Procedures for the Processing of Requests for Limit Sum Orders
1. Requests for Purchases for Limit Sum Orders, upon receipt shall be directed to the Procurement Analyst for review to determine the adequacy of specifications and completeness of pertinent information. The Procurement Analyst shall review the requirements with the Buyer prior to the assigning of a Purchase Order number by the Administrative Section and recommend approval of all negotiations to the Director. The Procurement Analyst shall also maintain a log of Requests for Purchases for Limit Sum Orders ensuring the following information is recorded:
2. If justification is not provided with the Request for Purchases by the user department for amounts in excess of $2,500.00, the Request for Purchases will be returned to the department requesting sufficient justification. If necessary, specifications will be obtained to determine if exact requirements can be ordered, or else, consider the Limit Sum Order as a requirement type agreement based on the indefinite quantity and range of products and issue a Purchase Order as an annual requirement with a standing order to deliver to Central Receiving only to ensure orders, shipments and costs are properly monitored, matched and verified.
3. MMD will negotiate with the vendors to establish the basis of pricing acceptable delivery/supply schedule, payment terms and discounts verified by the University. Establish the effective period of the order and determine whether delivery shall be made by the vendor or the University shall be responsible for pickup and identify individual(s) authorized to place orders and/or request services when Limit Sum Order is established, except in the case of multiple Limit Sum Orders issued by the Materials Management Department (MMD). In such a case, only representatives of MMD will be authorized to place orders with the vendor.
4. All negotiations will be conducted in writing with necessary and related information documented.
5. Vendors will be advised of the requirement to submit a duplicate copy of invoice(s) or itemized packing list with each shipment against the Limit Sum Order and submit original copy of invoice(s) to the Comptroller's Office for payment.
6. Buyers will monitor expenditures and advise departments that exceeding authorized or approved dollar limitations without proper authority is a violation of University policy. Repeated violations will result in suspension of the Limit Sum Order and vendor notification accordingly.
7. Buyers will also review and monitor the transactions of Limit Sum Orders closely and advise department representatives and vendors of any irregularities, mismanagement or escalation in costs.