3210 PR.05 Goods Contracts Process

    Revision Date: 
    November 1, 2022

    Contents

    1.      Overview

    2.      Preliminary Steps for Purchasing Goods

    3.      Procedures and Forms for Goods Purchases

    4.      Procurement Review and Approval

    5.      Summary of Documentation Requirements

    1. Overview

    This procedure supports Policy 3210 Purchase Contracts.  It outlines the process for purchasing goods from external suppliers. 

    Note: This Procedure applies only to contracts for the purchase of goods.  If the primary purpose of the contract is to purchase Services, please consult Procedure 3210 PR.01 Services Contract Process.  For purchase contracts involving both goods and services, it may be necessary to include terms governing both the sale of goods and the provision of services.  Please consult with Procurement for direction regarding contracts for the purchase of mixed goods and services

    2. Preliminary Steps for Purchasing Goods

    A.  Identifying and Documenting Business Need

    The Requestor (or designee) is responsible for identifying and documenting the business need for the goods (i.e., the reason Yale is purchasing the goods).  The Requestor (or designee) is also responsible for determining that the costs are reasonable and allowable for the intended funding source. 

    It is not necessary to document the business need in a separate form or document, but it is expected to be documented in writing. 

    B. Supplier Selection and Comparative Pricing

    All purchases must comply with the Supplier selection and pricing justification requirements described in Policy 3201 General Purchasing.  Please consult that policy prior to making a final selection of a Supplier, as it may require certain initial steps, including following the comparative pricing process described in Procedure 3201 PR.02 Pricing Documentation Process, before submitting a requisition. 

    C. Evaluate the Value of Goods Purchased

    Yale requires different forms and procedures depending on the value of the goods purchased.  Therefore, the Requestor (or designee) should evaluate the total value of the goods to be purchased from the Supplier over the course of a year.  Please note that Policy 3201 General Purchasing prohibits “splitting” a transaction into multiple transactions to purposely evade any requirement of a University policy.

    3. Procedures and Forms for Goods Purchases

    A. Goods Valued < $10,000

    Yale does not require a separate, signed Purchase Contract for purchases of goods, including equipment, with an aggregate value of less than $10,000.  For those purchases, the Purchase Contract consists of the University’s standard Purchase Order Terms and Conditions.  To be effective, the Purchase Order or the attachments thereto must identify with specificity the item(s) the University wishes to purchase and the price(s) thereof, as well as the shipping/delivery terms.

    B. Goods Purchases Valued ≥ $10,000 and < $100,000

    Unless directed by the Procurement Department, Yale does not require a separate Purchase Contract for purchases of goods, including equipment, with an aggregate value of less than $100,000.  For those purchases, the Purchase Contract consists of the University’s standard Purchase Order Terms and Conditions. Please complete the following process:

    Goods purchases valued at $10,000 or more require the review and approval of the Procurement Department. 

    C. Goods Valued ≥ $100,000

    Yale requires a separate, written Purchase Contract for purchases of goods, including equipment, with an aggregate value of $100,000 or greater. 

    Consult the Procurement Department for guidance on which contract form to use for goods purchases of this value.

    If instructed to do so, obtain a copy of the Purchase Contract signed by the Supplier. 

    • Obtain quotations from an adequate number of suppliers in accordance with Policy 3201 General Purchasing and Procedure 3201 PR.02 Pricing Documentation Process. Submit Form 3201 FR.05 Pricing Documentation (Comparative Pricing & Competitive Bidding) to document compliance with the comparative pricing process described in Procedure 3201 PR.02 Pricing Documentation Process.  Departments should consult Procurement for assistance with comparative pricing.
    • Determine if additional approvals are required, as specified in Policy 3201 General Purchasing, section 3201.7 Purchases Requiring Additional Approvals.
    • Obtain supplier’s Certificate of Insurance with Yale named as an additional insured.
    • Prepare Requisition, in accordance with Procedure 3201 PR.01 Purchase Order Process.

    Purchases of goods of this value require approval by the Procurement Department.

    4. Procurement Review and Approval

    For qualifying transactions, Procurement will take the following required steps for review and approval:

    • Review any changes to Yale’s standard forms;
    • Negotiate on behalf of the University;
    • Ensure that all required documentation is present and included with the transaction;
    • Ensure that supplier signatures have been obtained;
    • Approve the Purchase Contract on behalf of the University; and
    • Approve the requisition to create the required Purchase Order.

    5. Summary of Documentation Requirements

    The table below is a summary and visual representation of the documentation requirements outlined in this procedure.

    Documentation Requirement

    Goods < $10,000

    Goods ≥ $10,000, but < $100,000

    Goods ≥ $100,000

    Purchase Order

    (to include goods description, quantity, price, shipping/delivery terms)

    X

    X

    X

    Written Purchase Contract signed by the authorized University representative

    Only if directed by Procurement

    X

    Form 3201 FR.05 Pricing Documentation (Comparative Pricing & Competitive Bidding) OR Form 3201 FR.06 Sole Source Documentation

    X

    X

    Certificate of Insurance

    Consult with Office of Enterprise Risk Management

    X