2.2.2 Coordination with Office of Risk Management

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A. Purpose

The Purchasing Department was created in 1945 as the central purchasing authority for Princeton University for purchase contracts, vendor agreements and purchasing transactions for the procurement of goods and services. This policy sets forth the circumstances requiring, and procedures for obtaining, Office of Risk Management review.

B. Responsibilities/Procedures

1. Office of Risk Management Review - Purchase contracts, agreements and transactions (of any value) that include the Princeton University standard Terms and Conditions documents do not require Office of Risk Management review, except for the following:
   
   
   • a. The Director of Purchasing, or authorized designate, specifically identifies that the purchase contract, agreement or transaction requires Office of Risk Management review.
   • b. The purchase contract, agreement or transaction is for a project that requires Builder’s Risk Insurance (see Policy 4.18, Insurance Requirements).
   • c. The purchase contract, agreement or transaction includes changes to any one of the following Princeton University standard Terms and Conditions clauses:
     
     
     • i. Paragraph 3a, Insurance (also see Policy 2.2.1, Coordination with Office of General Counsel).
       
       
     • ii. Paragraph 7, Indemnification (also see Policy 2.2.1, Coordination with Office of General Counsel).
       
       
2. Office of Risk Management Assistance - While it is not required, it may be prudent to obtain Office of Risk Management assistance when dealing with the following:
   
   
   • a. Review of insurance certificates.
     
     
   • b. Self-insurance issues.
     
     
3. Office of Risk Management Review - On a regular basis, the Purchasing Department provides the Office of Risk Management with a list of all contract vendors that require insurance certificates. The Purchasing Department will indicate the term of the contract on the list. The Office of Risk Management is responsible to resolve issues related to non-compliant insurance certificates. The Office of Risk Management will be notified when a purchase order is issued for laboratory equipment with a purchase price of $500,000 or more.
   
   On a regular basis, the Office of Risk Management will provide the Purchasing Department with a list of all vendors who have met the individual insurance liability requirements, such as automobile rentals, entertainment companies, outside caterers, etc. These vendors will be evaluated by the Purchasing Department to ensure that the University is receiving the best possible price and terms of service and a valid vendor contract is on file.
   
   
4. Other Assistance - As required, a representative from the Office of Risk Management will serve as a member of the multi-function team responsible for global updates/revisions to the entire set of Princeton University standard Terms and Conditions (refer to Policy 6.4, General Conditions).
   
   
5. File Documentation - The contract file shall be documented to indicate that the requirement for Office of Risk Management review has been satisfied, or when applicable, that Office of Risk Management assistance has been obtained.

C. References

• Policy 4.18, Insurance Requirements
• Princeton University Standard Terms and Conditions
• Office of Risk Management Web Site