Georgia Tech Procurement Manual

Georgia Institute of Technology

Procurement and Business Services Division

Procurement Manual

Table of Contents

1.0 Introduction ……………………………………………………………………………………………………………Page 4

1.1 Overview

1.2 Audience

1.3 Contact

1.4 Abbreviations

1.5 Related Links

1.6 Overview of Purchasing at the Institute

2.0 Ethics, Conflicts of Interest, Gifts, and Confidentiality …………………………………………….Page 5

2.1 Overview

2.2 Conflict of Interest and Ethical Purchasing

2.3 Gift Guidelines

2.4 Confidentiality

3.0 Institute Procurement Principles …………………………………………………………………………….Page 7

3.1 Governing Policies & Procedures

3.1.1 Federal Guidelines

3.1.1.1 FAR & DFARS

3.1.2 State of Georgia Purchasing Policies

3.1.2.1 Order of Precedence

3.1.3 Georgia Board of Regents (BOR) Policies

3.1.4 Open Records Act

3.2 Procurement Authorization

3.2.1 Authority to Commit Institute Funds

3.2.2 Authority to Sign Contracts

3.3 Methods of Purchasing

3.4 Institute Process for the Procurement of Goods and Services

3.5 Sales Tax Exemption

3.6 Liability Insurance

3.7 E-verify

3.8 International Shipping: Exports and Imports

3.9 Audits

4.0 Supplier Selection ………………………………………………………………………………………………….Page 17

4.1 Overview

4.2 How to Add a New Supplier/Vendor to Workday?

4.3 Georgia Tech’s Supplier Diversity Program

4.4 Supplier Issues

4.5 Suspension and Debarment

5.0 Institute P-Card Program ………………………………………………………………………………………Page 19

5.1 Overview

5.2 Safeguarding of the Institute’s Assets

5.3 Card Issuance

5.4 Card Limits

5.5 Authorized Use of PCard

5.6 Prohibited Use of PCard

5.7 Limitations on Vendors

5.8 Training

5.9 Card Security

5.10 Documentation Requirements

5.11 Making a Purchase with a PCard

5.12 Returning Purchases Made with a PCard

5.13 Disputed Transactions

5.14 Reconciling PCard Transactions

5.15 Payment

5.16 Compliance Reviews

5.17 Violations of PCard Policy

6.0 Purchase Order Guidelines ……………………………………………………………………………………Page 30

6.1 Overview

6.2 Roles and Responsibilities

6.3 Purchase Order (PO) Creation Process

6.4 Blanket Purchase Orders

6.5 Approval Process

6.6 Receiving Goods

6.7 Returning Goods

6.8 Payment Terms

6.9 Invoice Processing and Credit Memos

6.10 Regular Maintenance and Closure of Purchase Orders

7.0 Supplier Contracts …………………………………………………………………………………………........Page 33

7.1 Overview

7.2 Types of Contracts

7.3 When is a Contract Required?

8.0 Restricted Purchases and Special Procurements …………………………………………………..Page 36

8.1 Exempt Purchases

8.2 Emergency Purchases

8.3 Radioactive Materials & Restricted Purchases

8.4 Used Equipment

8.5 Animals

8.6 Vehicles

8.7 Procurements for Personal Use Using State Funds

8.8 Unauthorized Purchases

Appendix …………………………………………………………………………………………………………………………..Page 39

1.0 Introduction

1.1 Overview

These guidelines identify the procedures applicable to purchasing goods and services at Georgia Institute

of Technology to ensure compliance with the Institute’s Purchasing Policy and state, federal government

and/or sponsor requirements.

Compliance with the procedures contained herein provides an efficient, effective and consistent

purchasing process and allows the Institute to achieve procurement related goals and demonstrate

compliance. Buyers should also be familiar with the procedures of their department, as well as observe the

requirements of any sponsor funding agreements.

1.2 Audience

The Institute’s Purchasing Policy and Procurement Manual procedures apply to all employees and any

personnel responsible for the acquisition of goods and services for the Institute.

1.3 Contact

Procurement & Business Services

Georgia Institute of Technology

711 Marietta Street, NW

Atlanta, GA 30332

(404) 894-5000

www.procurement.gatech.edu

1.4 Abbreviations

BOR – Board of Regents

CUPO - College and University Procurement Officer

DFARS – Defense Federal Acquisition Regulation Supplement

DOAA – Department of Audits and Accounts

DOAS – Department of Administrative Services

DPA – Delegated Purchasing Authority

FAR – Federal Acquisition Regulations

GPM – Georgia Procurement Manual

Institute – Georgia Institute of Technology

O.C.G.A. – Official Code of Georgia Annotated

OMB – Office of Management and Budget

SAO- State Accounting Office

SPD – State Purchasing Division

USG – University System of Georgia

1.5 Related Links

See Appendix

1.6 Overview of Purchasing at the Institute

At Georgia Institute of Technology, the day-to-day procurement activities are carried out by the Purchasing

Department. These duties include processing routine purchase orders, conducting bids for goods and

services, agency contract administration, purchasing card program administration, and reviewing the

Georgia Procurement Manual and communicating updates from the Department of Administrative Services

(DOAS) to staff and faculty when needed.

Georgia Institute of Technology is a unit of the Board of Regents of the University System of Georgia (BOR)

and an agency of the State of Georgia. All procurement activities are conducted according to the policies

and regulations established by DOAS, O.C.G.A. and the BOR. This manual is intended to provide procedural

guidelines at the local level and does not supersede any information set forth by higher authorities.

The Institute expects employees responsible for the acquisition of goods and services to make sound

purchasing and contracting decisions that conform to all relevant policies and procedures.

2.0 Ethics, Conflicts of Interest, Gifts, and Confidentiality

2.1 Overview

The purpose of this manual is to supplement Institute policy, for arranging outside activities and to provide

a mechanism for resolving potential conflicts of interest or buying ethics. Employees or personnel with

buying authority should be aware of the information contained herein related to ethical business standards,

conflicts of interest, gifts, and confidentiality. Adherence to the Institute’s Purchasing Policy and USG Ethics

Policy shall govern all procurement transactions. Potential business ethic violations must be reported

through appropriate channels to be properly evaluated and addressed.

Questions related to ethics violations can be directed to GT Office of the General Counsel or by calling

EthicsPoint Hotline at 1-866-294-5565.

2.2 Conflict of Interest and Ethical Purchasing

The executive officers, faculty, staff, students, employees, and affiliated individuals at Georgia Tech are

expected to abide by its policies and Code of Ethics, as well as any state, federal and, when applicable,

international laws, in the performance of job-related duties. Specifically, we will:

 Abstain from inappropriate activities that may affect the conscientious performance of our duties

or that result in illicit personal gain.

 Refuse to accept, for ourselves or our families, any favors, gifts, or privileges that might be

construed by reasonable persons as influencing the performance of our assigned Institute duties.

 Behave in a manner consistent with our institutional values.

 Make no unauthorized commitments on behalf of the Institute.

 Report violations of the Georgia Tech Code of Ethics through appropriate channels.

Real, perceived or potential purchasing conflicts of interest must be reported to GT Office of the General

Counsel or by calling EthicsPoint Hotline at 1-866-294-5565.

2.3 Gift Guidelines

Georgia Tech’s policy is that the practice of accepting gifts or gratuities is unnecessary, undesirable, and

contrary to the interest of the Institute.

In order to avoid a conflict of interest, or the appearance of a conflict of interest, no Institute employee

shall solicit any gift, favor, loan, gratuity, reward, or promise of future employment that might influence

or appear to influence the judgment or conduct of the employee vis-à-vis Institute business. No gift may

be accepted from any source that may currently be participating in a competitive bid or negotiations as it

is the Institute’s objective to award business to suppliers based on considerations such as quality, service,

competitive pricing, and technical abilities.

Questions about the value or appropriateness of a gift or invitation should be directed to Georgia Tech’s

Department of Internal Auditing.

2.4 Confidentiality

All Institute employees and personnel responsible for the acquisition of goods and services in the

Institute’s decentralized purchasing environment must be sensitive to issues of confidentiality. It is

improper and prohibited to discuss and/or share confidential and/or proprietary information with or

among suppliers.

Questions regarding confidentiality or proprietary information should be directed to the Purchasing

Department at Georgia Tech by submitting a ServiceNow ticket via Georgia Tech’s Services and Support

website.

3.0 Institute Procurement Principles

3.1 Governing Policies & Procedures

3.1.1 Federal Guidelines

Georgia Tech must conform to the minimum procurement standards set forth in the Office of

Management and Budget (OMB) issued guidance under 2 CFR Part 200—Uniform Administrative

Requirements, Cost Principles and Audit Requirements for Federal Awards (UG) in order to

obtain/maintain an approved purchasing system and to maintain a continued flow of federal

research funding.

3.1.1.1 FAR & DFARS

Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulation

Supplement (DFARS) are a set of regulations governing all acquisitions and contracting

procedures in the Federal government. When a solicitation or purchase order is in support

of a government contract, applicable commercial provisions apply. Click here for more

details on the FAR/DFARS Clauses applicable to orders and solicitations at Georgia Tech.

3.1.2 State of Georgia Purchasing Policies

The Department of Administrative Services (DOAS) regulates the procurement activities of state

agencies within Georgia. DOAS was created by the Official Code of Georgia Annotated (O.C.G.A.)

Section 50-5-1, and operates as an agency of the executive branch of state government. The State

Purchasing Act authorized DOAS as the unit of state government responsible for the establishment

of contracts, leases, purchase orders or other agreements for the procurement of supplies,

materials, equipment, services, and construction, and for overseeing statewide contracts and other

contracts serving multiple state entities. DOAS created the State Purchasing Division (SPD) to

administer these procurement duties and functions on its behalf.

The Georgia Procurement Manual (GPM) is the written reference guide to applicable Georgia law

governing state government purchasing. All purchases made by Georgia Tech must adhere to the

provisions of the Georgia Procurement Manual (GPM) unless exempted under Section 1.2 of the

manual. Please refer to the GPM for specific purchasing policies and guidelines.

3.1.2.1 Order of Precedence for Purchasing

The Georgia Department of Administrative Services, State Purchasing Division, has

established a mandatory order of precedence for all purchasing activities within the state.

There are four tiers which determine the available supplier options. The order of

precedence applies to purchases made by purchase order and by P-Card.

 Mandatory Statewide Contracts (Tier 1) – Statewide mandatory purchase

contracts are established by State Purchasing for use by all state entities.

Mandatory contracts must be used when purchasing the applicable goods

or services. Examples: Furniture, Computer Peripherals and Audio Visual,

Multifunctional Devices (copiers), Vehicles, etc.

 State Entity or Agency (GT) Contracts (Tier 2) – Georgia Tech develops

agency level contracts through a competitive bid process. Establishing a

contract allows Georgia Tech to establish an ongoing relationship with a

vendor and alleviates the need to conduct annual bids for the same

services. Georgia Tech may not create an agency contract if a mandatory

statewide contract is already in place. Agency contracts may be renewed

up to four (4) times, but may not exceed a total of five (5) years.

 Statutory Sources (Mandatory) (Tier 3) – Certain products and services

have been certified as mandatory. Specifically, state entities are required

by statute to purchase certain products and services from Georgia

Correctional Industries Administration (GCI) and Georgia Enterprises for

Products and Services (GEPS) where the products/services being

purchased have been certified in writing as further described in Section

1.3.3.1. - Georgia Correctional Industries Administration and Section

1.3.3.2. - Georgia Enterprises for Products and Services of the Georgia

Procurement Manual. In the event both GCI and GEPS offer certified

products/services capable of meeting the state entity’s needs, the state

entity has its choice of either source.

 Convenience Contracts (Tier 4) - Convenience Contracts may be utilized by

state entities and do not require a bid process. These are State purchasing

contracts and the state has already performed the bid process but has

determined that these contract items are not mandatory, leaving the state

entity the option to seek other sources. Note: Purchases made from

convenience contract vendors are not subject to bid requirements

because this has already been done by the state. Purchases made from

non-contract vendors must be evaluated and bid when necessary.

 Open Market (Tier 4) – Open market purchases or transactions are those

made to non-contracted vendors. Open market orders may be a result of

small dollar transactions that do not require bidding. All open market

transactions are evaluated to determine if competitive bidding is required

or if bidding would achieve better pricing for the state entity.

3.1.3 Georgia Board of Regents (BOR) Policies

As a unit of the Board of Regents of the University System of Georgia, and a State Agency, Georgia

Tech is expected to strictly adhere to policies set forth by BOR. The following is taken directly from

the “General Policy 7.7.1” of the Board of Regents of the University System of Georgia:

“The USG and all of its institutions shall use DOAS for all purchases unless granted

permission by DOAS to make purchases directly. USG institutions shall comply with the

various statutes, rules, and regulations governing purchases with state-appropriated funds

and purchases from funds to which the USG has title. All purchasing by USG institutions

shall be centralized under the direct management and control of the chief business officer

of the institution concerned.”

The purchasing guidelines established by the Board of Regents are contained within the Business

Procedures Manual, Section 3.

3.1.4 Open Records Act

All public records of an agency are subject to inspection under the provisions of the Open Records

Act. If Georgia Tech receives a request for a record or a procurement file, the individual in control

of such public record or records shall have a reasonable amount of time to determine whether or

not the record or records requested are subject to access under this article and to permit

inspection and copying. In no event shall this time exceed three business days. Where responsive

records exist but are not available within three business days of the request, a written description

of such records, together with a timetable for their inspection and copying, shall be provided within

that period. However, records not subject to inspection under this article need not be made

available for inspection and copying or described other than as required by subsection (h) of Code

Section 50-18-72. Additionally, no records need be made available for inspection or copying if the

public officer or agency in control of such records shall have obtained, within that period of three

business days, an order based on an exception in the article of a superior court of this state staying

or refusing the requested access to such records.

In tandem with the Legal Office, the Purchasing Department is responsible for handling open

records requests for solicitations developed by Georgia Tech. For onsite inspections, a Georgia

Tech employee must be present during the time the records are inspected. If the requestor prefers

to receive copies of the records, Georgia Tech may charge the requestor a reasonable amount for

copying, administrative and research costs.

All bid information, including supplier names and pricing, is subject to open records requests.

Suppliers should specifically identify and mark any proprietary information; however, any marked

materials will be evaluated by the Georgia Tech Purchasing staff to verify that an exemption applies.

Open records requests made during the protest period of a current solicitation should be

forwarded to the appropriate Procurement Contracting Officer. Open records requests after the

protest period of a solicitation should be forwarded to Georgia Tech’s Legal Affairs Department.

3.2 Procurement Authorization

3.2.1 Authority to Commit Institute Funds

Purchasing authority is granted to Georgia Institute of Technology, College and University

Procurement Officer (CUPO), by the State Department of Administrative Services (DOAS), State

Purchasing Division (SPD) and the Board of Regents (BOR). In accordance with O.C.G.A Section 50-

5-69, SPD may, at its discretion, delegate purchasing authority to state entities to permit those

state entities to make purchases on their own behalf.

The Georgia Tech E-Procurement System (Workday) and the GT PCard are the Institute’s approved

buying methods for procurements from external suppliers. Use of the appropriate buying tool must

be in compliance with Institute policies and procedures. The statewide business process policy and

procedure distributed by the State Accounting Office (SAO) requires a purchase order for all

purchases or obligations to purchase goods and services greater than $2,500 except for exempt

purchases outline in Section 8.1.

Through the Purchasing Card Program, this authority has been extended to department level

cardholders and approvers. Exceptions may be made for purchases from statewide purchase

contracts. Participants in the program are required to follow all purchasing policies and guidelines

as established by DOAS, the Board of Regents, and Georgia Tech.

3.2.2 Authority to Sign Contracts

The Board of Regents of the University System of Georgia has authorized the President of Georgia

Tech to sign specific contracts on behalf of Georgia Tech. The purchasing authority for Construction

and Public Works services vested in Georgia Institute of Technology is delegated by the Board of

Regents (BOR) of the University System of Georgia. Georgia Tech is exempt from DOAS purchasing

regulations in this area; however, BOR regulations must be followed. Construction and Public

Works purchases are the responsibility of the Georgia Tech Facilities Management Department.

For all other purchasing related contracts such as office supplies, research supplies and equipment,

technology items and equipment, etc., DOAS has authorized the College and University Purchasing

Officer (CUPO) (or his/her designees) the authority to sign.

No member of the Institute, faculty or staff may sign a contract without specific written

authorization from the President (Delegation of Presidential Authority Memorandum). State law

provides that persons entering into contracts without complying with all applicable State laws and

regulations become personally liable for any amounts due under those contracts.

Please be aware that vendor contracts frequently contain language that is unacceptable to the

State of Georgia. Any contract, received by the Purchasing Department will go through a thorough

review process by the appropriate contracting officer.

3.3 Methods of Purchasing

The following methods may be used for purchases on behalf of Georgia Tech:

 Purchase Orders (PO)

Legally binding (with terms and conditions) commercial documents used to control

purchasing and to facilitate payments. PO indicates the supplier, types, quantities and

agreed prices for the products or services the supplier will provide to the Institute.

 Purchasing Card (PCard)

A card issued to authorize employees to make allowable purchases of goods and services

on behalf of the Institute.

 Expense Reimbursements

Use of personal funds for the purchase of goods incurs additional cost due to sales tax and

non-contract pricing, in addition to the loss of procurement data metrics necessary for

strategic sourcing activities. Reimbursements for goods and supplies should only be made

for small dollar items less than $500 where it is not practical or possible to make the

purchase using standard Institute procurement processes. Purchases over $500 that have

not been approved by the Director of Purchasing may be classified as personal purchases

and may not be reimbursed.

Payments for personal services (consultants, temps, awards and prizes, rentals, royalties,

and honoraria) must be processed through the Institute via the Procurement and Business

Services’ procurement process, regardless of dollar amount, to ensure compliance with IRS

and other federal regulations.

Allowable Exceptions are:

 Travel expenses for individuals

 Conference and meeting registration fees

 Agency fund (as defined in the chart of accounts) purchases

 Study abroad expenses incurred during overseas activity

 Small dollar research participant payments (< $75/person) where check payment

is not practical or possible

 Allowable restaurant meal purchase associated with an official GT

conference/event/meeting

 STRAP tuition reimbursements

 CRC/ORGT reimbursements for trip leaders (Alaska, National Parks, etc)

 Allowable food/beverage supplies purchased at retail store

 Business center supplies/printing/shipping incurred while on travel status

3.4 Institute Process for Procurement of Goods and Services

The official Institute process for the procurement of goods and services is categorized into the following

areas unless identified in Section 8.1 Exempt Purchases:

 Catalog purchases within the scope and limits of a Georgia Tech or State of Georgia contract

 Non-Catalog purchases within the scope and limits of a Georgia Tech or State of Georgia contract

 Non-contract purchases less than $25,000 which are delegated to the departments/units

 Non-contract purchases $25,000 or greater which require formal bidding or publicly posted sole

source justification (Must be done by the Purchasing Department)

 Exempt purchases defined in Section 8.1, at the discretion of the Purchasing Department, may

require bidding/sole source justification

A quotation from the supplier/vendor should be attached to the requisition for all non-catalog purchases.

For low dollar purchases of items found on vendors/suppliers websites, the Purchasing Department may

accept alternate documentation in lieu of a formal quote. Please contact the Purchasing Department in

these cases for acceptable alternative documentation.

3.5 Sales Tax Exemption

As a unit of the State of Georgia, Georgia Institute of Technology is exempt from the payment of Georgia

Sales and Use Tax. Generally, the Institute is not liable for sales taxes of other states if the transaction, or

delivery of goods takes place in the State of Georgia. If title passes in another state, the Institute may be

liable to pay taxes if a specific tax exemption is not obtained. Georgia Tech is exempt from sales and use

tax for the states of Florida, Ohio, Tennessee, and Texas for goods delivered to units within those states.

Georgia Tech has a partial exemption from sales and use tax for the state of California for manufacturing,

research, and development equipment.

Invoices charging sales tax should be approved for the amount less the sales tax if the goods are shipped

to a state that allows tax exemption.

Individual payments for petty cash purchases and travel are not exempt from sales tax as the transaction

was with an individual, not Georgia Tech.

Employees traveling within the State of Georgia on official business are exempt from local, county and

municipal excise tax on lodging in accordance with Act No. 621. The "State of Georgia Exemption of the

Local Hotel/Motel Excise Tax Form" should be utilized to obtain an exemption. The form should be

submitted when the traveler initially checks into the hotel.

Questions regarding sales tax exemption should be directed to Georgia Tech’s Accounts Payable Department

by submitting a ServiceNow ticket via Georgia Tech’s Services and Support website.

3.6 Liability Insurance

Unless otherwise specified in the Contract, Purchase Order or by Contracting Officer, the contractor

(vendor/supplier) providing services to Georgia Tech must, at its own expense, procure and maintain,

without interruption during the entire term of the contract, insurance of the kinds and limits listed below.

Certificate(s) of insurance issued by the contractor’s insurance carrier(s) must be furnished to Georgia

Institute of Technology before beginning work and must name Board of Regents of the University System

of Georgia, by on behalf of Georgia Institute of Technology, including its officers, employees and agents as

Additional Insureds on the General Liability and Business Automobile Liability policies. The insurance

coverage required under the contract are minimum limits required and are not intended to limit the

responsibility or liability of the Contractor. Contractor may not utilize a subcontractor to fulfill its obligations

of the contract, unless permission is received in writing from the Director of Purchasing, or his official

designee. If any subcontractor is used to fulfill the contract, they or the Contractor on their behalf, must

carry the same coverage and limits of insurance outlined below. It is the Contractor’s responsibility to

ensure compliance of this requirement.

Workers’ Compensation and Employers’ Liability Insurance

a) Workers’ Compensation Insurance must be written in accordance with statutory coverage required by

the State of Georgia. A self-insurer must provide a certificate from the Georgia Board of Workers’

Compensation stating contractor qualifies to pay its own worker’s compensation claims.

b) Employer’s Liability Insurance shall be written with minimum limits of:

 Bodily Injury by Accident - $1,000,000 each accident

 Bodily Injury by Disease - $1,000,000 each employee

 Bodily Injury by Disease - $1,000,000 policy limit

Commercial General Liability Insurance

Commercial General Liability Insurance must be written on an occurrence form and must provide at

minimum the limits listed below. In addition, the Commercial General Liability Insurance Policy must

provide coverage for Contractual Liability and all activities to be performed by the contractor.

 General Aggregate Limits to apply per project/location: Each Occurrence - $1,000,000

 Damage to Rented Premises - $ 300,000

 Personal & Advertising Injury - $1,000,000

 General Aggregate - $2,000,000

 Products-Completed Operations Aggregate - $2,000,000

Business Automobile Liability Insurance

Business Automobile Liability Insurance must be written to include coverage for bodily injury and property

damage arising from ownership, maintenance or use of any automobile, including all owned, non-owned

and/or hired automobile.

 Minimum limit - $1,000,000 Combined Single Limit

Commercial Umbrella/Excess Liability Insurance

 Minimum limit - $2,000,000 Each Occurrence

 Minimum limit - $2,000,000 Annual Aggregate

Professional Liability Errors and Omissions Insurance (may be required on a case-by-case basis)

 Minimum limit - $3,000,000

All insurance coverage must be issued by insurance carriers licensed by the Insurance Commissioner to

conduct business in the State of Georgia and have a minimum current A.M. Best rating of A-, Class VII or

better in the most recently published A.M. Best.

Questions regarding liability insurance should be directed to Georgia Tech’s Director of Insurance and Assets

by submitting a ServiceNow ticket via Georgia Tech’s Services and Support website.

3.7 E-Verify

Vendors who provide services greater than $2,499.00 are required by state law to complete an E-Verify

affidavit, before the services are procured. If a vendor has no employees, O.C.G.A.13-10-91 allows for

contractors to submit a driver’s license in lieu of the affidavit. The driver’s license must be issued by a state

within the United States that verifies lawful immigration status prior to issuing the driver’s license.

Note: Services that are not on a statewide or agency contract require an e-verify affidavit for each purchase

order.

Common purchases that require an e-verify affidavit are listed in the table below.

Types of Purchases that are "Physical Performance of Services"

Considered a service and

therefore requires an E-verify

Affidavit?

Armored Car Services

Yes

AV Installations

Yes

Call Center Services

Yes

Catering Events

Yes

Chartering Services

Yes

Chemical Laboratory Services

Yes

Composition of an original work of art

Yes

Construction

Yes

Consulting Agreements

Yes

Copier Leases (no maintenance or maintenance less than $2500)

Copier Maintenance (for GT owned copiers - not for leased copiers under

statewide contract)

Yes

Elevator Maintenance

Yes

Employment Agency and Search Firm Services

Yes

Event Planning Services

Yes

Field Research Services

Yes

Fire Alarm System Maintenance and Testing

Yes

Hazardous Material Services - includes biomedical waste removal

Yes

Honoraria

Hospitality Services (including wine and cheese events)

Yes

Hotel and Conference Rentals (without catering/ AV Services or with

catering/ AV Services that are less than $2500)

Hotel and Conference Rentals which include catering and AV services

(recommend getting a quote which show separate costs for room rental

and catering/AV services)

Yes

Interior Design

Yes

Interpreters

Yes

Janitorial Services

Yes

Landscaping Services

Yes

Laundry and Linen Cleaning Services

Yes

Memberships

Mailing Services

Yes

Management Services (examples: Bookstore management, project

management, etc.)

Yes

Moving Services

Yes

Parking Services/ Maintenance - including striping and pressure washing

Yes

Pest Control

Yes

Photography

Yes

Piano and Instrument Tuning Services

Yes

Public Works

Yes

Repairs to Equipment which involve billable labor (if parts are involved -

recommend getting a quote which shows separate costs of labor and

parts)

Yes

Registrations (conference etc.)

Rent Payments

Sanitizing and Disinfecting Services

Yes

Security Services

Yes

Seeding Services

Yes

Teaching and Instructional Services

Yes

Termite Inspections

Yes

Testing and Calibration Services

Yes

Tour Guide Services

Yes

Towing and Hauling Services

Yes

Utility Payments

Waste and Trash Services

Yes

Wood Grinding/Mulching Services

Yes

E-Verify forms and instructions are available on Georgia Tech’s Procurement website.

16 
 
 
3.8 International Shipping:  Exports and Imports 
Exports 
Exports includes the transfer of controlled physical items to foreign countries or to non-U.S. persons in or 
out of the United States, transfer or disclosure of  information or  technical data (even visual disclosure 
through observation) to foreign countries or non-U.S. persons in the United States or abroad, and provision 
of services outside the United States or to entities outside the United States. 
The process for export approval is listed below.  
  Check the ITAR Munitions List and the EAR Commerce Control List to determine whether an item 
is controlled and therefore requires an export license. 
  Complete the International Shipping Review form and return it to the ORIA export control staff for 
review and approval. 
  Visit Georgia Tech's Material Transfer Agreement (MTA) website to determine if a MTA is needed, 
and to initiate an agreement if needed. 
When  an  international  shipment  is  approved  for  export,  the  department  will  be  notified  about  the 
requirement for Electronic Export Information (EEI) filing. This is necessary if an export license is required 
or if the export value exceeds $2,500. Always provide a copy of the EEI filing to the ORIA export control 
staff and to [email protected]. 
Imports 
Please contact [email protected] for all imports.  
Also, contact the appropriate Georgia Tech compliance office if an import involves research with: 
  Human subjects 
  Recombinant DNA (rDNA) and synthetic nucleic acid molecules 
  Vertebrate animals 
 
3.9 Audits 
Georgia Tech’s Purchasing Department will participate in various audits, including Contractor Procurement 
System Reviews (CPSR) conducted by the Office of Naval Research, the Georgia Department of Audits and 
Accounts  (DOAA),  the  State  Accounting  Office  of  Georgia  (SAO),  other  sponsors,  and  outside  auditors 
engaged by the Institute. The purchasing department will use its best efforts to remain compliant with all 
requirements. 
 
 

4.0 Supplier Selection

4.1 Overview

Suppliers must be qualified or meet qualification standards defined in this manual to provide required

materials or services at minimum risk to the Institute. Suppliers must satisfy price reasonableness, quality,

acceptance of reasonable terms and conditions of sale, delivery performance and ethical business

practices.

4.2 How to Add a New Supplier/Vendor Workday?

The process for adding a new Supplier/Vendor to Georgia Tech’s E-Procurement System (Workday) is listed

below. Note: Suppliers/Vendors are added to the e-procurement system by invitation only. Quality,

performance, and terms and conditions of a vendor are not vetted or negotiated during this process.

 Requests to add a new vendor to Workday should be submitted via ServiceNow. Be sure to include

the supplier/vendor’s name.

 Once the vendor profile registration link is received from the Vendor Help Team, forward the link

to the supplier/vendor point of contact.

 Once the supplier/vendor has completed the vendor profile form, their information will be

reviewed and approved by the Vendor Help Team and added to the e-procurement system

(Workday).

 A status notification will be sent to the supplier/vendor and the GT employee who initiated the

request.

Questions regarding supplier/vendor setup should be directed to the Georgia Tech Vendor Help Team by

submitting a ServiceNow ticket via Georgia Tech’s Services and Support website.

4.3 GT Supplier Diversity Program

Georgia Institute of Technology works with minority, small, and women owned businesses to ensure

business requirements are clearly communicated. We are committed to being socially responsible and we

take great pride in creating success stories within our minority, small, and women owned businesses supply

base. Administered by the Purchasing Department, the Supplier Diversity Program is designed to maximize

opportunities for meaningful and mutually beneficial business relationships with minority, small, and

women owned businesses that can add value to our institution and help us achieve and maintain our high

standards in research and education.

Faculty and staff are encouraged to support Georgia Tech’s economic inclusion strategies. It is our

institution’s goal to identify and include qualified diversity suppliers when we purchase the products and

services. The Diversity Suppliers webpage provides details about our minority, small, and women owned

businesses by commodity or service at Georgia Tech.

Suppliers who are capable of fulfilling our requirements are encouraged to contact the Georgia Tech

Purchasing Department at (404) 894-5000 to schedule an appointment to discuss potential business

opportunities with the Institute.

4.4 Supplier Issues

The department or campus unit experiencing dissatisfaction with a supplier’s performance must notify the

appropriate Contracting Officer in the Purchasing Department, in writing, of the complaint. The following

information must be included:

 Supplier Name

 Supplier Contact Information

 PO number, contract number, invoice number, or other supporting documentation

 Good or service procured

 Specific performance details and reasons for dissatisfaction

The Purchasing Department will review the facts through discussions with the requesting department or

campus unit to determine the appropriate course of action.

4.5 Suspension and Debarment

The State Purchasing Division Deputy Commissioner may debar a supplier for any of the causes listed below:

 Violation of contract provisions

o Deliberate failure without good cause to perform in accordance with the specifications or

within the time limit provided in the contract

o A recent record of failure to perform or of unsatisfactory performance in accordance with

the terms of one or more contracts or purchase orders

 Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or

destruction of records, receiving stolen property, or other offense indicating a lack of business

integrity or business honesty which currently, seriously, and directly affects responsibility as a state

supplier

 Conviction under state or federal antitrust statutes arising out of the submission of solicitation

responses

 Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain

a public or private contract or subcontract, or in the performance in the contract or subcontract

 Any other cause so serious and compelling as to affect responsibility as a state supplier, including

debarment by another government entity

 Any violations of the provisions of (O.C.G.A.) Sections 45-10-20 through (O.C.G.A.) Sections 45-10-

28 which govern conflicts of interest

5.0 Institute P-Card Program

5.1 Overview

The Georgia Tech Procurement Card (PCard) is a purchasing card that may be used by Institute employees

for authorized business purchases within the delegated authority limit. The Pcard is a tool for purchases of

non-equipment, business related items under the cardholder’s single transaction limit in the approved

PCard Plan (for vendors who are not currently setup in Georgia Tech’s E Procurement System or for vendors

with whom we expect to only make one purchase). Effective, April 1, 2017, the State of Georgia PCard

Policy changed which requires all State Agencies participating in the PCard Program to have an approved

PCard Plan. This PCard Plan was signed off by the Institute’s President and the Institute’s Chief Financial

Officer (Chief Business Officer) and approved by the Department of Administrative Services in conjunction

with the Office of Planning and Budgeting at the State level. Cardholders must follow State of Georgia

(DOAS), Board of Regents (BOR), and Georgia Tech purchasing policies and strive to obtain the maximum

ultimate value for each dollar of expenditure. Additionally, Institute employees and officials assigned PCard

responsibilities should familiarize themselves with the provisions of public law governing PCards to include

Title 50, Chapter 5, Article 3 of the O.C.G.A.

The use of the PCard is beneficial to the individual purchaser, the purchaser's department, the Institute,

and the suppliers. It simplifies the purchasing and payment process and expedites receipt of goods. The

PCard provides significant cost savings to Georgia Tech while providing electronic control and

accountability. Any vendor that accepts Visa will accept the PCard.

5.2 Safeguarding of the Institute’s Assets

The following are steps that should be taken to safeguard the Institute’s Assets.

 Rebates or refunds from vendors shall be the property of the Institute and shall be paid promptly

into the Institute’s accounts.

 Criminal and consumer credit checks will be performed in accordance with BOR and DOAS policy.

The Institute will ensure that the results of background checks are provided the privacy protections

required by law. New cardholders, are required to have criminal and consumer credit checks prior

to being issued a PCard. Additionally, credit checks must be done again at the time of card renewal.

 Cardholders will be required to personally reimburse the Institute for purchases made that are not

appropriately documented. Approving officials may be required to reimburse the Institute if the

approving official approved the purchase.

 Habitual loss of receipts/documentation may require personal reimbursement by the cardholder

and/or approver and may also result in termination of the PCard.

 Items of value purchased for distribution to students are allowed only in support of the educational

objectives of the Institute. Additionally, the cardholder must maintain sufficient documentation to

identify the individual receiving an item. The requirement to track individual recipients does not

apply to items of de minimis value.

 Departments must ensure that PCards are promptly cancelled upon employee transfer or

termination.

 PCard purchases can only be shipped to GT addresses. Items shipped to non-GT locations must

have written approval from the cardholder’s supervisor and the PCard Administrator.

 PCard Administration will review cardholder accounts annually to identify and close unused or low-

usage cards for which there is no longer a business need.

5.3 Card Issuance

Authorization

PCards may be issued to “permanent, regular-status” employees only. No student employees, affiliates or

Tech Temps may be issued cards. Only one card is allowed per employee.

A PCard Request Form is completed by/for the employee and then signed by Department Head to indicate

authorization, cardholder spending limits, and cost allocation information. Spending limits should be

determined based on the cardholder’s job responsibilities, anticipated card usage levels, historical spending

patterns, and budget limitations. The completed form with the required signatures is submitted to PCard

Administration by the PCard Coordinator. After all background checks have been verified, the request will

then be reviewed and approved by the CFO. Upon approval by the CFO, the PCard Administrator will order

the card from the bank and maintain the form in a cardholder file.

Distribution

PCard Administration will notify the cardholder and appropriate PCard Coordinator when the card has

been received and all documents are ready. Cards will be distributed to employees after completion of

appropriate background checks, cardholder training and submission of the signed Employee Agreement

Form.

Employee Agreement Form

Before being issued a PCard, a completed Employee Agreement Form, signed by the employee and

Department Head must be submitted to Business Services. By signing the form, the employee

acknowledges:

 Receipt of training and understanding of the regulations for use and protection of card.

 Understanding of responsibilities in reconciliation process and billing disputes.

 Understanding and acceptance of consequences for PCard violations.

5.4 Card Limits

Institute Limit

Since Georgia Tech, not the individual employee, will pay for the purchases made with the card, additional

controls have been added to the card accounts. These limits are imposed at the point of sale when the card

is swiped.

The PCard may be used for purchases not to exceed the cardholder’s single transaction or cycle limit in the

PCard Plan. The cardholder’s Department Head working with the PCard Coordinator may identify additional

limits based on card usage and budget limitations. These limits should be noted on the approved Request

Form and kept in the cardholder’s file.

Cardholder Spending Limits

Adjustable limits per card are:

 Dollar amount limit per transaction

 Dollar amount limit per cycle (month)

Requests for changes to card limits should be submitted on the “Limit Change Request” form by the

Department Head or PCard Coordinator via email to PCard Administration. Change requests will be kept in

the cardholder’s file. Additional information can be found at the link to PCard Requisition Instructions and

Exceptions for the requisition process and limit increases. The form is available online in the Forms section

of the Business Services website at: http://www.procurement.gatech.edu

Merchant Activity Type Limits

Specific types of businesses identified by a Merchant Category Code (MCC) are restricted on the card. If

you have difficulty using your card with any particular vendor, please contact your department PCard

Coordinator or the PCard Help Desk.

Policy Limits

In addition to the limits that are controlled at the point of sale by the card, Georgia Tech limits the use of

the card through policy. The card may be used only for purchases that are made under delegated authority

or items exempt from review and approval by the Purchasing Department.

5.5 Authorized Use of PCard

All purchases made with a PCard must be for official Institute business. Cardholders and approving officials

are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A. § 45-10-1 et.seq.

(State Employee Code of Ethics, Conflicts of Interest, etc.)

Authorized Purchases (Note: Exceptions may be granted by the Procurement PCard Manager)

 Equipment: Single units under the cardholder’s single transaction limit Equipment over $3000

(single unit) is considered a capital asset and should be purchased via the Georgia Tech E-

Procurement System.

 Supplies, Materials, and Services may be purchased for less than the cardholder’s single transaction

limit. The Institute will monitor activity for purchases for the same supplies, materials, or services

from the same vendor so as not to exceed $9,999.99 per year unless competitively procured as

detailed in Georgia Tech, DOAS regulations and BOR policies and procedures. Supplies and

materials purchased may also include items purchased for resale.

 Purchases from Statewide and Agency Contracts are permitted.

 Conference Registration Fees for Institute personnel on official Institute business with the

requirement that employees not request reimbursement for meals paid with the conference

registration fees.

 Departments must ensure that conference registration fees for employees paid pursuant to this

section are recorded as required by Institute Travel Regulations. Departments should require

employees to capture the aforementioned registration expenses on the employee’s travel expense

statement. Care should be taken to ensure that the employee clearly identifies those items paid

with the PCard versus those items requiring reimbursement.

 Student food, student travel, and food for instructional uses is permitted as outlined in the Institute

Business and Finance Manual (BFM) Sections 5.2.1.9 and 6.16 subject to the documentation

requirements outlined in this policy. Additionally, food purchased for sponsored research use as

approved by an Institutional Review Board (IRB) is permitted.

 Employee food may be purchased with a PCard only when an employee is participating in a Group

Meal or an on-campus academic program/on-campus sanctioned event as described in BFM

Section 5.2.1.9. Employees participating in off-campus events or in a travel status must request

reimbursement. Food purchases must be compliant with the State Food Group Meal Policy.

 Repairs and maintenance are authorized for Institute vehicles. All costs associated with vehicle

repair and maintenance must be reported in accordance with DOAS fleet management regulations

using the Maximo system.

5.6 Prohibited Use of PCard

 Personal items

o The use of the PCard for personal expenditures is strictly prohibited. Cardholders who

violate this rule must reimburse these funds and, if the violation is determined to be

intentional, may be subject to both losses of employment and criminal penalties.

 Employee Travel expenses (lodging, transportation, meals).

 Entertainment expenses (must be done as a reimbursement through the Foundation or GTRC).

 Alcoholic beverages or tobacco products.

 Motor vehicle fuel (except for authorized rental vehicles for official student program group travel).

 Professional services as listed in BOR Business Procedures Manual (BPM) Section 3.1.2 including

certified public accountancy, architecture, professional engineering, doctors & registered nurses,

lawyers, and veterinary medicine.

 Gift cards, funding the GT BuzzCard, stored value cards, prepaid cards, calling cards, gift certificates,

or other cash equivalent items.

 Food except as authorized under BFM Section 5.2.1.9.(PCard cannot be used for purchases of

bottled water, beverage/coffee service, snacks, or entertainment)

 Cash advances, cash refunds, or “store credit.”

 Memberships and/or fees to wholesale shopping clubs or “warehouse type” retailers.(e.g. Sam’s,

Costco, Amazon Prime)

 Agency (funds held on deposit) or affiliated organization expenditures except as permitted for

Study Abroad Programs as detailed in BPM Section 21.4.

 Purchases made from units of the Institute. No internal Institute charges are allowed on the PCard.

This includes, but is not limited to, OIT printing services, Library, and Parking. Please note: The

PCard may be used for official Institute business at outsourced businesses including the GT

Bookstore, VWR, and Aramark.

 Split purchases. Dividing one purchase into two or more to circumvent the single transaction limits

and procurement requirements previously enumerated is not allowed.(more than one transaction

to the same vendor on the same day which exceeds the single transaction limit of the cardholder)

 Sales tax. Sales tax should not be paid for purchases made from vendors within the State of Georgia

using institutional funds. Institutional funds used to further institutional business purposes are not

subject to sales tax as outlined in O.C.G.A. § 48-8-3 (8). Sales tax may be paid when required for

vendors out of state.

 Please reference the Georgia Tech Reference Guide for PCard allowable and unallowable purchases

found on the PCard page of the Procurement and Business Services website.

5.7 Limitations on Vendors

High Risk Vendors

Georgia Tech does not encourage the use of high risk vendors such as PayPal. If no other form of payment

is accepted by the vendor, then the PCard High Risk Vendor Purchase Authorization Form (high risk vendors

are listed on the form) must be completed, signed, and approved prior to each purchase and appended

with the receipt as part of the accountable documentation for the PCard Statement. Violations of policy

will be evaluated as noted in Section 5.17 - Violations of PCard Policy.

Additional Restrictions

Cardholder must not make PCard purchases from vendors where the cardholder has a financial interest.

Cardholder must not accept any gift or gratuity from any source when it is offered, or appears to be offered,

to influence your decision-making regarding PCard purchases.

5.8 Training

Policy Training

Department PCard Coordinators are required to complete the annual PCard Training and Certification

online training tutorial. Cardholders are required to complete the “PCard Cardholder Training &

Certification” online training tutorial prior to receiving a card.

Cardholders are required to re-certify annually. Failure to re-certify will result in card suspension until the

re-certification is completed.

Departments must ensure that Approvers complete the “PCard Cardholder Training & Certification” online

training tutorial initially and annually thereafter.

Georgia Tech’s E-Procurement System Training

Cardholders and Pcard Cost Center Managers must complete the Georgia Tech’s E Procurement System

Pcard Training module prior to taking on either role.

Departmental Training

Departments are responsible for ensuring Cardholders and Approvers are trained in internal departmental

PCard policies and procedures. Departments should ensure that non-procurement personnel are

acquainted with small value purchase procedures.

5.9 Card Security

The cardholder should use basic security measures, as outlined below, to prevent unauthorized use and

limit the potential for fraud.

 Sign the card as soon as you receive it.

 Always keep PCards and account numbers in a secure place.

 Safeguard the PCard as you would your personal credit card.

 Be aware of your surroundings when using the card.

 Monitor card activity in Georgia Tech’s E Procurement System

 Reconcile and submit transaction verifications in a timely manner

Lost or Stolen Cards

Lost, stolen, or fraudulently used PCards must be reported to the Bank of America at 1-888-449-2273 as

soon as possible after discovering the loss, theft, or fraudulent use. The cardholder’s approving official and

the PCard Coordinator must also be notified. Evidence of fraudulent use may be requested to include

transaction detail. Lost or stolen cards require card cancellation. Failure to report the loss, theft, or

fraudulent use of the PCard may result in increased financial loss to the institution.

The PCard Coordinator has the responsibility for communicating the information to PCard Administration.

Surrendering the PCard

The PCard is the property of the State of Georgia. The cardholder is to surrender the PCard to the PCard

Coordinator upon request, retirement, termination, or transfer to another department. The PCard

Coordinator should destroy (cut up) the PCard and notify PCard Administration via email to cancel the

PCard.

5.10 Documentation Requirements

Requisition Form

Unless covered by an approved exception, every purchase requires two prior approvals prior to purchase.

These prior approvals must be documented via a requisition form designated by Procurement and Business

Services. If the purchase is approved, the cardholder may make the purchase. The signed requisition form

must be appended to the receipt image prior to the submission of the statement for approval.

Receipts

For each transaction, accountable documentation (i.e. a sales draft or receipt) must be obtained as proof

of purchase. This documentation will later be used to verify the purchases shown on the cardholder’s

transaction in Georgia Tech’s E Procurement System. The documentation must contain line item

description and line item pricing for the purchase. The documentation should include:

 Vendor name

 Transaction amount

 Date of the purchase

 Itemized list of items purchased

 Other information as required by the department

If a sales draft or receipt does not provide a description, the cardholder should write the description on the

document. For items such as subscriptions and registrations, where a receipt is not normally generated by

the merchant, a copy of the ordering document may be used so long as it contains a description and price.

Copies or facsimiles of the original receipt may be acceptable if the original is not available.

If the documentation for a transaction has been lost, it is the cardholder’s responsibility to obtain a

duplicate from the vendor. If a duplicate cannot be obtained, the cardholder should complete the PCard

Receipt Replacement Form to serve as the receipt. The PCard Receipt Replacement Form should contain

the itemized information for the transaction, as listed above, and describe the cardholder’s attempt to

obtain a duplicate from the vendor. PCard Receipt Replacement Forms may only be used on an exception

basis. Excessive use of the form (defined as more than three times in one fiscal year), may result in

suspension of card privileges.

Receipts are attached to each transaction in Georgia Tech’s E Procurement System by uploading the receipt

and attaching it to the transaction.

Maintaining PCard Documentation

Documentation will be retained in accordance with records retention and fund requirements. For

transactions posted on or after October 28, 2017, this documentation will be housed in Concur and/or in

Georgia Tech’s Imaging System. For transactions prior to October 28, 2016, statements with

documentation must be kept by the Department.

Original receipts must be kept by the cardholder or department for 1 year per DOAS Policy (rolling 12

months). The documentation must be made readily available for review/audit if requested.

5.11 Making a Purchase with a PCard

The PCard can be used to make purchases over the counter, by mail, by fax, by telephone, or by Internet

at any vendor that accepts Visa.

Obtain Best Value

When accepting a PCard, the cardholder becomes an authorized purchaser for the Institute with specific

responsibilities for expending public funds. The cardholder should ensure the purchase is appropriate and

in accordance with all Institute and State rules and regulations. Additionally, PCard purchases must comply

with requirements of the Georgia Procurement Manual concerning Order of Precedence and Competitive

Bidding. When purchasing goods or services, the order of precedence that should be followed in selecting

the appropriate vendor is: (1) Statewide Mandatory Contracts, (2) GT Agency Contracts, (3) Georgia

Correctional or Georgia Enterprises, and then (4) Statewide Convenience Contracts and the open market.

After verifying the item is not available on a Statewide or Agency contract, the cardholder must utilize

lowest cost based on requirements, quality, and availability to obtain the maximum value of each dollar

expended.

Fluctuate the suppliers to give fair treatment to all suppliers and to assure that the price obtained is

reasonable. Transactions you make may be on behalf of Federal sponsors. Purchasing on behalf of

government clients requires special sensitivity on the part of the purchaser to obtaining fair and reasonable

prices, spreading purchases among many suppliers including small, small-disadvantaged, and women-

owned businesses, and adhering to strict ethical conduct.

Sales Tax

When using the PCard, the cardholder should inform the vendor that the purchase is for official State of

Georgia purposes, and therefore, may not be subject to Georgia state or local sales tax. If requested by the

vendor, cardholders must present an “AP - Sales & Use Tax Certificate of Exemption / Georgia Form”. The

form is available online in the Forms section of the Business Services website at:

http://www.procurement.gatech.edu

If sales tax is erroneously charged by the vendor, cardholders should make every effort to obtain a credit

directly from the vendor. Documentation of attempts to obtain credits should be maintained with the

transaction receipt by appending to the receipt. Note: Sales tax may not be disputed through the bank.

Making an Over-the-Counter Purchase

 Verify that supplier accepts the Visa.

o Note: If not and it is a supplier you will need for future purchases, notify PCard

Administration.

 Provide the PCard for payment.

 Inform the clerk that the purchase is for official State of Georgia purposes, and therefore, exempt

from state and local sales tax. The PCard indicates sales tax exemption, but cardholder should verify

that clerk does not charge sales tax.

 Verify the dollar amount is correct and no sales tax has been included, then sign the sales draft.

 Retain your copy of the sales draft and receipt. If the copy does not provide a description of item(s)

being purchased, the cardholder should write the description on sales draft or receipt.

 Follow PCard transaction/documentation process established by the department.

Making a Purchase via Mail, Fax, Telephone, or Internet

 Provide supplier with requested card information.

 Inform supplier that the purchase is for official State of Georgia purposes, and therefore, exempt

from state and local sales tax.

 Give supplier detailed shipping instructions. It is recommended that you have the goods shipped

directly to your campus address (this would normally be the cardholder’s Billing Address). Please

note: Goods should be shipped to official Georgia Tech business addresses only. Occasionally,

researchers will be in the field at a sponsor’s site and will need the goods shipped to that location

or the location specified, (never a home address). Shipments to an address other than a campus

Georgia Tech address must be approved by PCard administration via email from the PCard

Coordinator, with the cardholder’s supervisor’s approval included. This documentation should be

appended to the receipt as accountable documentation.

 Retain documentation for purchase. Acceptable documentation includes: a copy of order form,

copy of catalog page showing cost, or email/faxed order confirmation showing price along with

packing slip, print out of the online order form, print out of the online order confirmation, or a print

out of the e-mail confirmation.

5.12 Returning Purchases Made with PCard

If you determine that the material is defective or incorrect, notify the supplier that the item needs to be

returned and request an address to ship to, and a Return Authorization Number. Request that the supplier

process a credit transaction through the PCard. Document that the goods have been returned for credit

and communicate information through proper channels within your unit. Ensure that the credit appears in

Georgia Tech’s E Procurement System. If not, process the charge as a Disputed Transaction.

It is a good practice to keep original boxes, containers, and special packaging until you are certain you are

going to keep the goods. Some items must be returned in the original packaging.

5.13 Disputed Transactions

It is the cardholder’s responsibility to resolve discrepancies and ensure credits are received. When a

cardholder discovers an incorrect amount has been charged for goods or services received, or a

questionable purchase or transaction appears for verification in Georgia Tech’s E Procurement System, the

cardholder must immediately seek to resolve the problem with the vendor. Any communications should be

documented and the documentation including dates, persons involved, and a brief description of the

problem should be either appended to the receipt or appended to the PCard Dispute Form.

If the cardholder is unable to resolve the problem with the vendor, a PCard Dispute Form should be

completed and faxed directly to Bank of America at the fax number on the form. The PCard Coordinator

should be notified of the dispute and a copy of the dispute form should be appended to the

fraudulent/disputed transaction. The cardholder should check that credit was received. Note: Disputes

must be submitted within 60 days of the statement date.

5.14 Reconciling PCard Transactions

Pcard Transactions post to Georgia Tech’s E Procurement System for verification on a daily basis. As the

transactions post to Georgia Tech’s E Procurement System, the cardholder should review the transactions

and attach receipts to the transactions. If the cardholder believes a transaction listed on the statement is

incorrect, the procedures outlined in the “Dispute Transactions” section should be followed.

Approval Workflow

All PCard transactions must be reconciled (verified) in Georgia Tech’s E Procurement System. All

transactions must be submitted for approval by the cardholder. At a minimum a PCard Cost Center

manager must also approve each transaction.

Timeliness and Escalations

The PCard office will provide direction on how/when transactions should be reviewed, submitted and

approved in the online system. This direction will be provided to ensure that transactions are fully verified

and posted to the ledger within sixty days of the transaction post-date.

Delinquency

Cardholder’s cards whose online transaction verifications have not been submitted and completely

approved within the 45 day time-frame may be suspended. Repeated non-compliance will result in card

cancellation. Cards will be suspended/cancelled as follows:

 First Offense - PCard(s) suspended 7 days or until written notification (email is acceptable) is

received that the reconciliation package is complete and the cardholder is in compliance,

whichever is greater. PCard Coordinator notified of suspension.

 Second Offense - PCard(s) suspended 30 days or until written notification (email is acceptable) is

received that the reconciliation package is complete and the cardholder is in compliance,

whichever is greater. Cardholder must re-certify by completing the on-line “PCard Cardholder

Training & Certification” tutorial. PCard Coordinator and Department Head notified of suspension.

 Third Offense - PCard(s) cancelled. Department Head may request cardholder be re-instated after

90 days provided written notification (email is acceptable) is received that all reconciliation

packages are complete. Cardholder must re-certify by completing the on-line “PCard Cardholder

Training & Certification” tutorial. PCard Coordinator, Department Head, and OHR notified of

cancellation.

Note: In extenuating circumstances (such as extended travel, on leave, etc), departments may request that

specific cards be exempted from suspension for a brief period.

Reviews/Approvals

Monthly review and approval of PCard transactions is required at the department level. The Department

Head/PCard Coordinator will determine who the approvers will be for their departments.

Departments are responsible for reviewing all transactions to:

 Ensure the appropriateness of purchases and funds being utilized.

 Verify the completeness of documentation (detailed receipts, disputed transactions, approved

requisition forms).

 Identify any policy violations and take appropriate action

5.15 Payment

Business Services will receive a consolidated monthly billing statement from Bank of America for all Institute

cardholders. The statement will be reconciled and processed for payment, in accordance with a plan on file

in Business Services.

5.16 Compliance Reviews

Transactions will be reviewed online in accordance with plans on file in Business Services and Internal

Auditing. Cardholder files will be reviewed in accordance with a plan on file in Business Services. Internal

Auditing periodically conducts on-site compliance reviews in each department. These visits will be designed

to:

 Review departmental records and record keeping practices

 Monitor adherence to policy guidelines

 Identify opportunities for process enhancements

 Offer “best practice” procedures

Results of these reviews will be used to enhance Georgia Tech’s PCard processes and will be shared with

the Department Heads.

5.17 Violations of PCard Policy

Violations of rules governing use of PCards can be classified as minor or major. Violations are evaluated on

an individual basis and any action taken is dependent upon the nature and frequency of the violation.

Minor Violations include honest mistakes, such as inadvertently using the wrong card; allowable purchases

from Institute funds, but those which are not allowed on the P Card. Minor violations should be addressed

as follows:

 First Offense - The department is to address the violation with the cardholder and provide

additional guidance as needed. Actions taken should be documented in writing with a copy sent to

the PCard Program Manager.

 Second Offense - PCard(s) may be suspended for 30 days. Cardholder must re-certify by completing

the on-line “PCard Cardholder Training & Certification” tutorial. Department is to ensure that the

PCard Program Manager and Department Head are notified.

 Third Offense - PCard(s) may be cancelled. Department Head may request cardholder be re-

instated after 90 days. Cardholder must re-certify by completing the on-line “PCard Cardholder

Training & Certification” tutorial. Department is to ensure that the PCard Program Manager and

Department Head are notified.

Major Violations are those violations that indicate a willful intent to disregard rules that results in

cardholder misuse (i.e. would include knowingly making personal purchases). The circumstances of the

violations will determine the appropriate action, which could include termination of employment and

criminal penalties. When cardholder misuse is suspected, the department is to immediately notify the

PCard Program Manager and the Director of Internal Auditing.

 The PCard is to be suspended pending further review and investigation by Internal Auditing.

Suspected instances of noncompliance should be reported by calling EthicsPoint Hotline at 1-866-294-5565.

6.0 Purchase Order Guidelines

6.1 Overview

Purchase Orders (PO) are legally binding commitments. A PO is created and approved in the Georgia Tech

E-Procurement System (Workday) and is issued to the supplier. The PO indicates types, quantities, and

agreed upon prices, etc. for goods and/or services that the supplier will provide to the Institute. Providing

a PO to a supplier constitutes a legal offer to buy the goods and/or services. Supplier acceptance of the PO

forms an agreement between the Institute and the supplier that those goods or services will be delivered

within the terms set forth on the PO or negotiated terms and conditions of sale.

6.2 Roles and Responsibilities

It is essential for Georgia Tech to maintain an environment where the Institute can conduct business

efficiently, effectively and ethically with its suppliers while complying with generally accepted accounting

principles and applicable laws and regulations of the state of Georgia. This requires Institute employees to

fulfill their roles and responsibilities when making purchases on the Institute’s behalf.

Collaboration of departments and individuals across the Institute along with the Purchasing Department is

required to ensure that Georgia Tech can serve the campus community while meeting its compliance

obligations.

Department and Administrative Unit Responsibilities

Georgia Tech’s operations are generally decentralized, leaving the authority and accountability for

institute-related purchasing decisions for a Department within the Department making the purchase.

Purchasing responsibilities are delegated to several roles within the Institute: the Employee as Self

(Requisition Requestor), RQ Reviewer, Cost Center Manager, Driver Worktag Manager, and Buyer.

Role Name

Business Description

Employee as Self (Requisition Requestor)

Create Requisitions, Receipts, Returns, Change

Orders, and enters accounting information.

RQ Reviewer

Reviews the entirety of the request and updates

any accounting for requisitions

Cost Center Manager

Provides financial approval on transactions and

examines availability of funds and necessary

documentation

Driver Worktag Manager

Approves transactions, examines for

appropriateness and allowability of spend

Buyer

Sources and issues purchase orders

6.3 Purchase Order (PO) Creation Process

Purchase orders are created in Georgia Tech’s E-Procurement System (Workday).

Specific information related to how requisitions are entered, POs approved and received on, etc. can be found

on Georgia Tech’s Services and Support website.

6.4 Blanket Purchase Order

A blanket purchase order is a PO written for a total dollar amount which can be used to facilitate purchases

that will require periodic payment over time (leases, frequently used suppliers, etc.).

The blanket PO allows the department to submit periodic invoices directly to the Accounts Payable

Department without creating a new PO, or new PO line, for each purchase. The invoice amount is deducted

from the total value of the approved blanket PO until the amount of the PO is exhausted or all

goods/services have been received. Note: The PO should be setup as a service requisition in Georgia Tech’s

E-Procurement System (Workday) and received upon as goods or services are received, to ensure invoice

payment is compliant with Institute terms and conditions. Blanket POs should be created at the onset of a

contract or annually when possible.

Blanket POs with an amount greater than $2,500, should be utilized with the approval of Procurement

Services to ensure compliance with all competitive thresholds, and requirements governing Institute and