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Procurement Policies and Procedures for Departments
1.0 Procurement Policy .......................................................................................................... 4
1.1 Procurement Mission and Objectives ...................................................................... 4
1.2 Authority For Procurement....................................................................................... 5
1.3 Procurement Services Organization ........................................................................ 5
1.4 Procurement Functions............................................................................................ 7
1.5 Issuing Office for Vanderbilt University .................................................................... 8
2.0 University Polici es and Business Ethics ........................................................................ 9
2.1 Delegation of Authorization Policy (Contract approval & signatures) ...................... 9
2.2 Confidentiality Policy and Public Relations.............................................................. 9
2.3 False Claims Act Policy ......................................................................................... 10
2.4 Ethics ..................................................................................................................... 10
2.5 Conflicts of Interest ................................................................................................ 11
2.6 Gifts and Gratuities ................................................................................................ 11
2.7 Personal Purchases ............................................................................................... 11
3.0 Purchasing Processes ................................................................................................... 11
3.1 Purchasing Methods Matrix ................................................................................... 11
3.2 eProcurement ........................................................................................................ 13
3.3 Requisitions and Purchase Orders ........................................................................ 13
3.4 PMM Purchase Orders .......................................................................................... 14
3.5 Purchase Credit Card (Pcard) ............................................................................... 14
3.6 Small Purchase Order (SPO) (discontinued 1/1/2012) ......................................... 14
3.7 Purchase Order Changes ...................................................................................... 15
3.8 Acknowledgements ................................................................................................ 15
3.9 Purchase Order Terms and Conditions ................................................................. 15
3.10 Insurance Requirements........................................................................................ 15
3.11 Sales Tax Exemptions and Vanderbilt classification numbers .............................. 16
4.0 Receiving Process .......................................................................................................... 16
4.1 Receiving ............................................................................................................... 17
4.2 Inspecting .............................................................................................................. 17
4.3 Testing ................................................................................................................... 19
4.4 Acceptance ............................................................................................................ 19
4.5 Product Returns for Credit/Refund ........................................................................ 19
4.6 Accepting or Rejecting Services ............................................................................ 20
5.0 Purchase Order Types .................................................................................................... 21
5.1 Service Agreement Orders ................................................................................... 21
5.2 Blanket Orders ....................................................................................................... 21
5.3 Emergency Orders ................................................................................................. 22
5.5 Procedures for Negotiating & Processing Leases ................................................. 23
6.0 Contracting Process ....................................................................................................... 24
6.1 Standard Contract Templates ................................................................................ 25
7.0 Capital Equipment Purchases ....................................................................................... 26
7.1 Capital Equipment ................................................................................................. 26
7.2 Capital Equipment Requisition Process ................................................................ 26
7.3 Capital Equipment Cost ......................................................................................... 28
7.4 Enhancements ....................................................................................................... 28
7.5 Computer Purchases ............................................................................................. 28
7.6 Conditions of Acceptance ...................................................................................... 29
7.7 Equipment Repairs and Upgrades ........................................................................ 29
7.8 No Charge Equipment Agreements ....................................................................... 29
7.9 Equipment Evaluation Agreements ....................................................................... 30
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7.10 Used Equipment Purchases .................................................................................. 30
7.11 Equipment Rentals ................................................................................................ 31
8.0 Competitive Sourcing ..................................................................................................... 32
8.1 Solicitation of Proposals and Quotations ............................................................... 32
8.2 Purchasing from Approved Suppliers / Gold Guide ............................................... 32
8.3 Competitive Sourcing Methods .............................................................................. 33
8.4 RFP Process Guidelines........................................................................................ 34
8.5 Revisions to the Request for Proposal .................................................................. 35
8.6 Ownership of Materials .......................................................................................... 35
8.7 Withdrawing Proposals .......................................................................................... 35
8.8 Confidentiality of Proposals ................................................................................... 35
8.9 Late or Unsolicited Proposals ................................................................................ 35
8.10 Errors in Proposals / Right to Reject Proposals .................................................... 36
8.11 Supplier Protest Resolution process ..................................................................... 36
8.12 Proposal Request Checklist .................................................................................. 36
8.13 Exceptions to Competitive Sourcing ...................................................................... 37
8.14 Non-Competitive (Sole Source) Procurement ....................................................... 38
8.15 Supplier Diversity & Small Business Program ....................................................... 38
8.16 Green Purchasing Program ................................................................................... 39
8.17 Purchase Order Terms and Conditions ................................................................. 40
8.18 General Supplier Policies and Procedures ............................................................ 41
9.0 VUMC Clinical Enterprise Sourcing .............................................................................. 41
9.1 Clinical Sourcing Policy (MEOC) ........................................................................... 41
9.2 Clinical Enterprise Contract Guidelines ................................................................. 41
9.3 Authorization to Requisition / Purchase Supplies, Services and Capital .............. 42
9.4 HIPAA Business Associate Agreements ............................................................... 43
9.5 VUMC Vendor Liaison Program ............................................................................ 44
9.6 VUMC Supplier-furnished Training ........................................................................ 44
10.0 Surplus Property ............................................................................................................. 44
10.1 Surplus Property Policy ......................................................................................... 44
10.2 Surplus Property Procedures ................................................................................ 45
10.2 VUMC Storage and Services Surplus Equipment Store ....................................... 46
11.0 Financial / Payment Information .................................................................................... 47
11.1 Account/Center Numbers ...................................................................................... 47
11.2 Payment Terms ..................................................................................................... 47
11.3 Invoice Approval .................................................................................................... 47
11.4 Cancellation of Encumbrances .............................................................................. 48
11.5 Demand Check Requests ...................................................................................... 48
11.6 Year End Closing Procedures ............................................................................... 48
11.7 Procurement Activity Reports ................................................................................ 49
11.8 Departmental Routing Codes (DRC) ..................................................................... 49
12.0 Speci alized Purchases ................................................................................................... 50
12.1 Internal Vanderbilt Requisitions ............................................................................. 50
12.2 University Business Operations ............................................................................. 50
12.3 Material Purchases for Capital Construction Projects ........................................... 50
12.4 Contracts for Facility Renovations or Modifications .............................................. 51
12.5 External Consultants and Independent Contractors .............................................. 51
12.6 Forms ..................................................................................................................... 51
12.7 Facility Rentals and Leases ................................................................................... 52
12.8 Performing Artist / Guest Speaker Contracts ........................................................ 52
12.9 Research Animal Purchases ................................................................................. 52
12.10 Controlled Substances........................................................................................... 52
12.11 Radioactive Materials ............................................................................................ 53
13.0 Vehicle Acquisition & Li censing Process .................................................................... 53
13.1 Vehicle Purchases ................................................................................................. 53
13.2 Vehicle Leases / Long Term Rentals ..................................................................... 53
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13.3 Vehicle License Renewals ..................................................................................... 53
13.4 Emissions Testing .................................................................................................. 54
13.5 Traffic and Parking Violations ................................................................................ 54
14.0 International Shipments & Customs Brokers .............................................................. 54
14.1 What is a Customs Broker? ................................................................................... 54
14.2 Why Use a Customs Broker? ................................................................................ 54
14.3 When to use a Customs Broker ............................................................................. 55
14.4 Approved Customs Brokers ................................................................................... 56
14.5 Standard Customs Documentation ........................................................................ 58
15.0 Travel Program ................................................................................................................ 59
15.1 Travel Policy .......................................................................................................... 59
15.2 Travel ..................................................................................................................... 59
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1.0 Procurement Policy
In accordance with the policies authorized by the Board of Trust of Vanderbilt University and the
Chancellor, all purchases, irrespective of sources of funds, will be governed by the following policy:
It shall be the procurement policy of the university to obtain all supplies, equipment and services at the
lowest cost to the university that meet or exceed the customer’s specifications for performance, quality and
availability at the time of purchase. In conforming to this policy, the capability, capacity and historical
performance of the supplier will be considered and weighed in the decision process. Sourcing decisions
will also be tempered by supplier diversity and environmental impact considerations. Competitive bids will
be solicited whenever possible and practical and in compliance with all applicable federal regulations and
university policies.
1.1 Procurement Mission and Objectives
The responsibility for the purchase of all products, supplies, furniture, equipment, vehicles and services at
Vanderbilt University is divided between two organizations: Procurement Services and Medical Suppl y
Sourcing. Although reporting to different organizations and assigned different responsibilities, all core
systems, methods, policies and procedures remain common. For the purposes of this policy and
procedures manual, the term “Procurement” will include both Procurement Services (university central)
and Medical Supply Sourcing (Vanderbilt University Medical Center and Clinics) unless specifically noted
otherwise.
Procurement is responsible for overseeing the commercial relationships between Vanderbilt University and
its suppliers and insuring that all aspects of our relationships are held to the highest ethical and
professional standards. Our suppliers contribute significantly to the ongoing success of Vanderbilt
University and Procurement in turn actively supports our suppliers and helps them achieve their
objectives. The Supplier Diversity program, which promotes commerce with small, disadvantaged and
diversity owned businesses, is one example of this support.
Procurement’s mission is to cooperatively develop and execute sourcing strategies with Vanderbilt
University departments for products and services that meet or exceed university requirements, and to
perform these services to the highest ethical and professional standards. Procurement Services:
• Provides leadership through contract negotiation, supplier management and conversion to
modern eCommerce purchasing technologies
• Promotes small, disadvantaged and minority-owned businesses through the Small Business
and Diversity Supplier program
• Supports the university’s commitment to environmental responsibility
• Supports the university’s commitment to outreach to the local business community
• Assists departments involved in federal contracts and grants in maintaining compliance to all
applicable regulations
• Assists departments in maintaining compliance to all university policies regarding
contracting and purchasing.
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1.2 Authority For Procurement
Procurement Services is a department in Finance and reports to the Associate Vice Chancellor for
Finance for the university. The Vice Chancellor for Finance and Chief Financial Officer (CFO) of the
university has delegated specific responsibilities for the administration of procurement policies and
procedures to the Director of Procurement Services.
The authority to make purchases from allocated departmental budgets for services or materials is
delegated to Procurement Services by the signature of the departmental administrator on the Purchase
Requisition. Approval to spend budgeted funds may be subject to prior approval of Contract and Grant
Accounting or Finance. Purchases on restricted center numbers must be authorized by the Principal
Investigator and reviewed and approved by Finance (VUMC) or Contract and Grant Accounting (university
central) before being processed by Procurement Services.
Medical Suppl y Sourcing is a department of the Medical Supply Chain organization which reports to the
Chief Supply Chain Officer for the Vanderbilt University Medical Center. The Vice Chancellor for Finance
and Chief Financial Officer (CFO) has delegated specific authority to Medical Supply Sourcing for the
administration of procurement policies and procedures related to the purchase of clinical patient supplies,
clinical patient services and medical equipment for the Clinical Enterprise.
Since these purchasing responsibilities are centralized in Medical Supply Sourcing, departments should
not be independently negotiating or signing supplier contracts without consulting Medical Supply Sourcing.
The authority to make purchases from allotted departmental budgets for services or products is delegated
to Medical Supply Sourcing by the signature of the departmental administrator on the Purchase
Requisition. Approval to spend budgeted funds may be subject to prior approval based on the scope of the
purchase. All purchase requests are required to follow the established procedure for introduction of new
products, technology or services established through the Medical Economics Outcome Committee
(MEOC) when appropriate.
Procurement Services and Medical Supply Sourcing have the delegated authority and responsibility to:
• Manage the assessment and selection process for all Approved Suppliers
• Negotiate terms and conditions for supply contracts, service agreements and capital
equipment
• Review, award and sign contracts for the purchase of products and services
• Review, award and sign equipment and vehicle leases
• Execute all purchase orders, regardless of format or process
• Conduct bids for general use products and services, as well as support department-specific
sourcing projects
• Manage the ongoing business relationship with key suppliers
1.3 Procurement Services Organization
Procurement Services
Procurement Services is the primary organization responsible for the purchase of all general supplies,
furniture, equipment, vehicles and services for the university central campus and School of Medicine
research laboratories.
All Vanderbilt University Medical Center non-clinical product and service contracts, general maintenance,
repair and operations supplies (MRO) and facility maintenance service contracts are also managed by
Procurement Services. The following products and services are managed by Procurement Services:
• Capital Equipment purchases / leases and service contracts (non-clinical)
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• Consultants, Contractors and Professional Services (non-construction related)
• Forms and Printing services
• Furniture and interior design services
• Information Technology hardware and software
• Research laboratory equipment and services
• Research laboratory supplies
• Logistics services
• Maintenance / Repair / Operations (MRO) supplies and services
• Office supplies
• Office equipment (copiers, fax machines, printers)
• Telecommunications products and services
• Travel services and university event contracts
• Vehicles and transportation services
• Waste management, recycling services
Procurement Services office
110 21
st
Avenue South
Suite 1110, Baker Building
Nashville, TN 37203-2406
Phone: 615.322.2911
Fax: 615.343.6468
Procurement Services organization chart and contact list is at: Procurement Contacts List
Procurement Sourcing Personnel Assignments
Both Procurement Services and Medical Supply Sourcing departments use the same structure for
managing contracts, commodities, suppliers and purchase order processing. There are three distinct
personnel assignment classifications:
• Sourcing Officers – Sourcing Officers are responsible for managing all Requests for Proposal
(RFP) projects, contract negotiations and key supplier contracts. They work closely with the
Purchasing Agents to insure suppliers comply with our policies, procedures and contracts.
Sourcing Officers also have delegated authority to sign contracts within specific limits.
• Purchasing Agents – Purchasing Agents are assigned by commodity or to specific groups of
departments. Agents process all purchase order requisitions and manage all delivery, quality and
price issues with suppliers. Agents also negotiate prices, terms and conditions with non-contract
suppliers for spot purchases and assist departments in finding suppliers for non-contract
purchases. Agents have delegated authority to sign purchase orders within specific limits.
• Admini strative Assistants – These Procurement team members perform a vast array of tasks
including the preparation work on incoming requisitions, requisition quality audits, SPO
processing, PO requisition data entry and document imaging.
Website
The Procurement Services website contains comprehensive information about Procurement Services
operations including approved suppliers, contract programs, organizational structure, Procurement
personnel contact information, commodity support assignments and information for suppliers. The website
address is:http://www.vanderbilt.edu/procurement/
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Medical Suppl y Sourcing
The Medical Supply Sourcing department is a functional organization reporting to the Chief Supply Chain
Officer for Vanderbilt University Medical Center. Medical Supply Sourcing purchases all clinical patient
supplies, medical and surgical supplies, clinical capital equipment and all related clinical services for
Vanderbilt University Medical Center and clinics. The following products and services are managed by
Medical Supply Sourcing:
• Ambulance services
• Clinical patient supplies
• Clinical gases
• Clinical distribution services
• Clinical capital equipment purchases / leases & equipment services
• Clinical engineering services
• Environmental services
• GPO contract management
• Hospital nutrition, cafeteria and retail services
• Laser services
• Life Flight operations support
• Linen services
• Medical & bio-hazardous waste
• Medical & surgical supplies
• Medical laboratory supplies
• Transcription services
The Supplier Liaison Office reports to Medical Supply Sourcing and resides in the Medical Supply
Sourcing office located in The Vanderbilt Clinic (TVC-706).
Although the Medical Supply Chain is a functional organization within VUMC, all core systems, methods,
policies and procedures are common between Medical Supply Sourcing and Procurement Services. These
common systems and methods include the existing purchase requisition process, eProcurement, the
Pcard program and invoice processing by Disbursement Services.
Medical Suppl y Sourcing office
Vanderbilt University Medical Center
B706B TVC
Nashville, TN 37232-5672
Phone: 615.322.5654
Fax: 615.343.4405
Website
The Medical Supply Sourcing website address is organization and contact list is at: Medical Supply Chain
1.4 Procurement Functions
While the services performed by Procurement vary according to the individual needs of the university
departments, the following is a partial list of services and responsibilities assigned to Procurement:
• Review, process and issue Purchase Orders (PO)
• Prepare and issue PO change orders
• Reconcile PO invoice discrepancies
• Prepare and issue Requests For Proposals (RFP)
• Determine optimal ordering method to meet requirements at lowest possible cost
• Support the deployment and use of the Purchase Card (Pcard) program
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• Analyze quotations and proposals
• Evaluate and select suppliers
• Evaluate performance of suppliers and related competencies / training requirements
• Manage general use supplier programs for the entire university (office supplies, etc.)
• Negotiate and review contracts
• Terminate contracts
• Maintain VandyConTracs contract management system
• Participate in development of customer project specifications and standards
• Negotiate and execute equipment leases and rentals for the central campus and School of
Medicine
• Conduct training sessions for Procurement programs and systems
• Identify cost reduction opportunities including:
o off-contract spending
o tier maximization
o product and process standardization
• Conduct market trend studies
• Conduct price/cost analyses
• Participate in shared/group purchasing and manage GPO relationships
• Schedule purchases and deliveries
• Determine modes of transportation and carriers
• Negotiate adjustments with suppliers
• Administer PeopleSoft APPO system
• Administer eProcurement system
• Assist in audits and reviews
• Represent Vanderbilt University at trade shows and educational procurement conferences
1.5 Issuing Office for Vanderbilt University
Procurement Services / Medical Supply Sourcing shall be the point of origin at Vanderbilt
University for all information pertaining to on-going and future general purchasing contracts,
processes and policies. Procurement Services / Medical Supply Sourcing should issue all
Requests for Proposals, contract documents, purchase orders and purchase order changes, and
correspondence relating to any of the above documents or projects. This policy is designed to
accomplish several goals:
• The RFP documents will be uniform in their organization and content, complete with terms
and conditions of the solicitation to which suppliers must agree before returning their
offers.
• The use of a standardized RFP process improves the quality of supplier proposals
received and makes the evaluation process more competitive and comprehensive.
• Procurement Services is the centralized clearinghouse for responding to supplier and
public questions, inquiries regarding specific projects or general questions concerning
procurement activities at the university. Medical Supply Sourcing performs this same
function for VUMC.
• Campus Planning & Construction and VUMC Space & Facilities Planning have special
delegated authority to negotiate and manage all contracts with architects, construction
contractors and consulting engineers. Both department also issue purchase orders for
capital construction projects.
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2.0 Uni versity Policies and Business Ethics
2.1 Delegation of Authorizati on Policy (Contract approval & signatures)
The Delegation of Authority Policy outlines who may approve and sign contracts, legally binding
agreements, business ventures and other agreements with external parties that obligate the
university (including memoranda of understanding).
The policy is comprised of three sections: The narrative serves as an introduction to the policy and
offers guidance on how to use it. Exhibit 1 contains specific items requiring the approval of the
Board of Trust. Exhibit 2 reflects the Chancellor's delegation of specific approval and signature
authority for contracts and agreements. Those to whom the Chancellor has delegated specific
authority are permitted to further delegate authority to others (referred to as "sub-delegates").
How to use this policy:
To determine who may sign a contract or agreement, first locate which section and/or sub-section
in the policy best describes the agreement. Each section contains a list of approvers and a signer.
Before the contract or agreement may be executed, all approvals must be granted in writing. With
the appropriate approvals, the authorized signer may execute the agreement.
This policy is located at: Delegation of Authority Policy
The Delegation of Authority Sub-Delegations document identifies those to whom the Chancellor´s
delegates have sub-delegated authority for approval and signature on various types of contracts
and agreements
Delegation of Authority Sub-Delegations Matrix
Unless specifically named in the policy, department staff do not have the authority to enter into
and sign contracts with suppliers.
NOTE: Contract signature authority is not the same as requisition signature authority.
Departments have delegated authority to commit budget dollars for specific centers. The Privilege
Management System Signature Authority lists individual’s spending limits by center.
Privilege Management
See Section 5.0 Contracting Process for information on how to route contracts for review or
request assistance in drafting contracts.
2.2 Confidentiality Policy and Public Relations
Procurement Services maintains regular contact with many individuals and companies seeking to
initiate or expand business relations with the university. University employees who come in contact
with supplier representatives should be constantly aware of Vanderbilt’s image and reputation with
the supplier community and always act in a manner that is fair, courteous and consistent with
university policy.
Vanderbilt University is committed to fair and ethical business practices that encourages
competition and enhances our supplier relationships. A cornerstone of this policy is maintaining the
confidentiality of all supplier proposals, quotations, prices, contracts and other proprietary materials
by all Vanderbilt University employees. Confidential materials are not to be disclosed in any way to
other suppliers, outside organizations or to any unauthorized persons, nor as a private university,
are we in anyway obligated to do so. Disclosure of confidential materials is not only professionally
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unethical and damaging to Vanderbilt's negotiations with suppliers, it also exposes Vanderbilt to
possible legal action. If you have questions about any request to provide information concerning
Vanderbilt contracts, pricing, supplier proposals or other internal information, please contact
Procurement Services, Medical Supply Sourcing or the General Counsel’s office for guidance.
2.3 False Claims Act Policy
Notice Regarding Compliance with False Claims Acts
Vanderbilt requires all of its employees and contractors/suppliers to report any known or suspected
violation of the Federal False Claims Act or the Tennessee False Claims Act (collectively referred to
as the "FCA").
A person violates the FCA by: knowingly submitting, or causing another to submit, false claims for
payment of government funds.
For example, submitting a claim to Medicare for payment for services that were not rendered is a
violation of the FCA.
Any company doing business with Vanderbilt that becomes aware of, or has reason to believe that, a
FCA violation has occurred at Vanderbilt is expected to report this information to the Vanderbilt
University Medical Center Compliance Office by calling 615-343-2777 or using the confidential Help
Line at 615-343-0135. Known or suspected violations of the FCA may also be reported directly to the
federal government. Vanderbilt prohibits retaliation for good faith reports of suspected violations of
the FCA and will take no adverse action against any person or company for making such reports.
False Claims Act
2.4 Ethics
The following Code of Ethics has been formulated by the National Association of Educational
Purchasers (NAEP) and is practiced by Procurement Services:
• Give first consideration to the objectives and policies of my institution.
• Strive to obtain the maximum value for each dollar of expenditure.
• Decline promotional gifts of more than nominal value in compliance with university
policy
• Grant all competitive suppliers equal consideration insofar as state or federal
statute and institutional policy permit.
• Conduct business with potential suppliers in an atmosphere of good faith, devoid
of intentional misrepresentation.
• Demand honesty in sales representation whether offered through the medium of a
verbal or written statement, an advertisement, or a sample of the product.
• Receive consent of originator of proprietary ideas and designs before using them
for competitive purchasing purposes.
• Make every reasonable effort to negotiate an equitable and mutually agreeable
settlement of any controversy with a supplier; and/or be willing to submit any
major controversies to arbitration or other third party review, insofar as the
established policies of my institution permit.
• Accord a prompt and courteous reception insofar as conditions permit to all who
call on legitimate business missions.
• Cooperate with trade, industrial and professional associations, and with
governmental and private agencies for the purposes of promoting and developing
sound business methods.
• Foster fair, ethical and legal trade practices.
• Counsel and co-operate with NAEP members and promote a spirit of unity and a
keen interest in professional growth among them.
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2.5 Conflicts of Interest
Vanderbilt as a general rule does not enter into purchasing contracts with students, faculty, staff,
or members of their immediate families. The university’s Conflict of Interest Policy Article II,
Section B Business Relationships, governs the conduct of staff relative to business relationships.http://vanderbilt.edu/compliance/includes/COIPolicy82412.docx
2.6 Gifts and Gratuities
The university’s Conflict of Interest Policy addresses Gifts and Gratuities in Article II, Section C for the
university and Vanderbilt University Medical Center.
Gifts from the Health Care Industry - NO GIFTS, of any amount, may be accepted by individuals
from suppliers of pharmaceuticals, medical equipment and devices, or medical service suppliers
(hereafter referred to as the Health Care Industry) or their agents. This includes, but is not limited to,
companies currently engaged in or proposing to do business with Vanderbilt, a list of which is provided
here:http://vanderbilt.edu/compliance/vendors.php
2.7 Personal Purchases
Because of the tax-exempt status of Vanderbilt University, Procurement Services cannot issue
purchase orders for personal purchases.
Suppliers are under no obligation to offer discounts to university employees. If they choose to do
so their offer does not obligate the university to do business with them in the future.
University employees should refrain from having personal packages shipped to their business
address as it places unnecessary burdens on receiving personnel.
The Human Resources department manages a separate program offering discounts to employees
as a benefit program of the university. Procurement Services has no involvement in the
formulation of those discounts nor is the university to be considered a party to any transactions
resulting from the offer of such discounts. Those transactions of a personal nature are taxable.
3.0 Purchasing Processes
3.1 Purchasing Methods Matrix
The purchase of products and services at Vanderbilt University is accomplished through a variety
of different procedures. These procedures are designed to address the great differences in
complexity, value, risk and transaction volumes associated with our purchases. The advent of the
internet and electronic commerce technologies makes it possible for our departments to shop and
order their most commonly purchased products online, greatly reducing the entire process cycle
time. The introduction of the Procurement Card, (Pcard) has made purchasing from retailers and
local suppliers more efficient. The list below describes the current purchasing methods:
1. eProcurement – Vanderbilt’s electronic shopping and purchasing system for
most products up to $25,000. Shop from a choice of: hosted Vanderbilt eCatalog,
Vanderbilt-specific supplier online stores or send manually created form orders to
over 2,500 approved suppliers.
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2. Purchase Order (Requisitions) – Paper forms used to purchase all complex
purchases that meet the following requirements:
• Products and services from suppliers not in eProcurement or over $25,000
• Capital equipment over $5,000
• Professional Services
3. PMM (Pathways Material Management) Purchase Orders – Clinical enterprise
ERP system used to order inventoried medical / surgical supplies
3. Procurement Card (Pcard) – university credit card to be used for low-dollar,
discretionary transactions with local retailers, internet companies and travel
related services. Pcards cannot be used to purchase medical / surgical supplies.
Purchase
Transaction
Method
Primary
Transaction
Types
Limits Comments Purchase Order
Number Formats
Purchase Order
Requisition “A”
REQ
High dollar complex
purchases, leases,
restricted materials,
services, blanket
orders
Limits are
determined by
department and
university policies
For suppliers not in
eProcurement and
transactions over
$25,000
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
Purchase Order
Requisition “C”
REQ
Capital equipment
>$5,000
Specific policies for
VUMC and SOM
See specific policies
for Capital
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
Purchase Order
Requisition “S”
REQ
Independent
Contractor / External
Consultant services
Must be used for all
Consultant
contracts
See specific policies
for Consultants
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
eProcurement High volume
products, supplies
and services
Approved suppliers
in eProcurement
system. Orders
Procurement Policies and Procedures for Departments
1.0 Procurement Policy .......................................................................................................... 4
1.1 Procurement Mission and Objectives ...................................................................... 4
1.2 Authority For Procurement....................................................................................... 5
1.3 Procurement Services Organization ........................................................................ 5
1.4 Procurement Functions............................................................................................ 7
1.5 Issuing Office for Vanderbilt University .................................................................... 8
2.0 University Polici es and Business Ethics ........................................................................ 9
2.1 Delegation of Authorization Policy (Contract approval & signatures) ...................... 9
2.2 Confidentiality Policy and Public Relations.............................................................. 9
2.3 False Claims Act Policy ......................................................................................... 10
2.4 Ethics ..................................................................................................................... 10
2.5 Conflicts of Interest ................................................................................................ 11
2.6 Gifts and Gratuities ................................................................................................ 11
2.7 Personal Purchases ............................................................................................... 11
3.0 Purchasing Processes ................................................................................................... 11
3.1 Purchasing Methods Matrix ................................................................................... 11
3.2 eProcurement ........................................................................................................ 13
3.3 Requisitions and Purchase Orders ........................................................................ 13
3.4 PMM Purchase Orders .......................................................................................... 14
3.5 Purchase Credit Card (Pcard) ............................................................................... 14
3.6 Small Purchase Order (SPO) (discontinued 1/1/2012) ......................................... 14
3.7 Purchase Order Changes ...................................................................................... 15
3.8 Acknowledgements ................................................................................................ 15
3.9 Purchase Order Terms and Conditions ................................................................. 15
3.10 Insurance Requirements........................................................................................ 15
3.11 Sales Tax Exemptions and Vanderbilt classification numbers .............................. 16
4.0 Receiving Process .......................................................................................................... 16
4.1 Receiving ............................................................................................................... 17
4.2 Inspecting .............................................................................................................. 17
4.3 Testing ................................................................................................................... 19
4.4 Acceptance ............................................................................................................ 19
4.5 Product Returns for Credit/Refund ........................................................................ 19
4.6 Accepting or Rejecting Services ............................................................................ 20
5.0 Purchase Order Types .................................................................................................... 21
5.1 Service Agreement Orders ................................................................................... 21
5.2 Blanket Orders ....................................................................................................... 21
5.3 Emergency Orders ................................................................................................. 22
5.5 Procedures for Negotiating & Processing Leases ................................................. 23
6.0 Contracting Process ....................................................................................................... 24
6.1 Standard Contract Templates ................................................................................ 25
7.0 Capital Equipment Purchases ....................................................................................... 26
7.1 Capital Equipment ................................................................................................. 26
7.2 Capital Equipment Requisition Process ................................................................ 26
7.3 Capital Equipment Cost ......................................................................................... 28
7.4 Enhancements ....................................................................................................... 28
7.5 Computer Purchases ............................................................................................. 28
7.6 Conditions of Acceptance ...................................................................................... 29
7.7 Equipment Repairs and Upgrades ........................................................................ 29
7.8 No Charge Equipment Agreements ....................................................................... 29
7.9 Equipment Evaluation Agreements ....................................................................... 30
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7.10 Used Equipment Purchases .................................................................................. 30
7.11 Equipment Rentals ................................................................................................ 31
8.0 Competitive Sourcing ..................................................................................................... 32
8.1 Solicitation of Proposals and Quotations ............................................................... 32
8.2 Purchasing from Approved Suppliers / Gold Guide ............................................... 32
8.3 Competitive Sourcing Methods .............................................................................. 33
8.4 RFP Process Guidelines........................................................................................ 34
8.5 Revisions to the Request for Proposal .................................................................. 35
8.6 Ownership of Materials .......................................................................................... 35
8.7 Withdrawing Proposals .......................................................................................... 35
8.8 Confidentiality of Proposals ................................................................................... 35
8.9 Late or Unsolicited Proposals ................................................................................ 35
8.10 Errors in Proposals / Right to Reject Proposals .................................................... 36
8.11 Supplier Protest Resolution process ..................................................................... 36
8.12 Proposal Request Checklist .................................................................................. 36
8.13 Exceptions to Competitive Sourcing ...................................................................... 37
8.14 Non-Competitive (Sole Source) Procurement ....................................................... 38
8.15 Supplier Diversity & Small Business Program ....................................................... 38
8.16 Green Purchasing Program ................................................................................... 39
8.17 Purchase Order Terms and Conditions ................................................................. 40
8.18 General Supplier Policies and Procedures ............................................................ 41
9.0 VUMC Clinical Enterprise Sourcing .............................................................................. 41
9.1 Clinical Sourcing Policy (MEOC) ........................................................................... 41
9.2 Clinical Enterprise Contract Guidelines ................................................................. 41
9.3 Authorization to Requisition / Purchase Supplies, Services and Capital .............. 42
9.4 HIPAA Business Associate Agreements ............................................................... 43
9.5 VUMC Vendor Liaison Program ............................................................................ 44
9.6 VUMC Supplier-furnished Training ........................................................................ 44
10.0 Surplus Property ............................................................................................................. 44
10.1 Surplus Property Policy ......................................................................................... 44
10.2 Surplus Property Procedures ................................................................................ 45
10.2 VUMC Storage and Services Surplus Equipment Store ....................................... 46
11.0 Financial / Payment Information .................................................................................... 47
11.1 Account/Center Numbers ...................................................................................... 47
11.2 Payment Terms ..................................................................................................... 47
11.3 Invoice Approval .................................................................................................... 47
11.4 Cancellation of Encumbrances .............................................................................. 48
11.5 Demand Check Requests ...................................................................................... 48
11.6 Year End Closing Procedures ............................................................................... 48
11.7 Procurement Activity Reports ................................................................................ 49
11.8 Departmental Routing Codes (DRC) ..................................................................... 49
12.0 Speci alized Purchases ................................................................................................... 50
12.1 Internal Vanderbilt Requisitions ............................................................................. 50
12.2 University Business Operations ............................................................................. 50
12.3 Material Purchases for Capital Construction Projects ........................................... 50
12.4 Contracts for Facility Renovations or Modifications .............................................. 51
12.5 External Consultants and Independent Contractors .............................................. 51
12.6 Forms ..................................................................................................................... 51
12.7 Facility Rentals and Leases ................................................................................... 52
12.8 Performing Artist / Guest Speaker Contracts ........................................................ 52
12.9 Research Animal Purchases ................................................................................. 52
12.10 Controlled Substances........................................................................................... 52
12.11 Radioactive Materials ............................................................................................ 53
13.0 Vehicle Acquisition & Li censing Process .................................................................... 53
13.1 Vehicle Purchases ................................................................................................. 53
13.2 Vehicle Leases / Long Term Rentals ..................................................................... 53
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13.3 Vehicle License Renewals ..................................................................................... 53
13.4 Emissions Testing .................................................................................................. 54
13.5 Traffic and Parking Violations ................................................................................ 54
14.0 International Shipments & Customs Brokers .............................................................. 54
14.1 What is a Customs Broker? ................................................................................... 54
14.2 Why Use a Customs Broker? ................................................................................ 54
14.3 When to use a Customs Broker ............................................................................. 55
14.4 Approved Customs Brokers ................................................................................... 56
14.5 Standard Customs Documentation ........................................................................ 58
15.0 Travel Program ................................................................................................................ 59
15.1 Travel Policy .......................................................................................................... 59
15.2 Travel ..................................................................................................................... 59
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1.0 Procurement Policy
In accordance with the policies authorized by the Board of Trust of Vanderbilt University and the
Chancellor, all purchases, irrespective of sources of funds, will be governed by the following policy:
It shall be the procurement policy of the university to obtain all supplies, equipment and services at the
lowest cost to the university that meet or exceed the customer’s specifications for performance, quality and
availability at the time of purchase. In conforming to this policy, the capability, capacity and historical
performance of the supplier will be considered and weighed in the decision process. Sourcing decisions
will also be tempered by supplier diversity and environmental impact considerations. Competitive bids will
be solicited whenever possible and practical and in compliance with all applicable federal regulations and
university policies.
1.1 Procurement Mission and Objectives
The responsibility for the purchase of all products, supplies, furniture, equipment, vehicles and services at
Vanderbilt University is divided between two organizations: Procurement Services and Medical Suppl y
Sourcing. Although reporting to different organizations and assigned different responsibilities, all core
systems, methods, policies and procedures remain common. For the purposes of this policy and
procedures manual, the term “Procurement” will include both Procurement Services (university central)
and Medical Supply Sourcing (Vanderbilt University Medical Center and Clinics) unless specifically noted
otherwise.
Procurement is responsible for overseeing the commercial relationships between Vanderbilt University and
its suppliers and insuring that all aspects of our relationships are held to the highest ethical and
professional standards. Our suppliers contribute significantly to the ongoing success of Vanderbilt
University and Procurement in turn actively supports our suppliers and helps them achieve their
objectives. The Supplier Diversity program, which promotes commerce with small, disadvantaged and
diversity owned businesses, is one example of this support.
Procurement’s mission is to cooperatively develop and execute sourcing strategies with Vanderbilt
University departments for products and services that meet or exceed university requirements, and to
perform these services to the highest ethical and professional standards. Procurement Services:
• Provides leadership through contract negotiation, supplier management and conversion to
modern eCommerce purchasing technologies
• Promotes small, disadvantaged and minority-owned businesses through the Small Business
and Diversity Supplier program
• Supports the university’s commitment to environmental responsibility
• Supports the university’s commitment to outreach to the local business community
• Assists departments involved in federal contracts and grants in maintaining compliance to all
applicable regulations
• Assists departments in maintaining compliance to all university policies regarding
contracting and purchasing.
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1.2 Authority For Procurement
Procurement Services is a department in Finance and reports to the Associate Vice Chancellor for
Finance for the university. The Vice Chancellor for Finance and Chief Financial Officer (CFO) of the
university has delegated specific responsibilities for the administration of procurement policies and
procedures to the Director of Procurement Services.
The authority to make purchases from allocated departmental budgets for services or materials is
delegated to Procurement Services by the signature of the departmental administrator on the Purchase
Requisition. Approval to spend budgeted funds may be subject to prior approval of Contract and Grant
Accounting or Finance. Purchases on restricted center numbers must be authorized by the Principal
Investigator and reviewed and approved by Finance (VUMC) or Contract and Grant Accounting (university
central) before being processed by Procurement Services.
Medical Suppl y Sourcing is a department of the Medical Supply Chain organization which reports to the
Chief Supply Chain Officer for the Vanderbilt University Medical Center. The Vice Chancellor for Finance
and Chief Financial Officer (CFO) has delegated specific authority to Medical Supply Sourcing for the
administration of procurement policies and procedures related to the purchase of clinical patient supplies,
clinical patient services and medical equipment for the Clinical Enterprise.
Since these purchasing responsibilities are centralized in Medical Supply Sourcing, departments should
not be independently negotiating or signing supplier contracts without consulting Medical Supply Sourcing.
The authority to make purchases from allotted departmental budgets for services or products is delegated
to Medical Supply Sourcing by the signature of the departmental administrator on the Purchase
Requisition. Approval to spend budgeted funds may be subject to prior approval based on the scope of the
purchase. All purchase requests are required to follow the established procedure for introduction of new
products, technology or services established through the Medical Economics Outcome Committee
(MEOC) when appropriate.
Procurement Services and Medical Supply Sourcing have the delegated authority and responsibility to:
• Manage the assessment and selection process for all Approved Suppliers
• Negotiate terms and conditions for supply contracts, service agreements and capital
equipment
• Review, award and sign contracts for the purchase of products and services
• Review, award and sign equipment and vehicle leases
• Execute all purchase orders, regardless of format or process
• Conduct bids for general use products and services, as well as support department-specific
sourcing projects
• Manage the ongoing business relationship with key suppliers
1.3 Procurement Services Organization
Procurement Services
Procurement Services is the primary organization responsible for the purchase of all general supplies,
furniture, equipment, vehicles and services for the university central campus and School of Medicine
research laboratories.
All Vanderbilt University Medical Center non-clinical product and service contracts, general maintenance,
repair and operations supplies (MRO) and facility maintenance service contracts are also managed by
Procurement Services. The following products and services are managed by Procurement Services:
• Capital Equipment purchases / leases and service contracts (non-clinical)
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• Consultants, Contractors and Professional Services (non-construction related)
• Forms and Printing services
• Furniture and interior design services
• Information Technology hardware and software
• Research laboratory equipment and services
• Research laboratory supplies
• Logistics services
• Maintenance / Repair / Operations (MRO) supplies and services
• Office supplies
• Office equipment (copiers, fax machines, printers)
• Telecommunications products and services
• Travel services and university event contracts
• Vehicles and transportation services
• Waste management, recycling services
Procurement Services office
110 21
st
Avenue South
Suite 1110, Baker Building
Nashville, TN 37203-2406
Phone: 615.322.2911
Fax: 615.343.6468
Procurement Services organization chart and contact list is at: Procurement Contacts List
Procurement Sourcing Personnel Assignments
Both Procurement Services and Medical Supply Sourcing departments use the same structure for
managing contracts, commodities, suppliers and purchase order processing. There are three distinct
personnel assignment classifications:
• Sourcing Officers – Sourcing Officers are responsible for managing all Requests for Proposal
(RFP) projects, contract negotiations and key supplier contracts. They work closely with the
Purchasing Agents to insure suppliers comply with our policies, procedures and contracts.
Sourcing Officers also have delegated authority to sign contracts within specific limits.
• Purchasing Agents – Purchasing Agents are assigned by commodity or to specific groups of
departments. Agents process all purchase order requisitions and manage all delivery, quality and
price issues with suppliers. Agents also negotiate prices, terms and conditions with non-contract
suppliers for spot purchases and assist departments in finding suppliers for non-contract
purchases. Agents have delegated authority to sign purchase orders within specific limits.
• Admini strative Assistants – These Procurement team members perform a vast array of tasks
including the preparation work on incoming requisitions, requisition quality audits, SPO
processing, PO requisition data entry and document imaging.
Website
The Procurement Services website contains comprehensive information about Procurement Services
operations including approved suppliers, contract programs, organizational structure, Procurement
personnel contact information, commodity support assignments and information for suppliers. The website
address is:http://www.vanderbilt.edu/procurement/
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Medical Suppl y Sourcing
The Medical Supply Sourcing department is a functional organization reporting to the Chief Supply Chain
Officer for Vanderbilt University Medical Center. Medical Supply Sourcing purchases all clinical patient
supplies, medical and surgical supplies, clinical capital equipment and all related clinical services for
Vanderbilt University Medical Center and clinics. The following products and services are managed by
Medical Supply Sourcing:
• Ambulance services
• Clinical patient supplies
• Clinical gases
• Clinical distribution services
• Clinical capital equipment purchases / leases & equipment services
• Clinical engineering services
• Environmental services
• GPO contract management
• Hospital nutrition, cafeteria and retail services
• Laser services
• Life Flight operations support
• Linen services
• Medical & bio-hazardous waste
• Medical & surgical supplies
• Medical laboratory supplies
• Transcription services
The Supplier Liaison Office reports to Medical Supply Sourcing and resides in the Medical Supply
Sourcing office located in The Vanderbilt Clinic (TVC-706).
Although the Medical Supply Chain is a functional organization within VUMC, all core systems, methods,
policies and procedures are common between Medical Supply Sourcing and Procurement Services. These
common systems and methods include the existing purchase requisition process, eProcurement, the
Pcard program and invoice processing by Disbursement Services.
Medical Suppl y Sourcing office
Vanderbilt University Medical Center
B706B TVC
Nashville, TN 37232-5672
Phone: 615.322.5654
Fax: 615.343.4405
Website
The Medical Supply Sourcing website address is organization and contact list is at: Medical Supply Chain
1.4 Procurement Functions
While the services performed by Procurement vary according to the individual needs of the university
departments, the following is a partial list of services and responsibilities assigned to Procurement:
• Review, process and issue Purchase Orders (PO)
• Prepare and issue PO change orders
• Reconcile PO invoice discrepancies
• Prepare and issue Requests For Proposals (RFP)
• Determine optimal ordering method to meet requirements at lowest possible cost
• Support the deployment and use of the Purchase Card (Pcard) program
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• Analyze quotations and proposals
• Evaluate and select suppliers
• Evaluate performance of suppliers and related competencies / training requirements
• Manage general use supplier programs for the entire university (office supplies, etc.)
• Negotiate and review contracts
• Terminate contracts
• Maintain VandyConTracs contract management system
• Participate in development of customer project specifications and standards
• Negotiate and execute equipment leases and rentals for the central campus and School of
Medicine
• Conduct training sessions for Procurement programs and systems
• Identify cost reduction opportunities including:
o off-contract spending
o tier maximization
o product and process standardization
• Conduct market trend studies
• Conduct price/cost analyses
• Participate in shared/group purchasing and manage GPO relationships
• Schedule purchases and deliveries
• Determine modes of transportation and carriers
• Negotiate adjustments with suppliers
• Administer PeopleSoft APPO system
• Administer eProcurement system
• Assist in audits and reviews
• Represent Vanderbilt University at trade shows and educational procurement conferences
1.5 Issuing Office for Vanderbilt University
Procurement Services / Medical Supply Sourcing shall be the point of origin at Vanderbilt
University for all information pertaining to on-going and future general purchasing contracts,
processes and policies. Procurement Services / Medical Supply Sourcing should issue all
Requests for Proposals, contract documents, purchase orders and purchase order changes, and
correspondence relating to any of the above documents or projects. This policy is designed to
accomplish several goals:
• The RFP documents will be uniform in their organization and content, complete with terms
and conditions of the solicitation to which suppliers must agree before returning their
offers.
• The use of a standardized RFP process improves the quality of supplier proposals
received and makes the evaluation process more competitive and comprehensive.
• Procurement Services is the centralized clearinghouse for responding to supplier and
public questions, inquiries regarding specific projects or general questions concerning
procurement activities at the university. Medical Supply Sourcing performs this same
function for VUMC.
• Campus Planning & Construction and VUMC Space & Facilities Planning have special
delegated authority to negotiate and manage all contracts with architects, construction
contractors and consulting engineers. Both department also issue purchase orders for
capital construction projects.
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2.0 Uni versity Policies and Business Ethics
2.1 Delegation of Authorizati on Policy (Contract approval & signatures)
The Delegation of Authority Policy outlines who may approve and sign contracts, legally binding
agreements, business ventures and other agreements with external parties that obligate the
university (including memoranda of understanding).
The policy is comprised of three sections: The narrative serves as an introduction to the policy and
offers guidance on how to use it. Exhibit 1 contains specific items requiring the approval of the
Board of Trust. Exhibit 2 reflects the Chancellor's delegation of specific approval and signature
authority for contracts and agreements. Those to whom the Chancellor has delegated specific
authority are permitted to further delegate authority to others (referred to as "sub-delegates").
How to use this policy:
To determine who may sign a contract or agreement, first locate which section and/or sub-section
in the policy best describes the agreement. Each section contains a list of approvers and a signer.
Before the contract or agreement may be executed, all approvals must be granted in writing. With
the appropriate approvals, the authorized signer may execute the agreement.
This policy is located at: Delegation of Authority Policy
The Delegation of Authority Sub-Delegations document identifies those to whom the Chancellor´s
delegates have sub-delegated authority for approval and signature on various types of contracts
and agreements
Delegation of Authority Sub-Delegations Matrix
Unless specifically named in the policy, department staff do not have the authority to enter into
and sign contracts with suppliers.
NOTE: Contract signature authority is not the same as requisition signature authority.
Departments have delegated authority to commit budget dollars for specific centers. The Privilege
Management System Signature Authority lists individual’s spending limits by center.
Privilege Management
See Section 5.0 Contracting Process for information on how to route contracts for review or
request assistance in drafting contracts.
2.2 Confidentiality Policy and Public Relations
Procurement Services maintains regular contact with many individuals and companies seeking to
initiate or expand business relations with the university. University employees who come in contact
with supplier representatives should be constantly aware of Vanderbilt’s image and reputation with
the supplier community and always act in a manner that is fair, courteous and consistent with
university policy.
Vanderbilt University is committed to fair and ethical business practices that encourages
competition and enhances our supplier relationships. A cornerstone of this policy is maintaining the
confidentiality of all supplier proposals, quotations, prices, contracts and other proprietary materials
by all Vanderbilt University employees. Confidential materials are not to be disclosed in any way to
other suppliers, outside organizations or to any unauthorized persons, nor as a private university,
are we in anyway obligated to do so. Disclosure of confidential materials is not only professionally
Department Procurement Policies & Procedures_v11.docx Page 10 of 59 4/19/2013
unethical and damaging to Vanderbilt's negotiations with suppliers, it also exposes Vanderbilt to
possible legal action. If you have questions about any request to provide information concerning
Vanderbilt contracts, pricing, supplier proposals or other internal information, please contact
Procurement Services, Medical Supply Sourcing or the General Counsel’s office for guidance.
2.3 False Claims Act Policy
Notice Regarding Compliance with False Claims Acts
Vanderbilt requires all of its employees and contractors/suppliers to report any known or suspected
violation of the Federal False Claims Act or the Tennessee False Claims Act (collectively referred to
as the "FCA").
A person violates the FCA by: knowingly submitting, or causing another to submit, false claims for
payment of government funds.
For example, submitting a claim to Medicare for payment for services that were not rendered is a
violation of the FCA.
Any company doing business with Vanderbilt that becomes aware of, or has reason to believe that, a
FCA violation has occurred at Vanderbilt is expected to report this information to the Vanderbilt
University Medical Center Compliance Office by calling 615-343-2777 or using the confidential Help
Line at 615-343-0135. Known or suspected violations of the FCA may also be reported directly to the
federal government. Vanderbilt prohibits retaliation for good faith reports of suspected violations of
the FCA and will take no adverse action against any person or company for making such reports.
False Claims Act
2.4 Ethics
The following Code of Ethics has been formulated by the National Association of Educational
Purchasers (NAEP) and is practiced by Procurement Services:
• Give first consideration to the objectives and policies of my institution.
• Strive to obtain the maximum value for each dollar of expenditure.
• Decline promotional gifts of more than nominal value in compliance with university
policy
• Grant all competitive suppliers equal consideration insofar as state or federal
statute and institutional policy permit.
• Conduct business with potential suppliers in an atmosphere of good faith, devoid
of intentional misrepresentation.
• Demand honesty in sales representation whether offered through the medium of a
verbal or written statement, an advertisement, or a sample of the product.
• Receive consent of originator of proprietary ideas and designs before using them
for competitive purchasing purposes.
• Make every reasonable effort to negotiate an equitable and mutually agreeable
settlement of any controversy with a supplier; and/or be willing to submit any
major controversies to arbitration or other third party review, insofar as the
established policies of my institution permit.
• Accord a prompt and courteous reception insofar as conditions permit to all who
call on legitimate business missions.
• Cooperate with trade, industrial and professional associations, and with
governmental and private agencies for the purposes of promoting and developing
sound business methods.
• Foster fair, ethical and legal trade practices.
• Counsel and co-operate with NAEP members and promote a spirit of unity and a
keen interest in professional growth among them.
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2.5 Conflicts of Interest
Vanderbilt as a general rule does not enter into purchasing contracts with students, faculty, staff,
or members of their immediate families. The university’s Conflict of Interest Policy Article II,
Section B Business Relationships, governs the conduct of staff relative to business relationships.http://vanderbilt.edu/compliance/includes/COIPolicy82412.docx
2.6 Gifts and Gratuities
The university’s Conflict of Interest Policy addresses Gifts and Gratuities in Article II, Section C for the
university and Vanderbilt University Medical Center.
Gifts from the Health Care Industry - NO GIFTS, of any amount, may be accepted by individuals
from suppliers of pharmaceuticals, medical equipment and devices, or medical service suppliers
(hereafter referred to as the Health Care Industry) or their agents. This includes, but is not limited to,
companies currently engaged in or proposing to do business with Vanderbilt, a list of which is provided
here:http://vanderbilt.edu/compliance/vendors.php
2.7 Personal Purchases
Because of the tax-exempt status of Vanderbilt University, Procurement Services cannot issue
purchase orders for personal purchases.
Suppliers are under no obligation to offer discounts to university employees. If they choose to do
so their offer does not obligate the university to do business with them in the future.
University employees should refrain from having personal packages shipped to their business
address as it places unnecessary burdens on receiving personnel.
The Human Resources department manages a separate program offering discounts to employees
as a benefit program of the university. Procurement Services has no involvement in the
formulation of those discounts nor is the university to be considered a party to any transactions
resulting from the offer of such discounts. Those transactions of a personal nature are taxable.
3.0 Purchasing Processes
3.1 Purchasing Methods Matrix
The purchase of products and services at Vanderbilt University is accomplished through a variety
of different procedures. These procedures are designed to address the great differences in
complexity, value, risk and transaction volumes associated with our purchases. The advent of the
internet and electronic commerce technologies makes it possible for our departments to shop and
order their most commonly purchased products online, greatly reducing the entire process cycle
time. The introduction of the Procurement Card, (Pcard) has made purchasing from retailers and
local suppliers more efficient. The list below describes the current purchasing methods:
1. eProcurement – Vanderbilt’s electronic shopping and purchasing system for
most products up to $25,000. Shop from a choice of: hosted Vanderbilt eCatalog,
Vanderbilt-specific supplier online stores or send manually created form orders to
over 2,500 approved suppliers.
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2. Purchase Order (Requisitions) – Paper forms used to purchase all complex
purchases that meet the following requirements:
• Products and services from suppliers not in eProcurement or over $25,000
• Capital equipment over $5,000
• Professional Services
3. PMM (Pathways Material Management) Purchase Orders – Clinical enterprise
ERP system used to order inventoried medical / surgical supplies
3. Procurement Card (Pcard) – university credit card to be used for low-dollar,
discretionary transactions with local retailers, internet companies and travel
related services. Pcards cannot be used to purchase medical / surgical supplies.
Purchase
Transaction
Method
Primary
Transaction
Types
Limits Comments Purchase Order
Number Formats
Purchase Order
Requisition “A”
REQ
High dollar complex
purchases, leases,
restricted materials,
services, blanket
orders
Limits are
determined by
department and
university policies
For suppliers not in
eProcurement and
transactions over
$25,000
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
Purchase Order
Requisition “C”
REQ
Capital equipment
>$5,000
Specific policies for
VUMC and SOM
See specific policies
for Capital
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
Purchase Order
Requisition “S”
REQ
Independent
Contractor / External
Consultant services
Must be used for all
Consultant
contracts
See specific policies
for Consultants
10 digit PO number
50ZZXXXXXX
“ZZ” is the fiscal
year
eProcurement High volume
products, supplies
and services
Approved suppliers
in eProcurement
system. Orders