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Other Procurement Related Issues
Code of Ethics
Any University employee involved in purchasing goods or services must fully comply with the National
Association of Educational Procurement (NAEP). Code of Ethics which includes the following:
- Priority will be given to the objectives and policies of Auburn University.
- Seek maximum value for each expenditure.
- Do not accept any personal gifts or gratuities.
- Give each supplier fair and equal consideration, within the parameters of law and University policy.
- Foster ethical trade practices and conduct business honestly and with good faith. Demand the same standards from suppliers.
Contact
Procurement and Payment Services at 844-7771 for a complete list.
Debarred/Suspended Vendors
Auburn University does not conduct business with vendors or individuals who have been debarred, suspended, or declared ineligible as defined in the Federal Acquisition Regulation (FAR 48 C.F.R Ch 1 Subpart 9.4).
Freight
When making any purchase which will require shipping - you should have an understanding of whether shipping charges are to be paid by the supplier or the department. Your Purchase Requisition should include the approximate costs of charges to be paid by the department. When possible, avoid paying freight by specifying FOB Auburn.
Freight Terms
Destination -
This term indicates that the University assumes responsibility for goods only when they have been delivered in satisfactory condition.
Shipping Point -
The University assumes responsibility for the goods when they have been delivered to a common carrier. It does not waive the University's rights to refuse the goods if they are not in an acceptable condition.
Prepaid -
The shipper pays for delivery.
Prepaid/Add to Invoice -
The University pays for delivery. The shipper will pay costs and then bill the University. The cost will either be included on the invoice with purchased items or billed separately.
Collect -
The University pays the carrier directly for shipping costs.
Delivered/Installed -
The vendor pays delivery costs and installs the goods.
Other terms may specify the method of shipment, the common carrier, and the responsible party.
Payment of Freight
Freight charges should be coded the same as the item purchased.
Purchases of Animals
All live vertebrate animals at Auburn University must be covered or permitted by an approved Animal Subjects Review Form from our AU Institutional Animal Care and Use Committee (IACUC). That form is commonly called an Animal Protocol and it specifies the kind and number of animals that are authorized and how they can be used. A copy of the signature page of that form must be forwarded to PPS. Animals can be ordered by the Principal Investigator (PI) until they reach their protocol limit. Since feeder fish are live vertebrate animals they would have to be covered on a protocol as well to insure their proper care and number used.
Purchases of Used Equipment
Used equipment of suitable quality may be purchased when it saves money.
A requisition for used equipment should state that:
- The requester has inspected the equipment;
- The equipment is in suitable condition;
- The University's best interests will be served by the purchase of this equipment.
Procurement and Payment Services is responsible for assuring that the purchase price is reasonable.
Competitive bidding is to be used when used equipment costs exceed $7,500.
Purchases of Radioactive Materials
The Radiation Safety Office is responsible for approving all purchases of radioactive materials, processing all radioactive materials received on campus and overseeing the handling of all radioactive materials.
Departmental personnel involved in the purchase of radioactive materials should be familiar with the Radiation Safety Manual prepared by the Radiation Safety committee.
Purchases of Government Surplus
Contact
Procurement and Payment Services
for information and guidance.
Prepayment of Purchase Orders and Contracts
It is generally the policy of the University not to pay for an item before it is received. Prepayment of purchases is made only with the approval of the Executive Director of Procurement and Payment Services.
Exceptions are:
- Subscriptions, as required.
- Institutional memberships.
- Registration fees for conferences and official meetings.
- State Surplus Property (requires a PO).
Performance bonds or other guarantees may be required in such instances.
To process a request for prepayment, prepare a vendor voucher and attach all available support documentation. Attach a memo requesting a prepay exception and route to Procurement and Payment Services for approval.
Working with Vendors
Any price quotations you receive from vendors are considered informal and for information purposes only. Only Procurement and Payment Services can obtain formal and binding bids/quotes. If you simply need pricing or other information, you may use the Request for Information form (available from
Procurement and Payment Services) or informal means such as catalogues or telephone calls.
On many occasions, the information provided to you by the vendor may contain terms or language that the University cannot comply with. Procurement and Payment Services will insure that our terms and conditions are formalized with the vendor.
Do not commit to a purchase verbally or in writing until it has been authorized following standard purchasing procedures. If the purchase is greater than $2500 and you have obtained an informal quotation from sales representatives, denote the Purchase Requisition number on it and forward it to Procurement and Payment Services.
Some unethical vendors will ship unordered merchandise and then send a bill. Inform Procurement and Payment Services of any questionable billings.
Note: If you have complaints about vendors, contact Procurement and Payment Services (844-7771) for assistance.
Loaner or Demonstrator Equipment
Procurement and Payment Services should be notified when "loaner" or "demonstrator" equipment is left on campus by a sales representative or a vendor.
Retaining such equipment is not a commitment to buy.
Procurement and Payment Services should be informed whenever a vendor wishes to demonstrate a product on campus. Before accepting demonstration equipment, the recipient should notify Procurement and Payment Services. A copy of the form should be filed with both University Risk Management and Property Services; otherwise the University assumes no responsibility for the equipment.
Those using the equipment shouldn't tell the vendor that the loan of demonstration equipment will lead to a purchase. Even when equipment has been loaned, it will not affect competitive bidding or other normal purchasing procedures. If the vendor who has loaned equipment is the successful bidder, new equipment must be supplied unless Procurement and Payment Services and the user accept the loaned equipment at a negotiated lower price.
Unless special arrangements are made with the Executive Director of Procurement and Payment Services, all moving, installation and other associated costs for demonstration or loaner equipment are the responsibility of the vendor. Any costs to the University should be included on a requisition attached to the Equipment on Loan form.
Opportunities for Small Businesses
Since the University is committed to developing its Small, Minority, and Disadvantaged Business suppliers, Procurement and Payment Services will actively seek the participation of such suppliers.
Procurement and Payment Services will aid by instituting procedures which enhance the program and advising University personnel about the program. University personnel who prepare requisitions should be familiar with this policy and cooperate with Procurement and Payment Services in making opportunities available.
For more information about this program, contact Juanita Yancey or Steve Ballew at 844-7771.
Customs Brokers
Shipments from outside the United States must clear U.S. customs. Contact
Procurement and Payment Services
for information on the customs broker which the University uses. The broker will arrange for the shipment to clear customs and be forwarded to the University. Payment of the brokerage fee is the responsibility of the ordering department.
Receiving Shipments Directly From Customs
When a shipment does not go through a customs broker, it is the responsibility of the ordering department to clear the shipment through customs and arrange handling and transportation.
Receipt of Merchandise
To obtain cash discounts and maintain credibility with vendors, invoices must be paid promptly.
Partial shipments generally require partial payment. An original invoice should be used to acknowledge and pay for partial shipment.
If you require that all shipping be completed before any payment is made, indicate that on the Purchase Requisition so that it can be included in the bid specifications.
Damaged, Short, Missing or Duplicate Shipments
The ordering department should quickly inspect all shipments received and report any damage or other irregularities.
Claims filed for obvious damage are generally settled at full value. Claims for concealed damage are generally settled for less than full value. Uninsured losses or losses caused by delayed damage reports will be borne by the ordering department.
Procurement and Payment Services can assist you upon request.
When Damage is Noted at Time of Delivery
- Record damage on the freight bill and obtain the signature of the delivering carrier.
- Open shipment to inspect damage. Note damage on a Damage Report and send a copy of that report to Procurement and Payment Services.
- Notify the freight company and request inspection.
- Send copy of inspection report to Procurement and Payment Services and recommend repair or reorder.
- Procurement and Payment Services will contact you to confirm repair or reorder.
- Send the repair or reorder requisition to Procurement and Payment Services.
- Procurement and Payment Services will order repair or reorder.
- File claim. If shipment is FOB-Destination, send documentation to shipper for filing claim.
Maintain suspense file until claim is resolved.
If replacement is made, find out what the shipper or freight company wants to have done with the damaged material.
When Damage is Discovered After Delivery
- Notify vendor and hold material and packing for vendor to pick up.
- Prepare damage report and send copy to Procurement and Payment Services.
- Request inspection by freight company.
- Follow procedures outlined in previous section.
Shortages or Missing Items Discovered by Ordering Department
Notify vendor of shortages or missing items. Send copies of all packing slips or other documentation to vendor.
Overshipments or Duplicate Shipments Discovered By Ordering Department
- Notify Procurement and Payment Services and obtain directions as to proper disposition. If required, prepare shipment for return.
- Procurement and Payment Services will notify vendor and resolve the problem.
- The Vendor will arrange to have the material picked up.
Return of Merchandise
If what has been delivered meets the Purchase Order specifications, the vendor is not obligated to accept the return. If there is a restocking charge, that charge is the responsibility of the requisitioning department.
The department has the option of requesting that the vendor issue the department a refund check rather than a credit memo. If a credit memo is received for returned merchandise, forward to Procurement and Payment Services, with the corresponding invoice. Include information on PO number, FOAP and the reason for return. The credit memo will be entered into the accounting system so that your University FOAP can be credited. If a refund check is received, it should be clearly marked as a refund and deposited into the FOAP from which the original purchase was charged. The original payment check number should be noted on the collection report
with a copy of the collection report sent to Procurement and Payment Services.
Return to Procurement and Payment Services Spending Policies
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