Purchases over $100,000 must either be competitively bid or support a sole source justification, unless your purchase is using a UCOP Agreement vendor that is NOT on a Price Schedule. Awards for purchases over $100,000 must be based upon either lowest cost or the lowest Cost Per Quality points. See the Bidding Process for further details.
Frequently Asked Questions
UCSB is not exempt from sales tax, except when items are purchased as property using federal funds where the title to that property vests with the Federal Government or for resale (where sales tax is collected on the final sale, such as for the Bookstore). For most purchases made out-of-state, the State of California will assess a sales tax (called a "use tax"). Therefore, all purchases shall have applicable sales tax applied to their order.
Charges for fabrication labor (work done in creating, producing, or assembling a product) are generally taxable, whether the vendor itemizes the labor charges or includes them in the price of the product. Examples of fabrication labor include furniture setup and delivery as well as manufacturing a new piece of machinery. More information can be found on the State Board of Equalization website.
Any employee reimbursements, regardless of the purchase price, need to be routed through Accounts Payable.
Any onsite service or delivery requires that the vendor provide the UC with a Certificate of Insurance with all the required liabilities and limits. Some examples of purchases are:
1. Installation on any of our campus sites
2. Any deliveries
3. Onsite training
4. Onsite maintenance, calibration or repair
5. Moving services
6. Charter services for bus, boat and aircraft
7. Other services such as, but not limited to: landscaping, pest control, waste removal, cleaning services, security service, and shredding service.
All University employees are subject to Office of the President's Policy on Acceptance or Offering of Gifts and Gratuities by University Employees that states in part:
It is the policy of the University of California that its officers and employees shall comply with the provisions of state and federal law governing the acceptance of gifts and gratuities. In addition to compliance with the requirements of law, University officers and employees must avoid the appearance of favoritism in all of their dealings on behalf of the University. All University officers and employees are expected to act with integrity and good judgment and to recognize that the acceptance of personal gifts from those doing business or seeking to do business with the University, even when lawful, may give rise to legitimate concerns about favoritism depending on the circumstances. If a University officer or employee has any question regarding the propriety of a gift, disclosure of the gift or proposed gift should be made to a supervisor or other appropriate University official for a determination of the proper course of action
For further details on this policy, visit: http://policy.ucop.edu/doc/1200366
It is the University's policy to separate an employee's University and private interests, and to safeguard the University and its employees against charges of favoritism in the purchase of goods and services. Purchase of goods or services from any officer or employee of the University or from a near relative of any officer or employee is strictly prohibited unless the employee's position entails teaching or research duties. If the employee is performing teaching or research, an exception can be granted if such goods or services are not available either from other commercial sources or from the University's own facilities. (See BUS-43, part 7: Conflict of Interest).
A contract is legally binding and:
- documents services to be provided
- serves as an authorization of University funds for payment of services
- helps avoid misunderstandings by clearly stating responsibilities of both parties
Purchasing and Communication Services would like to announce the creation of a service to assist you or your department with the set up and maintenance of business related cellular phones and other portable communication devices. This service is designed to assist department personnel that have a critical demand for expert support services beyond the capability of their home department.
- Additionally, Communications Services provides a concierge type of service that, on a recharge basis, will:
- Assess your department needs
- Research and recommend plans and devices
- Act as your agent in establishing your department’s ongoing service relationship with your carrier
- Identify training resources for the devices you choose
Please contact them at firstname.lastname@example.org or Tammy Marquez at x5718 if you have any questions.
The OfficeMax catalog in Gateway provides refurbished toner. For those of you still wanting to use the local company, Laser Cartridge, just choose the non-catalog option in Gateway.
These items are now all purchased through Gateway.
2012/2013 Fiscal Year
High Value PO Dollar Dollars Committed = $72,496,819 and 3,264 transactions
Flexcard Spend = $8,684,120 and 23,307 transactions
Low Value Spend = $6,551,462
2011/2012 Fiscal Year
High Value PO Dollar Dollars Committed = $59,735,747.00
Flexcard Spend = $7,371,706.00
Maintenance can generally be submitted through a PO: The ongoing upkeep of buildings, equipment, roads, grounds, and utilities required to keep a Facility in a condition adequate to support the University's academic, scientific, and public service functions. It consists of the preservation, but not the improvement of buildings and grounds. Maintenance is generally on a routine or recurring basis, and may be to bring equipment back to a fully functional state. However, if a replacement is needed for the purpose of upgrading a system, it is not considered maintenance.
Construction is the act, art, or business of moving, demolishing, installing, or building a structure, facility, or system according to a plan or by a definite process. Construction consists of the application of any of these techniques to physical plant facilities such as structures, utilities, excavations, landscaping, site improvements, drainage systems and roads, and additions, deletions, or modifications of such facilities. Exterior and interior painting of new structures is a form of construction. Painting, while seemingly maintenance, is generally deemed construction.
The Storehouse transferred all forms to the UCEN Bookstore as of June 1, 2013.
When the University of California enters into Vendor Agreements, we’re looking at a total savings UC-wide. We’re looking for Total Cost of Ownership; which is the pursuit of suppliers that can deliver the best overall value in cost, quality and service over time. The sticker price of a non-catalog item is not always what you can end up paying over time; UCOP Agreement vendors provide warranty, free shipping, returns, and customer service that non-catalog vendors generally do not provide. The UC and all UCOP contract vendors have agreed to and signed common Terms and Conditions to protect us from any unforeseen issues that non-catalog vendors may present – such as no returns, unexpected shipping fees, no warranty, distributor fees, etc.
Having catalog items readily available in Gateway with our UCOP Agreement vendors saves time (and therefore money) across the board, rather than spending your time and admin time processing “non-catalog” quotes. While some products in the UCOP Agreements catalogs may be priced higher than you are able to find elsewhere, many of the commonly used products are provided at deep discounts. The UCOP Contracts are negotiated based on bulk and recurring need across all 10 UC campuses. Some products offered at the discounts are due to the fact they are education grade; some other products are offered at retail pricing because they aren’t directly negotiated to be discounted further.
The University of California has standard Terms and Conditions of Purchase that are attached to every Purchase Order in Gateway. Many vendors include terminology on their quotes stating their terms govern any order arising out of use of their quote. If the requisition comes to Campus Purchasing, we will strike the conflicting provisions and proceed with our terms on the PO. Any orders using a quote that departments have delegation of authority over should be reviewed for term and condition language. Contact us if you have any questions.
Thermo Scientific and Fisher Scientific have many subsidiary companies. Fisher Scientific's UCSB rep, Bill O'Donoghue (email@example.com) will accept any PRODUCT order for any of the Fisher or Thermo companies. If the product is not in the Gateway catalog or Punchout, Bill is happy to provide a quote and you'll need to setup a Non-Catalog order with Fisher Scientific.
For any SERVICE orders, Thermo Fisher Scientific Ashville is the appropriate vendor. Please note: Thermo Fisher Scientific Ashville ONLY accepts service orders. They will NOT fulfill product orders. Please call 800-438-4851 if you need service.
If you have any questions, please feel free to call Purchasing at x8025 or email Bill directly (firstname.lastname@example.org).
No, While the University has granted Purchasing Authority up to $10,000 dollars at the department level for purchase orders, only central Procurement has Signature Authority. Any document requesting signatue that binds the UC into terms and conditions must be reviewed by Procurement. Additionally, any contract signed by someone without Signature Authority is considered void by the Government because Implied Authority is not valid in the UC system.
If the order is on requires Commodity Approval, a restricted commodity, uses federal funds, or is non-catalog over $9,999.99, a quote is required. Procurement Services requires proof of pricing, whether it be on a quote, email from the vendor, or screenshot of a marketbasket with a timestamp. Backing up your purchase requisition with pricing information such as a quote, email with pricing, or screenshot of website pricing will support and assist if any transactional issues were to arise with invoicing and audits. Here are a list of reasons why obtaining a quote is necessary:
- Pricing remains firm for 30 days or more depending what is on the quote, that way the vendor can't increase the pricing.
- A quote is needed to compare information on the requisition to make sure everything is entered correctly. Ex. Part # or price.
- A lead time is necessary for the department so they know when to expect the goods. (make sure items are in stock)
- Who pays for shipping and what are the terms of payment? There are a times when payment is not net 30 and the vendor wants prepayment or 50% down.
- Warranty information is sometimes listed on the quote which can be helpful if your item breaks down before the warranty period is over.
- What country the items are coming from can be listed on the quote, which allows the Buyers to add a Customs Broker to the order.
Honoraria payments for speakers or lectures do not require any form of Contract. Please prepare Honoraria on a Form 5, with backup; either an invitation or schedule of the event they are participating in. Accounts Payable will need the home address and TID#. If any they are NON US citizens, contact Accounts Payable at x4288, as you will need additional processing information.
The Office of Public Affairs handles all News/Educational filming transactions. Contact Procurement if you have a for-profit/commercial filming requirement.
No. The California Public Contract Code, Section 10365.5, states no person, firm or subsidiary thereof who was awarded a consulting services contract may be awarded a "follow-on" or "successor" agreement for the services or goods which are required as an end product of the consulting services contract.
Per Article 2 of the Uniform Commercial Code, the UCSB Purchase Order is considered a contract by way of acceptance or fulfillment on both sides. The terms at the bottom of a quote are typically in conflict with the provisions in our standard UC Terms and Conditions of Purchase; therefore, it is important for UC faculty and staff to leave quotes unsigned. Submitting the Purchase Order to the vendor, referencing their quote #, fulfills the order under the UC terms of purchase.
The UC Accounting Manual for Disbursements (D-371-16) governs the level of approval, and method of procurement for non-payroll transactions, including Reimbursements, entertainment, travel, consultants, honoraria, memberships, and moving expenses, among other things.
The Best Buy store in town will not take a PO, but we do have a UC business rep that will take a Purchase Order. Michael Jennings, at 612-292-0440, can help with SKU's, or you can find the product at www.bestbuy.com. Once you have your SKU, enter a Non-Catalog PO in Gateway to Best Buy, and the order will fax to Michael. He will place the order on our behalf, and can place the order for in-store pickup. If you want in-store pickup, either type "In-Store Pickup" on the PO, or call Michael after you send the PO in Gateway to get the order placed right away. The item(s) and invoice will be sent to the address indicated on the PO.
There are many suppliers in the ink and toner business calling campus trying to get business. If you have a maintenance contract with Xerox, Ricoh, or Canon, no other company is authorized to tell you your warranty is void or agreement will expire unless you buy their toner. In addition, some vendors have been sending unsolicited toner cartridges to departments, then invoicing and expecting payment. Please do not use these toner packages. Procurement has filed claims against some of these vendors through the Better Business Bureau. If you encounter a similar situation, or feel uncomfortable about a vendor solicitation, let us know.
While we don't have a systemwide contract with Costco, Walk-In Purchase Orders are accepted at the local store for goods (Memberships are not paid with a Purchase Order; see below for details) with the following procedures:
- Visit the Membership Counter prior to shopping. Costco will require your department have a Business Membership. To set that up, Costco may require paper documentation proving you work for the UC (that could be in the form of a paystub, website print-out, or directory listing), and may require to see your Driver's License to prove you are who you say you are. Cards may be issued to the indivudal names, not the UC department.
- UCSB has a signed a fairly benign Master Contract with Costco, where any dept on the attached Department List can purchase off the Agreement.
- UCSB limits the membership to the Business card priced at $55. Executive Memberships are NOT allowed, and Costco no longer provides "Corporate" accounts. These will be standard accounts that are just paid by UCSB.
- Memberships are restricted to up to 6 cards per account. Each $55 includes just 2 cards.
- Once you have the membership, you may execute Walk-In PO's in Gateway.
- Take your printed out Walk-In PO to the Membership counter, and walk away with your product(s). Costco will provide you with an Invoice, that you would send over to Accounts Payable.
To pay invoices, please write your Gateway Walk-In PO # on the invoice, and send the product invoices to invoicesONLY@bfs.ucsb.edu.
Membership invoices ($55) cannot be paid on a purchase order, but should be processed on a Membership Form 5 directly to Accounts Payable. Please contact Accounts Payable for membership questions.
The Vendor Blanket Form in Gateway is like a checking account; you set up a fixed amount on the order, and as invoices are charged against it, the total amount of your order "draws down".
- Vendor Blankets (VB) may be setup for a one-year initial period, and may be extended using the Vendor Blanket Revision Form for one-year increments. As a best practice, VBs should not cross fiscal year boundaries.
- VBs cannot be backdated; the authorization to purchase must exist prior to accepting services.
- VBs associated with a UC contract or a UCSB bid can be set up through the contract end date to match the contract terms.
- VBs expired two months or longer are considered permanently expired, and you'll need to setup a new VB if your department wishes to continue doing business with that vendor.
- VBs should only be used for services that are recurring throughout the year in nature, such as temporary personnel invoices, copier or equipment maintenance, and trash pickup.
- Please note, most services (including delivery) require insurance. Obtaining insurance may add processing time to your order.
- If the annual expenditure for the VB exceeds $100k, we may need go out to bid, unless a bid has already been awarded through Procurement or UCOP.
- If the vendor supplies items with the UC name or logo, the vendor must register annually with Learfield. Please contact Carol Cox at the bookstore with any questions about this requirement
In the description box, use the following example text: "Provide copier maintenance services to the University of California, Santa Barbara, xxxx Department for the period of 7/1/20xx - 6/30/20xx. Copier Model # xxx and Serial Number xxx. Rates as follows: xxxx. Account Number as follows: xxxx"
Security cameras are a very sensitive topic, and can have Union implications. Orders for security cameras need to be routed through ETS to ensure the system(s) are compatible with our UC monitoring software, and are installed with a licensed contractor through the Design & Construction department. Please do not purchase a camera from Costco or Best Buy and install it yourself. An upcoming (4/2/2015) policy will be announced to the campus.
The UC has entered into primary contracts with Santa Barbara Airbus, American Star Trailways, and Ryan's Express for local bus services. American Star Trailways has two locations; SLO and Ventura, and is part of Trailways National, which can be used nation-wide. You have the option to use a purchase order in Gateway, or pay the invoice on a check request through Travel & Entertainment (Annette Gonzales). *IF YOU want to use FLEXCARD or a CHECK REQUEST*, we reccomend your department contact Karen Jeffers in Procurement to verify insurance is acceptable and a satisfactory safety rating for the bus company.
Beginning on July 1, 2014, the University may qualify for a partial exemption of sales and use tax on certain research and development equipment purchases and leases. To be eligible for this partial exemption, your purchase must meet all three of these conditions:
- Be engaged in certain types of business, also known as a “qualified person.”
- Purchase “qualified property.”
- Use that qualified property for the uses allowed by this law.
For eligibility and process questions, please contact Steve Kriz in Accounts Payable, or view the CA BOE's website:http://www.boe.ca.gov/sutax/manufacturing_exemptions.htm#Qualifications. The Certificate form can be found here: http://www.boe.ca.gov/pdf/boe230m.pdf
Sponsorships (including monetary exchange for banners, signs, and tables at events) and Membership fees or payments are paid by Accounts Payable directly. Any questions about backup documentation or policies can be directed to Annette Gonzales at x7037.
Risk Management no longer requires prior approval to insure all domestic orders exceeding $100,000. The entire amount of a purchase exceeding $100,000 can be covered by the UC's insurance during transit, but a conversation should be held with Risk Managment for each purchase to address the shipment details, and to allow Risk to provide further recommendations. For example, Risk might recommed that a receipt signature be required, rather than FedEx/UPS "dropping" the box off at a door.
For international orders, if the vendor is paying for all transportation and insurance charges, AND is the Importer on Record through Customs, then the department does not need to apply for transit risk insurance. If, however, the UC is paying for all transportation charges, then your department will need to apply for Transit Risk Insurance. (See http://www.ehs.ucsb.edu/riskmanagement/transit-risk-insurance)
Procurement will work with your department on international purchases, and domestic purchases exceeding $100,000 to ensure Risk Management is roped in. A proactive approach is appreciated, however, by including a copy of an email between your department and Risk with the determination. Questions about Transit Risk Insuance can be sent to email@example.com, or call 893-2860.
The following are examples of how to substantiate Price Reasonableness, together with a discount (discount alone is not justifiable), in order of preference:
- Price competition - comparison of quotes
- UCOP, State, or GSA contract pricing, or comparison with prices under these existing contracts
- Prior price history, or comparison with current or recent prices for the same or similar item(s). Reasonable inflation/market changes are allowable.
- Market Research, and/or catalog or established price list (sales to the general public)
Per OMB eCFR §200.323, the University must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. A cost plus percentage of cost cannot be used.
Per FAR 15.404.4(c)(4):
(i) The contracting officer shall not negotiate a price or fee that exceeds the following statutory limitations, imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 3905:
- (A) For experimental, developmental, or research work performed under a cost-plus-fixed-fee contract, the fee shall not exceed 15 percent of the contract’s estimated cost, excluding fee.
- (B) For architect-engineer services for public works or utilities, the contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of construction of the public work or utility, excluding fees.
- (C) For other cost-plus-fixed-fee contracts, the fee shall not exceed 10 percent of the contract’s estimated cost, excluding fee.
(ii) The contracting officer’s signature on the price negotiation memorandum or other documentation supporting determination of fair and reasonable price documents the contracting officer’s determination that the statutory price or fee limitations have not been exceeded
While there is no policy prohibiting the use of an Auction for purchasing, the department should keep records documenting the purchase. Because auctions typically "bid up", your department will need to ensure rationale for price reasonableness is established. Prior research can be done to compare prices and agree on a price cap.
Additionally, some Auction houses may have terms and conditions for the purchase. These are often non-negotiable, and pop up after the award has been made.
When you look at the price of auction items, the savings may seem substantial. Be aware, however, that reasons for the low price may include:
- limited or no warranties
- no return policy
- uncertain history and condition
- additional, non-negotiable shipping and handling fees
If a department wishes to engage outside vendors in a Sponsorship arrangement, whereby the Sponsor gives your department a sum of money, and in exchange your department provides in-kind benefits such as marketing, radio spots, event tickets, table/booth, company banners, etc. , you will need a contract. The UCSB Policy titled "Gift/Grant/Contract/Sponsorship Determination" governs Sponsorships.
- Sponsorship Agreements should be routed through Procurement Services by sending a request to firstname.lastname@example.org
- Procurement will work with the Office of Finance and Administration to review and approve the fair market value of the sponsorship venefits. The Office of Finance and Administration is responsible for valuing the benefits and to determine the value of any quid pro quo benefits.
- Sponsorship agreements must be approved prior to advertisements, promotions, or other activities involving the sponsor entity.
- Sponsorship proposals shall include a description of what the sponsor will provide to the University, and the estimated fair market value of the product or service what the University will provide
- For more on this policy: http://www.policy.ucsb.edu/sites/www.policy.ucsb.edu/files/docs/policies/gifts-grants-contracts-sponsorships.pdf
If an external entity wishes to provide funding to your department without an in-kind benefit, this is likely a gift or donation, and Development or Instituional Advancement should be consulted.
As always, contracts should only be signed by those with Delegation of Authority. Please route your contract request to email@example.com