7.1 Purchasing Operations

Policy Statement

The purchasing function consists of business processes related to the acquisition of goods and services for the University of Illinois System.

Purchases of equipment, materials, commodities, supplies, and services for the system are made competitively where practicable or required by law. Performance, quality, suitability, delivery, and service are factors to consider when purchasing goods and services. All purchases are made according to the provisions of the Illinois Procurement Code and the Public Institutions of Higher Education Standard Procurement Rules and other applicable state and federal regulations.

Reason for the Policy

The purpose of this policy is to ensure that all purchases of equipment, materials, commodities, supplies, and services for the University of Illinois System are made in compliance with the Illinois Procurement Code and the Public Institutions of Higher Education Standard Procurement Rules. This policy aims to promote fair competition, ensure the acquisition of high-quality goods and services, and maintain transparency and accountability in the procurement process. By adhering to this policy, the University of Illinois System can effectively manage its resources, meet statutory requirements, and support the institution's mission and goals.

Applicability of the Policy

This policy applies to all purchases of equipment, materials, commodities, supplies, and services made by or for the University of Illinois System. It is applicable to all departments and units within the system, including marketing, information technology (IT), and customer service.

Approvals and Authorizations

Construction—Capital Programs, Real Estate, and Utility Services, the Departments of Facilities Management (UIC), Facilities and Services (UIS), and the Office of Facilities and Services (UIUC), handle construction projects. Any of these university offices may ask the appropriate system or university purchasing office to issue competitive bids and/or purchase orders for construction projects.

Purchasing Authority—Units should submit properly-approved purchase requisitions to the appropriate system or university purchasing office to authorize initiation of the purchasing process according to established procedures. Limited purchasing authority is delegated to system and university units by use of the procurement card (PCard). Approval requirements are contained in 1 Fiscal Environment—Approval of Financial Documents.

Unit Purchases—When authorized by the appropriate system or university purchasing office purchasing director, units may buy directly from suppliers, using approved procedures and forms. Unions, student centers, and university bookstores may purchase books, supplies, and other items for resale when purchases are less than the competitive bid limit. This applies to one-time purchases or total annual purchases. University libraries may purchase books and other items for their collections. The university and system purchasing offices do not have the authority to make personal purchases for individuals, nor help them in any way with such purchases.

Process

The purchasing function contains several related processes:

• Pre-Requisition Services—Obtain specifications and market information about commodities, equipment, and services to help system and university departments in planning, budgeting, and acquisition timing.
• Buying—Identify vendors, negotiate, bid (when required), issue purchase orders, and/or execute contracts, expedite as requested (excluding PCards), issue change orders, and cancel orders.
• Transportation—Ensure efficient and economic routing of goods from the vendor to the system or university and handle any transportation claims against the carrier that may arise.

Delegations

Board of Trustees—The Board of Trustees has delegated the responsibility and authority for purchasing to the Comptroller, except where the authority to purchase specific items has been assigned to another officer or committee.

Comptroller—The Comptroller has delegated to the Assistant Vice President for Procurement Services (AVP) the authority to formulate and to publish the general policies and procedures required to carry out the actions of the Board of Trustees and to meet statutory requirements regarding purchasing matters. The AVP is also authorized to develop, install, and oversee the operation of appropriate business systems to accomplish the purchasing function.

Chancellors and Assistant Vice President for Procurement Services

Each university Chancellor and the Assistant Vice President for Procurement Services (for System Purchasing and Shared Services) has responsibility and authority for the day-to-day operation of the purchasing activities and the processing of the various purchasing transactions for their university.

These officers may delegate to the appropriate system or university purchasing office directors the actual direct supervision of the purchasing processes including the responsibility and authority for:

• Purchasing commodities, equipment, and services as requested by university units.
• Establishing and monitoring effective internal procedures to efficiently process purchasing documents.
• Coordinating with other administrative units to provide a timely and accurate purchasing function.
• Providing regular training and instruction to university personnel who originate, process, complete, or use purchasing documents, data, or files.
• Approving professional services contracts of less than $1,000,000.
• Approving the purchase of commodities, equipment and general services costing less than $1,000,000 and not subject to Board of Trustees approval.
• Approving purchases that exceed the dollar levels listed above, but that the Board of Trustees has exempted from its approval.
• Establishing procedures to: (1) ensure that insurance requirements for vendors, service providers, contractors, and consultants are included in purchasing documents; and (2) route certificates of insurance to the Office of Risk Management to review for acceptance, or corrective action. (See 6 Insurance for additional information.)

Purchasing Offices

The appropriate system or university purchasing offices have the following operational responsibilities:

• To purchase commodities, equipment, and services as requested by the various university departments, at the lowest price consistent with required quality, from suppliers who will deliver purchased items at the specified time and place.
• To conduct preliminary negotiations with suppliers, to locate sources of supply, to obtain price quotations through formal and informal procedures, to select vendors, and to place purchase orders. The appropriate system or university purchasing offices also handle interviews with salespersons.
• To follow-up on purchase orders as requested (except PCards) to ensure that the vendor fulfills the purchase agreement on delivery, and the carrier delivers the shipment promptly and in good condition.
• To handle, directly with the vendor, all correspondence concerning purchases, including price adjustments, the return of defective or incorrect materials, additional shipments to fill shortages, purchase order cancellation, and to present claims for shortages and damages.
• To furnish prices and estimates of cost for materials, equipment, and services to university departments.
• To suggest changes that will improve product quality, promote better availability, or provide greater economies in purchase or application.
• To maintain or obtain catalogues and other data about vendors, materials, and services for university departments to use in determining their needs. Such data may include information that is necessary to determine the overall responsibility of a vendor.
• To encourage the use of business enterprises owned by minority, female, and persons with disabilities as suppliers of goods and services to the system or university if such action provides value to the system or university and is not in direct conflict with any other statute, policy, or regulation.

Invitations for Bid / Request for Proposals

Invitations for Bid (IFB), Requests for Proposal (RFP), or quotations are used to purchase or contract for competitive items where practical or required by law. The Chief Procurement Officer for Higher Education is authorized to adjust bid limits annually for individual procurements of supplies or services other than professional or artistic services, and procurement of construction.

The IFB/RFP dollar levels for the current fiscal year are available on the Small Purchase Limits page. Announcements and advertisements publicize additional bid information and provide the bid due date, time, and place of the bid opening. Announcements must be published on the Illinois Higher Education Procurement Bulletin for a minimum of 14 days. All IFBs/RFPs are opened publicly.