Procurement

Low-Risk Procurements

Every purchase of goods/services/information technology involves entering into an agreement with the supplier. Some purchase require a bilaterally signed agreement with the supplier, while other purchases can be made without need of a signed agreement.

When a purchase is low-risk and lower spend, Procurement may issue the Purchase Order or a PO with supplemental attachments (Quote/Order Form/Statement of Work) to serve as the agreement. The PO or PO+attachments will contain all of the service requirements and legal/general terms.

What qualifies as a “Low-Risk” Procurement?

Low-risk purchases have the following characteristics:

1. Lower cost/price. (There is no specific dollar amount threshold; the higher the cost/expense, the more likely a signed agreement should be used to ensure the terms are certain. Use common sense here.)
2. Short duration/frequency. (One-time purchases are lower risk whereas multi-year or long term purchases benefit from more formal agreement documentation.)
3. Does not involve the transfer, handling or access to sensitive UC data (Protected Health Information (PHI as defined under HIPAA), Personally Identifiable Information (PII may include names, addresses, phone numbers, SSN, ID numbers, etc.), Student Records, or access to university networks and/or data systems);
4. If the purchase is for services, the services are performed at the supplier’s place of business . If services are performed in person at a UCI controlled location or rented venue, the services do not involve inherently risky activities or use of heavy machinery, (e.g., construction, experiments, chemicals).
5. If the purchase is for goods, the purchase must __________.

Examples

Examples of low-risk service purchases (not an exhaustive list) can include advertising, editing, DJ’s, event face painter, balloon artist, graphic design, , photography, videography, publishing, training workshops, writing/translating/indexing, translating, freelance writing, etc.

Examples of low-risk goods purchases can include

Examples of low-risk information technology purchases include a subscription to an online journal, download of a supplier’s data pack, …

Required Information/Documentation on the UCIBuy+ Requisition

Since the PO or PO+ documentation will serve as the agreement, the UCIBuy+ requisition must include a full and meaningful description of all supplier requirements.

For goods purchases, the description must include a clear and meaningful description of the equipment/objects/items, include a quantity, pricing, shipping or delivery date/deadline, whether set-up or installation is required and the location, the length of any testing/acceptance periods, and any other specifications like warranty or service periods.

For services the description must include the key service requirements, start/end dates or a completion deadline, or delivery date, describe deliverables due/owing, . One or two generic sentences is NOT sufficient -- insufficient details will result in disapproval of your PO.

Example: for the purchase of photography services, your description should include:

• a detailed description of the event/activity to be photographed,
• the date, time, duration, and location of the event/activity to be photographed,
• the deadline for delivery of prints or digital files of the photos will be delivered,
• a statement that the services are work made for hire and “UC shall own the copyright rights to all images and videos, vendor restricted from using such images for marketing purposes."

Insufficient Example

“Editing services. Supplier is assisting Dr. Jones in editing her new book.”

“Rental of photobooth”

If helpful you may attach supplemental documentation to the requisition to further explain the supplier’s obligations. The Low-Risk Procurement Statement of Work identifies the recommended topics or details to include for service purchases. Attaching an invoice or quote that does not address all of the relevant details will not satisfy this requirement.

If the purchase is of services, you must state the specific location where the services will be performed, either in the Notes and Attachments section or on the Low-Risk Procurement Statement of Work .