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523 - Purchasing

Section: 523-12.1
Effective: 08/15/1984
Supersedes: 09/20/1976
Next Review Date: TBD
Issuance Date: 08/15/1984
Issuing Office: Procurement & Contracts

PPM 523-12.1 Policy [pdf format]
PPM 523-12.1 Exhibit A [pdf format]


      I.        REFERENCES


                    A.        Memorandum to Chancellors from President Saxon, August 3, 1976


                    B.        Business and Finance Bulletins (BFB)


BUS 43

Materiel Management




UCSD Policy and Procedure Manual (PPM)



Equipment Screening




How to Write a Purchase Requisition




Lease of Equipment


   III.        OBJECTIVE


                    A.        The objective of this revision is to establish a standard policy and implement a procedure to assure that purchases of computers (including Word Processing equipment) are consistent with University Policy and the Campus Computing Plan, that expenditures are prudent, appropriate to the task, cost-effective, and that every attempt is made to utilize existing equipment and facilities before proposing new acquisitions.


                    B.        This revision incorporates the previous PPM 523-12.5 “Acquisition of Text Editing Typewriter (Word Processing) Equipment.”




                    A.        Computer


A computer is defined as a stand-alone piece of equipment capable of and used for the processing of information-either numbers or words, and:


                                     1.        Having the ability of being programmed externally and flexibly in advance in some non-machine (symbolic) language.


                                     2.        Providing for the attachment of input and output devices such as teleprinters, card readers, line printers, magnetic tape drives, magnetic disk drives, and telecommunications devices.



                    B.        Mainframe


A mainframe of a computer is, for the purpose of this policy, the central processing unit (CPU) of a computer together with all main memory directly addressable by the CPU.


                    C.        Equivalent Purchases Cost (EPC)


                                     1.        For purchased systems, Equivalent Purchases Cost is the purchase cost, less taxes.


                                     2.        For rented or leased systems, Equivalent Purchases Cost is the monthly rental (exclusive of maintenance costs) multiplied by 36, unless the agreement has a longer base term in which case the multiplier is the length of the base term.


    V.        POLICY


                    A.        Review and Approval


                                     1.        Office of the President - The Office of the President requires the following information regarding the acquisition of computer equipment:


                                                     a.        Proposals or purchase orders for the acquisition (purchase or lease) of mainframes whose Equivalent Purchases Cost is more than $100,000 will be sent to the Assistant Vice President for Information Systems and Computing, for information only.


                                                    b.        The campus equipment inventory system must be able to identify major computer systems (mainframe EPC above $10,000) to permit response to inquiries from the State or Federal government concerning computer equipment.


                                     2.        Campus - The Director, Information Systems and Computing, approves all acquisitions of computing equipment, including acquisitions by transfer from other UC campuses or between departments of this campus (whether or not extramurally funded) except the following:


                                                     a.        Purchase/Lease of Equipment Under $50,000 (Mainframe EPC)


If less than $50,000, the equipment may be purchased or leased directly by submitting a Purchase Order Requisition to Purchasing. Section VI below shall not apply.


The exception provided for above shall not be utilized with the intent of acquiring a computing equipment system by subdividing it into components which individually fall within the exceptions.


The campus approval authority may forward grant and contract proposals to funding agencies or sponsors prior to appropriate review and approval having been finally obtained for any computing equipment, which are part of the proposal. However, such proposals should contain a specific statement, i.e.:


“University review and approval of the proposed computer equipment acquisition listed in the proposal budget is pending. Therefore, award by the sponsoring agency which includes funds for acquisition of such equipment will be subject to University certification.”




                    A.        Requestor


                                     1.        Completes a Request for Computing Equipment form, Exhibit A, and forwards it with a copy of the proposal or Purchase Order Requisition to the Director, Information Systems and Computing, at least four weeks in advance.


                                     2.        If approved, requestor, if submitting a proposal, attaches to proposal and forwards to Office of Contract and Grant Administration. If procurement, requestor attaches Purchase Order Requisition and forwards to Purchasing Division, along with Equipment Screening form, and Agency approvals (when required).


                    B.        Director, Information Systems and Computing


                                     1.        If approved, returns to requestor.


                                     2.        If disapproved, returns to requestor with explanation.


                                     3.        Submits copies to Assistant Vice President for Information Systems and Computing where required.


                                     4.        Prepares and submits to the Assistant Vice President for Information Systems and Computing an annual report of all computing equipment approved or conditionally approved for acquisition during the previous fiscal year with an Equivalent Purchase Cost greater than $100,000 including a statement on the status of each acquisition.


                    C.        Purchasing Division


                                     1.        Initiates purchase action when necessary approvals have been obtained.


                                     2.        Provides required Purchasing documentation and information, including equipment screening verification.


                    D.        Office of Contract and Grant Administration


                                     1.        Requires approval request form, prior to submission of proposals which contain computing equipment or services as described above.


                                     2.        Assists department in obtaining agency approval (where required).