800.00 Preparing the Contract

 
  • Table of 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 Procurement Services and MSU Legal Counsel. If a vendor suggests another type of contract, departments must contact Procurement Services. 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.  Please contact Procurement Services if you need a one-time increase in your P-card limit to complete a purchase.

For purchases issued by Procurement Services, 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)

  1. The MSU Departmental Purchase Order (DPO) form is available from Procurement Services.  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 Procurement Services. 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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