BUSINESS OFFICE                                                                                                            44-02-002
                                                                                                                                         

STATE PURCHASE POLICIES

 

POLICY STATEMENT.

The Division of Veterans Healthcare Services (DVHS) requires each of the New Jersey Veterans Memorial Homes (VMH) to develop and implement policies and procedures to be used when purchasing the goods and services needed to efficiently and effectively operate the VMHs.

PURPOSE.

As a state agency, the New Jersey Department of Military and Veterans Affairs (NJDMAVA)
adheres to the guidance and procurement regulations enacted by New Jersey law, the Governor's
Executive Order, or General Services Administration Procurement Circulars, as published or
amended, regarding any manner of procurement of commodities, services or items. These
purchase policies contain the methods and procedures to be followed when pursuing a purchase
action in the name of the NJDMAVA.

REFERENCES.

  1. New Jersey Administrative Code, Title 17.

  2. New Jersey Department Directive #160 ‘State Purchase Policies’.

  3. All published or amended General Services Administration (GSA) Procurement Circulars to include:

    1. Circular No. PC-23H, dated May 1, 1998, Direct Purchase Authorization;
    2. Circular 09-03 ‘ Delegated Purchase Authority’;
    3. Circular 08-22-OMB/DPP ‘Moratorium on Procurement of Non-IT Equipment’;
    4. Circular 07-14-OMB/OIT ‘Moratorium on Procurements of IT Hardware, Software and Related Services;
    5. Circular 09-02-DPMC ‘Procedures for the Acquisition of Furniture and Carpeting’;
    6. Circular 10-15-DPP ‘State Contract Manager’;
    7. Circular 09-11-DPP ‘Requests for Waivers of Advertising’;
    8. Circular 10-16-DPMC ‘Directors of Administration and Executive Branch Procurement Officers’;
    9. Circular 08-09-DPP ‘Purchases From Federal Supply Schedules or Schedules of Other Federal Procurement Programs’;
    10. Joint Circular 09-10-DPP/OMB/OIT ‘Professional Services: Review, Control, Monitoring and Extensions’.

 

DEFINITIONS.

  1. ACCOUNT MANAGER / DEPARTMENT MANAGER- is a designated individual who has been delegated authority from the Business Manager/ Department Head (ACEO-Clinical or ACEO-Non-Clinical) to authorize expenditure of this Department's funds for the purpose of securing necessary commodities and/or services required for the performance of a Department’s functions.  The Account Manager is responsible and accountable for all expenditures made via this authority.
  2. AGENCY BID PROPOSAL - is a public advertisement of a bid conducted for procurement of non-contract commodities or services at the Agency level by the NJDMAVA Purchase Bureau or a facility’s Business Office.  An agency bid authority is limited to $17,500-$29,000. The Purchase Bureau Form PB-120 "Agency Bid Request" is utilized to accomplish this action.
  3. AGENCY PURCHASE ORDER - is a commitment between the State and a vendor for commodities and/or services at a given price.
  4. ANNUAL TERM CONTRACTS - are issued by the State Purchase Bureau for common statewide commodities and services.  Duration of the contract can be from one to three years.
  5. BUSINESS MANAGER - A department employee at a facility or supervising an operation who has been delegated specific signature authority to purchase commodities and services and authorize expenditures of State funds.
  6. CONFIRMING ORDER -  is an "after-the-fact" issuance of an Agency Purchase Order,given in an emergency, when staff is not available to give a P.O., or when IT systems are “down” and not available to create a P.O.
  7. DIRECT PURCHASE AUTHORIZATION (DPA) - is a delegated purchase authority extended to State Agencies from the Director of the Division of Purchase and Property, Department of the Treasury, State of New Jersey (Ref. Circular 09-03 DPP).
  8. E-CATALOG - State negotiated contracts done through automated requisitions through the State of New Jersey website, “My New Jersey”.
  9. "EMERGENCY" & "EMERGENCY PURCHASE" - At the discretion of the Account Manager, a situation that is deemed an emergency.  This denotes an urgent need to correct or remedy a situation regarding the health or safety of an individual, or the physical damage of a facility (same as “Confirming Order”).
  10. NJDMAVA ACCOUNTING BUREAU - is the Department's centralized accounting authority and operation.
  11. NJDMAVA PURCHASE BUREAU - is the Department's centralized purchasing authority and operation.
  12. NON-CONTRACT - Commodities and services purchased or required from vendors not having a State Contract.  Purchases from the State Distribution Center (DSS, Deptcor, or CNA - State agencies) fall under this category for transactions processed through the Management Acquisition System (MACS-E) and N.J. Comprehensive Financial System (NJCFS).
  13. PROGRAM MANAGER/DEPARTMENT HEAD; ACEO-CLINICAL or NON-CLINICAL- is a designated individual who is responsible and accountable for this Department's funding provided to support a specific program. Their accountability cannot be delegated or assigned.  Expenditure authority may be delegated to an Account Manager/Department Head.
  14. PUNCH-OUT - Automated requisition created directly through a ‘punch-out’ catalog which is a terminology meaning the specific vendor website that has State-negotiated items and prices.
  15. REQUEST FOR PURCHASE FORM – Requisition Form – PB2 - A form that is used by Account Managers to request of NJDMAVA Purchase Bureau that an Agency Purchase Order be issued for required commodities or services. Automated Requisitions are available for specific commodities through e-catalog orders done using a ‘punch out’ catalog (direct website of vendor with items & negotiated pricing).
  16. WAIVER OF ADVERTISEMENT- PB FORM 129 - is a request to bypass normal public advertisement of bid for services or commodities.  Criteria for waiver submission are outlined in Procurement Circular 09-11 DPP with the appropriate statutes cited thereon.  Such requests are initiated by Managers to the NJDMAVA Purchase Bureau for review, recommendation and processing.  Generally, dollar amounts are in excess of $29,000. Waiver of advertisement is restricted and individually reviewed/approved by The Adjutant General (TAG).

PURCHASING RESPONSIBILITY and AUTHORITY.

  1. The NJDMAVA has the authority to engage in purchase transactions with vendors for the purpose of fulfilling the Department's mission.  (Refer to the Code of Ethics for Vendors, NJDMAVA Form 010/1-4, 1 MAR 89).
  2. Departmental authority has been delegated through a system of Account Managers, who are charged to act in a responsible and professional manner in exercising this delegated Departmental authority. 
  3. Use of Delegated Purchase Authorization (DPA) is prescribed in 09-03-DPP dated 09/25/08. Direct Purchase Authorization limits are as follows:
    1. No price competition is required for DPAs not exceeding $500.
    2. Telephone Quotations are required for DPAs of more than $500 but less than $17,500 (recorded on form PB119-Telephone Quotation Form.
    3. Written sealed quotations are required for all DPAs exceeding $17,500, but are less than $29,000.  Business Managers may conduct this action if delegated this authority from the Department. The NJDMAVA Purchase Bureau will accomplish this action for all other Managers.
  4. All non-contract purchases exceeding $29,000 will be requested through NJDMAVA Purchase Bureau to the State Purchase Bureau on form PB-6.
  5. The NJDMAVA Purchase Bureau is responsible for direct coordination and serves as point-of-contact with the State Purchase Bureau on all issues and transactions involving the State Purchase Bureau.
  6. Confirming Orders are discouraged and should be used only to satisfy the requirements of an immediate need or an emergency.  All previously mentioned guidance and limits are applicable and must be followed. 
  7. Emergency purchases must be justified, documented and signed by the Account Manager.  This documentation is made part of the purchase record.

PURCHASING PROCEDURES AND GUIDELINES.

The NJDMAVA Fiscal Division and Purchase Bureau have established the following guidelines to be followed when using this Department's Purchase Authority.
 

  1. All Account Managers/Department Heads will submit a completed DPA - PB2 PURCHASE REQUEST FORM (up to $500) to the NJDMAVA Purchase Bureau or appropriate Business Manager to request an Agency Purchase Order. This form is used to identify either contract or non-contract anticipated purchases within the State Purchase Procedures.  It may also be used to request Agency Bid Proposals in the amounts of $17,000 - $29,000.  Bid specifications must be detailed and complete. Emergency service/repairs must be completely detailed on the reverse side of this form.  Names of all vendors contacted must be shown with reason for non-selection.  Recommend the use of a Form PB119 for this purpose.
  2. Agency Purchase Orders will only be issued against established accounts which "have funding available" to support the transaction.  The Agency Purchase Order Document is also used as a "Blanket Order" for "certain commodities".  Blanket orders are issued as a result of an Agency Bid Proposal which conforms to the non-contract purchase procedures or a State Contract (Utilities, Fuel Oil...etc.)  Commodities and services can be purchased through the method prescribed in the contract within the dollar limits imposed by the requirement(s) of each contract.  All commodities and services available through the State Distribution Center or State Use Industries MUST be purchased from these sources before consideration is given to Annual Term Contracts or any other supplier (DSS, Deptcor or CNA).
  3. A PB6 Requisition is required for any purchase of $29,000 or greater or when it is the method of purchase specified in an annual term contract. All PB6 Requisitions will be prepared and processed by NJDMAVA Purchase Bureau. Managers will submit a completed and typewritten "PB6B Requisition Worksheet" to support the action.  Funds must be available in the account for the requisitions to be processed.
  4. All emergency purchases exceeding $2,500 but less than $10,000 (see Circular 08-22-OMB) must be reported to NJDMAVA Purchase Bureau as soon as possible but NO LATER THAN close of business (COB) of the next normal workday.  NJDMAVA Purchase Bureau will advise the Director, NJDMAVA Fiscal Division of the incident.
  5. Managers will check details of State contracts, terms and conditions and pricing prior to request/issue of a Purchase Order or making an Agreement (Implied Purchase) with any vendor.  If a vendor offers a substitute item or any other difference from the published contract; contact NJDMAVA Purchase Bureau for interpretation and ruling.
  6. Purchase and Accounting documents are to be processed in sufficient time to take advantage of applicable discounts and comply with vendor’s terms of payment. Vendors are now in a position, due to the passage of the "Prompt Payment Act" to charge interest for late payments.
    1. Purchases "will not be divided into smaller orders of $500 or less to avoid price competition" or into two or more orders not exceeding $17,500 to circumvent the stated limits.  Business and Account Managers, who knowingly and willfully have vendors adjust dates of sale, invoice numbers, charge slips or other documentation to avoid price competition or for any other advantage are in violation of New Jersey Public Laws concerning Public Bid and New Jersey State Purchasing Regulations.
    2. Documentation of Telephone Quotations (PB119) and written quotations (PB120) are required by the NJ State Purchasing regulations.
    3. The New Jersey Department of Military and Veterans Affairs is an advocate and strong supporter of the Governor's program on "Contracts for Small Businesses, Female Businesses and Minority Businesses".  Each Manager is expected whenever possible to purchase from or contract with State Certified Small, Female or Minority owned Business as per the guidelines of Chapter 12 N.J.A.C. and goals as set by the Department.
FORMS:

  1. PB 2 PO (8/93) AGENCY PURCHASE ORDER - is a commitment between the State and a vendor for commodities and/or services at a given price. It is used to identify either contract or non-contract anticipated purchases within the State Purchase Procedures.  This form is to be completed by the Account Manager.  It may also be used to initiate an Agency Bid Request.  Emergency service/repairs must also be completely detailed on the reverse side of the form.
  2. PB 5 PO GSA PURCHASE BUREAU PURCHASE ORDER - is issued by the State Purchase Bureau as a result of a PB6-Requisition Encumbrance.  It may be for a commodity or services on a one time basis or as a Blanket Order providing commodities or services for a period of time or until funding is exhausted.
  3. PB FORM 6 - REQUISITION/ENCUMBRANCE - reserves funds prior to issuance of PB5PO Purchase Order by State Purchase Bureau. It may be generated because of a contract requirement or non-contract requirement.
  4. PB FORM 6B - REQUISITION WORKSHEET -  is used by Managers to request a PB6 Requisition/Encumbrance for dollar amounts which exceed Agency Bid Request or as specified in State Annual Term Contracts.
  5. PB FORM 36 - USING AGENCY COMPLAINT REPORT -  Completed by NJDMAVA Purchase Bureau based on memo from Business Managers containing detail of a vendors lack of performance or on unsatisfactory commodities.
  6. PB FORM 119 - SUMMARY OF TELEPHONE QUOTATIONS - is used to record and determine price competition on non-contract commodities or services from $500 to $17,500.  This document is subject to State as well as Departmental audit.  The Account Manager/designee shall complete the PB119 and attach to all non-contract purchase requests.
  7. PB FORM 120 - AGENCY BID REQUEST - is used by NJDMAVA Purchase Bureau and Facility Business Offices to advertise for commodities and services of a non-contract nature.  Specifications for commodities and services must be detailed or attached.  Anticipated costs must be within non-contract purchase limits.  This document is subject to State, as well as, Departmental audit.
  8. PB FORM 129 - REQUEST FOR WAIVER OF ADVERTISING - is initiated for certain cases when the public advertising of bids for commodities/services is not practicable.  All Waivers of Advertisement are signed by The Adjutant General.  Use is restricted.
  9. PBPV1 (3/93) PAYMENT VOUCHER (VENDOR INVOICE) - is used by the vendor to request payment for commodities or services rendered as a result of an Agency Purchase Order, State Purchase Bureau Purchase Order.

 

Revised:   June 2011

 

 

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