Requirements for Vendors
Departments are not authorized to sign vendor-supplied agreements. These agreements are prepared by the vendor, using their wording, and may contain terms that are not advantageous to the University. For all purchases between $5,000 and $25,000*, either a Purchasing Card, Departmental Purchase Order (DPO) or Contracted Services Agreement (CSA) must be used. The DPO and CSA documents contain MSU’s standard terms and conditions. Any revisions to these terms and conditions must be approved in advance by Procurement Services and/or Legal Counsel. Regardless of $ level, any vendor- generated agreement must be reviewed by Procurement Services and/or Legal Counsel before signing.
*Purchases above $25,000 in total contract value must be issued from Procurement Services
(required if it has been more than 12 months since you have provided us with one or if you have any changes)
Please provide a payment address if it differs from the address on the W-9.
Foreign vendors must complete a W-8. Contact Darcy Tickner at [email protected] for more information.
For services provided by an individual at any dollar level, many factors must be weighed to determine whether someone should be paid as an independent contractor or as an employee. Some factors include:
- Are you a current or recent MSU employee?
- Are you working under the supervision and control of a University employee?
- Do you provide similar services for other clients and/or businesses?
- Do you provide your own supplies, equipment, forms, etc. necessary to perform the services?
- Do you have a risk of financial loss from the agreement, or is the University responsible for any cost/time overruns?
- Did the University provide you with training required to complete this work?
- Do you maintain worker’s compensation coverage or can you establish exemption from worker’s compensation coverage under MCA Section 39-71-401?
- There are other facts to consider. Please contact Katie Matzinger, Director of Accounting at 994-7508 or [email protected] to verify status.
Worker’s Compensation or Exemption:
Contractor shall comply with the provisions of the Montana Workers' Compensation Act while performing work for the State of Montana in accordance with 39-71-401, 39-71-405, and 39-71-417, MCA. Proof of compliance must be in the form of workers' compensation insurance, an independent contractor's exemption, or documentation of corporate officer status. Neither Contractor nor its employees are University employees. This insurance/exemption must be valid for the entire contract term and any renewal. Upon expiration, a renewal document must be sent to MSU Procurement Services, P.O. Box 172600, Bozeman, MT 59717-2600.
If the work is to be performed outside of Montana, we will need the Worker’s Compensation or exemption for the state the work is performed.
Agreements and contracts which the university enters into generally require proof of insurance.
The following insurance requirements apply to most contracts:
- Commercial General Liability. Contractor shall purchase and maintain occurrence coverage with combined single limits for bodily injury, personal injury, and property damage of $1,000,000 per occurrence and $2,000,000 aggregate per year to cover such claims as may be caused by any act, omission, or negligence of Contractor or its officers, agents, representatives, assigns, or subcontractors.
The University, its officers, officials, employees, and volunteers are to be covered and listed as additional insureds via the certificate of insurance under ‘description of operations’and by endorsement to the policy for liability arising out of activities performed by or on behalf of Contractor, including the insured's general supervision of Contractor, products, and completed operations, and the premises owned, leased, occupied, or used. Reference should be made to same on the COI, but the actual separate endorsement must be provided.
- Automobile Liability. Contractor shall purchase and maintain coverage with split limits of $500,000 per person (personal injury), $1,000,000 per accident occurrence (personal injury), and $100,000 per accident occurrence (property damage), OR combined single limits of $1,000,000 per occurrence to cover such claims as may be caused by any act, omission, or negligence of Contractor or its officers, agents, representatives, assigns, or subcontractors.
The University, its officers, officials, employees, and volunteers are to be covered and listed as additional insureds via the certificate of insurance under ‘description of operations’ and by endorsement to the policy for automobiles leased, owned, or borrowed by Contractor. Reference should be made to same on the COI, but the actual separate endorsement must be provided.
- Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be declared to and approved by the University. At the request of the University either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the University, its officers, officials, employees, or volunteers; or (2) at the expense of Contractor, Contractor shall procure a bond guaranteeing payment of losses and related investigations, claims administration, and defense expenses.
- Certificate of Insurance/Endorsements. A certificate of insurance from an insurer with a Best's rating of no less than A- indicating compliance with the required coverages, has been received by MSU Procurement Services, P.O. Box 172600, Bozeman, MT 59717-2600. Contractor must notify the University immediately of any material change in insurance coverage, such as changes in limits, coverages, change in status of policy, etc. The University reserves the right to require complete copies of insurance policies at all times.
These are the most common limits requested by the university. Other lines of insurance coverage may be required for certain types of exposure, and limits of liability may vary depending on the type of agreement or contract. The university reserves the right to require higher limits from a contractor or vendor for a particular project or event based on the scope of work and associated risks to the university, or anticipated number of attendees.
All agreements/contracts shall provide for thirty (30) days’ written notice to the university prior to cancellation or material change of any insurance referred to in the provided certificate
All quotes must be dated and signed by authorized representative of company. Prices must include shipping FOB destination.
Montana State University is considered a political subdivision of the State of Montana and therefore tax exempt under IRC Section 115. Our federal taxpayer identification # is 81-6010045. To request tax exemption letter, please contact Procurement Services at 994-3211 or [email protected].
Payments are made generally in less than 30 days on most invoices. Other factors may come into play that may delay payment. These may include receipt of incorrect items, incorrect invoices, damage in shipment, invoices sent to wrong address, etc. MSU tries to resolve these issues with the vendor in an expedient manner so as not to delay payment unreasonably. To check payment status please contact University Business Services at 994-3653 or [email protected]
To establish direct deposit of invoice payments, complete form: Vendor ACH Form and fax or mail to Accounts Payable
MSU Accounts Payable,
102 Montana Hall,
Bozeman, MT 59717
FAX to (406) 994-1954.
The first payment made to you after the initial ACH setup will be a physical check to verify the accuracy of your account information.