I. INTRODUCTION.. 2

II. POLICY.. 3

A. Competitive Fairness –. 3

B. Absence of Personal Interest/Conflict of Interest –. 3

C. Vendor Selection & Cost/Price Analysis –. 4

D. Allowability, Allocability and Reasonableness Assessment –. 4

E. Lease Purchase Analysis –. 4

F. Competitive Bids –. 4

G. Contractual/Legal Agreements –. 5

H. Equipment, Furniture & Vehicles –. 6

I. Capital Projects –. 6

J. Purchasing Card Program –. 6

K. Group Purchasing Consortiums –. 6

L. Product and Service Standards –. 7

M. Internet Auction Sites –. 7

III. STANDARD PURCHASING PROCEDURES – OUTLINE.. 8

A. Purchases less than $2,500 or of Exempt Goods and Services – Do NOT require a Purchase Order. 8

B. Purchases of $2,500 or more, and Purchases of Hazardous Materials, Controlled Substances, Animal Research Materials – Require a Purchase Order. 10

C. Purchase of Office Supplies - Online. 12

D. General Encumbrances. 12

E. Purchasing Records. 13

F. Audits/Review.. 13

IV. SPECIAL PURCHASES/CIRCUMSTANCES. 14

A. Petty Cash Reimbursements $35 or less. 14

B. Prepayments Required by a Vendor. 14

C. Change Orders/Cancellations. 15

D. Equipment, Furniture, Vehicles and Capital Projects. 16

E. Hazardous Materials, Controlled Substances and Animal Research Materials. 18

V. Sample Forms. 19

VI. Instructions. 19

I. INTRODUCTION

Rose-Hulman Institute of Technology operates a system of decentralized purchasing in which each department/unit is authorized to purchase goods and services on behalf of the Institution. Purchasing policies and procedures have been established to ensure sound, consistent, purchasing practices for cost-effective buying while adhering to external funding source requirements for bidding, documentation and reporting. The purpose of this guide is to assist the Rose-Hulman Community in understanding the purchasing policies and procedures employed by the Institute when acquiring supplies, equipment, and contractual services necessary for the operation of the Institute.

These policies and procedures are designed to meet three objectives:

1. To provide efficient and effective purchasing services to the Institute.

2. To meet the fiduciary and policy requirements of the Institute and the Board of Trustees.

3. To ensure compliance with applicable Federal and State regulations.

II. POLICY

A summary of the Institute’s purchasing policy is outlined in the chart below:

Purchase Dollar Scope	Documentation Requirements	Section Reference	Exceptions	Section Reference
< $ 2,500	No Purchase Order Required Use Invoice Transmittal/Check Request or Purchasing Card	III. A	Petty Cash - $35 or less Hazardous Materials, Controlled Substances, & Animal Research Materials	IV. A IV. E
$ 2,500 – $ 4,999	Purchase Order Required	III. B	Exempt Goods & Services	III. A