Purchasing Policy and Procedure Definitions

  • APM: Accounting Procedure Manual
  • Abandoned Property: Items not owned by the state or university abandoned on UW-Madison property
  • ADA: American Disability Act
  • Agency Sale: Scheduled weekly sales held at the SWAP Warehouse where surplus property is offered to UW-Madison departments, UW-System institutions, other state agencies, school districts, non-profit organizations and local governments prior to being offered to the general public
  • Agent Of Record: The purchasing agent who issued the purchase order. Agent initials are found on the purchase order in the shaded area, upper left hand side. The Purchasing Agent Commodity Assignment list identifies Agents by their initials
  • Agreement: A legally binding contract that states terms and conditions of a procurement between two or more parties.
  • American Made Materials Policy: Wisconsin statutes provide that the state will purchase materials which are manufactured to the greatest extent in the United States when all other factors are substantially equal.
  • Application for Title/Registration (Department of Transportation form MV1): Must be completed to title and register a vehicle before it is operated on public highways, roads and streets.
  • ARO: After Receipt of Order
  • ASSA: Academic Support Services Agreement
  • ASSO: Academic Support Services Order
  • Auction Sales: Process used to offer surplus property to the general public
  • Award: Selection of the lowest price bid which meets all specifications of the bid.

  • Back Orders: A stock item that is ordered is temporarily out of stock and a vendor chooses to ship at a later date.
  • Badger State Industries (BSI) Program: Policy on procurement of BSI materials and services.
  • Best Judgment Purchase: A purchase of $5,000 or less (excluding freight)for only that particular purchase. Best Judgment purchases may not be used for capital equipment, printing services, radioactive materials or gas cylinders.
  • Blanket Order: A purchase order issued to establish an account with a vendor or state agency to obtain miscellaneous supplies or services (e.g., laboratory supplies, repair parts) during a specified period of time.
  • Brand/Trade names: Manufacturer’s name and/or model.

  • Cancellation Order: An order issued to cancel an existing purchase order when none of the items ordered are wanted or available.
  • Capital Equipment: Items that individually have a cost of $5,000 or more and have a useful life of two years or more.
  • Carnet: An international customs document designed to simplify customs procedures for transporting items including: art exhibitions, demonstration equipment, advertising materials, etc. to more than one destination.
  • Central Fleet Office: UW-Madison Fleet Office located at 27 N Charter St, Room 110, Madison WI. 53715
  • Certified Minority Business Enterprise: A business certified as a minority owned business by the Wisconsin Department of Development under s.560.036(2), Wis. Stats.
  • Change Order: An order issued to change or modify an existing purchase order.
  • Commercial Invoice: A document communicating the seller’s understanding of the nature of the agreement between the seller and buyer. This document is used by service companies as a source of information about conditions of sale and transportation, and by foreign customs officers to establish duty.
  • Competitive Process: A minimum of three qualified vendors are solicited to submit bids or Requests for Bid (RFPS) for a procurement for which they normally would be expected to bid.
  • Confirming requisition (“Confirmers”): A requisition asking for payment out of public funds of a purchase made by an individual prior to going through required purchasing procedures and prior to the issuance of a purchase order.
  • Continuing Order Requisition (COR): A computer generated requisition created by Purchasing Services and sent to assist departments in renewing expiring blanket-type, maintenance, rental or lease/purchase, or a software maintenance and licensing agreement orders.
  • Contract (Purchase): An established legally binding agreement between the University/State of Wisconsin and one or more vendors in which the vendor agrees to provide certain supplies or services at a specified price or at a discount from price list for a set period of time.
  • Contract Compliance Affirmative Action Program: This State of Wisconsin requirement committs the contract vendor to a program designed to achieve a balanced work force within a reasonable period of time. It contains, at a minimum, a policy statement, work force analysis, program goals, internal monitoring system, and dissemination of the plan.
  • Contract Blanket Order: A blanket type purchase order supported by an UW-Madison, UW-System Contract, a State Contract (Procurement Bulletin) or a Governor’s Waiver.
  • Contractor: A vendor with whom the University/State has entered into a contract or negotiated an agreement for certain supplies or services with specific pricing and a set period of time.
  • Controlled Substances: Chemicals, drugs, or compounds of which the use and/or purchase is controlled by state or federal rules and regulations.
  • Credit Memo: Issued by a vendor to offset all or part of an invoice.
  • Customs: Authorities or departments designated to collect duties levied by a country on imports and exports.
  • Customs Broker: A person or firm licensed by the U.S. Treasury Department, engaged in clearing commodities for a client (importer/exporter) through customs. Scarbrough is the contracted broker for UW-Madison.
  • CWO: Cash With Order: Payment for purchase is mailed with the vendor copy of the purchase order prior to supplies or services being received.

  • Deep Discount: A vendor discount which reduces the net price substantially below normal market price.
  • Direct Payment: A payment for goods or services which does not use a purchase order or purchasing card and which is exempt from the normal purchasing procedures.
  • Division Of Information Technology (DoIT): The UW-Madison division that monitors, evaluates, and plans for campus wide telecommunications and computer technology purchases. The State of Wisconsin has delegated DoIT the authority to oversee the purchases of these commodities. When the purchase dollar amount exceeds $250,000.00, approval from the Department of Administration, Bureau of Information and Telecommunications Management is required.
  • Duty: A tax imposed by customs on imported commodities.
  • Duty Free: Exempt from taxes imposed by customs on imported commodities.

  • E-Commerce: The use of electronic means to view, select, order and arrange payment for goods and services.
  • Emergency Purchase: A purchase of goods or services needed to respond to an emergency situation. An emergency situation is something which threatens public health, safety or welfare and in which all the following conditions exist: 1) was unforeseen; 2) calls for immediate action; 3) cannot be responded to using established procurement methods. An emergency situation may also exist as the result of a proclamation by the Governor, under Wis. Stats. S.166.03(1)(b)1. PRINTING CANNOT BE PURCHASED USING EMERGENCY PURCHASING PROCEDURES. See Accounting Policy and Procedure (APM) #2 Processing Non-Routine Transactions.
  • Emergency Transaction: The procedure by which Departments may justify the need to issue a purchase order or request payment on a next day basis from when the requisition is delivered to Purchasing Services.
  • Encumbrance: A reservation/commitment (by a requisition) of budgeted funds into the campus accounting system.
  • Exchange: The return of all or part of a purchase to a vendor or manufacturer in exchange for replacement goods if the products received are defective or incorrect merchandise or caused by an error during the ordering process.
  • Exchange For Partial Credit: An exchange where the replacement goods are of a lesser value than the original order or of the same value but in a quantity smaller than the original order. The vendor will usually issue a credit memo.
  • Export: To carry or send (commodities) to another country/countries for use or sale.
  • Export Declaration: A formal statement made to the collector of customs at a port of exit declaring full details about the commodities being exported.
  • Export/Import Permit (License): A document issued by the government of the exporting country granting an exporter permission to export the merchandise described in the document.

  • Fragmenting of purchases: The intentional splitting of requisitions for like items from the same vendor with the intention of avoiding the competitive bid process.

  • Gift-in-Kind (GIK): A non-monetary gift voluntarily bestowed upon the University without restrictions.
  • Gift-in-Kind transaction: The process of obtaining campus approval of a Gift-in-Kind, prior to formal acceptance by the Board of Regents by using a Gift-in-Kind Transmittal Form.
  • Gift-in-Kind Transmittal Form: Required by the University for the purpose of assuring internal review and approval of all non-monetary gifts. Available from Application and Awards section of Research & Sponsored Programs (262-3822).
  • Graphic Equipment: Photocopiers (70 copies/minute or more) and floor-standing presses.

  • Illegal purchase: Any procurement action taken that obligates the University for payment for goods or services without using proper purchasing procedures.
  • Import:  To bring in commodities from another country for use or sale.
  • International Courier: A private company providing international delivery service .
  • Invoice: A request or bill for payment of item(s) shipped and/or services rendered with a detailed accounting of all charges and total amount due.
  • IPP – Internal Policies & Procedures: Policies and procedures developed by Purchasing Services that detail how purchasing efforts are to be done.
  • ISP – Invitation To Submit Plans: Procedure by which vendors are asked to submit proposals for the purchase of goods or services available from the UW Madison.
  • ITR – Information Technology Review: An approval form required for certain computer equipment/service and software purchases over $250,000.

  • Maintenance Agreement: A contract for repair or service of specified equipment, building equipment (i.e., elevators, furnaces) or non consumable supply items that is done on an ongoing basis.
  • Market Sensitive Equipment: Equipment which has a price dependent on timing of the sale.
  • Materials Distribution Services (MDS) (formerly called State Consolidated Stores): The UW-Madison warehouse, cross dock facility.
  • MBE – Minority Business Enterprise: Any firm that is identified as being owned 51% or more by an individual of an identified minority group as defined by the State of Wisconsin Dept. of Commerce.
  • Memo Requisition: A requisition that is not funded and used to initiate a bid or RFP process. It may be funded at a later date.
  • Minimum Requirements: Basic needs identified by the department user.
  • Minority Business Enterprise Policy: Minority Business Enterprises are encouraged to respond to the state’s procurement needs. All efforts are made to identify and eliminate any procedural or technical impediments to full participation of minority business enterprises in state procurement.
  • Motor Vehicle Request Explanation for Automobiles and Trucks (form DOA-3016): Must be completed when replacing a vehicle or requesting a new vehicle. Form is available from UW-Madison Vehicle Coordinator.

  • Negative Approval: The usual payment process, without special department approval, in which a properly prepared invoice is automatically processed for payment and a copy is sent to the department for review. It is the department’s responsibility to review the approved invoice and contact Accounts Payable if the invoice should not have been paid or presented.
  • NOBR – Notification of Bid Results: The results of a bid or RFP submitted to the appropriate department staff person for review and recommendation of award.

  • Office Equipment: Equipment typically found in an office; e.g., microcomputers, printers, calculators, laboratory fixtures.
  • Office Furniture: Furniture typically found in an office; e.g., desks, tables, chairs, file cabinets.
  • OTS -Offer To Sell: Procedure used to seek competition to sell specific surplus property equipment or abandoned property.

  • PIM – Procurement Information Memorandum: Published by the Department of Administration (DOA) and outlines the policies and procedures for specific commodity/service purchases.
  • Positive Approval: The payment by which any invoice received against a purchase order is sent to the department for review and approval before payment is made.
  • Price Lists: A list which indicates the price of items.
  • Prime Vendor: Contractors that have been established through bid or RFP processes as E-Commerce Partner with the UW-Madison MDS for the benefit of and in the best interest of UW-Madison and the State of Wisconsin.
  • Pro Forma Invoice: An invoice provided by a supplier prior to shipment informing the buyer of the types and quantities of commodities being sent, value, and important specifications (weight, size etc.).
  • Public Funds: All moneys deposited with the University regardless of source (e.g., state and federal funds, grants, contracts, gifts, donations, tuition, etc.) accepted by the Board of Regents.
  • Public Sale: Scheduled weekly sales held at the SWAP Warehouse where surplus property is offered to the general public after being offered to State Agencies, Municipalities, Non-profit Organizations and School Districts.
  • Published contract: The terms, conditions, and pricing document electronically published as a result of the award of a contract.
  • Purchasing Policies & Procedures: (PPP) Policies and procedures developed by UW-Madison Purchasing Services which detail the proper methods of processing purchasing related functions.

  • QVEN: The simplified bid process by which a minimum of 3 responsible vendors are contacted by phone, fax or email to obtain bid responses, reviewed and awarded a bid.

  • Real Property: Land, buildings or any improvements to land.
  • Recent Quote On File: Recent quote (e.g. three months) thats determined to be still viable by the professional judgment of the purchasing agent responsible for releasing the purchase order. Considerations include, but are not limited to, the commodity(ies) being purchased and prevailing economic conditions.
  • Reciprocity Law: This is a practiceto establish a listing of in-state preference practices of other states that may affect UW-Madison pricing for products from that state. See State Procurement Manual PROC-20.
  • Recycling Program: To define the procedures that agencies must follow in purchasing products with recycled content or disposing of products properly that can be recycled.
  • Release Order: An individual purchase via telephone, FAX, or in writing of an item(s) made against an open vendor order, a blanket order, or a contract order.
  • Requisition: A department generated document that encumbers funds, gathers departmental approvals and drives the purchasing process.
  • Requisitioning Bulletin: A state purchasing operational bulletin published by DOA providing instructions for ordering new vehicles and giving standard specifications and options.
  • Reverse Auction: A process by which vendors are precertified and then bid on a specific commodity grouping on-line, competing in an E-Commerce environment without the traditional document driven procedures.
  • RFB -Request For Bid: Formal procedure using written documents, advertising and defined time frames to request and receive quotations from prospective vendors.
  • RFI – Request For Information: A form used by Purchasing Services to request additional information from departments or vendors.
  • RFP – Request For Proposal: A formal procedure using written documents, advertising and defined time frames to request and receive quotations and supporting information from prospective vendors.
  • RMA – Return Materials Authorization Form: A form initiated by a department or Vendor to accompany goods returned to a vendor. An RMA may authorize the vendor to repair or exchange the returned goods and provides a current purchase order number to invoice any charges resulting from the transaction.

  • Serial Purchasing: Is intentionally breaking up a transaction by making multiple purchases so that each individual purchase falls below the $5000.00 Best Judgment Limit.
  • Services: The furnishing of labor, incidental parts and materials by a vendor; not involving the delivery of a piece of equipment or a supply item. (General rule of thumb: labor portion of any service agreement is 50% or greater of the entire procurement.)
  • Sheltered Work Center Program: A charitable organization or nonprofit institution which is licensed under s. 104.07, and incorporated with the state or a unit of county government and which is operated for the purpose of carrying out a program of rehabilitation for severely handicapped individuals and for providing the individuals with remunerative employment or other occupational rehabilitating activity of an educational or therapeutic nature, and which is engaged in the production of materials, supplies or equipment or the performance of contractual services in connection with which not less that 75% of the total hours of direct labor are performed by severely handicapped individuals.
  • Signatory Authority: Authority delegated by the Department of Administration allowing specified individuals to legally commit the University to contracts and agreements.
  • Simplified Bidding: An informal procedure used when the estimated cost of a transaction is less than $50,000 to obtain at least three competitive price quotes. (see Qven)
  • Small Business: A business which has had less than $1.5 million in gross annual sales in the most recent calendar or fiscal year.
  • Software License: A written contract between the University and a provider of computer software. The license usually describes the terms for how the software may be used legally and copied and includes non-disclosure language. The license may cover the types of software evaluation or development needed in return for grants (donations) of computer equipment.
  • Software License Nondisclosure Endorsement Form (SLN1): A form signed by authorized department staff agreeing to the terms of a software license agreement.
  • Special Approval: A written document or form, or a required review and approval of the request for procurement of a product or service before the product or service can be purchased.
  • Special Conditions of Bid: Written instructions included in bids or RFPs which are applicable and particular to the commodities and services being purchased.
  • Special Orders: Orders placed by MDS for non-stock items. .
  • Specific Order: A purchase order issued to a specific vendor for the one time purchase of specified supplies or services.
  • Specifications: Detailed statements used in bids or RFPs describing the materials, dimensions, performance requirements, and workmanship of something to be built, installed, manufactured or processed.
  • SPM – State Procurement Manual: containing rules for purchasing goods and services for the State of Wisconsin. VendorNet website
  • Standard Terms and Conditions: A preprinted set of instructions and information included in all bids or RFPs that need to be considered and agreed to by bidders in response to the bid or RFP.
  • State Property: All materials, supplies, and equipment of any state agency, regardless of value (not real property). This includes items that may be considered worthless and which still need to be disposed of through the proper disposal procedures.
  • Subscription: A contract to receive a magazine, journal, or periodical on established regular intervals and a stated length of time.
  • Supplies: Customarily, items consumed or expended in the course of being used. This does not include construction, services, capital equipment, and printing.
  • Surplus Property: State property that is in excess of department needs, no longer in use by the department, technically or mechanically obsolete, no longer functioning, or has no intrinsic value (junk). This does not include real property.
  • Surplus Property Declaration Form (Form AD-P-1): Must be completed to dispose of a vehicle. Authorizes agencies to dispose of vehicles and prescribes the method of disposal.
  • Surplus Property Pick Up Request: Form used by UW-Madison departments to notify SWAP of items deemed surplus by the department. Also used by SWAP to update inventory records for Property Control
  • SWAP – Surplus With A Purpose: UW-Madison’s department which is responsible for the disposal of surplus property. SWAP is located at 1061 Thousand Oaks Trail, Verona WI 53593.

  • Temporary Help: Professional or nonprofessional services contracted for to supplement state employee efforts, on a temporary basis, such as clerical, word processing, data processing, labor, maintenance or support services.
  • TIB – Temporary Import Bond: An international customs document used when importing a commodity on a temporary/trial basis to avoid duplicate customs charges.
  • Tracing: A follow-up inquiry with the vendor to locate missing goods, invoices, or credit memos.
  • Transaction: The complete business process of the procurement and payment of goods and services.

  • UDDS: An accounting acronym for Unit, Division, Department, Sub-Department used to designate a particular organizational unit within the UW-System.
  • Unresolvable Problem: A problem or complaint (e.g., late deliveries, disputes over pricing, or dissatisfaction with a product or service) with a vendor that cannot resolve.
  • UW-Madison Fleet: All vehicles owned, operated and leased by UW-Madison divisions, departments and programs.
  • Vehicle: Any automobile, truck, motorbus, self-propelled or motor-driven vehicle operated on a public highway [MVD 194.01(01)], and aircraft and inboard motor powered boats.
  • Vendor: A supplier of goods or services.
  • Vendor Net: State of Wisconsin Department of Administration System by which a subscribing vendor may be notified of bids or RFPs greater than $50,000.00 that are solicated by any state agency. Vendornet is also an informational tool to provide materials and information to state agencies through one source. VendorNet website
  • Veteran-Owned Business Program: A small business, as defined in 16.75(4) (c), that is certified by the Department of Veterans Affairs as being at least 51% owned by one or more veterans, as defined in s. 45.35(5).

  • Waiver: A process with adequate prior justification which allows a purchase to be made without competitive bidding.
  • Wisconsin Fleet Policies and Procedures: The minimum policies and procedures published by DOA regarding the use and operation of state owned pool vehicles. Published June 1989.