Purchasing Policy and Procedure
in the manuals are defined as follows:
ABOR - The Arizona Board of Regents.
ADVANTAGE - College and University Financial System.
AGREEMENT - Written Contract.
BID - A firm offer from a vendor to provide goods and/or services
meeting specific requirements in response to a request for
quotation issued by the University.
SPECIFICATIONS - See "SPECIFICATIONS."
ORDER - A
contract for a specified period between the University and
a vendor to furnish the commodities specified in the order
on a periodic release basis and, generally, at predetermined
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.
OUT - Make
full payment on an installment contract before the end of
the contract period.
The total process of requesting multiple vendors to provide
price quotations on an item or service.
SEALED BID - A formal bid submitted by a vendor in a sealed envelope
that is to be opened publicly in front of witnesses at a designated
place, time, and date.
CONTRACT - A contract entered into by a group of agencies or institutions
that act as one agency for the benefit of all the institutions
CONTRACT - See "CONSORTIUM CONTRACT."
PURCHASE ORDER (PD) - A purchase order available to departments for purchases
up to $5000.
EMERGENCY - A situation that endangers lives, property, or the continuation
of vital programs and that requires immediate, on-the-spot
procurement of equipment, materials, supplies, or services.
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.
SEALED BID - See "SEALED BID."
OUT CLAUSE -
A clause in an installment or other multi-year contract that
allows the University to terminate a contract without penalty
if funds are not appropriated for the purpose stated in the
GSA - The General Services Administration of the federal government.
PO3 - Interdepartmental Purchase Order.
INDEMNIFY - Hold the other party to a contract harmless from penalty.
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.
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.)
An accounting transaction which transfers funds from the buying
departments account to the selling departments
PURCHASE ORDER - A request submitted by a department that authorize an on-campus
servicing department to charge the requesting department for
goods or services. The request is made using a PO3. An interdepartmental
purchase order creates an encumbrance transaction.
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
usually remains with the lessor until the lessee exercises
the option to purchase.
INFORMALITY - A minor deviation from the proscribed form that, when corrected,
is not prejudicial to other bidders nor does it harm the University
in any way.
A bidder whose bid or proposal fails to conform in all material
respects to the solicitation.
PROCESSING TIME - The time required from receipt of a properly prepared purchase
requisition by the Purchasing Office 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 and those that require competitive
bidding, the processing time is generally 10 - 28 working
days. Requests for Proposal take 8-10 weeks.
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
PC - Commodity purchase order issued by Purchasing Services.
PD - Departmental purchase order
PO3 - On-line Interdepartmental Purchase Order.
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 vendor to provide goods and/or services
falling within general guidelines enumerated in a request
for proposal issued by the University.
INFORMATION - Information that is submitted by a vendor who claims exclusive
ownership of that information and that is not to be disclosed
INFORMATION - All information in Purchasing Services files, except proprietary
information, having bearing on the award of an order or contract.
ORDER - An
order issued by Purchasing Services (PC) or issued by a University
department (PD), using the University's standard Purchase
Order form, for the procurement of goods and/or services that,
when accepted by the vendor, becomes a contract.
RC - On-line receiving report document.
Department's acceptance of goods/services.
PROPERTY - Land and permanently affixed buildings and improvements.
FOR PROPOSAL (RFP) - A written document, issued by Purchasing 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,
or for purchases where price is not the only basis for evaluation.
FOR QUOTATION - A written document, issued by Purchasing Services, requesting
bids on a specified item or service.
REQUISITION - Purchase request which creates a pre-encumbrance transaction.
BIDDER OR PROPOSER - A bidder or proposer who has the capability, experience,
integrity, and reliability that will ensure good faith performance
and appropriate quality of the goods or services provided.
BIDDER OR PROPOSER - A bidder or proposer who conforms in all material respects
to the Request for Quotation or request for proposal.
RX - On-line requisition.
TAX - A tax
imposed on the vendor for the privilege of doing business
in Arizona that is passed on to the buyer.
SERVICES - The furnishing of labor, time, or effort that does not involve
the delivery of a specific end product other than required
reports and performance.
Funds that are designated for the purchase of items from a
particular vendor or group of vendors and for which other
vendors cannot compete.
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.
BUSINESS (ARIZONA) - (Arizona Revised Statutes §631 (1982 & West Supp. 1987))
A business that is independently owned and operated, is not
dominant in the 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.
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
DISADVANTAGED BUSINESS - Any small business that is at least 51 percent owned by
one or more socially and economically disadvantaged individuals
or by a woman or women; 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.
PERSON - An individual who is both socially and economically disadvantaged.
Such an individual is normally considered to be a minority.
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).
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
among other things, the assets and net worth of such socially
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 - A request for proposal, or any other request for prices,
including all specifications, plans, and other supporting
SPECIFICATIONS - Descriptive
information used to procure specific goods or services that
may include performance requirements, physical characteristics,
packaging requirements, and operating parameters of goods.
PURCHASING OFFICE - The office responsible for administering the State of Arizona
LIST - A
list submitted by a general or prime contractor indicating
those subcontractors who will perform specified portions of
PROCUREMENT CODE - Policy adopted by the Arizona Board of Regents in compliance
with Arizona Revised Statues §41-2501. This statute requires
the Board of Regents to adopt rules prescribing procurement
policies and procedures that are substantially equivalent
to the policies and procedures prescribed in Arizona Revised
Statutes §41-2501 (D) and (E).
TAX - A tax
imposed on the purchaser for purchases made from out-of-state
suppliers who are not registered with the State of Arizona
to collect sales tax.
VENDOR - An individual or firm outside the University that sells
goods or services.