University System of New Hampshire

06. Purchasing

 

Purchasing

 
Issue Date   Revised Date  
03/01/1996 001 05/29/2018 Purchasing Policy
07/01/2005 002 05/11/2018 Contracting & Purchasing Delegations
07/01/2005 003 05/29/2018 Signature Authority Guidelines
07/01/2005 004 05/11/2018 Purchasing Process Overview
01/15/2009 005 05/11/2018 Competitive Bid Limit
07/01/2005 006 05/29/2018 Competitive Bid Process Overview
07/01/2005 007 05/01/2014 Competitive Bid Process (RFP)
07/01/2005 008 07/01/2011 What is a Purchase order?
07/01/2005 009 11/01/2012 What is a Contract?
(links to 12-005)
07/01/2005 010 07/01/2005 USNH Purchasing Contract Types
(links to 12-006)
07/01/2005 011 07/01/2005 USNH Contracts Database
  012 01/20/2015 Active Contracts List
  013 01/20/2015 Purchasing Responsibilities
07/01/2005 014 07/01/2011 NAEB Code of Ethics
05/04/1990 015 07/01/2011 USNH Complaint Policy
01/21/2005 020 04/01/2012 Glossary/Definitions
09/01/2003 021 11/01/2012 USNH Tax Exemption
 

Vendors, Independent Contractors

 

  Vendors  
  040 11/21/2003 Vendor Codes
  041 11/21/2003 Establishing a Vendor Code
  044   USNH Substitute W-9
  044F 07/01/2010 USNH Substitute W-9-Form
07/01/2011 044DEF 05/01/2014 USNH Substitute W-9-Definitions
07/01/2010 045 05/01/2014 Instructions to complete the USNH Substitute W-9
  046 07/01/2011 USNH W-8BEN
  047   Instructions to complete the USNH w-8BEN
  048   Modifying Vendor information
  049   Vendor code procedures
     
  Independent Contractors  
  050 03/19/2015 Hiring Independent Contractors
  051 03/19/2015 Test for an Independent Contractor or Employee
  052 03/19/2015 Independent Contractor Agreement
  053 03/19/2015 Amendment to Independent Contractor Agreement
  055   Instructions to complete the Independent Contractor Agreement and Amendment
  056 02/01/2007 Independent Contractor Agreement Procedure
  057 12/11/2003 Independent Contractor Invoice
 

Surplus Property

 

  060 08/04/2015 Surplus Property Procedures
  061 07/01/2011 Surplus Property Policy
     
 

Surplus Property Forms & Instructions

  062 03/13/2013 Request to Donate
  063   Request to Donate Instructions
  064   Request to Donate Procedure
  065 02/04/2009 Request to Sell/Advertise
  066   Request to Sell/Advertise Instructions
  067   Request to Sell/Advertise Procedure
  068 03/13/2013 Request to Scrap
  069   Request to Scrap Instructions
  070   Request to Scrap Procedure

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

06 - 007 Competitive Bid Process (RFP)

A. Types of Solicitations

When seeking information from vendors, it is important for Purchasing to realize the specific type of goods and/or services required and to use the appropriate type of solicitation document. There are important differences among various documents used to solicit responses from vendors: the request for information (RFI), the request for bid (RFB), and the request for proposal (RFP).

An RFI is used when you don't know exactly what you want or you don't know what is available in the marketplace. The information received as a result of the RFI may assist in determining whether a formal request for bid or proposal is necessary.

An RFB is used when you know precisely what you need and have precise requirements and specifications.

The RFP is a hybrid of these documents. An RFP is used when you have a general idea with some specifications and/or it's a large, complex project with potential for multiple solutions.

B. Overview of the RFP Process

Effective communication is the bottom line with any RFP. The process begins with your scope of work (SOW) statement (description of services) or specifications (description of goods), proposal evaluation criteria, and a recommended sources list. These are submitted to the Purchasing Office, which takes this SOW or specifications and develops a complete Request for Proposal including standard (boilerplate) contract clauses, special clauses, instructions to prospective vendors, and any requisite technical exhibits or attachments. The RFP states a specific date and time deadline for proposal receipt and often has mandatory pre-proposal meetings for vendors to attend. This meeting offers the opportunity to ask questions and gives the University a chance to determine whether any changes need to be issued (addenda) to the RFP. This is also an excellent time to conduct any requisite site visits to familiarize vendors with the project site(s).

After proposals are received, they are then evaluated against evaluation criteria, which were stipulated in the RFP. Purchasing and the department then agree on the awarded firm. Once approved, a purchase order and/or contract are processed.

After award, the department monitors the contractor's performance, approves invoices, and notifies Purchasing if any problems are encountered with vendor's performance.

C. When is an RFP Necessary

A formal RFP is not required for justified single source purchases. An RFP is rarely used for equipment or supplies at any dollar value, and is usually not required for service purchase orders under the bid limit. Additionally, certain personal services and consultant services are subject to other purchasing methodologies. Examples of situations, which may require an RFP, are purchases of specialized research, custom computer equipment, custom software, custodial services, marketing services, food services, and security services. In general, an RFP is needed when the product/services required exceed the current bid limit and the expected contract performance, terms, and conditions cannot be completely described by a detailed specification attached to a purchase order.

D. Developing the Scope of Work

The scope of work is the heart of the RFP. A well-written scope of work can do more for the success of a contract than any other part of the contracting process. A good scope of work is clear, complete, and logical enough to be understood by the vendor and department. Because it describes the details of performance, it is the yardstick against which the vendor's performance is measured. Enhancing a vendor's ability to read and understand the needs articulated in the RFP is critical to success. The RFP must be concise and clear. The structure of the document is used to keep your thoughts on track and to organize a vendor's response. Emphasize points that you feel are especially important. Organize the RFP document in numbered sections, and require the vendors to use this same numbering/sectioning format in their responses. This ensures clarity and consistency in the RFP and in the vendors' responses, and will make the evaluation and selection process easier. The department should start the process by contacting Purchasing in advance of the need in order to give ample time for the RFP process, from RFP development to contract/PO.

  • Suggested Content - Introduction and general information, task description, constraints on the contractor, contractor personnel requirements, University responsibilities, special conditions, evaluation criteria.

E. Evaluation of Proposals

A prerequisite for award is that the vendor must be responsible and must submit a responsive offer. To be responsible means the vendor has the requisite business integrity, as well as financial and organizational capacities, to ensure good-faith performance. To be responsive, an offer must conform in all material respects to the RFP. Beyond these two basic criteria, the only method we have of selecting the offer most advantageous to the University is through the proposal evaluation criteria, which is published in the RFP.

Because of the nature of most goods and/or services purchased and the sealed competitive bid procedure, we must make objective comparative analyses of different vendor's proposals in justifying our recommendation for award. The recommendation for award must be defensible. This makes the drafting of reasonable and definitive evaluation criteria very important to the RFP and source selection process.

Some evaluation criteria to consider for inclusion in the RFP are as follows: (1) performance record of the contractor, (2) safety record, (3) relevant experience in providing comparable services on projects of similar size and scope, (4) overall quality of proposal, (5) pricing.

The RFP must contain a cost proposal format that allows the vendors to explicitly identify their charges for the deliverables identified in the project. Deliverables must be well defined so that all vendors can respond to the same deliverables thus allowing the University to make comparative analyses of the vendor's costs.

F. Pre-Proposal Conference

While a pre-proposal conference is not always required, it is highly recommended. If one is conducted, vendors are required to attend, or attendance may be by "invitation and urge to attend", so that we can be sure that all vendors receive the same information and we receive constructive feedback about the RFP. Although a representative from the Purchasing Office leads the conference and answers any contractual questions, the department must be represented to answer any questions about the technical aspects and performance anticipated in the scope of work detailed in the RFP. During the conference, university employees must not discuss the merits of a vendor's question, and it must be clear that nothing discussed that materially affects the RFP can be relied upon unless it is documented in a written addendum to the RFP. The University will not be bound by oral discussion surrounding a bid document. If a site visit is needed to familiarize vendors with the work site, it is normally conducted following the pre-proposal conference.

G. Proposal Opening

Proposal openings are open to the public and are scheduled two to four weeks after the pre-proposal conference. This may vary depending on the complexity of project that is being bid. Late proposals are marked with the time and date received; however, they are not opened or read and will not be considered.

H. Proposal Evaluations

After the Purchasing Office has reviewed each vendor's proposal to determine that they are complete, the proposals are then forwarded to the department and/or committee members for evaluation. During the period of evaluation and prior to award, possession of proposals and accompanying information is limited to personnel responsible for participating in the evaluation. Any communications with vendors must be approved in advance through the purchasing agent handling the bid process.

Recommendation for award must be in written form and must address how each vendor has met or failed to meet the evaluation criteria stated in the RFP. All areas of non-conformity with any terms, conditions, or listed specifications must be clearly stated in the evaluation.

To assist those individuals responsible for evaluating proposals, the Purchasing Office creates an evaluation matrix, based upon evaluation factors listed in the RFP. This matrix is a tool to assist those evaluating proposals.

I. Negotiation

When all proposals are determined to be non-responsive, all must be rejected and a new RFP issued. Negotiation is normally only permitted where effective competition is not available. However, when written evaluations support it, the Purchasing Office may authorize negotiation with each vendor whose proposal can reasonably be expected to be amended to meet the needs of the University.

J. Contract Coordination

Monitoring Performance

After award, the project coordinator, who is usually named in the contract document, monitors the vendor's performance, approves invoices, and notifies the Purchasing Office if any problems are encountered. Depending on the type of service, the manner in which performance is monitored may involve any number of procedures including regular and unscheduled inspections, complaints brought to management's attention, and reports or surveys of consumers of the services.

Changing the Contract

Since the purchase order or contract incorporates the contractor's response to the RFP, these documents reflect the agreement between the parties. Amending or canceling the contract can only be accomplished under the terms and conditions of the agreement and such actions must be done through the Purchasing Office.

K. Dealing with Poor Performance

The key to rectifying poor performance is keeping good documentation. Each contract contains provisions for dealing with poor performance. Such provisions are usually cited under the default clause in a contract. Under the standard default clause, the contractor has a specified time period to correct, or provide a corrective action plan for any non-conformances identified by the project coordinator. While the project coordinator may initially deal with minor issues verbally, a written record of these occasions becomes increasingly important when the contractor's performance deteriorates to the point where it becomes necessary to cancel the entire contract or parts of it. If the contractor is clearly at fault and we have documentation to prove it, we can cancel the contract for default and hold the contractor liable for the increased costs of obtaining substitute services from another vendor. Do not hesitate to contact the Purchasing Office for advice when you have repeated problems with the contractor.

L. Terminating Without Penalty

Under a standard termination clause, the University has the option of terminating the contract without penalty for any reason with an advance written notice to the contractor. Care must be taken to read the contract clause to ensure that the stipulated number of days for written notice has been given.

06 - 008 What is a Purchase Order?

A Purchase Order Is...

  • A purchase order is the official and binding document issued to the vendor authorizing the expenditure of USNH funds for goods and/or services.
  • A purchase order creates an encumbrance that will help manage budget and facilitate vendor payment.
  • By using the purchase order, everyone involved in the purchase process can track the order by referring to the same purchase order number as a standard reference.

Standard USNH Terms and Conditions are part of the USNH PO generated and sent to vendors for each order made.


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

06 - 014 NAEB Code of Ethics

Code of Ethics

Because personnel who are involved in the procurement function are in a position to provide or withhold substantial rewards for suppliers who serve USNH, and because they constantly operate under pressure from conflicting sources, they must have a highly developed sense of professional ethics to resist these pressures and to serve USNH in an honorable way.

To strengthen ethical awareness, and to provide guidelines for its members, the National Association of Education Buyers has an established code of ethics which is printed below. All USNH purchasing professionals subscribe to the National Association of Educational Buyers Code of Ethics.

NATIONAL ASSOCIATION OF EDUCATION BUYERS (NAEB) CODE OF ETHICS

  1. Give first consideration to the objectives and policies of my institution.
  2. Strive to obtain the maximum value for each dollar of expenditure.
  3. Decline personal gifts or gratuities.
  4. Grant all competitive suppliers equal consideration insofar as state of federal statue and institutional policy permit.
  5. Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
  6. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product.
  7. Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.
  8. Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier, and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit.
  9. Accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions.
  10. Cooperate with trade, industrial and professional associations and with governmental and private agencies for the purpose of promoting and developing sound business methods.
  11. Foster fair, ethical and legal trade practices.
  12. Counsel and cooperate with NAEB members and promote a spirit of unity and a keen interest in professional growth among them.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

06 - 015 USNH Complaint Policy

USNH PURCHASING DEPARTMENT COMPLAINT POLICY

  1. Any vendor, unsuccessful bidder, or other party (not employed by USNH) who is aggrieved by a decision made by the USNH Purchasing Department may file a formal complaint in accordance with the procedures established herein.
  2. Any complaint shall be in writing, addressed to the Director of Purchasing, and must be received by the Director within 10 days of the incident giving rise to the complaint.
  3. The complaint shall describe in detail the relevant facts, all attempts made by the complainant to resolve the problem informally, the procedure or specification allegedly violated, the personnel involved, dates, times, location, and expected resolution.
  4. The Director may schedule, at his or her sole discretion, a meeting with the complainant to discuss the issues raised in the complaint. The Director may also, whether or not such a meeting has been scheduled, request further information or documentation from the complainant or any other source.
  5. The Director shall notify the complainant in writing of his or her decision within 45 days after receiving the complaint unless a meeting about the complaint was scheduled. In those cases where a meeting about the complaint was scheduled, the Director shall issue his or her decision within 45 days following the meeting.
  6. Any of the foregoing provisions, including those relating to time deadlines, may be waived by the Director when, in his or her sole discretion, good cause exists to do so.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

06 - 020 Glossary/Definitions

Purchasing Terms

Term Definition
Acknowledgement: Supplier's acceptance of an order.
ARO: After receipt of order.
B.P.O.: Blanket Purchase Order. A purchase order permitting the buyer to place individual orders or releases to a particular supplier for goods/services for a specified period of time using the same purchase order number.
Back-up: Documents necessary to support the request for purchase. Information often required includes pricing, justification for selection, technical specification, F.O.B. point and terms.
Bid: A request for pricing and delivery for goods or services.
Bidder: Supplier submitting a bid to sell.
Bill of Lading: Shipper's form listing number of pieces shipped, weight and freight classification. Often used as a receiving document.
Bond: A written and sealed financial guarantee of performance.
C.O.D.: Cash on delivery. Indicates payment must be made for goods and transportation charges at the time of delivery.
Consultant: Services rendered by recognized consulting firms or individuals with specific expertise not available in the University System. Consulting Services are distinguished from other professional services in that consultants advise action to be taken by the University System rather than performing the function themselves.
Common Carrier: A firm whose business is the transportation of goods from seller to a point designated by the buyer.
Confirming Order: Written purchase order formalizing a previous verbal agreement.
Contract: Agreement by a supplier to sell goods and/or services under established conditions, terms, prices and/or discounts for a defined period of time.
F.O.B.: Determines 1) the place where delivery is required; 2) where the title will pass; 3) whether the seller or the buyer is to pay the transportation charges.
F.O.B. Dest PP & Add:
Title of ownership passes when goods are received at our dock (UNH). Shipping/freight charges are added upon invoicing.
F.O.B. Dest PP & Allow:
Title of ownership passes when goods are received at our dock (UNH). Shipping/freight charges are the responsibility of the seller.
F.O.B. SP PP & Add:
Title of ownership passes at the seller's dock. Shipping charges are prepaid by seller and added to invoice. Insurance liability is that of the buyer.
F.O.B. SP PP & Allow:
Title of ownership passes at seller's dock. Shipping charges are the responsibility of the seller. Insurance liability is that of the buyer.
Freight Claim: Document submitted to a common carrier or supplier for damaged goods or a short shipment.
Freight Bill: Invoice for the transportation charges of goods shipped or received.
Guarantee: Manufacturer's or seller's pledge relative to the performance or serviceability of a good or service.
Inspection Report: Report written by a freight carrier's inspector evaluating the extent and circumstances of damage.
Point of Delivery: The geographic location that the buyer has specified to receive purchased merchandise.
Purchase Order (PO): The official and binding document issued to the vendor authorizing the expenditure of USNH funds for goods and/or services. The purchase order creates an encumbrance that will help manage budget and facilitate vendor payment. By using the purchase order, everyone involved in the purchase process can track the order by referring to the same purchase order number as a standard reference.
Quotation: A supplier's response to a request to bid stating the price, terms and conditions for which specified goods or services will be sold.
Service Provider: Professional services performed for the University System by artisans, musicians, craftspersons, speakers, sports officials and professionals other than employees.
Shipper: A person who consigns goods for transportation.
Shipping Point: The geographic location where the merchandise is consigned to the carrier.
Short Shipment: Items consigned to a carrier but not delivered.
Site Inspection: A time and place where a supplier can view the conditions under which a service is to be performed.
Specification: A detailed and exact statement of particulars, describing the goods or services required.
Supplier: An individual or business supplying goods and/or services.
Surplus Property: Item(s) declared of no further use to a department. Requires procedure of advertising the items for sale within the University System, to state agencies and the public.
Tailgate Delivery: Seller is obligated to move the freight only as far as the tailgate of their truck. It is the Buyer's responsibility to unload the shipment from the truck when it arrives.
Terms: A statement of a seller's payment requirements. Included would be cash discounts for prompt payment, if any, and the maximum time allowed for payment.
Title: Indicates ownership.
Trace: Request for information from the supplier or the carrier about an order which has not been received.
USNH: UNH-Durham, UNH-Manchester, Keene State College, Plymouth State University, and Granite State College.
Way Bill: A shipping document identifying shipper, date of shipment, carrier, number of parcels, weight, receiver and date received.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

06 - 021 USNH Tax Exemption

 

All forms are available at the Purchasing Office, upon request.

USNH FED TAX ID#: 02-6000937

USNH FED EXCISE TAX EXEMPTION#: 02-90-0048F

STATE Status Exemption Number Issue Date Expiration Notes
Alabama (AL) Not Exempt N/A 19-Apr-91 N/A  
Alaska (AK) NO STATE TAX Phone # (907)465-2320 w/ specific questions Per Phone N/A No state sales tax. Some cities have local sales tax.
Arkansas (AR) Not Exempt N/A 27-Apr-94 N/A  
Arizona (AZ) Not Exempt PHONE # (602)542-4672 8-Apr-94 N/A Exempt if tangible property is shipped from them to the University. SEE FILE FOR DETAILS
California (CA) Not Exempt N/A 7-Apr-94 N/A All purchases subject to tax.
Colorado (CO) Not Exempt N/A N/A    
Connecticut (CT) EXEMPT PERMIT # E-8565-Complete Meals/Lodging forms 2 wks before stay. 4-Mar-83 No Expiration Must be paid directly by UNH check (no credit cards accepted).
Delaware (DE) NO STATE TAX   5-Apr-94 N/A Does not impose sales or use taxes on sales of goods & services.
Florida (FL) EXEMPT 78-27-056227-57C AS: EDUCATIONAL ORGANIZATION 6-Nov-95 6-Nov-00 Exempt from payment or use tax on puchase or lease of tangible personal property.
Georgia (GA) Not Exempt   23-May-94 N/A Does not extend the exemption to other State Universities
Hawaii (HI) NO STATE TAX   8-Apr-94 N/A May impose local taxes.
Idaho (ID) EXEMPT Must complete forms ST-101 with each transaction. 10-Aug-94 No Expiration Exempt for direct purchases only.
Illinois (IL) EXEMPT E9958-3445-01 8-Apr-94 1-May-99 Sales of any kind are exempt. Renew at least 3 months prior to expiration date.
Indiana (IN) EXEMPT Must complete form with each transaction. 12-Mar-98 No Expiration Are exempt as long as no income being earned in Indiana
Iowa (IA) Not Exempt N/A 1-Sep-90 N/A Per follow up phone call of 4/98, we are still not among states offered reciprocity.
Kansas (KS) EXEMPT Must complete exempt form to accompany each purchase. 1-Jun-94 No Expiration Direct purchases exempt, or those by contractors for building/maintenance.
Kentucky (KY) Not Exempt Letter on File 24-Mar-98 N/A Not exempt because we have no tax to be exempt from in NH-No Reciprocity
Louisiana (LA) Not Exempt N/A 18-Apr-94 N/A All purchases of tangible personal property or taxable services made within this state are taxable.
Maine (ME) EXEMPT E-10154 - Must complete form with each transaction. 25-May-71 No Expiration Purchases must be billed directly to and paid directly by the University.
Maryland (MD) Not Exempt     N/A Exempt certificates provided only to Maryland entities.
Massachusetts (MA) EXEMPT 026-000-937 2-Jan-95 2-Jan-05 Exempt from purchases of tangible personal property and services.
Michigan (MI) EXEMPT Continuing exemption letter pursuant to Section 144.30.2(20), RSMo. 11-Jul-02 No Expiration Educational institutions exempt from sales and use tax.
Minnesota (MN) EXEMPT Must complete form with each transaction. 7-Apr-94   Not exempt from rooms, meals or car rental taxes.
Mississippi(MS) EXEMPT Letter on File 2-Feb-98 No Expiration Purchases must be billed directly to and paid directly by the university.
Missouri (MO) EXEMPT Letter on File 18-Mar-98 18-Mar-03 Exempt from sales/use tax if paid directly by UNH (except construction materials).
Montana (MT) NO STATE TAX No State Taxes 29-Mar-94 N/A Montana does not have a general sales and use tax.
Nebraska (NE) Not Exempt Regulations Booklet on File 14-May-94 N/A Not included on list of exempt buyers.
Nevada (NV) Not Exempt Letter on File 24-Apr-98 N/A Not exempt as the University does not have a facility located in Nevada.
New Hampshire (NH) NO STATE TAX 02-6000-937 14-Oct-76 No Expiration Fed. Excise Tax Exemption #02-90- 0048F
New Jersey (NJ) EXEMPT EO-026-000-937 22-Jun-79 No Expiration Exempt organization. Exempt from all sales & use taxes.
New Mexico(NM) Not Exempt   Per Phone N/A Require SS# of Officers-USNH will not provide.
New York (NY) EXEMPT EX 144308 1-Mar-74 No Expiration Exempt from sales & use tax as well as unenhanced deisel fuel and petroleum.
North Carolina (NC) Not Exempt   27-Mar-90 N/A Sales/Use Tax Regulation 7 provides for tax exemption.
North Dakota (ND) EXEMPT E-5538 4-Apr-94 No Expiration Exempt for purchase, lease or rental of tangible personal property if used for UNH.
Ohio (OH) EXEMPT Form must be completed to accompany each purchase 18-Oct-82 No Expiration Different form for each type of purchase
Oklahoma (OK) Not Exempt Letter on File 29-Mar-94 N/A Only universities within Oklahoma are exempt.
Oregon (OR) NO STATE TAX     N/A  
Pennsylvania (PA) EXEMPT Letter on File/No # Required 25-Mar-83 Instrumen-tality Doesn't included hotel/motel occupancy taxes. "Exempt Instrumentality"
Rhode Island (RI) EXEMPT #3082 14-Nov-85 No Expiration Exempt from sales and use tax.
South Carolina (SC) EXEMPT Form ST-8 (Rev.2/80) on File   N/A List of items exempt from sales tax on file.
South Dakota (SD) EXEMPT   Per Phone N/A Reciprocity
Tennessee (TN) EXEMPT Acct No. 100282277. Exempt certificate no longer required 23-Oct-96 No Expiration Amendment T.C.A. Section 67-6-322(e) on File. Sales & Use tax exempt.
Texas (TX) EXEMPT Must complete form with each transaction. 22-Apr-91 No Expiration Exempt from limited sales, excise, use and hotel occupancy tax.
Utah (UT) EXEMPT Must complete form with each transaction (see instructions) 9-Mar-98 No Expiration Exempt from sales/use. May be taxed on restaurant and other food.
U.S. Virgin Islands NO SALES TAX     N/A Not exempt from hotel room tax.
Vermont (VT) EXEMPT Must complete VT Form S-3 for each transaction 3-Jul-78 No Expiration Exempt from sales and use tax.
Virginia (VA) EXEMPT Letter on File. Section 630-10-96 20-Apr-91 N/A Exempt for tangible personal property, meals, lodging, if paid directly by UNH.
Washington (WA) Not Exempt N/A 2-Jun-94 N/A UNH is not entitled to exemption from sales tax on purchases made in WA.
Washington, D.C. Not Exempt   1-Jul-83 N/A Exemptions will be granted only to those institutions that are located in the District.
West Virginia (WV) EXEMPT Form completed each transaction. No. 02-6000-0937 1-Jul-92 No Expiration Exempt from purchase of tangible personal property and services.
Wisconsin (WI) EXEMPT Form to be completed with each transaction. 21-Jun-74 N/A Technical Info Memo S-44.2 State of NH institution not liable for sales or use tax.
Wyoming (WY) Not Exempt Letter on File 24-Feb-98 N/A Do not meet requirements for non-taxable status.

 


The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.

06 - 044DEF Definitions for W-9 and Business Classification Checklist

W - 9 related definitions


Ownership Status Definitions and Information
Individual* A person (not an actual business) who has a non-employee relationship with USNH by providing goods or services and should receive payment as an individual and not a business.
Sole Proprietor* An individual operating a business in which the business does not exist separately from the owner. The individual accepts the risks of the business to the extent of all his or her assets, whether used in the business or used personally.
Corporation A person or group of people who incorporate by receiving a charter from their Secretary of State. Includes associations, joint stock companies, insurance companies, and trusts and partnerships that operate as associations or corporations.
Partnership A relationship between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labor or skill, and expects to share in the profits and losses of the business. Partners can be individuals, corporations, trusts, estates, and other partnerships.
Limited Liability Company (LLC)* A business structure allowed by state statute, but not recognized by the federal government for federal tax purposes. This structure can take several forms including disregarded entity, corporation, and partnership depending on the relationship to the owner(s). Owners are called members and may include individuals, corporations, other LLCs, and foreign entities. There is no maximum allowable number of members. Some states permit "single member" LLCs, those that have only one member.
To be treated as a corporation, an LLC has to file Form 8832, Entity Classification Election with the IRS, and elect to be taxed as a corporation. Additionally, if the LLC is taxed as a disregarded entity/sole proprietorship we require the owner’s SSN.
Other
AA/EO Affirmative Action/Equal Opportunity Employer

*Social Security Numbers are required for all payments to individuals, for all payments to Limited Liability Companies designated as Disregarded Entities, and for all payments for services to sole proprietorships. If W-9 form indicates sole proprietorship provides ‘goods only’ without owner’s SSN, but it is determined payment to vendor is reportable on Form 1099-Misc, SSN is required.


Business Classification Definitions and Information

The IRS requires 1099 filing for various types of vendors.  In addition to the standard reporting required for services in excess of $600, the IRS also requires all payments for services to Lawyers and Medical or Health providers.  UNH also participates in many federally funded grant programs which require USNH to do a percentage of business with certain groups such as; Disadvantaged Veteran Enterprises, Minority Business Enterprises, Small Business, etc.

To make certain USNH remains in compliance with all required regulations, the information on the Business Classification form is required.  Links to appropriate governmental sites are provided where known.


8(A) Designation A program created as part of the Small Business Administration (SBA) designed to help small and disadvantaged business to compete in the marketplace.  It is also designed to assist the companies in gaining access to federal and private procurement markets.  Companies must apply for this certification.
For more information on the program and its requirements, visit 13 CFR 124 (8(a) Business Development/Small Disadvantaged Business Status Determinations) as well as the 8(a) Business Development page to learn about benefits, eligibility standards, and goals of the 8(a) Business Development Program.
Disabled Owned A business that is a least 51% owned by one or more disabled persons who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business
Disabled Veteran Business Enterprise (DVBE) A disabled veteran recognized by the state of California means a veteran of the U.S. military, naval, or air service, with a service-connected disability of at least 10% or more and who is a California resident. Where at least 51% is owned by disabled veterans and conducts daily business management and control. The home office cannot be a branch or subsidiary of a foreign corporation, foreign firm or other foreign-based business
Disadvantaged Business Enterprise (DBE) A business that is usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility, but may include women, minority, disabled and other disadvantaged by as a result of economic disadvantages with respect to education, employment, residence or business location or social disadvantage and lack of business training
Disadvantaged Veteran Enterprise (DVE) A business that is a small business concern owned and controlled by veterans, where not less than 51% is owned controlled and managed by veterans. As defined in (38 U.S.C. ‘101(2)) See veteran definition
Historically Black Colleges / Universities & Minority Institutions (HBCU/MI) Historically Black and minority colleges and universities that are recognized by the government as legitimate set-aside business opportunities.
HUBZone Certified The Historically Underutilized Business Zones (HUBZone) Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.
Labor Surplus Is generally defined for a Civil Jurisdiction rather than the entire MSA where the average unemployment number is 20% higher than the average U.S. unemployment rate in the last two calendar years.
Minority Business Enterprise (MBE) A Minority Business Enterprise usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility.
Minority-Owned A business that is at least 51% owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are African Americans (Black), Hispanic Americans, Native Americans, Asian-Pacific Americans and Indian Sub-Continent Americans
Service Disabled Veteran (SDV) A business that a veteran with a disability that is service connected. The term “service connected” means, with respect to disability or death, that such disability was incurred or aggravated, in the line of duty in the active military, naval or air service. (38 U.S.C. ‘101(16)).
Small Business A business concern eligible for assistance from SBA as a small business is one that is organized for profit, with a place of business located in the United States. It must operate primarily within the United States or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Together with its affiliates, it must meet the numerical size standards as defined in the Small Business Size Regulations, 13 CFR 121
Small Disadvantaged Business (SDB) New certification eligibility criteria established by the SBA effective 7/1/99. All firms must be certified by one of the SDB Certification Agencies designated by the SBA. To qualify must be a small business, not exceed standards for Primary SIC, meet Contracting Officers’ assigned SIC code, be a U.S. Citizen and be 51% owned and controlled by one or more Socially & Economically Disadvantaged Individuals. The SBA classification is based on a Preponderance of the Evidence Clause” this SDB Certification is good for 3 years.
Woman Business Enterprise (WBE) A Women Business Enterprise usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility.
Women-Owned A business that is at least 51% owned by, and whose management and daily business operations are controlled by one or more women who are U.S. citizens.
Veteran Owned A business that is a least 51% owned by one or more veterans, who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business. The term “veteran” (38 U.S.C.’101(2)) means a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable.
Veteran Business Enterprise (VBE) Under SBA Guidelines Small Business Act (PL 85-536) as amended states: Small Business Concerns owned and controlled by veterans not less than 51% owned by one or more veterans and in the case of a publicly owned business not less than 51% of the stock is owned by one or more veterans.
Vietnam Veteran A business that is a least 51% owned by one or more Vietnam Veterans who served between 1/1/59 and 5/7/75 and have control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. 

06 - 045 Instructions to Complete the USNH Substitute W-9

University System of New Hampshire - Substitute W-9

Purpose of USNH Substitute W-9 Form

The University System of New Hampshire (USNH) consists of UNH-Durham, UNH-Manchester, Keene State College, Plymouth State University, and Granite State College. USNH requires that a record be kept of any individual or business that receives a check from the University System, whether for services rendered, goods provided or any other circumstance for which monies would be paid. USNH uses the attached Substitute W-9 Form to create a vendor record for an individual or business. This form also meets the requirements of the IRS Form W-9, Request for Taxpayer Identification Number. An employer identification number, or EIN, is also known as a taxpayer identification number, or TIN. Failure to return this form in a timely manner will delay payment. If you have any questions, please contact the appropriate campus Purchasing Office listed on the form.

Privacy Act Notice

USNH is requesting your Taxpayer Identification Number (TIN) to satisfy the requirements of Federal and State law. Section 6109 of the Internal Revenue Code requires that you provide your correct TIN to be used on information returns (Forms 1099) filed with the Internal Revenue Service. Failure to provide your TIN could result in backup withholding and penalties. State law (RSA 282-A:117- a) requires USNH to file information reports with the State of NH using a sole proprietor’s Social Security number rather than their TIN, if services will be provided. Failure to provide this information will result in penalties. Any penalties assessed against USNH for failure to provide your correct TIN or SSN to federal and state authorities will be passed along to you. USNH will not disclose your TIN or SSN to anyone outside the institution except as mandated by law.

Instructions for Completing the USNH Substitute W-9 Form Individual or Sole Proprietor

Provide SSN (and EIN if applicable):

  • Provide your Social Security Number (SSN), full legal name, and physical home address in addition to a mailing address if different (If you list a PO Box for a mailing address, you must also provide a physical home address)
    • If you are a sole proprietor providing services, you must provide the Owner’s SSN, full legal name, business address and any Doing business as names the business may operate under. (If you list a PO Box for a mailing address, you must also provide a physical business address). Also provide your Employer ID number (EIN), if applicable.
    • Otherwise, if you are a sole proprietor providing only goods, specify an EIN and/or Owner’s name and SSN
  • If a check should be issued to you personally and not to the business name, indicate "Individual" in the Ownership Status. If a check should be issued to the business name, indicate "Sole Proprietor" in the Ownership Status.
  • Complete the "Business Classification" attachment if applicable.
  • Indicate if you are a foreign entity/non-resident alien.
  • Answer each question if applicable.
  • Sign and date the form. Return the completed form as indicated on the Substitute W-9 form.

Business - Provide EIN:

  • Provide the business’ Employer ID Number (EIN), the full legal name of the business (the name under which the business files with the IRS), any "Doing business as" or other names the business may operate under, and the appropriate addresses. (If you list a PO Box for a mailing address, also include physical address).
  • Complete the "Ownership Status" section. Complete the "Business Classification" attachment if applicable.
  • Indicate if the business is a foreign entity/non-resident alien.
  • Answer each question if applicable.
  • Sign and date the form. Return the completed form as indicated on the Substitute W-9 form.

Ownership Status Definitions and Information

Individual* A person (not an actual business) who has a non-employee relationship with USNH by providing goods or services and should receive payment as an individual and not a business.
Sole Proprietor* An individual operating a business in which the business does not exist separately from the owner. The individual accepts the risks of the business to the extent of all his or her assets, whether used in the business or used personally.
Corporation A person or group of people who incorporate by receiving a charter from their Secretary of State. Includes associations, joint stock companies, insurance companies, and trusts and partnerships that operate as associations or corporations.
Partnership A relationship between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labor or skill, and expects to share in the profits and losses of the business. Partners can be individuals, corporations, trusts, estates, and other partnerships.
Limited Liability Company (LLC)* A business structure allowed by state statute, but not recognized by the federal government for federal tax purposes. This structure can take several forms including disregarded entity, corporation, and partnership depending on the relationship to the owner(s). Owners are called members and may include individuals, corporations, other LLCs, and foreign entities. There is no maximum allowable number of members. Some states permit "single member" LLCs, those that have only one member.

To be treated as a corporation, an LLC has to file Form 8832, Entity Classification Election with the IRS, and elect to be taxed as a corporation. Additionally, if the LLC is taxed as a disregarded entity/sole proprietorship we require the owner’s SSN.

Other
AA/EO Affirmative Action/Equal Opportunity Employer

*Social Security Numbers are required for all payments to individuals, for all payments to Limited Liability Companies designated as Disregarded Entities, and for all payments for services to sole proprietorships. If W-9 form indicates sole proprietorship provides ‘goods only’ without owner’s SSN, but it is determined payment to vendor is reportable on Form 1099-Misc, SSN is required.


Purchasing Offices

University System of New Hampshire
Procurement Services
121 Technology Drive, Suite 121
Durham, NH 03824-4716
Ph: 603-862-2896
Fax: 603-862-3390
Keene State College
Purchasing Office
229 Main Street
Keene, NH 03435-1601
Ph: 603-358-2493
Fax: 603-358-2495
Plymouth State University Purchasing Office
25 Highland Street, MSC #35
Plymouth, NH 03264-1595
Ph: 603-535-2246
Fax: 603-535-2711

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.