SECTION CONTENTS 300.00 Purchasing Authority 310.00 Delegated Purchasing Authority 320.00 Sub parts to the Delegated Purchasing Authority 320.10 Non-Exclusive Statewide Term Contracts 320.20 Food 320.30 Bus Transportation 320.40 Animals 320.50 Agricultural Items 330.00 EXCLUSIONS to Delegated Purchasing Authority 330.10 Controlled Items 330.20 Surplus Property 340.00 EXCEPTIONS to Delegated Purchasing Authority
300.00 PURCHASING AUTHORITY
MSU-Bozeman Purchasing Department: The State Department of Administration, General Services Division, State Procurement Bureau (SPB), and the MSU-PD entered into a "Procurement Delegation Agreement" effective through September 30, 2003. The State has authorized the MSU-PD to procure all non-controlled supplies or services with a "Total Contract Value" (TCV) of $250,000 or less. This is applicable to all contracts, including payment contracts, revenue generating contracts, and no-cost contracts.
The MSU-PD is solely responsible for purchasing supplies and services with a total contract value over $25,000 and up to $250,000 on behalf the University. This is designed to relieve the faculty, research personnel and departmental staff of certain duties and responsibilities connected with the procurement process. "Procurement" is defined as "acquisition with or without cost, buying, purchasing, renting, leasing, or otherwise acquiring any supplies or services. This term includes all functions that pertain to obtaining supplies or services, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration."
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The Concept of "Total Contract Value" |
| "Total contract value" means the initial contract
period, plus any options to renew or any options to buy additional
supplies or services. The concept of "total contract value" is used
as a cutoff guideline for delegated purchasing authority and for the
various procurement methods established by the State Procurement Bureau.
1. Small Purchases - up to $5,000. Agencies may use the procurement method that best meets their needs. The MSU-Bozeman MSU-PD recommends that departments follow prudent purchasing practices and receive competitive quotations where practical. 2. Limited Solicitation - Purchases exceeding $5,000 up to and including $25,000. Agencies must use this procurement method when purchasing services and supplies with a "total contract value" over $5,000 and up to $25,000. This procedure requires competitive procedures and a minimum of three written or oral quotations, if available. Departments must use the "Limited Solicitation" form available on the MSU-PD website at http://www.montana.edu/wwwbu/purchasing/index.html and document the results on the "Tabulation of Bids Resulting from Limited Solicitation Procedures" form at: http://www2.montana.edu/policy/purchasing/purch1800.html#1800. This procurement method does not apply to "controlled items." 3. Formal Bids and Proposals - Purchases exceeding $25,000. The MSU-PD is authorized to purchase supplies and services with a "total contract value" over $25,000 and up to $250,000 using two procurement methods to seek formal competition -- competitive sealed bids and competitive sealed proposals. MSU departments and affiliated campuses ARE NOT authorized to use these procurement methods, unless they are specifically delegated purchasing authority over $25,000. |
310.00
Delegated Purchasing Authority
MSU-Bozeman Departments and Affiliated Campuses:
The "Procurement Delegation Agreement" between the SPB and the MSU-PD
authorizes the MSU-PD to further delegate purchasing authority. However, the
Purchasing Director at MSU-Bozeman reserves the right to reduce, suspend or
revoke delegated purchasing authority for failure to adhere to purchasing
policies and regulations established herein. For purchases with a Total
Contract Value up to $25,000, the purchasing function is de-centralized to
provide Departments and Affiliated Campuses, flexibility and efficiency in
administration and management. Please note the EXCEPTIONS to
this delegation, as reflected below.
MSU-Bozeman Departments, MSU College of Technology at Great Falls, and MSU-Northern:
Purchasing authority for supplies and services with a total contract value
up to $25,000 is hereby delegated.
MSU-Billings and MSU-Bozeman Auxiliary Services & Facilities Services
Departments: Purchasing authority for supplies and services with a total
contract value up to $50,000 is hereby delegated. This delegation authority
is specifically limited to the personnel identified below:
MSU-Billings: Nancy Voorhees or her
replacement;
MSU-Bozeman Auxiliary Services: Mary Lou Wilson, or her replacement;
MSU-Bozeman Facilities Services: Roz
Wortman or her replacement.
320.00
Sub-parts to the Delegated Purchasing Authority
320.10
Non-Exclusive Statewide Term Contracts
The SPB establishes Term Contracts for supplies and services that are commonly
procured by State Agencies. These Term Contracts are based on competitive
procedures and are negotiated by the SPB to provide the best prices available
to State Agencies based on economic order quantities. See
Appendix M for a list of current State
Term Contracts.
MSU-Bozeman departments and
affiliated campuses, herein
referred to as "Departments,"
are authorized to purchase supplies and services from "Non-Exclusive"
Statewide Term Contracts, regardless of total contract value. However, if a
department chooses NOT to purchase supplies and services available from
these Term Contracts, you must follow the purchasing processes defined herein
and must comply with the delegated purchasing authority established herein.
If you know of any items or services that are not currently on a State Term Contract, but would be a good candidate; or if any current State Term Contract should be modified or discontinued, please submit the Term Contract Comment form (Appendix AD) to the MSU-PD.
320.20 Food
MSU-Bozeman is authorized to make all food purchases necessary for the
operation of its facilities, regardless of dollar amount, following the
requirements of Title 18, MCA, and Title 2, Chapter 5, ARM. The MSU-PD has
further delegated this authority to Departments, within the specific
delegation limits identified in the Procurement Delegation Agreement.
Departments are responsible for complying with policy # 205.4 established in the Montana University System Policy and Procedures Manual. A unit may pay expenses for official hospitality, community relations, or public relations only when such activities are directly related to the unit. Food purchases for official entertainment, community relations, or public relations may only be made when (1) such activities are directly related to the objectives of the campus and (2) when the Department has evaluated the importance of the event in terms of the costs that will be incurred, benefits that are anticipated from the expenditure, the availability of funds, and alternatives that would be equally effective in accomplishing the desired objective. Departments must comply with Section 460 of the Business Procedures Manual for "Hospitality Approval" located at: http://www2.montana.edu/policy/business_manual/bus400.html#460.00
320.30 Bus Transportation
The Agency is authorized to purchase the necessary bus transportation
services, regardless of dollar amount, following the requirements of Title 18,
MCA, and Title 2, Chapter 5, ARM. The MSU-PD has further delegated this
authority to Departments.
320.40:
Animals
The Agency is authorized to purchase animals, regardless of dollar amount,
following the requirements of Title 18, MCA, and Title 2, Chapter 5, ARM. The
MSU-PD has further delegated this authority to Departments, within their
specific delegation limits.
320.50:
Agricultural items
The Agency is authorized to purchase livestock feed, machine hire for agricultural field work, and fertilizer, regardless of dollar amount, following the requirements of Title 18, MCA, and Title 2, Chapter 5, ARM. The MSU-PD has further delegated this authority to Departments, within their specific delegation limits.
330.0 EXCLUSIONS TO THE DELEGATED PURCHASING AUTHORITY:
330.10 Controlled Items:
Departments ARE NOT authorized to purchase controlled items, regardless
of dollar value, except as specifically authorized herein.
"Controlled items" includes supplies or services identified below:
(A) Requisition Time Schedule items
(B) "Exclusive" Statewide Term Contract issued by the SPB
(C) A supply provided by the Central Stores program
(D) Any printing projects, aside from business cards
(E) Purchases made through Cooperative Agreements.
(A) Requisition Time Schedule (RTS)
The Requisition Time Schedule is a
calendar of dates for which requisitions for certain items are due to the SPB.
These items are identified as items, which the State of Montana can secure
significant cost savings by buying in quantity or purchasing at certain times
of the year. Use of the RTS is mandatory for MSU for New Vehicles. The MSU-PD
and departments ARE NOT authorized to purchase new vehicles (cars,
trucks, and police pursuit vehicles). The MSU-PD will notify all departments
with specific dates that Purchase Requisitions for new vehicles are due to the
MSU-PD (see
Appendix N).
(B) "Exclusive" Statewide Term Contracts
Departments are authorized to purchase supplies and services identified on "exclusive" Statewide Term Contracts, regardless of dollar value, except as noted below. The Montana SPB (SPB) established these contracts using competitive procedures. Due to the exclusivity of the contract, departments must purchase supplies and services from the suppliers identified on these contracts. Departments are prohibited from purchasing supplies and services from any other source. The MSU-PD web site contains a direct link to the State Term Contracts. This list identifies the contract as "exclusive" or "non-exclusive". See http://gsd.mt.gov/procurement/termcontracts.asp.
Departments ARE NOT AUTHORIZED to purchase:
Photocopiers
2-Color Standard Printing Letterhead (state seal logo only)
PHOTOCOPIERS: The Photocopier Evaluation Worksheet
(Appendix J) is provided as a tool to
assist departments in determining the type of photocopier that will best meet
your needs. If the worksheet was used, please attach the worksheet to the
Purchase Requisition (PD-1).
(C) Central Stores
Departments are authorized to purchase office supplies, within
their delegated purchasing authority. Office supplies includes all office and
computer supplies, fine and coarse paper, custodial supplies and chemicals,
plastic can liners and food service items. MSU is not required to purchase
office supplies from the State Central Stores program; however, the MSU-PD
encourages use of the Central Stores Program. Additional information is
available at:
http://gsd.mt.gov/procurement/centralstoresprogram.asp.
(D) Printing
Departments are
authorized to purchase printing services within their delegated purchasing
authority. Use of the State Print and Mail Services Bureau (P&MSB) is optional
for MSU. Printing services can be obtained from MSU-Bozeman University
Printing, the State P&MSB, or vendors. To obtain printing services from the P&MSB,
the department is required submit a Purchase Requisition to the MSU-PD. All
contracted printing must be obtained following the provisions of Title 18,
MCA, and its accompanying rules. Please consult with the MSU-Bozeman
Communication Services Department to seek guidance and customer service. For
additional information, see
http://gsd.mt.gov/agency/printmailservices.asp.
Departments are authorized to purchase standard printed envelopes if ordered from University Printing.
(E) Cooperative Agreements
The SPB is responsible for making decisions to participate in cooperative
purchasing agreements. MSU has agreed to contact the SPB prior to any
participation in a cooperative purchasing agreement (MCA, Title 18, chapter 4,
402). Additional information is available at:
http://gsd.mt.gov/local/cooperativepurchasingprogram.asp.
Departments have the option of using the services of the State Surplus Property program, including the procurement of used vehicles. Title 19, chapter 6, MCA, identifies the policies concerning the sale of surplus property and the distribution of the sale proceeds back to the general fund or the appropriate enterprise or internal service fund or designated account. For additional information, please contact Carla Wiedeman in Property Management at 406-994-5504.
340.00
Exceptions to Delegated Purchasing Authority:
Per ARM 2.5.301, delegated
purchasing authority and competitive procedures are not necessary for the
following (see
Appendix AC):
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Salaries |
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Travel and per diem |
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Freight |
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Landfill charges |
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Training |
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Training and conference space rental and catering |
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Services exempted by section 18-4-132, Montana Code Annotated |
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Retirement and social security payments |
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Fresh fruits and vegetables |
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Pastoral services |
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Supplies or services whose prices are regulated by the public service commission or other governmental authority |
Delegated authority and competitive procedures are not required for purchases
of supplies or services from Sheltered Workshops. However, prevailing wages
are applicable to supplies or services obtained from Sheltered Workshops.
Please refer to:
http://gsd.mt.gov/procurement/shelteredworkshops.asp.
A list of supplies and services from the Sheltered Workshops program is available at: http://gsd.mt.gov/procurement/shelteredworkshops.asp.
Delegated authority and competitive procedures are not required for interagency agreements, unless otherwise prohibited by law.
