Frequently Asked Questions

Procurement & Purchasing FAQs

What is iO?

iO is Rice University’s electronic purchasing tool that enables users to take advantage of a number of contracts and agreements specifically established to benefit Rice staff and faculty in their daily business needs. Access is restricted to Rice users only.

When is a purchase order required?

Any purchase over $3,000 requires a purchase order for payment to be processed. A purchase order MUST be issued ahead of obtaining goods and services on behalf of the University if a purchasing card is not used.

For the vast majority of purchasing needs, the Purchase Order is appropriate and the preferred method of purchasing goods and services. In cases where the Department cannot issue a purchase order, the Purchasing Representative will determine if the p-card is appropriate or will contact the Office of Procurement for assistance in identifying the most cost-effective alternative method available to the Office of Procurement to use to fulfill the demand. At no time is an employee or student authorized to commit the University to the purchase of any goods and/or services using any other method than the authorized methods in these procedures.
Examples of when a purchase order can be used effectively:

• Issue to a supplier to order goods/services for a single purchasing event;
• Issue to a supplier to order goods/services over a period of time (often referred to as a “blanket” Purchase Order)

How can I tell if my requisition has been approved?

See instructions on how to view requisition approvals here.

How do I close a Purchase Order?

See instructions on how to close a completed purchase order here.

How do I cancel a Purchase Order?

See instructions on how to cancel a purchase order in progress here. You CANNOT cancel a purchase order with an associated receipt or invoice, it must be Closed.

When is a Professional Services Agreement (PSA) necessary?

A Professional Services Agreement (PSA) is required for services over $3,000, however, employees are encouraged to use a PSA for all services provided to Rice University. A valid PSA requires the department's and supplier's signature. All PSA's now require a requisition/purchase order to process regardless of dollar amount.

Departments shall execute only one agreement, either Rice's Professional Services Agreement (PSA) or the suppliers'. It is the General Counsel's preference to employ Rice's PSA. If the supplier would like the PSA modified in any way, the Rice department must contact the Office of the General Counsel so that an attorney can review the specific request. Contracts designed by outside consultants, contractors, and companies must be routed to the General Counsel's office for review and approval.

When is a Sole Source Application (SSA) necessary?

Less Than Adequate Competition Available (requiring a Sole-Source Justification)
There will be instances when it is appropriate for a Purchaser to submit a Sole Source Justification (SSJ) to waive the competitive bid requirement. SSJs standardize the process so as not to create an unreasonable burden to the department processing the request as well as offer clear and concise reasoning to apply to the situation. It is important to understand that this is not an alternative purchasing method and that the Office of Procurement will review and approve the document before the commitment is made to a vendor. The only valid reasons acceptable to have a waiver considered are as follows and each requires a written explanation:

• The product or service required is the only one that will meet the department/area’s need and it can only be obtained from one source (manufacturer/distributor/service provider).
• The product or service is required to match existing installed equipment or systems or is obtained from a designated service provider to prevent a voided warranty or otherwise required by documented restrictions.
• The service is controlled by state, local, or municipal authority, utility, or government. This is a contract for professional or artistic services (Note – requires a Professional Services Agreement or PSA).
• The transaction is a re-order based upon a previous bid(s) resulting from a competitive award that has already occurred in the last calendar year and the pricing is set in accordance with that bid.
• An unusual or compelling urgency exists that requires Rice University to waive the competitive bid requirement. (Note; Inadequate planning is not a valid reason to waive competition and may result in rejection of the bid requirement.

The Sole-Source Justification template can be found here.

I have signature authority - why can't I approve documents in iO?

Contact your supervisor to review your roles in iO, and then submit an iO help desk ticket.

Am I able to purchase from Ebay/Alibaba/Other Third Party Selling Sites?

To maintain the quality, reliability, and integrity of our products and operations, we have opted to avoid sourcing from third party selling sites. We appreciate your understanding and can assist with exploring alternative sourcing options that align with our goals. However if this represents a sole source procurement, the Procure To Pay department will assess each purchase individually, considering the specific circumstances.

Quality Control: Ebay/Alibaba/Other Third Party Selling Sites work with a wide range of suppliers, and the quality of products can vary significantly. Ensuring consistent quality and reliability is crucial for the university, and we have found it challenging to maintain this standard when sourcing from third party selling sites.

Counterfeit Products: Ebay/Alibaba/Other Third Party Selling Sites have faced issues with counterfeit products in the past. To protect our campus, we have chosen not to engage with suppliers from this platform to reduce the risk of receiving counterfeit goods.

Payment Security: Ebay/Alibaba/Other Third Party Selling Sites transactions often involve down payments, which can be risky due to potential scams or disputes. We prioritize secure payment methods and transparent transactions to protect our financial interests.

Intellectual Property Concerns: Intellectual property rights are not always rigorously enforced on Ebay/Alibaba/Other Third Party Selling Sites, and this can pose legal risks for us if we inadvertently purchase products that infringe on others' intellectual property rights.

Long Lead Times: Shipping from overseas suppliers on Ebay/Alibaba/Other Third Party Selling Sites can result in longer lead times, which may not align with your production and delivery schedules.

Does Rice University have agreements with Costco or Sam's Club?

There is no alliance between any shopping club (Sam's, Costco, otherwise) and Rice University that was negotiated and there is no contract or agreement with respect to this. No department or individual is permitted to negotiate on behalf of the University outside of Procurement to establish any such agreement. There is no authorization to charge a Sam's Club membership to the University as it is a personal benefit and not a University benefit, regardless of how it is claimed by the person responsible. It is potentially a taxable benefit.

Payment Processing FAQ

I received an email stating a Receipt is Required, what do I do?

See instructions on how to complete a receipt here.

How can I tell if an invoice has been paid?

The quickest and easiest way is to view the Requisition Life Cycle.

For further assistance, email payment@rice.edu and please have your purchase order number ready.

Where do I submit my invoice?

All invoices must be sent electronically to payment@rice.edu. Please note the Supplier Invoice Requirements.

Where do I submit my credit memo?

All credit memos must be sent electronically to payment@rice.edu. Please note the Supplier Credit Memo Requirements.

How do I process "Non-Rice Individual/Visitor" reimbursements?

Reimbursements for non-rice individuals or visitors should be processed as a Non-Standard Disbursement.

How is the conversion rate determined when paying in foreign currency?

The rate is calculated at the time the Treasurer's Office purchases the currency. This is also a two day process for sending foreign currency by wire transfer. The Treasury Office purchases the foreign currency first and then the wire is sent the next day. The Treasurer's Office will confirm the USD amount after the wire has been sent.

Disbursement Processing FAQ

I submitted an invoice, when will the supplier be paid?

AP Processors generate and process invoices, which disbursements matches the payment data against the original invoice or check request before releasing the file to Chase Bank.

Check files are sent to Chase Bank every Monday, with exceptions occurring on holidays and/or winter break. In these instances, the bank file will be processed on the next working business day. Checks are printed by Chase and mailed the following business day.

Single Use Account (SUA) Suppliers, Accounts Payable direct deposits (for Rice employees and Students), and wire transfers are processed daily.

What are Rice University's payment methods?

Rice University payment methods are listed here.

How do I sign up for reimbursement direct deposits?

Email suppliers@rice.edu to set up direct depsoit.

How do I ensure my supplier is paid by wire transfer?

Under certain circumstances, it is necessary for a department to request payment be made by wire transfer. Due to the time involved and the complexity of the transaction, wire transfers are discouraged unless no other payment method will suffice.

The University is charged a transaction fee by the bank for each wire transfer. This fee will be passed on to the requesting department.

Personnel within the department requesting payment should contact the vendor for specific details (i.e., bank instructions) regarding wiring instructions. The request (invoice or check request) should be entered in iO, along with wire instructions and appropriate back up. You must select "Wire Transfer Required" option otherwise a physical check will be produced. The transaction fee will be expensed to the fund/org codes designated on the check request for the wire payment.

Global Wire Payment Guide

Required Bank Details for Wires by Country

I need to stop payment to a supplier, what do I need to do?

Occasionally, a check that has been issued and mailed needs to be cancelled. A "cancel payment" is an action taken to void the check with Rice's bank. When this occurs, Rice is charged a transaction fee per cancelled check. Once this has been requested with the bank, the check will not be honored by Rice's bank.

NOTE: Our procedure is to wait 40 days from the check date to cancel a check. This allows USPS time to forward and/or return mail.

To request a "cancel payment" action on a check, email Payments at payment@rice.edu, with the following information:

- the check number
- the payee's name
- the amount of the check
- the reason for requesting a "cancel payment" if re-issuing
- the address where the re-issued check should be sent

Any time a "cancel payment" is requested, the check must be voided within Rice's financial system (Banner). We will automatically void any check for which a "cancel payment" has been issued.