March 20, 2007
Contact: Anna Farneski
Phone: (973) 972-3000
UMDNJ Board of Trustees Adopts Series of New Purchasing Policies
New system ensures compliance, transparency, and efficiency
NEWARK — The Board of Trustees of the University of Medicine and Dentistry of New Jersey adopted a new set of purchasing policies today that strengthened guidelines and procedures for University-wide purchasing of goods and services. The policies were designed to ensure the purchasing process is fair, transparent, and provides the University community with quality goods and services at the best possible value and in compliance with all State requirements.
The new policies were developed using the recommendations offered in the report developed by the Federal Monitor and Justice Gary Stein. They include revised Purchasing and Bid Waiver Policies and a new Contract Management Policy. These guidelines apply to all trustees, officers, faculty, attending physicians, and staff members of UMDNJ as they purchase goods and services under the authority of or acting on behalf of the University.
The new system combines the Purchasing Services Department, the Supplier Diversity Department and Logistical and Support Service Departments, and a newly created Contract Management Department to create a supply chain management organization for the entire University that establishes a comprehensive oversight of purchasing, contracting and delivery of goods and services.
“With the approval of these new purchasing policies the public, and the University community, can rest assured that UMDNJ ’s procurement of goods and services is being conducted with the utmost integrity and in strict compliance with all State requirements,” said Board Chairman Robert Del Tufo. “This is the latest step in our continuing journey to restore confidence to the University so our talented and dedicated faculty and staff can fulfill our missions of research, education, and clinical care.”
The purchasing and waiver of bids policies set forth a series of standards including compliance requirements, purchasing and competitive bidding guidelines, and rules regarding bid waivers and emergency purchasing. Among other things, the policy dictates that:
• Purchases are to be made from existing University contract sources, including group purchasing organizations, whenever possible. State sources for contract services should be examined when possible over outside private vendors.
• All purchases over $24,000 require an advertised bid. Purchases between $10,000 and $24,000 require three written and complete quotations from potential vendors. Any purchases between $2,500 and $10,000 shall be supported by three documented written or verbal quotes.
• Bid waivers may only be used in limited circumstances and the Board of Trustees must be notified of all waiver contracts. Department heads will be held accountable for unauthorized purchases.
A key component of the new supply chain management program is the newly created Contract Management Policy and accompanying organization, which provides a systematic approach to contract compliance that ensures strong fiscal responsibility for contracts in excess of $24,000. Under the new policy a University-wide process will be established that provides oversight and management of contract terms and conditions, establishes timelines, deliverables, acceptance of contract deliverables and authorization for payment, while minimizing contractual risk and exposure.
The Contract Management staff will work with the requesting department and Purchasing Department to develop a comprehensive project plan that ensures the contract scope of work aligns with the University’s needs, provides the vendor community with a clear understanding of UMDNJ requirements, and ensures auditable results. Staffing the department will require the hiring of eight individuals, a Contract Manager and seven Contract Analysts.
The plan also includes the eventual implementation of a variety of information technology enhancements that will lead to an E-procurement process and result in significant financial savings.
For a complete copies of the policies, visit UMDNJ’s website at http://www.umdnj.edu/about/board/pdf/Waiver_of_Bids_3_14_07.pdf
In conjunction with the new supply chain management system a comprehensive University-wide training program is underway. Everyone who has direct and indirect involvement with the purchasing process will undergo training. The training program also includes dissemination of the new policies to University employees as well as current and new vendors.
UMDNJ is the nation’s largest free-standing public health sciences university with more than 5,700 students attending the state's three medical schools, its only dental school, a graduate school of biomedical sciences, a school of health related professions, a school of nursing and a school of public health on five campuses. Annually, there are more than two million patient visits at UMDNJ facilities and faculty practices at campuses in Newark, New Brunswick/Piscataway, Scotch Plains, Camden and Stratford. UMDNJ operates University Hospital, a Level I Trauma Center in Newark, and University Behavioral HealthCare, a statewide mental health and addiction services network.