Purchasing SOPs and Guidelines

Purchasing Methods

• Purchasing Card (P-Card) - The purchase of goods, supplies, travel costs, registration, meals, hotels, publications and printing services of $2,500 or less can be made using a Purchasing Card, subject to individual limits established by cardholder's supervisor or the business office. When possible, the P-Card is to be used when making purchases with local vendors. See the Purchasing Card Manual and the Purchasing Matrix for further information. An exception to the $2,500 limit can be made by Auxiliary Services (purchasing@wabash.edu) for certain pre-approved transactions (e.g., hotel contract cost for a large group or event).
• Purchasing Requisition(PR)/Purchase Order (PO) - The purchase of goods and services of greater than $2,500 should be made by completing a purchase requisition (which in turn is used by the Purchasing team to create a purchase order). Under UCC (Uniform Commercial Code) and Indiana common law, the purchase order is a binding legal agreement as soon as the seller accepts it (either begins production or ships the goods) unless rescinded prior to acceptance. For any Wabash PO to be valid, the Director of Auxiliary and Insurance Services (or designee) must sign it. If over $25,000, the Chief Financial Officer (CFO) & Treasurer (or Designee) also needs to approve.
• Payment Request for Payment to Outside Vendor - Conference fees can be processed using this method but the preferable method is P-Card. Use a payment request for personal payments and for payment of amounts under $2,500 if an invoice has been issued by the vendor.
• Payment Request for Reimbursement to Employee – Use a payment request form for miscellaneous cash expenses incurred for Wabash purposes. See the Travel Payments and Reimbursements for details related to travel reimbursements and expense reports.

Special Commodities and Contracts

Special Commodities

Specialists are available to assist with procuring Special Commodities. Please contact them to order the following:

Special Contracts

Wabash has negotiated with the following vendors for the purchase of office supplies, catering services, vehicle rental, travel reservations, and other strategic commodities.

Types of Agreements

Contracts

A contract is a legally binding agreement, which recognizes and governs the rights and duties of two or more parties. As such, responsibility for contracting is with defined areas that have expertise in the area. The Director of Auxiliary and Insurance Services (or designee) is responsible for reviewing and approving all contracts for professional services and the purchase of goods/services required for the College’s business. This includes contracts provided by suppliers.

• Wabash's Chief Financial Officer (CFO) & Treasurer is responsible for contracting for the College on the purchase, lease, sale or management of real property.
• The Director of Planning, Design, and Construction facilitates the bids and contracts for major construction and architectural and engineering services.
• Even though Wabash only requires contracts for the > $2500 purchase of consulting services and personal professional services (like Individuals, Speakers, or Performers), the vendor may require a contract from their side.

Letter of Agreements (LoA)

This is a less formal document that outlines the terms of an agreement between parties. An LoA is used when parties want to confirm mutual understanding without the complexity of a more detailed document. This can be legally binding if it includes the key elements of a contract (offer, acceptance, consideration, intent). Ideally, the Director of Auxiliary Services should sign the LoA first; however, as long as the Director signs it BEFORE the event is over, that is acceptable.

Memo of Understanding (MoU)

This is a formal but non-binding agreementbetween two or more parties that outlines the terms and details of a mutual understanding or collaboration.

What Agreement is Right for my Transaction?

Purchase orders are the preferred method for the one-time procurement of goods and services or services that have a performance period of less than 1 year. When requesting a quote or proposal, you can confirm with them that they will accept a purchase order.

Signed contracts are typically more detailed and are used when the procurement is more complex, involves a longer-term relationship, involves substantial risk (including financial, legal, reputational, etc.) is required to fully define the requirements or relationship, and in some cases when the supplier will not accept a purchase order and there is no alternative source of supply.

Letter of Agreements are suitable for outlining basic terms for the payments of personal services, especially in smaller or low-risk situations.

Memo of Understandings are often used as a preliminary step before drafting a legally binding contract. They are common in academic, governmental, nonprofit, and business collaborations. They specify specific roles, responsibilities, and expectations. It describes what each party plans to do, without creating legal obligations.

For contracts related to grants, please address your questions to the professionals in the Grants office.