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ROLES & RESPONSIBILITIES

When purchasing goods and services, it is important to understand the two distinct roles that exist in the centralized purchasing environment at American:

A. PCD's role: The Director of Procurements and Contracts has the ultimate authority to purchase goods and services for the University. The Director can delegate to departments the authority to buy certain goods and services. PCD’s Responsibilities include:

Provide appropriate training and documentation
Develop strategy, policy, procedures and systems
Negotiate corporate purchasing agreements
Review preferred vendors for performance and customer satisfaction
Manage the relationship with the One Card provider
Support benchmarking across schools
Offer assistance with any purchase
Offer high level discussions with Schools relating to the monitoring of good purchasing practice
Purchase Order Turnaround- Procurement & Contracts target a 48 hour turnaround to issue Purchase Orders if all information is clearly stated on the Purchase Requisition and has been competitively bid or justified appropriately.

B. Departmental Budget Coordinator’s role: A department budget coordinator has the responsibility to notify PCD of any unauthorized purchases of materials, supplies, services, and repairs when these goods and services are of the following type:
o Exceed $500 including tax, freight, and handling charges
o Have not been competitively bid or justified and are over $5,000 net
o Are considered capital equipment
o Are restricted budget items
o Require a signed contract
o Require labor on University premises
o Professional Service Agreement (PSA) over $10,000 OR PSAs under $10,000 and have material changes to the PSA.

C. Signature Authority (Who can buy?) - The Procurement and Contracts Department was established to ensure that all purchasing activities are carried out in accordance with all applicable laws, directives from the Board of Trustees, and sound business practices.

• Only The Procurement and Contracts Department has the authority to enter into a contract or lease, or to obligate the University in any way unless:

(1) the Trustees have specifically authorized an individual to do so in writing,
(2) the Director of Procurements and Contracts has delegated purchasing authority to specific individuals for a specific term or purpose.

• Individual faculty and staff members are not authorized to sign on behalf of the University, or to bind the University in any manner (except certain PSAs under $10,000, please see PSAs).

• Some vendors may also require accompanying terms, conditions, agreements or forms. In all cases these agreements are to be signed by the Director of Procurements and Contracts; however, they may also be co-signed by an appropriate representative of the using departments if desired.

• All documents without an authorized University signature will be considered invalid and not binding upon the University.

• Federal and District law provides that individuals who do not have delegated authority, and who enter into unauthorized agreements, may be held personally responsible for the cost of the goods or services purchased.

• Accordingly, any, and all, vendor forms of agreement such as: quotations, proposals, contracts, leases, letters of intent, memorandums of agreement, and any other document containing or referring to a supplier’s or the University’s terms and conditions, must be sent to The Procurement and Contracts Department for review and signature.

• Procurement and Contracts has a checklist of basic agreement requirements, as well as, standard University contracts, and contract guidelines for reference to a variety of typical business situations.

• A properly executed purchase order constitutes a contract that is binding on both the University and the vendor.

Contract Value - PSA up to$10,000** Division Head
$10,001 to $100,000 Director of Procurement and Contracts & Controller
$101,000 - $250,000 Assistant VP Finance
$250,001 - $500,000 VP Finance & Treasurer
$500,001 - $1,000,000 President
over $1,000,000 Board of Trustees

**- There must be no changes to the AU PSA or PSA Work Made for Hire or the terms and conditions, vendor must be an existing supplier; otherwise the PSA or PSA WMFH must be signed by PCD

D. Approved Departmental Expenses (What can’t you buy?)
The Treasurer’s Office has clearly identified those departmental expense categories that are prohibited under Restricted Commodities

E. Authorized Methods of Procurement (How can you get it?)
There are four authorized methods for procuring and paying for goods and services at American:
1. E-Procurement
2. AU One Card
3. Purchase Order System
4. Invoices under $500

The primary tool, the Datatel Financial system, or a PCD- authorized alternative system, should be used for acquiring all necessary goods or services. Each of the above listed procurement methods follow specific approval workflows, and have its own strengths. Office Supplies, travel, and other e-procurement links like Grainger.com, Fischer-Scientific.com, CDWG.com can be purchased through the referenced links. The AU One Card should be used whenever possible for purchases under $500. Otherwise, over $500 requires Purchase Orders. Invoices under $500 can be presented to A/P for direct payment, a requisition in Datatel is not required. Prepayments are used to pay vendors in advance for services such as: registrations and subscriptions.
Certain goods and services are exempted from Purchase Orders and are not required under policy to have a PO or blanket PO. PO’s can still be issued for these commodities, but they are not required by this policy.
Goods and services exempted from a PO

1. Cell phones
2. Landline phone bills
3. Gas for onsite campus use
4. Legal-
5. Library subscriptions & books
6. Insurance-
7. Independent Contractor Agreements (PSAs & PSA Work for Hire) for individuals only, not corporations*
8. Business Cards from AU preferred vendor Corporate Express
9. Outside medical services.

* - Note: A Purchase Order is not required for PSAs to individuals, although a current W9 will be required to process a payment with a PSA contract. A Purchase Order should be used in place of PSAs, if the PSA is to be written for a corporation instead of a proprietorship.

F.Unauthorized Purchases

Procurement Authority may only be delegated by PCD. An individual who has not been delegated procurement authority who makes an unauthorized purchase of goods or services may be held personally responsible for payment of the charges incurred. At the discretion of the PCD Director or Controller:

• The unauthorized individual shall be required to pay either the full amount whenever the purchase is found to cover unneeded items or items whose purchase would not otherwise be authorized and the transaction cannot be canceled, or the amount of any cancellation charges incurred when cancellation can be arranged.

• The unauthorized individual shall be required to pay only the difference between the charges such individual incurred and those AU would be reasonably expected to have incurred whenever the purchase is otherwise found to have been authorized.

G. Sales Tax

The University is exempt from District and certain state’s sales tax. Other taxes such as Entertainment Tax, Luxury Tax and Excise Taxes are not exempt. Upon request, The Procurement and Contracts Department will furnish a copy of the University's tax exemption certificate with the purchase order. The Procurement and Contracts Department maintains a list of each state (as well as the District) where the University holds a sales tax exemption. Please contact PCD with any questions regarding taxes and their applicability.

H. On-Site Work / Insurance Requirements

Under a variety of circumstances, outside organizations are required to provide evidence of commercial general liability insurance and to name the University as an additional insured to the organization's insurance policy in order to be permitted to conduct business on University property. All such arrangements require a written contract or purchase order with the University. PCD works with the Office of Risk Management to ensure that proper insurance requirements are in place before any on-site work begins. Refer to the Risk Management website for more details.

I. Personal Purchases

PCD will not facilitate or approve any transaction for purchases of a personal nature. Requisitions and vouchers containing items which appear to be of a personal nature will be questioned by PCD and will be returned to the requisitioner if the purchase is inappropriate.

J. Conflicts of Interests

Employees of American University who act on its behalf have an obligation to avoid activities or situations which may result in a conflict of interest or the appearance of conflict of interest. Employees must not use their University positions to influence outside organizations or individuals for the direct financial, personal or professional benefit of themselves, members of their families or others with whom there is a personal relationship.

K. Gifts andGratituties

In order to avoid a conflict of interest or the appearance of a conflict of interest, at no time should an employee solicit or accept gifts from a vendor or contractor or from a potential vendor or contractor. Ordinary business courtesies, such as payment for a modest lunch are acceptable when approved by the Director of Procurement and Contracts in advance. Gifts which are promotional items without significant value (less than $25.00), and which are distributed routinely by the vendor to clients, are also acceptable. All gifts, or "free" items received in conjunction with a purchase are perceived to be University property. As such, they must either be used within the department or forwarded to surplus property. Gratuities or gifts of money to an employee cannot be accepted at any time.

L. Capital Equipment

A Capital Equipment purchase exceeds $2500 (including freight and installation charges) and has an economic or useful life span of more than 3 years.
PCD issues bar coded tags to the asset's owner for affixing to the equipment and performs annual inventories. Additional information is provided in the Capital Equipment Definitions.

M. Surplus

Items that departments no longer use must be turned over to the Surplus Program so the University capital asset records can be updated and the items can be redistributed to other departments, sold, donated, or scrapped. PCD manages this program to ensure that University acquisition, funding and disposal regulations are met.

PURCHASE ORDER TERMS AND CONDITIONS

The American University General Terms and Conditions and the purchase order (collectively, the “Agreement”) shall constitute the complete and exclusive statement of the Agreement between University and the vendor with respect to the purchase of any goods and/or services. To the extent that vendor terms and conditions conflict with the American University General Terms and Conditions, the latter shall control.