> MSU Policy and Procedures > Procurement Policy and Procedures
400.00 General Information
SECTION CONTENTS
410.00 Definitions
440.00 Personal Gifts to be
Declined
450.00 Conflict of Interest
460.00 Purchases Near Close of
Fiscal Year
470.00 Trial or Demonstration
Equipment
410.00
Definitions
"Contract" means a written agreement between two or more
parties that are authorized to legally bind each party to provide goods or
services in exchange for consideration. Common contracts issued by MSU
include Departmental Purchase Orders (DPO's), Purchase Orders (PO's),
Contracted Services Agreement's (CSA's), and contracts issued as a result of
the "Request for Proposal" process.
"Exigency purchase",
means a
purchase made without
following purchasing procedures due to a sudden and unexpected happening or
unforeseen occurrence/condition, which requires immediate action. An exigency
purchase is commonly referred to as an Emergency Purchase.
"Ratification" means the act of
approving an unauthorized commitment by an official who has the authority to
do so.
"Services" means the furnishing
of labor, time, or effort by a contractor. Services does not include
employment agreements or collective bargaining agreements, the provision of
human services administered by the department of public health and human
services, or services related to construction contracts.
"Supplies" means all property except as
otherwise provided by law, including but not limited to equipment, materials,
printing, and commodities, and excluding land or any interest in land.
"Unauthorized commitment" means an
agreement that is not binding solely because the Department representative who
made it lacked the authority to enter into that agreement on behalf of the
University or the Department failed to comply with Purchasing Procedures.
For further definition, please refer to
Appendix R "Glossary of Terms" and
Montana Code Annotated (MCA) 18-4-123 located at:
http://data.opi.state.mt.us/bills/mca/18/4/18-4-123.htm.
420.00 Unauthorized
Purchases
Departments are responsible for
complying with the purchasing procedures established herein. Departments are
liable for purchases that are made that are not compliant with purchasing
regulations, policies, and procedures. Departments will be held accountable
for improper handling of purchases. At the discretion of the MSU-Bozeman
Director of Purchasing, the delegation authority established herein may be
reduced, suspended or revoked for failure to adhere to State laws, rules, and
purchasing procedures.
PURCHASES FOR PERSONAL USE ARE NOT ALLOWED.
430.00
Ratification of Unauthorized Purchases
The University has implemented a "Ratification" process for unauthorized
purchases. The MSU-PD will contact the department to seek information
regarding the unauthorized commitment. The department must submit information
as requested by the MSU-PD. Upon receipt, the MSU-PD will review the
information and make a determination to ratify the unauthorized commitment, if
deemed in the best interest of the University.
The Director of Purchasing at MSU-Bozeman is designated as the ratifying
official and will seek approval of the ratification from the Controller. Upon
approval, the Director of Purchasing will ratify the unauthorized commitment.
The authority may be exercised only when -
Supplies or services have been
provided to and accepted by the University, or the University has obtained or
will obtain a benefit resulting from performance of the unauthorized
commitment;
-
The ratifying official has the authority to enter into a contractual
commitment;
-
The resulting contract would otherwise have been proper if made by an
appropriate Procurement Official or designated representative;
-
The Controller has authorized payment after seeking guidance from MSU
Legal Counsel, as needed, to ensure compliance with State of Montana Laws;
-
Funds are available and were available at the time the unauthorized
commitment was made; and
-
The ratification is in accordance
with the limitations prescribed in the Procurement Delegation Agreement
between the SPB and the MSU-Bozeman Purchasing Department.
440.00 Personal
Gifts to be Declined
Personal gifts or gratuities that might
influence or give the appearance of influencing the requisition or purchase
of material(s) must be declined. Occasionally, gifts or premiums of
little value are unavoidable. When these
are received, they are to be considered
University property and should be reported as a notation on the invoice,
and included on the department petty equipment or supply inventory.
450.00 Conflict of
Interest
The Montana State University-Bozeman
Faculty Handbook, Section 440.00, establishes policy on Conflict of
Interest. This handbook is available at
http://www.montana.edu/wwwfachb/fc/.
460.00 Purchases
Near Close of Fiscal Year
Purchase Requisitions and
invoices for supplies, equipment or services submitted at or near the close of
a fiscal year (June 30) are to reflect essential requirements and are not to
be used to exhaust appropriation balances. The MSU-Bozeman Controller's Office
will issue fiscal year end instructions each April.
470.00 Trial or
Demonstration Equipment
Departments are authorized
to make arrangements for trial or demonstration equipment. Departments must
send the "Product Demonstration" letter to the vendor prior to receipt of the
equipment. This letter does not waive the department's responsibility to
follow purchasing procedures. Departments are not authorized to use the
product demonstration as leverage for purchasing the equipment. The terms and
conditions of this letter may not be revised unless approved by the MSU-PD.
The letter template is reflected in
Appendix
S.
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