10. Food Service Purchasing Procedures
I. General
Residential Dining Services makes volume purchases which in many cases must be delivered in weekly or even daily increments. Deliveries, especially of meat, produce, and dairy products, must often be made on a spot basis due to changing market conditions. These special operations require special procedures which are outlined in these instructions.
II. Policy
A. The Director of Procurement Services hereby delegates authority to the Director of Residential Dining Services to authorize purchases and to issue purchase orders according to procedures outlined in this Section for the procurement of food, china, glassware, utensils, kitchen supplies, food service cleaning supplies, disposable paper/plastic products and food service equipment. All procurement activities conducted by Residential Dining Services are subject to the Colorado State University Procurement Rules, as now or hereafter amended, and must be completed using procedures and forms prescribed by Procurement Services. In addition, the Director of Residential Dining Services will maintain a file containing a delegation letter from the Director of Procurement Services naming the specific individual authorized to perform these procurement functions. The named authorized delegate will report dually to the Director of Residential Dining Services and the Director of Procurement Services.
B. Procurement of all services, and goods not related to the preparation and serving of food, such as office furniture, computers, etc. will remain the responsibility of Procurement Services.
III. Procedures
A. Procurement
1. Existing Price Agreements. Group Purchasing Organization (GPO) and Colorado State University price agreements should be utilized when available.
2. Purchase of goods between $5,000 and $50,000. A minimum of two written quotes must be obtained and the purchase decision made on the basis of price and best value, specifications and other terms being met.
3. Purchase of goods between $50,000 and $500,000. A Documented Quote shall be prepared, advertised, evaluated and awarded in accordance with Section V.F. of the Colorado State University Procurement Rules. An award to a vendor other than the low bidder requires approval from the Director of Procurement Services.
4. Purchase of goods greater than $500,000. An Invitation for Bid shall be prepared, advertised, evaluated and awarded in accordance with Section V.G. of the Colorado State University Procurement Rules. Award shall be made to the lowest responsive/responsible bidder. An Intent to Negotiate may be utilized when seeking competition among known vendors that are on group purchasing organization (GPO) vendor list per Section V.J. of the Colorado State University Procurement Rules.
5. Sole Source Procurements. Any request for a sole source purchase must be approved by the Director of Procurement Services.
6. Solicitation Files. Residential Dining Services will maintain solicitation files using forms and procedures prescribed by Procurement Services.
B. Purchase Order Initiation and Use
1. General. Each purchase must be covered in advance of receipt of goods by an authorized purchase order issued from the Kuali Financials (Kuali). All Purchase Orders must be approved by the authorized delegate. Purchase Orders greater than $50,000 require a secondary approval by the Director of Procurement Services or his/her delegate. Additionally, Residential Dining Services will maintain Purchase Order files, including applicable back up documentation, following procedures prescribed by Procurement Services. NOTE: Other sections of this manual outline procedures for use of the Automatic Purchase Order (APO), Disbursement Voucher (DV), PCard or Internal Order (IO).
2. Purchase Order Types. Purchase Orders will be used to authorize all purchases for Residential Dining Services as outlined in paragraph II‑A above. Data should be entered in the Purchase Order as required by Kuali. Purchase Orders may cover a specific purchase, Regular Purchase Order, or an extended period of time, Open Purchase Order, as conditions require.
a. Regular PO. In all cases, the Purchase Order should state the specific quantity, description and price of the item(s) to be delivered as well as the solicitation number, price agreement number or quotation number. In addition, specific terms, such as freight or payment terms, must be identified on the Purchase Order. Delivery may be at one time or place or as directed.
b. Open PO. When the purchase of same or similar items (i.e., meats, produce, etc.) is anticipated over the course of a fiscal year, an Open Purchase Order may be used. Such order should generally identify the type of item, start and end dates, single order limit, maximum dollar amount and individuals authorized to place orders against the Open PO. Specific terms should be noted on the Open PO as well as the solicitation number.
3. Purchase Order Amendments. If it becomes necessary to change the stated item description, quantity, item cost or total cost on a Purchase Order, such change will be accomplished through the issuance of a Purchase Order Amendment via Kuali. Amendments must be retained in the Purchase Order file and a copy sent to the vendor.
4. Receiving. Residential Dining Services will be responsible for desktop receiving within KFS for receipt of goods.
C. Document Retention. Solicitations, Purchase Orders, Amendments and applicable back up documentation must be retained for periodic review by Procurement Services and for audit purposes.
D. Accounting Procedures. All requisitions will be generated and approved by members of the Dining Services staff, other than the individual specifically authorized to perform these procurement functions. After insuring receipt of goods, the Dining Services Account Tech II will pay all invoices in Kuali under a Payment Request, as a result of Purchase Orders generated by the authorized Dining Services Purchasing delegate. Duties will be properly segregated to insure that all state, University and departmental rules and regulations are properly followed.