How to Initiate a Purchase
Why Purchase Orders are necessary
Requisition Approval
Vendor Selection/Competitive Bidding
Purchase Order Issuance
Delivery of Order
Payment of the Order
Where do I have the Order Shipped?

How to Initiate a Purchase

Forecast your departmental needs for goods and services as far in advance as possible. Some vendors need four weeks or more to process an order. “ASAP” orders increase costs and administrative workload. For orders in the amount of $10,000 or more a Requisition to Purchasing Form must be submitted to initiate a purchase order. The use of a college procurement card is strongly encouraged for orders that do not require a purchase order. Please go to the Purchasing Card section for more information on the procurement card program.

Requisition forms should include the following information:

• Suggested Vendor (Purchasing maintains the colleges preferred vendor list)
• Department Account Number and Object Code to Charge the Expense to
• Quantities and Detailed Specifications for all Goods and/or Services
• Unit Cost(s), Shipping and Other Miscellaneous Charges
• Approval by an Authorized Departmental Approver

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PURCHASING FORMS HERE

NOTE: All orders over $10,000 require bids from a minimum of three different vendors. Please see the vendor selection/competitive bidding section on the following pages.

Verify the quantity and quality of your order when you receive it. If your order is incorrect, or if you are returning any items, immediately inform Purchasing. Doing so prevents over-paying the vendor and over-charging your department's budget.

A purchase order assists budget management. Following purchasing procedures results in spending your department’s budget most effectively. Purchase orders also create a budgetary commitment, which helps to prevent an unexpected shortage of funds at the end of the fiscal year. A purchase order is also necessary to track orders. Following purchasing procedures generally results in faster delivery times and prompt payment of your orders because a purchase order is the only way Purchasing, Receiving, Mail Services, and Accounts Payable can track your order. A tremendous workload is created for each of these departments when an order is placed without following the purchasing procedures. A purchase order or the procurement card are the only authorized methods of purchasing goods or services for the College. Do not make any commitments of Babson College funds yourself by placing an order or signing a contract without following purchasing procedures. You could be held legally liable and responsible for payment of unauthorized purchases. Note that an “after-the-fact” purchase order cannot be issued after placing an order with a vendor. Purchase orders are not required for purchases under $10,000 for these transactions use of the procurement card is very strongly encouraged. Please reference the Procurement Card section of the manual.

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Requisition Approval

Purchasing approves a requisition by confirming that adequate information, specifications, and backup information are included. Purchasing will contact the department if additional information is necessary.

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Vendor selection is a major responsibility of the purchasing process and requires a consideration of many factors. For purchases over $10,000, Purchasing requires bids/quotations from a minimum of three vendors. Purchasing staff will be happy to assist departments with the bid process. If the vendor selection is handled independently, please submit the bid responses and related back-up documentation along with the requisition. There are very rare cases when only one vendor can provide the specific goods or services needed. These cases must include back-up documentation substantiating that the vendor is a sole source.

When selecting a vendor, Purchasing considers quality, cost, delivery, terms, past vendor performance and the following criteria:

• Vendors must demonstrate their ability to supply goods and services on a regular and timely basis under varying market conditions.
• Vendors must demonstrate the ability to procure adequate supplies of raw materials.
• Vendors should be cost competitive.
• Vendors should demonstrate the ability to meet both the specification requirements and applicable industry standards.

Additional consideration may be given to vendors that meet the following criteria:

• Vendors who are developing new products or services, or developing a special product for the college's exclusive use.
• Vendors with adequate financial strength and a reputation for adhering to specifications and delivery schedules.
• Vendors located near the College.
• Vendors, or their representatives, that have helped advance the educational goals of the College.
• Vendors that support the College’s Affirmative Action Policy.
  

In accordance with policy, Babson College does not reveal specific pricing or other information associated with bid processes or other business activities.  Vendors are requested to propose their most competitive offer upon first submittal as these are considered best and final offers.

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Purchase Order Issuance

After the requisition is approved, Purchasing issues a purchase order to the selected vendor. A purchase order contains all the order information from the requisition and permits the vendor to process and ship the order. Purchase orders are faxed and mailed out of Central Services on a daily basis. Purchasing will email the purchase order number to the requestor once it has been assigned. 

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Central Receiving accepts all orders delivered to Babson College. Once an order is received and verified against a purchase order, Accounts Payable records the order as received in the financial accounting system. Mail Services then delivers the order to your department. Orders are generally delivered within twenty-four hours of receipt, provided all purchasing procedures are followed. Your department is responsible for verifying the quantity and quality of each order when delivered. If your order is incorrect, or if returning any items to the vendor, immediately inform Purchasing. Doing so prevents over-paying the vendor and over-charging the department's budget.

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Payment of the order
If purchasing procedures are followed, Accounts Payable pays for the order within Babson College’s payment terms, 2/10, net/30. Accounts Payable will question all bills that cannot be associated with an authorized purchase order. They will also question any expense reports that include the purchase of equipment, software, or other goods and services that would normally require a purchase order.

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