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| SUBJECT: |
FINANCIAL AFFAIRS |
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EFFECTIVE: October 08, 2009 |
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| Procedure: 803.1 Purchasing |
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- SBHE Policy 803.1 requires that each institution shall develop and implement necessary and appropriate policies and procedures to ensure compliance with laws and State Board of Higher Education policies governing purchasing. Institution purchasing policies and procedures shall incorporate (or refer to) SBHE Policy 611.4 relating to conflict of interest, and include procedures for disclosing a conflict of interest. Further, institution purchasing policies and procedures shall address whether vendors' offers of scholarships, endowments and other premiums contained in bids or proposals will be considered and, if so, the criteria for evaluating such offers. As required under SBHE Policy 803.1, institutions shall cooperate and make joint purchases with OMB Purchasing Division to comply with the intent of the North Dakota Century Code 54-44.4-02 when it is advantageous to do so. Institutions may also purchase equipment or supplies through participation in joint purchasing alliances formed with other states or organizations, when it is advantageous to do so. Additional bids or proposals shall be solicited from other vendors when required by law or this policy.
- Requirements governing when bids or proposals are required and when items or services may be purchased at the discretion of the institution are established in SBHE Policy 803.1. As a general rule, personal property, equipment or supplies estimated at less than $25,000 may be purchased at the discretion of the institution; personal property, equipment or supplies estimated at $25,000 or more must be purchased from formal bids. Also, as a general rule, consulting or other contract services or insurance estimated at less than $100,000 may be purchased by negotiation or telephone or informal quote or proposal; consulting or other contract services or insurance estimated at $100,000 or more must be purchased through a formal request for proposal process.
- When formal bids or proposals are not required, institutions should when feasible solicit informal quotes or proposals from more than one vendor and take reasonable steps to ensure that qualified North Dakota vendors have an opportunity to compete for the contract.
- When formal bids are required, institutions should solicit proposals from as many sources, including North Dakota vendors, as possible. Specific times and dates for bid opening must be specified. A bid bond or certified check may be required.
- According to SBHE Policy 803.1, items which do not require competitive bidding are: purchases made from discount contracts under a group alliance or consortium; other items possessing unique characteristics or properties which because of those peculiarities are essential to the conduct of particular research projects or instructional endeavors, or sole source services. Purchase of an item or service under this exception, is permitted only with the written approval of the purchasing officer or other official delegated that authority based upon documentation of:
- The unique characteristics of the product, and
- Specifically what task is to be performed requiring the unique characteristics of the product.
The purchasing office shall document in writing the process in all cases in which the lowest bid is not accepted. All required documentation shall be retained according to governing records retention policies.
- Preference shall be given to North Dakota bidders when required pursuant to N.D.C.C. Section 44-08-01. Accordingly, preference equal to the preference given or required in the state of a nonresident bidder shall be given in purchasing any goods, merchandize, supplies, or equipment. Also, when accepting bids for the provision of professional services, including research and consulting services, the contract shall be awarded to a resident North Dakota bidder if the bid of the resident North Dakota bidder is equal to or less than the low bid of a nonresident bidder and the resident North Dakota bidder has an acceptable performance history and meets the minimum requirements specified in the bid solicitation.
- As provided under SBHE Policy 803.2, these procedures may be waived and a purchasing agent or other officer delegated such authority determines that an emergency requires such action. "Emergency" means that the immediate demand for supplies, materials or services is such as to seriously hamper the operation of the institution or system and, in spite of reasonable remedial action, would result in damage more costly than the purchase involved, if purchased through normal procedures. The nature of the emergency and determination that the circumstances justified waiver of purchasing procedures shall be documented in writing.
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| REFERENCE: SBHE Policies 803.1, 803.2 |
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| HISTORY: |
Chancellor's Cabinet Meeting, June 2001
Chancellor's Cabinet Meeting, September 26, 2002
Chancellor's Approval, October 8, 2009 |
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