Northland Pioneer College - Procedure 2335

Procedure 2335

Purchasing

General Purchase Order Requirements

All requisitions require a minimum of two signatures. Any requisition over $10,000 must have the signature of a Vice President and a requisition that is $25,000 or more must have the signature of the President to be valid. A valid budget account number must be on each requisition. Requisitions using budget accounts with insufficient balances to cover the purchase will be returned to the originator. A yearly cutoff date for requisitions will be established by the Business Office to complete budget year purchases.

Requirements for Competitive Purchase

When practical, the college will assure adequate competition to make purchases at the lowest cost consistent with the quality and delivery requirements of the department requesting purchase. When practical, purchasing preference will be given to local vendors.

General Requirement - Value

Purchases of Equipment, Supplies and Services, Less than $5,000
Purchases of less than $5,000 may be made at the discretion of the Purchasing Department and do not require bidding.
Purchases of Equipment, Supplies and Services, $5,000 or More but Less than $25,000
Whenever possible, at least three price quotations for purchases in excess of $5,000 but less than $25,000 will be obtained. The price shall be shown on, or attached to, the related requisition form. If three quotations cannot be obtained, documentation showing vendors contacted but not offering price quotations, or an explanation of why price quotations were not obtained, will be shown on or attached to the related requisition form.
Purchases of Equipment, Supplies and Services, $25,000 or More
Whenever possible, sealed competitive bids/proposals for all purchases of goods and services having an estimated cost of $25,000 or more per transaction will be obtained. The Vice President for Administrative Services, or designee, will assist in this process.
Purchases of Equipment, Supplies and Services, $50,000 or More
Contracts and purchases of $50,000 or more value must be approved by the District Governing Board.
Construction Less than $25,000
Construction procurements of less than $25,000 may be made at the discretion of the Purchasing Department and/or Administrative Services and do not require bidding.
Construction $25,000 or More but Less than $50,000
The Purchasing Department and/or Administrative Services will, whenever possible, obtain at least three price quotations for purchases in excess of $25,000 but less than $50,000. The price quotations shall be shown on, or attached to, the related requisition form. If three quotations cannot be obtained, documentation showing vendors contacted but not offering price quotations, or an explanation of why price quotations were not obtained, will be shown on or attached to the related requisition form.
Construction $50,000 or More
Administrative Services will, whenever possible, obtain sealed competitive bids/proposals for all construction having an estimated cost of $50,000 or more.
District Governing Board Approval
Contracts and purchases of $50,000 or more value must be approved by the District Governing Board.
Subdividing Orders Prohibited
Purchasing transactions are not to be artificially divided or fragmented in order to meet the lesser requirements of lower dollar transactions.
State or Member Cooperative Purchases
Purchases made through state or “member cooperative” vendors do not require quotes or bids, but the contract name and number must be stated on the requisition.
Sole Source Purchases
Requisitions for purchases from a sole-source vendor must include documentation of sole-source status.

Recurring Requirements

The Vice President for Administrative Services, or designee, may use the same supplier for a subsequent request to purchase the same item without further price checking provided (1) that the item has not increased in price since the original quotation, and (2) that purchase occurs within 180 days following the bid expiration date. The original bid number will be noted on subsequent purchase orders.

Emergency Purchases

A breakdown of machinery, threatened curtailment or termination of an essential service, or a dangerous condition constitutes an emergency. The President, or designee, will make arrangements for purchasing necessary materials to resolve such problems. The director, or their designee, will obtain, whenever practical, competitive verbal price quotations and place an order with the lowest bidder that meets delivery and quality requirements. When practical, the college representative will contact individuals or companies under contract with the State government and will file the following documentation in the office of the Vice President for Administrative Services on the next regular business day.

Requisition marked “Confirming - Do Not Duplicate”
Tabulation of bids received
Copy of signed delivery receipt
Justification for emergency purchase

Contract Award

The Vice President for Administrative Services, or designee, shall recommend awarding of all contracts to the President. In evaluating bidder responses to an invitation to bid, the Vice President for Administrative Services will consider total cost, quality, and life cycle of contract purchase.

[Based on Policy #1210; Rev 01-08]