The Procurement & Property Management Department is responsible for acquiring goods and services and for the management of Berkeley Lab personal property assets necessary for the Lab to fulfill its scientific mission. Goods and services must only be purchased to support business needs. All individuals, including requesters, technical representatives, approvers, and purchase card (PCard) holders, need to ensure that requests and purchases are essential for Berkeley Lab business and are not above what is absolutely necessary to accomplish Berkeley Lab's mission. Berkeley Lab has a purchasing system approved by the Department of Energy (DOE) that establishes its procurement authority. This authority allows us to execute our acquisitions with limited DOE transactional approval. Non-compliance with procurement policies and procedures, which are a part of the overall purchasing system, could result in Berkeley Lab's approval authority being restricted or in revocation of the DOE's approval of Berkeley Lab's purchasing system. In accordance with the approved purchasing system, Berkeley Lab has a responsibility to ensure that: - We act as stewards of public funds, and ensure any item that is purchased is essential for Berkeley Lab business and is not above what is absolutely necessary to accomplish Berkeley Lab's mission.
- Purchases are made using established acquisition methods, including eBuy, PCard, ePro, and the software download page. For additional information on established acquisition methods, see the Procurement & Property Management Make a Purchase web page.
- Acquisitions are subject to competition to the maximum extent possible, and are consistent with Berkeley Lab's mission and objectives.
- All subcontractors are treated fairly and impartially.
- Small business concerns are provided a maximum practicable opportunity to compete for Berkeley Lab's acquisitions.
- All acquisition actions comply with applicable laws and regulations and the University of California-DOE Prime Contract requirements, as well as procurement policies and procedures.
- Costs paid by Berkeley Lab are fair, reasonable, and appropriate for expenditure of federal government funds.
The authority to make contractual commitments through acquisition transactions has been specifically delegated to individuals primarily assigned to the Office of the Chief Financial Officer (OCFO)/Procurement & Property Management Department. Only these formally designated individuals may commit Berkeley Lab to the expenditure of funds. Purchases or commitments made by individuals without delegated procurement authority are considered unauthorized and undergo a ratification process to determine whether the unauthorized acquisition would otherwise have been proper and in the best interests of Berkeley Lab. Individuals making commitments without delegated authority are subject to corrective and/or disciplinary action and may be responsible for payment of charges incurred. See information on unauthorized commitments in Section D.1.7, Unauthorized Commitments and the Ratification Process, and on the Acquisition Planning webpage on the Procurement & Property Management website. In addition, Laboratory employees may be held personally or criminally liable for actions that are not consistent with the equitable treatment of subcontractors and the appropriate expenditures of federal government funds. The information in this section is intended to provide general rules governing the acquisition process; it is not intended to be an exhaustive guide to acquisition requirements. Berkeley Lab employees should refer to information available on the Procurement & Property Management website and direct specific questions to the appropriate Procurement personnel. Inquiries regarding acquisitions can be emailed to the Procurement Help Desk at [email protected]. 2. Restricted Purchases- Under the terms of the UC-DOE Prime Contract, certain types of purchases are prohibited and other types of purchases may be made only after obtaining special approvals. Examples are provided in the Cost Allowability Policy and are specifically addressed in the Restricted Items List. The Restricted Items List includes both prohibited items and special treatment items. In addition, items purchased must be essential for Berkeley Lab business use and not above what is absolutely necessary to accomplish Berkeley Lab's mission.
- Requesters are expected to review the Restricted Items List before submitting an ePro requisition or placing an order on eBuy to ensure that no prohibited items are ordered. Items such as alcohol, decorative items, and food and related supplies for employees or routine meetings, including bottled water, coffee and coffee accessories, cups, plates, and utensils (among other items not listed here) are on the Restricted Items List and are not allowable.
- Special treatment items require special internal approvals or safety measures. These items may be purchased only when the specified requirements are met. Certain items in this category may not be purchased using a division PCard and must be requested with an ePro requisition. Special treatment items allowed to be purchased through the eBuy application are automatically routed to the designated organizations for approval. eBuy purchasers must still comply with safety and other requirements associated with purchases of special treatment items.
3. Organizational Conflict of Interest (OCI)- It is Berkeley Lab's policy to identify and to avoid, neutralize, or mitigate OCIs before:
- Entering into subcontracts or agreements (hereinafter referred to as a subcontract) for advisory and assistance services, or
- Purchasing goods or services that are the direct result of subcontractor recommendations from advisory and assistance services.
- If an OCI cannot be avoided, neutralized, or mitigated, Berkeley Lab will either disqualify the supplier or obtain DOE approval prior to entering into a subcontract with the supplier.
- An OCI means that a relationship or situation exists in which an offeror has past, present, or currently planned interests that relate to the work to be performed under a Berkeley Lab subcontract and that the conflict may reasonably:
- Diminish the offeror's capacity to give impartial, technically sound, and/or objective assistance or advice, and/or
- Result in the offeror's being given an unfair competitive advantage.
- Advisory and assistance services can mean the furnishing of professional advice or assistance rendered to improve the effectiveness of Laboratory management processes or procedures (including those of an engineering and technical nature). In rendering the foregoing services, outputs may take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, training, and the day-to-day aid of support personnel needed for the successful performance of ongoing Berkeley Lab operations.
- Advisory and assistance services are classified in one of the following definitional subdivisions:
- Engineering or technical services.
- Management support or professional services.
- Studies, analyses, and evaluations.
4. Personal Conflict of Interest- It is University policy to separate an employee's University and private interests and to safeguard the University and its employees against charges of favoritism and self-dealing in the purchase of goods and services.
- To avoid conflicts of interest in connection with purchases, employees are generally prohibited from making or participating in the making of a decision relating to the award, negotiation, or administration of a subcontract if the employee has a financial interest with regard to the decision as described in the University of California Conflict of Interest Code.
- California state law prohibits University employees from engaging in outside activities that are funded through a University contract.
- "University employees" means current or former employees of the University of California (UC), UC Campuses, UC Office of the President, UC Medical Centers, Lawrence Berkeley National Laboratory (LBNL), Los Alamos National Laboratory (LANL), and Lawrence Livermore National Laboratory (LLNL).
- Certain restrictions apply to:
- Post-employment subcontracts with former University employees.
- Purchases of goods and services when the transaction involves an employee-vendor relationship (i.e., purchases from a University employee, former employee, or the near relative of an employee).
- Refer to the Conflict of Interest Policy for additional information, and contact the Procurement Help Desk for clarification if necessary.
5. Emergency Acquisitions During an Emergency Operations Center (EOC) EventAn emergency circumstance is any circumstance requiring that an acquisition be made in order to avoid, eliminate, or reduce imminently hazardous or destructive situations involving persons or property, including the potential loss of important experimental data or hardware. - The Laboratory will notify employees of initiation of an EOC Event. If an emergency circumstance arises during a designated EOC event, the requester must contact the Procurement department so Procurement may coordinate with the OCFO Finance Section Chief and the EOC Emergency Director to verify the need for the acquisition.
- Requesters will be required to submit a requisition for the acquisition if the Financial Management System (FMS) is up and running. If FMS is not available, or the requester is not able to provide a requisition, this must be communicated to Procurement and a requisition will be required to be submitted by the requester immediately after the EOC event has been concluded.
- Additional approvals may be required based on the dollar value of the acquisition.
- Only Laboratory employees may request emergency acquisitions.
6. Emergency Acquisitions Outside of an EOC EventAn emergency circumstance is any circumstance requiring that an acquisition be made in order to avoid, eliminate, or reduce imminently hazardous or destructive situations involving persons or property, including the potential loss of important experimental data or hardware. - If an emergency circumstance arises during normal working hours, employees must contact Procurement or utilize a division PCard to obtain emergency-related materials or services.
- In the event of emergency circumstances outside of normal working hours, when normal acquisition methods are not available, employees are permitted to purchase items that have a low-value price. Acquisitions for high-value items require the approval of the requester's Division Director. Payments may be completed by either below method:
- Travel Charge Card. When on pre-approved travel status, employees are allowed to use their Berkeley Lab travel charge card for the purchase of low-value items needed in the course of their work under emergency circumstances. The limit on miscellaneous business expenses while on travel is determined by the traveler's division/department based on business need. Reimbursement requires submittal of a travel expense report approved by the original approver of the trip. The required documentation (receipts, etc.) and limits are governed by Berkeley Lab travel policies contained in the Travel Policy.
- Personal Credit Card or Cash. Purchases made for business-related goods or services under emergency circumstances using a personal credit card or cash may be reimbursable by completing a Payment Request, which must be approved by an authorized signer in the Laboratory's Signature Authorization System (SAS). Guidance for completing a Payment Request can be found on the Accounts Payable website. Original receipts are required. See the Payment Requests Policy for more information.
- In instances where a vendor provides goods or services to the Lab in an emergency, and the vendor remains unpaid (the individual did not pay with personal funds), the individual responsible for making an emergency commitment must notify Procurement no later than the first business day after the occurrence, and provide the following items the same day as the notification to Procurement in order to process payment to the vendor:
- An approved ePro requisition.
- A written justification for the emergency purchase.
- Legitimate emergency commitments made outside of normal working hours where the vendor remains unpaid (the individual did not pay with personal funds) will not be processed as unauthorized commitments as long as appropriate requisitions, approvals, and written emergency justification are provided on the first business day following the occurrence.
- Generally, when the purchase is made in California, the supplier must be advised that Berkeley Lab holds a California state seller's permit, also known as a Resale Certificate, and California state sales tax does not apply. See the Sales and Use Tax (STX) Guidelines document for specific information on when taxes would apply.
7. Unauthorized Commitments and the Ratification ProcessEntering into purchase commitments, subcontracts, modifying subcontracts, or terminating subcontracts by individuals without delegated procurement authority are considered unauthorized commitments and must undergo a ratification process through Procurement. For more information on the process and what constitutes an unauthorized commitment, see the Acquisition Planning web page on the Procurement website. Some examples of unauthorized commitments include, but are not limited to: Committing the expenditure of Berkeley Lab funds by an individual with no delegated procurement authority. Requesting or accepting goods or services from a supplier when a subcontract has not been awarded (note: requisitions are not subcontracts). Authorizing a supplier to perform work or deliver goods without written, delegated procurement authority. Authorizing work that exceeds the total allowable expenditures or that extends beyond the current term of a subcontract. Ordering goods or services that are outside of the scope of the subcontract. Authorizing an order under a blanket subcontract or master agreement without formal designation in the subcontract or master agreement as having authority to issue orders. Improper use of a Berkeley Lab PCard. Directing another person to do any of the above, whether intentionally or unintentionally.
If you suspect an unauthorized commitment has been made, contact the Procurement Help Desk so that Procurement can inform the supplier, notify the responsible individual, and initiate a ratification process. If the commitment is ratified, the procurement specialist will issue a subcontract to the supplier so that work or shipments can commence or continue, and the supplier can be paid.
D.2 Acquisition PlanningThere are established acquisition methods for acquiring goods and services, including eBuy, PCard, ePro, and the software download page (software.lbl.gov). Certain expenditures or commitments, such as employee travel, library purchases, and legal services, are governed by established policies and procedures managed by other Berkeley Lab departments. Before initiating a goods purchase, check the Berkeley Lab's Excess Property list on the Property Management website for the item or material required. If a purchase is necessary, refer to the Make a Purchase section of the Procurement website for general information on available acquisition methods. Review the Purchasing Guide on the Procurement website for detailed information on the recommended acquisition method for the intended purchase. In addition, divisions may have additional purchasing related requirements. 1. Advance Planning- The acquisition process starts with advance planning. The level of acquisition planning is dependent on the dollar value and complexity of the proposed subcontract.
- Advance planning is an essential tool for both requisitioning organizations and Procurement because it provides a method for early notification of intended requirements and an understanding of the entire acquisition process from inception through completion. The information gathered at this stage can also be used for budgeting and scheduling purposes. Procurement uses such information for:
- Planning and estimating the work and workload requirements.
- Identifying opportunities for awards to small business concerns.
- Identifying opportunities for competition.
- Identifying acquisitions of "covered services" (see section D.3. below for more detail)
- Consolidating similar requirements on an institution-wide basis.
- Notifying the DOE of actions that may require its approval.
- Acquisition planning also enables procurement specialists to become involved in the acquisition process as early as possible. This early involvement helps ensure that the work meets the mission or program needs.
- The Advance Acquisition Alert form, available on the Procurement Forms web page, shall be used by requesters to notify Procurement of planned acquisitions of $500,000 or more as soon as a need for a subcontract is known. The requester must provide sufficient advance notice to allow for long lead time items, required approvals, and negotiation of terms and conditions. A procurement specialist will be assigned to consult with the requester to plan for the acquisition and appropriately document the acquisition planning decisions. The Small Business Office and the procurement specialist will work with the requester to develop source lists and ensure small business concerns are provided the maximum practical opportunity to participate in the acquisition.
2. Lead Times- For the acquisition process to work most efficiently, the following acquisition lead times should be considered:
- The requisition lead time (i.e., the time it takes the requester to prepare and submit a complete and approved requisition package to Procurement).
- The lead time Procurement needs to obtain and evaluate offers; conduct negotiations of pricing and other terms as necessary; obtain required approvals; obtain insurance coverage if required; and award a subcontract for the requirement.
- The subcontractor's performance lead time necessary to deliver the required goods or services.
- If the requirement is urgent, the requester should explain the urgency to the procurement specialist as soon as possible. If accelerated performance from a subcontractor is required, the requesting organization may have to pay for premium time, and costs may substantially increase.
- Additional approvals, including DOE approvals, and other determinations may be required before a particular subcontract may be awarded. When any other factors exist, they should be addressed in the requisition with the appropriate checkboxes marked, comments added in designated sections, and the necessary attachments or documentation included to ensure more efficient processing of the acquisition.
3. Defining the Requirement- Purchase requisitions should:
- Describe the goods or services required in a general manner to foster competition. If a specific item is requested, provide sufficient detail for the requested item (manufacturer, model number, etc.)
- Include a confirmation that the item is listed by a Nationally Recognized Testing Laboratory (NRTL) if the item is electrical equipment over 50 volts. See Section 4, Unique Purchases, below for more detail on the NRTL requirement.
- State Berkeley Lab's minimum requirements.
- To the fullest extent practicable, not favor one brand or trade-name article, manufacturer, or supplier over others.
- Include the contact information for any suggested suppliers.
- Include or attach any required sponsor terms and conditions that must be included in the resulting subcontract.
- Use the appropriate item category codes to ensure the requisition is routed for required approvals or notifications and receives the appropriate burdens.
- Indicate if any services will be performed on-site.
- Indicate if the work will include hands-on work, requiring a Subcontractor Job Hazard Analysis (SJHA), or no hands-on work, which will not require an SJHA.
- Indicate the desired service begin and end dates or requested due dates for goods.
- Indicate if there are any specific quality requirements or acceptance criteria (see Section D.3.5, Quality Assurance (QA), for more information).
- Be submitted with any known required documents (e.g., a statement of work, a sole source justification, a request for consultant services form, or a technical review memorandum). For guidance, see the Acquisition Preparation Matrix on the Acquisition Planning webpage.
- Adequately describing the purchase requirement helps ensure timely requisition processing. Purchase requirements must be clearly defined on the requisition or an attached specification, scope of work, or statement of work, which identifies deliverables and specific quality requirements or acceptance criteria.
- Items should be identified by a generic noun (e.g., "personal computer"), defining adjective, and any other useful description. Items specified by a brand name (such as a model number and manufacturer) will be processed as "brand name or equal" to allow for fair and effective competition if another brand of equal capability can be accepted. Berkeley Lab's minimum requirements must be described in detail to fairly evaluate any offers received for that product or service.
4. Unique Purchases- Construction and Architect-Engineer (A&E) Subcontracts
- Subcontracts for architect-engineer services will be executed in accordance with Procurement policies and procedures. Selection of subcontractors will be based primarily on the offeror's professional qualifications, relative experience and competence, and past performance. Cost, price, or other factors may also be considered in the selection of A&E subcontractors. With the exception of design-and-build subcontracts, no subcontract for construction work will be awarded to the subcontractor that prepared the design, or its subsidiaries or affiliates, unless approved by the DOE.
- Subcontracts for construction will be executed in accordance with Procurement policies and procedures, and applicable laws and regulations. In the event of a conflict between state of California and federal requirements, federal requirements will be given precedence. Subcontracts for construction, alteration, or repair of Berkeley Lab facilities are subject to the federal Wage Rate Requirements (Construction), formerly known as the Davis-Bacon Act, which requires that laborers and mechanics receive no less than prevailing wages established by the Department of Labor.
- Electrical Equipment
- All electrical equipment must be approved for use at Berkeley Lab (including remote work locations), or at any subcontractor facility, through the Electrical Equipment Safety Program (EESP). The purpose of the EESP is to ensure the safe installation and use of electrical equipment. Unsafe electrical equipment can pose serious electrocution and fire hazards unless identified by qualified electrical inspectors and remedied by qualified electrical workers.
- LBNL policy requires that all electrical equipment greater than 50 volts is listed by a Nationally Recognized Testing Laboratory (NRTL). NRTL-Listed equipment consists of any electrical equipment that has been accepted, certified, labeled, or listed by an NRTL recognized by OSHA.
- NRTL-Listed equipment is automatically considered acceptable, and is approved for use provided the equipment is not modified and is installed and used within the manufacturer's listing intent.
- Electrical equipment (including borrowed or rented equipment) that has not been listed or accepted by an NRTL may not be used until it has been inspected by the authority having jurisdiction (AHJ).
- Fabrications: Equipment or materials unavailable from commercial sources may be fabricated at Berkeley Lab by job order request to Engineering or outside Berkeley Lab through a subcontract. The Budget Office will determine whether a fabrication should be charged to an operations equipment account. Requests for such determinations should be accompanied by a statement explaining the need for the item, a description or drawing, the desired fabrication schedule, and a cost estimate for fabrication or installation.
- Precious Metals: Eight DOE-identified precious metals — gold, iridium, osmium, palladium, platinum, rhodium, ruthenium, and silver — are special treatment items. Precious metals must be acquired through Property Management unless Property Management has informed the requester that its inventory is not sufficient to satisfy the requirement. A Request for Precious Metals form shall be submitted to Property Management by the requester. If inventory of a precious metal is insufficient, the acquisition must be requested by an ePro requisition authorized by a Berkeley Lab career employee. Only Berkeley Lab employees can be precious metal custodians.
- Acquisition of Excess Property from Other DOE/Federal Entities: Berkeley Lab is authorized to obtain used equipment or materials from federal government excess-material lists. Requests for acquisition of excess property are processed by Property Management and require DOE approval. Requirements for equipment or sensitive property must be coordinated with Property Management after, or concurrent with, these consultations. All excess property coming on-site, regardless of purpose, must be cleared by the Environment, Safety, and Health Division prior to use. Requesters should contact their division safety coordinator to facilitate clearance.
- Borrowing and Vendor Lending Agreements
- Under limited circumstances, Berkeley Lab may be able to obtain equipment for temporary use through the following agreements:
- Berkeley Lab may borrow personal property from other DOE facilities, other federal agencies, or private sector organizations (e.g., educational, research, or nonprofit), but not suppliers (see Property Management Services website — Borrow for Use section for additional information). Property Management utilizes the lending organization's documentation (lending agreement) to establish the borrow file.
- Arranging for equipment to be borrowed from a supplier must be handled by utilizing the Vendor Lending Agreement in accordance with the Vendor Lending Agreement Process document, available on the Procurement Forms web page.
- When the standard Vendor Lending Agreement will be accepted by the supplier without adjustments to terms, the agreement may be processed by the division in coordination with Property Management and does not require Procurement involvement.
- When the standard Vendor Lending Agreement will not be accepted by the supplier without adjustments to terms, Procurement is responsible for documenting the loan agreement in writing and signing the loan agreement for Berkeley Lab.
- All property/equipment borrowed from others must be reviewed and approved
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