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514 - Purchasing

Responsible Office: Business Office
Responsible Officer: Vice President of Finance and Administration
Reference: Minnesota State Policy 5.14.5, Minnesota State Statutes 16A.15 Subd3 and 16A.41. Subd1

PART 1.  POLICY

The college is required to follow the purchasing requirements as defined in above legal references. Purchasing refers to any agreement entered into by the college for the purchase of services, supplies, materials, equipment or the rental thereof.

All employees must conform to the requirements governing the purchase of goods and services as outlined in the Purchasing Procedures below. Funds must be encumbered prior to making an obligation.  In the event of an emergency, the President or designee has the right to alter or waive any portion of this policy.

PART 2.  PROCEDURE

Purchasing must be in compliance with Board Policy 5.14, System Procedure 5.14.5, and all other applicable statures, laws, rules, regulations and policies. Non-compliance may result in purchasing authority being modified or rescinded.

Purchases relating to computers, including equipment, software or hardware; require additional approval from the Chief Information Officer.

All funds must be encumbered by the Business Office before the purchase of goods or services. Requests to encumber funds are processed in Marketplace.

Funds not encumbered prior to making a purchase require a 16A form (H:\FORMS\Business Office Forms\Purchasing forms\MS16A Fillable Form.pdf). The employee must complete the 16A form and forward to the Vice President of Finance and Administration for signature.

Prepayments

Prepayments are only for registration fees, conferences, subscriptions, memberships, software and software maintenance services. Follow the procedures for purchasing. Payment will be processed after funds are encumbered and required documentation is turned in to the Business Office.

Price quotes:

All quotes must include the following information:

  • Vendor name and address
  • Date of quote
  • Number of days the quote is valid (i.e. 30 days, 60 days, etc.)
  • Terms, shipping and delivery time
  • Name of vendor’s authorized representative

Sealed Bids:

All bid requests must be approved by the Vice President of Finance and Administration before advertising the bid notice.

All bids must have specifications of items to be purchased to ensure fair and accurate comparison of bids.

Once approved, the Business Office will prepare and arrange a public notice requesting sealed bids. The notice must appear for a minimum of 14 days in the State Register.

All funds must be encumbered by the Business Office before a bid can be awarded to a vendor.

Purchases of $25,000.00 or less

  • Two verbal quotes are recommended. Quotes are highly recommended to assure competitive pricing.
  • If applicable, a quote from a targeted vendor funds are required to be encumbered.
  • Purchase order will be issued.
  • Business office will e-mail, mail or fax a purchase order to vendor.
  • Depending on the type of purchase additional paperwork may be needed (i.e. certificate of insurance, contracts, special expense forms, In state/out state travel request).
  • Contact Business Office for assistance.

Purchases over $25,000.00 to $50,000.00

  • Two or more written quotes are required. Quotes should be precise and have detailed specifications.
  • If applicable obtain a quote from a targeted vendor.
  • Funds are required to be encumbered.
  • A purchase order will be issued.
  • Business office will e-mail, mail or fax a purchase order to vendor.
  • Depending on the type of purchase additional paperwork may be needed (i.e. certificate of insurance, contracts, special expense forms, In state/out state travel request).
  • Contact Business Office for assistance.

Purchases over $50,000.00

  • Sealed Bids are required and awarded to vendor
  • Funds are required to be encumbered.
  • A purchase order will be issued.
  • Business office will e-mail, mail or fax a purchase order to vendor.
  • Depending on the type of purchase additional paperwork may be needed (i.e. certificate of insurance, contracts, special expense forms, in-state/out-state travel request).
  • Contact Business Office for assistance.

Purchases over $100,000.00

  • All purchases require Marketplace approval of the Vice Chancellor-Chief Financial Officer.
  • The Business Office must submit a memorandum as a purchase order attachment in Marketplace to the Vice Chancellor-Chief Financial Officer explaining the need for the purchase, purchase amount, which available funds are paying for the purchase. Resale is not included in this procedure.
  • Funds are required to be encumbered
  • A purchase order will be issued.
  • Business office will e-mail, mail or fax a purchase order to vendor.
  • Contact Business Office for assistance.

Contracts

Contracts must be prepared in Marketplace on forms approved by the System Office. This is to assure all state-required contract language is in place.

Modifications to state contracts must be approved by the System Legal Counsel. Contracts are found in the Marketplace contract module. Contact Business Office for assistance

Special Expenses

Special expenses are extraordinary expenses incurred in connection with work-related responsibilities or official functions not generally supported with public funds of Minnesota State or assigned duties of system employees, which are not reimbursable through the regular expense regulations. See  https://minnstate.edu/board/procedure/520p1.htmlThe form is located in H:\FORMS\Business Office Forms\Purchasing forms\Special Expense-Travel Form.docx 

Contact Business Office for assistance.

 

Approved: November 29, 1999
Reviewed: December 28, 2010; October 31, 2013; August 2020; November 20, 2020; May 10, 2023
Revised: February 15, 2000; February 28, 2002; June 30, 2004; October 31, 2013; August 2020; November 20, 2020; May 10, 2023