Glossary of Purchasing Policy Terms

• Buyers
  Faculty, staff, contractors, temporary workers or students who have been granted purchasing authority. Party which acquires, or agrees to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for money or other consideration under a contract of sale.
• Competitive Proposals
  Procurement method used for purchases over $150,000 which requires formal solicitation for a proposal where the scope of the project does not lend itself to a straight bid. Results in fixed-price or cost-reimbursement contracts and are used when sealed bids are not appropriate.
• Competitive Threshold
  The threshold above which procurements must be sourced to multiple suppliers.
• Contract
  A written agreement reviewed by the University Contracts Office (UCO) or the Office of the General Counsel (OGC) for goods or services that constitutes a binding offer between the university and a supplier. It typically covers as much detail as possible about the agreement which may include, but is not limited to, items such as the total purchase price, terms, conditions, period and the recourse for either party in the event of a default. A fully executed contract supersedes otherwise applicable university terms and conditions for a purchase and must be signed by an authorized university signatory and an authorized representative from the supplier.
• Department Authorizers
  Faculty, staff or students who have purchasing or approval authority.
• Expense Report (ER)
  Detailed log of expenses recorded by an employee or non-employee that is submitted to an authorized approver for reimbursement, recording of expenses or reconciliation of an outstanding travel advance.
• Good
  An item procured that is tangible; something you can see or touch.
• Internal Suppliers
  University departments which have the capability to provide goods or services (e.g., bookstore, computer store, facilities management).
• Kickback
  Moneys, fees, commissions, credits, gifts, gratuities, things of value or compensation of any kind which is provided, directly or indirectly, to or by any prime contractor (university and/or principal investigator), prime contractor employee, subcontractor, or subcontractor employee to improperly obtain or reward favorable treatment in connection with a purchase, prime contract or subcontract.
• Micro-Purchases
  Purchases under $3,000 that are eligible to use simplified acquisition procedures if the risk and technical complexity does not require a formal solicitation or competitive bidding.
• National Association of Educational Procurement (NAEP)
  A non-profit professional association primarily dedicated to serving higher education purchasing officers in the United States and Canada to facilitate the development, exchange and practice of effective and ethical procurement principles and techniques within higher education and associated communities.
• Noncompetitive Proposals
  Procurement method that solicits a proposal from only one source (also known as sole-source or single source procurement) when certain criteria prohibit competition.
• Personal Expense
  Purchase made by an employee that is not a bona fide university business expense.
• Petty Cash
  Relatively small amount of cash kept at hand for making immediate payments for miscellaneous small expenses and/or for university stores or events.
• Purchasing Card (PCard)
  A card issued to authorized employees to make allowable purchases of goods and services on behalf of the university.
• Purchasing Checklist and Bid Summary Form
  A form that must be completed by the buyer when not using a preferred supplier, which documents the sourcing efforts and/or procurement justification of the buyer for all purchases above $3,000 from non-preferred suppliers. This form must be attached to the purchase order (PO) or purchasing card (PCard) purchase and acts as formal support for the purchase.
• Purchase Orders (POs)
  Legally binding (with terms and conditions) commercial documents used to control purchasing and to facilitate payments (after a three-way match). Purchase orders are completed by the buyer and approved via a designated workflow, in the university financial system, indicating the supplier, types, quantities and agreed prices for products or services the supplier will provide to the university.
• Preferred Supplier
  Supplier designation indicating that the university has negotiated commercial and legal terms and conditions in place with the supplier. Use of a preferred supplier for procurements within the Simplified Acquisition Threshold does not require any further competition and documentation.
• Procurement Services (PS)
  Department within the Finance Division that sets and maintains the university's Purchasing Policy and Procurement Manual, establishes strategic sourcing, designates preferred suppliers, encourages small business utilization, provides guidance on purchase execution, mediates supplier-customer disputes and approves purchases and exceptions as required. Monitors and offers guidance on the proper use and maintenance of the PCard and Travel Card programs.
• Sealed Bids
  Purchase method under which bids are formally solicited and where the fixed price (lump sum or unit price) is awarded to the responsible bidder with the lowest price.
• Service
  The performance of labor for the benefit of the university. Procurement of a service requires a contract approved by the University Contracts Office.
• Small Purchase/Simplified Acquisition Threshold
  Threshold under which a formal request for quote (RFQ) or request for proposal (RFP) is not required and competitive quotes are informal.
• Travel Card
  Departmental and individual institutional credit cards issued by the university designed to simplify and streamline the process of paying for business travel expenses.