PROCUREMENT PURCHASE ORDERS BUSINESS & OPERATIONS POLICY & PROCEDURES GUIDELINES. Terms & Conditions

Transcription

1 Terms & Conditions ACCEPTANCE - This Purchase Order constitutes a binding contract between the Vendor and Frisco Independent School District (FISD), to furnish the goods or service(s) specified on the face of the Purchase Order. By acceptance of this Purchase Order, the Vendor agrees to furnish all goods or service(s) in accordance with the terms and conditions specified herein. AGREEMENT - This Purchase Order represents the basis for the Vendor to deliver the required goods or service(s), and supersedes all prior offers, negotiations, exceptions and understanding (whether done orally or in writing). ASSIGNMENT - The rights and responsibilities of the Vendor to furnish the goods or service(s), specified herein will not be subcontracted, assigned, transferred, mortgaged, pledged or disposed of, unless agreed to by FISD and the Vendor. CANCELLATION - FISD reserves the right to cancel this Purchase Order at any time. If this Purchase Order is cancelled pursuant to the Vendor s default, FISD may obtain similar goods or service(s) elsewhere, and charge the Vendor for any damages incurred. CHANGES - FISD reserves the right to make changes to this Purchase Order (e.g., increase/decrease quantities, change delivery address). Any changes to the Purchase Order will be communicated to the Vendor by the issuance of a Change Order. DELIVERY - The Vendor shall deliver all goods Free On Board (F.O.B.) Destination, unless specified on Purchase Order. DISCOUNTS The Vendor shall indicate on the invoice any prompt payment discounts or trade discounts. INDEMNIFICATION The vendor shall indemnify and hold harmless FISD (including the Board of Trustees and the employees of FISD) from all claims of liability to third parties (including but not limited to: the injury or death of person(s), or the loss or damage to property) arising out of or in connection with the performance of the Vendor. The Vendor shall indemnify and hold harmless FISD (including the Board of Trustees and the employees of FISD) from all liabilities, cost, expenses, attorney fees, fines, penalties, or damages for any or claimed infringement of any patents, trademarks, copyrights, or other corresponding right(s) which is related to any part of the goods or service(s) the Vendor is required to provide or perform. The Vendor s obligation to this clause shall survive acceptance and payment of the goods or service(s) by FISD. INSURANCE The Vendor shall be required to carry insurance protection sufficient to meet all the liabilities that are mentioned herein. INSPECTION Prior to acceptance and payment, FISD reserves the right to inspect all goods (in whole or in part) and service(s) furnished by the Vendor. Goods or service(s), which (in the opinion of FISD) fail to conform to the required specification(s) or standard(s), may be considered nonconforming. INTERPRETATION This Purchase Order shall be construed and interpreted solely in accordance with laws of the State of Texas. Venue of any suit, right or cause of action arising shall lie exclusively in Collin County, Texas.

2 Terms & Conditions (con t) INVOICING Invoices must include the FISD Purchase Order number. Payment may be delayed if Purchase Order number is not on invoice. All invoices should be sent to: NON CONFORMANCE - The Vendor assumes all liability for shipping goods that do not meet the specification(s) and standard(s) specified on the face of the Purchase Order. FISD reserves the right to accept or reject goods that are non-conforming. If FISD rejects the non-conforming goods, said goods shall be returned to the Vendor at the Vendor s expense. The Vendor shall use best efforts to replace any non-conforming good(s) at the Vendor s risk and expense. PERFORMANCE By acceptance of this Purchase Order, the Vendor agrees to use best efforts to furnish the required goods or service(s). PRICES The price(s) specified on the face of the Purchase Order shall remain firm until FISD has processed the Vendor s invoice, or until the item has been accepted by FISD (whichever is later). PRODUCT RECALL The vendor shall notify the Procurement Agent of FISD immediately if a product recall is instituted on any item(s) the Vendor has delivered. This requirement shall survive payment and acceptance. QUANTITIES Quantities in excess of the quantities specified on the face of the Purchase Order may be returned to the Vendor at the discretion of FISD. All risk and expense for the return of the good(s) shall be borne by the vendor. QUALITY In the event no quality is specified on the face of the Purchase Order, the goods delivered and/or service(s) rendered hereunder shall be of the best quality. The Vendor shall ensure that all goods delivered to FISD will be new (i.e., previously unused and in its original packaging), and have not been remanufactured or refurbished. The Vendor also warrants that all services will conform to the standard(s) established herein. SAFETY If applicable, the Vendor shall deliver Material Safety Data Sheets (MSDS) with the requested good(s). TAXES The Vendor shall not include taxes on the invoice. Frisco ISD s Tax Exempt is # TERMS Unless otherwise specified, payment terms are net thirty (30) days. TITLE The title to any item delivered shall pass to FISD upon acceptance or payment (whichever is later). WARRANTY The Vendor warrants that all goods and service(s) furnished, shall be free from all defects, conform to all applicable specifications, and be suitable for its intended purpose(s). Neither acceptance of, nor payment for said goods and service(s) shall constitute a waiver or modification of any warranties of the Vendor, or the rights of FISD.

3 General Information All items to be purchased shall be procured through the use of an approved, signed District Purchase Order. The purchase order shall be processed through efinance, the District financial software system. From the Auditor: The purpose of having a purchase order system is to obtain proper approvals before commitments are made, allow for encumbrance accounting and provide budgetary control. Allowing purchases to be made before getting proper approval circumvents the purchasing system and reduces its effectiveness. From the Procurement Department: District purchase orders are to go through the district approval process prior to an order being placed or any financial transaction. Purchase orders are reviewed approved and submitted to vendor electronically from the procurement department on a daily basis. There should not be a delay in placing your orders if the purchase order meets all district purchasing requirements. Required Minimum Amount The minimum dollar amount for any district budgetary requisition/purchase order is $25.00, unless prior approval is received from the Procurement Manager. Requisition In order to procure goods or services, a requisition must be entered into efinance. Once all required levels of approval have been met, the Procurement Manager/Buyer will convert the requisition into a purchase order for final approval. NOTE: DO NOT give vendors the requisition # when referencing an order. The requisition number will always be different from the purchase order number. Only approved PO# s will be valid for District orders. Approval Levels The Buyer cannot convert a requisition into a purchase order until the requisition has met all levels of approval by the staff members associated with the specific level of budgetary security. This must happen in a chronological order in relation to how the budget code has been established to the approval group within efinance. Requisitions that are approved and meet appropriate vendor criteria (BID/RFP/CSP/CO-OP) are converted into purchase orders daily. If there is an emergency or need for a purchase order approval immediately, or call the Procurement Department for assistance. When trying to process a requisition to an unapproved vendor, efinance will give you an error message and no requisition will be processed. When a vendor does not have a current contract with FISD, the vendor is put on HOLD (becomes an unapproved vendor).a vendor number in efinance does not always mean they are a current approved vendor. Approved status can change from month to month.**please check the Master Vendor List prior to making a purchase**

4 Binding Commitment A purchase order, once approved, is a binding commitment or contract (reference policy Purchasing and Acquisition CH Local) for the district to remit payment to the vendor after the receipt of the item(s) and the invoice. A purchase order is also an important accounting document. It contains information for the expenditure to be made and the proper budgetary account code to be charged. Once approved, the purchase order encumbers funds, which serves as an expenditure control mechanism. Finally, the purchase order is utilized in the accounts payable process as it documents that an order has been received and accepted by the FISD staff, and payment can be made to the vendor. **Be sure to receive purchase orders online in efinance ONLY when all items ordered have been physically received ** The purchase order serves as a formal order for goods, materials and/or services from a vendor. Staff members are NOT permitted to call in an order. All signed, approved district purchase orders are sent to vendors by the Procurement Department. Purchase Order Form District budgetary purchase orders are reviewed daily. All orders are placed within two days of final approval of the purchase order if all district procurement requirements are met. If one or more of these components is incomplete or missing, the purchase order will either be delayed in processing and/or cancelled completely. Date Required/Delivery Date Approved vendor (available listing on the FISD website under Procurement/Purchasing page and then click vendor list). Contract number will automatically print on the PO. Buyer (person inputting PO) Ship to organization number ex: 006 for Liberty HS Commodity code number (category of type of purchase) Description Field - DETAILED information of the product/service to be ordered. Input detailed/itemized information for EACH item to be purchased. If a stock number is available, put in the description field first. Descriptions of goods or services must be detailed and complete (an invoice/stock/part number alone will not be approved). The more information the better. There are five lines available for each item s description. Attachments can be added to the requisition electronically through efinance. Quantity to be ordered Unit of Measure - Ex: EA - each, CS - case. Unit Price -enter dollar amount, tab~ enter cents. Do not use decimal. Discount (if applicable)-enter percentage Freight charges (if applicable) - Add a line with shipping and handling charges on the requisition. If the amount is unknown, use an average charge of 10% of the order. If there is a standard shipping amount click the shipping box and enter the exact amount. Budget code and account number

5 NOTES (added to the requisition) the notes will print before the line items of the purchase order. This field of the requisition is to relay information to the Procurement Department and/or vendor. Note any special delivery instructions and any other applicable information to assure a complete and correct order arrives in a timely manner. Comments Field - This area is used for specific instructions about how the Procurement Department should handle the purchase order. Use ONLY the following statement in the comments field if it applies, if not LEAVE BLANK: Blanket PO- for purchase order process Pick- up- for AltPay process Standard Procedure Faxing/ ing purchase orders: The Procurement Department will fax or the PO to the fax number or indicated on the PO. Attachments: Any attachments applying to the purchase order need to be uploaded electronically (PDF ONLY) and attached to the requisition. Library Books: Attach a list of books to the requisition that will be ordered through the vendor s online system. Prepayments and Deposits Required: When a payment is required to accompany the purchase order for the placement of a special order of a product, i.e., sunshades,. All documentation/attachments for this order must be electronically attached (PDF ONLY) to the requisition. Create a requisition and enter in the Notes section the details (what it is for, who it is for and details of the split payment) of the deposit or prepayment required. This will notify accounts payable of the required payment. Add line item one enter description as deposit or prepayment and include item description Add line item two enter description as final payment Example: An elementary school purchasing shade covers for the playgrounds. Refer to the efinance Training Manual for instructions for processing a requisition in the efinance system. Blanket Purchase Orders A blanket purchase order is issued to a pre-approved vendor authorizing multiple purchases from that vendor over a period of time. Blanket purchase orders are valuable because they allow the purchase of items when needed quickly. Blanket purchase orders are issued so that supplies, materials, or services are available as needed by user departments. This type of purchase order remains in effect for only a specified amount of time and has a specified dollar limit. During this time period, the District may purchase certain specified items from the vendor not exceeding the total dollar limit without issuing a change order to adjust the purchase order or to change the budget code.

6 Blanket Purchase Orders (con t) The advantage of blanket purchase orders is that merchandise is accessible to users with some flexibility and without the effort of processing purchase orders for each individual purchase. Note: All blanket purchase orders will be closed at the end of each fiscal year once final June payments are posted. Student Group/Club Purchase (Fund 865): Student Clubs can raise monies to make purchases for the club specifically or can also donate the money to their campus for a specific approved purchase. The student group will meet and vote on the purchase or donation. The minutes of the meeting approving a purchase or donation should have student officer signatures and a copy of the minutes must be attached to the requisition for the purchase or it should be attached to the donation paperwork. Donations for the Student Group/Club should be deposited into the 461 fund before purchases are made. Online Ordering The Procurement Department is responsible for establishing online accounts with approved vendors. Each campus and support department may be set up with the capability to purchase online through an approved vendor s website using an approved district purchase order. Vendors: The following approved vendors are currently available to order online: School Specialty Office Max Quill Office Supplies Lakeshore Learning To place online orders: Contact the Procurement Department to receive a login and password for the specific vendor. You will receive an from the vendor with that information. If your password has expired from lack of use, contact the Procurement Department to have the password reset. Log onto the vendor s website, create the order and follow the steps to submit order a cart/po # will be assigned. The order will be ed to the Procurement Department for approval Log into efinance, create a requisition, enter one line item with description of items and reference the cart/po# provided by vendor. Enter the total amount of the order. Once the requisition has completed the approval process the Procurement Department will process as a PO and send the order to the vendor. efinance punch out vendor: Office Depot Open the requisition listing page in efinance and click the PUNCH OUT button. You will be redirected to the vendor site to create your order. When you hit submit a requisition will be created in Efinance and you will be given the requisition #.