7.6 Contracts

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Chapter 7: General Finance Provisions

Related MnSCU Board Policy: 5.14 Procurement and Contracts
Related MnSCU Board Procedure: 5.14.2 Consultant, Professional or Technical Services

Purpose:  To comply with board policy and procedures with regards to contracts and purchasing.

Part 1: Authority

Pursuant to Minnesota Statutes Ch. 136F.581, the Board of Trustees has authority for purchases and contracts consistent with Minnesota Statutes Ch. 471.345, the Uniform Municipal Contracting Law, and other pertinent statutes, as well as the authority to utilize any contracting options available to the commissioner of administration under Minnesota Statutes Chapters 16A, 16B and 16C. It is the policy of the Board of Trustees that contracts, including real property leases, shall not exceed five years, including renewals, unless otherwise provided for by law or approved by the MnSCU System Office.


Subpart A: All encumbrances for goods and services will be issued in advance of ordering goods and services and a fully executed contract for services (non-tangible orders).


Subpart B:  All purchases for goods and services will follow Normandale Community College’s Purchasing Procedure Manual and Threshold Tables to obtain quotes and bids when necessary.


Subpart C: Policies and procedures relating to facilities design and construction contracts are addressed in Board Policy 6.5, Capital Program Planning.

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Part 2: Responsibilities
  Normandale is responsible for procurement of necessary goods and services and the implementation of contracts that maximize the use of financial resources.
  Subpart A:  Procedures for responsible purchasing are defined in the Normandale Community College Purchasing Procedures Manual and will be consistent with MN Statutes Ch. 471.345, the Uniform Municipal Contracting Law, as applicable, and in compliance with other pertinent state and federal laws. 
  Subpart B:  Contracts and purchases (amendments and addendums) that exceed $100,000 require system office approval  from the Vice Chancellor-Chief Financial Officer and must have funds available for payment. 
  Subpart C:  Contracts must be prepared on forms approved by the system office to ensure they contain all state required contract language.   Any deviations or the use of a non-system office form requires the review by the system legal counsel and approval of the vice chancellor-chief financial officer.  System legal counsel includes the MnSCU General Counsel or the Minnesota Attorney General’s Office.
  Subpart D:  Restrictions include Contracts with Law Firms or Lawyers, Contracts for Banking Services and Banking Related Services, Contracts for Audits with a Public Accountant and Employer/Employee Relationships.
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Part 3: Accountability/Reporting

All purchasing and contracts will follow all applicable state and federal laws, Board policy, and Normandale Community College’s purchasing procedures for all purchases and contracts.


Subpart A:  Contracts, including amendments, with values greater than $3,000,000 must be approved in advance by the Board of Trustees.  Contracts include inter-agency and intra-agency agreements, joint powers agreements that do not create a joint power board, MN Department of Administration master contracts, Office of Enterprise Technology master contracts or MnSCU master contracts with values greater than $3,000,000.


Subpart B:  Annual reports on all procurement contracts with values greater than $100,000 will be available on the system’s web site.  Other formats are available upon request.

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  Policy History:
Date of Adoption:  Established prior to 2011
Date of Implementation:
Date and Subject of Revisions:
Next Review Date:  2015-16
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