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Purchasing Conduct and Ethics: MM0002
Effective Date: May 7, 1997


Purchasing Conduct and Ethics

(Policy MM0002)


I. Purpose/Scope of the Policy

The University is committed to maintaining high standards for performance based
on fair, ethical, and professional business practices. This policy describes the
conduct and ethics required of all University employees who participate in the
purchasing cycle, including (A) authorization for purchases, (B) unauthorized
purchases, (C) employee-vendor relationships, (D) conflict of interest, (E) personal
purchases, (F) acceptances of gratuities by employees, (G) relationships with
vendors, and (H) purchase by employees of excess/surplus University property.

II. Detailed Policy Statement

A. Violation of Policy

Employees who violate this policy may be subject to disciplinary actions.

B. Authorization

Purchases may only be made by employees who have received
authorization in writing from an appropriate official.

C. Unauthorized Purchases

Employees shall not make purchases which they are not authorized to
make. Employees who make unauthorized purchases may be subject to
disciplinary action. See §III. Definitions: Unauthorized Purchases.

D. Employee-Vendor Relationship

Purchases, lease of goods, or contracts for services shall not be made from
any employee or near relative who has an employee-vendor relationship
unless there has been a specific determination by the Director of Materiel
Management that the goods or services are not available either from
commercial sources or from the University’s own facilities. See Policy
MM0003: Employee-Vendor Relationships and Conflict of Interest.

E. Conflict Of Interest

No employee of the University shall make, participate in, or attempt to
     influence any decision if the employee knows or has reason to know that
     he/she has a financial interest in the outcome of that decision. See Policy
     MM0003: Employee-Vendor Relationships and Conflict of Interest.

F. Personal Purchases

University employees shall not use University credit, purchasing power,
and facilities to make purchases of goods or services for themselves or for
non-University activities.

G. Gratuities

University employees and their near relatives shall refrain from accepting
gifts, entertainment, favors or services from present or potential suppliers
to the University that might influence, or appear to influence, purchasing
decisions.

H. Vendor Relationships

In carrying out their purchasing responsibilities, University personnel
shall:

a. Know and observe fair, ethical, and legal trade practices and remain
    alert to the legal ramifications of purchasing decisions.

b. Encourage competition through open, equitable and fair practices.

c. Conduct business with potential and current suppliers openly, fairly,
   equitably, and in an atmosphere of good faith.

d. Avoid restrictive specifications.

e. Avoid the intent and appearance of unethical or compromising
    practices.

f. Promote positive supplier relationships through courtesy and
   impartiality in all phases of the purchasing cycle.

I. Purchase By Employees Of Excess/Surplus
University Property

1. No one employed in a Materiel Management department, or a near relative
    of such employee, may buy excess material directly from the University.

2. No one employed in a department originating excess material, or a near
    relative of such employee, may buy any excess material originating in that
    department directly from the University.

3. The principal driver of a University-owned motor vehicle, or near relative
    of such employee, may not buy such motor vehicle directly from the
    University.

III. Definitions

Unauthorized Purchases: a purchase for which (1) the individual has not been
  delegated the authority to make a purchase against the specified fund; (2) the
  individual has not been delegated the authority to make a purchase of a particular
  item; (3) the item to be purchased cannot be purchased against the specified fund;
  (4) there are insufficient funds to cover the expenditure; (5) the proper purchasing
  procedures have not been followed.

Near Relative: Spouse, child, parent, brother, sister, grandparent, grandchild, or
  in-laws and step-relatives in the same relationship.

IV. Getting Help

The campus Central Purchasing provides training and assistance to campus units
(including help with completing forms, carrying out procedures, or interpreting
policy).

If you need help with ...  Contact ...
...gratuities  Central Purchasing, x92311.
...vendors  Central Purchasing, x92311.
...unclear situations  Central Purchasing, x92311.


V. Applicability and Authority

This policy on Purchasing Conduct and Ethics applies to all campus purchasing
activities.

It is a new policy and thus supersedes any campus practices in existence prior to its
effective date..

The campus Director of Materiel Management is the campus authority for the
Purchasing Conduct and Ethics policy. This policy was reviewed and approved by
the Chancellor on May 7, 1997. Next review date is January 1999.

VI. Related Policies/References for More Information

Related Policies and Procedures

UCSC Policy MM0003: Employee-Vendor Relationships and Conflict of
    Interest

UC Policy and Guidelines Regarding Acceptance of Gifts and Gratuities by
    Employees under California’s Political Reform Act

References

   UC Business & Finance Bulletin BUS-43 - Materiel Management

Related Forms

    Employee Vendor Conflict of Interest Evaluation Form


UC Santa Cruz Policy

Central Purchasing                                                                                                 lrose@cats.ucsc.edu; (408) 459-2084