PPP22 Vendor Complaint Policy and Procedure

Complaints or problems with a contract or a vendor should be reported to Purchasing Services.

Effective 4/20/01
Replaces 8/23/91

1. POLICY:

Complaints or problems with a contract or a vendor should be reported to Purchasing Services.

2. PROCEDURES:

The department should contact the vendor when a problem arises and attempt to resolve the problem.

2.1 If a satisfactory resolution to the problem cannot be reached, the department should process a Vendor Complaint Report. The department should provide as detailed an explanation of the problem or complaint as possible and e-mail the Complaint Report to the Contract Manager (Purchasing Agent as noted on the contract).

2.2 The Contract Manager will investigate, take action and provide a written detailed report to the department of any actions taken.

3. REFERENCES:

PRO-413 – Reporting Supplier Complaints
Wis. Stats. 16.705(6)/16.72
Wis. Adm. Code Chapter Adm. 10.14

PPP32 Receiving and Distributing of Goods not Stocked at Shop@UW (MDS)

Receiving and Distributing of Goods not Stocked at Shop@UW (MDS) - PPP32

Effective 5/25/11
Replaces 10/9/07

Purchasing Policy and Procedure

Receiving and Distributing of Goods not stocked at Shop@UW (MDS)

POLICY:

Shop@UW will be the receiving and distribution center between vendors and UW-Madison (departments) for shrink-wrapped standard size pallets (40” W x 48”D x 60”H) of merchandise. Shop@UW intends to deliver merchandise within one working day of receipt whenever possible.

PROCEDURES:

1. Receiving

1.1 Departments are encouraged to give Shop@UW advance notice, if possible, when the expected shipment will arrive at Shop@UW docks. This notice should include; numbers of wrapped pallets, type of merchandise, the transportation company making the delivery, and complete contact person’s name, phone number and address. This information should be sent to the warehouse manager, Kyle Smith.
E-MAIL: kyle.smith@wisc.edu
PHONE: 608-497-4432

1.2 Shop@UW will unload customer’s wrapped pallets of merchandise from vendor’s truck, or common carrier, provide a pallet count, inspect for visible damage, and cross dock merchandise for Shop@UW delivery to individual locations. If Shop@UW sees any visible damage it will be noted in writing on the bill of lading. Shop@UW will notify the ordering department and the responsibility of pursuing the matter will be up to the department. Shop@UW will not be responsible for concealed damage, shortages and wrong merchandise. Shop@UW will not break down pallets for individual case counts.

1.3 Shop@UW will deliver wrapped palletized merchandise to their requested location in the greater Madison Metropolitan area within two working days of receipt. If short-term (two weeks or less) storage is needed a fee of $ 12.50 will be charged. Long term storage will be charged according to Shop@UW established monthly storage fee schedule.

2. Delivery

2.1 Shop@UW will deliver wrapped pallets to various locations in the greater Madison Metropolitan area, which have a semi truck or dock leveler-equipped loading dock.

2.2 If required, Shop@UW will palletize and wrap on a time and material basis, with a minimum charge of $10.00/pallet.

2.3 Shop@UW will charge $75 per hour for delivery if it takes longer than one hour to deliver items.

2.4 Shop@UW will prepare and wrap unwrapped pallets for cross docking and delivery for a $5.00/pallet fee.

3. Items not accepted at Shop@UW

3.1 Shop@UW will not accept any radioactive, perishable (either refrigerated or frozen), non-palletized items (large equipment, appliances or any merchandise exceeding 48” in length) or construction equipment or supplies.

PPP38 Procurement rules

All University staff will comply with the procurement rules outlined in 2CFR200 Sections 200.317 through 200.326 effective July 1, 2018 for procurements involving the expenditure of federal funds. Many of these rules are already addressed in the State of Wisconsin Procurement Manual, UW System rules, or UW Madison Policies and Procedures (PPP, IPP). This policy document covers those elements of 2CFR200 that are not otherwise covered in the aforementioned policies.

Effective 07/01/18

Procurement rules applicable to federally funded procurements following the Federal Uniform Guidance 2CFR200 Sections 200.317 through 200.326.

Policy:

All University staff will comply with the procurement rules outlined in 2CFR200 Sections 200.317 through 200.326 effective July 1, 2018 for procurements involving the expenditure of federal funds. Many of these rules are already addressed in the State of Wisconsin Procurement Manual, UW System rules, or UW Madison Policies and Procedures (PPP, IPP). This policy document covers those elements of 2CFR200 that are not otherwise covered in the aforementioned policies.

Procurement Standards:
Time and material costing:

The University may use a time and materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contracts mean a contract whose cost to the University is the sum of: 1) the actual cost of materials: and 2) Direct Labor hours charged at a fixed hourly rate that reflect wages general and administrative expenses, and profit.
Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the University must assert a high degree of oversight in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

Competition:

All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of section 200.319. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or and invitations for bids or requests for proposals must be excluded from competing for such procurements.

Best Judgment Purchases:

For purchases under the State of Wisconsin $5000 Best Judgement Limit where the product or service is not on a mandatory contract, properly authorized University employees, to the extent practicable, must distribute purchases equitably among qualified suppliers. Qualifying Best Judgement purchases may be awarded without soliciting competitive quotes if properly trained university staff consider the price to be reasonable.

Contracting with small and minority businesses, women’s business enterprises, and labor surplus areas firms:

The University must take all necessary affirmative steps to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps must include:

(1) Placing qualified small & minority businesses and women’s business enterprises on solicitation lists;
(2) Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;
(3) Dividing total requirements, when practicable and economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
(4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises;
(5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in (1) through (5) above.

Conflicts of Interest.

No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the University must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.

Procurement of recovered materials:

The University and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

Resource: https://swap.wisc.edu/

Contract cost and price:

The University must perform a cost or price analysis in connection with every procurement action in excess of the Federal Simplified Acquisition Threshold ($250,000) including all contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the University must make independent estimates before receiving bids or proposals. This information should be communicated to Purchasing Services by way of the External Requisition process.

The University must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the University under 2 CFR Part 200, Subpart E – Cost Principles. The University may reference its own cost principles that comply with the Federal cost principles. The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

Bonding requirements:

For construction or facility improvement contracts exceeding the Federal Simplified Acquisition Threshold ($250,000), the University must take necessary actions to make sure the Federal interest is adequately protected. If such a determination cannot be made, the minimum requirements must be as follows:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.
(2) A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

Contract provisions:

All contracts with federal funds should include the following language:
“Parties agree that any applicable terms required by Uniform Guidance 2CFR200 are hereby incorporated into this contract.”

References:

Electronic Code of Federal Regulations
https://www.wisconsin.edu/uw-policies/uw-system-administrative-policies/

 

PPP37 Background Checks of Contractors and Contracted Individuals

This policy applies to any unit of the University that is contracting with an individual, or, a contractor who employs individuals who are expected to have regular contact with minor children as a result of the contracted activities or services. In such circumstances, appropriate background checks must be conducted of the individual employees and requires reporting of any child abuse or neglect.

Effective 03/18/15
Replaces 11/22/13

1. POLICY

This policy is established to enact the University’s policy that requires compliance with Executive Order 54. Executive Order 54 and University policy may be found at these two respective URL’s:

http://docs.legis.wi.gov/code/executive_orders/2011_scott_walker/2011-54.pdf
TBD

This policy applies to any unit of the University that is contracting with an individual, or, a contractor who employs individuals who are expected to have regular contact with minor children as a result of the contracted activities or services. In such circumstances, appropriate background checks must be conducted of the individual employees and requires reporting of any child abuse or neglect.

2. PERTINENT SECTIONS OF POLICY APPLYING TO CONTRACTING

Independent Contractors.

1. When the UW contracts with a specific individual who is expected to have regular contact with children as a result of the contracted-for activities or services, the contract shall include the following.

a. A requirement that the individual pass a criminal background check performed by the Criminal Background Check Coordinator of the unit for which the individual will be engaging in activities or rendering services.  This background check will evaluate whether the individual has any pending charges or convictions that are substantially related to the contracted-for activities or services, including but not limited to those that would render the worker unsuitable for regular contact with children.  Disqualifying convictions or charges include but are not limited to sexual offenses, violent offenses, and drug offenses.

b. A requirement that the individual follow the “Reporting Requirements” in Section III of this policy to the same extent as UW employees.

2. When the UW contracts with a business (or other entity) and workers from that business are expected to have regular contact with children as a result of the contracted-for activities or services, the contract shall include the following.

a. A requirement that the business supply workers who have passed a criminal background check demonstrating the worker has no convictions or pending criminal charges that are substantially related to the contracted-for activities or services, including but not limited to those that would render the worker unsuitable for regular contact with children.  Disqualifying convictions or charges include but are not limited to sexual offenses, violent offenses, and drug offenses.

b. A requirement that the workers follow the “Reporting Requirements” in Section III of this policy to the same extent as UW employees.

3. PROCEDURES FOR ENACTING POLICY

3.1       For units acting within the scope of their delegated procurement (i.e. under $5,000 or a specific delegation agreement), those units are responsible for compliance with this policy.

3.2       For Contracts not otherwise delegated, The Purchasing Office shall be responsible for compliance with this policy.

3.3       When it is made known to a Purchasing Agent that an individual is being contracted to perform work where they are expected to have regular contact with children, the following clause will be added:

This contract is contingent upon, prior to the commencement of services, the independent contractor passing a criminal background check performed by the Criminal Background Check Coordinator of the unit for which the individual will be engaging in activities or rendering services.  This background check will evaluate whether the individual has any pending charges or convictions that are substantially related to the contracted-for activities or services, including but not limited to, those that would render the worker unsuitable for regular contact with children.  Disqualifying convictions or charges include, but are not limited to, sexual offenses, violent offenses, and drug offenses.

If, in the course of providing services to the UW, contractor (or its employee) observes an incident or threat of child abuse or neglect, or learns of an incident or threat of child abuse or neglect, and the contractor (or its employee) has reasonable cause to believe that child abuse or neglect has occurred or will occur, contractor must make a report of that abuse or neglect to law enforcement or to a county social service agency as provided in UW’s Policy on Mandatory Reporting of Child Abuse and Neglect (“the Policy”).  If the suspected child abuse or neglect involves an allegation against a UW employee or agent (e.g. student, volunteer, contractor, etc.), or the incident or threat of child abuse or neglect occurred on the UW campus or during a UW-sponsored, the contractor shall also report to the UW Police Department or UW’s Office for Equity and Diversity.

3.4       When it is made known to a Purchasing Agent that a contractor will be expected to have regular contact with children in the performance of a contract, the following clause will be added:

This contract is contingent upon, (insert entity providing services) supplying workers who have passed a criminal background check that includes a national criminal background check database demonstrating the worker has no convictions or pending criminal charges that are substantially related to the contracted-for activities or services, including but not limited to, those that would render the worker unsuitable for regular contact with children.  Disqualifying convictions or charges include, but are not limited to, sexual offenses, violent offenses, and drug offenses.

If, in the course of providing services to the UW, contractor (or its employee) observes an incident or threat of child abuse or neglect, or learns of an incident or threat of child abuse or neglect, and the contractor (or its employee) has reasonable cause to believe that child abuse or neglect has occurred or will occur, contractor must make a report of that abuse or neglect to law enforcement or to a county social service agency as provided in UW’s Policy on Mandatory Reporting of Child Abuse and Neglect (“the Policy”).  If the suspected child abuse or neglect involves an allegation against a UW employee or agent (e.g. student, volunteer, contractor, etc.), or the incident or threat of child abuse or neglect occurred on the UW campus or during a UW-sponsored activity, the contractor shall also report to the UW Police Department or UW’s Office for Equity and Diversity.

PPP36 Vendor/Manufacturer Rebates

No state employee or public official may use his or her public position or office to obtain financial gain or anything of substantial value for the private benefit of himself or herself or his or her immediate family, or for an organization with which he or she is associated.(Wis. Stats. 19.45(2); Chapter ER-Pers 24).

Effective 11/11/04
NEW

1. POLICY:

No state employee or public official may use his or her public position or office to obtain financial gain or anything of substantial value for the private benefit of himself or herself or his or her immediate family, or for an organization with which he or she is associated.(Wis. Stats. 19.45(2); Chapter ER-Pers 24).

2. DEFINITION:

Rebate is defined as a return of all or part of an amount given in payment for product, whether in the form of money, “free” merchandise, or, future benefits based on purchases made.

3. REBATES:

For the purpose of this policy, rebates associated with University purchases in the form of money or property are considered items of value that individuals may not personally acquire as a result of their position.

4. PROCESS FOR REIMBURSING REBATES:

A) Preferably, rebate checks should be made out to the University.  If the check is made out to an individual, it must either be signed over to the University or a personal check in the amount of the rebate must be submitted to the University for deposit.

B) Rebates in the form of certificates, property, or gift cards must be returned to the department.

C) Documentation must be kept with the originating purchase documentation showing any disposition of rebates back to the University.

REFERENCES:

Wis. Stats. 19.45(2); Chapter ER-Pers 24

PPP35 Departments Receiving Materials and Equipment

When receiving materials and equipment inspect items received for quantity, quality, condition, and any special specifications as indicated on the purchase order.

Effective 9/1/04
Replaces NEW

1. POLICY:

When receiving materials and equipment inspect items received for quantity, quality, condition, and any special specifications as indicated on the purchase order.

2. PROCEDURES:

A. Discrepancies discovered at time of delivery

When Inspecting shipments, if damages or shortages are discovered at the time of delivery, a notation is immediately referenced on the carrier’s bill of lading (see Freight Claims), if a Purchasing Agent was involved contact that agent and they will contact the supplier to determine a remedy. If a Purchasing Agent was not involved you need to contact the supplier yourself to determine a remedy. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

B. Discrepancies discovered after delivery has been made

When inspecting shipments and a hidden shortage or hidden damage is discovered after shipment has been received, a claim will be issued against the supplier (see Freight Claims). To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

C. Overages and Duplicate Shipments

When inspecting shipments and the quantity count reveals an excessive quantity or a duplicate shipment, a decision will have to be made whether or not to accept the additional quantity. If it is accepted a change order will have to be issued to the original purchase order, if one was issued. See PPP 11. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

D. Shipments Which Do Not Meet Specifications

Items, which do not comply with the specifications of the Purchase Order, will be rejected at the time of the inspection. If a Purchasing Agent was involved the department will notify the Agent immediately if an Agent was not involved the department will notify the supplier immediately. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts

E. Returns

If a department needs to return materials or goods to the supplier, see PPP 7.

F. Freight Claims

Goods shipped FOB require the shipper to absorb any losses during shipping. Any damaged or shorted shipment must be held at the inspection point pending an investigation by the carrier. Departments must contact the carrier to request an inspection report. Upon completion of the investigation and preparation of a damage report, the supplier will be furnished the original report, from which the supplier may initiate a claim against the carrier. The supplier will then arrange for any replacement or return of the damaged or shorted item.

G. Some Helpful Notes

When UPS/FedEx etc makes a delivery to a department and multiple packages are delivered the “one” signature from the person who signs for the package, is signing for all the packages delivered in that group.

If a department receives a misdirected package have the driver re-scan the package and note that it is being returned to the driver.

If you have a camera, preferably a digital one; it would be a good idea to take pictures of the damaged goods, and the shipping container if that was damaged.

When placing an order, always make the Shipping Terms as FOB Destination.

References:

PPP 7 Return Material Process
PPP 11 Change and Cancellation Orders
Accounts Payable Link: Accounts Payable Vendor Relations Contacts

PPP34 Departmental Purchasing Delegation

Departmental Purchasing Delegation - Delegation is a formal agreement between the University of Wisconsin-Madison, Purchasing Services and a University Department that authorizes the delegated agent in that department to process and approve departmental purchases up to a designated amount. There are two types of delegation, full delegation $25,000 and above and limited delegation up to $25,000.

Effective 9/1/04
Replaces NEW

POLICY

Delegation is a formal agreement between the University of Wisconsin-Madison, Purchasing Services and a University Department that authorizes the delegated agent in that department to process and approve departmental purchases up to a designated amount. There are two types of delegation, full delegation $25,000 and above and limited delegation up to $25,000.

Definition of Full Delegation

Full delegation is a formal agreement between the University of Wisconsin-Madison, Purchasing Services and a University Department that authorizes the delegated agent in that department to process and approve departmental purchases, regardless of dollar amount, in accordance with all State Statutes, UW Systems and UW-Madison policies and procedures. Some exceptions to this authority exist, and they may vary by department. Exceptions are determined for each requesting department and may include Academic Support Service Agreements (ASSA), service contracts, and governor waivers. The Director of Purchasing Services will determine any exceptions. These exceptions will be discussed with the delegated agent (department) and so noted in the delegated agreement.

Delegation is provided to a specific single individual within a department. It is expected that some Delegated Agents will have support staff that may actually be placing orders and obtaining necessary documentation to support required competitive processes. The support staff is encouraged to likewise obtain training and attend Delegated Agent meetings; however, delegation is typically provided to only a single responsible individual in a department who must assure that the supporting staff is complying with all State and University procurement rules. In exceptional cases where the volume of competitive processes requires a department to have more than one FTE responsible for assuring compliance with State and University procurement rules, additional Delegated Agents may be designated at the Director’s discretion.

Process for Requesting Full Delegation

  • Consideration for full delegation will only be given to those departments that have sufficient purchasing work load to justify a permanent full-time FTE that would be classified as Purchasing Agent Objective or higher.
  • Department must make a formal request for full delegation in writing and secure signatures from the Department Chair and Dean or Director. The request must include specific reasons for requesting full delegation, and it is to be submitted to the Director of Purchasing Services.
  • The Purchasing Services Director will forward the request to the delegated agent liaison for further evaluation or action if there is a legitimate need for full delegation. If the Director believes there is not a legitimate need for full delegation, the Director will notify the department.
  • The delegated agent liaison will gather departmental data regarding the number of annual transactions over $25,000 for evaluation. The delegated agent liaison will interact with the department to ensure they meet all of the mandatory requirements as listed below.
  • Delegated agent liaison will provide the Director of Purchasing Services with a report summarizing the findings.
  • The Director will make the final determination if full delegation is granted or not and notify the department.

Mandatory Requirements or Certification Process

The delegated agent must meet or exceed all of the following requirements prior to being given consideration for full delegation:

  • The delegated agent must have completed all of the currently available Department of Administration (DOA) procurement courses within the last three years or within the last seven years if there has been a subsequent, continuous responsibility as at least a Purchasing Agent Objective or higher since the training.
  • The delegated agent must have completed the Purchasing Services Delegated Agent training and pass a certification test when such a test is fully developed.
  • Purchasing Services must complete a delegated agent review(s) and the review(s) must be determined as satisfactory or better.
  • The delegated agent must work cooperatively with Purchasing Services agent(s) to produce quality documents on a minimum of three Official Sealed Bids and two Requests for Proposals (RFP). The Purchasing Services agents will serve as mentors to the delegated agent in completing these documents and processes.
  • The delegated agent must agree to be an active attendant at delegated agent meetings and to periodically attend the weekly Purchasing Agent meetings held at 21 N Park St, Ste 6101.
  • The delegated agent must agree to attend any supplemental training, seminars, or meetings as requested by Purchasing Services.
  • The Delegated Agent must agree to enter all purchase order information directly into the University’s purchasing system as soon as the system is made available.

Purchasing Services Responsibilities

  • Provide training on the procedures for processing Official Sealed Bids and Request for Proposals (RFPs).
  • Provide bid processor support for completing Official Sealed Bids and RFPs as they develop. All bid and RFP documents will be retained at Purchasing Services. All bid responses will be mailed to and opened at Purchasing Services.
  • Provide continuous training, guidance, and assistance to the delegated agent.
  • Conduct periodic reviews for compliance with the Delegated Agreement, University and State of Wisconsin purchasing policies and procedures.

Delegated Agent Responsibilities

  • Responsible for ensuring that all transactions conducted in their department are within the scope of their delegation agreement.
  • Responsible for ensuring that all State and University procurement policies and procedures are being followed.
  • Responsible for maintaining necessary records and files as required by State and University guidelines.
  • Must assure that all procurement activities of all departmental support staff are in accordance with all State and University procurement policies and procedures

The Director of Purchasing Services reserves the right to modify these requirements at any time.

Definition of Delegation up to $25,000

Delegation is a formal agreement between the University of Wisconsin-Madison, Purchasing Services and a University Department that authorizes the Delegated Agent in that department to process and approve departmental purchases up to $25,000 in accordance with all State Statutes, UW Systems and UW-Madison policies and procedures. Some exceptions to this authority exist, and they may vary by department. Exceptions are determined for each requesting department and may include Academic Support Service Agreements (ASSA), and service contracts. The Director of Purchasing Services will determine any exceptions. These exceptions will be discussed with the Delegated Agent (department) and so noted in the delegated agreement.

Delegation is provided to a specific single individual within a department. It is expected that some Delegated Agents will have support staff that may actually be placing orders and obtaining necessary documentation to support required competitive processes. The support staff is encouraged to likewise obtain training and attend Delegated Agent meetings; however, delegation is typically provided to only a single responsible individual in a department who must assure that the supporting staff is complying with all State and University procurement rules. In exceptional cases where the volume of competitive processes requires a department to have more than one FTE responsible for assuring compliance with State and University procurement rules, additional Delegated Agents may be designated at the Director’s discretion.

Process for Requesting Limited Delegation Up To $25,000

  • Consideration for delegation will only be given to those departments that have sufficient purchasing workload to justify a permanent, full-time FTE who would be responsible for procurement activity.
  • Department must make a formal request for delegation in writing and secure signatures from the Department Chair and Dean or Director. If the department is requesting delegation for the first time, the request must include specific reasons for requesting delegation. All requests must be submitted to the Director of Purchasing Services.
  • The Purchasing Services Director will forward the request to the Delegated Agent liaison for further evaluation or action if there is a legitimate need for delegation. If the Director believes there is not a legitimate need for delegation, the Director will notify the department.
  • The Delegated Agent liaison will gather departmental data regarding the number of annual transactions for evaluation. The Delegated Agent liaison will interact with the department to ensure they meet all of the mandatory requirements as listed below.
  • Delegated Agent liaison will provide the Director of Purchasing Services with a report summarizing the findings.
  • The Director will make the final determination if delegation is granted or not and notify the department.

Mandatory Requirements or Certification Process

The Delegated Agent must meet or exceed all of the following requirements prior to being given consideration for delegation:

  • The Delegated Agent must have taken the Department of Administration (DOA) procurement course, Understanding the Wisconsin Purchasing Process, within the last three years, or otherwise agree to take the next offered course. Taking all of the DOA procurement courses are recommended.
  • The Delegated Agent must have completed the Purchasing Services Delegated Agent training and pass a certification test.
  • The Delegated Agent must agree to be an active attendant at Delegated Agent meetings.
  • The Delegated Agent must agree to attend any supplemental training, seminars, or meetings as requested by Purchasing Services.
  • The Delegated Agent must agree to enter all purchase order information directly into the University’s purchasing system as soon as the system is made available.
  • The Delegated Agent may be required to serve a probationary period of up to six months. After completing the probationary period, the Delegated Agent’s work may be reviewed by Purchasing Services for completeness and accuracy. The review must be determined as satisfactory or better.

Purchasing Services Responsibilities

  • Provide training on the procedures and policies.
  • Provide continuous training, guidance, and assistance to the Delegated Agent.
  • Conduct periodic reviews for compliance with the Delegated Agreement, University and State of Wisconsin purchasing policies and procedures.

Delegated Agent Responsibilities

  • Responsible for ensuring that all transactions conducted in their department are within the scope of their delegation agreement.
  • Responsible for ensuring that all State and University procurement policies and procedures are being followed.
  • Responsible for maintaining necessary records and files as required by State and University guidelines.
  • Must assure that all procurement activities of all departmental support staff are in accordance with all State and University procurement policies and procedures

The Director of Purchasing Services reserves the right to rescind delegation or modify these requirements at any time.

Process for Requesting Procurement Card Level in Excess of $5,000

  • Delegated Agent must make such request to the Director of Purchasing Services. The Director will determine the level of authority granted and determine the dollar level and any restrictions to be placed on the card.
  • The Director will notify the Procurement Card Program Manager of the approved dollar level and an updated procurement card user agreement form will be sent to the department to be signed by the appropriate authorities and returned to the Program Manager.
  • The Director will send the Department a revised delegation agreement for their signature and to be signed by the appropriate authorities and returned to the Director.

Responsibility of Delegated Agent for Card Level in Excess of $5,000

  • The Delegated Agent will be responsible to ensure that proper procedures are followed with regard to process and documentation. All purchases in excess of $5,000 must include a contract number, waiver number, sole source justification form or letter, reference a PRO, simplified bidding documents, or any other documents required for the purchase
  • The Delegated Agent must provide Purchasing Services a list containing the names of all the cardholders in their department who are given the authority to make purchases at a level greater than $5,000. The Director must be updated on all changes.

 

PPP33 Academic Support Services Orders and Agreements

Some services provided by independent contractors represent unique talents needed by the UW-Madison on a temporary basis to fulfill its mission of instruction, research and public service and may preclude the opportunity of competition. The need for a unique service is dependent upon the judgment of qualified professionals in UW-Madison departments.

Effective 04/08/14
Replaces 01/16/14

1. POLICY:

Some services provided by independent contractors represent unique talents needed by the UW-Madison on a temporary basis to fulfill its mission of instruction, research and public service and may preclude the opportunity of competition. The need for a unique service is dependent upon the judgment of qualified professionals in UW-Madison departments.

For those services $5,000 or greater, an Academic Support Services Agreement (ASSA) and Academic Support Services Order (ASSO) must be prepared and signed by an authorized signatory in Business Services. These documents are then sent to the provider by Purchasing Services. For services under $5,000, department users are encouraged to prepare contract documents detailing services to be provided with costs and detailed dates of services.

The following services do not apply:

2. USAGES AND LIMITS:

These specialized academic support services may be provided by an individual professional or group of professionals, a hospital, a school district, a clinic, a business, a non-profit organization or other entity may be available to provide the unique set of qualifications to accomplish the instruction, research or public service mission. Independent contractors may also include instructors, guest lecturers, consultants, athletic event officials and contest judges. ASSAs cannot be used if the provider is a university employee.

Please note: Procedures for services specifically related to entertainment, speaking, instructing and consulting are detailed in PPP 30.

3. PROCEDURES:

3.1 Best Judgment Purchases $5,000 or less:

3.1.1 See PPP 3 “Best Judgment Purchases”.

3.1.2 Departments may use either a Payment to Individual Report (PIR) or requisition for transactions $5,000 or less. The transaction amount is based on the total compensation, i.e., fee, lodging, meals, travel, etc., regardless of whether it is paid directly to the individual or on their behalf.

3.1.3 The decision regarding whether or not a service meets the intent of an academic support service will be the responsibility of the Purchasing Services Agent assigned to the transaction when a requisition is processed.

3.1.4 A requisition must be used if the provider requires a partial cash advance deposit and is recommended if the event is several months in the future. For additional information see PPP 30.

3.1.5 Departments are encouraged to have the provider sign a ASSA/contract to protect the University from any liability issues or to spell out specific arrangements between the provider and the Department. Department users are reminded that they are not authorized to sign these agreements and they must be sent through Purchasing Services for review and signature.

3.2 Transactions for more than $5,000:

3.2.1 If an academic support service costs $5,000 or more (excluding itemized travel) per year, a written Academic Support Services Agreement (ASSA) must be prepared, signed by the provider and signed/executed by a delegate with Chapter 36 signature authority.

3.2.2 The Department should visit the following website to complete an assessment of the services needed using the Service Contracting Wizard (https://www.rsp.wisc.edu/SAGuidance/). If the results of the assessment determine that the department requires Purchasing Services’ review, the department must attach a Purchases for Services Justification form and Contract Details Form to a requisition which must be sent to the Dean’s/Divisional office for review and signature. The Contract Details Form must be routed via e-mailed to your Dean’s office. If appropriate, the purchasing agent will prepare an ASSA based on the information provided.

3.2.3 If the funds being used are federal funds, the “Fair Price Analysis” section located on the Purchasing for Services Justification Form must be completed.

3.2.4 If the agreement is in excess of $25,000, no matter what the funding, a “Fair Price Analysis” must be included.

3.2.5 The completed ASSA will be e-mailed to the provider with a copy to the department.  A copy will be maintained on file at Purchasing Services. When the provider returns the signed ASSA, it will be presented to the Director of Purchasing for signature. Once signed, the purchasing agent completes the transaction by releasing the requisition as an Academic Support Services Order (ASSO). A signed copy of the ASSA will be mailed with the Purchase Order to the provider and the Department.

3.3 DELEGATED AGENT PROCEDURE:

Academic Support Service Orders are NOT part of any delegation agreement; therefore delegated agents are NOT authorized to issue PO ready requisitions for these services. Delegated agents should submit requisitions and justification or services as in procedure #3 above.

REFERENCES:

UW System Administrative Policy 235 (formerly F31)
Chapter 36, Wis. Stats.
PPP 30 – Entertainers, Speakers, Instructors Contracts
PPP 14 – Signatory Authority (agreements and contracts)
IPP 31 – Academic Support Services Orders and Agreements

PPP30 Entertainers/Speakers/Instructors and Consultants Contracts

Entertainers, Speakers, Instructors and Consultants ("Provider") events may require a written contract to define compensation, liability and tax responsibility.

Effective: 05/11/16
Replaces: 09/19/14

1. POLICY:

Entertainers, Speakers, Instructors and Consultants (“Provider”) events may require a written contract to define compensation, liability and tax responsibility.

2. USAGES & LIMITS:

For any non-payrolled individual who is Entertaining, Speaking, Lecturing or providing Consulting Services, for details, see the chart on website: http://www.bussvc.wisc.edu/purch/reqpirgrid.html

3. PROCEDURES: Best Judgment Purchases $5,000 or less:

3.1 Departments may use either a Payment to Individuals Report (PIR) or requisition for transactions of $5,000 or less. The transaction amount is based on the total compensation, i.e., fee, lodging, meal, travel, etc., regardless of whether it is paid directly to the Provider or on their behalf.

3.2 See PPP #3 “Best Judgment Purchases”.

3.3 A requisition must be used if the Provider requires a partial cash advance deposit, and is recommended if the event is several months in the future.

3.4 Departments are encouraged to have the Provider sign an entertainment or public speaking services contract or, if appropriate, a speaker contract to protect the University from any liability issues or to spell out specific arrangements between the Provider and Department. All Contracts should be signed by the Provider and must be sent to Purchasing Services for signature prior to the event unless specific authority has been granted by a Purchasing Services Delegation agreement.

4. Transactions for more than $5,000:

All transactions over $5,000 require a requisition unless the department has delegated authority to do Entertainment Contracts. PIRs will not be allowed unless the payee is a non-US Resident or unless a department has delegated authority to do so. The transaction amount is based on the total compensation, i.e., fee, lodging, meal, travel, etc., regardless whether it is paid directly to the Provider or on their behalf.

4.1 Public Speakers or Entertainers: All transactions must have a signed entertainment or Public Services Speaking Services Contract PRIOR to the event taking place. If the Speaker or Entertainer provides his/her own contract, then he/she must sign the University Standard Rider before Purchasing will sign their contract. A Federal Employer Identification Number (FEIN)/Social Security Number (SSN) is required. The Speaker or Entertainer will receive a 1099. For contracts with a total value of $7000, a Wisconsin Department of Revenue WT-11 form is required except under specific conditions.  For more information, see UW System Administrative Policy 235 (formerly F31).

4.2 Speakers: All transactions must have a signed Speaker Contract PRIOR to the event taking place. If the Speaker provides his/her own contract, then he/she must sign the University Standard Rider before Purchasing will sign their contract. A Federal Employer Identification Number (FEIN)/Social Security Number (SSN) is required. The Speaker will receive a 1099.

4.3 Instructors (Non-Payrolled): The Department must attach a Purchases for Services Justification form and Contract Details Form to their requisition. A Service Agreement will be prepared by Purchasing Services and sent to the Instructor for his/her signature prior to the event. A Federal Employer Identification Number (FEIN)/Social Security Number (SSN) is required. The Instructor will receive a 1099.

4.4 Consultants: The Department should visit the following website to complete an assessment of the services needed using the Service Contracting Wizard (https://www.rsp.wisc.edu/SAGuidance/). If the results of the assessment determine that the department requires Purchasing Services’ review, the department must attach a Purchases for Services Justification Form and Contract Details Form to a requisition which must be sent to the Dean’s/Divisional office for review and signature. Once the paperwork is received, reviewed, and if approved by Purchasing Services, a Service Agreement will be prepared by Purchasing Services and sent to the Consultant for his/her signature prior to the event. A Federal Employer Identification Number (FEIN)/Social Security Number (SSN) is required. The Instructor will receive a 1099.

Departments should be aware that there are Mandatory State Department of Administration Contracts for Consulting Services. Call Purchasing Services for more information on these Contracts.

REFERENCES:

UW System Administrative Policy 235 (formerly F31)
Chapter 36, Wis. Stats.
PPP 33 – Academic Support Services Orders and Agreements
PPP 14 – Signatory Authority (agreements and contracts)
IPP 31 – Academic Support Services Orders and Agreements- Contact Purchasing Services

PPP29 Educational Travel Tours

Educational travel tours are unique continuing educational activities. When no competition exists, transactions should be handled through the Academic Support Services Order (ASSO) process under the authority of the Board of Regents (See UW System Financial Policy and Procedure 31). If the ASSO process is not appropriate, standard competitive bid procedures must be followed.

Effective 5/11/98
Replaces NEW

1. POLICY:

Educational travel tours are unique continuing educational activities. When no competition exists, transactions should be handled through the Academic Support Services Order (ASSO) process under the authority of the Board of Regents (See UW System Financial Policy and Procedure 31). If the ASSO process is not appropriate, standard competitive bid procedures must be followed.

Travel agencies are responsible and assume all liability for tours. Department tour coordinators should not act as a travel agent. Doing so increases the University’s liability associated with the tour

2. PROCEDURES:

Departments may choose one of the following methods:

2.1 Academic Support Service Order (ASSO) Process.
Department tour coordinators should contact travel agencies to determine which agency is best able to provide the unique travel services required in the geographic region covered by the tour.

Departments must request an ASSO to a travel agency at least two weeks prior to the departure date. Departments should prepare a requisition and attach a brief justification explaining why this particular agency is the only one that can adequately provide the services required for the tour.

Purchasing Services agents will work with Department tour coordinators to prepare Academic Support Services Agreements (ASSA) and ASSO. ASSOs in excess of $5,000 will require a written contract with the travel agency. All ASSAs must be processed on behalf of the Board of Regents and by Purchasing Services. No Emergency Transactions (ETs) will be processed for ASSO transactions requiring a written agreement.

Transactions of less than $5,000 may have ASSAs if the Department tour coordinator or travel agency request them.

An annual ASSA can be developed with a travel agency if the department tour coordinator has several tours or a long-term need for that agency’s services.

Department tour coordinators are reminded that they are not authorized to sign any agreements. Only the Director of Purchasing Services may sign ASSAs on behalf of the Board of Regents.

2.2 Competitive Bid Process
Department tour coordinators should contact the Purchasing Agent responsible for travel services for assistance in bidding travel agency services.

3. After the purchase order is issued, department tour coordinator provides itinerary to travel agent. The travel agent then arranges airline, rail or bus travel, hotels, event tickets, dining reservations, etc.

4. Moneys from participants are collected and deposited into University accounts, not to the travel agency.

5. All travel agency invoices should be submitted by the travel agency to Accounts Payable referring to the Purchase Order number, for invoice processing. If desired by the Departmental tour coordinator, positive approval of such invoices may be requested by indicating that requirement on the requisition.

6. The Departmental tour coordinator may pay for incidental and unanticipated expenses or en route activities, not covered by the travel agency, via American Express Corporate Card, University Purchasing Card, personal credit card, or may obtain a University travel advance for cash payments (contact Accounting Services for process).

7. REFERENCES:

Financial Poligy and Procedure Paper 31

Accounts Payable Manual:

Cash Advances

Invoice Processing