Purchasing Policy
The following links have been provided
as resources for information regarding the University of Maine's
Purchasing Policy.
Please select from the list below:
•
Administrative Practice Letters (APL)
•
Conflict of Interest
• Independent Contractors
•
Leases
•
Personal Purchases
•
Purchases greater than $2500.00
•
Purchasing ON-LINE
•
Reimbursement for Taxes, Tips & Alcohol
•
University Contracts
Conflict of Interest
[-top-]
People who are both an employee of the
University and a vendor to the University have either a conflict of
interest situation or the appearance of a conflict of interest. These
situations must be reviewed and approved by the Chief Financial Officer
before a transaction can take place. The Conflict of Interest Policy
approved by the Board of Trustees in May 1991 is available from the
University of Maine System Office, 16 Central Street, Bangor, Maine 04401
and the University of Maine Policy is available from the Chief Financial
Officer or the Purchasing Department.
Independent Contractors
[-top-]
The IRS requires that the hiring of
INDIVIDUALS (or a business owned by an individual that is not a
partnership or corporation) be done only after a determination has been
made as to whether the person should be hired as an employee or an
Independent Contractor according to IRS definitions. At the University
of Maine, the Department of Human Resources makes this determination on
a case by case basis.
If it is determined that the individual
should be hired as an Independent Contractor, the service will be
treated like any other purchase. In addition, a Personal Services
Contract must be signed by the individual and the University Purchasing
Department as described in APL VII-H.
Leases
[-top-]
In general leasing equipment is more
expensive than buying and departments should refrain from making
commitments on funds that have not yet been appropriated. However, on
occasion, it makes sense or is absolutely necessary to enter into a
lease for equipment. The lease process can be very time consuming;
leases are subject to review by legal counsel and signatures at the
University of Maine System level. Leased equipment is not exempt from
the competitive process, i.e., quotes are obtained for both the purchase
price and the lease cost. The Purchasing Department manages a master
lease that is usually less expensive than a lease provided by a
manufacturer, but is not available for all purposes.
Personal Purchases
[-top-]
Purchases of goods or services for
personal use through the University accounting system are strictly
forbidden.
Purchases Greater than $2500
[-top-]
As stated in APL VII-A, Purchases are
subject to a competitive process (see VII-A for exceptions). If the
purchase is over $10,000, the competitive process must be documented by
the Purchasing Department. If the purchase order is over $10,000, written
quotes must be obtained. If the purchase is over $50,000 a formal sealed
bid must be done by the Purchasing Department. To avoid delays in
obtaining goods or services, the Purchasing Department should be
contacted before quotes are obtained from vendors.
Sole-Source Purchases: One of the
exceptions to the competitive process is a sole-source purchase, i.e.
goods or services available from only one source. Sole-source
justification must be approved by a buyer in the Purchasing Department
(and by the Campus President if over $25,000). There is a sole-source
form available from the Purchasing Department for writing up the
justification.
Purchasing Online
[-top-]
Departments initiating more than 25
documents per year (over and under $2500), must enter documents on-line.
Departments issuing less than 25 purchasing documents per year may opt
to have it done in the Purchasing Department. Contact the Purchasing
Office at 207-581-2695 for more information.
Reimbursement for Taxes, Tips &
Alcohol
[-top-]
As the University is a tax exempt
organization, employees will not be reimbursed for taxes paid on
purchases made without a Purchase order. The exception to this policy is
some travel expenses.
Tips will only be reimbursed up to 15%.
If an employee tips for services at a higher level the employee will be
responsible for the excess payment.
Payment or reimbursement for alcoholic
beverages will not be made on travel expense vouchers or from ledger 2
accounts.
University Wide Contracts
[-top-]
The Purchasing Department enters into
contract for items that many or all departments need. The most widely
used contracts are for office supplies, furniture, and scientific
materials. Purchases from these contracts need not go through a
competitive process as the contract itself was obtained through a
competitive process.
