Virginia Economic Development Partnership Purchasing Policies & Procedures Manual
Summary
Purchasing Policies & Procedures Manual of the Virginia Economic Development Partnership, with dates revised of 01/14/2021 and 10/22/24. Its table of contents lists sections on ethics in public procurement, general procurement policies, specific rules and authorizations, standard procurement and payment methods, internal controls and record keeping, and other considerations. Listed methods include electronic procurement through eVA, corporate purchasing cards, state contracts and emergency purchases, with formal bids listed for $50,000 and above. Policy 6.6 provides that property no longer needed by VEDP is to be considered surplus property, that the Controller makes that determination, and that the Facilities Manager coordinates transfer or disposal.
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Virginia Economic Development Partnership
Purchasing Policies & Procedures Manual
INTRODUCTION .............................................................................................................. 1
SECTION 1: ETHICS IN PUBLIC PROCUREMENT .................................................... 3
SECTION 2: GENERAL PROCUREMENT POLICIES ................................................. 5
2.1 VEDP Procurement Office (Central) ............................................................ 5
2.2 VEDP Purchasing Agents (Divisions) .......................................................... 7
2.3 VEDP Management Responsibility.............................................................. 9
SECTION 3: SPECIFIC RULES AND AUTHORIZATIONS ....................................... 10
VEDP Procurement Levels.............................................................................. 10
3.1 Advertising, Marketing and Promotional Items ......................................... 13
3.2 Air and Rail Tickets ................................................................................... 14
3.3 Business Cards and Stationery ................................................................. 15
3.4 Computer Hardware, Software and Related Services ............................... 16
3.5 Conferences, Trade Shows, Sponsorships, and “Master Bills” ................. 17
3.6 Cooperatives and Joint Ventures ............................................................. 18
3.7 Express Mail ............................................................................................. 19
3.8 Maintenance Services ............................................................................... 20
3.9 Office Supplies, Furniture, Equipment (except Computers), and Other
Goods ..................................................................................................... 21
3.10 Real Estate and Construction .................................................................. 22
3.11 Research Services .................................................................................. 23
3.12 Services (Professional and non-Professional) ......................................... 24
3.13 Telecommunications (Office Phones, Mobile Phones, Calling Cards,
Voice Mail, Data Lines) ........................................................................... 25
SECTION 4: STANDARD PROCUREMENT AND PAYMENT METHODS ............. 26
4.1 Electronic Procurement – eVA .................................................................. 26
4.2 Corporate Purchasing Cards .................................................................... 28
4.3 State Contracts.......................................................................................... 35
4.4 Emergency Purchases .............................................................................. 36
4.5 Sole Source ............................................................................................... 38
4.6 Non-Compete Determination ..................................................................... 40
4.7 Proprietary Products.................................................................................. 41
4.8 Informal Bids (Authorized for purchases up to and under $50,000) ......... 43
4.9 Formal Bids - $50,000 and above (IFB's and Sealed Bids) ....................... 45
4.10 Competitive Negotiations - Request for Proposals (RFP) ....................... 47
4.11 Contracts ................................................................................................. 49
SECTION 5: INTERNAL CONTROLS AND RECORD KEEPING ............................ 50
5.1 Budgetary Controls.................................................................................... 50
5.2 Procurement Documentation ..................................................................... 52
5.3 Expenditure Coding ................................................................................... 53
5.4 Receipt of Goods and Services ................................................................. 54
5.5 Vendor Invoices, Payments, and Lease Purchases .................................. 56
5.6 Audit Reviews............................................................................................ 58
TABLE OF CONTENTS
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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5.7 Freedom of Information Act ....................................................................... 59
SECTION 6: OTHER CONSIDERATIONS................................................................... 60
6.1 Preferred Vendors ..................................................................................... 60
6.2 Debarred Vendors ..................................................................................... 61
6.3 Vendor Insurance, Performance Bonds, Bid Bonds ................................. 62
6.4 Vendor Performance Monitoring................................................................ 63
6.5 Vendor Appeals, Disputes, and Remedies ................................................ 64
6.6 Surplus/Unclaimed Property ..................................................................... 66
TABLE OF
CONTENTS
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
Virginia Economic Development Partnership
Purchasing Policies & Procedures Manual
INTRODUCTION
This Purchasing Policies & Procedures Manual establishes the policies and procedures to
be followed by VEDP employees fulfilling procurement and related logistical
responsibilities within their delegated limits. VEDP employees shall utilize sound,
prudent, and generally accepted purchasing practices when purchasing goods and services.
All purchasing will support VEDP’s mission and will be in the best interest of the
Commonwealth of Virginia.
As an independent authority, the Virginia Economic Development Partnership is exempt
from the provisions of the Virginia Public Procurement Act (VPPA). VEDP will consider
the benefits of established State contracts to procure certain goods and services. Such
sources are not deemed “mandatory”, and VEDP management is responsible for
determining the appropriate and most desirable source for each procurement. All
procurement policies and procedures are established by VEDP’s President and CEO within
the authorization granted by VEDP’s Board of Directors.
VEDP Procurement Policies and Procedures do not apply to contractors with which
VEDP, or any of its subsidiaries, may engage.
VEDP’s Board of Directors has adopted these policies for the procurement of goods and
services. Such policies shall: guide all VEDP procurements and ensure that VEDP:
• Seeks competition to the maximum practical degree.
• Prohibits discrimination against a bidder or offeror based on race, religion, color, sex,
sexual orientation, gender identity, national origin, ae, disability, status as a service
disabled veteran, or any other basis prohibited by federal or state law relating to
discrimination in employment.
• Practices prompt payment principles for goods and services. Obtains high quality goods
and services at a reasonable cost.
• Conducts all procurements in a fair and impartial manner, avoiding any impropriety or
appearance of impropriety.
• Provides all qualified vendors reasonable access to public business and neither
arbitrarily nor capriciously excludes or discriminates against any viable offeror.
• Practices openness and administrative efficiency.
• Allows flexibility in fashioning details of such competition.
• Provides clear rules, in advance of competition, governing contract awards.
• Draws specifications that reflect VEDP’s procurement needs, rather than being drawn
to favor a particular vendor.
• Freely exchanges information between purchasers and vendors, inasmuch as such
exchange does not negatively affect VEDP’s business objectives or violate associated
confidentiality requirements.
INTRODUCTION 1
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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This manual provides instruction to all VEDP employees as they identify and pursue goods
and services procurements to fulfill VEDP’s business needs. However, as indicated herein,
specific responsibilities and authorities have been defined for purchasing goods and
services on VEDP’s behalf. All employees are therefore directed to the VEDP responsible
party, prior to pursuing any procurement.
Certain procedures and forms referenced in this manual are subject to change, as VEDP
continues to evolve its procurement operations and systems. In cases where this manual
appears to contradict instructions on forms or other materials, these policies and
procedures will take precedence.
The Controller and Procurement Manager are available to assist in any purchasing activity
and to interpret and apply these policies and procedures. The provisions of this manual
have been developed at the discretion of management and may be amended or canceled at
any time at VEDP’s sole discretion. These provisions supersede all previously issued
procurement policies and procedures and may not be amended or added to without the
express written approval of VEDP’s President and CEO within the authorization granted
by VEDP’s Board of Directors.
No member of VEDP management or representative has any authority to enter into any
agreement contrary to these policies and procedures relative to contracts, purchases or other
areas included in this manual.
INTRODUCTION 2
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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SECTION 1: ETHICS IN PUBLIC PROCUREMENT
POLICY: It is important that VEDP employees making procurements avoid
improprieties as well as the appearance of such improprieties. The
integrity and credibility of the procurement program requires VEDP
employees to be impartial, fair, and free of any relationships that may
cause them to be unduly partial to any vendor or product. It is up to
each individual to ensure they do not violate the spirit of procurement
ethics.
PROCEDURES: Procurement ethics will always include but may not be limited
(depending on the circumstances) to the following considerations.
1. Legitimate Business Need. The procurement of goods and
services will be limited to those necessary to the operation
and mission of VEDP, and its business interests.
Purchasing of goods and services through VEDP’s
procurement process
for non-VEDP use is prohibited.
2. Conflicts of Interest. A VEDP employee is prohibited from
participating in a procurement transaction if they (or in
some cases their spouse or family) have an interest in the
potential vendor’s business.
3. Gifts. No VEDP employee having official responsibility
for a procurement transaction shall solicit, demand, accept,
or agree to accept from a bidder, offeror, contractor, or
subcontractor any payment, loan, subscription, advance,
deposit of money, services or anything of more than
nominal value, present or promised.
4. Disclosure of Subsequent Employment. Any VEDP
employee having official responsibility for a procurement
transaction who accepts employment with a bidder, offeror,
or contractor with whom he/she has dealt in any official
capacity, must provide written notice to VEDP of their
intention to accept such employment.
5. Kickbacks. Kickbacks involve getting something of
value from a bidder, offeror, contractor, or subcontractor in
an attempt to influence the award of business and are
Section 1: ETHICS IN PUBLIC PROCUREMENT 3
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prohibited.
6. Order Splitting. The placement of multiple orders
within other than a reasonable time period to one or more
vendors for the same, like, or related goods and services to
avoid using the appropriate method of procurement or to
remain within the delegated purchasing authority is
prohibited.
7. Misrepresentations. Any VEDP employee having official
responsibility for a procurement transaction is prohibited
from knowingly falsifying, concealing or misrepresenting
material facts concerning procurement.
8. Insufficient Authorization. No employee shall obligate
VEDP without having received prior written authorization
from an approved official. To do so is a misrepresentation of
authority.
Any questions regarding the above or other procurement ethics
issues, or the interpretation thereof, should be directed to the
Controller, or the Procurement Manager.
The willful violation of any of the above provisions may lead to
disciplinary and/or legal actions.
Section 1: ETHICS IN PUBLIC PROCUREMENT 4
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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SECTION 2: GENERAL PROCUREMENT POLICIES
2.1 VEDP Procurement Office (Central)
POLICY: VEDP will establish and maintain a central Procurement Office,
reporting to the Controller, which will have overall responsibility for
developing, interpreting, and enforcing all VEDP purchasing
policies and procedures. In some cases (as specified herein),
approval from the Procurement Office will be required prior to
pursuing the purchase of goods and services on VEDP’s behalf.
Otherwise, the Procurement Office may delegate procurement
authority to Division Senior Vice Presidents and Vice Presidents, or
their designated Purchasing Agents, as long as such delegated
procurements are conducted in accordance with all applicable VEDP
policies and procedures.
PROCEDURES: 1. The Controller will maintain VEDP’s Purchasing Policies and
Procedures Manual, issuing updates or amendments as
necessary and approved by the President and CEO, and will
provide copies of the Manual to VEDP’s Procurement Manager,
Division Senior Vice Presidents and Vice Presidents,
Purchasing Agents, and other parties as appropriate and
necessary.
2. The Controller will designate a Procurement Manager as head
of the Procurement Office who will support the Director, and
VEDP in general, as regards purchasing activity, and will
maintain purchasing documentation and related files, as
specified herein, in good order. Although the Procurement
Manager will work closely with the Controller on a day-to-day
basis, the Procurement Manager is not authorized to approve
procurements which specifically require authorization of the
Controller.
3. The Controller may from time-to-time designate Purchasing
Agents, who typically will report to Division Senior Vice
Presidents and Vice Presidents, who will have certain
authorities to process and approve procurements within the
guidelines provided herein. If such guidelines or other policies
and procedures are not followed, the Controller may rescind
such authorizations.
Section 2: OVERVIEW OF VEDP PURCHASING 5
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4. The Procurement Manager will maintain a record of all
Purchasing Agent designations or rescissions for all persons
who are capable of authorizing procurements, as prescribed
herein. The Fiscal Office will keep a record of all delegated
authorities and ensure that the appropriate staff is aware of such
delegations.
5. VEDP’s Procurement Office will provide and/or coordinate
training to Division Senior Vice Presidents and Vice Presidents,
managers, and Purchasing Agents as necessary to ensure
continued compliance with VEDP policies and adherence to
sound procurement practices.
6. VEDP’s Procurement Office will coordinate with the Fiscal
Office to ensure that payments for goods and services (or
credits due) are processed timely, and in accordance with all
VEDP policies and procedures.
7. VEDP’s Procurement Office will coordinate any inquiries,
reviews, or audits which may be requested and conducted from
time to time by the Board of Directors, or other State entities.
8. VEDP’s Procurement Office must be advised of, and will
coordinate, all vendor disputes, appeals and resolutions.
Section 2: OVERVIEW OF VEDP PURCHASING 6
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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2.2 VEDP Purchasing Agents (Divisions)
POLICY: The Division Senior Vice Presidents and Vice Presidents will, with
the concurrence of the Controller, designate certain individual(s) in
each Division as being authorized Purchasing Agent(s). Such Agents
may be delegated the authority to procure items on behalf of their
Division (within designated limits), as long as they comply with all
VEDP purchasing policies and procedures.
PROCEDURES: 1. Each designated Purchasing Agent will review and understand
this Purchasing Policies and Procedures Manual and will
contact the Procurement Manager (see Section 2.1) with
questions, or if clarifications and samples are needed.
2. The Purchasing Agent shall coordinate all purchases made by
their division, obtaining additional authorizations as necessary,
and maintaining documentation as specified herein. No
purchases shall be made by any other division employee unless
specifically coordinated and authorized by their Purchasing
Agent.
3. The Purchasing Agent will review the division’s needs and
determine the possible sources and procurement methods
available to fulfill those needs (see Section 4). It is up to the
Agent, under the direction of the Procurement Office, to
evaluate and select which sources/methods should be evaluated
for a given purchase.
4. The Purchasing Agents may be issued a corporate purchasing
card to purchase items directly, within the limits and guidelines
established herein. The Agent shall be responsible for the
safekeeping of the card, ensuring it is used only for purchases
which are necessary to the operation and promotion of VEDP’s
business interests.
5. The Purchasing Agent will coordinate with their Division
Director and managers prior to any procurement to ensure that
adequate funding is available, and if any questions arise as to
the business need or appropriateness of the procurement.
6. The Purchasing Agent shall ensure that all goods and services
which were ordered are indeed received and acceptable prior to
authorizing or requesting payment.
Section 2: OVERVIEW OF VEDP PURCHASING 7
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7. The Purchasing Agent will be responsible for producing and
maintaining certain procurement documentation, as prescribed
herein. Depending on the specific item and/or dollar amount,
this may require only the corporate card receipt, or could
require more extensive specifications, bids, purchase orders,
contracts and the like (See Section 3). All such documentation
shall be made available for review or retention as directed by
the Procurement Manager.
Section 2: OVERVIEW OF VEDP PURCHASING 8
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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2.3 VEDP Management Responsibility
POLICY: Although VEDP has established a Procurement Office and Division
Purchasing Agents to facilitate the procurement process, Division
Senior Vice Presidents and Vice Presidents will have primary
responsibility for ensuring that all procurements are appropriate,
adequately funded, and in VEDP’s best interest.
PROCEDURES: 1. Division Senior Vice Presidents and Vice Presidents will
identify a capable individual within their division as a
designated Purchasing Agent. The Purchasing Agent will report
directly to the Division Director regarding all procurement
activity.
2. The Division Director will manage the division’s fiscal budget
and will notify their Purchasing Agent of funds allocated for
procurements, or changes thereto, during the course of the fiscal
year.
3. Division Senior Vice Presidents and Vice Presidents and/or
Cost Center Managers will be required to authorize certain
procurements which exceed the Purchasing Agent’s limits of
authorization, as defined herein, and/or assist the Purchasing
Agents to obtain additional authorizations as required for a
given procurement.
4. Division Senior Vice Presidents and Vice Presidents will be
responsible for ensuring that all division procurements are
coordinated through their Purchasing Agent (if one so
designated) or through the Procurement Office (if an Agent has
not been designated for the division).
5. Division Senior Vice Presidents and Vice Presidents and Cost
Center Managers are responsible for immediately notifying their
Purchasing Agent and/or the Procurement Office (depending on
the circumstances) if they identify or suspect that a violation of
VEDP’s procurement policies have occurred or are about to
occur.
Section 2: OVERVIEW OF VEDP PURCHASING 9
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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SECTION 3: SPECIFIC RULES AND AUTHORIZATIONS
VEDP Procurement Levels
POLICY: VEDP’s standard procurement methods should first be evaluated by
using the Procurement Levels Guide. This Guide is established by
procurement value and delineates the authorized procurement
method, authorized approver, documentation, and SWAM
requirements.
Certain international procurements are exempt from VEDP’s
standard informal and formal bid processes. These international
services are usually unique in nature and are only provided by a
single or limited number of vendors. An example is consulting
services provided in a foreign country, requiring specific foreign
marketing expertise or a business presence in that country. When
such procurement is made, the procurement method will be deemed
an International Procurement and will be noted on the Accounting
Transmittal Form (ATF) payment request and will include a Non-
Compete Determination Form and other available supporting
documentation.
PROCEDURES: Reference the following Procurement Levels Guide for the
procurement of goods and services.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 10
Date Issued: 7/1/96; Date Revised: 01/14/2021; 10/22/24
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VEDP Procurement Levels Guide
If Total Authorized Authorized Payment Method/ Bid Requirement (SWAM
Expenditure Is Procurement Methods Approver ATF Documentation Domestic Only) 1
Under $10,000 State Contract or Procurement Corporate Purchasing Procurement Manager will
For goods or eVA Portal Manager Card solicit SWAM vendors for
non-professional office and technology
services Vendor Quote Division Purchasing Purchase Order or Invoice supply bids
Agent
$10,000 to Under State Contract SVP/VP eVA Purchase Order --
$50,000 Informal Bid SVP/VP 3 Bids and Purchase Solicit a minimum of 3 bids,
For goods or Order or Contract to include 1 SWAM vendor,
non-professional if available
services Emergency Purchase SVP/VP Emergency Determination --
Form and Purchase Order
or Contract
Sole Source SVP/VP Sole Source Justification --
Form and Purchase Order
or Contract
Non-Compete SVP/VP Non-Compete Form and
Purchase Order or --
Contract
$50,000 to Under State Contract SVP/VP eVA Purchase Order --
$100,000
Invitation for Bid SVP/VP 3 Bids and Purchase Solicit a minimum of 3 bids
Order or Contract to include 1 SWAM vendor,
if available
Request for Proposal SVP/VP 3 Proposals and Purchase Solicit a minimum of 3
Order or Contract proposals to include 1
SWAM vendor, if available
Emergency Purchase SVP/VP Emergency Determination
Form and Purchase Order --
or Contract
Sole Source CAO
Sole Source Justification --
Non-Compete CAO Form and Purchase Order
or Contract
Non-Compete Form and --
Purchase Order or
Contract
$100,000 and Up State Contract President and CEO or eVA Purchase Order --
Designee
Invitation for Bid President and CEO or 4 Bids and Purchase Solicit a minimum of 4 bids,
Designee Order or Contract to include 2 SWAM
vendors, if available
Request for Proposal President and CEO or 4 Proposals and Purchase Solicit a minimum of 4
Designee Order or Contract proposals, to include 2
SWAM vendors, if available
$100,000 and Up Emergency Purchase President and CEO or --
(Cont’d) Designee
1
E-mail Procurement Manager for available SWAM vendors or search www.dbsd.virginia.gov. Additional guidance for vendor
searches is available from VEDP’s Procurement Office.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 11
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VEDP Procurement Levels Guide
If Total Authorized Authorized Payment Method/ Bid Requirement (SWAM
Expenditure Is Procurement Methods Approver ATF Documentation Domestic Only) 1
Emergency Determination
Sole Source President and CEO or Form and Purchase Order --
Designee and CAO or Contract
Sole Source Justification
Non-Compete President and CEO or Form and Purchase Order --
Designee and CAO or Contract
Non-Compete Form and
Purchase Order or
Contract
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 12
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3.1 Advertising, Marketing and Promotional Items
POLICY: Advertising, marketing and promotion are central to VEDP’s
mission. As such, goods and services procurements to support such
functions can vary widely, and are often obtained in combination
with specific projects, events, cooperative agreements, and/or joint
ventures. Obtaining advertising, marketing and promotional items is
often included as a line item in the divisional budgets, or as part of a
more comprehensive agreement, and is managed as such (also see
Sections 3.5 and 3.6).
VEDP intends to promote and utilize competition to its advantage,
and will strive to obtain bids for such goods and services through
alternative sources and methods wherever possible and practical. In
cases where advertising, marketing and promotional items can be
obtained directly (i.e., not as an integral part of a larger cooperative
agreement, event, or joint venture) standard procurement guidelines
will apply.
PROCEDURES: Contact VEDP’s Communications & Promotions division for
VEDP’s branding guidelines for the procurement of advertising,
marketing, and promotional items.
Contact VEDP’s International Trade division for VEDP’s branding
guidelines for the procurement of international advertising,
marketing, and promotional items.
Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 13
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3.2 Air and Rail Tickets
POLICY: Policies and procedures for arranging and purchasing airline and rail
tickets for business purposes by VEDP employees is described in the
VEDP Travel Policies and Procedures Manual. In some cases,
airline travel may be arranged by VEDP and “blocks” of tickets
purchased in combination with specific projects, events, cooperative
agreements, and/or joint ventures.
In all cases where multiple tickets are being purchased as a “block”,
the purchase must be authorized by the Division Director, who will
be responsible for ensuring the arrangements and total cost of the
tickets are reasonable, appropriate, and documented as part of the
overall cost of the specific project, event, cooperative agreement,
and/or joint venture. (Also see sections 3.5 and 3.6).
PROCEDURES: Air and rail tickets may be purchased using the Agency Travel Card,
the Small Purchase Charge Card, or the Travel Charge Card issued
to individuals.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 14
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3.3 Business Cards and Stationery
POLICY: Business cards and stationery may be purchased and supplied to
employees, as necessary, to promote and support VEDP’s business
needs. In some cases (e.g., international trips) several business cards
may be appropriate, and significant lead time may be needed to write,
translate, proof, and print the materials.
While each division will be responsible for identifying their needs,
business cards and stationery orders are placed through the
Procurement Office. The Procurement Office coordinates artwork
with the Communications and Promotions division, and in
accordance with VEDP’s Graphic Marketing Standards. The
Procurement Office also ensures master business card stock is
available for orders as they are requested.
PROCEDURES: Contact the Procurement Office with order request. Include quantity
(500 per box), an electronic markup of the new card information or
desired changes, and translation artwork for international cards.
Cards can usually be received within seven business days.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 15
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3.4 Computer Hardware, Software and Related Services
POLICY: Due to the technical nature and need to standardize where possible,
procurement of all computer hardware, software and related services
(such as delivery, installation, programming, testing, maintenance,
training and the like) will be conducted by VEDP’s Information
Technology (IT) division. This includes any personal computers or
software, modems, printers, cables, memory chips, ink/toner
cartridges, ribbons, cd’s, tapes, component upgrades, or other items
which are used within the Divisions, as well as items located and
operated centrally on behalf of the entire VEDP.
On-line services are considered computer-related, and as such will
be procured following the guidelines established in this section.
If a division identifies a need for computer hardware, software,
and/or related service they must contact the IT division. The IT
division will evaluate the need, identify the potential
products/sources, and select the appropriate procurement method.
Due to the highly technical nature of rapidly evolving information
technologies, VEDP recognizes the value of establishing ongoing
business relationships with vendors and manufacturers. As a result,
VEDP will seek to establish term contracts to provide consistent and
reliable sources of computer products and services.
PROCEDURES: In addition to the expenditure authorizations in Section 3, the
Director of Information Technology must also authorize all
technology procurements regardless of expenditure level or
procurement method.
Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services.
Section 3: SPECIFIC RULES AND AUTHORIZATIONS 16
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3.5 Conferences, Trade Shows, Sponsorships, and “Master Bills”
POLICY: Expenditures related to conferences, trade shows, and “master bills”
will typically have two components: 1) the travel expenses incurred
as a result of VEDP employee participation; and 2) sponsorship of
various forums, exhibit space, and materials to be provided at the
event, and in some cases sponsoring VEDP prospects and guests.
Policies and procedures regarding travel expenses (item 1) are
provided in the VEDP Travel Policies and Procedures Manual. This
section covers all other procurements (item 2).
Conferences, trade shows, and sponsorships, by their very nature, are
unique. They typically cannot be compared directly with each other,
and the same event can seldom be obtained from “multiple vendor
sources”. VEDP sponsorship of conferences and trade shows is often
done in combination with cooperative agreements and/or joint
ventures.
Trade shows, conferences, and sponsorships may be exempt from
VEDP’s standard informal and formal bid processes. These
procurements are usually unique in nature and are only provided by
a single vendor. When such procurement is made, the procurement
method will be deemed a Sole Source procurement.
PROCEDURES: Conferences, trade shows, and sponsorships are most often vendor
specific and not a competitively bid procurement. This type of
procurement may be deemed a Sole Source and requires a Sole
Source Determination Form, notation as a Sole Source on the
Accounting Transmittal Form (ATF) payment request, and other
available supporting documentation.
Contact VEDP’s Communications & Promotions and International
Trade divisions for VEDP guidelines for the procurement of
conference, trade show and sponsorship participation.
Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services.
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3.6 Cooperatives and Joint Ventures
POLICY: VEDP will often work with commercial enterprises, private
organizations, or other public entities to advertise, market, and
promote business in the State. These arrangements, which are
referred to as cooperatives or joint ventures, require substantial
evaluation, planning, and negotiation before any VEDP funds are
committed or expenditures are made.
PROCEDURES: VEDP management, and in particular The Division Senior Vice
Presidents and Vice Presidents and Cost Center Managers, should,
wherever appropriate, strive to introduce competition during the
evaluation, planning and negotiation process before entering into a
cooperative/joint venture agreement, as well as during the
procurement of goods and services to support the agreement (also
refer to sections 3.1 and 3.5).
All such cooperatives and joint ventures will be documented as a
multi-party written agreement, with specific line-item budgets
prepared and authorized in advance by the Division Director in all
cases. If VEDP expects to be reimbursed by any other party for
expenditures incurred by VEDP on behalf of the cooperative/joint
venture, the written agreement must include a schedule for all such
reimbursements. The agreement must be produced by the Division.
The original agreement must be forwarded to the Procurement
Office, with a copy maintained in the Division’s files.
If the budget for expenditures associated with the agreement is
$100,000 or greater, authorization is required from the President and
CEO or designee.
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3.7 Express Mail
POLICY: Express mail should be utilized to mail materials which are
essential to “next day business”, and which could not be transmitted
electronically. Priority service (e.g., guaranteed delivery by 10:00
am) should only be used on an exceptional basis, since it is
significantly more expensive and may not necessarily arrive earlier
than standard overnight service. It is up to each manager to ensure
that such abuses do not occur in their area of responsibility.
VEDP utilizes the State contract for express deliveries, currently
with United Parcel Service (UPS).
PROCEDURES: Shipment requests are created at the UPS website www.ups.com.
Each division has a separate account number for invoicing purposes
and the appropriate division account should be added and selected
when creating an online shipping request. Detailed contract
information is available at
http://dps.dgs.virginia.gov/dps/contracts/CovaContractDetail.aspx?
ContractNumber=91026-09.
Contact Information:
United Parcel Service (UPS)
8701 Park Central Dr., Suite 240
Richmond, VA 23227
Contact: Patty Fallin, Business Development
Local Phone No. (804) 261-3590
Virginia District Toll Free No. (888) 461-5046
Email: pcfallin@ups.com
Fax No. (804) 261-3523
Virginia Account Manager
Contact: Michael Kiefer Phone No. (804) 743-4301
Email: mkiefer@ups.com
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3.8 Maintenance Services
POLICY: VEDP’s Procurement Office will be responsible for establishing all
contracts with providers of maintenance services, to include office
facilities/furniture, office equipment, State and VEDP-owned
vehicles, and other maintenance services as deemed necessary. In
the case of computer hardware/software, all maintenance contracts
will be authorized and managed by the Director of Information
Technology. No other maintenance contracts or services should be
established or ordered directly by any division or cost center.
Maintenance contracts may include scheduled/preventative
maintenance, fixed periodic fees for on-call repair services, or time-
and-materials rates for on-call repair services. Services may include
diagnostics, cleaning, refilling/supplying, scheduled upgrades,
“temporary loaners,” or “total replacements (swaps).”
In most cases, the purchase of items subject to maintenance will
include a warranty period, which should be evaluated prior to
purchasing the items and before establishing a contract for additional
maintenance periods and services. If such items are being procured,
the division purchasing agent or division manager must coordinate
with the Procurement Office to ensure warranty and maintenance
needs are properly analyzed.
PROCEDURES: If maintenance (repair) is required, the Procurement Office should be
contacted before requesting or dispatching maintenance services. In
the case of computer hardware/software maintenance, Information
Technology should be contacted through a Help Desk request.
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3.9 Office Supplies, Furniture, Equipment (except Computers), and Other Goods
POLICY: Other than those items otherwise addressed in Sections 3.1 through
3.13 of this manual, procurement of office supplies, furniture,
equipment (other than computers), printing and other goods will be
purchased in accordance with the rules established in this section.
For procurements involving both goods and services, it will be
considered a “goods” procurement if the estimated cost of goods is
more than 50% of the total purchase price.
In order to ensure the consistency and quality of all furnishings, the
Procurement Office will be responsible for procurement of all
furniture. If a division identifies a need for furniture and/or related
service, they must contact the Procurement Office. The Procurement
Office will evaluate the need, identify the potential products/sources,
and select the appropriate procurement method.
For purchases of (a) goods or nonprofessional services for $200,000
or more or (b) professional services or non-transportation-related
construction of $80,000 or more, VEDP shall post notice on the
Department of General Services’ central electronic procurement
website or VEDP’s website on the day of award or announcement of
decision to award such contract, whichever occurs first.
Procurement of any fixed assets requires special processing and
accounting by the Fiscal Office. If tangible products are being
ordered which are greater than $5,000 and have an expected “life”
greater than one year, contact the Procurement Office (see Section
5.3).
PROCEDURES: Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services. In addition to the expenditure
authorizations in the Procurement Levels Guide, the Procurement
Office must also authorize all procurements of furniture, including
modular systems, regardless of expenditure level or procurement
method.
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3.10 Real Estate and Construction
POLICY: VEDP’s Procurement Office will be responsible for establishing all
contracts for real estate or construction services. No other contracts
or services shall be established or ordered directly by any division or
cost center.
For purchases of (a) goods or nonprofessional services for $200,000
or more or (b) professional services or non-transportation-related
construction of $80,000 or more, VEDP shall post notice on the
Department of General Services’ central electronic procurement
website or VEDP’s website on the day of award or announcement of
decision to award such contract, whichever occurs first.
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3.11 Research Services
POLICY: Research services are unique and typically cannot be compared
directly with each other. The same research can seldom be obtained
from “multiple vendor sources” and are often a sole source
procurement. VEDP’s needs for research services are often based on
specific marketing projects, and can be of a consulting nature, basic
research, or data services. Research services may be included as a
line item in the divisional budgets, or as part of a more
comprehensive agreement, and are managed as such.
PROCEDURES: Seek guidance from your Division Vice President identifying the
need for a specific research service. The Research division may also
be a resource to prevent duplicate research service subscriptions.
Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services.
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3.12 Services (Professional and non-Professional)
POLICY: Other than those items otherwise addressed in Sections 3.1 through
3.13 of this manual, procurement of services will be purchased in
accordance with the rules established in this section. For
procurements involving both goods and services, it will be
considered a “service” procurement if the estimated cost of labor is
more than 50% of the total purchase price. In addition to the
expenditure authorizations shown below, Human Resources must
authorize all staff augmentation (“temporary staff”) services
regardless of expenditure level or procurement method.
Professional services include work which must be performed by an
entity licensed in the practice of accounting, actuarial, architecture,
land survey, landscape architecture, law, medicine, optometry,
pharmacy or engineering. For procurements involving both goods
and services, it will be considered a "service” procurement if the
estimated cost of labor is more than 50% of the total purchase price.
All legal service needs will be referred to VEDP’s in-house counsel.
Soliciting professional services differs from other services, in that
costs or man-hour estimates should not be obtained during the initial
solicitation, and negotiations may be conducted with more than one
entity at the same time.
All other services are deemed non-professional and VEDP’s standard
procurement guidelines will apply.
For purchases of (a) goods or nonprofessional services for $200,000
or more or (b) professional services or non-transportation-related
construction of $80,000 or more, VEDP shall post notice on the
Department of General Services’ central electronic procurement
website or VEDP’s website on the day of award or announcement of
decision to award such contract, whichever occurs first.
PROCEDURES: Reference the Procurement Levels Guide, Section 3, for the
procurement of goods and services.
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3.13 Telecommunications (Office Phones, Mobile Phones, Calling Cards, Voice Mail,
Data Lines)
POLICY: Due to the technical nature and need to standardize where possible,
procurement of all telecommunications products and related services
(such as delivery, installation, programming, testing, maintenance,
training, local/long distance service, and the like) will be conducted
by the Information Technology division.
On-line services are considered computer-related, and as such will
be procured following the guidelines established in this section.
PROCEDURES: If a division identifies a need for telecommunications equipment
and/or related service they must enter a Help Desk request to the
Information Technology division. They will evaluate the need,
identify the potential products/sources, and follow VEDP’s standard
procurement procedures for procurement of item(s).
Reference the Procurement Levels Guide in Section 3. In addition to
these expenditure authorizations, the Information Technology
Director must also authorize all technology procurements regardless
of expenditure level or procurement method.
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SECTION 4: STANDARD PROCUREMENT AND PAYMENT METHODS
4.1 Electronic Procurement – eVA
POLICY: VEDP utilizes eVA as the procurement method for Procurement
Office and technology supplies and equipment, and other products
that can be obtained in a cost effective, timely and efficient manner.
PROCEDURES: 1. VEDP utilizes eVA to research State-registered vendors and
products and services, solicit bids and proposals, and create
requisitions and purchase orders. VEDP’s Procurement
Manager and some division purchasing agents are registered
eVA users, but for the most part, all eVA orders are generated
from the Procurement Office.
2. VEDP Divisions will follow current procurement policies when
purchasing goods and services through eVA. For example,
office supplies and information systems hardware/software
procurements will be centralized through VEDP’s Procurement
Manager. Other products and services not available through an
eVA vendor may be purchased at the Division level on a case-
by-case basis.
3. To comply with Virginia’s efforts to increase small, women-
owned and minority business procurements, VEDP has
implemented the following procedures for Procurement Office
and technology equipment and supplies, and other types of
procurements as applicable:
• When products or services are needed, the Division will
contact the Procurement Office by e-mail with their product
or service needs. Item numbers should be provided if
known.
• The Procurement Manager will obtain pricing from the
State’s office supply contract vendors through the eVA
procurement system to include pricing from available
SWAM vendors.
• The Procurement Manager will notify the requestor of
product availability and delivery date and, if acceptable,
place the order.
• Once the products are received, the requestor will forward
packing slips and invoices to the Procurement Manager for
payment processing, and all invoices and costs will be
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charged to the ordering Division.
4. The Procurement Manager will certify monthly eVA purchases
through the eVA Dashboard by the 5th day of the following
month.
5. VEDP follows eVA’s security guidelines, including designating
a Security Officer to maintain user information and perform
annual certification of users. The Procurement Manager
approves all eVA purchases and delegates approval authority
during the Procurement Manager’s absences. VEDP currently
utilizes eVA as a purchase order tool and efficient use of State
contracts. No eVA interfacing with other systems is currently
active. If eVA is unavailable, purchases will be made by
approving written quotes or verbal phone orders.
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4.2 Corporate Purchasing Cards
POLICY: VEDP is a political subdivision participant of the
Commonwealth’s Bank of America VISA purchasing
charge card program, which enables streamlined procedures
for procuring and paying for small dollar goods and services.
The purchasing card program reduces the volume of
accounts payable transactions and the associated
administrative costs by eliminating vendor invoices and
consolidating multiple vendor payments into one monthly
payment to the charge card vendor. Suppliers are paid
directly by the purchasing card contractor, currently Bank of
America VISA. In addition, the purchasing card contractor
provides a variety of management information reports to
assist in maintaining control over purchases and payments
via Works, Bank of America’s online program management
system.
While the use of a purchasing card leads to accounting
efficiencies, VEDP maintains strict internal control over the
use of cards and ensures that relevant procurement
guidelines are observed. The purchasing card should be
viewed at all times as an efficient means of payment, not a
substitute for VEDP’s procurement guidelines and
procedures.
Roles The Program Administrator and Back-up Program
Administrator are registered with Bank of America as the
only persons authorized to make changes (e.g., add or cancel
cards, change card controls, etc.) for the purchase card at the
corporate account level. The Program Administrator and
Back-up Program Administrator are designated by VEDP’s
Controller.
Card Issuance Purchasing cards are issued to only those individuals who
have appropriate purchasing authority. When requesting a
card for an employee, the applicant’s supervisor must
provide the Program Administrator with documentation
supporting the issuance of the card, including an analysis of
the potential type and level of activity and justification for
per transaction and monthly limits. The employee will
complete a Purchasing Card Request form and submit it to
their supervisor for signature. VEDP’s Program
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Administrator will apply for purchase cards directly online
using the Bank of America Works system.
Cards are issued with the name of the cardholder and the
cardholder's organization name embossed on the front.
Cardholders must receive training and sign a Purchasing
Card Employee Agreement form prior to obtaining the
purchasing card.
Purchase Limits The Program Administrator sets the limits on each
purchasing card to appropriate levels based on the
cardholder’s buying needs and card usage. Written
authorization from the cardholder’s supervisor is required
for all limit settings and changes. A cardholder may not,
under any circumstances, authorize any charge in excess of
the transaction limit set by the Program Administrator.
Violation of this policy could result in the loss of charge
privileges for a minimum of three months or permanently.
The Program Administrator maintains documentation on
justification for all limit changes.
Temporary purchase limits may be requested for a one-time
or unusual charge (in these circumstances, a return date to
the cardholder’s original purchase limits is entered in
Works).
The cycle limit designates the total amount a cardholder can
spend during the monthly billing cycle. This is typically
referred to as the cycle or credit limit. A running balance is
maintained in Bank of America’s database that increases
with each authorized charge until the cardholder reaches the
assigned cycle limit. If the limit is reached before the end of
the billing cycle, new attempts for authorization are denied.
The single transaction limit designates the maximum dollar
amount allowed for cardholders to spend on each purchase
or transaction. At the point-of-sale, Bank of America’s
system verifies the purchase amount falls within the
approved transaction limit. If the amount requested for
authorization exceeds the limit set by the Program
Administrator, the authorization is denied. If a cardholder
authorizes a charge in excess of the per transaction limit
established for that card, whether by splitting the invoice,
encouraging the vendor to circumvent the Bank of America
denial, or any other means, this may result in the suspension
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of card privileges for a minimum of three months.
Therefore, cardholders shall be mindful of transaction and
monthly limits prior to making purchases on the purchasing
card.
Program Administrators are permitted to obtain a purchasing
card. However, they are not allowed to perform maintenance
on their own card. Requests for limit increases, restriction
removals, and other such changes, must be completed by the
backup Program Administrator.
Purchase Card Use Purchasing cards may be issued to full or part-time
employees, but not to contract workers.
Purchasing cards must be used for official VEDP purchases
only and all purchases must comply with VEDP’s
Procurement Policy.
Use of the purchasing card for personal items or cash
advances is prohibited.
If a cardholder authorizes a charge in excess of the per
transaction limit established for that card, whether by
splitting the invoice, encouraging the vendor to circumvent
the Bank of America denial, or any other means, the card
may be suspended for a minimum of three months.
The purchase of airline tickets, mass transit tickets, car
rentals on the State Car Rental Contract and
accommodations is permissible for VEDP employees. The
purchasing cardholder should never present their
purchasing card at check-in for their own travel
arrangements.
The purchasing card may be used to reserve/pay for blocks
of rooms for VEDP-sponsored meetings or to make a deposit
on a traveling employee reservation. Once the traveling
employee checks in, the accommodation charges must be
made on the traveler’s personal or corporate travel card and
submitted as an expense reimbursement to the Fiscal Office.
A traveler who has a purchasing card cannot use their own
purchasing card to check in or check out at a hotel, unless
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the traveler is making a VEDP-sponsored group reservation
and the purchase cardholder is part of the group.
Note that some new airline travel regulations require that
passengers who purchase electronic tickets with a charge
card must produce the card at check-in. It is recommended
that verification be performed with the airline of choice to
determine the airline’s practices.
Gift Card/Certificate Purchase of gift cards and/or gift certificates using the
Purchases purchasing card is permissible for employee recognition and
for speaker appreciations, attendance awards, or raffle
awards at VEDP-sponsored events. Since gift cards and gift
certificates are in essence cash, and generally do not have
the employee’s name on them, they pose a very high risk for
possible abuse. Therefore, each card/certificate must
contain a unique number for tracking purposes and a log
must be maintained itemizing each card’s unique number,
card value, and recipient name.
Cardholder, All new cardholders, supervisors, reviewers, and approvers
Supervisor, Reviewer, will receive purchase card training. Additional refresher
and Approver Training training and card program updates will be provided as
needed by the Program Administrator.
Purchase Card Security Authorized use of the purchasing card is limited to the
person whose name appears on the face of the card. The
purchasing card or its number must not be shared with
another person who is not a vendor with whom they are
conducting business. A cardholder must not share their card
number with another person or the named cardholder’s
privileges may be suspended.
All cardholders are prohibited from sending the account
number via email (even if it is included in an attachment),
faxing the account number, mailing card information, or
sharing card information with anyone to make a purchase.
The purchasing card must be maintained in an accessible but
secure location.
If the purchasing card is lost or stolen, the cardholder must
immediately notify Bank of America and VEDP’s Program
Administrator.
Bank of America Cardholder Customer Service
Toll Free #: 888-449-2273
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Collect #: 509-353-6656 outside the U.S.
VEDP’s terminated employee checklists require that
terminated employees must turn in all purchase cards and
contact the Program Administrator in a timely manner.
Billing Options Enterprise Rental Car offers a direct bill option, which
allows travelers who are renting an Enterprise Rental Car
through the State contract in Virginia to check in without the
need for a credit card. Contact Enterprise at 804-358-2388
to get the needed information to set up a purchasing card
account to be charged for Enterprise charges.
Enhanced Management Cardholders have access to Works’ Payment Center to
Features access their monthly statement.
https://www.centresuite.com/Centre/Public/Logon/.
All cardholders are required to register their card in Works’
Payment Center for access to their charges online. This will
facilitate a timely reconciliation due to the cardholder’s
ability to check their charges at any time during the month.
Purchase Logs Each cardholder is required to maintain a monthly Purchase
Log and must update it as each purchase is made so spending
limits can be monitored and purchasing activity can be
reconciled to the monthly charge card statement. A
Purchasing Log Excel template is available from VEDP’s
Program Administrator.
Charge Card Statement VEDP’s Fiscal Office is responsible for processing
Payment Procedures payments to Bank of America no later than the 7th of each
month. Cardholder monthly log data is uploaded into
VEDP’s accounting system and a check is processed for the
total monthly amount due to Bank of America.
Reconciled statements are reviewed and approved in writing
by the cardholder’s supervisor or reviewer, then reconciled
with the corresponding Bank of America VISA Card
statement prior to receipt of the next Bank of America VISA
Card statement.
Original payment processing documents are maintained in
VEDP’s accounts payable file for audit purposes.
Supporting documentation is maintained by the Program
Administrator regarding limit changes for audit purposes.
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Program Administrator Daily:
Responsibilities • Entering cardholder data, reviewing, and approving
card applications;
• Setting appropriate transaction and credit limits on each
card based on the cardholder’s buying needs;
• Issuing cards;
• Ensuring that Virginia Sales tax has not been charged
on purchases;
• Ensuring that if a card ordered is not received in 7
business days, it is cancelled for security reasons, and
requesting a new one to protect against possible mail
theft.
Monthly:
• Monitoring on a regular basis the transactional data for
the purchasing card to ensure compliance to policy (e.g.,
split orders, VEDP’s procurement policy).
Annually:
• Ensuring that an annual analysis of each cardholder’s
card usage and card limits is performed and
documented;
• Monitoring and canceling inactive cards;
• Educating cardholders in proper card usage, security,
and procurement guidelines;
• Performing an annual audit of the WORKS system to
identify and confirm that each users’ WORKS system
access is still appropriate and required and deleting all
identified unnecessary user profiles immediately.
As Needed:
• Promptly canceling cards as appropriate;
• Ensuring agency and cardholder compliance with all
purchasing card policies and procedures presented in
this policy, including proper processing of monthly
payments;
• Promptly notifying Bank of America of any potential or
confirmed fraudulent use of the purchasing card and
steps that are being taken to address the issue (e.g., card
cancellation, communication with the vendor and/or
Bank of America, notification of law enforcement
officials as appropriate);
• Managing vendor issues pertaining to not receiving
ordered goods/services or incorrect charges. If
resolution cannot be made at the Program Administrator
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level, notify Bank of America, providing the necessary
information referenced on the monthly bill.
PROCEDURES: 1. Cardholder orders approved product or service directly from
participating suppliers.
2. Supplier processes order.
3. Corporate card company automatically checks for compliance
with applicable card limits.
4. Supplier delivers product or service; Cardholder verifies all
items received.
5. Cardholder enters the transaction onto the Corporate Purchasing
Card Log and includes expenditure coding and receipts.
6. Corporate card company arranges payment to supplier in as few
as three business days.
7. Cardholders receive a monthly statement to verify purchases.
8. Cardholder verifies the corporate card statement, provides
signature authorization on Corporate Purchasing Card Log and
forwards to Procurement Office for payment processing.
9. VEDP’s Procurement Office reviews consolidated bill,
compares to Corporate Purchasing Card Log and forwards to
the Fiscal Office for payment.
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4.3 State Contracts
POLICY: VEDP utilizes State contracts when goods or services can be readily
obtained through a contract in a cost effective, timely, and efficient
manner. Available contracts may be researched at
www.eva.virginia.gov.
1. Check with the Procurement Office to determine if the desired
PROCEDURES: item is on a State contract.
2. If the item is not on State Contract, refer to the appropriate
purchasing section and Procurement Levels Guide. If the item
is found to be on State Contract and is cost-competitive, request
that the Procurement Manager order from the State Contract
through eVA.
3. An eVA purchase order is electronically forwarded to the
vendor.
4. When the order arrives, match the packing ticket to the purchase
order. Notify vendor immediately if there are any
discrepancies.
5. When the invoice arrives, match the invoice to the packing
ticket and purchase order. Notify vendor immediately if there
are any discrepancies.
6. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach invoice, packing
slip, and copy of purchase order.
7. Forward receipt to Procurement Manager for eVA orders placed
on the Procurement Manager’s corporate purchasing card.
8. Forward the ATF and attachments to the Fiscal Office for
payment processing.
9. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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4.4 Emergency Purchases
POLICY: To be considered an emergency for purchasing reasons, a situation
must exist which is likely to:
• Endanger life or property
• Cause injury to any person or property
• Cause cessation of essential services, operations, or functions of
VEDP
• Cause financial loss or risk of loss to VEDP
• Cause non-performance of any duty or obligation of VEDP
imposed by law or contract
• Any other event which may be detrimental to VEDP and its
programs and policies.
VEDP shall not be required to seek competition or engage in
competitive negotiation if it determines in writing that an
emergency exists and makes the purchase needed with such
competition as is practicable under the circumstances. VEDP shall
state in such writing 1. That the contract is being awarded on an
emergency basis, 2 that which is being purchased, 3 the contractor
selected for such purchase, 4 the date of the award of such contract,
and 5 the relationship of such purchase to the public purpose and
mission of VEDP. Such notice shall be posted on the Department
of General Services’ central electronic procurement website or
VEDP’s website on the day VEDP awards or announces its
decision to awards or announces its decision to award such contract,
whichever occurs first.
Emergency purchases require justification and authorization by a
Division SVP or VP ($10,000 to under $50,000), the CAO ($50,000
to under $100,000) or the President and CEO and CAO ($100,000
and above). (See Section 3.) Authorization of an Emergency
Purchase indicates that in management’s judgment, the benefits of
an immediate and direct purchase of goods or services outweigh the
drawbacks of limited competition.
PROCEDURES: 1. If an emergency purchase is deemed necessary, complete the
Emergency Determination form (for purchases $10,000 and
above), and obtain required authorizing signatures. If the
emergency is likely to endanger life or property, cause injury to
any person or property, or cause cessation of essential services,
operations, or functions of VEDP, the Emergency
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Determination form may be completed after the fact.
2. If practical, competition should be solicited through informal
bids or otherwise before issuing a purchase order. If
competition is not practical, utilize the most direct and least
time-consuming method to procure the goods or services.
Typically this will be issuance of a purchase order or contract.
3. Depending on the method of procurement selected in step two,
all subsequent steps in the applicable process should be
completed (See sections 4.1 through 4.10). Declaring an
Emergency Purchase does not relieve the purchaser from
completing all necessary procurement documentation or
obtaining necessary authorization signatures.
4. Refer to VEDP’s Continuity of Operations Plan (COOP) for
emergency purchasing procedures during a COOP event.
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4.5 Sole Source
POLICY: A purchase of goods or services may be considered sole source if
there is only one source practicably available. A contract may be
negotiated and awarded to that source without competitive
negotiation. VEDP’s Sole Source Form documents the basis for this
determination. VEDP shall issue a written notice stating that only
one source was determined to be practicably available and
identifying that which is procured, the contractor selected, and the
date on which the contract was or will be awarded. This notice shall
be posted on the Department of General Services’ central electronic
procurement website or VEDP’s website on the day VEDP awards
or announces its decision to award such contract, whichever occurs
first.
Note: Sole source must not be confused with proprietary purchases,
the latter being one where only a specific brand, make or model is
acceptable, but it can be obtained from several sources (e.g., dealers,
resellers, distributors).
Sole source purchases require justification and authorization by a
Division Director ($10,000 to under $50,000) or the Controller
($50,000 to under $100,000) or the President and CEO ($100,000
and above). (See Section 3.) Authorization of a sole source indicates
that in management’s judgment no other viable sources are
practicably available who can supply the required good or service in
a timely manner.
Sole source documentation will not be required for any procurement
that, in the normal course of business, would ordinarily not be
competitively bid, such as postal replenishment; marketing and trade
shows and conventions (which are held at specific locations out of
VEDP’s control and not subject to alternatives); sales, marketing
and advertising sponsorships (which by their very nature are sole
source because they are associated with specific shows, events, or
advertorial programs with specific providers of those programs and
cannot be completed otherwise).
VEDP shall post notice on its website on the day of award or
announcement of decision to award such contract, whichever occurs
first.
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PROCEDURES: 1. If a sole source is deemed necessary, complete the Sole Source
Justification form (for purchases $10,000 and above), and
request an eVA order from the Procurement Office.
2. The purchase order is forwarded to the vendor.
3. When the order arrives, match the packing ticket to the purchase
order. Notify vendor immediately if there are any
discrepancies.
4. When the invoice arrives, match the invoice to the packing
ticket and purchase order. Notify vendor immediately if there
are any discrepancies.
5. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach Sole Source
Justification form, invoice, packing slip, and copy of purchase
order, or forward receipt to Procurement Manager for eVA
orders placed on the Procurement Manager’s corporate
purchasing card.
6. Forward the ATF and attachments to the Fiscal Office for
payment processing.
7. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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4.6 Non-Compete Determination
POLICY: A purchase of goods or services may be considered Non-Compete if
there is only one source practicably available.
Note: Non-Compete must not be confused with proprietary
purchases, the latter being one where only a specific brand, make or
model is acceptable, but it can be obtained from several sources
(e.g., dealers, resellers, distributors).
Authorization of a Non-Competitive Award indicates that in
management’s judgment, no other viable sources are practicably
available to supply the required good or service in a timely manner.
Non-Compete purchases require justification and authorization by a
Division Director ($10,000 to under $50,000) or the Controller
($50,000 to under $100,000) or the President and CEO ($100,000
and above). (See Section 3).
Non-Compete procurements may include marketing and trade shows
and conventions (which are held at specific locations out of VEDP’s
control and not subject to alternatives); sales, marketing and
advertising sponsorships (which by their very nature are non-
competitive because they are associated with specific shows, events,
or advertorial programs with specific providers of those programs
and cannot be completed otherwise).
PROCEDURES: 8. If a Non-Compete determination is deemed necessary, complete
the Non-Compete Determination form (for purchases $10,000
and above), and request an eVA order from the Procurement
Office.
9. The purchase order is forwarded to the vendor.
10. When the order arrives, match the packing ticket to the purchase
order. Notify vendor immediately if there are any
discrepancies.
11. When the invoice arrives, match the invoice to the packing
ticket and purchase order. Notify vendor immediately if there
are any discrepancies.
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12. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach Non-Compete
Determination form, invoice, packing slip, and copy of purchase
order, or forward receipt to Procurement Manager for eVA
orders placed on the Procurement Manager’s corporate
purchasing card.
13. Forward the ATF and attachments to the Fiscal Office for
payment processing.
14. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
4.7 Proprietary Products
POLICY: Proprietary purchases involve goods where only specific brands,
makes or models are acceptable, but they can be obtained from
several sources (e.g., dealers, resellers, distributors). Rarely do
proprietary purchases involve services. If only one source is
available, it is considered a Sole Source Purchase (see Section 4.5).
VEDP will strive to define its needs in a non-proprietary fashion,
where multiple brands, makes and models can be considered.
However, in the case where only one is practicable (e.g., computer
software upgrades), VEDP may specify manufacturer, make and
model.
By definition, some level of competition is available for procuring
proprietary products, and VEDP will strive to utilize such
competition to its advantage when procuring proprietary products.
PROCEDURES: 1. If a proprietary product is deemed necessary, clearly and
completely document the specifications for all potential
suppliers. Contact the Procurement Office for approval.
2. Competition should be solicited through informal bids, formal
bids, RFP’s or otherwise before issuing a Purchase Order. The
procurement levels, methods, and authorizations outlined in
Section 3 define the appropriate methods and authorizations.
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3. Depending on the method of procurement selected in step 2, all
subsequent steps in the applicable process should be completed
(See sections 4.1 through 4.10). Declaring a proprietary
product does not relieve the purchaser from completing all
necessary procurement documentation or obtaining necessary
authorization signatures.
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4.8 Informal Bids (Authorized for purchases up to and under $50,000)
POLICY: Informal bids, which include “Telephone Quotations” and “Written
Quotes” are an efficient method for introducing limited competition
into the procurement process. They are typically used when the
goods or services are readily definable, and the total expenditure
level is relatively low. They are likely the quickest way to obtain
goods and services competitively but cannot be utilized in every case
(See Section 3 to determine when/if informal bids are allowed).
PROCEDURES: 1. Define the goods or services in sufficient detail to be able to
communicate the need verbally or in brief written form to
potential suppliers. If specifications are too detailed or complex
to be communicated verbally or on a few written pages, it is
likely that a more formal process should be followed (See
Sections 4.8 and 4.9).
2. Forward the specifications, either verbally, by e-mail, by
facsimile, or by mail, to at least three (3) potential suppliers, to
include one SWAM vendor. Provide all suppliers a reasonable
and identical period of time (e.g., by C.O.B Friday) to provide a
verbal or written quote. A Bid Sheet is available on VEDP’s
Intranet site.
3. Document the supplier quotes. Additional information provided
by the suppliers (if any) should be attached. This includes
determining if the bid will indeed fulfill the specifications and if
the vendor is reasonably capable of delivering (“responsive and
responsible”).
4. Award will be made to the lowest-cost, responsive and
responsible bidder. The other bidders may be notified, but
public “bid openings” are not required.
5. A purchase order may be requested from the Procurement
Office.
6. Purchase order is forwarded to vendor.
7. When the order arrives, match the packing ticket to the purchase
order. Notify vendor immediately if there are any
discrepancies.
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8. When the invoice arrives, match the invoice to the packing
ticket and purchase order. Notify vendor immediately if there
are any discrepancies.
9. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach bid documentation,
invoice, packing slip, and copy of purchase order.
10. Forward the ATF and attachments to the Fiscal Office for
payment processing.
11. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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4.9 Formal Bids - $50,000 and above (IFB's and Sealed Bids)
POLICY: Formal bids also referred to as “Invitations For Bid” (IFB) and
“Sealed Bids” are used to introduce open competition into the
procurement process. Specifications (or Scope of Work) form the
backbone of good formal bid procurements. Specifications must be:
• Sufficiently complete to ensure VEDP’s needs are adequately
met.
• Broad enough to ensure competition.
• Drawn to reflect VEDP’s procurement needs rather than favor a
particular vendor.
If specifications or scope of work cannot be written to: (i) completely
define the needs; (ii) permit open competition; or (iii) if quality and
concept factors outweigh price factors, the competitive negotiation
procurement method should be used (see Section 4.9).
PROCEDURES: 1. Define the goods or services in sufficient detail to be able to
communicate the need in written form (IFB) to potential
suppliers. The IFB shall include a copy of VEDP’s standard
General Terms and Conditions for multi-party contracts.
2. Forward the IFB to at least three potential suppliers to include
one small, woman owned, and/or minority owned (SWAM)
potential supplier, when available, for contract values between
$50,000 and under $100,000; and to four potential suppliers to
include two SWAM potential suppliers, when available, for
contract values $100,000 and higher, and advertise as prudent
and applicable (see Section 5.5). Contact the Procurement
Office for assistance in identifying potential suppliers. Provide
all suppliers a reasonable and identical period of time (e.g., by
C.O.B July 15) to provide a written quote.
3. Optionally, the Procurement Manager is available to assist with
scheduling and conducting a bidder’s conference for all
interested suppliers if the bid is unusually large and/or complex.
4. Any changes or clarifications which are identified subsequent to
issuance of the IFB must be made in writing and forwarded to
all interested suppliers.
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5. Receive the vendor responses, and begin the evaluation process.
This includes determining if the bid will indeed fulfill the
specifications and if the vendor is reasonably capable of
delivering (“responsive and responsible”). Vendor references
may also be requested and contacted.
6. Award will be made to the lowest-cost, responsive and
responsible bidder. The other bidders may be notified, but
public “bid openings” are not required.
7. A purchase order or contract may be requested from the
Procurement Office. Forward the purchase order /contract to
vendor. For contracts, obtain vendor’s counter-signature.
8. When the order arrives or services are received, match the
packing ticket or other documentation to the purchase order or
contract. Notify vendor immediately if there are any
discrepancies.
9. When the invoice arrives, match the invoice to the packing
ticket and purchasing order or contract. Notify vendor
immediately if there are any discrepancies.
10. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach invoice, packing
slip, and copy of purchase order.
11. Forward the ATF and attachments to the Fiscal Office for
payment processing.
12. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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4.10 Competitive Negotiations - Request for Proposals (RFP)
POLICY: If specifications or scope of work cannot be written to: (i) completely
define the needs; (ii) permit open competition; or (iii) if quality and
concept factors outweigh price factors, the competitive negotiation
procurement method should be used to procure needed goods and
services. While written specifications must be developed, additional
discussions, clarifications, and negotiations are usually expected as a
result of RFP's.
PROCEDURES: 1. Requests for Proposal are created, distributed, and awarded
from the Procurement Office. Division staff shall provide the
Procurement Manager with defined goods or services in
sufficient detail to be able to communicate the need in written
form (RFP) to potential suppliers. The RFP should include a
copy of VEDP’s standard General Terms and Conditions for
multi-party contracts.
2. Forward the RFP to as at least three potential suppliers to
include one small, woman owned, and/or minority owned
(SWAM) potential suppliers, when available, for contract
values between $50,000 and under $100,000; and four potential
supplies to include two SWAM potential suppliers, when
available, for contract values $100,000 and higher, and
advertise as prudent and applicable (see Section 5.5). Contact
the Procurement Office for assistance in identifying potential
suppliers. Provide all suppliers a reasonable and identical
period of time (e.g., by C.O.B July 15) to provide a written
response.
3. Optionally, schedule and conduct a proposal conference for all
interested suppliers if the RFP is unusually large and/or
complex.
4. Any changes or clarifications which are identified subsequent to
issuance of the RFP must be made in writing and forwarded to
all interested suppliers.
5. Prior to receiving proposals, the criteria to be used to evaluate
the responses and select a vendor must be agreed to by the
procurement selection team (committee), and published by the
Procurement Office. Typically this will involve specific
categories, weighted to reflect the selection team’s priorities,
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such as; (i) proposed solution/approach for meeting VEDP’s
needs; (ii) qualifications of vendor/staff; (iii) plan and schedule;
(iv) prior experience and references; and (v) cost.
6. Receive the vendor responses and begin the evaluation process.
This includes analyzing vendor proposals relative to the
published evaluation/award criteria. Award will not necessarily
be made to the lowest-cost, responsive and responsible bidder.
Negotiation of price is allowed and should be considered along
with more qualitative criteria. The other bidders may be
notified, but public “bid openings” are not required.
7. The Procurement Office will complete a purchase order or
contract for the selected vendor and obtain required authorizing
signatures.
8. The purchase order/contract is forwarded to vendor. For
contracts, obtain vendor’s counter-signature.
9. When the order arrives or services are received, match the
packing ticket or other documentation to the purchase order or
contract. Notify vendor immediately if there are any
discrepancies.
10. When the invoice arrives, match the invoice to the packing
ticket and purchase order or contract. Notify vendor
immediately if there are any discrepancies.
11. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach invoice, packing
ticket, and copy of purchase order.
12. Forward the ATF and attachments to the Fiscal Office for
payment processing.
13. ATF’s $10,000 and greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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4.11 Contracts
POLICY: A multi-party contract (typically two party – vendor and VEDP) may
be established for procurements, usually as a result of an informal or
formal bid process.
The contract will include VEDP’s General Terms and Conditions,
and will include all specifications, RFP's/IFB’s, vendor proposals
and the like, when appropriate. The actual expenditure of funds
against the contract will be authorized by the issuance of purchase
order(s) and related vendor invoices, and a properly authorized
Accounting Transmittal Form.
PROCEDURES: 1. Contact the Procurement Office before entering into a contract.
2. If the Procurement Office determines a contract will be
required, assistance will be provided to ensure the solicitation
documents and procurement process provides the necessary
information
and steps.
3. Order splitting is prohibited. Order splitting is the placement of
multiple orders within other than a reasonable time period to one
or more vendors for the same, like, or related goods and services
to avoid using the appropriate method of procurement or to
remain within the delegated purchasing authority. Order splitting
results in higher administrative costs and is a highly inefficient
practice. Requirements should be combined when practical to
obtain quantity discounts and other administrative efficiencies.
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SECTION 5: INTERNAL CONTROLS AND RECORD KEEPING
5.1 Budgetary Controls
POLICY: Budgetary control is essential to VEDP’s procurement process. All
divisions and cost centers must prepare and submit a budget request
each fiscal year which includes, among other items, the projected
expenditure levels for procurement of goods and services. The
operating plan should further define major procurements that are to
be obtained during the course of the year. The operating plan will be
approved by the President and CEO and the VEDP Board.
Before any division or cost center processes an order for goods and
services, management must ensure that proper funds are available
(based on the available budget) to support the payment for such
items. Currently, VEDP accounting records reflect the
“expenditure” of those funds once the items are received, to ensure
subsequent purchases do not result in an over-expenditure of the
budget.
PROCEDURES: 1. The Division Senior Vice Presidents and Vice Presidents, Cost
Center Managers, and Purchasing Agents should participate in
the preparation of the overall division budget, and submit to the
Fiscal Office for review, revision, approval and potential
amendment during the year.
2. The Fiscal Office will establish the approved budget in VEDP’s
financial systems, and will produce monthly reports showing
the budget, less expenditures (payments), and remaining
(unexpended) funds.
3. Before authorizing any purchase, the responsible person
(depending on the expenditure level and procurement method,
see Section 3) must ensure that budget funds are available.
4. If funds are available, and all other purchasing procedures have
been complied with, the procurement may be authorized and
forwarded to the supplier. This results in the “encumbrance” of
division funds, although the current VEDP systems do not track
the encumbrance. The divisions/Purchasing Agents are
responsible for tracking the order and the associated
“encumbrance” until received.
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Once the goods/services are received, and the associated invoice is
processed for payment by the Fiscal Office, the subsequent monthly
expenditure and budget reports will reflect a decrease in level of
remaining (unexpended) funds.
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5.2 Procurement Documentation
POLICY: Producing and maintaining adequate documentation of all
purchasing activity is another essential element of internal controls
within VEDP. The documentation prescribed by this manual will be
maintained in all instances. Sections 3 and 4 specify the
documentation to be produced, depending on the type of goods or
services being procured, level of the expenditure, and the
procurement method utilized.
PROCEDURES: The divisions will be responsible for developing, organizing and
submitting the majority of such documentation. Unless specified
otherwise, the original of all key procurement documents will be
forwarded to the Procurement Office (Fiscal Office for ATF's and
Invoices), as prescribed herein (see Section 4). The original copies
of such documentation will be retained by the Procurement Office
for an appropriate period of time.
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5.3 Expenditure Coding
POLICY: All VEDP purchasing transactions will be coded to ensure the
appropriate division and cost center budgets are reduced accordingly.
PROCEDURES: Division management shall designate the applicable expenditure
code for the purchase, which indicates the type of goods or services
being acquired.
The Fiscal Office shall maintain the list of all valid division and cost
center codes and expenditure codes, and provide copies of such lists
to all division Purchasing Agents. Each Division Purchasing Agent
will be responsible for assigning the appropriate code from the
standard code tables, and entering them on the applicable Accounting
Transmittal Forms and corporate card logs.
The Procurement Office will ensure that any purchases of Fixed
Assets are identified, and the Fiscal Office will record the transaction
on VEDP’s financial records. A Fixed Asset is defined as:
A tangible or intangible item with a cost of $5,000 or more and a life
expectancy of more than one (1) year. All costs directly related to the
acquisition of a fixed asset (i.e., freight, installation) should be
included in the computation of the total costs.
.
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5.4 Receipt of Goods and Services
POLICY: The procurement process does not end when the purchase order or
contract is issued. The division that purchases any goods or services
is responsible for ensuring that such goods and services are received
in a timely manner and in good order, relative to the procurement
specifications and contracts.
In addition, the receipt of goods will be acknowledged by both the
individual who originally authorized the purchase, as well as a
division Purchasing Agent or manager who is independent of the
original procurement decision.
Finally, payment for all items ordered and received will be done by
the Fiscal Office only, based, in part, on their receipt of all necessary
procurement documentation and authorizing signatures.
PROCEDURES: 1. The receiving division will inspect all goods and services
immediately upon delivery, and compare them to the
procurement specifications.
2. If discrepancies are found, notify the supplier immediately and
describe the problem in detail.
3. If the discrepancy goes uncorrected for five (5) days, again
notify the vendor, this time in writing, attaching any
specifications or other documentation which clarifies the
problem, and copy the Procurement Office on the
correspondence. This notification is an “informal notification
of discrepancy”, which should be so stated in the
correspondence.
4. If the receipt of goods and services is not corrected by the above
steps within ten (10) business days, notify the Procurement
Office (a total of fifteen (15) business days after initial receipt).
The Procurement Office is responsible for all subsequent
actions, including processing of potential vendor appeals,
disputes, resolutions, and defaults.
5. Once all goods and services are received in good order, the
Accounting Transmittal Form (ATF) will be completed. This
includes obtaining signatures from the individual who originally
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authorized the procurement (Purchasing Agent or VEDP
management), as well as the signature of someone independent
of the original decision (Purchasing Agent or VEDP manager).
The latter should be the individual who actually receives and
inspects the delivered items, and enters the receiving
information on the ATF.
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5.5 Vendor Invoices, Payments, and Lease Purchases
POLICY: VEDP will only issue payments to vendors if:
• Goods or services are received in accordance with the
procurement specifications (see Section 5.5).
• Expenditure coding and authorizations are evident (see Sections
3 and 5.3)
• Appropriate documentation is available (see Sections 3 and 4).
If the above criteria are met, VEDP’s Fiscal Office will process the
transaction, and the vendor will receive payment in accordance with
VEDP’s payment policy.
If no terms have been negotiated but the vendor invoice specifies
terms, VEDP may, in its sole discretion, accept such terms if they are
favorable to VEDP, or otherwise elect to pay on a “Net 30” basis.
VEDP shall promptly pay for the completely delivered goods or
services by the required payment date. Partial payments will be
allowed only if the receipt of the partial shipment/delivery can be
confirmed, and if the vendor invoice reflects the partial
shipment/delivery (i.e., the vendor should invoice only the amount
delivered, with subsequent shipments/delivery being invoiced
separately).
Any items which VEDP intends to acquire through a lease
arrangement, regardless of expenditure level or procurement
method, must be approved by the Controller prior to issuing a
purchase order or contract.
All Sales and Use Taxes will be the responsibility of the vendor. If
an exemption is requested, only the Procurement Office is allowed to
issue a Sales and Use Tax, Certificate of Exemption.
PROCEDURES: 1. When the order arrives (or services are delivered), match the
packing ticket or other materials to the purchase order and/or
contract, if applicable. Notify vendor immediately if there are
any discrepancies.
2. When the invoice arrives, match the invoice to the packing
ticket, purchase order, and/or contract. Notify vendor
immediately if there are any discrepancies.
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3. Prepare an Accounting Transmittal Form (ATF), providing all
expenditure coding information, and attach invoice, packing
slip, and copy of purchase order.
4. Forward the ATF and attachments to the Fiscal Office for
payment processing.
5. ATF’s $10,000 or greater are reviewed by the Procurement
Office for proper procurement method and documentation
before payment is generated.
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5.6 Audit Reviews
POLICY: VEDP’s purchasing process will be subject to audit and other
reviews, as directed by the following:
• VEDP Fiscal Office
• VEDP Board of Directors
• Auditor of Public Accounts
• State Attorney General’s Office
• Legislative Boards and Commissions
The basis for such reviews will be VEDP’s Purchasing Policies and
Procedures, as approved by the VEDP Board and as documented
herein. All audits or other such reviews will be coordinated by the
Procurement Office and the Controller.
PROCEDURES: The participation in such audits or reviews by other members of
VEDP management and staff, and the release of materials to support
those audits/reviews, must be coordinated and authorized by the
Controller.
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5.7 Freedom of Information Act
POLICY: Under the Freedom Of Information Act (FOIA), information relating
to the procurement of goods and services which are funded, in whole
or in part, by public moneys is available for inspection by the public.
The latter includes any citizen or interested person, firm, corporation,
research organization, or other public entity.
While VEDP will fully comply with valid FOIA requests, certain
information is exempt from disclosure. This typically includes
proprietary information, trade secrets, and the like submitted by
vendors as part of their bids/proposals.
PROCEDURES: If a request for information relating to any previous or ongoing
VEDP procurement is made under the FOIA or otherwise, the request
should be immediately referred to the Controller and VEDP’s
counsel.
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SECTION 6: OTHER CONSIDERATIONS
6.1 Preferred Vendors
POLICY: All VEDP procurements will provide qualified vendors reasonable
access to participate in the process, and no vendor will be arbitrarily
or capriciously excluded or discriminated against.
Notwithstanding the foregoing, public procurement policy in general
and VEDP’s policy in particular allows for reasonable preferences to
be included in the bid specifications and selection criteria which
favor:
• Small, women-owned, and minority businesses.
• Products or services produced in Virginia.
• Products which utilize recycled goods or “less toxic”
manufacturing methods.
Regarding the first preference, VEDP does not have a “set aside”
program for participation of small, women-owned, and minority-
owned business. However, VEDP’s Procurement Office encourages
participation of such businesses by obtaining lists of firms from the
Department of Minority Business Enterprise and other sources;
referring to the list as procurement needs are identified; and actively
soliciting the participation of such firms in applicable procurements.
PROCEDURES: Contact the Procurement Office for available and preferred vendors
for your particular procurement.
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6.2 Debarred Vendors
POLICY: An individual or firm may be debarred (not allowed to do business
with VEDP) for any of the following reasons:
• Breach (default) of contract.
• Stating an unwillingness or inability to honor a binding bid.
• Falsifying or misrepresenting their abilities relative to the
procurement specifications and bids in order to appear
responsive.
• Conferring or offering to confer upon any VEDP employee
participating in a procurement (which the entity has bid on or
intends to submit a bid) any gift, gratuity, favor, or advantage,
present or future.
• Any cause indicating the entity is not a responsible vendor.
• A determination by VEDP’s President and CEO that the entity
has used abusive language, threats, or other conduct deemed
unprofessional or inappropriate during the conduct of business.
• Conviction of any criminal offense, antitrust law violations, or
convictions indicating lack of moral or business integrity (in
which cases debarment may be for three years).
The President and CEO or designee will make the final determination
as to debarment, and will notify the Purchase Office, who will
maintain a list of such debarred vendors. Vendors debarred by other
State entities will also be considered debarred from doing business
with VEDP.
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6.3 Vendor Insurance, Performance Bonds, Bid Bonds
POLICY: Vendors providing services to VEDP are required to maintain the
insurance coverage noted below. VEDP may waive this requirement
on a case-by-case basis.
• Workers Compensation: Statutory requirements and benefits.
• Employer’s Liability: $100,000
• Commercial General Liability: $500,000 combined single unit,
with VEDP named as an additional insured with respect to the
services being provided. This coverage is to include
Premise/Operations liability, Products and Completed
Operations Coverage, Independent Contractor’s Liability,
Owner’s and Contractor’s Protective Liability, and Personal
Injury Liability.
• Automobile Liability: $500,000.
If a contract for goods or services is expected to exceed $50,000 in
total annual expenditures, the Controller must determine if a bid
and/or performance bond will be requested prior to issuing the
solicitation documents, and if such bonds will be maintained once
the bids/proposals are received.
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6.4 Vendor Performance Monitoring
POLICY: The procurement process does not end when the purchase order or
contract is issued. Monitoring vendor performance is a critical part
of the process, to ensure the proposed goods or services are delivered
in a timely manner, in accordance with the bid/proposal
specifications, and without substitution or partial completion (unless
previously approved).
A contract administrator may be assigned to monitor the contract.
This person may or may not be the individual who performed the
procurement function, but must keep that person informed of any
problems or potential problems regarding any contract or purchase
order so action may be taken before such problems become critical.
Regardless of expenditure level, if a vendor fails to deliver as
specified or fails to deliver in a timely manner, the vendor should be
notified immediately, and given a reasonable period of time to cure
the failure (“cure period”). This is usually five (5) days after the first
verbal notice, and an additional ten (10) days after written notice is
provided.
If the failure persists after a reasonable cure period is allowed
(usually 15 days), the Procurement Office must be notified so that
additional actions can be initiated as appropriate (see Section 6.5).
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6.5 Vendor Appeals, Disputes, and Remedies
POLICY: All actions taken to respond to a vendor appeal or dispute, or any
action initiated by VEDP to deny withdrawal of a binding bid or to
terminate a vendor contract for non-performance, must be
coordinated by VEDP’s Procurement Office, regardless of the goods
or services being procured, the expenditure level, or the procurement
method utilized. This is to help ensure that VEDP does not expose
itself to unwarranted liability or misperceptions regarding its
procurement policies and procedures.
VEDP will provide an “internal administrative appeals procedure”
for resolution of the dispute, but has not established any independent
administrative appeals process, such as binding arbitration.
If a vendor appeal has been filed (verbally or in writing), it should be
immediately forwarded to the Procurement Office. Similarly, if a
vendor has failed to perform in accordance with the contract
specifications and such failure has not been corrected after a
reasonable “cure period” (see Section 6.4), the Procurement Office
must be notified immediately.
In any case, the appeal/dispute process will be coordinated by the
Procurement Office, with final decisions being made by the President
and CEO or Designee.
PROCEDURES: 1. If a vendor appeal has been filed (verbally or in writing)
regarding its delivery of goods or services to VEDP or its
failure to receive an award of business (i.e., non-selection as a
result of a VEDP procurement process), it should be
immediately referred to the Procurement Office.
2. Similarly, if VEDP believes a vendor has attempted to withdraw
a binding quotation or failed to perform in accordance with the
procurement/contract specifications, and such failure has not
been corrected after a reasonable “cure period” (see Section
6.4), the Procurement Office should be notified immediately.
3. In either case (1 or 2 above), the appeal/dispute process will be
conducted by the Procurement Office, which will work with the
vendor to assemble and review all facts and circumstances, and
will present them to the Controller within 10 days after
notification is received/issued.
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4. The Controller will review the facts and circumstances as
presented, and will issue a written decision to the vendor within
10 days after receiving all facts.
5. If the vendor is not satisfied with the decision, they have 10
days to request a review by VEDP’s President and CEO. If the
President and CEO or Designee agrees to review the decision,
they must do so and issue their written decision to the vendor
within 10 days after receiving the request.
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6.6 Surplus/Unclaimed Property
POLICY: Property no longer needed by VEDP is to be considered surplus
property. The Controller will make such determination, and the
Facilities Manager will coordinate the transfer or disposal of such
items.
Nothing in this policy shall be construed to mean that VEDP, at its
sole discretion, may not amend its policies, or choose on a case by
case basis to dispose of surplus property as it deems necessary and in
the best interest of VEDP and the Commonwealth.
Section 6: OTHER CONSIDERATIONS 66
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