Guidance on Purchasing Memberships from Retailers Like Sam’s, Costco, or BJ’s
At VCU, it’s important to follow purchasing practices that ensure compliance, transparency, and efficiency. When it comes to buying memberships from retailers such as Sam’s Club, Costco, or BJ’s, there are several factors to consider:
- Payment Process: These retailers typically require payment at the time of purchase and may not have systems in place to handle university billing or invoicing.
- Sales Tax: Retailers often charge sales tax, which VCU is generally not authorized to pay.
- Membership Ownership: Memberships usually need to be registered in an individual’s name. This can create a conflict if the membership is funded by the university but used for personal purposes.
- Agreement Terms: Membership agreements often include clauses requiring indemnification, which VCU cannot agree to under university policy.
- Cost and Convenience: While shopping at these stores might seem cost-effective, the time and effort to shop and pick up items often offset any potential savings compared to contracted vendors.
- Liability Considerations: When employees use personal vehicles to pick up purchases, it introduces potential liability risks for both the individual and VCU.
- eVA Fees: Retail purchases processed through the eVA system may incur fees up to 2%, adding to the total cost.
For these reasons, it is generally advisable to use contracted vendors whenever possible. Doing so helps ensure compliance with state law and streamlines purchasing processes.
If you have questions or need guidance on purchasing options, please reach out to Procurement for support.
Categories Procurement Services