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A.	Purchasing Overview
	The Purchasing Department was established by the Board of Trustees in 1945 to ensure that all purchases of goods and services are carried out in accordance with applicable laws and directives from the Board of Trustees and follow sound business practices.
B.	Purchasing Objectives
	To employ a vendor contracting strategy to develop vendor contracts that leverage the University's spend to the benefit of the entire campus community. To assist the Princeton University campus community with the identification, selection and acquisition of required goods and services. To acquire goods and services as economically as possible, within acceptable standards of quality and service, while utilizing professional ethics and best business practices. To select the vendor to be used, considering delivered cost, quality required, vendor capability, vendor service record and delivery dates. To maintain a consistent and fair policy toward the entire business community, while maximizing the opportunity for small business participation. To ensure compliance with all University Purchasing policies as well as Federal and State procurement regulations.
C.	Signature Authority
	The bylaws of the Trustees of Princeton University and the Resolutions of its Board of Trustees state that contracts, leases and other legal agreements for the procurement of materials, supplies, equipment, goods and services may be signed only by specified officers of the corporation or their designees. The Transaction Authority Policy clarifies the delegation of authority to individuals employed by Princeton University to commit to transactions and obligations with outside parties on the University’s behalf. With delegated authority comes the expectation that the signatory will observe the many procurement policies and procedures and other Federal, State and University requirements. As such, the Purchasing Department has been duly authorized by the Trustees to negotiate, sign and enter into agreements with vendors for this purpose.
D.	Terms and Conditions
	The Princeton 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 Princeton University General Terms and Conditions, the latter shall control. For more information on the establishment of a vendor contract, refer to the Purchasing website.
E.	Roles & Responsibilities
	When purchasing goods and services, it is important to understand the two distinct roles that exist in the decentralized purchasing environment at Princeton: Purchasing's Role: The Purchasing Department is the central purchasing authority for the purchase of goods and services for the University. Department's Role: A departmental buyer has the delegated authority to purchase materials, supplies, services, and repairs when these goods and services: Do not exceed $5,000, including tax, freight, and handling charges Do not qualify as equipment Are not for restricted items Do not require a signed contract Do not require on-site labor
F.	Authorized Purchases
	Purchases of goods and services are governed by the Purchasing Department policies and procedures. There are four authorized methods for procuring and paying for goods and services at Princeton: E-Commerce Purchase Order Departmental Credit Card Vendor Voucher / Miscellaneous Invoice
G.	Unauthorized Purchases
	The Transaction Authority Policy clarifies the delegation of authority to individuals employed by Princeton University to commit to transactions and obligations with outside parties on the University’s behalf. The Purchasing Department has the authority to enter into purchase agreements for the procurement of goods and services. Individual faculty and staff members are not authorized to enter into agreements on behalf of the University, or to bind the University in any manner, for goods and services purchases. New Jersey 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.
H.	Competitive Bidding
	A minimum of three written quotations for requirements totaling $5,000 or more. All competitive bids will be solicited by the Purchasing Department following the Purchasing Department Policies and Procedures. In addition, the Purchasing Department reserves the right to obtain competitive quotations regardless of dollar value whenever, in its judgment the quotations may best serve the interest of the University.
I.	Sole Source Justification
	A sole source purchase is one where there is only one vendor capable of providing an item or service, and therefore it is not possible to obtain competitive bids. A single source purchase is one where there are multiple sources of supply, but for specific reasons the item or service must be purchased from a specified vendor. The requisitioning department must complete a Sole Source Justification Form to justify such purchases.
J.	Identification of Need
	The logical first step in the purchasing process is the identification of your need. A useful way to organize your thoughts about the specific need and to identify the parameters of a potential purchasing relationship is by creating a Statement of Work (SOW). The SOW is a document that sets forth in detail the specific responsibilities of each contracting party as well as all tasks and milestones that must be reached in order for your department to successfully meet its objectives. The SOW will become the basis for the most essential business terms in your contract with a vendor or service provider.
K.	Vendor Selection
	Once you have identified your department’s need, the next step in the purchasing process is to select a vendor or service provider in accordance with University requirements. • Purchasing manages over 400 contracts with vendors or service providers that have been leveraged into cost savings. Contract vendors are preferred suppliers and should be your first choice. • If you are seeking to purchase from a non-contract vendor, then a minimum of three written quotations are required for transactions totaling $5,000 or more. • If you are unable to obtain competitive bids, the requisitioning department is required to complete a Sole Source Justification Form to justify such purchases. Failure to consult with Purchasing before selecting a vendor or service provider for the purchase of goods or services could result in an engagement or a contract that does not comply with University contracting requirements and does not adequately protect the University. For certain transactions, depending upon the nature, scope and/or dollar amount, Purchasing may have the sole authority for vendor selection. Price is not the sole determinant; factors evaluated prior to the selection will include price, product quality, and past performance. It is extremely important that no commitments, expressed or implied, be made to vendors before the transaction has been approved by Purchasing.
L.	Formalizing the Contract
	Once you have identified your department’s need and selected a vendor or service provider, the next step in the purchasing process is to formalize the agreement with the other party in a written contract that clarifies each party’s obligations and includes provisions that protect the University against risk. Purchasing can help familiarize you with the University’s contracting requirements for purchasing goods and services, provide University-approved contract forms that can be adapted to your purposes, and assist in negotiating specific terms. Failure to consult with Purchasing before entering into a contract for the purchase of goods or services could result in an engagement or a contract that does not comply with University contracting requirements and does not adequately protect the University. For additional information and guidance on written contracts, please refer to the Contracting Website.
M.	Performance / Payment
	The final step in the purchasing process is performance / payment. For most purchasing transactions, this means that the outside party will provide goods or services to the University and in return the University will pay a sum of money. If you contract on behalf of the University, it is your responsibility to ensure that the University fulfills its contractual obligations and, in the event the other party fails to fulfill its contractual obligations, the University enforces its rights. If any questions or issues arise regarding performance of a contract or enforcement of the University’s rights, please contact the Purchasing Department for assistance.
N.	Sales Tax
	The University is exempt from state sales tax. Upon request, the Purchasing Department will furnish a copy of the University's tax exemption certificate with the purchase order. The Purchasing Department maintains a list of all states where the University is exempt from sales tax.
O.	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 agreement with the University. The Purchasing Department 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.
P.	Personal Purchases
	The Purchasing Department 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 the Purchasing Department and will be returned to the requisitioner if the purchase is inappropriate.
Q.	Conflicts of Interest
	Employees of Princeton 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.
R.	Gifts and Gratuities
	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 Purchasing in advance. Gifts which are promotional items without significant value (less than $25), 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 college 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.
S.	Capital Equipment
	Capital equipment is defined as those items which individually cost more than $5,000 and have a useful life of one year or more. Capital acquisitions are identified in PeopleSoft and e-commerce orders and then transferred to the asset inventory program. Purchasing 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.
T.	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. Purchasing manages this program to ensure that federal acquisition, funding and disposal regulations are met.

(Rev - 06/08)