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Purchasing Policy
Name of Policy
Purchasing Policy
Policy Number
XVI. 2
Procurement and Contract Administration
Original Policy Date
Last Revised Date
Other Related Regulatory Rules Laws & Policies Next Scheduled review Date
Associated Procedures & Forms (Attachments)
Cycle of Reviews


    Department which are allow to transact, purchase, negotiate and procure equipment’s, supplies of materials and services from the suppliers with the authorization and approval of Budget and Accounting Director and Rector.

    Responsible for writing specification, awarding contracts, making recommendations and connected with requisitioning of procurement of equipment, supplies and services used by the purchasing department shall not solicit nor accept, under any circumstances, any discounts, personal gifts or gratuities, or lodging expenses from the suppliers which might influence for the selection or purchase of such materials or services.

    1. To purchase supplies, materials and equipment to related services for the various departments of the University.
    2. To assist in expediting the delivery of materials to meet the requirements of the end-user ( departments )
    3. To handle complaints, claims adjustments to supplier for the return of materials and arrange for the other settlements.
    4. To handle all correspondence with suppliers relating to quotations and purchase orders.
    5. To set-up standard specifications for materials and supplies commonly used on the University.
    6. To consolidate purchases if possible to obtain quantity discounts for volume order.
    7. To provide requirement contracts with supplier for favorable prices to be obtained.
    8. To request estimates of cost or quotation from suppliers.

    1. Assume full responsibility for making awards to the qualified and responsible low bidder and properly handling these transactions in accordance with the Purchasing Policy and Procedures.
    2. For the convenience and expediency, nonrecurring single purchases of  goods and services defined as small Purchases may be paid for by properly approved department petty cash funds with receipts.

    When possible, all specification for materials, supplies, equipment’s and services shall be worded or designed to permit competitive bidding for the supplying of the articles, commodities, or services to which they apply.Department are requested to anticipate their needs as far in advance as possible to ensure deliveries can be made when needed. If the requisitioning department or the Purchasing department may require submission of satisfactory evidence of the ability to perform, and may seek approval to require a performance bond from the supplier. Upon approval by Administrative Office the suppliers can be required ( at its own expense ) to deliver the supplies of materials and receive to Warehousing and/or department requesting the item.Bidding Policy:Bidding requirements are governed by ranges of the value of the purchase as defined the Vice Rector for Finance and Administrative Affairs. Purchase defined as Small Purchases will be delegated to departments. As the value range increases, bidding requirements will move from requiring only verbal or written quotes from qualified sources, to requiring additional Administrative Approvals for high value procurements.

    Acceptability of Late Sealed Bids:

    All sealed bids must be received in the Purchasing Office on or before the date and hour specified for bid opening. Sealed bids not meeting this deadline will be rejected. No qualifying letters or statements from the suppliers will be considered as justification to accept late bids.


    It is understood that reference to available specification shall be sufficient to make the terms of such specifications binding on the contractor. Any reference to brand names and numbers in the Invitation to Bid clearly describes the articles offered and how it differs from the referenced brand item as specified in the Invitation Bid.The Purchasing department reserves the right  to determined whether a substitute offer is equivalent to and meets the standards of the quality indicated by the brand names references. When the Purchasing received from successful bidder is not considered to be an equal by the department placing the order, it will return to supplier, shipping charges collect. Any substitutes must be approved by the Purchasing Office prior to shipment.


    The award shall be made to a qualified and responsible bidder whose articles or services conform ( considering quality, purpose and use ) to ht e specifications, who can guarantee the delivery date specified in the Invitation to Bid.

    Acceptance or Rejection of Bids:

    Purchasing reserves the right to reject any or all bids, to waive any informality in the bids, and to make awards as indicated on the bid documents. Such cancellation will be made by the Purchasing Office by written notice to supplier.

    An award shall be made to qualified and responsible supplier with the lowest bid whose article or services best meet the conditions specified. The Purchasing department reserves the right to cancel purchase orders or part of purchase orders without penalty and without the consent of the supplier. If the supplier does not comply with the terms and condition of the contract, does not perform the work with promptness or diligences, and does not make the shipments within the agreed or specified time. It is the requisitioning department’s responsibility to record and retain evidence of warranties on items purchased. It is also the department’s responsibility to determine the warranty terms are fulfilled.

    The Purchase Order is the official document for all purchasing activities. It is the formal   record and reference document for the actual purchase transaction. The terms and conditions of the purchase order give legal protection to the initiating department and to the university. It provides a legal reference and backup in disputes arising from problems in shipping, quality, damage, etc. Each requisition processed by the Purchasing office generally results in the issuance of a purchase order. It is sent to the supplier to initiate and/or confirm a purchase items.

    Types of Purchase Orders Covering in Different Situations:

    1. Standard Purchase Order

      this is an order for supplies, equipment, or services issued by the Purchasing Office as a result of a department submitting a properly approved purchase requisition form.
    2. Confirming Purchase Order

        a confirming purchase order is issued when the formal written order is sent to the supplier after the order has been placed verbally, usually by telephone. The order is marked “Confirming” to advise the supplier of the previous placement and to avoid duplication. This procedure is normally used to expedite order placement and delivery.
    3. Blanket Order

      a blank order covers purchases made during a specific time period and may be issued to cover a variety of purchases. Generally, blanket orders are issued items up to a fixed value limit (as determined by the Purchasing Office and indicated on the blanket order) from the supplier within a specified time period, for a specific items in estimated quantities to be purchased during a given time period.
    4. Standing Order

      This type of purchase order is issued for numerous shipments of specified items during a given time period. The items are shipped by the supplier in accordance with a predetermined schedule stated on the order.
    5. Change Order

      If any change is to be made in a purchase order, issued in the same manner as the original purchase order which is alter.

    Purchase requisition comes from the end-users or departments which to be submitted to Purchasing Office to get the sufficient and specific requirements for their request items. It should be forwarded in advance to Purchasing Officer to allow time for securing bids, processing the order, and delivery.

    Purchase orders are issued by the Purchasing Office with properly approved requisition originated by the departments. After the Purchasing Office has issued the purchased order, copies will be distributed to the supplier and the department responsible for the accounts payable in accordance with University procedures.
    Any discrepancies should be reported to the Purchasing Office immediately.

    Direct Purchase Vouchers may be prepared for the procurements of all supplies and services defined as Small Purchases by the Vice Rector for Finance and Administrative Department. When the materials has been received by the departments officials, the copies of Original direct voucher will be forward to Budget and Accounts with proper and complete documents to arrange the payment of the items.

    Justification for an emergency purchase arising from the unforeseen causes occurs when time is limited and products or services are needed to protect the lives or health of person, to prevent or minimize damage to University property, or to meet other critical requirements. The Purchasing Office should be notified by telephone as soon as possible to expedite the purchase.

    Department credit cards approved by the University may be used for purchase of goods and services made directly by departments. It is also an additional procurement tool for individuals and departments making purchases on behalf of the University for which the University us financially stable.

    A sole source product or service is one that is unique and possesses specific characteristics that can be obtained from only one source.

    The determination as to whether a product or service may be classified as a sole source will be made by Purchasing Office when;

    1. The vendor possesses exclusive and/or predominate capabilities, or the item contains patented feature providing a superior utility not obtainable from similar product.
    2. The product or service is unique and easily established as one of a kind.
    3. The program requirements cannot be modified so competitive products or services may be used.
    4. The product is available from only one source and not merchandizes through wholesalers, jobbers or other retailers.
    5. The products must be interchangeable or compatible with existing products.
    A proprietary product or service is one that is manufactured, marketed or provided by the person or firm that has exclusive rights to manufacture, perform, or sell the product or service. The request for all proprietary purchases must be supported written documentation.

    The Purchasing Office is not authorized to make purchases for individuals. It is the general policy of the University that all memberships and subscription must be purchased in the name of the University and must be directly related to the mission of the department for which the membership or subscription is purchased. It is also the policy of the University to pay dues for only those professional organizations in which the University maintains an institutional membership.

    When a department feels a vendor has not satisfactory delivered the goods or services as requisitioned, the user department initiates a documented contact with the vendor through the Purchasing Office, along with proper documentation. If the issue is not resolved, the case should be referred to the Director of Budget and Accounting Services of the Vice Rector fir Finance and Administrative Affairs for further action.

    The basic policy of the University relative to payment for goods and services is that payment will be not be made until after goods have been received or services have been rendered. Exceptions may be granted and remittances may be made in advance at the item an order is placed if the exception is fully documented and approved in advanced by the Vice Rector for Finance and Administrative Affairs or his designee.

    Before acknowledging receipt from the delivering agent by signature on the bill of lading, freight bill, or delivery ticket, departments accepting delivery of supplies and materials should check the shipment to ensure the number of cartons or packages agrees with that specified on the document and should examine the shipment for possible damage in transit. Any visible damage or shortage should be noted on the delivery document and the driver’s or deliveryman’s signature obtained thereon.

    The policy sets for the guidance of personnel charged with responsibilities over University assets, the basic policies relative to inventory and control or movable equipment.
    The equipment inventory system of the University involves the identification of each separately inventoried item with a numbered inventory tag, an annual printed list to each department of its movable equipment inventory, verification and certification of the annual inventory lists by the department or unit.
    1. Responsibility:

      In general, the custody and control of University movable equipment follows normal college and departmental lines with the department chair being the official primarily responsible for adherence to established policies and procedures in the acquisition, use, maintenance, control, and the annual verification of equipment in his or her custody.

      The Office of Budget and Accounting Services is responsible for;

      1. Providing accurate and concise inventory information to he University Administration
      2. Providing Deans, Directors, and Department heads with an accessible reference of movable equipment inventory under his or her custody and control.
      3. Maintaining and recording records of capital assets.
      4. Preparing property inventory control sheets for each item of movable equipment.
      5. Affixing University identification bar codes to each item of movable equipment.
      6. Maintaining a University-wide inventory control system based on the latest management and technology innovation.
    2. Object Code Classification System:

      The University’s object classification system is based on the nature of the services, articles, or other items for which payment is being made. However, since the proper classification of equipment items on invoices or vouchers when they approved for payment controls the entry of the items into the inventory system. It is important that classification of equipment be made on a uniform basis throughout the University. Department personnel charged with the responsibility of processing invoices and vouchers should be thoroughly familiar with the definition of equipment as approved by the University, and with the equipment classification codes.
    3. Annual Inventory Certification:

      The University requires an annual verification of all movable equipment. Department heads are responsible for the accuracy of the annual departmental movable equipment Inventory lost provided by Director of Budget and Accounting Services. Certification of the annual equipment list by the department head acknowledges the existence and usage of the equipment on the list.

    For the maintenance of an accurate inventory system, it is necessary for deletions to the inventory records be promptly made to reflect trade-ins, sales theft, destruction, equipment cannibalizations or transfer s of property items. When the equipment is disposed of or removed from departmental custody or control, documentation, as required by the University, should be sent to the Director of Budget and Accounting Services or his designee.
    1. Rented or Leased equipment:

      In some situations, it is more economical for the university to rent or lease equipment rather than to purchase it. Under such rental or lease arrangements, the payment should be classified as rentals and not as equipment acquisitions. For leased purchase arrangements, the items should be treated as equipment. If title to leased equipment (not lease-purchases) is subsequently transferred to the University upon completion of a lease agreement, a written report must be made to the Director of Budget ant Accounting Services or his designee in order for the equipment to be proper recorded into the System and tagged as University equipment.
    2. Personally Owned Equipment on University Premises:

      There are occasions when faculty and staff members keep and use items of personal equipment in the University offices and laboratories. Any such personal equipment in University premises should be tagged or labeled to clear indicate personal ownership. Unless there is a written agreement to the contrary, such personal equipment remains at the owner’s risk.
    3. Borrowed Equipment, Exhibits and Demonstration Equipment:

      There are occasions when equipment is loaned to or borrowed by the University by official use. All such arrangement for non-owned equipment should be approved by the appropriate Dean or Vice Rector. A written agreement should be executed with the owner detailing the University’s obligation and responsibilities in connections with the equipment. If University accepts responsibility in writing for damage to or loss of non-owned equipment, a copy of the agreement must be forwardee immediately to the Director of Budget and Accounting Services or his designee in order that proper insurance coverage may be obtained.

    All consumable supplies used in the ordinary course of business and items purchased for resale and/or materials used to produce items for resale should be included in each department inventory. Items in this category located at different sites from the department should also be included. Either a perpetual or periodic system can be used.
    1. Perpetual System:

      Purchases at cost are recorded directly to the inventory account. Items expended are deducted from the inventory account and charged to a cost of the physical inventory on hand. As a control feature, spot counts should be made throughout the year and reconciled with the perpetual inventory records to determine the accuracy of these records. A physical inventory of all items should be taken at least once a year to verify the validity of the perpetual records and to adjust for breakage, theft, obsolete items, etc.
    2. Periodic System:

      Purchases at cost are recorded directly in the purchased account. Beginning of the year opening inventory remains the same throughout the year and is adjusted at year end when a physical inventory is completed.
    3. Adjustment of Inventories at Year End:

      Regardless of when a physical inventory takes place, departments are required to adjust their inventories to account for all related transactions through the end of fiscal year. Inventory adjustment should be made using the special d\forms available from the Office of Budget and Accounting Services.

Consumable policy


  • The policy purpose is to facilitate and expedite the procurement of consumable materials needed continuously by the University College and Departments.
  • The policy explains when price quotations are required.
  • The business Affairs, IT and Technical Affairs Department, may need consumable materials for special purposes. The policy is to facilitate and expedite the consumable materials.


  • The University Purchasing Department establishes annual contracts with reputable and trustworthy vendors or suppliers to ensure availability of all consumable materials in campus whenever required.
Fee Category Up to 200,000.00- 500,000.00 Up to 500,001.00 – 1,000.000.00 Up to 1,000,001.00 – 5,000,000.00 5,000,001.00 and over
Cat.  I   Bid between  200,000.00-500,000.00 500-1,000   1,500.00 -2,000.00    
Cat. II   Bid between  500,001.00 – 1,000,000.00       2,500.00-5,000.00  
Cat.  III  Bid between  1,000,001.00 – 5,000,000.00          
Cat IV   5,000,001.00 and over       5,000.00 over
  • For the purchase of any commodity of the total value equal to a less than 50,000 SR, no three quotations of prices from three different vendors are required.
    P.S. Materials required can be procured through direct purchased.
  • The Vice President for Business Affairs and The Supervisor General of Technical and Engineering Affairs are authorized to procure directly the requirements of their Departments of consumable materials without obtaining prior approval.

Procedure :
  • The University Purchasing Department will prepare a list of all consumable materials required by Colleges and Departments Continuously . Annually.
  • The University Purchasing Department shall identify best available vendors for the different items in consultation with concerned Departments.
  • The University Purchasing Department shall establish annual contract with identified vendors.
  • The Purchasing Department can pay to the vendors a cash advance whenever required.
    Steps Business Processes
    1 Purchasing Process ( CURRENT )
    Received Approved End User Request in a form of  Purchase Request   ( from warehouse dept.) Or Approved Request in a form of Memo Letter
    Approval from Department Head / Director (Supplies / Asset’s Request Form)
    Approval from Budget & Accounting Director, Noted by: Warehouse keeper     ( Purchase Request Form )
    2 Prepare RQF for ( 3 ) vendors – if required  ( Send by: Fax and Email )
    3 Prepare P.O ( attached with approved vendor )
    4 Approval of P.O. ‘S ( Finance dept and Rector’s office )
    5 Releasing of Purchase Order ( Vendor , concern dept., file )
    6 Prepare Down/Advance Payment Request ( If  there is any ) -attached with approved P.O. then submit to Rector’s office for approval
    7 Approved down/advance payment request ( submit to acctg. Dept. for cheque preparation.)
  • No prior approval of the procurement of the consumable materials is required.
  • Only the cheque to the total value of the consumable materials to be forwarded to the Rector for his signature
    Business Process Title:   PURCHASING
    Business Process Title:  PAYMENT PROCESS
    Steps Business Processes
      1. Payment Process- P.O. only  ( CURRENT  )
    Documents attached to process the payment : Copy Approved P.O. , Original/Copy of Invoice and Delivery Note ( from: warehouse ), Receiving Sheet ( from: warehouse ), Material Receiving Report             ( from: Purchasing ) and Copy of Down payment ( if there is any ) Note: Must be signed by all concerned depts./ person in charge
      2. Prepare a payment request letter address to rector’s office attached with all documents above.
      3. Approved Request ( copy, file and forward to acctg. Dept for cheque process ).
    1. Payment Process - P.O. with contract / terms and conditions
    Documents attached to process the payment : Copy Approved P.O. , Original/Copy of Invoice and Delivery Note ( from: warehouse ), Receiving Sheet ( from: warehouse ), Material Receiving Report         ( from: purchasing ), Completion report/technical report ( from: concern dept). and Copy of Down payment ( if there is/are any ) Note: Must be signed by all concerned depts./ person in charge
    2. Submit Payment Request with documents to rector’s office for approval.
    3. Approved Request ( copy, file and forward to acctg. Dept for cheque process ).

    Fees for Bidders (Bidders Participated in a Project/Contract with PMU)


    Bidders Fee

    Upon participating and confirmation on the invitation to bid for  a certain project/contract. A registration as Bidders Fee is payable by the corresponding fee category.  The fee is for the expenses incurred in  procuring the request bid such as plans, BOQ, BOM, announcement and the likes

    Project Bond

    After payment of registration fees, the participated vendor/supplier shall comply with type of Bonds applicable to them. However , the winning shall assume  the  bonds details as follows:
  • 1% (Bid Bond)  - of total project bids of winning vendors/suppliers to be refunded upon signing of contract; and
  • 5% (Performance/Security Bond)- of total project bids of winning vendors/suppliers upon completion of the project to be refunded if there is no deviation on the specifications/scope of work on the approved plans, BOQ, BOM.  

Terms and payment conditions :

The following conditions setforth  for each category based on the following :
Category        I           Bank Guarantee against 50% Downpayment
Category        II          PMU Standard with Bonds
Category        III  & IV            PMU Standard with Bonds        


Project Bond