The Purchasing Process
Indiana University is a state educational facility, and, as such, IU must comply with certain rules and regulations. We are required to keep complete and accurate records on approved forms and to handle all purchases in an organized method.
Steps in the Purchasing Process
The general pattern for handling purchase orders is as follows:
- A department initiates a request for goods or services and sends it to the Purchasing Department.
- Purchasing staff verifies that the specifications are complete and selects potential sources.
- Purchasing staff follows good business practices in determining the best offer for required materials or services. We review quotations based upon:
- unit costs and total costs;
- completeness of the order and adherence to the specifications listed;
- delivery costs;
- delivery time; and
- warranties, maintenance, installation, etc., e.g., service.
- When we award an order, we will FAX or mail an IU purchase order form containing a purchase order number to place an order. In some circumstances, we may telephone in an order with a purchase order number.
- You must send an invoice with the purchase order number noted on the invoice to the IU Accounts Payable Department before a payment can be made.
Selection of Suppliers
The Purchasing Department staff is responsible for the selection of reputable, dependable suppliers. If you have not dealt previously with IU, you should write or phone the purchasing contract manager who makes purchases in the your commodity area. New as well as established suppliers should offer competitive prices and continue to act in good faith as far as delivery, adjustments, and other services are concerned. IU tries to retain the good will of all suppliers by dealing fairly with them at all times.
http://www.indiana.edu/~purchase/comm.html
Please keep in mind that suppliers are selected two times during the purchasing process:
- to receive the request for quotation; and
- to receive the award of the order.
If you were not one of the suppliers who received a request for quotation, you will not be one of the suppliers considered for the award of the order. Therefore, much of your efforts should first be directed toward getting your company's name on the quotation lists for your commodities. Please keep in mind that Indiana University is committed to providing minority suppliers every opportunity to compete for its business, but you must be persistent.
Specifications
Occasionally, we must seek professional services from suppliers in developing specifications for equipment and materials. As a general practice, if you quote a substitute or alternate goods or services, you should clearly note the change and provide documentation. If you have a question about this issue, please call the purchasing contract manager before submitting your quotation.
Requests for Quotations (Price Requests)
In many instances, after we have verified the specifications, requests for quotations (RFQ) or price requests will be sent to a number of competent suppliers. These requests should be completed, signed, and returned as indicated on the price request form. IU considers the pricing information to be binding. You should review the information above under General Information while you are preparing your quotation. Please remember: if you do not submit your response to these requests, you cannot receive orders from IU.
A signed purchase order (PO), an automatic purchase order (APO) [both generate a purchase order number], and a procurement card are the only methods of purchase that obligates IU for payment. When an emergency arises, a purchasing contract manager may use the telephone or other means of transmission to place an order. However, a purchase order number is always assigned. You should not accept requests for goods or services without a purchase order number or a valid University credit card. No other method of purchase obligates Indiana University for payment.
If you participated in the quotation process but you did not win the order award, you should make an appointment to see the appropriate purchasing contract manager. This will give you:
- information on how your competitors priced their commodities;
- information about how you can be more competitive on the next quotation; and
- a basis upon which to begin talking to the departments and the purchasing contract managers about your goods and services.
Invoices
A company invoice referencing the Indiana University purchase order number must be submitted to the Accounts Payable department before payment can be made.
Correspondence Involving Purchase Orders
All correspondence involving purchase orders should be channeled through the Purchasing Department. If you correspond with a person in a department, you should send the appropriate purchasing contract manager a copy of the letter. This is also true about FAXes, telephone calls or emails. Since only Purchasing Personnel are authorized to modify purchase orders, it may be impossible to audit and approve invoices for payment without complete records.
You should always refer to the purchase order number on all communications, whether invoice, credit, letter, shipping instructions, facsimile, electronic mail, or personal conversation. Our addresses are:
Bloomington
East
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Indianapolis
Kokomo
Northwest
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South Bend
Southeast
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