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STATE PURCHASE POLICIES
I. PURPOSE:
To provide guidance for the determination of the need for a purchase
action. The purchase policies contain the methods and procedures to be
followed when pursuing a purchase action in the name of the Department.
II. REFERENCES:
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1. New Jersey Administrative Code, Title 17,
Chapter 12 Entitled: Purchase Bureau.
2. New Jersey Statutes Annotated, Title 52.
3. All published or amended General Services Administration
(GSA) Procurement Circulars to include Circular No. PC-23H,
dated May 1, 1998, Direct Purchase Authorization. |
III. DEFINITIONS:
A. ACCOUNT MANAGER: is a designated individual who has been delegated
authority from a Program Manager to authorize expenditure of this
Department's funds for the purpose of securing necessary commodities
and/or services required for the performance of a Department function.
The Account Manager is responsible and accountable for all expenditures
made via this authority.
B. AGENCY BID PROPOSAL: is a public advertisement of a bid conducted for
procurement of non-contract commodities or services at the Agency level
by NJDMAVA Purchase Bureau or a facilities Business Office. An agency
bid authority is limited to $3,500 - $11,000. Purchase Bureau Form
PB-120 "Agency Bid Request" is utilized to accomplish this action.
C. AGENCY PURCHASE ORDER: is a commitment between the State and a vendor
for commodities and/or services at a given price.
D. ANNUAL TERM CONTRACTS: are issued by the State Purchase Bureau for
common statewide commodities and services. Duration of the contract can
be from one to three years.
E. BUSINESS MANAGER: A department employee at a facility or supervising
an operation who has been delegated specific signature authority to
purchase commodities and services and authorize expenditures of State
Funds.
F. CONFIRMING ORDER: is an "after-the-fact" issuance of an Agency
Purchase Order.
G. DIRECT PURCHASE AUTHORIZATION (DPA): is a delegated purchase
authority extended to State Agencies from the Director of the Division
of Purchase and Property, Department of the Treasury, State of New
Jersey.
H. "EMERGENCY" & "EMERGENCY PURCHASE": At the discretion of the Account
Manager, a situation is deemed an emergency. This denotes an urgent need
to correct or remedy a situation regarding health or safety of an
individual or physical damage of a facility.
I. REQUEST FOR PURCHASE FORM: Form that is used by Account Managers to
request of NJDMAVA Purchase Bureau that an Agency Purchase Order be
issued for required commodities or services.
J. IMMEDIATE NEED: is defined as a necessity or circumstances which
dictate a bypassing of the normal issuance of a Purchase Order prior to
the purchase. The Purchase Order is then issued after the fact.
K. NJDMAVA ACCOUNTING BUREAU: is the Department's centralized accounting
authority and operation.
L. NJDMAVA PURCHASE BUREAU: is the Department's centralized purchasing
authority and operation.
M. NON-CONTRACT: Commodities and services purchased or required from
vendors not having a State Contract. Purchases from the State
Distribution Center fall under this category for transactions processed
through the Management Acquisition System (MACS-E) and N.J.
Comprehensive Financial System (NJCFS).
N. PROGRAM MANAGER: is a designated individual who is responsible and
accountable for this Department's funding provided to support a specific
program. Program Manager's accountability cannot be delegated or
assigned. Expenditure authority may be delegated to an Account Manager.
O. WAIVER OF ADVERTISEMENT, PB FORM 129: is a request to bypass normal
public advertisement of bid for services or commodities. Criteria for
waiver submission is outlined in Procurement Circular 90-25-GSA with the
appropriate statutes cited thereon. Such requests are initiated by
Managers to NJDMAVA Purchase Bureau for review, recommendation and
processing. Generally, dollar amounts are in excess of $11,000. Waiver
of advertisement is restricted and individually reviewed/approved by The
Adjutant General.
IV. OBJECTIVES:
As a state agency, this Department adheres to the guidance and
procurement regulations enacted by New Jersey Law, Governor's Executive
Order, or General Services Administration Procurement Circulars, as
published or amended, regarding any manner of procurement of
commodities, services or items.
V. PURCHASING RESPONSIBILITY & AUTHORITY:
A. NJDMAVA has the authority to engage in purchase transactions with
vendors for the purpose of fulfilling the Department's mission. (Refer
to the Code of Ethics for Vendors, NJDMAVA Form 010/1-4, 1 MAR 89 -
Attachment I.)
B. Departmental authority has been delegated through a system of Program
and Account Managers, who are charged to act in a responsible and
professional manner in exercising this delegated Departmental authority.
C. Use of Delegated Purchase Authorization (DPA) is prescribed in
PC-23H. Direct Purchase Authorization limits are as follows:
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1. No price competition is required for DPAs not
exceeding $500.
2. Telephone Quotations are required for DPAs of more than $500
but less than $3,500.
3. Written sealed quotations are required for all DPAs exceeding
$3,500 but are less than $11,000. Business Managers may conduct
this action if delegated this authority from the Department.
NJDMAVA Purchase Bureau will accomplish this action for all
other Managers. |
D. All non-contract purchases exceeding $11,000 will be requested
through NJDMAVA Purchase Bureau to the State Purchase Bureau.
E. NJDMAVA Purchase Bureau is responsible for direct coordination and
serves as point-of-contact with the State Purchase Bureau on all issues
and transactions involving the State Purchase Bureau.
F. Confirming Orders are discouraged and should be used only to satisfy
the requirements of an immediate need or an emergency. All previously
mentioned guidance and limits are applicable and must be followed.
G. Emergency purchases must be justified, documented and signed by the
Program/Account Manager. This documentation is made part of the purchase
record.
VI. PURCHASING PROCEDURES AND GUIDELINES:
A. The NJDMAVA Fiscal Division and Purchase Bureau have established the
following guidelines to be followed when using this Department's
Purchase Authority.
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1. All Account Managers will submit a completed
DPA - PB2 PURCHASE REQUEST FORM to NJDMAVA Purchase Bureau or
appropriate Business Manager to request an Agency Purchase
Order. This form is used to identify either contract or
non-contract anticipated purchase within the State Purchase
Procedures. It may also be used to request Agency Bid Proposals
in the amounts of $3,500 to $11,000. Bid specifications must be
detailed and complete. Emergency service/repairs must be
completely detailed on the reverse side of this form. Names of
all vendors contacted must be shown with reason for
non-selection. Recommend the use of a Form PB119 for this
purpose.
2. Agency Purchase Orders will only be issued against
established accounts which "have funding available" to support
the transaction. The Agency Purchase Order Document is also used
as a "Blanket Order" for "certain commodities". Blanket orders
are issued as a result of an Agency Bid Proposal which conforms
to the non-contract purchase procedures or a State Contract
(Utilities, Fuel Oil...etc.) Commodities and services can be
purchased through the method prescribed in the contract within
the dollar limits imposed by the requirement(s) of each
contract. All commodities and services available through the
State Distribution Center or State Use Industries MUST be
purchased from these sources before consideration is given to
Annual Term Contracts or any other supplier.
3. A PB6 Requisition is required for any purchase of $11,000 or
greater or when it is the method of purchase specified in an
annual term contract. All PB6 Requisitions will be prepared and
processed by NJDMAVA Purchase Bureau. Managers will submit a
completed and typewritten "PB6B Requisition Worksheet" to
support the action. Funds must be available in the account for
the requisitions to be processed.
4. All emergency purchases exceeding $3,500 but less than
$11,000 must be reported to NJDMAVA Purchase Bureau as soon as
possible but NO LATER THAN close of business (COB) of the next
normal workday. NJDMAVA Purchase Bureau will advise the
Director, NJDMAVA Fiscal Division of the incident.
5. Managers will check details of State contracts, terms and
conditions and pricing prior to request/issue of a Purchase
Order or making an Agreement (Implied Purchase) with any vendor.
If a vendor offers a substitute item or any other difference
from the published contract; contact NJDMAVA Purchase Bureau for
interpretation and ruling.
6. Purchase and Accounting documents are to be processed in
sufficient time to take advantage of applicable discounts and
comply with vendors terms of payment. Vendors are now in a
position, due to the passage of the "Prompt Payment Act" to
charge interest for late payments. |
B. Purchases "will not be divided into smaller orders of $500 or less to
avoid price competition" or into two or more orders not exceeding
$11,000 to circumvent the stated limits. Business and Account Managers,
who knowingly and willfully, have vendors adjust dates of sale, invoice
numbers, charge slips or other documentation to avoid price competition
or for any other advantage are in violation of New Jersey Public Laws
concerning Public Bid and New Jersey State Purchasing Regulations.
C. Documentation of Telephone Quotations (PB119) and written quotations
(PB120) are required by the NJ State Purchasing regulation.
D. The New Jersey Department of Military and Veterans Affairs is an
advocate and strong supporter of the Governor's program on "Contracts
for Small Businesses, Female Businesses and Minority Businesses". Each
Manager is expected whenever possible to purchase from or contract with
State Certified Small, Female or Minority owned Business as per the
guidelines of Chapter 12 N.J.A.C. and goals as set by the Department.
VII. FORMS:
A. PB 2 PO (8/93) AGENCY PURCHASE ORDER: is a commitment between the
State and a vendor for commodities and/or services at a given price.
B. PB 5 PO GSA PURCHASE BUREAU PURCHASE ORDER: is issued by the State
Purchase Bureau as a result of a PB6-Requisition Encumbrance. It may be
for a commodity or services on a one time basis or as a Blanket Order
providing commodities or services for a period of time or until funding
is exhausted.
C. PB FORM 6 - REQUISITION/ENCUMBRANCE: reserves funds prior to issuance
of PB5PO Purchase Order by State Purchase Bureau. It may be generated
because of a contract requirement or non-contract requirement.
D. PB FORM 6B - REQUISITION WORKSHEET: is used by Managers to request a
PB6 Requisition/Encumbrance for dollar amounts which exceed Agency Bid
Request or as specified in State Annual Term Contracts.
E. PB FORM 36 - USING AGENCY COMPLAINT REPORT: Completed by NJDMAVA
Purchase Bureau based on memo from Business Managers containing detail
of a vendors lack of performance or on unsatisfactory commodities.
F. PB FORM 119 - SUMMARY OF TELEPHONE QUOTATIONS: is used to record and
determine price competition on non-contract commodities or services from
$500 to $3,500. This document is subject to State as well as
Departmental audit. The Account Manager/designee shall complete the
PB119 and attach to all non-contract purchase request.
G. PB FORM 120 - AGENCY BID REQUEST: is used by NJDMAVA Purchase Bureau
and Facility Business Offices to advertise for commodities and services
of a non-contract nature. Specifications for commodities and services
must be detailed or attached. Anticipated costs must be within
non-contract purchase limits. This document is subject to State, as well
as, Departmental audit.
H. PB FORM 129 - REQUEST FOR WAIVER OF ADVERTISING: is initiated for
certain cases when the public advertising of bids for
commodities/services is not practicable. All Waivers of Advertisement
are signed by The Adjutant General. Use is restricted.
I. PBPV1 (3/93) PAYMENT VOUCHER (VENDOR INVOICE): is used by the vendor
to request payment for commodities or services rendered as a result of
an Agency Purchase Order, State Purchase Bureau Purchase Order.
J. REQUEST FOR PURCHASE: is used to identify either contract or
non-contract anticipated purchases within the State Purchase Procedures.
This form is to be completed by the Program/Account Manager. It may also
be used to initiate an Agency Bid Request. Emergency service/repairs
must also be completely detailed on the reverse side of the form.
Revised: July 1998
BUSINESS OFFICE - 44-02-002
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