W. Va. Code R. § 133-43-4 - Purchase or Acquisition of Materials, Supplies, Equipment, Services, Construction and Printing

4.1. As provided by this rule, the Commission and institutions may institute the following purchasing practices either individually or cooperatively for purchase or acquisition of materials, supplies, equipment, services and printing.

4.2. Bulk Purchasing:

4.2.1. The Commission shall establish a working committee consisting of Commission staff and institutional representatives to identify the materials, supplies, equipment, services and printing that may reasonably be purchased in bulk to take advantage of economies of scale. In compiling this list and in assessing the economic advantage of purchasing a commodity or service in bulk, the committee shall consider the acquisition cost of the commodity or service, included but not limited to, delivery costs, handling and storage costs, timing of purchases and customer satisfaction. This committee shall also monitor and report to the Chancellor from time to time on any cost savings and efficiencies realized from bulk purchasing.

4.2.2. Bulk purchase contracts may be bid and entered into by either the Commission or an institution on behalf of all institutions. Once issued, the Commission and all institutions participating in the contract shall use it as the primary source of procurement of the commodities or services provided in the contract. The Chief Procurement Officer may authorize purchases off the contract if it is deemed to be in the best interests of the Commission or institution to do so. If an institution decides not to participate in a bulk purchase contract, the institution's Chief Procurement Officer shall state in writhing the reason(s) for not participating and the cost savings resulting therefrom.

4.3. Reverse Bidding:

4.3.1. The Commission shall establish a working committee consisting of representatives from the Commission staff and institutions to implement reverse bidding for all public higher education institutions within the State. The working group shall review currently accepted reverse bidding practices within both corporate America and higher education to determine what is most appropriate to West Virginia higher education. Software and other enabling media shall also be investigated. Recommendations shall be made in a timely manner by the group which addresses commodities to be purchased through reverse bidding, software and enabling media, implementation procedures, and time lines to effect reverse bidding within higher education in the State.

4.4. Electronic Marketplaces:

4.4.1. Electronic marketplaces, also know as e-procurement, will allow the Commission and the institutions to buy or sell goods and services in a digital environment. This procurement method takes advantage of combined purchasing power, improved processes and will allow better utilization of automated systems. It will also integrate higher education buyers directly into the market place, aide in sharing best business practices and assist buyers in gaining control and thus strengthen vendor relationships, gaining access to tracking mechanics which will provide the ability to tract and report hard dollar savings.

4.4.2. This method of purchasing is relatively new and it will require research and planned implementation before the Commission and the institutions can take full advantage of it as a common purchasing method. As a result, a committee of Commission and institution staff will be formed to develop this method as a viable alternative to other procurement methods, plan its implementation and identify the goods and services that may be most effectively acquired using this method. Once these tasks are accomplished, this method may be employed in the acquisition of goods and services.

4.5. Electronic Remitting:

4.5.1. The Commission and the institutions may utilize electronic remitting in the course of transacting business with vendors, other private entities, state agencies and governmental units. This includes but is not limited to:

a. Remitting payment for goods and services electronically to vendors.

b. Electronically performing the processes and providing documents to the Attorney General, State Auditor, the Department of Administration and other governmental agencies which are required by W. Va. Code and normal business practices.

4.5.2. A committee composed of Commission staff and institutional representatives shall work with the State Auditor to implement, by December 31, 2003, an easy to use, cost effective and efficient program to electronically remit payment for goods, services, utilities, etc. to vendors and providers.

4.5.3. In order to gain efficiencies and economy of operation the following processes required by W. Va. Code may be performed electronically using existing technology, software and procedures:

a. Encumbrance: Purchases exceeding the dollar amount identified in W. Va. Code § 18B-5-4(a)(5), for purchases by sealed bids and competitive bidding, may be directly and electronically entered into the state's centralized accounting system by the staff of the Commission or the governing boards to satisfy the requirements of article two, chapter five-a, and more specifically, sections twenty-six, twenty-seven and twenty-eight to determine whether the amount of the purchase is within the Commission's or governing board's quarterly allotment, is in accordance with the approved expenditure schedule, and otherwise conforms to the provisions of article two, chapter five-a. The electronic entry shall be in lieu of any hard copy or paper submission. Purchases not exceeding the dollar amount in W. Va. Code § 18B-5-4(a)(5) do not require encumbrance and shall be accounted for and liquidated in the state's centralized accounting system through the payment process.

b. Filing contracts with the State Auditor: The Commission and the institutions may file contracts with the State Auditor as required by W. Va. Code § 18B-5-4(i) electronically or may make these contracts available to the State Auditor by any other acceptable means.

Notes

W. Va. Code R. § 133-43-4