Contract Types & Supplier Performance | KCTCS

Administrative Procedures

Contract Types & Supplier Performance

Procedure Number: 5.4.9-P

Current Effective Date: 08/01/2017

Original Effective Date: 07/01/2008

Revision Dates: 07/01/2008, 01/01/2015, 05/30/2017

Revision Number: 3

Revision Summary:

Responsible Official: Director of Procurement to Payment


1. Purpose

To describe the types of contract commitments available with KCTCS and supplier performance with contracts.

2. Scope

This procedure applies to all KCTCS employees.

3. Purchase Orders


Purchase orders are processed when KCTCS makes a commitment to purchase a specific quantity or amount of a good or service at a specific price.

  1. Created by KCTCS System Office of Procurement to Payment Services in PeopleSoft Financials from submitted/approved requisitions.
  2. Payment to supplier sent upon receipt of good(s) or service(s) and a valid invoice submitted within PeopleSoft Financials.
    1. Business unit should inspect goods/services for acceptance prior to receipt in PeopleSoft.
    2. Exposed damage on shipments should be noted on the bill of lading or waybill prior to accepting delivery.
    3. Late deliveries or services should be resolved between the business unit and supplier – contact KCTCS System Office of Procurement to Payment Services if supplier fails to cooperate. 
    4. Products and services are to be inspected and receipted within two (2) working days of delivery/completion – the end user should confirm correct specifications, quantity, and shipment location.
      1. Concealed damage shall be reported to supplier, delivery carrier, and KCTCS System Office of Procurement to Payment Services within 7 days upon delivery.
    5. All equipment shall be tagged and inventoried within five (5) working days upon delivery. – Refer to Business Procedure 5.2.9-P.

4. Price Contract


Price contracts are processed when KCTCS needs to establish price agreements with suppliers for supplying specific items at a specific price but without a specific quantity for a definite period of time.

  1. Created and administered by KCTCS System Office of Procurement to Payment Services when there is a continual need for a specific good or service.
  2. KCTCS reserves the right to extend and use contracts established by other state agencies and universities in Kentucky.
  3. KCTCS reserves the right to use contracts established by the United States Government, General Service Administration (GSA) upon agreement with the suppliers to extend the same contract provisions.
  4. When using a price contract to order, only include items covered under the price contract to the requisition.
  5. Additional quotes are not needed when using a price contract to place orders.
  6. Refer to Business Procedure 5.4.14-P for Printing Price Contracts.
  7. Copier leases and postage meter leases should be on a price contract.


Price Contract Supplier Performance:

  1. Business units should resolve minor issues with suppliers directly.
  2. Business units should contact KCTCS System Office of Procurement to Payment Services if suppliers do not address or cooperate to resolve issues.
    1. Business unit should fill out a supplier performance report and submit to KCTCS System Office of Procurement to Payment Services. 
    2. Supplier performance reports will be documented, supplier contacted, and business unit will be notified with the resolution. 
    3. Supplier performance reports will be kept as a permanent record in the supplier file.
    4. Continued complaints could result in penalties against the supplier.