West Virginia Purchasing DivisionWEST VIRGINIA PURCHASING DIVISION

PROCEDURES HANDBOOK

APPENDIX M: THE PURCHASING DECISION PATH

          Step One Determination of Need

       The agency must determine the product or service required, including quality level, quantity, delivery requirement and estimated cost. 
 

          Step Two Availability through Internal Resources

       Once the need is established, the agency must determine if the product or service is available from internal resources, including Correctional Industries, the State Use Law (Sheltered Workshops) or the West Virginia State Agency for Surplus Property.

       If available through one of the above internal resources, the product or service must be acquired through this manner. However, if the product or service is available, but not in the acquired time, quality, quantity or other factors, a written waiver must be issued from the internal resource in accordance with purchasing guidelines.
 

          Step Three Availability through Statewide or Agency Contract

       If the product or service is not available from internal resources, the agency must determine if that product or service is available from a statewide or agency contract. If available, the agency must purchase the product or service in accordance with purchasing guidelines as indicated within the statewide or agency contract. (Examples: office supplies, information processing equipment)
 

          Step Four Sole Source and Emergency Purchases

       If the product or service is not available through an existing statewide or agency contract, the agency must determine if the purchase will be competitive, sole source (only one vendor who can provide this product or service) or an emergency.
 

          Step Five Agency Delegated Purchasing Procedures ($25,000 or Less)

       If the competitive product or service is not available on a statewide or agency contract nor through an internal resource, the agency must utilize its delegated purchasing procedures IF the acquisition is estimated to cost $25,000 or less.
 

           Step Six Formal Acquisitions (Over $25,000)

       If the product or service does not meet the definition of sole source or an emergency, and is not available through internal resources or on an existing statewide or agency contract, it is considered a formal acquisition if it is expected to exceed $25,000. Product purchases most often utilize the Request for Quotation process. If the purchase is a service, the agency must determine whether the Request for Quotation or the Request for Proposal process should be used. Once the process is determined, the agency develops the requisition and forwards to the Purchasing Division for processing.
 

          Step Seven Evaluation and Award

       After the official bid opening, all bids or proposals (depending upon the bid process used) are opened, evaluated, and an award is made in accordance with purchasing guidelines.
 

          Step Eight Purchase Order Encumbrance

       Encumbrance of purchase orders ensures that the agency has the appropriate funds to make the specific purchase.  The encumbrance date is the earliest date that a vendor may commence on any contract.
 

          Step Nine Protest Procedures

       The Purchasing Divisions Legislative Rules and Regulations, 148 CSR 1, provide participating vendors with the right to protest specifications and purchase order awards.
 

          Step Ten Contract Management

       State agencies are responsible for establishing benchmarks for agency contracts to ensure that the product acquired or services to be rendered are offered in accordance with the contract specifications.

          Step Eleven Inspection

       Code of State Rules 148 CSR 1-4-16; 1-7-14: Director shall appoint inspectors to review and audit spending unit requests and purchases and other transactions and performance that fall under authority of the division

       Inspectors may also provide relevant training for agency personnel.

       Inspectors shall have access at any and all times to personnel, records, reports, and other documents, as needed

       Agency shall inspect all materials, supplies, and equipment upon delivery to ensure compliance with the contract requirements and specifications.

 

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