Purchasing and Contracting Procedures

Effective December 1, 2018, Minnstate received new Purchasing and Contracting authority from the State Legislature. The following procedures are in response to this new authority.

Purchasing:

All purchasing activity shall be subject to Minnesota Statute 471.345 Uniform Municipal Contracting Law. Procedures for SMSU will follow these established guidelines. Special circumstances and emergency requirements will be handled at the discretion of the Purchasing Supervisor and with the assistance of the Minnstate system office when needed. The Purchasing Supervisor will oversee all purchasing, bidding and contracting to insure that the guidelines from the Minnstate Office of the Chancellor have been followed, to assist in realizing the greatest possible savings, and insure the stewardship of University funds.

Purchasing and Contracting Procedures

Purchases of $0 - $10,000:  May be processed with one quote (written, fax, email, or catalog) including shipping/handling/freight from the vendor, however it is highly recommended that the department solicit at least two quotations where possible to realize potential savings, stewardship of state funds, and give equal opportunity to vendors to do business with Southwest Minnesota State University.  Quote must include vendor name, phone number, email address and date of the quote.  You are strongly encouraged to contact the vendor for a price quote because often you will get an educational discount.  Where desired, the Purchasing Office will obtain the quotations.  Please note quotes must include an amount for applicable shipping/handling/freight or a statement indicating none will be charged.

Purchases of $10,001 to $25,000:  A minimum of two firm written quotes shall be obtained (written, fax, email) when at all possible.  These quotes may be obtained by the requesting department or the Purchasing Office.  Quote must include vendor name, phone number, email address and date of the quote.  You are strongly encouraged to contact the vendor for a price quote because often you will get an educational discount.  Where desired, the Purchasing Office will obtain the quotations.  Please note quotes must include an amount for applicable shipping/handling/freight or a statement indicating none will be charged.  A sealed bid process through the Purchasing Office may also be requested.

Purchases of $25,001 to $50,000:  Submit a minimum of two written, signed and dated quotes or sealed bids for review and decision on how to proceed.  Quotes/bids must include vendor name, phone number, email address and date of the quote/bid.  Please note quotes/bids must include an amount for applicable shipping/handling/freight or a statement indicating none will be charged.

Purchases of $50,001 or more:  If the amount of the purchase is estimated to exceed $50,000, sealed bids shall be solicited by public notice in an official newspaper at least two weeks prior to the bid opening.  All bids and documents shall be retained and made a part of the permanent file.

Purchases over $100,000:  When purchases are in excess of $100,000 and the vendor has had more than 40 full-time employees in the past year, the vendor must obtain a Certificate of Affirmative Action Plan compliance from the State of Minnesota, Department of Human Rights.  The University is responsible for verifying that the vendor is in compliance.

At this time, purchases over $100,000 require Minnstate Office of the Chancellor approval from the Chief Financial Officer.  A memo must be submitted explaining the need for the purchase, the purchase amount, verification that funds are available for paying for the purchase, and describe what process will be used in making the award.  The institution may proceed with the purchase upon approval of the memorandum.  Bidding and advertising procedures will follow the same steps as those for purchases greater than $25,000 as listed above.

Questions

Questions related to Purchasing or Contracting should be directed to Christy Johnson, Purchasing Clerk, at extension 6215 or christy.johnson@smsu.edu.