Dual Review Exception Conditions

PROCUREMENT SERVICES

Introduction:

The Procurement Services managers and I have agreed to this exception for dual review. The intent is purely to improve efficiency without increasing contractual or financial risk in any substantial way. We are approving this exception on the basis that procurement professionals will use their discretion when following these instructions and if ANY doubt exists they will seek a dual review. Additionally, in any of these contracts/POs or renewals where there is a reasonable opportunity or need to go out for bid, to renegotiate etc. our expectation is that the manager, agent, analyst or assistant will take that appropriate action. I anticipate that we will carry out occasional self-audits to validate that we are complying with the spirit and intent of these dual review exemptions. Philip O’Keeffe

Dual Review Exception Conditions:

Described below are certain contract types that shall be excluded from the dual review requirement as prescribed in Procurement Services signature authority documents and contracting policy. These contracts are repetitive and typically low risk, low dollar value in nature.

Thisexemption to the dual review process is at the discretion of the Purchasing agent and appropriate Strategic Sourcing Manager, and within the maximum dollar value limits contained within the signature authority.

Hospitality: Contracts for hotel, catering, and other like venues reserved by departments for entertainment and meeting purposes. These contracts are usually very low risk, and for the vast majority for amounts of outlays of well below $5,000. Typical contract terms that do required review and possibly negotiation are on insurance coverage required by Purdue as the event sponsor and indemnification. Other terms are more about the actual arrangements being requested and agreed to. Sponsoring departments are responsible for finalizing those, and their fiscal review acts as confirmation of these arrangements.

Visiting lectures: These contracts are with speaking bureau/agencies who act as schedulers for individuals who give talks on various topics. Purdue departments make the needed arrangements, and the bureau/agency sends forward a contract reflecting the agreement. Very low risk, and in most cases low dollar. Top speakers can command much more money, but the basic contracting terms are similar regardless of amount expended.

Academic Travel: Inclusive of Study Abroad programs, recruiting travel where under the auspices of a sponsoring agency, and Student Clubs. Most of these contracts are with travel agencies or academic oriented tour arrangers who are doing the logistics of any academic tour. There can also be contracts with academic course sponsors as well as hotels, airlines, etc. Since these are almost all paid for by funds from the traveler, there is little to no financial risk to Purdue. Study Abroad processes review the appropriateness of the travel and the sponsoring agency.

Advertising: Low activity when compared to other categories. Also, advertising is not very expensive so there is low financial risk. Typical ad contracts involve limited newspaper, magazine, and broadcast media outlets. Contracting terms revolve around the scheduled placement, ad content, and recourse by Purdue if the ad is not presented when scheduled.

Exhibition Space: These contracts are where University departments have elected to take part in trade shows or other types of exhibitions at specific venues. The venue has full control over everything during the time of the exhibition, assuming no liability for participants, and the campus department wanting to be there either must comply or choose not to take part. Activity usually confined to those shows of a more academic orientation, however, increase activities of University outreach has resulted in an increase in activity at more informational shows.

Addendum: These contract documents are for additions of product to the original contracts. The addendum documents do not change the original contract language but only show that the product being added are held to the terms and conditions set forth in the original contract.

Renewals: These contracts would be annual renewals of maintenance for hardware or software. Some are single signature documents that look more like quotes with minimal if any changes to the original contract.

Equipment Services: These contracts are typically maintenance contracts for service on existing or new equipment with minimal terms and conditions. This may also include times & materials (short term) type contracts for repair on equipment that is not under a maintenance contract.

Purchase Orders (product or service): During the Purchase Order (PO) process, purchase order requests are routinely placed by internal clients and sent to Procurement Services. Procurement Services communicate these POs to the selected suppliers. By accepting the POs, Purdue suppliers implicitly agree to our Terms & Conditions (Ts&Cs), which are attached to the PO document as a URL. (These Ts&Cs is available online on the Purdue website at .

Occasionally suppliers reject our PO Ts&Cs and/or want alternate language included.

1. Buyers are normally experienced and qualified enough to make decisions based on the changes requested and with their signatory authority. Buyers will assess the risk (is it a one-time purchase? cost? continued risk or one-off situation? any special areas of risk
2. Should the Buyer have a high degree of confidence in their determination to accept the supplier Ts&Cs he/she will create a Change Notice in the PO to address the adjustment of the Ts&Cs and file a note to that effect;

OR

1. If the buyer is unsure of or uncomfortable with the changes, and/or if he/she determine there is a specific risk to Purdue for this transaction with the supplier Tcs&Cs, the buyer will engage a Contracting expert for consultation and final resolution (a dual review).

NOTE: Regularly commissioned/repeat suppliers who routinely reject Purdue Ts&Cs will be identified by the procurement professionals who will initiate the action to have a specific set of T&C created and agreed for those specific suppliers if Purdue wishes to continue to do business with them.

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