Chapter8 - Purchase Documents

Introduction
This chapter describes the different purchase documents executed under a departments' purchasing authority. The competitive and non-competitive purchase of non-IT and IT goods and non-IT and IT LPA orders will most often be executed on the Purchasing Authority Purchase Order (STD.65). IT service contracts may be executed using a STD.65 or a Standard Agreement for IT Goods and Services Only (STD.213).

Also included in this chapter are policies and procedures regarding the State Contract and Procurement Registration System (SCPRS), which provides a uniform reporting process for contracts and purchases of goods and services (both non-IT and IT) over $5,000.00.

Topic	See Page
Topic 1 - State Contract and Procurement Registration System (SCPRS)	4
Topic 2 - Common Practices for Creating Purchase Documents	6
Topic 3 - Purchasing Authority Purchase Order (STD.65)	8
Topic 4 - Items Requiring Special Attention When Executing STD.65s	12
Topic 5 -Transportation Management Unit (TMU)	14
Topic 6 - Standard Agreement for IT Goods and Services (STD.213)	15
Topic 7 - Amending a Purchase Document	19

Topic 1 - State Contract and Procurement Registration System (SCPRS)

8.1.0 Purpose of SCPRS
The SCPRS, an Internet-based application, was developed as a contract tracking system to provide a centralized database on state contracting and purchasing transactions.

8.1.1 Registering purchases valued over $5,000.00
In accordance with Management Memo 03-09 departments shall register any and all purchase documents valued over $5,000.00 in the SCPRS.
Note: The system does not prevent departments from recording transactions valued at $5,000.00 and less. Individual departments may elect to do so in an effort to meet internal tracking needs.

8.1.2 Recording the SCPRS number
The registration number assigned by the SCPRS must be entered on all purchase documents prior to issuing the transaction to the supplier. Most purchase documents have been revised to accommodate the SCPRS number commonly located in the top right side of the forms. If a purchase document has not been revised to include the SCPRS box, the buyer must manually record the SCPRS number in the top right side of the form.

8.1.3 Registering responsibilities
Registering the purchase document with the SPCRS remains with the department that completes the transaction. Consequently, responsibility for entering the SPCRS registration number information is as follows:

If the transaction	Then SPCRS registration is the responsibility of the
Is within the department's approved purchasing authority	Department who will: Record the assigned registration number onto all the purchase document copies prior to releasing the supplier. Retain a copy of the purchase document with the recorded registration number in the procurement file.
Requires DGS review and approval	Requesting department who will Record the assigned registration number onto all the purchase document copies ONLY AFTER obtaining the required DGS approval and prior to releasing the supplier Retaining a copy of the purchase document with the recorded registration number in the procurement file.
Is purchased by DGS on behalf of a department	DGS/PD who will Record the assigned registration number onto all the purchase document copies.

8.1.4 Consequence of not reporting
Departments failing to record transactions in the SCPRS registration system will be considered non-compliant with purchasing authority requirements, which may adversely impact the department's purchasing authority.

8.1.5 Amendments must be registered
Purchase document amendments must be recorded in the SCPRS.

If an original transaction was valued at $5,000.00 or less and an amendment results in increasing the transaction to over $5,000.00, both the original transaction and the amendment must be entered in SCPRS.

Topic 2 - Common Practices for Creating Purchase Documents

8.2.0 Standard forms
The two standard purchase documents available to departments under the purchasing authority program are:

8.2.2 Purchasing Information Network (PIN) users
Departments executing the PIN version of the STD.65 (STD.65-PINDEL) should be aware that the STD.65PINDEL currently does not have an area to record the SCPRS number. The SCPRS number must be hand recorded on the executed order. Refer to Topic 1 of this chapter for information on SPCRS.
Note:DGS/PD recommends that departments refer to the instructions located on the last page of the STD.65 for completing the STD.65-PINDEL purchase documents issued from PIN.

8.2.3 Signatures
Only authorized personnel delegated signature authority by department management may sign purchase documents on behalf of the State. Original signatures are required on purchase documents. Stamped signatures are not allowed. Signatures must be secured from the department's accounting office verifying the availability and encumbrance of funds and the departmental personnel authorized to sign the purchase document as supported by the department's documented signature authorization list.

8.2.4 Handwritten changes are discouraged
Handwritten notations and/or corrections are not generally acceptable methods to affect changes to purchase documents. All corrections and changes must be formalized by an amendment to the purchase document.

8.2.5 STD. 96 not valid for purchasing authority use
The Purchase Order/Estimate Change Request (STD.96) may only be used by a department to request a change to a Purchase Estimate (STD.66) submitted to DGS/PD or to a purchase order issued by DGS/PD.
The STD.96 may not be used to create an amendment to a STD.65 under a department's purchasing authority.

8.2.6 Executing purchase documents
Departments are reminded that a purchase is not fully executed, regardless of the type of purchase document used, until all the necessary approvals and signatures have been obtained and secured on the purchase document as applicable to the purchase. Refer to Chapter 10 and Chapter 11 for additional information.

8.2.7 Receiving goods and services
Purchase documents regardless of being for products or services must be properly executed and fully approved prior to the department receiving any products and/or having any services performed by a contractor. Refer to Chapter 10 and Chapter 11 for additional information.

Topic 3 - Purchasing Authority Purchase Order (STD.65)

8.3.0 Alternate STD. 65/65a formats
Departments must use the STD. 65/65a as provided by DGS/PD and available from DGS/OSP or any STD.65-PINDEL issued from PIN. If a department creates an alternate version of the State's STD.65 as made available by DGS/PD, it must submit the alternate version to DGS/PD for review and approval prior to executing any orders using the alternate format. DGS/PD will approve only one alternate format to be used by a department at any given time.
Note:This review and approval process is required even if the document is re-created as an exact replica.

8.3.1 Approval process for alternate format
Departments proposing to use an alternate format for the STD.65 must submit a request through the DGS/PD Forms Coordinator as follows:

Step	Action
1	Prepare a request memo identifying the change(s) to the STD.65/65a and state why the change(s) is/are necessary.
2	Prepare and attach to the memo a "mock up" of the proposed STD.65/65a identifying all requested changes.
3	Secure approval by the department's Procurement and Contracting Officer (PCO) as recorded on file at DGS/PD or Purchasing Authority Contact (PAC) with an indication that the PCO concurs with the request.
4	Route the request to the attention of: Forms Coordinator DGS Procurement Division 707 Third Street, Second Floor South West Sacramento, CA 95605
5	The DGS/PD Forms Coordinator will review the proposed changes and will determine whether or not the changes are acceptable.
6	A letter will be prepared by the DGS/PD Forms Coordinator approving or disapproving the changes, which will be forwarded to the requesting department's PCO. A copy of the DGS/PD response will be provided to the Purchasing Authority Management Section (PAMS).

8.3.2 Common purchase order format
Departments granted multiple purchasing authorities and/or conducting purchasing activities in multiple units or locations shall use a common purchase order document. A department may concurrently use the STD. 65/65a as provided by DGS/PD, any of theSTD.65-PINDEL formats as issued from PIN, and an alternate format approved by DGS/PD.

8.3.3 Grace period to comply with State revised STD. 65/65a
Departments will have a 90-day grace period to comply with the required use of any future revisions to the DGS/PD STD.65/65a. This 90-day period includes obtaining re-approval of a revised alternate format that includes new revisions to the State's STD.65

A department may request an extension to begin using a STD.65/65a revision by justifying the extraordinary circumstances requiring the extension, identifying how the department will implement the changes reflected in the revision during the extension period, and providing an estimated timeframe within which the department will begin using the revised version.

8.3.4 Unique numbering
To avoid duplicate billings by DGS/PD and/or incorrect supplier invoicing, and to facilitate tracking and DGS/PD oversight, the department's agency order number must be unique from transaction to transaction and from year to year.
Example
03-001, 03-002, 03-003
The first two digits represent the fiscal year of the purchase order issue date. The department may determine the number of digits following the fiscal year, but the total number of characters in the sequence may not exceed 12. This maximum number of characters does not include the amendment number.

Amendments must be identified using the original agency order number and an amendment number. The amendment number must be numeric and may not exceed 2 digits.
Example
03-001, Amendment No. 01
03-001, Amendment No. 02
03-001, Amendment No. 03

Note: The amendment number must be entered in the "Amendment No." box on the STD.65.

8.3.5 Attachments to STD. 65
Dependent upon the procurement approach, purchase documents as released to a supplier may include any, all or none (i.e. LPA) of the following attachments:

Non-IT Goods Purchase Order	IT Goods and Services Purchase Order or Contract
General Provisions (GSPD-401)	IT General Provisions (GSPD-401IT)
Agency Special Provisions for additional requirements unique to the individual department.	IT Contract Language Modules Purchase Special Provision Maintenance Special Provisions Software License Special Provisions Personal Services Special Provision Agency Special Provisions for additional requirements unique to the individual department.	Statement of Work	Statement of Work	Specifications, Exhibits, Diagrams, etc.	Specifications, Exhibits, Diagrams, etc.

Click here to access the STD.65
Click here to access the STD.65. Word PDF
Click here to access the PD Model Contracts.

8.3.6 STD.65 Instructions
Buyers must refer to the instructions provided on the last page of the STD.65 entitled "Instructions for completing the Purchasing Authority Purchase Order" to insure complete and accurate information is provided.

8.3.7 CAL-Card transactions
If payment is made by CAL-Card, then the "Payment by CAL-Card" box on the STD.65 must be checked as "Yes". This will assist departments in avoiding paying for the purchase twice.

Note: LPAs, in particular CMAS contracts, stipulate whether the Contractor accepts the CAL-Card as a payment method.

8.3.8 Where to send the STD. 65
Departments must distribute the completed STD. 65 as indicated on the bottom of the form (contractor-original and packing slip copies, Procurement Division copy, and agency copy).

Submit the Procurement Division copy upon issuance or no later than monthly in accordance with the reporting requirements as indicated on the STD.65 or as described in Chapter 12 to the following address:

By Mail to:
Department of General Services
Procurement Division
Data Entry Unit - Second Floor, North
P.O. Box 989052
West Sacramento, CA 95798-9052

Hand-Delivered to:
DGS/Procurement Division
Data Entry Unit
707 Third Street, Second Floor North
West Sacramento, CA 95605

Topic 4 - Items Requiring Special Attention When Executing STD.65s

8.4.0 Bill to address
The "Bill to" address shown on the STD.65 identifies for the supplier where related invoices must be submitted for payment. Most often, the address will be the department's accounting office. This address is particularly critical in determining whether or not a supplier's misdirected invoice is eligible for prompt payment penalties.

8.4.1 Ship to address
The "Ship to" address located on the STD.65 identifies the physical location of where the products being purchased are to be delivered. Information must include the name of the department and address.

8.4.2 Ground transportation
All shipments will be made by ground transportation unless otherwise specified on the STD.65.

8.4.3 Procurement method
General instructions for completing the "Procurement Method" on the STD.65 form are described on the last page of the STD.65 as made available via the OSP standard form data base. The following transactions are examples of

Transactions based on Fair and Reasonable Pricing:
Buyers will check the "Competitive" box and record "Fair and Reasonable" or "F and R" on the line provided to the right of the box.

Transactions based on NCB and issued as an LPA
Buyers will check both the "Leveraged" and "Non-competitively Bid" boxes on transactions that are supported by NCB contract justifications but reference LPA terms and conditions.

Transactions based on an Exempted LPA
Buyers will check both the "Leveraged" and "Exempt" boxes on transactions that are LPAs and are identified as "exempt".

Example:
Cal-Net, WSCA are LPA contracts that are exempt for obtaining multiple offers so both boxes on the STD.65 would be checked.

8.4.4 PIA orders
The department's purchasing authority number must be recorded in the box titled "Purchasing Authority Number" on the STD.65. The department may either enter "PIA" in the box titled "Leveraged Procurement Agreement Number" on the STD.65 or leave this box blank.

It is also not necessary for buyers to check any information located within the Terms and Conditions block of the STD.65 as this information is not applicable to a PIA purchase.

8.4.5 Avoid price bundling
Buyers will include product and service line item descriptions and prices and not a bundled configuration with a total price.

Topic 5 - Transportation Management Unit (TMU)

8.5.0 Transportation Management Unit (TMU)
The TMU was established in accordance with the provisions of GC section 14920 et. seq. Departments must contact TMU at (916) 376-1888 to determine the cost and routing of freight whenever the weight of the purchase is 100-lbs or more and F.O.B. Destination, Freight Prepaid is not used. The TMU also reviews and approves freight invoices in accordance with SAM section 3851, 3852 and 8422.1. Refer to Chapter 9 for additional information. Click to access the TMU web page.

8.5.1 Free on Board (F.O.B.)
The shipping term Free on Board (F.O.B.) identifies the location where title to the goods changes from the seller (supplier) to the buyer (department).

When goods are purchased F.O.B. Destination, Freight Prepaid or F.O.B. Destination, Freight Prepaid/Add, title to the goods remains with the supplier until delivered by the carrier to the consignee in original or acceptable condition. If loss or damage occurs in transit, the seller is obligated to replace the goods or otherwise compensate the consignee (State).

Most State purchases will be acquired using the term F.O.B. Destination, Freight Prepaid. LPA purchase documents, unless otherwise specified within the individual LPA user guide, will also identify F.O.B. Destination, Freight Prepaid as the shipping term.

8.5.2 Contact TMU
Departments must contact TMU prior to using the following shipping methods:

Topic 6 - Standard Agreement for IT Goods and Services (STD.213)

8.6.0 STD. 213 standard agreement for IT goods and services
The use of the Standard Agreement for IT Goods and Services Only (STD.213) purchase document is limited to departments with approved IT purchasing authority and is most commonly used for contracts resulting from a competitive solicitation. The contract must be strictly for IT services or in instances where the IT goods being purchased are subordinate to the value of the IT services.

Example:
Departments acquiring PC equipment maintenance services resulting from a competitive solicitation would execute a STD.213 for IT goods and services.

8.6.1 Differing forms
The Standard Agreement for IT Goods and Services Only (STD.213) document is the only acceptable service contract form for use by departments granted IT goods and services competitive solicitation purchasing authority.

This form differs from the Standard Agreement (STD.213), used for non-IT personal and/or non-IT consulting services, which is maintained by the Office of Legal Services (OLS).

8.6.2 Recording the purchasing authority number
Departments executing IT service contracts using the Standard Agreement for IT Goods and Services Only (STD.213) will record the purchasing authority number in the information block entitled "Purchasing Authority Number" located in the upper right side of the form.

8.6.3 SCPRS tracking
The SCPRS-assigned tracking number must be recorded in the designated box in the upper right corner of the Standard Agreement for IT Goods and Services Only (STD.213). Refer to this Chapter 8 , Topic 1 for SCPRS requirements.

8.6.4 Unique numbering
To avoid duplicate billings by DGS/PD and/or incorrect supplier invoicing, and to facilitate tracking and DGS/PD oversight, the department's contract number must be unique from transaction to transaction and from year to year. Example 03-001, 03-002, 03-003 The first two digits represent the fiscal year of the contract issue date. The department may determine the number of digits following the fiscal year, but the total number of characters in the sequence may not exceed 12. This maximum number of characters does not include the amendment number. Amendments must be identified using the original contract number and an amendment number. The amendment number must be numeric and may not exceed 2 digits. Example 03-001, Amendment No. 01 03-001, Amendment No. 02 03-001, Amendment No. 03 Note: Since the Standard Agreement for IT Goods and Services Only (STD.213) does not include a separate box for the amendment number, the amendment number must be entered with the contract number in the "Agreement Number" box.

8.6.5 California Department of General Services Use Only block
Located in the lower right corner of the Standard Agreement for IT Goods and Services Only (STD.213) is an information block identified "For DGS/PD Use Only". A stamp of approval from DGS/PD is recorded when a STD.213 exceeds a department's purchasing authority for competitive solicitations or NCB contracts. Departments may record information in this information block only if the contract does not require review and approval by DGS/PD.

Example: "Further review and approval by DGS/PD is not required in accordance with Management Memo 03-10, Attachment C (5)."

8.6.6 Number of copies
Standard Agreement for IT Goods and Services Only (STD.213): Transactions executed under approved IT competitive purchasing authority and within the established authorized dollar thresholds must be prepared in quadruplicate, at a minimum, with original signatures, and distributed as follows:
1-copy to the contractor
1-copy to the requesting department
1-copy to the State Controllers Office (SCO)
1-copy to DGS/PD

IT service transactions exceeding a department's DGS/PD approved purchasing authority must be submitted to DGS/PD, when required, in quadruplicate with original signatures for review, approval, and distribution as follows:
1-copy to the contractor
1-copy to the submitting department
1-copy to the State Controllers Office
1-copy to DGS/PD

Note: Upon securing final approval from DGS/PD, the submitting department will receive two copies of the finalized contract for distribution. The department retains one copy and provides one copy to the contractor.

8.6.7 Agreement/ Summary Form (STD.215)
In conjunction with the Standard Agreement for IT Goods and Services Only (STD.213), departments are required to complete an Agreement/Summary (STD.215). This form provides an overview of the contract's purpose, funding information, procurement methodology, and a justification for contracting out services (GC section 19130).

Signatures must be secured from the department's accounting office verifying the availability and encumbrance of funds and the departmental personnel authorized to sign the STD.215 as supported by the department's documented signature authorization list.

A copy of the approved STD.215 must be retained in the procurement file. If the transaction exceeds the department's approved purchasing authority, then the department will forward a copy of the STD.215 with the Standard Agreement for IT Goods and Services Only (STD.213) to DGS/PD, retaining a copy of the documents for the department's procurement file. Click here to access an STD.215 Agreement/Summary.

8.6.8 Where to send the STD.213/215
IT transactions executed on a Standard Agreement for IT Goods and Services Only (STD.213) and executed under an approved IT competitive purchasing authority within the established authorized dollar thresholds:

Submit the DGS copy of the STD.213 and the STD.215 upon issuance or no later than monthly in accordance with the reporting requirements as described in Chapter 12 - Reporting Requirements to the following address:
By IMS to:
Z-1 DGS/Procurement Division
Data Entry Unite-Second Floor North
707 Third Street,
West Sacramento, CA 95605

By Mail to:
Department of General Services
Procurement Division
Data Entry Unit - Second Floor North
P.O. Box 989052
West Sacramento, CA 95798-9052

Hand-Delivered to:
DGS/Procurement Division
Data Entry Unit
707 Third Street, Second Floor North
West Sacramento, CA 95605

Topic 7 - Amending a Purchase Document

8.7.0 When are amendments necessary?
Amendments to original purchase documents are necessary when there is any change or modification to the original document as issued to the supplier. Examples of when amendments are required include a:

Note: If the purchase is the result of a competitive solicitation, the unit price may not be increased unless specifically allowed in the original solicitation and evaluated for award. Departments must follow the instructions provided in Chapter 5 - Non-Competitively Bid (NCB) Contracts.

8.7.1 Using the proper form to effect a change
Departments may use only the following purchase documents to effect a contract change amendment, no matter how minor the change or amendment:

Warning: Verbal notifications between buyers and suppliers are not an acceptable practice to effect contract changes. Contract changes/amendments must be formally executed to effect a contract change.

Amendments must be identified using the original purchase document number and an amendment number. The amendment number must be numeric and may not exceed 2 digits. The following are common ways of identifying purchase document amendments:
Example
03-001, Amendment No.
01 03-001, Amendment # 1
03-001, Amd # 1
03-001, #1
Note: Dependent upon the purchase document, a designated block may be available for the amendment number. In those instances, the word "Amendment" in any fashion is not necessary.

8.7.4 Recording amendment numbers on the STD.213 for IT goods and services
The current version of the STD.213 for IT goods and services does not include a separate box for the amendment number.

Consequently, both the agreement number and the amendment number must be recorded within the Agreement Number box located in the upper right corner of the document. A department should select a method of recording the amendment and continue using the same identification scheme throughout the life of the contract.

8.7.5 How detailed is an amendment?
Amendments should contain the same degree of detail for changes that the original transaction contained (i.e. increase or decrease in quantity, corrected model number, revised delivery date, change in delivery location, changes to contract language, etc.).

Buyers shall identify what is being deleted and/or added and the impact of the action to the overall transaction.

8.7.6 General guidelines for amendments
Departments are advised to adhere to the following general guidelines regarding amendments:

8.7.7 STD.65 increases/ decreases
If the total amount of the purchase document is being altered, show the original amount, the amount of the change, and the new total within the face of the STD.65. Enter only the revised amount (either plus or minus) in the "Grand Amount" box. Lack of clarity in executing amendments may result in duplicate DGS administrative fee charges.

Example:
Original: $2,000.00
Amd #1: +100.00
__________
Adjusted Total: $2,100.00

8.7.8 Amending a Statement of Work
Departments requiring an amendment to a purchase document that includes a Statement of Work (SOW) should apply the following:

8.7.9 Canceling a purchase document
Canceling an executed purchase document, regardless of contract form, (STD.65 or a STD.213 for IT Goods and Services Only, etc.) requires issuing an amendment, with an amendment number.

The text on the purchase document must state what action is being taken by the amendment and address the expenditures as applicable to the action taken. If expenditures are being disencumbered as the result of the cancellation process then negative values would be shown on the purchase document.

Amendment distribution is no different for a purchase document cancellation then a typical amendment. A copy of the executed purchase document is sent to DGS/PD.

A statement to the effect that the transaction is cancelled in its entirety should also be included.

Example
Amendment #X cancels Purchase Order #XXXX in its entirety effective XX/XX/XX.

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