7.6 Contracts and Purchasing
|Related Minnesota State Board Policy:||5.14 Contracts and Procurement|
|Related Minnesota State 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.
|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: Procedures for responsible purchasing are defined in the Normandale Community College Purchasing and Contracts Manual and Threshold Table and shall 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. Policies and procedures relating to facilities design and construction are addressed in Minnesota State Board policy 6.5 Capital Planning Program.|
|Subpart B. Contract preparation: Contracts must be prepared on forms approved by the system office to ensure they contain all state required contract language. Any deviations or use of a non-system office form requires the review by the Minnesota State Office of General Counsel or the Minnesota Attorney General's Office.|
|Subpart C. Approval Required:
1. Contracts and purchases (including amendments and addendums) that exceed $100,000 must be approved, in advance, by the Vice Chancellor of Finance and Chief Financial Officer and must have funds available for payment.
2. Any purchase, lease agreement, or professional/technical/consulting service contract with values greater than $1,000,000 or contract amendments that would increase the total value of the contract to more than $1,000,000 must be approved, in advance, by the Minnesota State Board.
3. Inter-agency and intra-agency agreements, joint powers agreements, system master contracts and grant agreements (other than federal grants or grants from MN state agencies) with values greater than $3,000,000 must also be approved, in advance, by the Minnesota State Board.
4. Purchasing contracts of any value with a term in excess of five (5) years requires the approval of the Minnesota State Vice Chancellor of Finance and Chief Financial Officer.
|Subpart D. Encumbrances: Funds must by encumbered in advance of ordering goods and services and fully executing contracts for services.|
|Subpart E. Prepayments: MN Statute Ch. 16A.41 Subd1 prohibits the college from making pre-payments (paying in advance). However, the college may prepay for software maintenance contracts, sole soure maintenance contracts, exhibit space, subscription fees for newspapers and magazines, registration fees and Library of Congress services.|
|Subpart F. Restrictions: Contracts with Law Firms or Lawyers, for Banking Services and Banking Related Services, for Audits with Public Accountant and Employer/Employee Relationships cannot be entered into by the College without prior consultation with the system office.|
|Part 3: Accountability|
The Vice President of Finance and Operations, or designee, shall have overall responsibility for complying with all applicable state and federal laws, Board policy, bargaining agreements, system procedures and Normandale Community College’s purchasing procedures for all purchases and contracts.
Date of Adoption: Established prior to 2011
Date of Implementation:
Date and Subject of Revisions: November 2015
Next Review Date: 2018-19