16. Livestock Purchase Procedures
I. General
A. The purchase of livestock on behalf of the University requires special procedures because such livestock must be promptly paid for, is generally to be used for research and must possess special/specific qualities/characteristics for such use, may be required from a specific locality and may require special individual or herd historical records. Because such livestock is generally not available through regular sources, judgment of an expert or purchasing from a certified vendor is required to assure the specific required characteristics are met. Premium price may be warranted.
B. Attempts shall always be made to secure the maximum amount of competition when buying livestock.
II. Policy
A. An Automatic Purchase Order (APO) is authorized for the purchase of livestock up to and including $10,000. Purchases for livestock greater than $10,000 must be accomplished by an approved purchase order issued by Procurement Services.
B. Departments are required to use the appropriate object code (6227 for research acquisition or 6228 for production acquisition) for these purchases; however, the Institutional Animal Care Use Committee (IACUC) must approve a protocol if animals are used for research purposes.
C. The Director of Procurement Services hereby delegates authority to the College of Agricultural Sciences, the College of Veterinary Medicine and Biomedical Sciences and applicable Agricultural Experiment Station centers to purchase livestock by use of special procedures outlined in this section.
D. Any conflict of interest shall be fully disclosed according to the University’s “Conflict of Interest (COI) Policy”.
III. Responsibility
A. Procurement Services sets general policies that satisfy the special requirements of the University and ensure compliance with purchasing standards appropriate under the circumstances. Procurement Services monitors livestock purchase operations and the ordering department retains documentation as outlined in these instructions.
B. Designated coordinators for the College of Agricultural Science, the College of Veterinary Medicine and Biomedical Sciences and Agricultural Experiment Station are responsible for complying with these instructions in their respective organizations and serving as liaison with Procurement Services and Accounts Payable.
C. Designated livestock experts of the University, who are familiar with the specific requirements of the research project, who are qualified to judge the qualities and characteristics of livestock required for research, and who are familiar with day-to-day prices for such characteristics are responsible for protecting the interests of the University, and under conditions outlined in these instructions, fulfill requirements for documentation and certification that prices paid were the best available to the University.
D. The respective colleges and Agricultural Experiment Station shall designate, in writing, the selection of coordinators and designated livestock experts for the purposes outlined above for production livestock using object code 6228. A copy of such designation shall be forwarded to Procurement Services at the beginning of each fiscal year. For research animals using 6227 object code requests will route for Lab Animal Resources review to ensure IACUC requirements are in compliance and do not require a designation.
E. All responsible parties must ensure that no conflicts of interest exist.
IV. Procedures
A. Purchase of livestock.
1. Establishment of need and specifications. The need for the livestock should be established and approved by the designated coordinator. Any special characteristics required should be determined, documented, and when applicable, reference must be made to a specific research project.
2. Method and price of purchase. The method of purchase most advantageous to the University within the guidelines of this instruction and which meet the operational requirements of the department must be used. Such methods of purchase may include sealed bids, telephone bids, auctions or negotiated prices.
3. Documentation of purchase.
a. Automatic Purchase Order ($10,000 and less). Authority for purchase and acknowledged receipt of livestock should be documented on the APO. Instructions for use of the APO are outlined in Section PM-3 of the University Purchasing Manual. A copy of the Purchase/Sale of Livestock form, referencing the appropriate APO number, must be forwarded to Accounts Payable. Note: Departments are required to use the appropriate object code (6227 for research acquisition or 6228 for production acquisition) for these purchases; however, the Institutional Animal Care Use Committee (IACUC) must approve a protocol if animals are used for research purposes. Purchases in this category are considered Small Dollar Purchases which are defined in CSU Procurement Rules as the purchase of materials, equipment, or services where the aggregate total is less than $10,000 per fiscal year. If the purchase is subject to the Davis-Bacon Act or Service Contract Act, the aggregate total may not exceed $2,000 per fiscal year.
b. Purchase Order (greater than $10,000). A purchase requisition (REQ) should be initiated by the requesting department or experiment station as outlined in Section PM-2 of this manual. A copy of the Purchase/Sale of Livestock form must be attached to the REQ. Note: Departments are required to use the appropriate object code (6227 for research acquisition or 6228 for production acquisition) for these purchases; however, the Institutional Animal Care Use Committee (IACUC) must approve a protocol if animals are used for research purposes.
c. Purchase/Sale of Livestock form. The Purchase/Sale of Livestock form must be prepared for each purchase. The form must document the specific requirements. Bids should be secured when applicable and all bid data recorded in the Bid Summary section. If competitive bids are not secured, but other means of purchase are used such as auction, negotiation, trading, etc., this information shall be noted in the Special Circumstances area of the form. The designated individual must complete the certification. The coordinator and/or department receiving the livestock should retain the original. The Purchase/Sale of Livestock form is available electronically from Procurement Services.
4. Payment for purchase. Request the seller to send an invoice directly to Colorado State University, Accounts Payable. The invoice must reference the appropriate purchase order number. After receipt of the invoice, AP will mail a check direct to the seller. If payment is required upon purchase or delivery under the USDA Prompt Payment for Livestock Act (P&S Act) an advance payment check may be secured from Accounts Payable or use payment terms of Net 0 upon request.