How To Do BusinessHow To Do BusinessWith With

The PennsylvaniaThe Pennsylvania State System State System of Higher Education of Higher Education

AndAndSlippery Rock University Slippery Rock University

of Pennsylvaniaof Pennsylvania

The Pennsylvania State System of The Pennsylvania State System of Higher Education (PASSHE) and Higher Education (PASSHE) and

Slippery Rock University of Slippery Rock University of Pennsylvania as agencies of the Pennsylvania as agencies of the

Commonwealth can purchase under Commonwealth can purchase under Department of General Services Department of General Services

(DGS) Contracts. (DGS) Contracts.

Supplier Relationship Management (SRM)Supplier Relationship Management (SRM)

Contact Information for the DGS:Contact Information for the DGS:

www.pasupplierportal.state.pa.uswww.pasupplierportal.state.pa.us

Click on SRM Customer Support CenterClick on SRM Customer Support Center

Select Quick Reference Guide in the “Register Column”Select Quick Reference Guide in the “Register Column”

OrOr

ra-srmhelp@state.pa.usra-srmhelp@state.pa.us

(717) 346-2676(717) 346-2676

Toll Free: 877-435-7363Toll Free: 877-435-7363

The Pennsylvania State System of The Pennsylvania State System of Higher Education (PASSHE) has a Higher Education (PASSHE) has a

total of more than 112,500 total of more than 112,500 students. PASSHE is the largest students. PASSHE is the largest

higher education provider in higher education provider in Pennsylvania. Pennsylvania.

If they were gathered together in one place, If they were gathered together in one place, the students of the PASSHE would the students of the PASSHE would

comprise Pennsylvania’s third largest city. comprise Pennsylvania’s third largest city. We are intensely proud to bring the power We are intensely proud to bring the power

and opportunity of higher education to and opportunity of higher education to our more than 112,500 students – 90% of our more than 112,500 students – 90% of

whom are Pennsylvanians.whom are Pennsylvanians.

Bloomsburg University of PennsylvaniaBloomsburg University of Pennsylvania California University of PennsylvaniaCalifornia University of Pennsylvania Clarion University of PennsylvaniaClarion University of Pennsylvania Cheney University of PennsylvaniaCheney University of Pennsylvania East Stroudsburg University of PennsylvaniaEast Stroudsburg University of Pennsylvania Edinboro University of PennsylvaniaEdinboro University of Pennsylvania Indiana University of PennsylvaniaIndiana University of Pennsylvania Kutztown University of PennsylvaniaKutztown University of Pennsylvania Lock Haven University of PennsylvaniaLock Haven University of Pennsylvania Mansfield University of PennsylvaniaMansfield University of Pennsylvania Millersville University of PennsylvaniaMillersville University of Pennsylvania Slippery Rock University of PennsylvaniaSlippery Rock University of Pennsylvania Shippensburg University of PennsylvaniaShippensburg University of Pennsylvania West Chester University of PennsylvaniaWest Chester University of Pennsylvania

Pennsylvania State System of Higher Education Pennsylvania State System of Higher Education Campus LocationsCampus Locations

Dixon University Center

PASSHE System-Wide ContractsPASSHE System-Wide Contracts

Contracts are established by the procurement office at Contracts are established by the procurement office at PASSHE via either RFP or bidding for use by all PASSHE via either RFP or bidding for use by all

fourteen PASSHE Universities and the Office of the fourteen PASSHE Universities and the Office of the Chancellor. Chancellor.

Contact Information:Contact Information:

Kimberly Auchenbach Director Strategic SourcingKimberly Auchenbach Director Strategic Sourcing

(717) 720-4155(717) 720-4155

kauchenbach@passhe.edu kauchenbach@passhe.edu

PASSHE Procurement Website address:PASSHE Procurement Website address:

http://www.passhe.edu/executive/finance/procurementhttp://www.passhe.edu/executive/finance/procurement

Slippery Rock University of Slippery Rock University of Pennsylvania is one of the 14 Pennsylvania is one of the 14

institutions of higher learning that institutions of higher learning that compose PASSHE. SRU has 8,852 compose PASSHE. SRU has 8,852

students enrolled this academic year.students enrolled this academic year.

What do we buy?What do we buy?

How do we buy it?How do we buy it?

What determines how we buy?What determines how we buy?

What do we buy?What do we buy? Office Supplies Computers & Peripherals Lumber, Drywall, Ceiling Tiles Video & Audio Equipment Books/Videos/Library Supplies Engineering Services Construction related services Telecommunications First Aid / Fire Protection Police equipment & supplies

Custodial Supplies Hardware, Plumbing & Electric Transportation Speakers / Services Transportation Furniture Vehicles Material Handling Equipment Chemicals Copiers Software

How do we buy it?How do we buy it?

Purchasing CardTravel Card Purchase OrderService ContractDGS & PASSHE ContractsBid Process

Request for Bid Request for Proposal

How do we buy it?How do we buy it?

Purchasing Card – Purchasing Card – The Purchasing Card program is administered by The Purchasing Card program is administered by

the Purchasing Office.the Purchasing Office.

Travel Card –Travel Card –Maximum of $1,000 per purchase and $10,000 per Maximum of $1,000 per purchase and $10,000 per

month. month. The Travel Card program is administered by the The Travel Card program is administered by the

Accounts Payable Office.Accounts Payable Office.

How do we buy it?How do we buy it?

Purchase Order – Purchase Order – Used to purchase commodities and place releases Used to purchase commodities and place releases

against PASSHE and DGS Contracts. against PASSHE and DGS Contracts. Purchase Orders are administered through the Purchase Orders are administered through the

Purchasing Department.Purchasing Department.

Service Contract –Service Contract –Used to Purchase Services.Used to Purchase Services.Service Purchase Contract are administered Service Purchase Contract are administered

through the Purchasing and Contracts Office’s.through the Purchasing and Contracts Office’s.

How do we buy it?How do we buy it?

DGS & PASSHE Contracts DGS & PASSHE Contracts – – Contracts that have been advertised, bid, awarded and Contracts that have been advertised, bid, awarded and

negotiated by PASSHE or DGS. negotiated by PASSHE or DGS. The University is permitted to purchase commodities The University is permitted to purchase commodities

and services against these contracts without going and services against these contracts without going through a bidding process when in the best interest of through a bidding process when in the best interest of the university. the university.

Bid Process –Bid Process –Required for the purchase of commodities or services Required for the purchase of commodities or services

with a total value of $10,000 or greater. If not covered with a total value of $10,000 or greater. If not covered by PASSHE or DGS contract.by PASSHE or DGS contract.

How do we buy it?How do we buy it?

Bid Process (Continued) –Bid Process (Continued) –

Request for Bids (RFB) – Request for Bids (RFB) – There are industry There are industry standards or the University has significant knowledge standards or the University has significant knowledge of the product or service. The business is awarded to of the product or service. The business is awarded to the lowest cost responsive and responsible bidder.the lowest cost responsive and responsible bidder.

Request for Proposal (RFP) – Request for Proposal (RFP) – The University lacks The University lacks expertise on the product or service or the University expertise on the product or service or the University desires to receive the greatest value purchase which desires to receive the greatest value purchase which may not necessarily be the lowest cost provider. The may not necessarily be the lowest cost provider. The contract is awarded by committee based upon contract is awarded by committee based upon predetermined weighted criteria.predetermined weighted criteria.

What determines how we buy?What determines how we buy?

The Law & PASSHE and University PolicyThe Law & PASSHE and University Policy

Act 188 of 1982Act 188 of 1982 State System of Higher Education.State System of Higher Education. Act 57 of 1998Act 57 of 1998 Commonwealth Procurement CodeCommonwealth Procurement Code Act 146 of 1986Act 146 of 1986 Reciprocal LimitationsReciprocal Limitations Act 101 of 1988Act 101 of 1988 Municipal Waste Planning, Recycling Municipal Waste Planning, Recycling

and Waste Reductionand Waste Reduction Act 170 of 1978Act 170 of 1978 Public Officials EthicsPublic Officials Ethics

Public employment is a public trust. It is the policy of the Commonwealth Public employment is a public trust. It is the policy of the Commonwealth to promote and balance the objective of protecting government integrity and to promote and balance the objective of protecting government integrity and the objective of facilitating the recruitment and retention of personnel the objective of facilitating the recruitment and retention of personnel needed by this Commonwealth. Implementation of this policy requires that needed by this Commonwealth. Implementation of this policy requires that public employees discharge their duties impartially so as to assure fair public employees discharge their duties impartially so as to assure fair competitive access to Commonwealth agency procurement by responsible competitive access to Commonwealth agency procurement by responsible contractors and that they conduct themselves in a manner that fosters public contractors and that they conduct themselves in a manner that fosters public confidence in the integrity of the Commonwealth procurement process. It is confidence in the integrity of the Commonwealth procurement process. It is also essential that those doing business with Commonwealth agencies also essential that those doing business with Commonwealth agencies observe high standards of honesty and integrity. observe high standards of honesty and integrity.

62 Pa.C.S.A. 62 Pa.C.S.A. §§ 2301 (emphasis added) 2301 (emphasis added)

IntegrityIntegrityWhat determines how we buy?What determines how we buy?

What determines how we buy?What determines how we buy?

The State employee may not use his / her office or the authority of that office for the The State employee may not use his / her office or the authority of that office for the benefit of the outside entity or for personal gain. State Ethics Act 65 P.S. benefit of the outside entity or for personal gain. State Ethics Act 65 P.S. § 401 § 401 etet seqseqThere are two interests that a public employee must avoid when dealing with vendors:There are two interests that a public employee must avoid when dealing with vendors: Adverse InterestAdverse Interest – Against the interest of some other party, usually so as to benefit – Against the interest of some other party, usually so as to benefit

one’s own interest.one’s own interest. ……..a fine of ($1,000.00) and / or imprisonment for a term not to exceed one year; ..a fine of ($1,000.00) and / or imprisonment for a term not to exceed one year;

and shall automatically forfeit any office or employment under a State agency which and shall automatically forfeit any office or employment under a State agency which he / she may hold. 71 P.S. he / she may hold. 71 P.S. § 776.8§ 776.8

Conflict of InterestConflict of Interest – A situation in which regard for one duty leads to disregard for – A situation in which regard for one duty leads to disregard for another or might be reasonably expected to do so. Conflicts of interest may be actual another or might be reasonably expected to do so. Conflicts of interest may be actual or potential.or potential.

EthicsEthics

What determines how we buy?What determines how we buy?

• No contract can be implemented, or any supplies, services, or construction be accepted or work No contract can be implemented, or any supplies, services, or construction be accepted or work begun on any contract not processed, executed, and approved by legal counsel.begun on any contract not processed, executed, and approved by legal counsel.

• Purchases of $10,000.01 and greater require an Advertising and Bidding Process if no PASSHE Purchases of $10,000.01 and greater require an Advertising and Bidding Process if no PASSHE or DGS contracts are applicable and favorable for use. or DGS contracts are applicable and favorable for use.

• The maximum time period for a contract is five years; unless prior approval is received from the The maximum time period for a contract is five years; unless prior approval is received from the Chancellor’s Office.Chancellor’s Office.

• Prohibited Contracts Prohibited Contracts Employee / Employer RelationshipsEmployee / Employer Relationships Contracts for the purchase of insurance. An exception to the rule is collision insurance for Contracts for the purchase of insurance. An exception to the rule is collision insurance for

rental vehicles.rental vehicles. Contracts for Attorney ServicesContracts for Attorney Services

• Prohibited Contract ClausesProhibited Contract Clauses Assignment Assignment – – No assignment without the prior written No assignment without the prior written

consent of the University.consent of the University. Legal Jurisdiction Legal Jurisdiction – – The laws of the Commonwealth ofThe laws of the Commonwealth of

Pennsylvania must govern.Pennsylvania must govern.

Key PointsKey Points

What determines how we buy?What determines how we buy?

• Prohibited Contract Clauses (Continued)Prohibited Contract Clauses (Continued)

Attorney Fees, Court Costs, Entry of Judgment – Attorney Fees, Court Costs, Entry of Judgment – The University may not The University may not voluntarily pay the contractor’s court costs or legal fees nor may it allow a voluntarily pay the contractor’s court costs or legal fees nor may it allow a contractor to confess judgment on its behalf.contractor to confess judgment on its behalf.

Indemnity and Hold Harmless – Indemnity and Hold Harmless – Removed from every Commonwealth contract Removed from every Commonwealth contract because it compromises the greatest protection afforded the Commonwealth because it compromises the greatest protection afforded the Commonwealth entities; sovereign immunity.entities; sovereign immunity.

Arbitration – Arbitration – Resolution of disputes by binding arbitration in contracts for goods Resolution of disputes by binding arbitration in contracts for goods and services are prohibited. The Board of Claims has exclusive jurisdiction.and services are prohibited. The Board of Claims has exclusive jurisdiction.

Payment in Advance – Payment in Advance – Prohibited except as justified in writing.Prohibited except as justified in writing. Purchase of Insurance – Purchase of Insurance – State System of Higher Education universities may not State System of Higher Education universities may not

purchase insurance. Vehicle rentals are an exception.purchase insurance. Vehicle rentals are an exception.

Key PointsKey Points

Mark Combine, C.P.M.Director of Purchasing Department

1 Morrow Way – 005 Old Main BuildingSlippery Rock PA 16057Telephone: 724-738-2251Facsimile: 724-738-2256

E-mail: mark.combine@sru.eduInternet: http://www.sru.edu

Contact Information:Contact Information: