Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 361]

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1995]

UNIVERSITY OF ILLINOIS

349

Agreement with First National Bank of Chicago for University Procurement Card Program

(24) For several years the University has worked to improve its procurement and payment process for high volume, small dollar transactions that presently require an inordinate proportion of administrative resources to manage. In Fiscal Year 1994, the University processed over 138,000 orders valued at $275 million. Over 80 percent of the payments to vendors were $500 or less, accounting for only 6 percent of the total dollars spent. A University-wide committee of business office and campus officials with a representative number of academic administrators was formed to study the use of a procurement card program. Such programs have been implemented successfully at other universities. The committee concluded that a procurement card program will result in an enhancement to the University's procurement process, allowing it to meet the needs of departments in a more rapid, cost-effective fashion. The procurement card program will enable the University to efficiently process and pay routine dollar purchases made directly by authorized employees. The advantages of a procurement card program include: Takes advantage of electronic technologies to gain processing efficiencies in academic and administrative units. Significantly reduces the paperwork and related costs at all levels of the University associated with ordering, control, and payment of small dollar purchases. Frees procurement resources to concentrate on major acquisitions. Provides improved management information. Control of purchases is possible by restrictions of purchases according to such criteria as dollar amount per transaction, or time period; also, restrictions by merchant category are possible. These restrictions may be varied as appropriate for each individual card holder. A request for proposal was issued to 17 procurement card service providers. Seven proposals were received, and after oral presentations by two firms selected as finalists, the committee determined that the First National Bank of Chicago offered the most advantageous program with the greatest experience. The initial term of the contract would be three years, with annual, mutually agreeable options to renew thereafter. The expenses for the initial year are anticipated to be less than $7,500 with subsequent annual expenses expected to be approximately $5,000 per year. The vice president for business and finance recommends approval of the program. I concur.

On motion of Dr. Gindorf, this recommendation was approved by the following vote: Aye, Mr. Engelbrecht, Dr. Gindorf, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez, Mrs. O'Malley, Ms. Reese; no, none; absent, Dr. Bacon, Mrs. Calder, Governor Edgar. (The student advisory vote was: Aye, Mr. Malone, Mr. Rose; no, none; absent, Mr. Mathew.)

Contract for Employment of Management Firm, Grounds Operation and Maintenance, Chicago

(25) The president of the University, with the concurrence of the appropriate administrative officers, recommends the employment of ServiceMaster Management Services Co., Downers Grove, for the professional management services associated with the maintenance of grounds at the Chicago campus.