300.00 Purchasing Authority

 
  • Table of 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 Procurement Services: The State Department of Administration, General Services Division, State Procurement Bureau (SPB), and Procurement Services have entered into a "Procurement Delegation Agreement". The State has authorized Procurement Services to procure all non-controlled supplies or services with a "Total Contract Value" (TCV) of $500,000 or less. This is applicable to all contracts, including payment contracts, revenue generating contracts, and no-cost contracts.

Procurement Services is solely responsible for purchasing supplies and services with a total contract value over $25,000 and up to $500,000 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."

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 Procurement Services 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 document the results on the "Tabulation of Bids Resulting from Limited Solicitation Procedures" form at: /policy/purchasing/purch1800.html#1800.
This procurement method does not apply to "controlled items."

3. Formal Bids and Proposals - Purchases exceeding $25,000 . Procurement Services is authorized to purchase supplies and services with a "total contract value" over $25,000 and up to $500,000 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 Procurement Services authorizes Procurement Services to further delegate purchasing authority. However, the Director of Procurement 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, Great Falls College MSU, 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 and Information Technology Center: Purchasing authority for supplies and services with a total contract value up to $150,000 is hereby delegated. This delegation authority is specifically limited to the personnel identified below:

MSU-Billings: Barb Shafer, or her replacement;
MSU-Bozeman Auxiliary Services: Mary Lou Wilson, or her replacement;
MSU-Bozeman Facilities Services: Jen Luft or her replacement.
MSU-Bozeman Information Technology Center: Anne Milkovich, or her replacement

320.00 Sub-parts to the Delegated Purchasing Authority


320.10Non-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 contact Procurement Services.

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. Procurement Services 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: /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. Procurement Services 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. Procurement Services 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. Procurement Services 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:

  1. Requisition Time Schedule items (new vehicles)
  2. "Exclusive" Statewide Term Contract issued by the SPB
  3. 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. Procurement Services and departments ARE NOT authorized to purchase new vehicles (cars, trucks, and police pursuit vehicles). Procurement Services will notify all departments with specific dates that Purchase Requisitions for new vehicles are due to Procurement Services.

(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. Procurement Services 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:

(C) 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 .

(F) Used Vehicles

Departments must purchase Used Vehicles in the following manner:

a. Contact Procurement Services with your used vehicle needs. Procurement Services will contact the State Surplus Property program at (406) 495-6016 to seek information on the availability of used vehicles. If a suitable used vehicle is not available, the State Surplus Property program will give the AGENCY written permission to proceed with the purchase of a used vehicle according to the delegation agreement from the private sector.

b. Purchase Price. The department will submit a requisition to Procurement Services if it is anticipated that the total purchase price of a used vehicle(s) may exceed Department’s delegated procurement authority. If not, Department may solicit competition for the used vehicle following the approved procurement methods

330.20 Surplus Property

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 Kristin Harbuck in Property Management at 406-994-5504.


340.00 Exceptions to Delegated Purchasing Authority:
Per ARM 2.5.301, 2.5.604(6), & 2.5.607, delegated purchasing authority and competitive procedures are not necessary for the following (see Appendix AC):

Salaries

Travel and per diem

Books & Periodicals only available from a single supplier

Specific brand name items for resale to the public

Subcontractors associated with specific research grant programs, if subcontractors are specifically named

License agreements for electronic publications including licensed library materials, journals (scientific, technical, or medical) journal articles, periodicals, and course packs

Freight

Landfill charges

Training

Training and conference space rental and catering

Services exempted by section 18-4-132, Montana Code Annotated

Retirement and social security payments

Fresh fruits and vegetables

Foods produced in Montana

Employment of: Registered professional engineer or architect, surveyor, or real estate appraiser Physician, dentist, pharmacist, or other medical, dental, health care provider, expert witness hired for use in litigation, hearings officer, or attorney as specified by executive order of the governor, consulting actuaries, private investigator, or claims adjusters.

Educational Instructors

Professional Licenses

Dues to Associations

Renewal of software license agreements

Purchase or renewal of maintenance agreements for software or hardware

Advertising placed in publications or on radio, television, or other electronic means

Pastoral services

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/ProcurementServices/shelteredworkshops.mcpx

A list of supplies and services from the Sheltered Workshops program is available at: http://gsd.mt.gov/ProcurementServices/shelteredworkshops.mcpx

Delegated authority and competitive procedures are not required for interagency agreements, unless otherwise prohibited by law.

 


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