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Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesDEFINITIONSThese definitions apply to terms as they are used in this policy.AgreementSee “Contract,” below.Authorized PurchasesPurchases that have contracts approved by Procurement Servicesand/or purchase orders in place prior to receiving goods or servicesand that comply with the buying method defined in the BuyingManual.BidA request for competitive quotation or proposal from a qualifiedvendor for the purpose of issuing a purchase order and contract forthe procurement of goods or services.Business ExpenseA charge for goods or services, whether paid, committed, or accrued,that fosters or supports the ongoing missions of the university. Thesecharges may include expenses (expenditures), debt servicepayments, and capital outlays.Conflict of InterestA situation in which a member of the university community has theopportunity to influence the university's business, administrative,academic, or other decisions in ways that could lead to personal gainor advantage. Refer to University Conflicts policy.ContractA written, legally binding agreement between Cornell and an externalsupplier.Diverse and Small BusinessAdministrationA federal program that encourages the engagement of entities thatare federally recognized as being “small, disadvantaged businessenterprises.”Emergency SituationThe occurrence of an unanticipated and sudden situation that is lifethreatening, catastrophic in nature, or involves pressing necessity forimmediate repairs, reconstruction, or maintenance in order to permitthe safe continuation of a necessary use or function, or to protect theproperty or the life, health, or safety of any person.e-procurementThe use of electronic systems to purchase goods and services and toprocess payments to third parties. Cornell’s e-procurement system isnamed e-SHOP.Foreign NationalAn individual who is not a citizen of the United States and does nothave a permanent resident status or an entity that does not have aplace of business or an office in the United States.GoodsTangible property for sale, lease, or rental (also known asmerchandise or commodity).Independent ContractorAn individual or entity engaged to perform services and commonlyreferred to as consultant, freelancer, contractor, etc. This serviceprovider is not supervised by Cornell employees.Memorandum ofUnderstanding (MOU) forSpend DelegationAn informal, written record containing the terms of a transaction oragreement signed between Procurement and Payment Services andone or more other unit(s) of Cornell University.Personal Gift/GratuityA gift in excess of 75.00 given to a Cornell employee for personaluse. Items not considered gifts/gratuities include occasional businessmeals, items of an advertising nature, and items that are generallydistributed to all potential customers.Preferred SupplierA supplier with which Procurement and Payment Services hasnegotiated and/or implemented a university-wide agreement, and thatProcurement Services endorses as the “best overall value” inproviding products, services, delivery, and customer service.7

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesDEFINITIONS, CONTINUEDProcurement AgentAn individual who is part of the procurement organization at Cornelland has been given transaction authority by the head of theprocurement function to negotiate, authorize, and execute contractson behalf of Cornell University.Procurement Card (pcard)A credit card issued by a financial institution to Cornell University tomake purchases directly from vendors. The individual named on thecard is authorized to make certain business purchases on behalf ofCornell University, and the bill is paid directly by the university.Purchase OrderA legally binding contract for purchase between the university and thevendor.ServiceAn activity in which labor is the major factor and not merely incidentalto the production, acquisition, and/or delivery of a good.SpendAn act of using funds to purchase goods or services, or the fundsspent by a unit through its procurement processes.SupplierSee “Vendor” definition, below.Transaction AuthorityThe authority to execute transactions or agreements with externalparties that commit the university (see University Policy 4.2,Transaction Authority and Payment Approval).Unauthorized PurchasesGoods obtained outside of the allowable purchasing method asdefined in the Buying Manual, or services received without a fullyexecuted contract and/or purchase order as defined in the BuyingManual.Examples of unauthorized purchases are those that are not incompliance with any aspect of this or other university policy, includingimproper bidding and/or making commitments for payments withoutproper authorization. Unauthorized purchases increase legal andfinancial risks for the university.UnitA college, department, program, research center, business servicecenter, office, or other operating unit.VendorAn individual or organization that provides specified and agreed upongoods and/or services to the university. May be used interchangeablywith “Supplier.”8

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesRESPONSIBILITIES—ITHACA CAMPUS UNITSDirector, Procurement andPayment ServicesNegotiate procurement terms and conditions, and issue contracts withexternal suppliers based upon price and best value.Commit the university to procure and pay for goods or services,where appropriate.Approve the execution of all purchases, where authority has not beendelegated.Delegate spending authority to units or individuals based on businessneeds specific to the unit(s).Execute a Memorandum of Understanding (MOU) when a businessneed exists to delegate the procurement function to units orindividuals outside of Procurement Services.In consultation with stakeholders and the delegated unit or individual,conduct annual reviews of delegations to assess the need forcontinuation and whether modification is needed.Withdraw delegations to units or individuals where there has been afailure to follow this policy.Establish procedures for documenting delegated procurementmethods in accordance with applicable regulations.Maintain and communicate updated procedural documentation in theBuying Manual.Where procedures established by delegated units differ from thoseoutlined in the Procurement Services Buying Manual, review suchprocedures, and approve, where appropriate.Maintain records of procurement transactions where responsibilitieshave not been delegated.Communicate procurement policy and procedure changes tostakeholders, including delegated units, customers, and suppliers, asneeded.Provide guidance and be a resource to Cornell University onprocurement-related matters.Unit Head with SpendDelegationFor his or her unit, perform the same procurement responsibilities asthe director of Procurement and Payment Services.Maintain current MOUs and oversee their correct implementation.Submit documentation, to the director of Procurement and PaymentServices, of procedures that differ from those in this policy.University ControllerMaintain records of disbursement and distribution transactions routedto the Office of the Controller for approval.9

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesRESPONSIBILITIES—WEILL CORNELL CAMPUS UNITSWeill Cornell Medical College(WCMC) ControllerNegotiate procurement terms and conditions, and issue contracts withexternal suppliers based upon price and best value.Commit the university to procure and pay for goods or services,where appropriate.Approve the execution of all purchases where authority has not beendelegated.Delegate spending to units or individuals based on business needsspecific to the unit(s).Execute a Memorandum of Understanding (MOU) when a businessneed exists to delegate the procurement function to units orindividuals outside of Procurement Services.In consultation with stakeholders and the delegated unit or individual,conduct periodic reviews of delegations to assess the need forcontinuation and whether modification is needed.Withdraw delegations to units or individuals where there has been afailure to follow this policy.Establish guidelines for documenting delegated procurement methodsin accordance with applicable regulations.Maintain and communicate updated procedural documentation in theBuying Manual.Where procedures established by delegated units differ from thoseoutlined in the Procurement Services Buying Manual, review suchprocedures, and approve, where appropriate.Maintain records of procurement transactions where responsibilitieshave not been delegated.Communicate procurement policy and procedure changes tostakeholders, including delegated units, customers, and suppliers, asneeded.Provide guidance and be a resource to Cornell University onprocurement-related matters, as needed.Maintain records of disbursement and distribution transactions routedto the Office of the Controller for approval.10

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesPRINCIPLESEthical and LegalConsiderations inProcurementThe university must comply with the laws governing its operation. Individuals andunits making purchases on behalf of the university must adhere to specific practicesin bidding, purchasing, and paying for goods and services with Cornell funds. Thesepractices are driven by compliance with applicable laws and regulations, universitypolicies, and sound and ethical business management.Detailed procedures for compliance with this policy are prescribed in the university’sofficial Buying Manual, which is maintained by Procurement and Payment Services.Standards of Ethical ConductUnits or individuals procuring goods or services on behalf of the university mustcomply with University Policy 4.6, Standards of Ethical Conduct in the course of alltransactions. Examples of illegal and unethical practices include engaging in pricefixing arrangements; bid rigging acts; agreements with competitors to divide orallocate markets or customers; falsifying accounting records; intentionalmisrepresentations to the university’s auditors; bribery; kickbacks; and politicalcontributions. In addition, all procurement professionals are expected to follow thestandard code of ethics established by the National Association of EducationalPurchasing (NAEP) (see Related Resources). Caution: Personal gifts or gratuities must be declined, and if received, returned tothe vendors or suppliers (see the Definitions section of this document).Purchases/Rebates/Free MerchandiseIf a vendor offers free merchandise or a rebate with purchase, that merchandise orrebate is the property of Cornell University. Rebates will be returned to the accountthat was utilized to pay for the purchase. Free merchandise will be turned over to theunit’s director/department head for appropriate distribution (e.g., departmental use,drawing for all faculty/staff, charitable donation).Conflict of InterestThe university expects its faculty and staff to avoid any real or potential conflict ofinterest when procuring goods or services on its behalf. For additional information,refer to university policies 4.6, Standards of Ethical Conduct, and 4.14, Conflicts ofInterest and Commitment.Authorized PurchasesUnits or individuals procuring goods or services on behalf of the university mustcomply with University Policy 4.2, Transaction Authority and Payment Approval.Business PurposeUnits and individuals must not make purchases from suppliers that are not for anapproved business purpose. (See University Policy 3.14, Business Expenses.)11

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesPRINCIPLES, CONTINUEDProcurement of goods or services for personal use is strictly prohibited, including theuse of Cornell discounts, tax-exempt status, etc. Procurement for the purposes ofresale must be made in accordance with the requirements of this policy. Allsubsequent resale activity must be done in accordance with University Policy 4.3,Sales Activities on Campus.Vendor SelectionThe vendor selection process at Cornell University must identify the best, mostqualified and/or suitable vendor to meet the needs of the university, while complyingwith all applicable laws and regulations. Vendor selection and approval must bemanaged by an authorized procurement agent. In many cases, vendors arepreselected based on campus input, screened, and negotiations have already beenconducted, resulting in preferred supplier agreements. Where such agreements exist,units must procure goods and services from these preferred vendors regardless ofdollar amount or procurement method, unless you are purchasing from a local ordiverse vendor in accordance with the purchasing hierarchy as a specified in BuyingManual section 102, Requirements for Vendor Selection and Order Creation. Insituations where a preferred supplier agreement does not exist and where thepurchase exceeds the formal bid limit, units must identify a vendor throughcompetitive bidding, unless an appropriate justification (as defined by the BuyingManual) and an alternative method of selection are specifically authorized by aprocurement agent or other university-endorsed contract, e.g., a New York Statecontract, Group Purchasing Organization, etc.Bidding ProcessCornell University will engage in competitive bidding in a manner that creates a fair,open, and competitive environment for qualified vendors, and that secures the bestvalue possible.Units must adhere to the following requirements when engaging the bid process:Obtain a minimum of three formal bids when a purchase will exceed the formal bidlimit as defined in the Buying Manual, except when purchases are made from apreferred vendor (other exceptions noted in Procurement Services’ Buying Manual;for example, state-appropriated and federal funds).EnvironmentallyPreferredProcurement1.Submit official bids using approved bid methods outlined in the BuyingManual.2.Share information equitably and in a timely fashion with all involved parties.Cornell University will identify and promote environmentally responsibleprocurement by featuring sustainable products and services, practices, processes, andprocedures.12

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesPRINCIPLES, CONTINUEDSupplier DiversityCornell University will promote the development of significant and mutuallybeneficial business relationships with diverse and local suppliers. Particularly whenutilizing federal and state funds to procure goods and services, the university willput forth a good-faith effort to utilize diverse businesses, when practical. For moreinformation on diverse suppliers, see www.sba.gov/services.Small BusinessAdministrationCornell University will promote equal access to Cornell University’s procurementopportunities.Relationships withSuppliersCornell will maintain the highest standards of business ethics and conduct wheninteracting with suppliers. Relationships with suppliers will support the promotionof environmentally preferred practices, diverse business utilization, and smallbusinesses.Delegated Authorityfor Purchases andContractsThe Board of Trustees has delegated transaction authority for procurement to variousindividuals and offices at Cornell University. Only these individuals are permitted tocarry out such delegated transactions. For a list of such transactions and theresponsible offices, please refer to Appendices B, C, and D of University Policy 4.2,Transaction Authority and Payment Approval. These individuals must follow therequirements of the policy governing transaction authority in carrying out suchdelegated transactions.In cases where transaction authority for procurement is delegated to ProcurementServices, the director of Procurement and Payment Services may further delegate thatauthority to certain individuals for particular transactions related to their functionalresponsibilities (see appendix B of this document).Unless delegated as above, the director of Procurement and Payment Services isauthorized and responsible for: Negotiating all procurement terms and conditions Committing funds on behalf of the university to procure and pay for goodsor services, including equipment Approving the execution of all purchases of goods and servicesWhere a business need exists to delegate the procurement function to units orindividuals outside of Procurement Services, the director of Procurement andPayment Services will execute a written “Memorandum of Understanding” (MOU),which will contain the specifics of the delegation, including the scope, reason, andtime limit for the delegation. In addition, the primary responsible party for thedelegation must be identified and agreed upon by both the unit and the director ofProcurement and Payment Services.13

Cornell Policy LibraryVolume: 3, FinanceResponsible Executive:Executive Vice President andCFOResponsible Office:Procurement and PaymentServicesIssued: February 9, 2009Last updated: April 15, 2020POLICY 3.25Procurement of Goods and ServicesPRINCIPLES, CONTINUEDProcurement Services will review the delegation periodically to assess the need forcontinuation of the agreement and whether any modifications or other alignment isneeded.Delegated units must develop procedures consistent with the requirements of thispolicy. If the procedures followed by the unit differ from those outlined in the officialBuying Manual, those procedures must be documented, attached to the MOU,approved by the director of Procurement and Payment Services, and are subject toperiodic review.Failure of a unit or individual to follow university policy may result in withdrawal ofthe delegated authorit

Travel and Meal Card _ 15 Contracts _ 16 . Americans with Disabilities Act of 1990 -PL 101-336 National Association of Educational Purchasing (NAEP) Code of Ethics . Business Meal Detail Form Certificate of Insurance Charge Dispute Form Corporate Card Member Agreement Form Independent Consultant Agreement OSP Request to Engage a .