Purchasing

What is the program’s mission statement or statement of purpose? Why does the program exist?

The Department of Procurement, Disbursements and Contract Services is committed to identifying and incorporating innovative purchasing practices that provide quality products and services at a cost savings to the University. We strive to obtain the maximum value for each dollar expended by utilizing open competition. We are dedicated to excellence in customer service, as well as building and maintaining relationships with suppliers that leverage the institution’s buying power.  

The program exists because, not only is it our legal obligation to obtain goods and services at the lowest acceptable price, but we must keep abreast of, and ensure compliance with, the ever changing Illinois procurement laws, federal laws, Internal Governing Policies and the Board of Trustees rules and regulations. We regularly analyze the spending on goods and services by the University. We continuously look for ways to save money. We also look for opportunities to combine purchases, and buy in bulk, in order to maximize savings. The money saved, as a result of our efforts, allows the University to reallocate those dollars toward other mission-critical needs.

How does the program mission align with the university mission?

The Department of Procurement, Disbursements and Contract Services’ mission aligns with the University’s mission by supporting the academic and administrative departments in the procurement of goods and services that sustains, fosters and promotes the educational and research mission of the University.   We competitively bid commodities and services as often as possible. This ensures that the University is obtaining the goods and services at the lowest acceptable price, thereby maximizing the cost savings to the University, allowing the dollars saved to be available for the academic needs of the students.

Whom does the program serve?

1. Students. We purchase quality goods and services that allow the faculty to provide superior education for the students. We ensure the students’ needs are met by providing the services, equipment and commodities required and offer the latest state of the art technology, as well as classroom, research, living facilities and entertainment for students.
   
   
2. Faculty and Staff. Because we competitively bid as many items as possible, regardless of the dollar amount, we are providing savings to the departments’ budgets. We supply the faculty and staff with the services, equipment and commodities needed so that they, in turn, can provide the students what they need for a superior education. We ensure that these items are up to date so as to offer the students current information, technology and resources.
   
   
3. Vendors. We strive to maintain quality relationships with our vendors by promptly paying invoices. In accordance with Illinois statutes, we recruit and develop relationships with small, veteran and Business Enterprise Program (BEP) owned businesses. BEP includes women, minority and persons with disabilities. We also, support vendors, helping them to be compliant with all of the statutory requirements of the state of Illinois.
   
   
4. Taxpayers. We work hard to obtain the maximum value for each tax dollar allocated to the University while maintaining the highest level of ethics and integrity.

What are the services provided? How do these services align with the university mission and program mission?

The services provided by our department include overseeing purchases and making the purchases of goods and services for the University. We work to keep the campus informed of any changes in law in regards to purchasing as well. Although we do not deal directly with students, we administer the purchases that give the University faculty the resources needed to educate our students.

Describe the program’s origins (e.g. year established, purpose, expectations).

The procurement and bill-paying process has been a necessary function since the founding of the University. These functions are, and will continue to be, a necessity for the University.

How has the unit changed or adapted over time?

1. Ever changing procurement laws have become more restrictive.
2. Increased scrutiny involved in purchasing which makes it all the more vital that all of the rules and regulations are followed.
3. We have partially decentralized purchasing that allows for departments to obtain smaller valued items with their Purchasing Card (P-Card) and OfficeMax.
4. We have implemented the process of paying purchase order invoices with P-Card in lieu of cutting a check.
5. We have become more technologically advanced through the use of Banner and the Procurement Bulletin, thus streamlining processes.
6. We now have more levels of procurement which include the Compliance Monitor, State Purchasing Officer, Chief Purchasing Officer and the Procurement Policy Board.
7. We are required to be more educated and more specialized in our knowledge of purchasing. We are working to certify buyers in public procurement.
8. We are doing more with less. Our department has been reduced by five positions, over a six-year period, through attrition.
9. While the number of purchase orders has not increased, the workload and added mandated requirements in the purchasing process has increased dramatically.

If needed, provide supplemental comments to help the reader understand the program’s history and relevance to university mission.

Provide data, if available, on the numbers of students, faculty, staff, or others served by the program during the past four years. If no data are available, please estimate the numbers served annually.

a.  Demand

1. Number of P-Cardholders - 343
2. Number of P-Card Transactions – 86,189
3. Number of Purchase Orders/Change Orders – 6,074
4. Number of Contracts - 345
5. Number of Invoices Processed (includes Request for Payments, payments on purchase orders and Travel Vouchers – 68,835
6. Number of Departments – we work with all departments
7. Number of Vendors, including Small, Veteran, and BEP Owned Businesses – 48,884 + 57 = 48,941 total
8. Number of OfficeMax users – 167
9. Number of UPS users – 167

 b.  The purpose of the Procurement Department is to ensure that the goods and services purchased for all departments will furnish students with a clean, safe environment that will aid them in receiving a premier education at our University, and thus allowing them to grow as individuals. It is also our responsibility to provide training to departments on the proper purchasing procedures and to be in full compliance of the law. When needed, we have hired student workers for assistance with general department functions, primarily through the federal work-study program.

Does the program offer any co-curricular opportunities for students (e.g., internships, RSO support, service-learning activities)? Please describe.

The Department of Procurement, Disbursements and Contract Services indirectly offers co-curricular opportunities for students by coordinating the purchasing of goods and services for them.

Does the program contribute to the delivery of academic programs (e.g., providing professional expertise, serving as adjunct faculty)? Please describe.

The Department of Procurement, Disbursements and Contract Services contributes to the delivery of academic programs by fulfilling the equipment, commodity and service needs of the faculty, using the most cost-effective means available. We reimburse faculty and staff so that they may attend conferences to continue their educational growth. We utilize our knowledge of procurement and Illinois procurement laws, as well as travel regulations, to ensure all University employees stay abreast of the ever changing laws and continue to be compliant with those laws.

If needed, provide supplemental comments to help the reader understand the internal demand for the program. Note any clarifications or special circumstances (e.g., curriculum changes made by another program) that should be considered when reviewing the above data.

Is the program accredited or approved by a recognized external agency or otherwise certified to meet established professional standards? Provide an executive summary of and link to the program’s most recent accreditation or certification report, if available.

The Department of Procurement, Disbursements and Contract Services consists of a staff of twelve with 73 years of combined public procurement experience. The Interim Director is currently a Certified Public Procurement Buyer (CPPB) and is currently working on becoming a Certified Public Procurement Officer (CPPO). Two other buyers are currently working to become CPPBs as well. Of the staff of twelve, two have Master’s Degrees (one is a MBA), and four have Bachelor’s Degrees with two of those working toward their Master’s Degree as well as one with an Associate’s Degree. The specialized knowledge that we have, and continue to receive, through continuing education allows us to improve on our current knowledge of procurement thus giving us the expertise to save money for the University.  

Is the program required to meet any regulatory or legal requirements? Is the program subject to any special auditing requirements?

The Department of Procurement, Disbursements and Contract Services is required to follow the Illinois Procurement Code as well as other various state and federal statutes, including those from the Office of the Comptroller, the Internal Revenue Service and the Illinois Higher Education Travel Control Board. We are regularly monitored by the Executive Ethics Commission as well as the Auditor General. We have a Compliance Monitor who has an office located upstairs in our building that can, and does, review anything we do for compliance with the laws. There are various levels of approvals that we must obtain before we can make a purchase exceeding the sealed bid threshold. The Compliance Monitor reviews the solicitation documents before being advertised publicly, and then reviews the bid documents before the purchase is awarded to a particular vendor. There is also a State Purchasing Officer who approves every solicitation before it is advertised and awarded as well. The Procurement Policy Board is also involved in the solicitation and award process. The Chief Procurement Officer has rules that work in conjunction with the Illinois Procurement Code that we must also follow. In addition, we are subject to an annual financial and compliance audit which is coordinated through the Office of the Auditor General.

What are the most important outreach or public service activities supported by the program?

The Department of Procurement, Disbursements and Contract Services hosts a vendor show each year in order to showcase our prime vendor contracts to both the campus community and the local community as well. The annual vendor show gives end users the opportunity to see the products our prime vendors offer as well as any new, upcoming products and services. As required by law, we are also involved in the recruitment of small, veteran, and BEP owned businesses. We initiate relationships with them and encourage them to complete the process to become certified in the state of Illinois.

How do the local community and the region benefit from the program?

Being a small community, the University has a significant impact on the local economy. There are many area businesses that benefit from services provided by Procurement. Many purchases are made from local vendors using the purchase order process as well as by P-Card. Whenever possible, we also include the certified small, veteran, and BEP owned businesses when requesting quotations, bids and proposals, in an effort to meet our state-mandated goals.

The University also provides entertainment events. Mostly these are open to the public. Entertainment is contracted through Procurement for events.

If needed, provide supplemental comments or data sources to help the reader understand the external demand for the program.

What are the two or three more important measureable outcomes tracked to assess program quality? Does the program conduct an outcomes assessment, and if so, what has been the impact?

We track the savings realized from the use of prime vendor contracts each year. The major contracts surveyed include Garbage, Pouring Rights, Food, Office Supplies, P-Card and Copiers. We also take pride in the fact that invoices are paid in a timely manner. There have been no additional charges assessed as a result of past-due invoices. Maintaining an updated tax exempt status with vendors allows for purchasing without additional fees (e.g. sales tax). Furthermore, our lack of, or minimal number of, audit findings each year is also a good measure of the quality and efficiency of our department.

What are the two or three most effective best practices that the program has implemented? What benefits have been gained from implementing these best practices?

Utilizing prime vendor contracts for our small dollar, high volume purchases has proved to be not only effective, but also an efficient method of purchasing. We have successfully implemented prime vendor contracts for all the copiers on campus, office supplies, pouring rights, food for the dining halls, the P-Card, furniture, computers and peripherals, shipping, scientific equipment to name a few. Purchasing from the prime vendor contracts provides a cost savings to the University by streamlining the purchasing process and allowing us to obtain frequently used goods and services at discounted prices.

Training manuals/cheat sheets/internet allows us to better educate customers and to inform customers of upcoming bids, as well as to streamline processes.

The Compliance Team researches small, veteran and BEP owned businesses. We work with those businesses to become certified so that we can continue to meet our goals mandated by the state to do business with these vendors. If we do not meet our goals, we would be required to have set asides that would cost the University more money.

What external recognitions (e.g., awards, accommodations, professional certifications, references in trade publications) have the program and its staff received in the past three years?

The Interim Director is a Certified Public Procurement Buyer (CPPB) and is currently working on becoming a Certified Public Procurement Officer (CPPO). Two other buyers are currently working to become CPPBs as well.

Is the program active with any regional, national, or international professional organizations?

The Department of Procurement, Disbursements and Contract Services is currently a member of the National Institute of Governmental Purchasing (NIGP), the National Association of Educational Procurement (NAEP), the Society for Collegiate Travel and Expense Management, as well as the Illinois Public Higher Education Cooperative (IPHEC).

Note any presentations, publications, or offices held in the last three years.

There have not been any presentations, publications or offices held in the last three years. 

If needed, provide supplemental comments or data sources to help the reader understand the quality of program outcomes.

Note any special benefits (e.g., personnel support, equipment, permanent improvements) that the program has received in the past three years from its grants and other sponsored programs.

As part of our purchasing services, we do generate income through rebates from certain contracts. The funds received benefit the University as a whole.   

How does the program benefit from donor gifts (e.g., scholarships, endowed chairs)? Does donor support provide a significant percentage of the program’s overall funding?

According to the State Officials and Employees Ethics Act, we are unable to solicit or accept any gifts from any prohibited source or in violation of any federal or State statute, rule, or regulation.

List two or three key relationships that the program maintains with external constituencies (e.g., community colleges, other universities, government bodies). How do these relationships advance the university mission or otherwise benefit the university?

Belonging to IPHEC allows us to enter into cooperative contracts with other universities thus giving us buying power. Each university belonging to the IPHEC will bid commodities/goods and services on behalf of all participating universities. EIU has taken the lead on IPHEC agreements such as P-Card and food. The Procurement Department actively participates in the preparation and evaluation of most of the IPHEC agreements as a team member. IPHEC also allows us to collaborate with other university purchasing departments to develop best practices for our university.

If needed, provide supplemental comments to help the reader understand the resources generated by the program. Note any clarifications or special circumstances (e.g., revenue pass-throughs) that should be considered when reviewing the above data.

Provide an executive summary of and link to any metrics or benchmarks that the program tracks to measure productivity.

We are provided with, and run reports, regarding our BEP, small and veteran business goals and our spend using the IPHEC contracts. We also are able to receive and create P-Card and OfficeMax reports. Additionally, regular open order and encumbrance reports are run for each buyer.

What initiatives has the program implemented to enhance staff productivity (e.g., access to training, workflow improvements)? Briefly describe the costs and benefits of these initiatives.

The procurement staff is encouraged to participate in trainings, workshops and webinars which will further their knowledge in their specific jobs. These sessions are provided at no charge to the University and are beneficial to the employees as they offer current and relevant job-related information which can be used to perform duties in a more effective and efficient manner. Additionally, staff productivity is strengthened by the fact that each employee has specialized knowledge in a particular function of the purchasing process. The workflows of the department's activities are also reviewed regularly to look for processes that can be improved upon or even eliminated to increase staff productivity. This is especially important given the added levels and increased responsibilities within the purchasing process, which now includes the roles of the Compliance Monitor, State Purchasing Officer, Chief Purchasing Officer and the Procurement Policy Board.

Technology has also allowed us to become more efficient. Banner has reduced the time in processing a requisition from its initiation (entering the requisition on Banner) to completion (cutting a check). Banner also gives departments the ability to view their budgets and purchases in real-time.

P-Card has eliminated paper Departmental Purchase Orders, allowing departments to purchase small dollar items expeditiously. P-Card has also decreased the number of checks processed down to one per month for all P-Card transactions for that month rather than processing multiple checks to numerous vendors for each individual purchase.

The OfficeMax contract provides desktop, next-day, service to departments for their office supply purchases. This reduces travel time and the amount of paperwork traditionally required to purchase these items. OfficeMax is also paid by one single payment for all purchases for a month rather than multiple payments for each individual purchase.

The UPS contract provides desktop delivery service to departments. This reduces the shipping time to receive vital documents central to the function of the University.

Electronic payments to vendors, students and staff reduce the number of checks processed. This particular technology has reduced costs for the University by eliminating the need to produce and mail checks for each individual payment.

The department has recently received approval to acquire an imaging system. It is anticipated that this system will streamline processes by eliminating the need to retrieve paper files from the filing cabinets when requests are made by departments, auditors, compliance monitors and for Freedom of Information Act (FOIA) requests. The acquisition of the imaging system will free up limited space.

The department has also implemented several prime vendor contracts as well as the use of standing orders. These prime vendor contracts and standing orders allow departments to purchase items from them thus saving time for the buyers as they are not required to put these items out for bid each time a request is made.

If needed, provide supplemental comments to help the reader understand the productivity of the program. Note any clarifications or special circumstances (e.g., accreditation requirements, curricular changes, program restructuring) that should be considered when reviewing the above data.

If needed, provide supplemental comments to help the reader understand the costs associated with the program. Note any clarifications or special circumstances (e.g., expenditures made centrally or externally, expenditures made on behalf of other units) that should be considered when reviewing the above data.

Organization 231201 does not apply to this department.  However, 331101 does and has 2 FTE personnel.

How does the program seek to distinguish itself from similar programs at other institutions?

It is very difficult to compare us to other organizations because many purchasing departments are structured very differently from ours. We spend a considerable amount of time evaluating and interpreting laws. We work very hard to obtain the goods and services needed while still complying with the very restrictive laws thus minimizing risk. We work with other institutions as well as the Executive Ethics Commission and the Procurement Policy Board to improve purchasing within the state of Illinois.

Note any unique and/or essential contributions that the program makes to the university.

We have the authority to enter into contracts on behalf of the University and for the benefit of the University. We administer the P-Card program which allows P-Cardholders to make purchases in a timely and efficient manner. While departments are allowed to make purchases with the P-Card, it is up to our department to ensure that all policies and laws are followed. This is done through extensive training, whether in person or through written instructions and manuals. The OfficeMax contract allows departments to select from a wide array of office supplies needed to move forward the function of the University’s mission to offer superior, accessible undergraduate and graduate education. The University is required, by law, to assist the Compliance Monitor, State Purchasing Officer, Chief Purchasing Officer and the Procurement Policy Board in the efforts of statewide purchasing compliance. The Procurement Department serves as the liaison between these entities and the campus community.

Provide any program-specific metrics that help to document program contributions or program quality. Examples of some commonly used program-specific metrics may be found here.

If needed, provide supplemental comments to help the reader understand the program impact on the university mission.

Provide a link to or listing of the program’s goals and/or strategic plan.

1. Maintain P-Card controls - The loss of the P-Card would tremendously increase the workload in our department.
2. Implement an imaging system – this will streamline processes, making the department and the University as a whole more efficient.
3. Updates to the website – The department is working to make changes to our website that will provide vendors and departments with more detailed procurement information regarding rules, regulations and procedures.
4. Increase prime vendor contracts – This will streamline purchases as well as save money by combining orders.
5. Increase BEP spend as required by law to avoid have to do set asides.
6. Departmental training – We plan to reach out to departments for added purchasing training as well as continue to do annual Travel training for departments.        
7. Maintain tax exempt status with vendors to save taxpayers’ dollars to costly taxes.

What role will the program have in the implementation of the university’s strategic plan (provide link to strategic plan)?

The Department of Procurement, Disbursements and Contract Services plays a vital role in the implementation of the University’s strategic plan. As with any plan, the costs involved are of utmost importance. Our department will strive to search for savings through bidding, negotiation and combining purchases.

In the next two or three years, what best practices, improvements in operations, or other opportunities to advance the university’s mission are likely to be implemented?

1. The imaging system will allow us to become more streamlined and efficient in our processes.
2. We will look to identify more prime vendor contracts thus reducing costs by buying in bulk. We currently buy computers, using this process, consequently providing great savings to the University.
3. We plan to educate our customers regarding purchasing. By reaching out to departments and to vendors, further educating them on proper purchasing procedures and informing them of procurement laws, we expect to improve efficiency overall in regards to purchasing.
4. We will have continued participation in the implementation of IPHEC contracts.

If needed, provide supplemental comments to help the reader understand future opportunities for the program.