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Procurement Services Fall Newsletter: October 2015

Interim Director's Message

As interim director, I am fortunate to have the opportunity to use this newsletter as an outlet to applaud the efforts of the hard-working employees in our office. The Procurement Services Staff have been working diligently to improve customer service for the University community through maintaining a current e-procurement website, regularly processing requisitions in a timely manner, reviewing supplier non-standard terms and conditions, providing CruzBuy training sessions across campus, and responding promptly to emails and calls.

Based on responses to our previous newsletter, I must say each Procurement Services area is making great strides in building relationships with departments around campus in order to provide excellent service to the University. I would like to take the time to thank each Procurement Services area (Business Contracts, e-Procurement, Strategic Sourcing and our Operational Buyers) for stepping up and taking on this challenge to continually improve the way we contribute to the mission of the university.

It’s been a very busy and challenging fiscal year so far. The Procurement Services office is burning the midnight oil trying to keep up with changes to comply with the requirements of new legislation such as SB854 Prevailing Wages, Affordable Care Act, Fair Wage/Fair Work Plan and on-going P-200 initiatives in the midst of workload increases.

Thank you for your patience as we continue to transform our Procurement organization into one you can count on to receive what you need, when you need it, and at the best total cost of acquisition possible.

Paul Schell
Interim Director, UC Santa Cruz Procurement Services

SB854 Prevailing Wage Requirements

Contractors or subcontractors submitting bids for public works projects exceeding $1,000 must be registered with the California Department of Industrial Relations (DIR), and hold a valid Contractors State License Board license. Public works refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid for with public funds.

The requirement to use only DIR registered contractors and subcontractors on public works projects, greater than $1,000, applies to all projects awarded on or after April 1, 2015. No bid can be accepted, nor any contract or subcontract entered into nor purchase order issued, without proof that the contractor or subcontractor is registered.

Effective September 1, 2015, Procurement Services is required to complete a DIR PWC-100 form alerting the DIR of the public works project and prevailing wage services that are being provided to the University.

Specific and detailed information is required to complete this PWC-100 form. If the services fall under “public works,” and there is a prevailing wage requirement, a Buyer may be asking for additional information needed to complete the DIR PWC-100 form prior to approving the CruzBuy requisition.

A CruzBuy requisition submitted for a public work project requiring prevailing wage with a supplier not registered with DIR, or not holding a valid Contractors License, will significantly delay the requisition from being approved and possibly delay the project from starting.

Additional DIR SB854 information can be found at The Department of Industrial Relations.
UCSC Supplier information can be found at Supplier Guide – Prevailing Wage Requirements.

UC Fair Wage Fair Work Policy

UC’s new Fair Wage Fair Work policy is now in effect, requiring service suppliers to pay their employees a wage that meets or exceeds UC’s new minimum wage when hired to perform services on our campus.

As background on this new policy, on June 22, 2015, President Janet Napolitano announced that minimum wages for its workers will be raised to $15 an hour over the next three years. This minimum wage requirement applies to both direct and service contract employees.

The mandated minimum, which is being implemented in scaled increments to allow time for the campuses to plan and budget for the cost of full implementation, will be increased to $13 an hour on Oct. 1, 2015, $14 an hour on Oct. 1, 2016, and to $15 an hour on Oct. 1, 2017.

As the University enters into new contracts or renews existing ones, it will require service suppliers to pay their employees a wage that meets or exceeds UC’s new minimum wage.

Please allow more time for renewal of service contracts, additional negotiation time may be required to implement these new policy requirements.

Note additionally that, the new Fair Wage Fair Work service requirements only apply to service agreements, not to agreements for the procurements of goods alone. Also, it does not apply to Public Works agreements with a wage determination at or above the UC Fair Wage or to contracts funded by extramural agreements.

As part of monitoring and compliance, a new dedicated phone hotline is available to report complaints or issues directly to the Office of the President, 855-WAGES-UC. Also, an online complaint registration system is available at Any supplier employee who is providing services to UC who believes his/her employer is not complying with the UC plan, or workplace laws, may call the hotline or use the online complaint registration system to report violations.

Additionally, annual and interim audits of suppliers will be performed to ensure they are paying UC’s minimum wage, or better. For services that exceed $100,000 annually, the supplier will provide an annual independent audit at the supplier’s expense. For transactions under $100,000, audits will be performed by UCOP Internal Audit.

Business Contracts Tips

Business Contracts within the Procurement Services department reviews, drafts and negotiates agreements on behalf of The Regents for the procurement of goods and services. CruzBuy requisitions with supplier documentation requiring signatures and/or terms and conditions trigger a Business Contracts review. To expedite your requisitions, Business Contracts recommends the use of CruzBuy Hosted Catalogs/Punchout Catalogs, contracting with suppliers with established Master Agreements, and to Negotiate Out of Supplier Terms, whenever possible.
  1. Hosted Catalog/Punchout: If possible, first see if a product can be purchased through a campus hosted catalog/punchout. With established pricing and terms, this is the most efficient method for procuring a product.
  2. Master Agreements: UCOP has established master strategically sourced agreements with a large number of Suppliers. This includes both nationwide suppliers and those local to Santa Cruz. New master agreements are established almost every month targeting suppliers frequently favored by the UC system. Any requisitions covered under these system-wide master agreements would not require a BC review. UC master agreements can be found in the UCOP Contracts Repository. For more details, or to access the UCOP Contract Repository, please contact Nikki Vamosi at
  3. Negotiate Out of Supplier Terms: For a Low Value Purchase Order (under $5,000) for commercial off-the-shelf goods, a CruzBuy requisition alone may be sufficient and there is no need to ask a supplier for a quote. A Procurement Services Buyer will determine if a quote is necessary to comply with policy. If a supplier did, however, send you a document with supplier terms and conditions, attach them to the requisition and a Buyer will attempt to negotiate out of them for you. Note also, if the requisition order is over $2,999.99 on federal funds, a quote is required.
Contracts are an essential tool for business and lay the foundation to prevent disputes, clarify payment/performance expectations and ensure policy requirements are met.

Employee Corner

Lisa Dodd, Buyer, Procurement Services Lisa Dodd

Procurement Services is pleased to announce the hiring of Lisa Dodd as a new Buyer II, effective September 21, 2015. Lisa comes to UCSC from NASA Ames Research where she worked as a Procurement Specialist. Previously, Lisa worked in Operations for a small Engineering company in Santa Cruz. Lisa likes to travel, she spent a year in Australia and backpacked for three months on her way back to the U.S. She enjoys bargain hunting and is currently settling into her new home with her husband, Mike, and their dog, Erin. Please join us in welcoming Lisa to Procurement!

Brian Mooney, Purchasing Assistant, Procurement Services Brian Mooney

Procurement Services is pleased to welcome its new Student Employee, Brian Mooney, who maintains the department’s certificate of insurance database and ensures that service suppliers meet University insurance requirements. Brian also handles purchase order acknowledgements and assists in onboarding new suppliers to our supplier database.

Brian is a senior this year at UCSC and plans to go on to graduate school. He hopes to get involved in public service. Brian loves to listen to music and play his guitar. He also enjoys sports, cooking and classic films. Brian is also a fan of backpacking and camping. Please join us in welcoming Brian to Procurement!

Strategic Sourcing / Sustainability

Waste to Energy
Strategic Sourcing collaborated with Silas Snyder, CHES Conservation Coordinator, to keep over four-tons of non-biodegradable carpet waste out of our local landfills. During this year’s carpet removal and replacement project, it was discovered that much of our old carpet could not be recycled. Strategic Sourcing, with legal assistance from Business Contracts, successfully contracted with Covanta Stanislaus, Inc. A California environmentally sound solid waste disposal facility, uses waste to generate clean, renewable energy. This successful “waste diversion” effort brings UCSC one step closer to meeting the goals of Zero Waste by 2020!

Sustainability Intern
For the second year, Strategic Sourcing has recruited a student intern to focus on encouraging UCSC’s suppliers to improve their “sustainability profile." Through the Provost's Sustainability Internship Program, our new intern, William Watson was identified.Will Watson

William will engage suppliers to develop and improve their own sustainability strategies, and be accountable to agreed standards. His goals for this year are to increase the number of participating suppliers, build online tools, and incorporate sustainability into Procurement’s daily interactions with suppliers.

By encouraging our suppliers to make more sustainable choices in their business practices and operations, we can enhance UC Santa Cruz's excellent reputation as a green campus, promote real-world actions that support a healthy environment, and meet yet another Procurement Services' objective in the Campus Sustainability Plan. We will keep you updated on the progress in our next newsletter.

First Ever Sustainability Grant
Strategic Sourcing received a first-of-its-kind $5,000 grant from The Dreaming Fund of the Community Foundation of Greater Birmingham to expand on our supplier sustainability program. Our benefactor selected Strategic Sourcing's initiative from among more than a dozen proposals from students, staff, and research groups.

The grant will support our Provost's Sustainability Internship Project by helping us move to an online database that suppliers can access to update their progress. The database will also enable the University to communicate additional information to participating suppliers and exhibit supplier progress as an incentive to participate in the program. Further, we will need training and marketing materials for both our own staff and our suppliers and we now have a budget to support these goals.

Procurement Services Benefits Achieved

As part of the systemwide P200 initiative, UCSC Procurement Services Buyers set a goal to realize $1.4 million in benefit for FY 15. As of June 30, 2015, UCSC buyers have negotiated direct savings of $1,127,277 for our campus plus an additional $779,326 for purchases made during FY 15 based on legacy agreements established prior to FY 15, for a total of $1,906,603. The graph below breaks down the current fiscal year’s cost savings (not including legacy) by CruzBuy division/department groupings.

When planning a large dollar/volume purchase, please reach out to Procurement Services at the earliest opportunity. Engaging Buyers early in the process allows them to develop the most ideal cost-saving strategy.

Benefits Realized

Procurement Services Metrics

The below bar graph identifies the total number of requisitions processed within CruzBuy between July 1, 2014, and June 30, 2015 (FY15), including those processed and approved by Procurement Services Buyers

The below bar graph identifies the total number of requisitions processed by Business Contracts out of the total requisitions processed by Procurement Services Buyers between August 1, 2014, and June 30, 2015.

The below pie chart highlights all requisitions processed during FY15, with turn time breakdowns for Procurement Services Buyers. Turn times are based on time between final department approval and the final Buyer approval.

National Gift Card (NGC) – CruzBuy Catalog

NGC is an easy-to-use CruzBuy punchout catalog offering a selection of gift cards of various denominations from over 100 suppliers, such as Amazon, Home Depot and Safeway. NGC also offers American Express and Visa plastic award cards, which can be used at a variety of retail locations. Instructions to guide users through their gift card purchase is easily accessible on the NGC home page, and includes a reminder regarding the requirement for a department head approval during the checkout process.

The National Gift Card punchout is located in the CruzBuy showcase Miscellaneous section. This new ordering method eliminates the need for staff to leave campus to shop for gift cards, and replaces the need to fill out the Food & Entertainment form for gift card purchases.

Supplier Quote Requirements

While best practice would be to have a quote on every order, we understand it is not always practical or efficient on low value purchase orders. The benefit of backing up your purchase requisition with pricing information such as a quote, email with pricing, or screenshot of website pricing is that it would offer support and assist if any transactional issues were to arise with invoicing, or a dispute at a later date around the original terms of the order.

General Rule:
  • If the order is less than $5,000.00, considered a LVPO-Low Value Purchase Order, quotes are preferred, but are not required. The information provided on the CruzBuy purchase requisition must be determined by the Procurement Buyer to be sufficient, and must articulate a clear and concise contract for the requested goods or services with the supplier. In addition, Procurement Buyers will perform price reasonableness in the most efficient means possible.
    • Note: If the requisition order is over $2,999.99 on federal funds, a quote is required. Source Selection and Price Analysis on the Fed Fund Checklist is performed by the Buyer in collaboration with the requesting department.
  • If the order is a restricted commodity, and between $5,000 and $100,000 a quote/proposal, or multiple quotes/proposals may be required; Procurement Buyer’s will perform price reasonableness.
  • When the CruzBuy requisition is over $100,000 reasonable price is established through formal competition sufficient to ensure an adequate market test.
Additional information regarding CruzBuy supplier quote requirements and price reasonableness requirements is available at:

Pre-planning / Rush Requisition Requests

Have a rush requisition request and don’t know what to do? We are here to help.
  1. First, submit your requisition as soon as possible in CruzBuy and add a comment/notification on the requisition that it is a time sensitive rush request.
  2. Second, contact the Procurement Services Helpdesk at 9-2311 or, with a notification of the rush requirement.
Procurement Services will do its best to accommodate your request. Pre-planning is always extremely appreciated. Our standard approach is to process orders in order of receipt. Involving Procurement in the process early best positions the Buyers to negotiate better pricing and terms with the supplier.
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