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    <span style="font-size:12.0pt;font-family:"Times New
      Roman","serif"">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.<o:p></o:p></span>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">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.<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">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 verbal<span
          style="mso-spacerun:yes">  </span>computer 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.<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">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.<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">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: <a
          href="http://www.jlab.org/div_dept/admin/business/secure/emergency.html">http://www.jlab.org/div_dept/admin/business/secure/emergency.html</a>.
        <o:p></o:p></span></p>
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      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">More information is available in
        the full version of this memo, posted at: <a
          href="http://www.jlab.org/memo/2012_Unauthorized_Purchases.html">http://www.jlab.org/memo/2012_Unauthorized_Purchases.html</a>.<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif""><o:p> </o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">Sincerely,<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">Lynn McKnight<o:p></o:p></span></p>
    <p class="MsoNormal"
      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
        Roman","serif"">Jefferson Lab<o:p></o:p></span></p>
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      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal">Procurement Manager</p>
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      style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
      normal"><span style="font-size:12.0pt;font-family:"Times New
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        EN-US;mso-bidi-language:AR-SA">This message is being sent on
        behalf of the Jefferson Lab Procurement Department.</span></i>
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