5.14 Procurement and Contracts

5.14.1 Purchasing Guidelines

A purchase for any type of goods or services that is estimated to be $5,000 or more, but less than $25,000 is required to have 2 bids from appropriate vendors.

If a purchase is estimated to be $25,000 or more, sealed bids are required. These are obtained by advertising in a public newspaper or the state register. Contact the Business Office for instructions.

Purchases of goods in excess of $100,000 require system office approval, which the Business Office will help coordinate.

A purchase for consulting or professional and technical services follows the same bid requirements but also needs to have a written contract in place before any work is performed. A contract is required when we request for any type of service that is performed, even when the vendor supplies the materials. Contracts for professional and technical services can be created for up to $50,000 without system office approval. After the contract is created, a requisition must be filled out to process a purchase order so the funds are encumbered. Both of these procedures need to be completed before any work can begin by the consultant. When work is completed, the consultant needs to submit an invoice in order to be paid for their work.

If an item can only be purchased from one vendor, it must be noted in writing that it is a sole source vendor and the vendor must be in agreement with that. Documentation supporting this from the vendor must be attached to the requisition when submitted.

Funds must be encumbered prior to making a purchase, which means a purchase order number must be given to the vendor at the time the order is placed. An expenditure or obligation incurred prior to encumbering funds is illegal. Any employee authorizing such a purchase is liable to the state for the amount of the purchase. Prepayments are prohibited except for maintenance contracts, exhibit space, and subscription fees for magazines and newspapers.

Employees purchasing supply items with their personal funds is discouraged, and such purchases in excess of $25 will be questioned. If an employee does purchase an item with their own funds, they will be reimbursed only for the cost of the item, not the sales tax. The college is exempt from paying sales tax. Any reimbursement to an employee needs to be done through the payroll system. Fill out a Business Expense form for reimbursement.

Delegation of authority has been given to leadership council members in regard to executing any contracts. Please contact your respective leadership council member for approval and signatures on these types of contracts.

Unauthorized Purchases

If an individual takes it upon him/herself to commit Alexandria Technical & Community College to any type of purchase obligation, without prior encumbering the funds by preparing a purchase order, he/she may be held personally responsible for that obligation.

If funds are not encumbered prior to making a purchase, a 16A.15 Form must be completed. This form must be completed stating the reason why the obligation was incurred before the funds were encumbered and what corrective action will be taken to prevent this problem in the future. A 16A.15 form is available through the Business Office.

Approved by: ATCC Leadership Council
Effective Date: 7/10/12
Last Date Revised: 7/9/12