SB52 to change purchasing guidelines
New rules take effect in 2007
KU's Lawrence campus and Fort Hays State University have been selected to take part in a three-year pilot program starting next year that will exempt the universities from state purchasing requirements. The program is part of Senate Bill 52, passed in May.
As part of the program, KU will be eligible to purchase supplies, materials, equipment, property and services, including travel, without the transactions being authorized by the division of purchasing. The university will also be exempt from the Prison-made Goods Act, which requires state entities to purchase items such as furniture or paint made by Kansas Correctional Institution inmates as long as there is available supply.
Administrators expect the program to present an opportunity for savings and increased efficiency.
"I think probably the most significant difference is we won't be required to buy off of statewide contracts," said Theresa Gordzica, chief financial officer.
The university is working on proposed policies to be adopted by the Kansas Board of Regents for the pilot program, which will begin June 1. Until the program starts, the university is subject to current purchasing guidelines.
Barry Swanson, associate comptroller and director of purchasing, said he foresees savings for the university and state, as purchases will be able to be made using processes designed to meet KU's specific needs. KU will also be able to pursue the acquisition of goods and services that have been determined by the university to best meet the needs of its students, faculty and staff instead of being required to purchase items on state contract.
"I'm convinced we will see some significant savings," Swanson said. "It will be more efficient, and in many ways, I believe, the state can benefit from this as well."
KU will still have the ability to buy items from KCI, or from state contract vendors, the difference being that once SB 52 is fully implemented KU will not be required to use these sources of supply and will be free to make business decisions that best promote the specific interests and goals of the university.
As part of the program, the Board of Regents and the division of purchasing within the department of administration are required to annually report to the legislature about the impact of the program.
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