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| SUBJECT: |
FINANCIAL AFFAIRS |
EFFECTIVE: December 20, 2007 |
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| Section: |
803.1 Purchasing Procedures |
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- 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. Officers and employees involved in purchasing decisions shall comply with all applicable federal and state laws and regulations relating to conflict of interest and acceptance of gifts and gratuities. 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.
- NDUS institutions shall cooperate and make joint purchases with the Office of Management and Budget Purchasing Division when advantageous to do so as intended by N.D.C.C. section 54-44.4-02. 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.
- Personal property, equipment or supplies estimated at less than $25,000 may be purchased at the discretion of the institution. When feasible, informal quotes or proposals should be solicited from a minimum of three vendors. Reasonable steps shall be taken to ensure that qualified North Dakota vendors have an opportunity to compete for the contract. Personal property, equipment or supplies estimated at $25,000 or more must be purchased from formal bids. As many sources as possible, including qualified North Dakota vendors should be solicited.
- Consulting or other contract services and insurance estimated at less than $100,000 shall be purchased by negotiation, telephone or informal written quote or proposal. When feasible more than one vendor should be requested to submit prices to ensure appropriate competition. Reasonable steps shall be taken to ensure that qualified North Dakota vendors have an opportunity to compete for the contract. Consulting or other contract services or insurance estimated at $100,000 or more must be purchased through a formal request for proposal process that includes procedures for identifying eligible vendors, developing a comprehensive requirements document, specifying unique needs, negotiating mutually acceptable contract terms, and listing minimum proposal requirements. Payments for services may be made only according to a written contract.
- All service contracts for a term in excess of three years shall include a provision for review of contract performance at specified intervals, not less frequently than once every two years. Service contracts may not exceed a term of ten years.
- 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 characteristics or properties are essential to the conduct of particular research projects, instructional or other critical functions, 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, merchandise, supplies, equipment or professional services, including research and consulting services.
REFERENCES: N.D.C.C. Section 44-08-01; N.D.C.C. Section 54-44.4-02.
Reference: NDUS Procedure 803.1, NDUS Procedure 803.1.1 |
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| HISTORY: |
Article II, Section 2.C.
SBHE Minutes, September 9-10, 1982, page 5070.
Amendment SBHE Minutes, May 10-11, 1984, page 5242.
Amendment SBHE Minutes, October 26-27, 1989, page 5901.
Amendment SBHE Minutes, May 24-25, 1990, page 6002.
Amendment SBHE Minutes, April 23, 1992, page 6222.
Amendment SBHE Minutes, January 20, 1994, page 6430.
Amendment SBHE Minutes, June 26, 1995, page 6569.
Amendment SBHE Minutes, April 17, 1998, page 6876.
Amendment SBHE Minutes, April 4, 2000.
Amendment SBHE Minutes, November 17, 2000.
Amendment SBHE Minutes, September 26, 2002.
Amendment SBHE Minutes, December 20, 2007. |
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