Procurement and Contract Services

Return to PaCS Homepage

Business Services » PaCS » FAQ

PaCS FAQ

Frequently Asked Questions

Questions have been split up into the following categories:

General
Bidding
Price Agreements
Vendors
Contracts
Construction
Purchase Order Construction
Other

To view or hide the answer, please click the question text.

General

Show/Hide All

We have been told on several occasions that department personnel are not to sign contracts. Why can't we do that?: There are only a handful of people at OSU that have the authority to sign contracts and legally bind OSU to any agreement. The reason there are so few has to do with risk issues. Before a contract can be signed, the terms and conditions must be reviewed. There are several issues that a contract officer will look for. Here are just a few:

Oregon law must govern contracts.

All parties involved in the contract must be listed by their legal names.

OSU cannot agree to confidentiality clauses.

Export control language is very critical.

Pertinent dates and payments must be listed.

OSU must not be required to indemnify a contractor.

If a contract spans more than one fiscal year, OSU must include a "non-appropriation of funds clause", which states OSU can get out of the contract if OSU doesn't have the money to continue.

OSU will not agree to pay sales or property taxes.

There are many more clauses that must be dealt with. Contracts are sticky and even with years of experience, it's hard to uncover risk issues. If you have a contract that must be signed, please find a contract officer to help you out. A listing of Contract Officers can be found here.
What is "delegated authority" and what is my responsibility in accepting orders?: Currently OSU departments have delegated authority to purchase up to $4,999.99 without prior PaCS approval. Anything that is $5000 or more needs to route through PaCS first. We will then obtain bids and issue a purchase order.

A vendor should not accept any order that is $5000 or more from an OSU department unless prior authorization from PaCS has been made. Firms who do so accept the risk of delayed payment or the voiding of the unauthorized contract. If you are in doubt about an order that is $5000 or more placed by a campus department please contact us.
Why do some purchases take longer than others?: There are many factors that determine how long it takes to make your purchase. Dollar amount, whether or not the item is biddable, how much information is provided with the requisition, and workload are a few of the many factors that affect the timeline of your purchase.

Simple purchases can take as little as same or next day placement. For instance, if you are buying a Dell computer (which is on price agreement) and you've obtained a quote, an analyst in PaCS can probably place that order pretty quickly.

Complicated purchases for higher dollar levels, (over $50,000) which must be put out for bid, typically require more in-depth review and result in drafting a detailed request for bid or request for proposal that requires input from both the end-user and PaCS analyst. It should also be noted that purchases over $50,000 are required by law to be advertised in the form of a solicitation and purchases over $100,000 ($75,000 for high-tech items) are required to be reviewed for legal sufficiency by an attorney at the Oregon Department of Justice.

Please review the PaCS Essentials guide for more information on this topic or call PaCS at (541) 737-4261.
What is the process for Construction Contracting?: There are several procedures and rules, which must be followed when doing a construction contract. Click here to review these procedures and rules.

Bidding

Show/Hide All

When do we have to bid things out?: The University policy has always been that you must work with PaCS to bid things out whenever the total price exceeds $4,999.99 and that you should bid purchases under $5,000 whenever reasonable.
What types of bids does OSU do?: Vendors may be asked to submit bids on either a formal or an informal basis. Informal bid solicitations may be obtained by telephone, fax, or mail and are for goods or services valued up to $50,000.00. Formal bid solicitations (called Invitation to Bid) are used for orders $50,000 and more, as well as some under $50,000 (Buyer discretion) for goods and services. These bids are also required to be advertised. A contract is then awarded to the lowest responsible bidder. Another type of formal bid solicitation is a Request for Proposal (RFP). An RFP is used when OSU wants to consider alternative ways to meet its goal. The resulting contract is awarded based upon a variety of evaluation factors and not necessarily upon the lowest bid price.
At what dollar amount is it reasonable to ask for price quotes?: There are two areas to look at when you are trying to make that determination. First, what is the potential for savings? Secondly, how much time will it take you to save that much? (Time is money.)

Obviously, you don't want to spend even a half an hour to save just a few pennies on a small item, but if you are buying something over $250 or $300, it's probably worth a little extra time to call three vendors and find out if it will result in some savings. The more an item costs, the more effort is justified trying to save money on it. However, it's probably not reasonable to spend more in your time than in the amount of money you would be able to save on the purchase.
What if we want our bids to go to certain vendors?: If a department is interested in having bids sent to a select group of vendors, there is an easy way to accomplish this. The person filling out the requisition can simply list the names of the vendors to which they wish to have the bids sent. PaCS will make every effort to send the request for bid to the vendors listed. If however the purchase value is >$50,000 the University is legally required to advertise the purchase which could result in additional bidding.
Can I as an employee get the same deal on pricing as the University?: Oregon State University is not allowed to request that price agreement prices extend to employees for personal use. This request could give the appearance of impropriety and we do all we can to avoid that. Some vendors, however, do extend special reduced pricing to university employees. OSU PaCS, as a public agency, neither supports nor disallows this practice. We do not keep track of which vendors offer discounts for personal use. Any discounts offered by a contractor to an employee for personal use is considered an agreement strictly between the person and the contractor. OSU will in no way be considered a responsible party in a personal transaction.
I've asked for quotes and am ready to award the bidder. Do I have to go with the low bidder?: Usually yes, but there are a few exceptions. They are:

Non-responsive bidders. After receiving your request for quote, if the bidder changes the terms or the specifications, they are considered non-responsive. For example if you ask for a specific delivery schedule and the bidder indicates they can not meet it while another vendor can meet it the first vendor would be considered non-responsive.

Non-responsible bidders. If the vendor can't do or provide what you are asking for, they are considered a non-responsible bidder. This is a very difficult thing to prove and only should be used as a way to eliminate a vendor if you have very strong proof that they would be unable to fulfill the order.

Price Agreements

Show/Hide All

How can I find out about current OSU contracts?: OSU PaCS awards and maintains contracts for various commodities for use by OSU and the Oregon University System (OUS). Please check our Web page here for a list of contracts currently in effect.
Is OSU allowed to use the prices offered on GSA contracts?: GSA Order ADMN 480.2E identifies those agencies and activities authorized to use GSA sources of supply and services. Although OSU receives several grants from the federal government, grantees are not eligible to use these agreements. If you would like more information about eligibility to use GSA contracts, visit their website, click on "General Information", then Item 5: Eligibility to use GSA sources of supply and services. The good news is - the fact that as a grantee we are not eligible to utilize GSA sources of supply and services does not prohibit us from seeking discounts similar or equal to GSA discounts.

Vendors

Show/Hide All

How do I find out about current OSU bids?: All of our bids are advertised on this Web page. We encourage vendors to frequently check our Web page to learn about bidding opportunities. We also advertise our large bid packages in the Daily Journal of Commerce and through the State of Oregon's Vendor Information Program (VIP).
How do I know if there have been changes to a bid?: It is your responsibility to check the OSU PaCS web page up until the bid closing time to see if any bid addendums have been issued. It is very important that you address issues brought forth in any addendum to ensure that your bid is accepted.
How does a business get added to our bidders list?: Oregon State University PaCS does not maintain a bidders list. We do, however, post our bids online. If a supplier is interested in doing business with us, they can log onto our web page, download the solicitation document, and respond to it. They may also attend our annual Merchant Expo to develop business contacts.
What if I have worked with an end user upfront on a project and OSU PaCS still issues a bid?: Working with an end user or department, including consulting, special design and other services, does not guarantee award of a contract to you. This is a risk that you take in doing this. Other potential bidders will be sought through the competitive bid process.
What if I am a Small, Disadvantaged, Women-owned business or Qualified Rehabilitation Facility?: Working with an end user or department, including consulting, special design and other services, does not guarantee award of a contract to you. This is a risk that you take in doing this. Other potential bidders will be sought through the competitive bid process.
Where do I send my invoices?: Invoices should be sent directly to the campus department. Please be sure to include the department's name and purchase order number, index number, or procurement card number that the department used to place the order, on your invoices. This makes it easier to match invoices with purchase orders, resulting in quicker payment. Questions regarding payment should be directed to the ordering department or to Accounts Payable, (541) 737-4262.

Contracts

Show/Hide All

What is an Interagency Agreement?: State agencies in Oregon, such as the Oregon Department of Transportation, Oregon Department of Energy, or the Oregon Department of Fish and Wildlife, using state or federal funds may fund a research project at OSU. The type of awarding document used is called an Interagency Agreement. This document is an agreement between two State of Oregon agencies. OSU receives these agreements from the awarding agency, but on occasion an Oregon state agency may ask OSU to write the agreement.
What is an Intergovernmental Agreement?: Local governmental agencies, such as Lane County, Corvallis School District, or the City of Bend, may decide to fund a project at OSU. They may need information or services that only a principal investigator at OSU can provide. The awarding document received from one of these agencies to fund this project should be called an Intergovernmental Agreement. It is an agreement between two governmental entities. OSU will account for this project just like a research project and in most instances, it is a research project.

Construction

Show/Hide All

Do I need specs? What are specs?: All solications need some level of description/specification of the product or work desired.

Specifications are detailed descriptions of the desired products and/or method of installation.
Do I have to hire an A/E to provide construction specs?: Not necessarily. If the work to be performed is simple and has been determined to be low risk, formal specifications are not always needed. Sometimes a detailed scope of work will be sufficient.
Do I need to have a "contract" or can I just get a PO?: If you are seeking A/E services, you need a "contract". If you need construction services over $25K, you need a "contract". If you need construction services under $25K, a Purchase Order is the correct contract vehicle.
So, I keep hearing about "BOLI". What is it and what does it mean to my project?: "BOLI" stands for "Bureau of Labor and Industries" and refers to Oregon's Prevailing Wage Rate Law, which requires payment of specific fees to BOLI, and minimum hourly rates to contracted tradesworkers on a public works construction project. Any project with a total contracted value of over $50,000 is subject to BOLI law.
Can I get my own quotes?: Design Services - Yes, you can get a fee proposal from any A/E firm if their expected fees are under $75,000 or up to $200,000 if they are eligible under the "retainer list" process, but you should be working with Facilities Services for any project needing design services. Note: the upper limit on the retainers for design is $200,000. That means you may use the retainer list for projects with design fees that high; however, in some instances it may be better to do some sort of limited competitive selection.

Construction, over 25K - No, if the construction contract is expected to be over $25K, the contract must be executed in compliance with the construction OAR's (580-050-xxxx).
What is "total contracted project value"?: BOLI's definition is: all purchased/contracted costs specifically applicable to a project. If a piece of equipment (fume hood, furniture, carpet, etc.) is purchased specifically for the project, and a contractor is hired to do the electrical work, those costs are applied to the "total contracted project value". In-house "stores materials" or labor to do painting or carpentry would not apply to the "total contracted project value".
What is the difference between specs, a scope of work and work "tasks" and when does that mean design-build?: Specifications are detailed, formal descriptions of the product purchased and/or work methods required to purchase/fabricate/install the product.

A scope of work is a less-detailed step-by-step description of the product and/or work desired.

Work "tasks" are a listing of general requirements necessary to meet a specific need, but leaving the technical details up to the contractor (design/build).
What is design-build? What's the implication?: "Design-build" is when we know generally what we want done or the results we want to achieve, but not specifically how we want to go about getting it. We rely on the contractor to determine exactly what is needed to obtain our desired results, design/purchase what is necessary to get there, and then install/construct the work. The implication is that it requires much more oversight by the Facilities Services Project Management, and depending on the dollar amount (if over $75K it will go through a DOJ review), a significantly longer review process.
How long will this take?: Design - A simple design supplement to a retainer agreement can usually be accomplished (preparation by PaCS and signatures by all parties) within 10 business days after PaCS receives the necessary information from the Project Manager (see checklist). Note that if the supplement is OSU's first use of that consultant, additional time may be required in order to obtain the required insurance documentation from the consultant.

Design - A more complex supplement to a retainer agreement, with services over $75,000, must go to DOJ and can typically take a minimum of 10 business days after PaCS receives the necessary information from the Project Manager).

Design - An agreement for a specific Capital Construction project will typically take up to 15-20 business days, due to the complexity of issues involved; the fact that we have to send copies of the A/E cost proposal to DOJ; and the time it takes the contact attorney to review the responses and cost proposal.

Construction - Once the final plans and specifications for a straight bid project have been delivered to PaCS, we can typically have the invitations to bid issued within two weeks (need to allow time to work into PaCS schedule, get dates set, and documents printed). Depending on the project, bids can be opened within 1-4 weeks after that. Factors that affect the length of time a project needs to be open for bid include affirmative action requirements, potential for substitution requests, and issuance of addenda. The process from bid evaluation to award and getting the contract negotiated, insurances and bonding in place and execution varies widely. It can be as short as a week, it can be as long as several weeks - it depends on the contractor and their insurance and surety companies.

Construction - If the project is to be contracted by an "alternate" method (RFP, design/build) and the estimated cost is over $100,000, the solicitation documents must be approved by DOJ, and can be expected to take up to 20 business days before approval to advertise/invite bidders is received, even if using the retainer process. Steps after that would vary widely and should be discussed with PaCS on a case-by-case basis.

Purchase Order Construction

Show/Hide All

Do I need specs? What are specs?: All solicitations need some level of description/specification of the product or work desired. Specifications are detailed descriptions of the desired products and/or method of installation.
When are the specs good enough?: Good specifications can make or break your purchase. It's an act of balance. Not enough specifications or specifications that are not detailed enough can result in receipt of an item that doesn't suit your needs. Specifications that are too detailed may result in limiting competition and possibly causing you to pay more money for something that has capabilities that you may never need. Be sure to include specifications that cover every aspect that are important to your purchase. Think about what kind of warranty you may want, whether or not you may need a maintenance agreement, dimension, weight, capabilities, composition, color, how it operates, shipping, etc. Ask yourself a lot of questions, "What does this item need to do? What are the limitations with regard to size?" "Where does it need to go? Do I need usage training? How long does it need to last?" Taking the time to develop solid specifications will pay off in the long run. Remember this very important fact - PaCS cannot award a bid to a bidder based on a specification that the bidder offered, but you did not request. Other bidders would protest the award based on the fact that they may be able to provide that specification, but had no idea that it was something you wanted because it was specified in the Invitation to Bid.
Can I hand-deliver the specifications over to PaCS?: Please don't do this unless you've coordinated the purchase through your bookkeeper or stores person beforehand. You need to work with whoever prepares requisitions for your department because they understand what is needed in order to make the purchase move along smoothly. They ensure that we have Ship-To and Buyer Codes, Index Numbers, Work Order Numbers, a bidders list, sole source justification, Property Disposition Request (PDR) and other supporting documentation. Sometimes end-users walk over their specifications hoping that PaCS can place an order or Invitation to Bid immediately. What usually happens is that the purchase takes even longer than if it went through the right channels. Once the requisition has been prepared and all supporting documentation is included, please feel free to walk the requisition over to PaCS. This doesn't mean we aren't willing to discuss the purchase with you prior to getting the requisition. We are always happy to discuss the purchase during the initial stages. You may need to know how to prepare the purchase, need help with sourcing, or just need advice on how to proceed and we are here to help you.
How long will this take?: Purchase of Equipment: It depends on how complicated the purchase is. If it's a simple purchase of equipment with a low dollar level and you've already gotten your bids or are using an existing contract, then it may take one or two days (unless it's fiscal year-end). If it's a complex purchase with a very high dollar value, needs to be put out for competition by PaCS and must go to DOJ for legal sufficiency review, then it could take 6 weeks to 3 months. Every purchase is different with special circumstances so it really depends on the situation.
Can I get my own quotes?: BOLI - If a project, regardless of dollar amount, is going to be subject to BOLI, you cannot get your own quotes - PaCS will do that so we can have the appropriate BOLI language and forms included.

Construction, under 25K - Yes if you are looking for construction services under $25K to which BOLI law does not apply.

Construction, under 25K - No, if you are looking for construction services to which BOLI law applies (Total contracted value for the "project" over $50K.) for services under $25K.

Other

Show/Hide All

I'm working on a budget for a grant and would like to know where I can find information about small businesses and women owned enterprises. Is there a place I can go to on the web that would have that information?: Yes. If you look under the Purchasing Links in the Department Services column, you will see a link called Certified Status Vendors. This will take you to a page that will offer you several ways to search for these businesses.
Our building lease invoice exceeded $5000 this month and when we went into FIS to pay it, we were told we needed to complete a purchase order. What's going on and how do we handle these types of expenses?: Several years ago, it was possible to go into FIS and pay invoices over $5000 without any problems, but unfortunately, products were being purchased and paid for without following the proper procedures (bidding and the like), which put OSU in a rather awkward position with regard to being audited. In order to keep the University out of trouble, PaCS asked FIS to set up a system where invoices coded with certain account codes could be processed though FIS without our prior approval, but others (20XXX and 40101) would have to be processed through PaCS. FIS is still working on this programming change but it will be done eventually.

Until then, if you have an invoice over $5000 that needs to be paid, go into FAAINVE and process the payment as you normally would until you reach the place where FIS will not let you complete the invoice. Then close the document as "in process." Finally, e-mail PaCS and give us the document number (the "I-doc" number). We will be happy to go into FIS, check the document over, and approve it.
Our department is interested in buying a used vehicle. We've never done this before. What is the process?: It's a good idea to start by contacting Motor Pool. They can talk to you about maintenance and fuel issues. There are some vehicles that take longer to service because Motor Pool doesn't stock the parts and there are some vehicles that they won't service at all. If your department buys its own vehicle, your department will also be responsible for paying for the fuel. Motor Pool may be able to lease a vehicle to your department for long-term use which could save you money in the long run.

If you decide you really want to purchase a used vehicle, please contact us and let us know what you plan to do. Send us a departmental requisition with your general specifications. We will check the state contract new vehicle prices for you to give you that vehicle price for consideration. You may then go out and look for a vehicle. Please be sure to keep track of the vehicles you look at, their prices, and who the vendor(s) is/are for documentation purposes. Decide on which vehicle most closely meets your needs. This does not necessarily have to be the lowest cost, but it should be the "best value". The price should be comparable to the other prices you've obtained. When you've made your selection, ask the dealer to hold the vehicle for a day or two until PaCS can issue a purchase order to them. Inform us of your selection and the details and we will issue the PO. The vehicles license and title must be processed through Motor Pool.
We are considering buying a certain type of equipment. One of the companies we have contacted offered to bring us a demonstration model. What should we know about accepting a "demo"?: As a public agency, we cannot give preferential treatment to one company. If you allow one company to place a "demo" in your area, you should allow others (if there are any) to do the same. OSU generally asks the company as providing insurance, so if the equipment is damaged or stolen, the company would bear the loss. Be aware that you may encounter additional pressure from the company to buy the equipment from them if they've provided a "demo" - and there may be some hard feelings if they aren't the successful low bidder. You may want to call PaCS first to discuss all the considerations. That way we can explore the possibilities on the front end rather than having to pick up the pieces after the fact.
When we have to spend more than $5000 on an order, PaCS must either buy the product from a contract or get three bids. What happens if there is only one place from which the product(s) may be purchased?: If there is truly only one vendor, this by definition, would be a "Sole Source" purchase. These purchases must be justified. Fill out the Sole Source Justification Form and forward it to PaCS with your departmental requisition and we will place your order directly with the Sole Source vendor.

If the value of this purchase is > $50,000 we are legally required to advertise the Sole Source purchase.
Please remind me. Who is allowed to use City Pair Air Fares?: The City Pair contract may be used for State employees who are traveling on state business. It may also be used by non-employees (interviewees) who are traveling on state business. The fares may not be used for our contractors (such as paid speakers). All purchases must go through our contracted travel agents and charged centrally through our "ghost card" payment system. Government identification is NOT required by the traveler.
We're supposed to split out fixed assets from supply items on our departmental requisitions, but when I am buying a system, I'm confused on how to do that. Is there an easy way to determine what is considered a supply and what should be listed as fixed?: Although there is really no clear way to make sure systems are booked correctly, here is something to keep in mind. If the components of a system are permanently attached, become one, lose the ability to be disposed of in separate pieces, and the value is over $5000 ( or $1500 for service or auxiliary departments), they are considered a fixed asset. If the pieces can be separated from the system and the value is less than $5000 (or $1500 for services or auxiliary departments), they should be considered a supply.
My department would like to send someone to Costco to make a purchase. How do we go about doing that?: OSU has a purchasing program with Costco whereby authorized departmental buyers may go to Albany or Eugene Costco and make purchases within their delegated authority for their department. To become an authorized buyer at Costco you must go to the PaCS Office at 644 SW 13th Street to sign up. When you sign up we will ask for the name of your department head so that we can contact them to verify that you are authorized to make Costco purchases. Once you are signed up at PaCS you should wait until the next day before going to Costco to make your purchase. You will need to take a hard-copy purchase order referencing your index number and your OSU staff ID. There's no need to list out the items you plan to purchase on the PO. You can download a hard-copy PO from the PaCS website here and may review the Costco contract here.
Our department would like to buy products from a specific local office supply company. We have been using our purchasing card to shop there, but would like to know if there's a chance they will soon allow direct bills.: It isn't likely we will allow that. Here's why: We have established contracts with companies that sell the same products as this particular company. These contracted vendors - Office Max, Office Dept, and Software House International - won the contracts through a competitive bid process. Although these contracts are "non-exclusive" (you may use other companies to buy the same goods), we, as business partners, are ethically bound to make every effort to support the use of these contracted companies by OSU departments. Therefore, it would go against our policy to support a non-contract merchant by allowing special payment terms. I know this can cause an inconvenience, but really, it is in the best interest of the University as a whole to support the companies with whom we've made agreements.
I need to ship out some very heavy items. Is there someone on campus who can help me do that?: Yes. You may contact Campus Freight at (541) 737-4019. They can help you find the best shipping rates and work with you to get the items to the required location. Also, if you have heavy items that are being shipped from another location to OSU and you want to save on freight charges, the University has negotiated discounts with several different shipping companies and can help you get the best rates.
I ordered some merchandise but when I received it I noticed it was damaged. What should I do?: Before you open the boxes that your merchandise has been shipped in, take note of the condition of the box. Is it damaged? If so, and if you feel the equipment inside may be damaged as well, contact Campus Freight at x7-4019. They will be able to assist with handling any freight claims. Also, be sure to note the package damage on any package receipt documents you are signing.