University Procurement Contracts
About This Policy
- Effective Date:
- Date of Last Review/Update:
- Responsible University Office:
- Procurement Services
- Responsible University Administrator:
Vice President and Chief Financial Officer
- Policy Contact:
Associate VP, Office of Procurement Services
- Policy Feedback:
- If you have comments or questions about this policy, let us know with the policy feedback form.
- Print or view a PDF of this policy
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Reason for Policy
Purchasing has established many contracts for goods and services. University employees should purchase goods and services through these contracts in order to consolidate the University's transactions. Consolidating spend permits the University to negotiate agreements offering greater discounts, better service and additional guarantees.
ProceduresFaculty and staff should use P-Cards and Automatic Purchase Orders (APO) with non-contracted suppliers only when the goods or services are not available through an established contract.
Purchasing staff will audit P-Card and APO transactions to determine compliance with the policy.
Accounts payable will also monitor requests for reimbursement on Disbursement Vouchers (DVs) for similar transactions where faculty or staff have used personal funds to secure goods or services and have sought reimbursement from the University.
If a faculty or staff member is aware of problems with an established agreement, he or she should contact the purchasing department regarding the issue for resolution. Similarly, faculty and staff should contact the purchasing department to develop contracts that would help streamline the procurement process.
Automatic Purchase Orders: Requisitions of small dollar amount that is generated and approved within the requesting department.
Disbursement Vouchers: A Disbursement Voucher (DV) is a transaction that enables payment directly to a payee for very specific goods or services as outlined by the Office of Procurement Services and Financial Management Services.
B2B– Business-to-Business: B2B catalogs may be accessed through the KFS system in One.IU. These catalogs provide contracted pricing and direct order placement to suppliers.
P-Cards: Procurement cards are issued by the University to departments, faculty and staff for small dollar transactions with suppliers who will not accept purchase orders or APOs but will accept p-cards.
The purchasing department has established many agreements for goods and services, available either through the B2B system or on the procurement system, to provide for ease-of-use procurement transactions. These systems allow for the creation and approval of requisitions within the requesting department without further action from the purchasing department.
With the introduction of the P-Card, also developed for the convenience of faculty and staff for small dollar transactions, we have witnessed the use of P-Cards and APOs merely for convenience and without regard to the cost savings, enhanced services and warranties afforded by university agreements. In instances where an employee has spent time and resources searching for product that is currently on contract, there is additional cost to productivity. When pricing can be identified for a particular item that is better than the contracted pricing, overall benefits and total cost of ownership must be weighed. When these instances occur purchasing should be made aware so that the entire University community may be able to benefit from an improved contract price.
Undirected transactions reduce the overall purchase volumes on our contracts, thereby weakening the University's future bargaining position with suppliers. The University community shares in the responsibility for the development and maintenance of excellent contracts for goods and services.