> MSU Policy and Procedures > Procurement Policy and Procedures
800.00 Preparing the Contract
SECTION CONTENTS
800.00 Preparing the Contract
810.00 Departmental Purchase Order (DPO)
820.00 Contracted Services Agreement (CSA)
820.10 Special Procedures for Office of Sponsored Programs
800.0 Preparing the Contract
A written contract is required for all purchases over $5,000. The contract may
be in the form of a Departmental Purchase Order (DPO) or a Contracted Services
Agreement (CSA), depending on the supplies or services to be acquired.
Departments are not authorized to use any other form of contract without
obtaining prior approval from the MSU-PD and MSU Legal Counsel. If a vendor
suggests another type of contract, departments must contact the MSU-PD. The DPO
and CSA forms contain terms and conditions that are applicable to MSU issued
contracts and are favorable to the University.
Departments are encouraged to use the Purchasing Card if the total
contract value does not exceed $5,000.
For purchases issued by the MSU-PD, we will determine the appropriate contract
form, such as a Purchase Order, Purchasing Agreement, CSA or contract resulting
from an RFP.
810.00 Departmental Purchase Orders (DPO)
The MSU Departmental Purchase Order (DPO) form is available from the MSU-PD.
The form will be available in electronic form. (See
Appendix D)
1. Use of a Departmental Purchase Order is recommended for purchases of supplies
with a total contract value up to $5,000, unless you use the Purchasing Card or a Contracted Services Agreement (CSA). The CSA is required
when purchasing services, regardless of dollar value. Departments are encouraged
to use the Purchasing Card.
2. Use of a Departmental Purchase Order is required for purchases with a total
contract value over $5,000, unless the Department issues a CSA. The SPB requires
a written contract for all purchases over $5,000.
3. The DPO incorporates MSU-Bozeman's Standard Terms and Conditions for
purchases with a Total Contract Value of $25,000 or less (see
Appendix AA).
Departments are not authorized to negotiate the Standard Terms and Conditions. MSU Legal Counsel must approve any changes to the Standard Terms and Conditions,
prior to contract award.
4. Departments are not required to send copies of DPO's to the Purchasing
Department. Departments are required to retain copies of DPO's in their
Department's files in accordance with policy established by the State Records
Bureau.
5. The DPO provides the following benefits:
. A written record that legally binds the buyer and seller.
. Provides the Standard Terms and Conditions that are applicable to
purchases up to $25,000. These terms and conditions are favorable
to the University.
. Provides a unique DPO number, which should be referenced on all
correspondence.
. Identifies the index number and person authorizing the order.
. Provides a complete shipping address and ensures delivery of the merchandise
to the proper location
. Many suppliers require an official purchase order.
820.00 Contracted Services Agreement
(CSA)
Departments are authorized to purchase services within their delegation
authority. However, Departments must issue a CSA, if the total contract value
exceeds $5,000. The CSA template is located at
Appendix Y. Departments are not
authorized to negotiate the Terms and Conditions in the CSA template. MSU Legal
Counsel must approve all changes prior to contract award. For services funded by
Office of Sponsored Programs , a CSA is required for all purchases with a total
contract value of $5,000 or greater and OSP must sign the contract prior to
award. Please refer to Appendix W for specific procedures and
Appendix X for
the Independent Contractor Checklist.
NOTE: A fully executed CSA must be authorized (signed by all parties) prior to
commencement of work.
The CSA provides the following benefits:
. A written record that legally binds the University and the Contractor.
. Provides terms and conditions that are favorable to the University.
. Provides a unique contract number (over $25,000), which should be referenced
on all correspondence.
. Identifies the Contractor and the person who authorized the contract.
. Defines the scope of work, period of performance, and payment terms, etc.
. Many contractors prefer an official contract.
820.10 Special Procedures for Office of Sponsored Programs Purchases
Purchase Requisitions: Instructions for obtaining appropriate signatures on the
Purchase Requisition are located in Appendix E.
Contracts valued at $5,000 or more: Contracts with a total contract value of
$5,000 or higher, must be approved and signed by Office of Sponsored Programs prior to
performance. This gives OSP an opportunity to verify contract compliance. Refer
to Appendix Z for the CSA Routing Slip to ensure proper signatures are on the
CSA.
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