforQuotation/
RequestforProposal,indicatethebidderonSectionAandcompletecost/priceanalysisSectionCoftheVJF.
NonCompetitiveVendorSelection:SELECTEDandSOLESOURCES
Occasionally,abuyerisunableorchoosesnottocompetitivelybidhisrequirements.Thesesituationsinvolve
selectedorsolesources.Aselectedsource:alternativevendorsexistinthecompetitivemarket,butthebuyer
choosesaparticularvendorbecauseoftechnicalrequirements(precision,reliability)orpastperformancebyother
vendors(poorservice,availabilityofparts).Asolesource:noothervendorcapableoffullymeetingthe
requirementsexists.ThebuyershouldcompleteSectionBandSectionCoftheVendorJustificationFormfor
selectedorsolesourcepurchases.Solesourcesshouldbetheexception,nottherule.
Cost/PriceAnalysisforContracts
HarvardUniversityalsorequiresdocumentationverifyingthatthepurchasepriceisfairandreasonable.The
buyermustprovidedocumentationofcost/priceanalysisforallnoncompetitivepurchaseorders$5,000and
over.Documentationcanbebasedonthepriceofpreviousandsimilarpurchases,currentpricelists,catalogues,
advertisements,andnegotiatedpricingagreements(includingvendorpartnerships).SectionCoftheVendor
JustificationFormlistscost/priceanalysisoptions.Thebuyershouldcheckallthatapply.
UsingtheVendorJustificationFormforContractFundedPurchases
InstructionsforcompletingtheVJFareontheformitself.However,tosummarize:
RecordcompetitivebidsonSectionA.
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RecordselectedorsolesourcejustificationonSectionB.
Checkcost/priceanalysisoptionsonSectionC.
ThecompletedVendorJustificationFormmustbekeptonfile(electronicallyforHCOMorders)forgeneralaudit
purposes.Ifprogresspaymentsof$5,000andoverarebeingmade,thesepaymentsareaddressedbytheoriginal
VJF.Thesetransactionsaresubjecttopostauditanditmaybenecessaryfordepartmentstoproducecompleted
VendorJustificationForms.DonotsendVJFstoStrategicProcurement.
PURCHASING WITH GRANT FUNDS
OFFICEOFMANAGEMENTANDBUDGETCIRCULARA110
NOTE:ReadOverviewofFederalProcurementRequirementsbeforecontinuing.
IdentifyingGrantFunds:
AbuyermakingpurchaseswithgrantfundsisrequiredtoadheretoOMBCircularA110.CircularA110explains
administrativerequirementsforcolleges,universities,hospitals,andothernonprofitorganizationswithfederally
fundedgrantsandagreements.AttachmentOofA110dealsspecificallywithProcurement.Harvardidentifies
Federalfundsbyassigninganaccountcodetoeachcontractandgrant/agreement.Toverifytypeoffunding(grant
orcontract)checkthetypeofawardspecifiedintheActionMemofromOSP.TheActionMemonotifiesthe
PrincipalInvestigatorthathis/herresearchhasbeenfundedandthatHarvardhasestablishedanewaccountfor
theproject.AlineitematthebottomoftheActionMemo,AwardType,specifiesthetypeoffunding.Example:
AwardType:FederalGrant.IfthebuyerdoesnothaveaccesstotheAwardMemo,he/sheshouldcontactthe
PrincipalInvestigator,orthecontractordepartmentadministrator.
GrantPurchases$10,000andOver:
Forthesepurchases,HarvardUniversityrequires:
basisforvendorselection
justificationforselectedsourceorsolesourcepurchases,and
basisforthepriceofthepurchase
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Ifthebuyercompetitivelybidsthepurchase,SectionAoftheVendorJustificationFormshouldbecompleted.Ifthe
vendorisaselectedsource(alternativevendorsexistbutthebuyerchoosesaparticularvendorbasedon
technicalrequirementsorpastperformancebytheothervendors)orsolesource(noothervendorcapableof
meetingtherequirementsexists),thebuyershouldcompleteSectionBandSectionC(cost/priceanalysis)ofthe
VendorJustificationForm.Solesourcesshouldbetheexception,nottherule.
GrantPurchases$5,000$9,999:
HarvardUniversityrequirescost/priceanalysisforeverypurchaseatorabovethislevel.Foreachpurchaseof
$5,000$9,999,thebuyermustcompleteSectionC(Cost/PriceAnalysis)oftheVendorJustificationForm.
Vendorselectionjustification(SectionAorSectionB)isnotrequiredforGrantPurchasesunder$10,000.
Grantpurchasesunder$5,000:
HarvardUniversityrequiressomeformofpriceorcostanalysisbemadeforeverypurchasetoensureafairand
reasonableprice.BuyersarenotrequiredtocompleteaVendorJustificationFormforpurchaseordersunder
$5,000.Nevertheless,buyersshouldmakeanefforttouseandverifyHarvarddiscounts,checkmarketprices,
reviewpastpurchaseordersforsimilaritems,anddemonstrategoodbusinesspractices.
UsingtheVendorJustificationFormforGrantFundedPurchases:
InstructionsforcompletingtheVJFareontheformitself.However,tosummarize:
CompleteSectionAorBandSectionCforpurchaseorders$10,000andover.
CompleteSectionCforallpurchaseorders$5,000andover.
QUICKREFERENCEREGARDINGTHEVJF:
TheVJFmustbecompletedforpurchasesofgreaterthanorequalto$5,000madewithfederalfunds.This
regulationappliestofundingfromallfederalcontractingandgrantingagencies.
AVJFisnotrequiredforpurchasesunder$5,000;however,someformofpriceorcostanalysisshouldbe
completed.
The$5,000requirementreferstothetotalofthepurchaseorder,notpriceperitem.
DonotsendyourVJFstoStrategicProcurement.Retaintheformlocallyforgeneralauditpurposes.
Freightcostsareconsideredpartofthepurchasepriceandmustbeincludedinthetotalcostoftheitem(s),
evenifthesecostsincreasethepurchaseorderto$5,000orover.
TheVJFshouldbesignedbyanindividualwithknowledgeofthevendorselectionprocessandrationale.
InterdepartmentalbillingsdonotrequireaVJF.
Ifyouaremakingprogresspaymentsgreaterthanorequalto$5,000,theprogresspaymentsareaddressed
bytheoriginalVJF.
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The$5,000requirementappliestoanyandallpurchasesofgoodsorservices,regardlessoftheformof
payment.Itincludesinvoicedtransactions,PCardtransactions,andreimbursements.
IfthescopeofagrantorcontractrequiresanindividualtospendtimeoutsidetheU.S.andgoodsand/or
servicesarepurchasedabroad,itisstillnecessarytoabidebyfederalprocurementregulationsasoutlined
intheVJF.
AVJFisnotrequiredforsubcontractsoriginatingatanotherinstitution.Anyrequiredsupporting
documentationshouldbeheldbythesponsoringinstitution.
UsersoftheHarvardCrimsonOnlineMarketplace(HCOM)maycompletetheVJFonline.Inthesecases,
thereisnoneedtoretainapapercopy.
NotethatinHCOM,ausercanimmediatelyaccessandcompletetheVendorJustificationFormfor
sponsoredpurchases.
SUBCONTRACTING PLANS FOR SMALL AND SMALL DISADVANTAGED BUSINESSES
1.TheSubcontractingPlan
TheFederalAcquisitionRegulation(52.2199)requiresaSubcontractingPlanforSmallandSmall
DisadvantagedBusinessesforeachcontract$500,000andover,unlessotherarrangementsaremadeduring
contractaward.Whentheseplansarerequired,primecontractors,suchasHarvard,agreetopurchasea
percentageofthesuppliesandservicesrequiredfortheperformanceofthecontractfromsmalland
minoritybusinesses.SomeFederalagenciessetspecificgoals.Mostrelyontheprimecontractortomakea
"goodfaitheffort."TheSubcontractingPlanspecifies:
whichitems/commoditieswillbepurchasedfromsmallandminoritybusinesses,
thetotaldollarstobespenteachwithsmallandminoritybusinesses,and
thepercentageoftotaldollarsbudgetedforsuppliesandservicesthatthesepurchasesrepresent.
Whenrequired,theSubcontractingPlanissubmittedbythePrincipalInvestigatorwithhis/herresearch
proposalandbudget.Oncetheawardhasbeenmade,theSubcontractingPlanbecomespartofthecontractand
thePrincipalInvestigatorisexpectedtomeetthegoalssetinthePlan.
2. PrincipalInvestigators,contractadministrators,andbuyersshouldbefamiliarwiththeDefinitionsof
Small,SmallDisadvantaged,andWomenOwnedBusinesses.
ASmallBusiness:
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generallyhasfewerthan500employeesincludingaffiliates,isindependentlyownedandoperated,andisnot
dominantinitsfieldofoperation.
ASmallDisadvantagedBusiness:
isasmallbusinessconcernwhichisatleast51%owned,managed,andoperatedonadailybasisbyamember
ofadefinableminoritygroup.DefinableminoritygroupsincludeAfricanAmericans,HispanicAmericans,Asian
Americans,NativeAmericans,NativeHawaiians,Inuit,andAsianPacificAmericans.
AWomenOwnedBusiness:
isasmallbusinessconcernwhichisatleast51%owned,managed,andoperatedonadailybasisbyawoman/
womenwhoisaUnitedStatescitizen.WomenOwnedbusinessesarenotconsidereddisadvantaged,
unlessownedbyawomanwhoisalsoamemberofadefinableminoritygroup.
3.PreparingaSubcontractingPlan
TheOfficeforSponsoredProgramsnotifiesthePrincipalInvestigatorwhenaplanisrequiredandwhetheror
notthecontractingagencyhassetspecificgoals.Ineithercase,theplanmustsetseparategoalsforsmalland
smalldisadvantagedbusinesses.StrategicProcurementisavailabletoassistthePrimaryInvestigatorwiththe
identificationofvendorsthatmeetspecificminority,womenowned,smallbusinessorotherrequirements.
4.TheSubcontractingPlanForm
Oncesubcontractingopportunitieshavebeenidentifiedanddollarsandpercentagegoalscalculated,this
informationisenteredonaSubcontractingPlanform.Somecontractingagenciesprovidetheseforms.The
NationalInstituteofHealth(NIH),forinstance,willnotacceptasubcontractingplanthatisnotonanNIHform.
However,mostagenciesareflexibleaslongastherequiredinformationisincluded.TheSubcontractingPlan
formismodeledontheNIHformandgenerallyacceptedbyfederalcontractingagencies.Thecompleted
SubcontractingPlanmustbesignedbytheindividualsubmittingitandsenttothecontractingagencyfor
approval.
5.SubcontractingPlanReportingForm294
ThecontractingagencyrequiresthePrincipalInvestigatortocompleteonlinesemiannualreportingcharting
his/herprogressinmeetingsubcontractinggoals.TheOfficeofSponsoredPrograms,alongwithStrategic
Procurement,coordinatesthereportingwiththePrincipalInvestigator(s).Buyersshouldbealertedto
subcontractinggoalsandshouldidentifysmallandminoritybusinessesatthestartofthecontractsinceitis
difficulttomeetgoalsafterthemoneyhasbeenspent.Failuretodemonstratea"goodfaitheffort"canresultin
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theprimecontractorbeingassessedliquidateddamages.Thecompletedformmustindicatethenameofthe
administratoroftheplan.
6.EPAGrant/CooperativeAgreementRequirementsForm570052A
UniversityrecipientsofEPAgrantsandcooperativeagreementsarerequiredtosetaFairSharegoal.The
PrincipalInvestigatormustreporthisprogressannuallytotheEPAonForm570052A.Thisformisavailable
fromtheEPAandcanbecopied.Form570052A
RegardlessofthedollarvalueofaprojectawardedaGrant,theFederalStateRevolvingFund(SRF)Grant
Programrequiresthatanyprimecontractsorsubcontractsforservices,construction,goods,orequipment
procuredbyaGranteetoimplementtheprojectfundedfromtheGrantmustcontaintheapplicableFederal
FairShareMinorityandWomenOwnedBusinessEnterprises(M/WBE)UtilizationGoals.
StrategicProcurementisavailabletoassistthePrincipalInvestigatorwiththeidentificationofvendorsthat
meetspecificminority,womenowned,smallbusinessorotherrequirements.
DEBARMENT
TheFederalAcquisitionRegulation
(FAR)52.2095requiresthatHarvardobtainwrittencertificationfromvendorsreceivingapurchaseorderor
commitmentof$25,000andoverandmadewithFederalfundsthattheyhavenotbeendebarred(prohibited)
fromdoingbusinesswiththeFederalGovernment.AprimecontractorsuchasHarvard,whoknowinglydoes
businesswithadebarredvendor,riskshavingitsFederalcontractterminated.
CausesforDebarment
Avendorisdebarredforseriouscriminaloffensessuchasembezzlement,theft,forgery,bribery,andotheroffenses
indicatingalackofbusinessintegrity.Dependingonthespecificcause,thelengthofthedebarmentcanbe
anywherefromthreeyearstoindefinitely.
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CertificationRequirements
ThebuyermakingthepurchaseisrequiredtoobtainasignedDebarmentCertificationFormfromthevendorprior
tomakingapurchasecommitment.Typically,thisisdoneaspartofaquotationprocessorimmediatelypriorto
placingtheorder.Thevendorcanemail,mail,orfaxthecompletedformtothebuyer.Thesigneddebarment
certificationformshouldberetainedlocallyalongwiththeVJFforauditpurposes.
AlthoughtheGeneralServicesAdministrationmaintainstheExcludedPartiesListSystem(EPLS)identifying
debarredvendors,itisnotsufficientforpurchaserstoreferencethislistasameansofcertifyingthatavendoris
notdebarred.SincetheFARrequiresthatawrittencertificationbeobtainedfromthevendor,theEPLSshouldbe
usedonlyasareference.
Ifprogresspaymentsgreaterthanorequalto$25,000willbemade,allprogresspaymentsareaddressedbythe
originaldebarmentform.
SPONSOREDPURCHASESINHCOM
1.Approvalisrequiredforallsponsoredpurchases,regardlessofamount.
2.ReceivingisrequiredinHCOMforallsponsoredpurchases,regardlessofamount.
3.TheVendorJustificationFormcanbeaccessedwithinHCOM,andcompletedatthetimeoforder.
4.InformationabouttheDebarmentFormcanbefoundinHCOMwithalinktotheforminABLE.
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HARVARDUNIVERSITYPROCURETOPAYGUIDE

HOW STRATEGIC PROCURMENT WORKS WITH THE VENDOR COMMUNITY:

BEST VALUE VS. BEST PRICE

MARKET BASKET APPROACH

MINORITY- AND WOMEN-OWNED BUSINESS ENTERPRISE PROGRAM

PURCHASE ORDER GUIDELINES

STANDING PURCHASE ORDERS (NOT PART OF HCOM)

INVOICE PROCESSING (NOT IN HCOM)

TAXES AND EXEMPTIONS

CREDIT APPLICATIONS AND CREDIT AND TRADE REFERENCES

MANAGING VENDOR RELATIONSHIPS

HOW TO MANAGE A VENDOR ISSUE

PREPARING AND EVALUATING A BID

EQUIPMENT MAINTENANCE AND SERVICE AGREEMENTS

PURCHASING CAPITAL EQUIPMENT

PURCHASING TAX-FREE ALCOHOL

PURCHASING CONTROLLED SUBSTANCES

PURCHASING NEEDLES AND SYRINGES

DUTY-FREE ENTRY FOR SCIENTIFIC EQUIPMENT

PURCHASING WITH CONTRACT FUNDS

PURCHASING WITH GRANT FUNDS

SUBCONTRACTING PLANS FOR SMALL AND SMALL DISADVANTAGED BUSINESSES

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