WHAT IS EVA?
eVA is the Commonwealth's Electronic Procurement System. It was deployed during the same time frame that University of Virginia purchased and deployed Oracle.
WHEN DOES UVA's NEW EVA REQUIREMENT BECOME EFFECTIVE?
For vendors, it became effective on October 1st.
After October 1st, any vendor that accepts an order from the University is agreeing to pay the eVA fee, because accepting the order is accepting the Terms and Conditions, and those include eVA terms. However, at this time there is no intention to send LPOs, Purchasing Card transactions, or Payment Vouchers entered before November 1st through eVA, so from
October 1st through October 31st, these Terms and Conditions will only be applied to Purchase Orders.
For departmental users, it is currently scheduled to become effective November 1st.
Specifics of how we will report transactions to the state still must be finalized. We have submitted our plan and await an acceptance. Any University purchase made after November 1st is subject to the eVA requirement.
WHO IS PAYING FOR THIS?
eVA Terms and Conditions include an agreement that the vendor pays eVA (not the University) a 1% fee on all transactions, capped at $500 per order. The vendor is invoiced for this by American Management Systems. The University does not receive any of this money. If the vendor refuses to pay the fee, this shortfall is made up by charging the fee to the agency (in this case the University) that made the purchase.
WHAT IF THE VENDOR ADDS THE 1% TO MY INVOICE?
Vendors can include the 1% as part of a price quote. Vendors will not be allowed to add the fee to an invoice after the fact. As always, price comparisons will be made, and vendors that choose to raise their prices may be at a disadvantage when compared to those that do not.
DOES THIS FEE GET APPLIED TO EVERY INVOICE?
This fee applies to all types of purchases of goods or services, except for Over-the-Counter (OTC) Amex purchases. Thus, it applies to orders placed by departments for direct payment (not reimbursements) on the Payment Voucher, Pcard purchases (other than OTC), LPOs, and Purchase Orders. It applies to purchases made by the libraries and Facilities Management also. It applies even to Sole Source and Emergency procurements. It does NOT apply to payments that are not subject to procurement regulations in the first place, such as research study participants, payments to students and employees, royalty payments, and grant subcontracts. There are a few categories of commodities that the state has agreed are exceptions to the requirement. So, the few vendors that deal only in those kinds of goods and services will not be affected, but this is a very small group.
HOW WILL OUR VENDORS BE NOTIFIED OF THIS MANDATE?
The website information for vendors and the published University of Virginia Purchasing Terms and Conditions have reflected this requirement since October 1st. The Vendor Registration form has also been changed to reflect this for new vendors. Procurement Services will perform a mass mailing to all of our vendors. This letter will basically say that by accepting an order from the University, the vendor will be accepting eVA terms and conditions. The letter will also instruct the vendor of forms they must complete if they choose not to accept these terms and conditions. We anticipate a high level of vendors accepting eVA terms in order to continue receiving our business.
CAN VENDORS FLAT OUT REFUSE EVA TERMS AND CONDITIONS?
If vendors are not registered with eVA, they must document with Procurement Services their refusal to accept eVA Terms and Conditions by a procedure outlined on our website on the Vendor Information page at http://www.procurement.virginia.edu/main/vendors/VendorInfo.html Vendors that do so may still receive orders from the University, but ONLY when there is a compelling reason for choosing such a vendor. Vendors that document their refusal should not be invoiced for the eVA fee; however, such vendors can expect to receive very few orders from the University. If a vendor chooses NOT to document the refusal with the University, the University, in turn, cannot prevent the vendor from being invoiced for the eVA fee by American Management Systems. Continued use of any vendor that fails to document its refusal and also refuses to pay the eVA fee when invoiced will be prohibited unless the vendor is the only source available for a needed commodity. Documentation of refusal must be completed before the order is placed in order to avoid the fee.
WHAT WILL THIS MEAN FOR DEPARTMENTS?
Beginning November 1st, departments will need to begin placing orders with eVA-accepting vendors unless there is a truly compelling reason not to do so. If departments use an eVA-refusing vendor, the University will have to pay the 1% and may charge it back to departments. Use of correct expenditure types will become very important. Other than that, if our plan is approved, day-to-day procedures will not need to change.
WHEN WILL DEPARTMENTS BE NOTIFIED?
Departments have been notified by e-mail, website announcements and updated procedures, Fiscal Administrators' meeting, and planned discussions with deans and department heads.
WILL THERE BE A CHANGE IN PROCESSING INVOICES?
Vendors will still send their invoices to us just as always and be paid from Accounts Payable just as they do now. Most of them will still receive their orders directly from us. Invoices come to the University and get paid by Accounts Payable. There is no change to the invoice and payment process.