Procurement Policy – Procedure Statement

Last Revised:     March 23, 2021

Definitions

“Amendment” means amending an existing contract’s terms, scope, or period, while keeping the existing contract.

“Renewal” means renewing an existing contract with materially the same terms and scope for a set period.

“Sole source” means a vendor identified as the only existing procurement solution vendor.  i.e.  IT Solutions.

Contracts Administrator

1. Is responsible to ensure the Contracts Requests Forms are in proper order for review and approval.
2. Will group Contract Requests Forms together by the type – Service, Revenue, and Employment (out of camera, and in camera).
3. Will ensure that in camera Employment contracts are grouped to the end of the meeting agenda.

Contracts Committee

4. Will review the Service Contract Request Form for completeness and ensuring the request adheres to the Execution of Contracts Policy and Procurement Policy.
5. Will recommend to the Contracts Approval Committee approval for Contract Requests.
6. Will review and approve on an annual basis (on or before March 31) the list of preferred vendors to be utilized by FNUniv for the following fiscal year.

Contracts Approval Committee

7. Will ensure the Executive of Contracts Policy and Procurement Policy has been adhered to and provide approval for the Contracts Administrator to process a contract.

Procurement of Goods and Services

8. The University’s policy on procurement is based on the following thresholds:

1. Department Heads, Associate Deans and Department Directors, including Director of Finance – up to $5,000 within budget, with the exception of purchases from a preferred vendor, where the approval threshold is allowable up to $10,000 within budget.
   i) At least one verbal submission to be obtained in advance of the P.O. being initiated with a hard copy to follow.
2. Vice Presidents – up to $100,000 within budget.
   i) <$5,000
   (1) At least one verbal submission to be obtained in advance of the P.O. being initiated with a hard copy to follow.
   
   ii) $5,000 to $9,999 (bid)
   (1) A minimum of two verbal submissions must be secured or, if that is not possible, the associated documentation must detail the reason(s) why and the use of a single supplier specifically approved by the President;
   (2) All suppliers participating in the process must be qualified;
   (3) Contracts may be required;
   (4) Purchase Orders and any required Contracts resulting from the process will be stored in the Finance Department as part of the related documentation.
   
   iii) $10,000 to $99,999 (bid)
   (1) A minimum of two formal, written submissions must be secured or, if that is not possible, the associated documentation must detail the reason(s) why and the use of a single supplier specifically approved by the President;
   (2) All suppliers participating in the process must be qualified;
   (3) All suppliers participating in the process must be notified in writing of the results;
   (4) Contracts are required;
   (5) Purchase Orders and Contracts resulting from the process will be stored in the Finance Department as part of the related documentation.
   
   iv) $100,000 and over (RFP)
   (1) A minimum of three formal submissions secured through the completion of a Request For Proposal process must be obtained or, if the minimum number cannot be obtained, the associated documentation must detail the reason(s) why and approved by the Board of Governors;
   (2) All suppliers participating in the process must be qualified;
   (3) All suppliers participating in the process must be notified in writing of the results;
   (4) Purchase Orders and Contracts resulting from the process will be stored in the Finance Department as part of the related documentation. When a department requires an RFP, a request can be made to Finance, and they will assist in issuing the RFP. Finance will work with departments through the RFP process and draft the contract (See Execution of Contracts Procedure Statement) once a vendor is selected.
3. President – up to $200,000 within budget and follows the threshold procedures.

Contract “renewals” or “amendments”

9. Those with a current value under $100,000 are exempt from the bid or tender requirements.
10. Contract “renewals” or “amendments” are also not considered “sole sourced” for a maximum of 4 years after the initial contract has expired.
11. All other policy and procedures apply, including cumulative contract value considerations.

Sole Source

12. Any sole sourced contract must have the following approvals:
a. <$100,000 – approved by the President.
b. >$100,000 – approved by the Board.
13. A written report will be submitted to the Board of Governors on a semi-annual basis for all sole sourced contracts less than $100,000.