VIRGINIA PURCHASING DIVISION
APPENDIX M: THE PURCHASING DECISION PATH
Step One –
Determination of Need
agency must determine the product or service required, including quality level,
quantity, delivery requirement and estimated cost.
Step Two –
Availability through Internal Resources
the need is established, the agency must determine if the product or service is
available from internal resources, including Correctional Industries, the State
Use Program (Sheltered Workshops) or the West Virginia State Agency for Surplus
available through Correctional Industries or the State Use Program (Sheltered
Workshops), the product or service
must be acquired through this manner. However, if the product or service is
available, but not in the required time, quality, quantity or other factors, a
written waiver must be issued from Correctional Industries or the State Use
Program (Sheltered Workshops), in accordance with
Step Three –
Availability through Statewide or Agency Contract
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).
No agency may be exempt from using statewide contracts without prior written
approval from the Purchasing Director. When such prior written approval is
obtained, it must be retained with the file.
Step Four – Sole
Source and Emergency Purchases
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
Step Five –
Agency Delegated Purchasing Procedures ($25,000 or Less)
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)
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
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
Step Eight –
Purchase Order Encumbrance
Encumbrance of purchase orders ensures that the agency has the appropriate funds
to make the specific purchase.
Except in an emergency, the
date is the earliest date that a vendor may commence on any contract.
Step Nine –
Purchasing Division’s Legislative Rules and Regulations, 148 CSR 1,
provide participating vendors with the right to protest specifications and
purchase order awards.
Step Ten –
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 –
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
shall inspect all materials, supplies, and equipment upon delivery to ensure
compliance with the contract requirements and specifications.
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