Frequently Asked Questions (FAQ) for the Contracts Office

December 2008

1.  How do I obtain additional blank Purchase Requisitions (PRs)?

Call x8866 or e-mail contract@ucar.edu with the number of forms needed and more will be mailed to you. The Contracts Office distributes all of the blank PRs.

2.  Where is the electronic Purchase Requisition template?

It is on our Web site at: http://www.fin.ucar.edu/contracts/homecon.htm then click on “forms library,” sign in, and then find “[Electronic] Purchase Requisition Form”

3.  Can I submit an electronic unnumbered PR and have Contracts assign a PR number to it?

Yes that is acceptable, however it is best if you know your assigned PR number for tracking purposes.

4.  When I fax a PR, should I also mail the signed original?

No. If a PR is faxed, we do not want the original as well.  Sending both could potentially lead to duplication of the order. It may be a good idea however to phone x8866 to verify receipt of the faxed PR.

5.  How can I find out whom to call in Contracts with my questions?

Contracts is organized by UCAR/NCAR/UOP Divisions, and the person responsible for each Division is identified in “Division Matrix.”  Extension 8866 is the Contracts Help line, and can always be called for someone to track down the answer or a person for you.

6.  How do I find out which Contract Administrator (CA) is handling my PR?

While the assigned CA is the primary focal point for the majority of each Division’s orders, it is impossible for them to handle every single PR due to business travel, vacations, or illness. The Bi-Tech screen UCREPOST indicates the “buyer” that each specific PR number has been assigned to, when entered in“R0658415” format. (Substitute R07, R08 in subsequent fiscal years, plus the 5-digit PR number.)

7.  When is UCAR going to go paperless and use electronic PRs only? 

The Procurement reengineering team recommended that the Electronic Purchase Requisition function of Bi-Tech be implemented.  A requirements document was completed in Nov 2005 and a test is planned in 2006.  

8.  A Contract Administrator (CA) told me to get my own quotes. Isn’t that your job?

While many PRs come over with quotes already attached, it is definitely the CA’s responsibility to contact the supplier for quotes, to negotiate pricing, delivery, terms and conditions, as well as obtaining any additional information needed to be compliant for Government audits.  However, if you’ve already gotten quotes, please do attach them to the PR.

9.  Do I need a completed Purchase Requisition (PR) with approved funding before Contracts will get quotes for me?

Since the price of the item needing quotes is not always known, it is permissible to work with your Contract Administrator to obtain quotes (or a full blown proposal) for you in advance of submitting a PR. If you are fairly certain of the price, then a PR may be submitted in advance of obtaining a quote.

10.  To add funding to an award, do I need to submit a Purchase Requisition?

A Purchase Requisition is always an acceptable method to increase funding. If additional funding is needed due to estimating error of less than $1,000 an e-mail is acceptable, so long as it is from the person who has authorization over that account for the total cumulative value of the account key paying for the work.  For other modifications a PR is required.

11.  To change the period of performance, do I need to submit a Purchase Requisition?

An e-mail is acceptable for modifying the date (as long as there is no increase in funding), but a PR is fine as well.

12.  What is the status of my order?

The Contract Administrator who placed your order is responsible to expedite his or her own orders and can find out a current status for you.

13.  I need the items on the PR immediately! What due date should I put on the PR?

Please list the required date on the PR as opposed to “ASAP.” If the required date was “yesterday,” that doesn’t really help communicate what date you can live with. If you want to authorize overnight shipment, it is important to indicate that on the PR as well, to avoid phone tag delays in getting that information to the appropriate Contract Administrator.  Mark “Rush” on your PR if this is truly an emergency.

14.  Why aren’t the credit card purchases entered in Bi-Tech?

The basic ordering information is entered into Bi-Tech, however the funds are not encumbered since that is handled separately via the JP Morgan Chase UCAR Purchasing Card (UPC) system (PaymentNET.)  When the PR process becomes automated with Bi-Tech 7i, much more information will be available, such as amounts encumbered and what has been paid.  We are hoping to extract information directly from the JP Morgan Chase monthly statement.

15.  How is it determined when to award a purchase order vs. a Subcontract?

This determination is made by the Contract Administrator and depends on the complexity of the goods or services being purchased, along with understanding which Sponsor flowdown requirements need to be incorporated. The dollar amount is not the determining factor.

16.  Does Contracts need to obtain three or more competitive bids?

A competitive procurement is technically two responsive bids. However, more than two is desirable, and provides a better view of that particular industry. That said, in cases where there is a valid reason for a sole source, competition is not necessary.

17.  Why does my sole source justification get questioned?

UCAR is required by OMB circular A-110 and by our contract guidelines to purchase competitively whenever possible so sole justifications need to fully explain why only one source will meet our needs.   NSF and our outside auditors routinely review sole source justifications to be sure that we comply with regulations.  While the end user usually has a valid reason, it often is not well explained on the form. Usually a technical reason why the supplier is the only one who can furnish specific parameters is adequate explanation. It takes the same amount of time to solicit one proposal as it does to solicit three and competition typically leads to vendors providing the best price and terms possible. It is a best business practice to check the marketplace for best pricing and delivery.

18.  Who do I need to notify before making a purchase of hazardous material (hazmat)?

Milenda Powers (Health and Environmental Manager at x8625) in the Safety Department keeps track of all hazmat orders coming into the company and should always be notified prior to ordering more. Hazmat may not to be acquired via petty cash, petty cash reimbursements, UCAR credit card, or request for check, unless specifically pre-approved by the Contracts Manager (Billl Hammelat x8869) and the Health and Environmental Manager.

19.  Has an invoice been paid? What is the check number, date and amount of the check?

That information is all in Bi-Tech, and you may access that information, or call your Contract Administrator for assistance if the award was made by Contracts. The easiest screen to view that information is UCREPOST, page 3, moving over to the right side of the screen.  If you’re inquiring about an invoice not related to an award that the Contracts Office placed, please contact Finance at x8859.

20.  Is there anything I need to know before entering into an agreement such as a hotel or conference room agreement?

While the individuals involved need to decide on which hotel, how many rooms, catering, and all pricing, all contractual agreements themselves need to be reviewed and signed by the Contracts Office, who reviews them for corporate liabilities and risks. Under no circumstances should a hotel or conference agreement be signed by an individual outside of the Contracts Office.

21.  I have heard that UCAR is trying to decrease the number of its copier suppliers to benefit from lower prices. Who should I call for information on copiers?

The UCAR Contracts department’s strategy is to maximize our supplier performance on copier suppliers, while limiting our supplier base and managing supplier performance.  Please see the Contract’s Office information on “Copier Acquisitions.”  For any questions not answered there, call Linda Veach, x8865.

22.  Why is the Request for Check limit set at $500?

We had instances where UCAR personnel were giving preferential treatment to certain vendors, paying excessive prices and denying other vendors the opportunity to compete for work. There were also several instances in which equipment was bought by individuals who then requested reimbursement.  The main issues with that are that individuals have to pay tax, whereas UCAR typically doesn’t if items are bought corporately, as well as the fact that most warranties cannot be transferred from the buying individuals to UCAR. 

23.  Why do I get varying answers to my questions when I ask different Contract Administrators?

Efforts have been made to encourage consistency within Contracts whenever possible, and procedures are written and updated regularly. However, there is seldom only one way to go about doing something. If you are not satisfied with any given answer, please elevate your concern to the Contracts Manager, Bill Hammel, x8869.

24.  For year-end, what do the Divisions need to accrue, and what does Contracts accrue?

The Divisions are responsible for accruing all purchase orders that are not a 53xx object code, all B and N blanket orders, as well as their own UPC credit card orders. Contracts is responsible for accruals on any other types of orders that they’ve placed.

25.  Does the person approving payment on the “payment approval forms” that the Contracts Office sends out, need to have signature authority over that account?

No, the purpose of the signature is to verify that work has been completed according to task, so signature authority is not required.  The PR that was sent in to set up the award already contained the signature of the appropriate person with funding signature authority.

26.  Why does it take so long to award a subcontract?

Subcontracts can take longer to award for a number of reasons including: (a) vendor exceptions to contract terms and conditions that can lead to protracted negotiation [note that some of the terms included in our subcontracts are required by the NSF cooperative agreement]; (b) incomplete information provided to Contracts with the Purchase Requisition; (c) NSF review and approval of certain awards may add up to thirty (30) days; (c) supplier proposal preparation time on large, complex procurements; (d) completing documentation of contract files for audit compliance; and (e) internal reviews by legal and  management, when necessary. 

27.  UCAR has contracts in place with AT&T and Verizon for cellular service. What benefits are there from utilizing these contracts, and why aren’t there central agreements in place with T-Mobile or Sprint?

The benefits of using AT&T (now Cingular) are that they offer discounted (GSA) prices and allow UCAR to cancel a contract at anytime without penalty.  UCAR also gets 40% off retail on equipment and 10% off rate plans. If one bill is late on payment, they don't shut off all cell phones belonging to UCAR, which has happened with other suppliers.

The benefits of using Verizon are the same as above except that they have the best coverage throughout the USA.  The majority of UCAR/NCAR employees have plans with Verizon currently and the GSA discount rate we receive from Verizon is 19% off service plans of $34.99 or more, and 19% off equipment. 

We do benefit from GSA pricing from Nextel.  If a Division prefers to use Nextel we can open an individual blanket agreement with Nextel for them. However, this is not the preferred provider because separate blankets are required for each Division in order to keep invoices separate.

There are currently no contracts in place with T-mobile or with Sprint because the demand is not high.  There are several contracts with T-mobile that were done based on individual preferences, however this is not Contract’s recommendation. Based on history, these contracts have been very difficult to manage because there is no central point of contact and all calls go to a call center, where nothing from the previous call was recorded. This has made it very hard to correct invoicing or other problems with T-Mobile, or to remove taxes, which UCAR should not be paying.

When an employee enters into their own contract without using these UCAR agreements, they are bound to the full period of performance stated in that contract, may not terminate at any time, and are liable for all taxes.

28.  Does UCAR have contracts in place for cell phones for overseas travel?

We do have a contract with AT&T (now Cingular) as stated in the above question. If you currently have a “Global” phone with the Cingular plan, overseas coverage can be added for a fee, and can be cancelled when no longer needed. Verizon just recently added global /international phones as well.

29.  What is a ratification?  

UCAR General Policy 1-1-6, Authority to Commit the Corporation, delegates contractual authority to certain individuals within UCAR.  The purpose of this policy is to ensure that UCAR purchases are made in compliance with NSF, OMB and UCAR procurement requirements.  UCAR is not bound by commitments made by individuals lacking that authority.  The ratification process allows UCAR to sanction unauthorized purchases after the fact.  If the Contracts Office becomes aware of an unauthorized procurement, the Contract Administrator (CA) will contact the Division and advise them of the unauthorized procurement and ask them to process a ratification request in accordance with ratification guidelines. The CA will also notify the vendor that the procurement was not authorized and that UCAR is not bound by the purchase unless it is ratified. 

30.  Can the Contracts Office make purchases of personal items (cell phones, computers, etc.) for UCAR employees so that employees can benefit from UCAR’s negotiated discounts?

UCAR Policy 3-2-1, Acquisition of Goods and Services, prohibits the contracting staff from purchasing supplies and services for the personal use of UCAR employees.

UCAR employees may call the various suppliers to see if they might benefit from a UCAR discount, but it cannot be a tax-exempt purchase and the Contracts Office is not permitted to do this on your behalf. Some of the suppliers who do extend discounts for personal purchases are: Softchoice, Apple, Dell, Faison, and Kare Products.

31.  Can UCAR purchase items or services from UCAR employees? 

No. UCAR Policy 3-2-1, Acquisition of Goods and Services, prohibits purchases from UCAR employees, their immediate families or their business affiliates, except under limited conditions.

32.  Is the Nonencumbered Blanket Purchase Order (NBPO) checklist required on every new blanket order?

For new or existing multi-divisional NBPOs, the checklist is not required since there is an obvious need for this type of blanket order. Example is Faison Office Supplies.