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 $5,000 requires a purchase order for payment processing. 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 the appropriate and preferred method for 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; you must close it.

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 the supplier's signature. All PSA's now require a requisition/purchase order for processing, regardless of the 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 to avoid an unreasonable burden on the department processing the request, and they also offer clear, concise reasoning for applying it 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 required product or service is the only one that meets the department/area’s need, and it can only be obtained from one source (manufacturer/distributor/service provider).
• The product or service must match existing installed equipment or systems, or be obtained from a designated service provider, to prevent a voided warranty or to comply with documented restrictions.
• The service is controlled by a 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 on a previous bid(s) resulting from a competitive award that 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 is 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 product quality can vary significantly. Ensuring consistent quality and reliability is crucial to 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 (e.g., Sam's, Costco, etc.) 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, not a University benefit, regardless of how the person responsible claims it. 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 bank provides an estimated conversion rate when the international wire is set up in the bank's portal, but it is for informational purposes only; the final rate is calculated when the international wire is released for processing by the bank.

Supplier Adoption & Management FAQ

What are the requirements for becoming a Rice University Supplier?

Suppliers should reference the Suppliers Basics for Business before contacting Rice University.

What are Rice University's insurance requirements for suppliers?

Click here for the supplier's insurance requirements for Rice University.

What are the Standard Terms & Conditions for Rice University's Suppliers?

Suppliers must adhere to Rice University's Standard Terms & Conditions in order to do business with the University.

How do I register as a supplier?

Departments must identify a need for a supplier, present the information to the Supplier Management team via a Service Request, and the supplier will need to complete the online supplier portal.

When is a W-9 (or W-8) required?

A W-9 is required from all companies and any individuals who are being paid for goods and/or services for Rice University.

If you are a non-US company or individual, you will need to complete a W-8 BEN or W-8 BENE.

Do students need to complete a W-9?

Permanent residents will need to complete a W-9.

Students who are U.S. citizens will complete the supplier portal as a Rice Student and enter their S#. A W-9 is NOT required for these students.

Students who are NOT permanent residents or U.S. citizens must upload a W-8 form.

Disbursement Processing FAQ

I submitted an invoice. When will the supplier be paid?

Invoices are processed within seven business days from receipt in the payment@rice.edu inbox. Once the invoice has been processed by AP and marked as received by the requestor, the invoice will be scheduled for payment. Rice's payment terms are NET 30 with most suppliers, unless the supplier offers an early payment discount.

What are Rice University's payment methods?

Rice University payment methods are listed here.

How do I process a non-Rice employee's reimbursement?

Reimbursement for non-Rice employees should be processed as a Non-Standard Disbursement.

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

Under certain circumstances, a department may request payment by wire transfer. Due to the time and complexity involved, 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 (e.g., bank instructions) regarding wiring instructions. The request (invoice or check request) should be entered in iO, along with wire instructions and appropriate backup. You must select the "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 wire payment check request.

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, Rice's bank will not honor the check.

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 paymentinquiries@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" is to re-issue
- The address where the re-issued check should be sent