Policy Changes

Non-Federal Funds Changes

In accordance with the recent changes to the competitive thresholds for Consulting and Information Technology implemented by the State, the Board of Supervisors has approved Procurement’s request to adopt the new competitive thresholds.

Policy (POL-U501: Methods and Thresholds for Procuring Goods and Services) has been amended to increase the following competitive thresholds:

• Consulting Services – From $50,000 to $75,000
• Information Technology – From $100,000 to $150,000

Policy changes became effective December 7, 2020.

Federal Funds Policy Changes

Policy (POL-U501.A: Methods and Thresholds for Procuring Goods and Services with Federal Funds) has been revised again in accordance with changes made to the Federal Procurement rules of the Uniform Guidance. The following changes have been made:

1. Modification to the Single Procurement Thresholds
2. Revision to the Sole Source Procurement section to clarify single source and separate clearly define emergency procurement
3. Addition of the following sections:
   • Master Contracts – to clarify these are covered transactions under UG
   • Domestic Preference – new to UG
   • Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment – new to UG

Policy changes became effective November 12, 2020.

Additional changes are forthcoming to increase the competitive threshold for IT from $50,000 to $150,000.

Sole Source Purchases Using Federal Funds

The Uniform Guidance specifically states that to exempt procurement transactions based on the grant the funding agency must approve procurement from a specific supplier AND the procurement will be conducted non-competitively. Departments should contact the Office of Sponsored Programs to obtain approval from the funding agency if not approved in the initial proposal.

Spending Freeze Requisitions

Departments are reminded that procurement transactions subject to the spending freeze, if exempt, must identify the applicable exemption number in the Internal Memo field of the requisition along with any additional supporting information; these are not subject to the AS900 form requirement unless instructed to do so in the guidelines.

However, if the purchase does not meet an exemption, the department is required to attach the approved AS900 form and should identify the applicable exception taken in the Internal Memo field of the requisition. Please note the form changed in July (version date 7/9/2020) and the FY21 version of the form must be attached in order to proceed.

Failure to reference exemptions or attach the AS900 when required will cause delays in processing  and may require the requisition be sent back. Cost Center Managers should be verifying these tasks are done prior to their approval.

The guidelines and form can be found on the Accounts Payable & Travel Invoice Processing webpage (see links below).

https://www.lsu.edu/administration/ofa/oas/acctpay/pdfs/spendingfreeze_2021.pdf

https://www.lsu.edu/administration/ofa/oas/acctpay/pdfs/spendingfreezeupdated_as900.pdf

The following virtual training sessions are now available. Register online at training.lsu.edu.

Procurement Roundtable

Didn’t make it to the virtual roundtable meetings? Visit the Roundtables Webpage to view the presentation or download the recording.

The next Procurement Roundtable will be Tuesday, March 16 at 2:00 PM. 

 Property Management 2021 Key Inventory Dates

Requisition Lines: Goods vs Services

Request Goods or Services: Which Should I Choose?

Workday requisition lines, depending on the option selected, drives what fields you do/don’t see, validations and once approved how a purchase order will be issued, received and paid. The Request Goods option prompts users to specify the good and or service to be procured where the purchase is defined by a quantity, unit cost and unit of measure (each, case, hour, year etc.). Services to be included on “Goods” lines are maintenance, repair, annual service, licensing, cleaning/janitorial etc. as these are services that are typically priced at a set unit cost at a set unit of measure.

The Request Services option prompts users to identify the service to be rendered where there is no established rate or quantity and only an anticipated extended amount to be spent is identified. However, as defined by LSU, the only services to be included on “Services” lines should either be for Professional, Specialty, Consulting Services or Construction.

Invoice Discrepancies

If the accuracy or pricing of a Purchase Services/Goods (PSG) invoice is in question, the department should first reach out to the supplier immediately upon receipt of the invoice to resolve the issue. Procurement will work with both the department and supplier to expedite a resolution when both parties have exhausted all means of reconciliation.

In accordance with RS 39:1695, if the University fails, without reasonable cause, to make prompt payment, the University shall pay in addition to the payment, interest on the amount due. Therefore, invoices should not be held for long periods of time by a department due to incorrect pricing or other inaccuracies. Departments are encouraged to address invoice discrepancies immediately, as a resolution may not be timely. Any late payment penalties shall be the responsibility of the department.

Canceling Punch-out POs

In order to cancel a punch-out catalog purchase order or items from a punch-out catalog PO, the department must contact the supplier and obtain confirmation in writing that the purchase order or items to be cancelled have been cancelled on the supplier’s side. This ensures the order/item will not be shipped after the PO/item has been closed/canceled. The department must send this confirmation to Procurement at [email protected] in order for the purchase order/items to be cancelled in Workday.