Purchasing and Business Services Manual (PUR)

Interim Posting

Note: At the request of the provost, a vice provost, or a vice president, this policy has been posted in the interim between scheduled posting dates by University Policy Manuals Group because it has significant and urgent importance for the university community. This policy will be included in the publication process by the next feasible posting for online policies and procedures.


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Effective: 4/15/1988

Revised: 11/12/2014

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PUR 004: Definitions

Terms in this manual are defined as follows:

Advantage
University financial system.
Affiliation Agreement
A contract between an academic department and an outside party for the provision of academic research or instruction.
Agreement
Contract.
Architect Services
Those professional architect services that are within the scope of architectural practice as provided in Arizona Revised Statutes, Title 32, Chapter 1.
Bid
An offer from a supplier to provide goods and/or services meeting specific requirements in response to an invitation to bid issued by the university.
Blanket Order
A contract for a specified period between the university and supplier to furnish the commodities specified in the order on a periodic release basis and, generally, at predetermined prices.
Brand Name or Equal
A method of describing an item to be purchased by using an actual brand, make, or model as a guide for comparison.
Buy Out
Make full payment on an installment contract before the end of the contract period.
Campus Mail
Correspondence contained in one of the two intercampus envelopes.
Campus Organizations
Parts of the university, e.g., Associated Students of ASU clubs, club sports, Greek organizations, and the ASU Bookstore (example of an administrative unit).
Competitive Bidding
The total process of requesting price quotations on an item or service.
Competitive Sealed Bid
A formal bid submitted by supplier in a sealed envelope that is to be opened publicly at a designated place, time, and date.
Competitive Sealed Proposal
A formal proposal submitted by a supplier in a sealed envelope that is to be opened publicly at a designated place, time, and date.
Consortium Contract
A contract entered into by a group of agencies or institutions that act as one agency for the benefit of all the institutions or agencies.
Construction-Manager-at-Risk
A project delivery method in which:
  1. There is a separate contract for design services and a separate contract for construction services.
  2. The contract for construction services may be entered into at the same time as the contract for design services or at a later time.
  3. Design and construction of the project may be in sequential phases or concurrent phases.
  4. Finance services, maintenance services, operations services, preconstruction services and other related services may be included.
Construction Services
Either of the following for construction-manager-at-risk, design-build, and job-order-contracting project delivery methods:
  1. Construction, excluding services, through the construction-manager-at-risk or job-order-contracting project delivery methods.
  2. A combination of construction and, as elected by the university, one or more related services, such as finance services, maintenance services, operations services, design services and preconstruction services, as those services are authorized in the definitions of construction-manager-at-risk, design-build, or job-order-contracting in this section.
Cooperative Contract
See Consortium Contract.
Cylinder Rental
The monthly rental charge for gas cylinders, whether they are full or empty.
Design-Bid-Build
A project delivery method in which:
  1. There is a sequential award of two separate contracts.
  2. The first contract is for design services.
  3. The second contract is for construction.
  4. Design and construction of the project are in sequential phases.
  5. Finance services, maintenance services, and operations services are not included.
Design-Build
A project delivery method in which:
  1. There is a single contract for design services and construction services.
  2. Design and construction of the project may be in sequential phases or concurrent phases.
  3. Finance services, maintenance services, operations services, design services, preconstruction services and other related services may be included.
Design and Construction Consultants
Architects, engineers, land surveyors, assayers, geologists, landscape architects, construction managers, construction programmers, and construction cost consultants.
Design Requirements
  1. At a minimum, the university’s written description of the project or service to be procured, including:
    1. The required features, functions, characteristics, qualities and properties, including, when applicable, programming, planning, and site and building development guidelines.
    2. The anticipated schedule, including start, duration and completion.
    3. The estimated budgets applicable to the specific procurement for design and construction and, if applicable, for operation and maintenance.
  1. May include:
    1. Drawings and other documents illustrating the scale and relationship of the features, functions and characteristics of the project, which shall all be prepared by an architect or engineer, as appropriate, who is registered pursuant to Arizona Revised Statutes § 32–121.
    2. Additional design information or documents that the university elects to include.
Design Services
Architect services, engineer services or landscape architect services.
Emergency
A situation that endangers lives, property, or the continuation of vital programs and that requires immediate, on-the-spot procurements of equipment, materials, supplies, or services.
Engineer Services
Those professional engineer services that are within the scope of engineering practice as provided in Arizona Revised Statutes, Title 32, Chapter 1.
Finance Services
Financing for a construction services project.
F.O.B.
Free on board. A shipping term defining the point at which title to goods passes from the seller to the buyer. It is used when establishing responsibility for filing damage claims with the carrier.
Funding-Out Clause
A clause in an installment contract that allows the university to terminate a contract without penalty if funds are not appropriated for the purpose stated in the contract.
GSA
The General Services Administration of the federal government.
Indemnify
Hold the other party to a contract harmless from penalty.
Independent Contractor
An individual or organization contracted to perform a particular service and/or produce an agreed-upon outcome, where there is no right to specifically control and direct the manner in which the job is done.
Installment Contract
An agreement that requires specific performance by one or both parties at predetermined intervals and is common use for payment in specific increments over a specific period. (Title to goods passes to the buyer upon final payment.)
Internal Purchase Order
A request submitted by a department that authorizes an on-campus service department to charge the requesting department for goods or services. The request is made online using a PO document.
Invitation to Bid (ITB)
A written document, issued by Purchasing and Business Services, requesting a bid on a specified item or service.
Invited Guest
A person who enters a campus for an educational, research, or public service activity, and not primarily to purchase or receive goods or services not related to the educational, research, or public service activities of the university.
Job-Order-Contracting
A project delivery method in which:
  1. The contract is a requirements contract for indefinite quantities of construction.
  2. The construction to be performed is specified in job orders issued during the contract.
  3. Finance services, maintenance services, operations services, preconstruction services, design services, and other related services may be included.
Kickback
Any money, fee, commission, credit, gift, gratuity, thing of value, or compensation of any kind that is provided, directly or indirectly, to any prime contractor, prime contractor employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with a subcontract relating to a prime contract.
Lease
An agreement for the right to use property for a specified period at a specified cost. Title remains with the lessor. At no time does the lessee build equity in the property.
Lease/Purchase
An agreement for the right to use property for a specified period at a specified cost. During the term of the lease, the lessee builds equity at a specified rate so that at the end of the lease period, the lessee has the option of purchasing the property at a specified amount. Title to the property remains with the lessor until the lessee exercises the option to purchase.
Minor Informality
A minor deviation from the prescribed form that, when corrected, is not prejudicial to other bidders nor harms the university in any way.
Normal Processing Time
The time required from receipt of a properly prepared purchase requisition by Purchasing and Business Services until issuance of a purchase order or contract. This time will vary according to the complexity of the procurement. Normal processing time for a requisition that does not require bidding is generally 2–6 working days. For more complex or costly items that require competitive bidding, the processing time is generally 60–90 days, depending upon the complexity of the solicitation.
Paper
Newspaper, high grade office paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper, and related types of cellulosic materials containing not more than ten percent by weight or volume of noncellulosic material such as laminates, binders, coatings, or saturates.
Paper Product
Paper items or commodities, including paper napkins, towels, corrugated paper, and related types of cellulosic products containing not more than ten percent by weight or volume of noncellulosic material such as laminates, binders, coatings, or saturates.
PDLVPO (Departmental Limited Value Purchase Order)
A purchase order available to university departments and research centers for the purchase of certain materials up to a limit of $5,000 (including tax and freight).
Personal Services
A subcategory of services performed by an individual or organization for a specific study, project, or task with performance criteria dependent upon the expertise of the individual or organization.
PO
Online Internal Purchase Order.
Post-Consumer Material
A discard generated by a business or residence that has fulfilled its useful life. Post-consumer materials do not include discards from industrial or manufacturing processes.
Professional Services
A subcategory of personal services requiring a high degree of knowledge and training. Frequently, the individual or organization providing the service(s) is professionally licensed.
Proposal
An offer from a supplier to provide goods and/or services falling within general guidelines enumerated in a request for proposal issued by the university.
Proprietary Information
Information that is submitted by a supplier who claims exclusive ownership of that information and that is not to be disclosed publicly.
Public Information
All information in Purchasing and Business Services files, except proprietary information, that has any bearing on the award of an order or contract.
Purchase Order
An order issued by Purchasing and Business Services (on the university’s standard Purchase Order form) or authorized by Purchasing and Business Services and issued by a university department or research center (on a Departmental Limited Value Purchase Order form) for the procurement of goods and/or services that, when accepted by the supplier, becomes a contract.
Purchase Request
A request submitted by a department that authorizes Purchasing and Business Services to contract with an outside supplier to purchase goods or services for the university and to charge the appropriate departmental area/org for those goods and/or services. The request is made online using an RX document. A purchase request creates a pre-encumbrance transaction.
PV
Online Request for Check.
RC
Online receiving document.
Real Property
Land and permanently affixed buildings and improvements.
Recycled Paper
Paper products that have been manufactured from materials otherwise destined for the waste stream and that contain at least 40 percent recovered wastepaper with ten percent of that being post-consumer material.
Request for Proposal (RFP)
A written document, issued by Purchasing and Business Services, requesting pricing and a proposed method of accomplishing the objective for an item or service for which definitive specifications cannot be written and only the desired end result can be specified.
Request for Qualifications
All documents, whether attached or incorporated by reference, which are used in soliciting statements of qualifications in accordance with procedures prescribed in Section 3-803E, 3-804B.3.b, or any other appropriate provision of the University Procurement Code of the Arizona Board of Regents Policy Manual.
Resale Activity
A program that sells goods and/or services primarily to individuals for personal use rather than to university departments or programs for official use. Payments made by individuals are the primary source of revenue for a resale activity.
Responsible Bidder or Proposer
A person who has the capability, including necessary experience, to perform the contract requirements; who has the integrity and reliability which will ensure good faith performance and appropriate quality of the materials, services, construction or construction services, to be provided; and who is in compliance with any and all licensing requirements of the State of Arizona.
Responsive Bidder or Proposer
A person who submits a bid that conforms in all material respects to the invitation for bids or request for proposals.
RX
Online purchase request.
Sales Tax
A tax imposed on the supplier for the privilege of doing business in Arizona that is passed on to the buyer.
Service Center
A program that sells goods and/or services primarily to university departments or programs for official use. Interdepartmental billings are the primary source of revenue for a service center.
Services
  1. The furnishing of labor, time or effort by a contractor that does not involve the delivery of a specific end product other than required reports and performance.
  2. Does not include employment agreements or collective bargaining agreements.
Small Business
A concern that is independently owned and operated, is not dominant in its field of operation, and (with its affiliates) meets the size standards set by the U.S. Small Business Administration.
Small Business - Arizona
(Arizona Revised Statutes § 41–1001) A business, including its affiliates, that is independently owned and operated, not dominant in its field, and that employs fewer than 100 full-time employees or that had gross annual receipts of less than $4,000,000 in its last fiscal year.
Small Business - Federal
(15 United States Code § 631 (1982 & West Supp. 1987)) A business that is independently owned and operated, is not dominant in the field of operations in which it is quoting on purchases, and, with its affiliates, does not exceed 500 full-time employees.
Small, Disadvantaged Business
Any small business that is at least 51 percent owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more socially and economically disadvantaged individuals; and whose management and daily business operations are controlled by one or more of such individuals.
Disadvantaged Person
An individual who is both socially and economically disadvantaged. Such an individual is normally considered to be a minority.
Socially Disadvantaged
Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. Such groups include, but are not limited to, black, Hispanic, and native Americans (i.e., American Indians, Eskimos, Aleuts, and native Hawaiians); Asian-Pacific Americans (i.e., U.S. citizens whose origins are from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territories of the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan); and other minorities; or any individuals found to be disadvantaged pursuant to Section 8a of the Small Business Act, 15 United States Code § 637(a) (1982).
Economically Disadvantaged
Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired because of diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged. In determining the degree of diminished credit and capital opportunities the Small Business Administration shall consider, but not be limited to, the assets and net worth of such socially disadvantaged individuals.
Small Women-Owned Business
Any small business that is at least 51 percent owned by a woman or women, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by a woman or women; and whose management and daily business operations are controlled by a woman or women.
Sole Source Item
An item available for purchase from a single source only (e.g., an item to match other items, a unique piece of equipment manufactured by one company only, an original work of art).
Solicitation
An invitation to bid, request for proposal, or any other request for prices, including all specifications, plans, and other supporting documents.
Specifications
Descriptive information used to procure specific goods or services that may include performance, delivery requirements, physical characteristics, packaging requirements, and operating parameters of goods.
SR
Online Stock Requisition.
State Procurement Office
The office responsible for administering State of Arizona procurement functions.
Subcontractors List
A list submitted by a general or prime contractor indicating those subcontractors who will perform specified portions of the contract.
Supplier
An individual or firm outside the university that sells goods or services.
Trademark License
A right to use a registered mark(s) on a commercial product or in a communications medium, e.g., television or newspaper advertising.
Use Tax
A tax imposed on the buyer for purchases made from out-of-state suppliers.
Wastepaper
Recyclable paper and paperboard, including high-grade office paper, computer paper, fine paper, bond paper, offset paper, xerographic paper, duplicator paper, and corrugated paper.

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