DBMG - Purchasing and Contracting
- Overview
- Purchasing is the process of obtaining goods and services from commercial vendors. Commercial vendors are private, non-governmental companies. These can be for-profit or not-for-profit companies.
- Contracting is the informal or formal methods used to obtain these goods and services.
- University Policy
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All university funds, regardless of their source of origin, are considered to be public funds, and are governed by Virginia law and university guidelines. University policy states that departments may purchase goods and services valued up to $2,000 through the use of a Departmental Order for Purchase/Payment (DOPP) Form, and MasterCard Corporate Purchasing card (P-card), or by ordering against established supply contracts, using a blanket order.
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For requirements valued in excess of $2,000, a requisition form must be submitted to the Purchasing Department. Purchasing buyers will contract for the goods and services with commercial vendors. University policy allows department heads to sign commercial vendor contracts that are valued within their delegated purchasing authority. Legal Counsel (540) 231-6293 must review all vendor contacts prior to signature by the appropriate university official
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- Departmental Responsibilites
- Ensuring the purchases of goods and services are in the university’s best interests and are allowed by university policy and that funds are available
- Reviewing and approving (signing) Departmental Order of Purchase/Payment ($2,000 and under) and Requisitions for Purchase (above $2,000) and the vendor’s invoice
- Ensuring procedures are in place for employees to review the quality of goods and services received and to review all documentation for accuracy
- Ensuring appropriate specifications are developed for the purchase of goods and services and that no vendor is given preferential treatment
- Ensuring a purchasing log is maintained, which documents vendor, type of contract, period of contract, amount, signatory, and date signed
- Internal Controls
- Ensuring to the greatest extent possible, there is a separation of duties, between employees who order items and employees who receive them and approve invoices for payment; At a minimum, no less than two of these three functions should be separate.
- Ensuring monthly reviews and reconciliations of all P-card transactions are completed
- Maintaining purchase records and receipts per the university’s record retention policy