Departmental Purchasing of Goods and Services Overview
Purchasing Process Overview
The HokieMart is the electronic marketplace used within the university to efficiently process all purchasing transactions. The HokieMart has the capability to accept all transactions that are directed to commercial suppliers. It is our intention to add all internal university service centers for goods and services (examples: printing, motor pool, software sales, etc) to the HokieMart in its future development.
The purchasing process begins with the entry of a requisition into the HokieMart at the department level. HokieMart workflow carries the requisition to designated individuals for departmental approval. Following approval, the workflow will encumber funds and will carry the requisition through one of several channels that are appropriate to the dollar value and type of transaction being enacted.
At the conclusion of the process, the requisition will be converted into a purchase order that will be conveyed to the supplier and the information related to the purchase will transmitted from the HokieMart into Banner financial records.
University Policy 3015, Contract Signature Policy and Procedures, delegates to department heads the authority to enact purchases of goods and services valued up to $2,000 per transaction. Department heads may select faculty and staff within their department to exercise this authority. However, the department head remains responsible for the correct exercise of delegated purchasing authority and must ensure that personnel are properly trained and supervised; that all rules and procedures are followed; and that prices being paid are fair and reasonable.
At dollar amounts up to $2,000, price competition among vendors is not required, but is certainly encouraged. Once the vendor is selected, a firm fixed price, inclusive of all charges for handling, shipping, tax (if any), etc., should be determined and a HokieMart requisition prepared.
Generally, requisitions that are valued at $2,000 or less will be converted by the HokieMart into purchase orders and will flow directly to the supplier. Requisitions valued above $2,000 will flow to the central purchasing office for their action and may flow through intermediate electronic approval steps depending upon the nature of the request and funding cited. The central purchase office will convert high-value requisitions into purchase orders following completion of competitive action.
There are several exceptions to the $2,000 purchase delegation:
HokieMart catalog suppliers: orders in an unlimited amount may be placed with designated contract suppliers who have placed catalogs in the HokieMart, except for computers that are capped at $20,000. Following departmental approval HokieMart workflow will carry such orders directly to the contract supplier and they will not flow to the central purchasing office.
Direct pay transactions. University Policy 3220, Direct Payment Procedures, designates specific transactions that do not require competition and may be enacted at the department at dollar levels that may be above $2,000. The Hokiemart contains a special form for enacting direct pay transactions.
Contract Purchases. Purchasing has established a group of term contracts that provide for ongoing needs for goods and services. The Hokiemart contains a special form for enacting contract payment transactions. To properly use this form, the correct university or state contract number must be cited.
Restricted items. There is a group of goods and services that are restricted from the use of state funds, or require supplemental internal review before they can be purchased in any value.
The intent of these policies is to provide flexibility to departments to take care of their basic and continuing support requirements in an efficient and timely manner. When making a purchase, first consideration should be given to university and state contracts. Consideration should also be given to using either a small, minority-owned or women-owned business. Finally, it is everyone’s obligation to ensure that we are obtaining goods and services at what we believe to be a fair and reasonable price.
The Departmental Purchasing Procedures and Guidelines page provides links to more detailed information regarding the rules and procedures for departmental purchasing. Personnel who regularly conduct departmental purchasing should attend a training session and become completely familiar with the detail of these procedures.
Last Updated: July 12, 2007