[All_staff] Avoid Unauthorized JLab Purchases

[deborah magaldi]

In preparation for a Department of Energy Procurement Review Team visit 
scheduled for late August, the Procurement Dept. has gone through a 
preparatory review. While conducting this internal review Procurement 
staff noted a concern regarding an increase in the number of 
unauthorized procurements from FY 2011 to FY12. Examples of unauthorized 
procurements include keeping rental equipment beyond the contract 
period, and placing items on order with a company without a Purchase 
Order from Procurement.

In fiscal year 2011, Procurement had to deal with 11 situations 
involving unauthorized procurements; already in FY12 there have been 12 
cases of unauthorized procurements at the lab. While this is a very 
small number of irregularities, considering the many thousands of 
procurements that take place each fiscal year, the increase is a cause 
for concern and action.

The Procurement Department solicits everyone's support to ensure that 
unauthorized commitments do not occur. To avoid unauthorized 
commitments, avoid actions like telling vendors to ship a product to the 
lab without the proper procurement authorization, or asking vendors to 
hold an item for you while a Purchase Requisition is submitted/approved, 
or executing a verbalcomputer software renewal over the phone or via 
email. Purchase Requests should be submitted in advance of purchases and 
agreements, and receive approval by an authorized person before lab 
money or resources may be committed.

Only authorized individuals can make financial commitments on behalf of 
Jefferson Lab. If a person makes an unauthorized commitment, the costs 
could be unallowable under the prime contract and that individual could 
become personally liable for that commitment.

Procurement staff realizes that there are times when emergency purchases 
must be made -- and is available to assist -- during normal business 
hours as well as after hours. Procurement contact information and 
emergency procurement criteria are posted at: 
http://www.jlab.org/div_dept/admin/business/secure/emergency.html.

More information is available in the full version of this memo, posted 
at: http://www.jlab.org/memo/2012_Unauthorized_Purchases.html.

Sincerely,

Lynn McKnight

Jefferson Lab

Procurement Manager

/This message is being sent on behalf of the Jefferson Lab Procurement 
Department./
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