Procurement Policy & Guidelines

PROCUREMENT DEFINED

UAF maintains procurement practices under Arkansas Procurement Law.  Under Arkansas Procurement Law, the buying, purchasing, renting, leasing, or otherwise obtaining of any commodities or services is called Procurement, Ark. Code Ann § 19-11-203(20)(A).

ARKANSAS PROCUREMENT LAWS AND ETHICS

Procurement laws provide requisitioners, buyers, and other procurement officials an ethical and legal framework for purchasing and contracting on behalf of the public.  The primary collection of Arkansas Procurement Laws can be found in Title 19, Chapter 11, Subchapter 2 of the Arkansas Code Annotated titled “Arkansas Procurement Law.” With certain exceptions, Arkansas Procurement Law applies to every State agency expenditure of public funds under any contract.

If you need alternative (written) documents or forms, contact Business Services at 4help@uark.edu.

Constitutional Items

Items listed in Amendment 54 to the Constitution of the State of Arkansas are subject to special bidding requirements. The State's definition of printing is “the process of transferring images, by use of standard industrial type printer ink, upon paper documents such as letterhead, envelopes, pamphlets, booklets and forms." (wet ink on paper versus dry ink which is toner used by digital copiers). All commodities subject to Amendment 54 that are not available from Printing Services, the Departmental Supplies section of the Bookstore, State Contract or other State Agencies must be bid by Procurement or The Office of State Purchasing (OSP). Departments are not permitted to take their own bids on constitutional items regardless of dollar amount.

For the convenience of ordering, the Departmental Supplies section of the Bookstore stocks many State Contract items and can special order others from the state contract holder for office supplies.

Any Printing job over the $100,000.00 delegation limit must be bid by OSP.  Submit these bid requests to Procurement for submission to OSP.

Contact Ellen Ferguson for questions about setting up the printing bid process and bid specifications.

Automobile Purchases

The number of vehicles allowed in the University's vehicle fleet is closely controlled by the State Legislature. A fixed number of vehicle slots have been authorized for use. Any contemplated additions to the fleet must be reviewed and approved by the Fleet Manager and the Department of Finance and Administration (DFA).

Slot Allocations

The University has the opportunity once each biennium to request additional vehicle slots for consideration by the Arkansas General Assembly.

Submit your request and justifications prior to the beginning of the new biennium (received by: April-July 2016, April-July 2018, etc.) to ellenf@uark.edu.

The request and justifications for additional slots should reflect your needs through the two-year biennial period (2023-25, etc.).

Vehicle Purchases

The State contract for vehicles is typically valid from mid-September to March 15 of each year. You must submit your vehicle request during this period to assure delivery by the manufacturer. Please make your requests as early as possible.

NOTE: The manufacturers frequently notify of early production cut-off dates for certain makes and models. Contact the Fleet Manager at ellenf@uark.edu prior to submission of the vehicle request form to verify the availability of the vehicle if submitting a request late in the contract period.

Please submit the following form (and justification, if applicable) to ellenf@uark.edu.

Justification letters are required when:

  • Replacing vehicles that are less than five (5) years old and/or that have less than 75,000 miles. Very poor mechanical condition is the only justification allowed in this category; vehicles are considered to be in very poor condition when repairs equal at least one-half (1/2) of the vehicle's blue book value.
  • A department is not willing to replace a vehicle and instead requests an "addition to fleet." A justification letter should explain why an existing vehicle on your fleet cannot meet your department's transportation needs.
  • An upgrade is requested. A replacement is considered an upgrade when the vehicle type/specifications for the new vehicle being requested is different than the vehicle currently on the fleet that is being replaced, i.e., requesting a larger size vehicle, an extended cab, 4-wheel drive, etc. (if available on the contract). 

After justification letters are submitted to the Fleet Manager, they will be forwarded along to the DFA in Little Rock, who will approve or deny the request.

New Vehicle Delivery

Fleet vehicle orders are sent to the contract dealers. The contract dealers then place the orders with the automobile manufacturers. These vehicles are not built until the manufacturers have enough orders to have a line run in their factories. This is a lengthy process. On the average, it will take the University of Arkansas 4-6 months to receive a new vehicle after the initial request is received by Procurement.

Used Vehicle Turn-In

Vehicles being replaced must be turned in to the Surplus Warehouse on campus within thirty (30) days after delivery of new vehicle. The ordering department is responsible for the delivery of the old vehicle to Surplus Warehouse. Please be sure to clean vehicle interior prior to delivery.

After you receive your new vehicle from the dealership, you must complete the Vehicle Disposal Form and the On Location Request Form for your old vehicle, which is then to be emailed to the Surplus Warehouse Manager, goodson@uark.edu.

Vehicles ¾ ton or less will be sold by Marketing & Redistribution and the proceeds deposited into the State Motor Vehicle Revolving Fund. Vehicles one (1) ton or more will be sold by Marketing & Redistribution and the proceeds returned to the agency after deducting administrative fees.

Blanket Order Guidelines

Blanket Orders are to be issued for small repetitive non-contract purchases, for repeated deliveries of similar goods/services.  Blanket orders for small purchases are typically limited to $20,000 per fiscal year.  Blanket Orders can also be used for items exempt from procurement law, such as utilities, catering, etc. 

  • Blanket purchase orders are not, in general, appropriate in most situations.
  • Blanket orders are not to be used to purchase commodities or equipment which should be procured by competitive bidding.
  • Blanket orders are not to be issued for items which have been competitively bid.

There are numerous items available on state contracts, which in some cases may be mandatory for the University and, therefore, may not be purchased with Blanket orders. Items are added occasionally as the Office of State Procurement may determine a need for additional contracts.

Important:  Purchase of the following items are not permitted with Blanket orders as these are items under mandatory contract for all state agencies:  ammunition, bulk paper towels, bulk toilet tissue, paper, envelopes, tires, vehicles, etc.

If an individual purchases a contract item against a blanket order, it will be his/her personal obligation, as the University is unable to make payment to a vendor who does not hold the contract for that item.

Purchases of food and related items must be identified with a detailed purchase order line description and appropriate spend category. Each food purchase must be justified by attaching a completed Official Function Form.  

A conflict of interest is a situation in which a faculty or staff member may have the opportunity to influence University administrative, business, or academic decisions in ways that could lead to personal gain, give improper advantage to self or others, or interfere with objective preservation, generation, or public dissemination of knowledge.

Departments must ensure approval by Chancellor or designee of any documented COI.

Reference:

 

Items listed in Amendment 54 to the Constitution of the State of Arkansas are subject to special bidding requirements. The items listed are printing, stationery, paper and soy inks used to produce stationary, and other printed items (wet ink on paper versus dry ink which is toner used by digital copiers). See Office Supply Section for further information. All commodities subject to Amendment 54 that are not available from Printing Services, the Departmental Supplies section of the Bookstore, or State Contract must be bid by Procurement or the Office of State Purchasing. Departments are not permitted to take their own bids on constitutional items regardless of dollar amount. For the convenience of ordering departments, the Departmental Supplies section of the Bookstore stocks many State Contract items and can special order others from the state contract holder for office supplies.

Construction-related projects usually require coordination between a number of different areas of Facilities Management.  In addition to meeting statutory requirements for procurement, bonds, insurance, professional engineer/architect stamps, etc, there are impacts on building systems, code requirements, and other coordination requirements.

Pursuant to Ark. Code Ann. § 22-9-203, the State encourages all small and minority business enterprises to submit bids for capital improvements. Encouragement is also made to all general contractors that in the event they subcontract portions of their work, consideration be given to the identified groups.

Facilities Management’s roles and responsibilities are addressed in Section 700 of the Fayetteville Policies & Procedures Manual: https://vcfa.uark.edu/policies/fayetteville/index.php#search/700.

Any addition or renovation to a campus structure must comply with all of the applicable guidelines. The Planning website also contains several links which explain planning guidelines, furnishings standards, space guidelines, etc. http://planning.uark.edu/campus_planning/design_construction/index.html

A listing of current construction projects can be viewed at the following link:  https://fama.uark.edu/dcsa/projects.php.

For specific information and questions regarding construction projects, please contact Dan Clairmont, 575-6192 / danielc@uark.edu or Kelley Sharp, 575-5470 / kesharp@uark.edu.

Contract and Grant Disclosure Policy

Contract and Grant Disclosure Form

Executive Order 98-04 Proclamation

In accordance with Governor’s Executive Order 98-04, Contract and Grant Disclosure and Certification Forms are required for transactions over $25,000 (unless exempt from disclosure requirements) whereas disclosure forms must be obtained for the following conditions:

  • New Contracts
  • Contract Renewals
  • Contract Addenda (e.g., additional scope, price changes, etc.)

If information is needed prior to requisitioning any contract item, contact your Departmental Buyer/Procurement Coordinator. To locate the Departmental Buyer/Procurement Coordinator assigned to you, see the BU Assignments list.

See our website for Statewide and University term contracts. Additional commodities may be added to this list at any time.

For further information visit the Business Services Procurement Division web site.

Per Fayetteville Policy and Procedures 220.0, contracting authority for the Fayetteville campus is identified in a Delegations of Authority Summary Chart.

Copiers/Multifunction and Desktop Printer Equipment:

The procurement of all copiers, duplicators, and related equipment is managed by the Campus Managed Print program.  Request for such equipment should be directed to Print Mail Copy Solutions for an assessment to be completed by the vendor partner, and proposed equipment to be presented to the requestor for approval.  The CMP Staff will work with and through the vendor to get the recommended and approved equipment.  CMP will manage the service and toner supply request for the campus.  Once the proposed equipment is approved by the requesting department, CMP staff will create the requisition, pay the vendor, and charge back the users by usage at the rate of $0.02 for B&W and $0.20 for Color copies/prints.  This cost will cover the equipment, the usage, service, and toner/supplies and staffing to manage the vendor and program for the campus.  Staple replacement cartridges will be billed as ordered by the CMP staff.

 

The acquisition of commodities or services which, if not immediately initiated, will endanger human life, health, University property, or functional capability of the University. All emergency purchases over the bid limit shall be approved in advance whenever possible by the Procurement Division.

Where time or circumstances do not permit prior approval, approval must be obtained at the earliest practical date.

Request for approval shall be made in writing and shall include:

  1. Requisition
  2. Quotation Abstract
  3. Written explanation of how emergency was determined (give specific reasons why the procurement is an emergency)

If over the bid limit, a minimum of three (3) competitive bids, whenever possible, must be obtained on authorized Bid Quote Request Form unless the emergency is critical. If three (3) competitive bids are not obtained, the Bid Quote Tab Sheet must show the names of at least three (3) firms contacted in attempting to obtain competition.

 

Any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee's duties is a breach of public trust. It is a breach of ethical standards for any employee to participate directly or indirectly in any matter pertaining to any contract, subcontract, or purchase order in which the employee or any member of his/her immediate family has a financial interest. Direct or indirect participation includes involvement through decision, approval, disapproval, recommendation, preparation of any part of a procurement request (requisition or request for bid), influencing the content of any specification, rendering of advice, investigation, auditing, or in any other advisory capacity.

Immediate family is defined as spouse, children, parents, brothers, sisters, and grandparents; and accept a gratuity or offer of employment in connection with any decision, approval, recommendation, preparation of a purchase request, or other particular matter, pertaining to any contract, solicitation, or proposal. Gratuity is defined as a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value. Any employee who obtains any benefit from any State contract with a business in which the employee has a financial interest shall report such benefit to the Director of the Department of Finance and Administration.

It is a breach of ethical standards for any former employee to engage in selling or attempting to sell commodities or services to the University or any other state agency for one year following the date employment ceased. Any employee or non-employee who shall knowingly violate any of the ethical standards described shall be guilty of a felony and upon conviction thereof shall be fined in a sum not to exceed ten thousand dollars ($10,000), or shall be imprisoned in the penitentiary not less than one (1) or more than five (5) years, or shall be punished by both.

 

Except as the Federal Transit Administration (FTA or We) determines otherwise in writing, before FTA may award Federal transit assistance (funding or funds) to support a public transportation Project, an Authorized Representative (You) of the Project sponsor (Applicant) must select certain Certifications and Assurances required by Federal law or regulation. The Authorized Representative must be duly authorized by the Applicant to, among other things, sign these Certifications and Assurances and bind the Applicant’s compliance.

You, as the Authorized Representative, must select all Certifications and Assurances required of your Applicant (or it) to support its applications for FTA funding during  the Federal fiscal year (FY).

We request that you read the Certifications and Assurances, as well as the Federally Required and Other Model Clauses, and select those that will apply to all Projects for which your Applicant might seek FTA funding. As required by Federal law and regulation, only if you select adequate Certifications and Assurances or Federally Required and Other Model Clauses on your Applicant’s behalf, may FTA award Federal funding for its Project.

Any activity involving international financial transactions is subject to export control regulations.

To engage in a purchase from a foreign source, spend transactions such as Requisition (RQ), Supplier Contract (SPC), Supplier Invoice Request (SINVR), and PCard Purchases, must be screened by the Export Control Office for compliance.

NOTE:  By submitting a spend transaction in Workday with a foreign supplier, you certify that you have read the institutions policies and guidelines regarding Export Compliance and Contracts with Foreign Sources, and you believe that the transaction/contract is not prohibited on any of the bases as outlined.

Screening and Spend Transaction Process (required per spend transaction):

  • Supplier must complete Export-Form-001 (Product Classification Certification)
  • After receiving Export Form 001 from the supplier, the requester/department must complete Export-Form-002 (Export Control Purchase Intake Form)
  • Upload both forms to your spend transaction in Workday along with other associated or required purchase documents.
  • Include in Workday the full name and address of organization/individual as well as detailed description of the service and/or item being processed. (This information will be used to run a Restricted Party Screening. The results will be uploaded once the research is completed.)
  • Once the transaction is submitted, it routes to the Export Control Officer (ECO).
  • The ECO will review the transaction and perform the required foreign screening, attach the screening results to the transaction, and approve.  
  • If determined by the ECO that the foreign supplier cannot be used, the ECO will deny the transaction and the requestor/department will need to seek an alternate source.
  • For PCards, a copy of the screening results must be attached to the verification.

Export Control Managing Resources: 

Procurement Managing Resources: 

If supplier terms and conditions do apply  to the transaction:

  • Legal Review Form (LRF) required – must be signed.
  • If processing RQ, SINVR, or PCard:
    • Send all associated documents to General Counsel gckrev@uark.edu for review.
    • Upon legal response, ensure all associated and required attachments are uploaded to your transaction or PCard verification and submit through Workday (i.e., Screening Results, LRF, other associated documents).
  • If processing SPC:
    • This is the only type of transaction that automatically flows through General Counsel.
    • Ensure all associated and required attachments are uploaded to your transaction and submit through Workday (i.e., Screening Results, LRF, other associated documents).

If supplier terms and conditions do not apply  to the transaction: 

  • The LRF is not required. Ensure all other associated attachments are uploaded to your transaction and submit through Workday.

Legal Basis for Contracts with Foreign Sources:

Pursuant to Ark. Code Ann. § 6-60-1204(a), the University shall not accept a gift from a foreign source or enter into a contract with a foreign source if the institution believes that doing so would threaten:

(1) The integrity of the institution's research, instruction, or operations;

(2) The institution's intellectual property rights;

(3) The protection of confidential information; or

(4) The safety and security of:

(A) The institution;

(B) The institution's personnel and students;

(C) This state; or

(D) The United States.

Ark Code Ann. § 6-60-1202(3) defines “foreign source” as:

(A) A foreign government, including without limitation an agency of a foreign government;

(B) A legal entity, government or otherwise, created solely under the laws of a foreign state or states;

(C) An individual who is not a citizen or a national of the United States or a trust territory or a protectorate of a trust territory; or

(D)An agent, including without limitation a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source, as described in (A), (B), or (C).

In addition, Ark. Code Ann. § 6-60-1203 provides that an institution shall not host:

(1) A Confucius Institute; or

(2) Any entity with an affiliation with:

(A) The People's Republic of China;

(B) The Chinese Communist Party; or

(C) China's People's Liberation

Further, if the value of the contract, or the aggregate value of other contracts affiliated with the same foreign government, is valued at $250,000 or more, the contract(s) will be subject to the annual state disclosure reporting required under Ark Code Ann. § 6-60-1205 and under similar biannual federal disclosure reporting under § 117 of the Higher Education Act.

Pursuant to U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) ITAR 22 CFR120-130, U.S. Department of Commerce’s Bureau of Industry & Security (BIS) EAR 15 CFR 730-774, and U.S. Department of Treasury’s Office of Foreign Assets Controls (OFAC) 31 CFR §§500-599.

Other U.S. government agencies may have additional oversight over movement of specific items such as: the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS), the U.S. Environmental Protection Agency in relation to the Toxic Substances Control Act (TSCA) and the Nuclear Regulatory Commission for nuclear equipment and materials 10 CFR 110, 10 CFR 110.31, 10 CFR 110.8 and 110.9.

Anti-Boycott laws Part 760 of the Export Administration Regulations, 15 CFR parts 730-774 (EAR) and the Foreign Corrupt Practices Act (FCPA) 15 U.S.C. §§ 78dd-1 and 15 U.S.C. § 78m also apply to international activities.

Expenditures of this type fall under Board Policy 260.1 for “Official Functions” designations and associated expenditures. The Procurement policy is to allow such expenditures under this Board of Trustees policy using the following procedures:

1) PCards should be used for purchase of Gift Cards or Prizes.  You MUST complete the PCard Gift Card Request Form or Prize Request Form and follow instructions provided on the PCard Guidelines page.

2) DO NOT USE Purchase Orders, Blanket Orders, Expense Reports (personal reimbursements), or Supplier Invoice Requests (SINVR) for these types of purchases.

3) Cash Prizes (outside of Gift Cards) are not recommended or preferred.

Expenditures for official functions (gift cards/awards/prizes) are not the same as gifts. Gifts to individuals are not allowed by the Procurement Department, with the exception of “Promotional Items” as stated in OSP Promotional Items Policy, and gifts in lieu of payment for speaking engagements. Gifts for employees are not allowed.

As per the State Procurement memorandum, the following are items that are not prohibited from procurement with appropriated funds:

  1. Plaques for student achievements.
  2. Plaques for board or commission members upon termination of service on a board or commission.
  3. Promotional items specifically authorized by language in a state or federal grant.
  4. Items purchased, the cost of which is reimbursed by students. 

1099 Responsibility:  Departments are required to submit completed and signed Gift or Prize Disbursement Forms to the Tax Compliance Office in Financial Affairs.

Purchase of greeting cards is not allowed per Board Policy 260.1.

A true honorarium is considered a complimentary payment made to an individual in lieu of a service fee, for services which are not charged by the servicer (non-employee), and which traditionally do not require a Purchase Order. Honorarium payments typically do not exceed $1,000.

In these cases, departments have the following options for processing:

Supplier Invoice Request (SINVR) method in Workday as a direct payment to the servicer (as an honorarium is not considered a typical service contract/transaction with pre-arranged payment/agreement, which would require a procurement method and therefore require the requisition/PO process).  Be sure to attach the completed Honorarium Form to the SINVR for appropriate processing.

Requisition method is not required for true honorariums, however if the department chooses to process an honorarium through a Requisition/PO then it should be set up as a Check With Order or Hold And Call requisition type.  Be sure to attach the completed Honorarium Form to the Requisition for appropriate processing.

Honorarium is NOT a negotiated or charged fee, nor a written agreement or contract.  In those cases you may need to proceed with an Appearance Agreement.

Independent Contractor or Employee?

The IRS has focused on this issue and given high priority to the classification of employment relationships. The penalties for misclassification can result in the university being held responsible for under-payment of taxes including federal and state income tax, Social Security and Medicare taxes, and federal unemployment taxes. Whether inadvertent or intentional, misclassification of workers as independent contractors may result in charges to the department for the taxes, penalties, and interest. 

IRS regulations require organizations to review the relationships that exist and make the determination on a case-by-case basis.  If the relationship is that of an employee, the employer must withhold income taxes, as well as withhold and pay social security and Medicare taxes.  Another related obligation of the employer is the requirement of paying unemployment taxes on the wages that have been paid to an employee. If the relationship is one in which the potential vendor is an Independent contractor, the requirement to withhold and pay taxes based on the service or product payment does not exist, and the independent contractor is responsible for paying all of their obligated taxes.  It is important to note that even if the individual has their own company and wants payment made to their company, the relationship may still be one that meets the definition of an employee in which the payment must be processed to the individual through the payroll process.

Determine the Relationship

In determining the relationship, there are three categories of “facts that provide evidence of the degree of control and independence” that exist in the relationship.  The categories (and their descriptions from the IRS website) are:

  1. Behavioral Control covers facts that show if the business has a right to direct and control what work is accomplished and how the work is done, through instructions, training, or other means.
  2. Financial Control covers facts that show if the business has a right to direct or control the financial and business aspects of the worker's job. This includes:
  • The extent to which the worker has unreimbursed business expenses
  • The extent of the worker's investment in the facilities or tools used in performing services
  • The extent to which the worker makes his or her services available to the relevant market
  • How the business pays the worker, and
  • The extent to which the worker can realize a profit or incur a loss

       3. Relationship of the Parties covers facts that show the type of relationship the parties had. This includes:

  • Written contracts describing the relationship the parties intended to create
  • Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay
  • The permanency of the relationship, and
  • The extent to which services performed by the worker are a key aspect of the regular business of the company

Additional Considerations

The state of Arkansas restricts former employees who receive payments that exceed “fifteen thousand dollars ($15,000) to engage in selling or attempting to sell commodities or services, including technical or professional consultant services, to the state for one (1) year following the date employment ceased.” As a result, such individuals must be paid as an employee through payroll even if they otherwise meet the definition of independent contractor.

Contact Human Resources for review and proper designation before the individual is scheduled to do any work.  If you have questions or need additional assistance with issues related to determining independent contractor versus employee status, please contact Human Resources.

Additional References:

Fayetteville Policy and Procedure 312.0

Fayetteville Policy and Procedure 404.0

Internal Orders with Internal Service Providers can be initiated in Workday by "Create Internal Service Delivery."  Examples of Internal Service Providers:  Mailing Services, Printing Services, Facilities Management, IT Services / Tech Store (Computer Store), etc.  

A new Governmental Accounting Standard (GASB 87) regarding leases is set to take effect for fiscal year 2021.  Be aware additional analysis or data collection on leases may be needed on any leases that extend into fiscal year 2021.

Send your LEASE questions to Financial Affairs early in the process of establishing lease contracts.  Include your Procurement Coordinator early in the process to help facilitate the purchasing piece.

What is a Lease?

Under GASB 87 a lease is defined as a “contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.” 

Lease Contract Classification

  1. Short-term leases (max term of 12 months or less, or month-to-month)
  2. Contracts that transfer ownership
  3. All other leases

The terminology of “operating” and “capital” leases will be eliminated.

Lease Contract Examples

A lease contract may include financial or non-financial assets, amortization schedules, multiple payments/installments, etc.  Applicable examples of lease contracts are:

  • Commodities (e.g. computers)
  • Copier Leases
  • Equipment
  • Real Property
  • Tangible or Intangible
  • Financing Agreements/Commitments
  • Rental of Storage/Space
  • Motor Vehicles

How does this impact campus?

All rentals, leases and lease/purchase contracts or renewal of any such contract for commodities require prior review by Financial Affairs for accounting compliance regarding lease recognition, measurement and related disclosures.  Send your LEASE questions to Financial Affairs early in the process of establishing lease contracts.  Include your Procurement Coordinator early in the process to help facilitate the purchasing piece.

All rentals, leases and lease/purchase contracts or renewal of any such contract for commodities require prior approval. Written agreements should be submitted by "Create Supplier Contract" in Workday for review by Financial Affairs, Legal, and Procurement. 

Meeting temporary needs is one of the prime reasons for renting without including an option to purchase. All contracts for rental or lease of a commodity which exceed a cost of twenty thousand dollars ($20,000) during the initial period of the contract, and all contracts for the lease of a commodity which do not exceed twenty thousand dollars ($20,000) during the initial period of the contract but contain an option to purchase a commodity costing more than twenty thousand dollars ($20,000) must be awarded on the basis of competitive bids with the following exceptions: Postage meter leases.

Motor vehicle leases for thirty (30) days or more may be procured by use of competitive bid procedures. However, all motor vehicle leases must be approved by the Office of State Procurement Director.

Most lease/rental of real estate (land, building, warehouses, parking lots, towers, etc.) requires the coordination and approval by Arkansas Division of Building Authority (DBA). University needs should be identified and requested through Risk and Property Management.

Risk and Property Management will submit requests for new leases to DBA. Such requests should be submitted ninety (90) days prior to the date the property is needed. DBA will review the request, locate or confirm appropriate property, and act as leasing agent for the University in negotiating the lease/rental of such property. Renewals on Lease/Rental Agreements are also coordinated by DBA through Risk and Property Management.

 

The University is under no obligation to pay for licenses and certifications required to hold a position of employment. However, the University may elect to pay certain licensing and/or certification fees when there is a justified need that provides a benefit to the University. An example of such a need that benefits the University is in the case of the need to fill a position for which no qualified applicants are available who already possess the required licenser, or when labor market conditions are such that it is difficult to recruit and retain employees with the required certification. Human Resources may be asked to assist in verifying the necessity of such payments for specific positions based on past experiences in recruiting and/or turnover rates.

To initiate payment of licenses or certifications that meet the test of:

  1. Being required to perform the duties needed by the University, or
  2. Necessary to recruit and/or retain employee(s) in a position required by the University,

The department should submit an electronic Requisition and this justification form clearly describing the need and the circumstances of the request to the Procurement office.

When bidding air conditioners, heat pumps, and refrigerator/freezers, life cycle cost formulas provided by the Office of State Purchasing must be used in evaluating bids. Additional commodities may be added to this list at any time.

 

Equipment for Inventory purposes is defined by the state as “tangible property with a unit cost of $2,500.00 or more and a normal usage life of two (2) years or more, except land or buildings.”

Regardless of dollar value, property may not be traded, sold, salvaged, destroyed, transferred to other state agencies or cannibalized until the Surplus Manager and Marketing and Redistribution have given prior approval. A written request must be submitted to the Surplus Manager for each item to be traded, sold, salvaged, destroyed, transferred to other state agencies or cannibalized. Include the manufacturer, model, description, serial number, and University of Arkansas Tag Number (if one exists).

In instances where items have become surplus to a department: the departmental contact must enter each inventory or non-inventory item into the BASIS - AIMS via the Surplus process. Once the surplus batch has been approved, a “Request for Disposal of Surplus Property” report and surplus-inventory bar code labels will be sent via campus mail to the departmental contact. The surplus-inventory bar code labels should be affixed to the front of the appropriate item.

The Surplus Manager, in coordination with the departmental contact, will schedule a time for pick up of the items. When items are picked up, the departmental contact must sign a copy of the report verifying what items were picked up. The items are transported back to the surplus warehouse. After items have been received and moved to the Surplus Warehouse, the budgetary unit for all capital items will be changed from the department's BU to the surplus warehouse's BU.

These items will no longer be the responsibility of the surplusing department. Items received at the Surplus Warehouse are either held for recycling back on campus, sold by sealed bid, scrapped, or sold through public auctions.

Motor Vehicles eligible to be registered for highway use, whether registered or not, may be cannibalized after obtaining authorization. These vehicles will not be removed from your inventory listing until the carcass of the vehicle has been disposed of by M&R. In no event shall more than ninety days elapse between authorization of cannibalization and processing the carcass for disposal by Marketing and Redistribution.

Membership Policy

Completed Membership Justification Form must accompany your transaction.

MINORITY AND WOMEN-OWNED BUSINESSES

What constitutes minority or women-owned business:

As defined by Arkansas Code Annotated § 15-4-303, a business that is at least fifty-one percent (51%) owned by one (1) or more minority persons or women who are lawful permanent residents of the State of Arkansas:

  • African American
  • Hispanic American
  • American Indian
  • Pacific Islander American
  • Asian American
  • A Service-Disabled Veteran as designated by the United States Department of Veterans Affairs 
  • Women

Review the Minority and Women-Owned Business Resources page which provides information and assistance to minority and women-owned businesses and how to do business with the University of Arkansas (UA) and the state.

It is the policy of the State of Arkansas to support equal opportunity as well as economic development in every sector. In accordance with the Minority and Women-Owned Business Economic Development Act, UA shall support to the fullest all possible participation of companies owned and controlled by minority persons and women in state-funded and state-directed public construction programs and in the purchase of goods and services to meet an annual goal of fifteen percent (15%) of the total expended:

  • Ten percent (10%) for minority business enterprises with two percent (2%) allocated for service-disabled veteran-owned minority business enterprises; and eight percent (8%) for all other minority business enterprises; and
  • Five percent (5%) for women-owned business enterprises

Pursuant to Ark. Code Ann. § 19-11-229, 19-11-230 and 22-9-203 the State of Arkansas encourages all small, minority, and women owned business enterprises to submit competitive sealed bids and proposals for University projects, including capital improvement projects. Encouragement is also made to all general contractors that in the event they subcontract portions of their work, consideration is given to the identified groups.

Search the Arkansas Economic Development Commission (AEDC) Minority and Women-Owned Business Directory  to research businesses by name, description, etc. and to help facilitate your bid requests (including competitive quote bids).

NOTE: Purchases of up to $40,000 can be made without competitive solicitation if using an AEDC certified minority business or AEDC certified women-owned business enterprise.

AEDC Business Certification Process

The AEDC conducts a certification process for minority-owned and women-owned businesses. If certified, the Prospective Contractor’s Certification Number should be included with quotes or on the bid signature page. 

The AEDC encourages the employment of small business and minority business enterprise pursuant to the provisions of Part 19 of the Federal Acquisition Regulations. 

 

Moving/Relocation:

  • Tax Law Changes for Moving Expenses
    • The newly enacted tax law prevents a tax-free reimbursement of moving expenses beginning January 1, 2018.  
  • Moving Expenses
  • Moving Guidelines
  

The UA has entered into an agreement with Staples that includes highly competitive discounts on commonly purchased office supplies and value added services such as direct delivery to campus, marketing research, flexible shopping options and specialized account representation. 

Shipments:

  • Staples carrier services deliver all shipments direct to the campus building/office. 
  • Deliveries will no longer go through the University Bookstore.
  • Frequency of deliveries will occur 1 – 2 times per day.
  • Orders placed will be delivered next business day for most all items.

 Contract:

  • UA utilizes the competitively solicited Staples contract under E&I Cooperative Services for higher education.
  • Staples offers other items besides office supplies that include furniture, technology products, breakroom supplies and print products.
  • Purchases should be made via p-card or UA punch-out to obtain the ultimate discounts.
  • Always consider Staples family of brands for lower pricing options before choosing brand names:

TRU RED™
From pens engineered to perfectly fit your hand to shredders so quiet you’ll barely hear them work, TRU RED delivers business essentials designed thoughtfully to work beautifully.

NXT Technologies™
NXT Technologies offers office essentials such as 12-outlet surge protectors, no-hassle wireless chargers, crackle-free speakerphones, and more.

Perk™
Perk up your workplace with plates, cutlery, TP, sanitizer, and cleaning supplies.

 Account Management:

  • Staples has a team dedicated to the UA campus and are available any time for questions on orders, shipping/receiving, pricing and general questions. The Staples account team works closely with UA Procurement on a regular basis providing information, feedback and holding business reviews periodically.
  • Staples may poll campus departments occasionally to seek on-going improvements and ensure best user experience.
  • Staples oversees the delivery services courier to ensure quality delivery services are provided to the UA community.
  • UA works closely with E&I account management ensuring the E&I Staples contract offerings are available and utilized to the fullest extent.

All paper products not on a state contract and not considered an Amendment 54 item greater than $20,000 will be bid. Paper products that are considered to be “Constitutional Items” are subject to even stricter bidding requirements. The University is required by law to give preference to recycled paper whenever purchasing paper products of any kind and to report paper purchases to the Office of State Procurement on a monthly basis.

 

Except for Student and/or Official University functions, University/Public funds are not to be used to procure items which are primarily for the personal convenience, use, benefit, or remembrance of employees. Example of non-allowable items include, but are not limited to:

  • Candy
  • Coffee makers and supplies
  • Coffee service
  • Cooking appliances
  • Microwaves
  • Flowers (except for official University functions)
  • Refrigerator Units
  • Supplies and food for office parties

 

Personal Reimbursements (Non-Travel Expense Report) are not best practice nor recommended.  Only emergency situations or unique circumstances warrant the use of personal funds for University business.  To attain compliance with procurement procedures, it is essential that there exists a high degree of cooperation between end-user departments and Procurement.

Under state law 19-4-1206, prepayments should not be made with state appropriated funds for goods or services prior to receipt of the goods or performance of the service.

Constitutional Items

Items listed in Amendment 54 to the Constitution of the State of Arkansas are subject to special bidding requirements. The State's definition of printing is “the process of transferring images, by use of standard industrial type printer ink, upon paper documents such as letterhead, envelopes, pamphlets, booklets and forms." (wet ink on paper versus dry ink which is toner used by digital copiers).  All commodities subject to Amendment 54 that are not available from Printing Services, the Departmental Supplies section of the Bookstore,  State Contract, or by another state entity must be bid by Procurement or the Office of State Procurement.

Departments are not permitted to take their own bids on constitutional items regardless of dollar amount. For the convenience of ordering departments, the Departmental Supplies section of the Bookstore stocks many State Contract items and can special order others from the state contract holder for office supplies.

State agencies that are available to complete printing requests include Arkansas State University, University of Arkansas for Medical Sciences, University of Arkansas Little Rock, and the University of Arkansas Cooperative Extension Service.

Contact Ellen Ferguson for questions about setting up the printing bid process and bid specifications.

As an entity of the State, the University follows the State procurement policy regarding Protests and Protest Resolutions.

Purchase Orders create a binding contractual obligation on the University. Cancellation is therefore often limited to cases of default by the vendor or by mutual agreement of the contracting parties. Some reasons that may allow cancellation of a purchase order are:

  • Requested by UA department and supplier concurs.
  • Requested by supplier and UA department concurs.
  • Duplicate of a previous order.
  • Supplier unable to supply.
  • Non-delivery by Supplier.
  • Supplier failure to meet specifications or conditions.
  • Order issued in error.
  • Funds unavailable.
  • No longer needed. 

All types of purchases from University Company Cost Centers, regardless of source of funds, are subject to regulations and procedures as stipulated in Arkansas statutes. Procurement Services is the sole purchasing authority for the University. Only purchases authorized by this authority are legal obligations of the University.

Procurement Services has delegated limited purchasing authority to the University Libraries for purchasing library books, periodicals, on-line subscription services and similar materials for lending and reference purposes. For these purchases, orders may be issued directly from the Library to the Supplier. All other purchases are to be processed through Procurement Services.

Departments are encouraged to contact the Bookstore for options.  An existing agreement allows for rental or sale of graduation caps, gowns, invitations, class rings, etc.

Graduation caps, gowns, hoods, invitations, and gifts are available in store, or via https://www.cbgrad.com.

For class rings students can go to the website https://www.balfour.com/uark to make a purchase.

Use of public funds for food, supplies and decorations for an official retirement reception (onsite and open to guests, i.e. public officials, donors, students, etc.) is acceptable, but not acceptable for an internal department event.  A plaque or similar item of approximately $100.00 or less is an acceptable gift.  PCard is acceptable (with clear documentation) for all of these items.  Anything more should be funded through foundation funds or your personal contributions.

 

Guidelines for Purchasing Technology Products

University faculty and staff should contact the Tech Store for University technology needs for Apple, Dell and other computer accessories. For University approved software and other available University IT services, please visit the ITS website.

A variety of software and licensing options are available to the University of Arkansas campus. A detailed listing of the types of software, licensing and availability is located on the IT Services Get Software webpage. For specific IT related services including, web conferencing, storage, email and phone services, please refer to the IT Services webpage.  Unique software needs not listed are subject to the $20,000 bid limit.

For additional questions contact the IT Help Portal.

 

Sole Source purchases can be made only after the ordering department submits a requisition with a completed Sole Source Request Form. Additionally, a signed statement from the vendor (on letterhead) verifying their unique or proprietary specification information should be attached to the requisition for Item Number 3 below. The Business Services Procurement office will review for approval of such purchase.

Sole source purchases can be justified in one of three ways, but not limited to:

  1. Purchase of repairs involving hidden damage.
  2. Purchase requiring performance compatibility with existing commodities and/or services.
  3. Purchase based on performance specifications.

Contact 4-help or your Procurement Coordinator for additional information.

 

Only those individuals who are knowledgeable about procedures for handling shortage and damage claims should have authority to receive freight shipments. It is very important that the individual receiving freight attempt to determine if damage has occurred prior to signing for receipt of the shipment. Undetected or concealed damage may result in the department having to assume partial responsibility for replacement cost. For this reason, it is important to note any carton or crate damage on the receipt/bill. When receiving freight the following items should be verified: 1) Ship To Address, 2) Purchase Order Number, 3) Condition of Shipment

Noting and Reporting Freight Damage: If damage is apparent, the freight receipt/bill should be so noted by the receiving party prior to signing the receipt/bill. Any dents, scratches, punctures, or damage of any nature to carton or crating should be noted on the receipt copy and consignee copies of the freight bill. Any shortages should be noted on the freight bill prior to signing for receipt. Concealed damage claims must be filed within fifteen (15) days of receipt of shipment.

NOTE: DO NOT DESTROY CARTONS OR OTHER MATERIALS USED IN PACKING. As soon as damage is discovered, a Department should immediately call the delivering carrier and request inspection. When the agent of the carrier comes, he must see the packing and merchandise. The agent must complete a concealed damage report and provide a copy to the department.

All sponsorships, regardless of the amount, must be reviewed/approved by University Advancement.  Submit requests for event sponsorships to The Office of Donor Engagement (engage@uark.edu).

Please attach a copy of the Donor Engagement approval to your transaction in Workday for procurement approval.

If information is needed prior to requisitioning any contract item, contact your Departmental Buyer/Procurement Coordinator. To locate the Departmental Buyer/Procurement Coordinator assigned to you, see the BU Assignments list. 

See our website for statewide and University term contracts.  Additional commodities may be added to this list at any time. These items must (if mandated) be purchased from the contract source or through a University source such as University IT Services.

For further information visit the Business Services Procurement Division web site.

Stipend is a predetermined amount for payment of duties performed by non-UAF affiliated individuals who are ineligible to receive regular payroll/salary and does not traditionally require a PO.

Stipends can be processed through the Supplier Invoice Request (SINVR) method in Workday.  Be sure to attach the completed Stipend Form to the SINVR for appropriate processing.

For grant funded stipends, be sure to communicate with your Procurement Coordinator the details/requirements of the grant and include associated information with your SINVR.

Supplier Invoice Request Policy

The Supplier Invoice Request (SINVR) Policy is adopted to both promote operational efficiency and mitigate institutional risk.  Compliance with this Policy is required. To attain compliance with procurement procedures it is essential that there exists a high degree of cooperation between end-user departments and Procurement Services.

Supplier Invoice Request (SINVR) is a stand-alone business process in Workday and not tied to purchase orders, contracts, reporting or budget planning. The use of the SINVR feature in Workday replaces what was previously known as Invoice Attached and UPAY. The SINVR process is the exception, not the rule, and should be limited to only those transactions as allowed or where there is no other means of purchasing available.

The University is committed to sustainability in procurement by conducting business with integrity and a strong core value of being a good steward of the environment to ensure a better quality of life, both now and for generations to come. We will purchase equipment and supplies that are energy efficient and environmentally friendly whenever they are available and practicable.

 

The Vendor expressly acknowledges that state funds may not be expended in connection with the purchase of information technology unless that system meets certain statutory requirements, in accordance with State of Arkansas technology policy standards relating to accessibility by persons with visual impairments.  Refer to FPP 204.2 - Electronic and Information Technology and Accessibility.

Accordingly, the Vendor represents and warrants to University of Arkansas, Fayetteville that the technology provided to University of Arkansas for purchase is capable, either by virtue of features included within the technology or because it is readily adaptable by use with other technology, of:

  1. providing equivalent access for effective use by both visual and non-visual means;
  2. presenting information, including prompts used for interactive communications, in formats intended for non-visual use; and
  3. being integrated into networks for obtaining, retrieving, and disseminating information used by individuals who are not blind or visually impaired.

For purpose of this paragraph, the phrase “equivalent access” means a substantially similar ability to communicate with or make use of the technology, either directly by features incorporated within the technology or by other reasonable means such as assisting devices or services which would constitute reasonable accommodations under the American with Disabilities Act or similar state or federal laws.

Examples of methods by which equivalent access may be provided include, but are not limited to, keyboard alternatives to mouse commands and other means of navigating graphical displays, and customizable display appearance.

If requested, the Vendor must provide a detailed plan for making this purchase accessible and/or a validation of concept demonstration.

Guidelines for Purchasing Technology Products

University faculty and staff should contact the Tech Store for University technology needs for Apple, Dell and other computer accessories. For University approved software and other available University IT services, please visit the ITS website. 

  • IT Asset Management
    • Central receiving, tagging and distribution is required on IT assets through the IT Asset Management Office.
  • PCI Compliance
    • Any department processing payment card transactions via a web site or Point of Sale (POS) machine is affected by the Payment Card Industry Data Security Standard (PCI DSS). This includes purchase of iPads, computers, terminals, networking equipment, and software as a service that may take its own payments for goods or services provided. Additional information about PCI Compliance and policies can be found at the Financial Affairs Technology Group Credit Card Operations website.
  • University Web Sites and Online Communication
    • All official, non-personal university web sites must comply with graphic and web standards maintained and enforced by the Office of University Relations (UREL), and the creation of such web sites must be done in collaboration with UREL.  Any technology procured in regards to any resulting web site must be reviewed/approved by UREL for adherence to state and federal guidelines regarding accessibility.  For questions contact Chris Nixon, Director of Digital Design and Development (UREL).

 See Standard Terms & Conditions for Purchase Orders.

The University of Arkansas Bookstore has partnered with Barnes and Noble College (BNC) to provide a flexible and advantageous consumer experience.  The Bookstore is the exclusive official provider for textbooks (digital, rental, new, used), course materials, and class supplies.  BNC offers online services through the Bookstore website and a price matching program should students, faculty or staff find comparable materials elsewhere. Faculty are highly encouraged to use BNC for teaching supplies and supplying class materials to students. 

For questions regarding ordering, textbook and course material adoptions, price matching or other services please contact the Bookstore General Manager:

Mo Leghari | General Manager

University of Arkansas Bookstore

P: 479/575-2155

E: SM8346@bncollege.com

616 Garland Ave, Fayetteville, AR, 72701  

 

Items not needed or being replaced can be listed as a trade-in on the bid request or requisition submitted for purchase of new equipment. The manufacturer, model, serial number, University of Arkansas property number, date of purchase, price paid, statement of present condition and location must be provided for the trade-in unit.

Since all equipment trade-ins must be approved by Marketing and Redistribution (M&R) in Little Rock, bids will be issued with the stipulation that the trade-in offered may or may not be accepted. Departments should contact the Surplus Warehouse for special training and assistance when needed.

The following Federally Required and Other Model Clauses are listed for your information as they may relate to Projects or Purchases using Federal Funds or other funding sources. Unless determined otherwise, You, as the Authorized Representative of the submitting company or firm, must select all Required and Model Clauses relevant to the project under discussion and required of your Applicant (or it) and support and complete the requirements before funding for the Project may proceed.

When using Federal Funds under Uniform Guidance, bid limits are $20,000 for all state institutions of Higher Educatoin (both two year and four year colleges) in accordance with sectoin 19-11-204(13) of the Arkansas state code, and the OMB Memorandum M-18-18. If any Federal Funds are being used to pay for an order that exceeds $20,000 the order must be processed as a quote bid and orders exceeding $75,000 must be processed as a formal sealed bid.

Orders exceeding $25,000 containing elements of service may be subject to Arkansas Legislative Council (ALC) review.

For more information regarding Uniform Guidance, please see the Research and Innovation Administrative Resources site.

State procurement law does not exempt purchases of used equipment from bidding requirements. Used equipment must normally be bid in the same manner as new. Contact the Procurement Coordinator for your department regarding instructions for used equipment transactions.

 

Wireless Data Access

The University may pay installation, initial data network equipment, and monthly service costs for remote data access off-campus for employees under certain conditions.

  • Refer to FPP 313.1 - Internet Access.
  • To initiate payment for off-campus data access under this policy a department should submit a Requisition or Expense Report (employee reimbursement) in Workday along with a justification that clearly describes the need and circumstances of the request.
  • The Wireless Remote Data Access Form is the required justification form for purpose of this policy.