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There are six keys to success for a good working knowledge of the procurement process at Princeton University, from which all University purchasing policies and procedures originate. Understanding and complying with these principles will enable you to be a good steward with the University’s resources.

1. Signature Authority (Who can buy?) - You must have delegated authority to obligate the University to pay for goods and services.
2. Approved Expenses (What can you buy?) - If you are using University funds, they can only be used for purchasing items that are permitted University expenditures.
3. Authorized Methods of Procurement (How can you get it?) - You must utilize one of the four authorized methods for purchasing goods and services.
4. Strategic Supplier Selection (Where can you get it?) - Strategic supplier relationships have been established that leverage the University’s buying power and maximize key supplier competencies to obtain goods and services at the best value.
5. Required Documentation (When should it be bid/in writing?) - A standard set of bid and justification procedures are required to properly document all purchases in order to comply with Federal, State and University requirements.
6. Code of Ethics (Why call Purchasing?) - Purchasing is committed to fair and ethical business practices that promote open and fair competition in the best interests of the University and the success of its supplier relationships.

1. Signature Authority (Who can buy?) - 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. The Purchasing Department has the primary purchasing authority for the University, including responsibility for managing procurement, developing efficient tools for use on a University-wide basis and developing strategies to facilitate commitments to buy goods and services. 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. 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. The Purchasing Department 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.

2. Approved Departmental Expenses (What can you buy?) - The Treasurer’s Office has clearly identified those departmental expense categories that are both permitted and prohibited. Individual faculty members, administrative staff and employees must have delegated authority to sign on behalf of the University. Individuals who do not have delegated authority, and who enter into unauthorized agreements, or acquire goods or services that are classified as prohibited departmental expenses, may be held personally responsible for the cost of the goods or services purchased.

3. Authorized Methods of Procurement (How can you get it?) - There are four authorized methods for procuring and paying for goods and services at Princeton:

1. E-Commerce
2. Purchase Order
3. Credit Card
4. Miscellaneous Invoice

The primary tool, the PeopleSoft Financials system, or a Purchasing- authorized alternative methodology, should be used for acquiring the necessary goods or services. Each of the above listed procurement methods follows specific approval workflows, and has its own strengths. Purchasing has identified the methodology that is most applicable in each case.

4. Strategic Supplier Selection (Where can you get it?) - Purchasing is responsible for selecting with the best sources of supply for the University. The Purchasing Department employs a vendor contracting strategy to establish strategic supplier relationships that leverage the University’s buying power and maximize key supplier competencies to create cost saving opportunities as well as identify state-of-the-art buying tools to benefit the entire campus community. Through these initiatives, Purchasing seeks to obtain goods and services at the best value. Value is assured when the goods and services are obtained in a timely manner, at an appropriate level of quality, with reasonable cost, through an appropriate level of competition, and in accordance with applicable Federal, State and University regulations. The following factors in combination, not necessary listed in their order of importance, will be considered: price, supplier's previous record of performance/service, ability of the supplier to provide satisfactory goods and services, quality and conformation to specification, use of substitutes, rebates, and administrative cost reductions. If the products or services offered by each supplier were of equal quality, if each supplier promised the same delivery date and if there were no other considerations, the selection would typically be awarded to the low bidder.

5. Required Documentation (When should it be bid/in writing?) – All University purchases are made in accordance with the University Purchasing policies regardless of the source of funds. A standard set of bid and justification procedures are required to properly document all purchases to comply with Federal, State and University requirements. This documentation shall be sufficient to constitute a complete history of the actions associated with the establishment of the order for the purpose of: 1. providing a complete background/history on the order; 2. supporting any actions taken; 3. providing information for review and investigation; and 4. furnishing essential facts in the event of a dispute.

• A. Competitive Bidding - Bids should be solicited whenever the items can be purchased from multiple sources to promote competitive bidding. Quotations, either verbal or written, are recommended for requirements totaling up to $5,000 in value. A minimum of three written quotations for requirements totaling $5,000 or more. Those items considered sole/ single source or proprietary must be properly justified. Quotations for requirements over $5,000 must be in written form. All pricing and other information furnished by the vendor during the competitive bidding process must remain confidential. Purchasing has a commitment to provide support for small business concerns of all types, and to ensure that the University includes the maximum practical number of small businesses in the competitive bidding process in an effort to comply with Executive Order 11246 and Public Law 95-507 reporting requirements.
  
  
• B. 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. For purchase transactions exceeding $5,000 in total value when it is deemed that there is only one viable source for the item or service that is essential to the needs of the University, and it has been determined that competitive bidding is not possible, the requisitioning department will be required to complete the Sole Source Justification Form. An order will not be placed without proper documentation, including a written quotation from the awarded vendor. Purchasing has the authority to review and challenge any order.
  
  
• C. Approvals and Special Conditions - Approvals and special conditions are contingent upon several factors, which may include the nature or purpose of the materials to be purchased, project/grant numbers, and monetary value. Accordingly, if prior approval of the appropriate institutional office is required before Purchasing Department approval may be granted, it must be obtained in advance.
  
  

6. Code of Ethics (Why call Purchasing?) - Purchasing serves as the intermediary between the campus community and vendors to ensure impartiality by maintaining the proper separation of duties. Accordingly, all vendor price quotes should remain confidential, as revealing them undermines the competitive bidding practice and opens the door to potential legal actions. Purchasing is committed to fair and ethical business practices that promote open and fair competition in the best interests of the University and the success of its supplier relationships. Purchasing abides by the National Association of Educational Buyers Code of Ethics.