Hypothetical Three - Dr. Berstein

Dr. Berstein purchases a high-precision isotopic piece of equipment for approximately $60,000, $16,272

of which he charges to an NSF award ending in 4 months.

He purchases the equipment to replace an obsolete older model of the equipment that was far slower

and less precise in its measurements.

Would you approve this charge? If so, why?

If you would not approve this charge, what kinds of additional supporting documentation would

you require from Dr. Berstein?

What recommendations, if any, would you make in terms of reporting to the sponsor regarding

this purchase?

SC Division of Financial and Business Services Purchasing Services

SOURCE AWARD JUSTIFICATION FORM

This form must be attached to all purchase orders larger than $5,000.

Section A: DESCRIPTION OF COMPETITION (Supplier's selection was conducted as checked)

l8l Competition not obtained Explanation: sole source - see additional justification

D Competition obtained previously I Previous PO No.:

[8] Written quotes obtained(attached)

Section B: REASON FOR SUPPLIER SELECTION (Supplier selection was justified as checked)

D Low bidder l8l Sole source (justification attached) I D Contract supplier

0 Contract attached D Contract on file

0 Business justification Explanation:

Section C: PRICE QUOTED DEEMED AS FAIR AND REASONABLE (Provide demonstration that comparisons of same or similar items were obtained to establish price reasonableness. Attach reference and identify type and date of reference used.)

Comparison of proposed prices with: D Previously proposed prices Previous PO No. :

Olndexes D Independent cost estimates D Published market prices

[8] Discount/rebate arrangements D Prices obtained through market research

0 Competitive Lists

Section D: SUPPLIER DIVERSITY COMPLIANCE (The following diverse suppliers were contacted as part of solicitation. Indicate the number of suppliers contacted in each classification. (check www usc. edulsurw.fierdlversity/classifications for definitions)

ANC MOSS Small VOSS [8J None

CDVBE MOLB SBA8(A) WOSB

HBCU PHY HUBZone WOLB

Ml SD VO SB SOB Local

04/25/13

Buyer's Initials Date

University of Southern California, Purchasing Services, UGB 210, Los Angeles, CA 90089-9015 Tel: 213-740-2281 Fax: 213-740-9797

Page 1 (Rev. 11-201 1)

PICL\RRO 3105 Patrick Henry Drive Santa Clara, CA 95054-1815

Phone # 408--962-3900

orders@picarro.com

Bill To Address (USOC001)

University of Southern Cali. USC Accounts Payable PO BOX 77967

Los Angeles. CA USA90007

PO NUMBER SALES ORDER SHIP DATE

05115/13

!Model# I Description I SN#

G2131-I ANAL VZER IC02 Isotopic C02

~Jnumbers 1398-CFGOS2168

50504 HE Fiiter for C02 Apps

FREIGHT CHARGE

PACKAGING & HANDLING

Thank you for your business.

Attn:··· Please add e-ma1: for tracking# to be sent

Quote· 130408MW-014 Thank you for your busln9SI

Fed Ex tracking ifs

PAYMENT INSTRUCTIONS: Remittance Add'lss. Plcarro, Inc

\Nlre transfers: Silicon Valley Bank

INVOICE

Invoice#

Invoice Date 05115/13

Invoice Due Date 06114/13

Ship to Address

Los Angeles, CA USA, 90089

REP INVOICE TERMS SHIPVIA FREIGHT TERMS

Order Qty

Net30 Fedex Saver-PP&B Destination

Ship Qty BIO Qty I Unft Price I Gross amount I 0 78,750.00 US$78,750.00

Total gross US$

Total discount US$

Total freight US$

Total tax US$

US$5,250.00

US$410.00

US$350.00

84,350.00

-29,275.00

410.00

4,452.75

3105 Patrick Henry Dnve Santa Clara, CA 9505+1815

3003 Ta~anta Clara CA 95054 USA Routl~SWlft. ~ for credit to Plcarro, Inc~

Total net amount US$ 59,937.75

Page 1 of1

11/2412015 Summary - PO-

PO/Reference Number - Revision 1 (Closed) Available Actions Add Comment " Supplier Picarro, Inc.

Status Purchase

Order Revisions

PO Approvals

Shipments Receiving Invoices Comments Attachments (8) History

Summary

Hide htader

Capital Asset Management

General Information ?

PO/Reference -Number

~vision.Number 1

A/P status Closed

Supplier Name Picarro, Inc. mn rt!

info

Supplier Number

Address 3105 Patrick Henry Santa Clara, CA 95054-1815 us

Purchase Order 4/29/2013 Date

Original Revision 4/29/2013 Date

Revision Date 6/14/2013

Distribution 4/29/2013 2:31 PM Date/Time

Total 60.441.75

Requisition - view I p110t

Number

Business Purpose Isotope Analyzer for

- Lab

Facilities kounting Codes ....

Delivery

Deliver To

Los Angeles, CA 90089 United States

?

Taxes/S&H

Hide value desw11t1e11<

Billing

Bill To

USC Accounts Payable P.O. Box 77967 Los Angeles, CA 90007 United States

Billing Options

Contract

Payment 0% 10, Net 10 Terms

?

I"' .f_re~ious PO _. •. Number _ ... , .:"'-- ·•

Contact Information

Owner Name

Owner Phone

Owner Email

Campus

UPC ...

Additional Information ?

- ~ ., .. ' "' :: • .,1

Capital Asset Management ? Facilities ?

113

11/2412015

FOB FOB USC

PO Clauses

Summary-PO­

Capital Asset

System Type

Capital Asset System State

Equipment Notes

Orders and Documents Document Search Se.:11<.h Duturnents v

associated with this section Capital Asset Transaction Type

Asset#

V1t:!1'1/ed1t by l11w item,

Accounting Codes

Facilities

Crew Number

Stock Number

Work Order Number

V1e-.v/et.i1t by hn ... 1t.~m ,

?

Account Number Validation Code Object Code Overdraft Funds Request % of Price (use only with resubmission)

53483~ VC5 17900 27.15% ( olhb1>1 Jt1vt Pesearrh S1 IS2J53I' I> .1 ,, ~l'iSll GI A.LL SCJEMTIFlC 1.C UIPMGNT

'locume1111119 Nl ovE.P si;ooo

53483~ VC5 17900 31.54% Coll:ibn1at1v" Rt>se:irch 10SU 5 lJ'i2JS3l'">•lJ<;5J'J61.., 7IS8ICGJALL SCIENTIFIC DUii 'i' 1ENT

use Rui· OVEP c.sqoo

VC12 17900 20.66% 11Jl2lhil·~ll IJ 111,:jCUIEX Sl IENlll-li... EQ J!PML:Nl

OVER s.i;noo

2218011111 VC8 17900 RESEARC~ 2112..!ILI IJ 5JJul J!Sli.:RIEX SCIEI I nm .. EQ1Jll't/IENT

ovFP ssono

16 .66%

22183~ VC8 17900 3.99% PO<;T -DOCTORAL ..! lJ2212 lJ24l ''> l"6l IJ2eJi..RJFX "lClf:tJTffll EQ llJ't 1EM1

FELLOWSHIP- O\'f P $50011

V1ew/Pd1t l.iy line item

External Notes and Attachments ? Internal Notes and Attachments ? Distribution Information ?

Note to Supplier ATIN:--Attachments for supplier

Piu11ro Quote 130.. (410k)

Internal Note Sole Source justificat ion noted on line item 2. FM

Internal Attachments

imy201J0418_12141 . (486k)

Vl_I c'JJOl1 (24k)

DEBARME '>IT CERTIFI (491k)

L:i:.A SAMPLE PRICIN .. (854k)

SOLE SOURCE - 5 pdt (126k)

Pit mro Quote 130 .. (l,628k)

Re FW Plf'c1rlO.m!>y (71k)

Distribution Methods The vslt:111 w ill th tr1IJ4il( pur..h.ise 0rde1 s u~111si the methud1 sl 111d1c.1ted bel0w·

Fax + 1 (408) 962-3200

2/3

11/2412015 Summary- PO-

Line Item Details

Hide hne details For selected line items Add To Active Cart

Product Description Catalog No

1 ./item# G2131-I: 613C High-Precision Isotopic C02 CRDS Analyzer. (This price reflects an original price of $78, 750.00 and a discount of $29,275.00) lJ more 1nb

Taxable

Commodity Code

PO Clauses

2 ./ lter # S0504: He fitter for isotopic C02 a pplications LJ more lllhJ ...

. .....

.... ~.·

Taxable

Commodity Code

PO Clauses

Size I Packaging

EA

23 Research/Lab Supply & Equip

EA

23 Research/Lab Supply & Equip

Unit . P

• Quantity Ext. Price nee

49,475.00 1 EA 49,475.00 USO

Requ1s1tion - view I pr111t

Number

External Note Pricing reflects discount of -$29,275.00 per quote. FM

Attachments for supplier

Internal Note Pricing reflects discount of -$29.275.00 per quote. FM

Internal Attachments

5,250.00 1 EA 5,250.00 USO

Requisition - v 1~w I p1111l

Number

External Note

Attachments for supplier

Internal Note

Internal Attachments

Shipping, Handling, and Tax charges are calculated and charged by each supplier. The values shown here are for estimation purposes, fund checking, and workflow approvals.

Subtotal

Sales Tax

54,725.00

4,956.75

Shipping 410.00 Only

Shipping 350.00 and Handling

?

Total 60,441.75 USO

313

12/1&2015 KFS :: Payment Request Document

Status: FI NAL Payment Request Document ff'

Doc Nbr: •••• Initiator: ~

Payment Request # : -

Created: 12:00 AM 05/22/2013 Payment Request Status: Auto-Approved

••1> d • I < • required field

Document Overvu:w .... • Description: PO- Vendor: 30423-0

Organization Document Number: Explanation:

Vendor

• Year: 2013

• Vendor: , Plcarro, I nc. Vendor #: llMZJ:l!

• Address 1: 13105 Patnck Henry Address 2 :

Customer#:

Check Stub No~:

Special Handling Instructions:

Invoice Info

• l nvolc:e Number:

\

Pay Date: 06/ 14/2013 No (Immediate Pav)

• Invoice Date: 05/15/20 13

PO End Date: Payment Attachment Indicator: I No

Total Amount: 59,937.75

State:

Province: Postal Code: 95054-1815

• Country: United States

Payment Terms: P-Net 30 Days Shipping Title: DESTINATION

Shi pping Payment Torma:

No Payment Request Cost Source: I ESTIMATE

Payment Classification:

E><tract Date: 06/17/ 2013 12:00 AM "'~11 110 Check Routing:

AP Proct!llsed Date: 06/14/2013 09:51 AM

Pl"OC""SS llom• ... \ Obj ect Code and Sub-Ob;cct Code Inquiries and dcscrlptlons have been removed because this Is a pnor year document-

Purchnse Order line Item Totals

Encumbrance excluding freight• s/h

59,650.25

Item Open PO UOM Unit/Ext Uno Qty Price

#

10.00 1

EA 49,475.0000

I' ,,,.,,. Accounting Unes

o.oo EA 5,250.0000 2

I.'""" Accounting Lines

I • hide

• Item Type

Freight

Freight,

Accounting Unes

Shipping and Handling

Shipping and Handling :

Total Encumbrance Amount Relieved Tota lPaidAmount

59,650.25

Qty Tax Use Total Work Unit Cost Ex tended Tax Cata log Stock Invoiced Cost Amount Amount Amount # Order# #

1.00 49,475.0000 49,475.00 4,025.58 0.00 53,500.58

1.00 5,250.0000 5,250.00 427.17 o.oo 5,677.17

Invoice Total Prior to Additiona l Charges: 54,725.00 I

Orlglnal Outstanding Tax Use Total Extended TiilX Description Amount Encumbered Cost Amount Amount Amount f rom PO Amount

410.0000 o.oo o.oo 410.00 Freloht

350.0000 0.00 0.00 350.00 ' Sh1ppmg and Handling

59,1n.1~

AS&lgned To Trade Descrlplion

In Item# G2131-I l3C H•oh-Preclslon Isotopic co2

No CRD5 Analyzer. (This pnce renects an onglnal pnc

Item• 50504

No He fitter for isotopic C02 appllcabons

113

12/1512015 KFS :: Payment Request Document

• "' Accountln11 Lines

Trade In

• ......., Ae>countlng Lines

Payment Temia Discount

Payment Terms Dlsa>unt:

• ""' Ac«iuntlnJI Lines

Full Order Discount

Full Order Dlsa>unt •

11 • .i.,,, Ac:countl!'ll__ Ll_'1e1

Ta•

Tax Corrections

Account Summary

0.0000

0.0000

0.0000

• r~ w \ . "' \ . Id<

0.00 o.oo 0.00 Trade In

Total Before Discount: '55•485•00

o.oo 0.00 0.00 Payment Terms Discount

0.00 o.oo 0.00 full Order Discount

Total Prior to Tax: 55,485.00

Total Sales Tax: 4,452.75 Total Withholding: o.oo

Grand Total Amount to be Paid to Vendor: 59,937.75

Total use Tax:

Grand Total Including Use Tax:

0.00 59,937.75

Object Code and Sub-Object Code 1nqulr>es and desa\pllOnS have been removed beciluse tins is a pnor year document.

Account Summary 1

Fiac;al Year Chart Account Number 121831

Sub-Account Object Code 17900

Sub-Object Project Org Ref Id Organlutlon Document Number 2016 K

Items of Account Summary 1 Item

Item l

Item 2 Freight

Shipping and Hanohno

Account Summary 2

Description Item JI G2131·1: 13C High·Precis1on Isotoplt C02 CRDS Analyzer. (This price renects an original pnc

Item It 50504: He fitter for 1sotop1c C02 applications

FrelQht Sh1pp1ng and Handhn9

11,053.22

1,172.90 8&.10

73.SO

Amount

Amt 12,385.72

Flscal Year Chart Account Number Sub-Account Object Code Sub-Object Project Org Ref Id Organization Document Number Amt 2016 K l2222)1Uj8ill.Ol11 ••••

Items of Account Summary 2 Item

Item 1

ltem2

Fre1oht Shipping and Handling

Account Summary l

17900

Descri ption Item JI G2131·1: l3C High-Precision Isotopic C02 CRDS Analyzer. (This pm;~ renects an onglMI pric

Item It 50504. He r1tter ror lsotoptc C02 appl1cat10ns Freight

Sh1ppl09 Md Handling

Flscal Year Chart Account Number Sub-Account Object Code 17900

Sub-Object Project Org Ref I d 2016 K 22z;21~81J3l11 ••••

Items of Account Summary 3 Item

Item 1

,Item 2

Freight Shipping and Hanchng

Account S\Ammary 4

Description Item# G2131·1: 13C Hlgh·Prec.s1on Isotopic C02 CRDS Analyzer. (This price renects an original pnc Item I 50504 He litter for isotopic C02 appl•ca~ons

Freight Shipping and Handling

Fiscal Year Chart 2016 K

Account Numbe_r 534831

Sub-Account Object Code 17900

Sub-Object Project Org Rel Id

Items of Account Summary 4 Item

Item 1

Item 2 Freight Sh1pp1ng and Handl1r>g

Account Summary 5

Descripbon Item II G2131·1: 13C H19h·Prec1s1on Isotopic C02 CRDS Analyzer. (This pnce reRects an onolnal pric Item • 50504: He fitter for isotopic C02 applicabons Freight Shipping and Handling

f!1cal Year Chart 2016 K

Account Number 534831

Sub-Account Object Code 17900

Oro Ref Id

8,913.20

945.82 69.70 59.SO

Amount

Organization Document Number

2,134.67

226.51 16.40 14.00

Amount

Organization Document Number

14,525.40

1,541.36

110.70 94.50

Amount

Organization Document Number

9,988.22

Amt 2,391.58

Amt 16,271.96

Amt 18,900.27

2/3

12/1512015 KFS :: Payment Request Document

Items of Account Summary 5 Item Description

Item 1

Item 2 Freight

Shipping and H•ndllnQ

View Related Documents

View P•yment History

IU!m # G213l· l: 13C H1gh·Prec1s1on lsotop1cC02 CROS Analy2er. CTh1s price reflects an or1g1nal prlc Item II 50504: He fitter for 1sotop1c C02 appllcanons Fre•ght Sh1pp11i9 and Handling

• "'~ • "'"' \

Ge11er~I Ledger Pondin9 Entr1c1 • 1ICl'if \ t>eferred Accountong lines ) ~""'

NotH and Atachment.s; (4) • n ic

Notes and Attilchments

Attached Flle Posted • Note Text Tlmestamp Author

add: [Choose File No file chosen

06/14/2013 Kfs, Kfs Invoice Image 09:51 AM P1carro Quote 130408MW· 014 • use. G213Hpdf

(0 bytes, hyperllnk/

2 06/14/ 2013 Kf$, Kfs lnvo1~ Image 09:51 AM Invoice Image · •••• (0 bytes, hyperlonk)

3 06/ 14/2013 Kfs, Kfs Sole Source 1usbficab0n noted on line item 2 •• 09:51 AM I

4 06/14/2013 Kls, Kfs Prlctno reflects discount or ·$29,275.00 per quote. 09:51 AM

Ad Hoc Recipients ,. - \

Route Log • ··~ow \

16,874.09

1,790.58 127.10

108.SO

Attachment Type

c-

Invoice Image

, I nvoice Image

Amount

Notification Recipient

. ,

'

' ~

~

Actions

add

I ..oo

"""'

r Stfld

..00

313