• 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
  • 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, State Financial Services Division, State Procurement Bureau (SPB), and the Montana University System [MUS] have entered into a "Procurement Delegation Agreement". MUS has delegated to the MSU Procurement Services the authority to procure all non-controlled supplies or services with a "Total Contract Value" (TCV) of $500,000 or less for Montana State University. 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:

Procurement Services is authorized 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: 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; Jessika Thomas or her replacement

320.10 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. The list of current State Term Contracts is found here.


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, the department must submit a Purchase Requisition (PD-1) form for purchase with a TCV in excess of $25,000. If a department chooses NOT to purchase supplies and services available from these Term Contracts, the department must follow the purchasing processes required by this policy and must comply with their delegated purchasing authority.

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 Specific Delegatd Authority

Procurement Services is delegated unlimited authority for procurement of the items contained in Appendix A.  Procurement Services may further delegate this authority to appropriate departments on an item by item basis.

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.

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) Statewide Term Contracts

Departments are authorized to purchase supplies and services identified on Statewide Term Contracts, regardless of dollar value, except as noted below. The Montana SPB (SPB) established these contracts using competitive procedures. Procurement Services web site contains a direct link to the State Term Contracts.

(B) Montana eMarket Center (eMACS). Departments are strongly encouraged to purchase office supplies, through the Montana eMarket Center.  See eMACS Resources for instructions.

(C) New and Used Vehicles. Departments may not purchase new vehicles regardless of dollar value. All purchases of new vehicles must be arranged through MSU Procurement Services who will coordinate the purchase with SPB.  Departments may purchase used cars but must coordinate with MSU Procurement Services before purchasing the vehicle.

330.20 Cooperative Purchasing Agreements

The SPB is responsible for making decisions to participate in cooperative purchasing agreements. Procurement Services is required to contact the SPB prior to any participation in a cooperative purchasing agreement (MCA, Title 18, chapter 4, 402). Departments may not enter in Cooperative Purchasing Agreements.

340.00 Exceptions to Delegated Purchasing Authority and Competitive Procedures:

Per ARM 2.5.301, 2.5.604(6), & 2.5.607, delegated purchasing authority and competitive procedures are not necessary for the items listed in Appendix AC). A purchase of exempt items denoted by an asterisk in Appendix AC that exceeds $25,000 requires the submission of the PD-1 form to Procurement Services.


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.

A list of supplies and services from the Sheltered Workshops program is available at: https://emacs.mt.gov/Portals/122/Sheltered_Workshops/shelteredworkshops.pdf 

Salaries

Travel and per diem

Books & Periodicals only available from a single supplier

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: https://emacs.mt.gov/ShelteredWorkshops  

A list of supplies and services from the Sheltered Workshops program is available at: https://emacs.mt.gov/ShelteredWorkshops  

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

 


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